Illinois 2023-2024 Regular Session

Illinois House Bill HB4873 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 HB4873 Introduced , by Rep. Stephanie A. Kifowit SYNOPSIS AS INTRODUCED: See Index Amends the Illinois Pension Code. Makes changes to Tier 2 benefits for members or participants under the 5 State-funded retirement systems and the Chicago Teachers Pension Fund, including changes to automatic annual increases, age and service requirements for retirement, and limits on the amount of salary for annuity purposes. Establishes an accelerated pension benefit payment option for the General Assembly, Downstate Police, Downstate Firefighter, Chicago Teachers, and Judges Articles of the Code. Establishes a deferred retirement option plan for certain members who are otherwise eligible to retire under the Illinois Municipal Retirement Fund (IMRF), State Employees, State Universities, Downstate Teachers, or Chicago Teachers Article of the Code under which a participant may continue in active service for up to 5 years while having his or her retirement pension paid into a special account. Requires the State Treasurer to administer the deferred retirement option plan for the State Employees, State Universities, Downstate Teachers, and Chicago Teachers Articles. Amends the General Obligation Bond Act. Provides that each fiscal year after certain State pension funding bonds and income tax proceed bonds are retired, the Comptroller shall order and the State Treasurer shall transfer $500,000,000 from the General Revenue Fund to the Pension Unfunded Liability Reduction Fund each fiscal year, which shall be used for making additional contributions to the 5 State-funded retirement systems. Restricts participation in the General Assembly Retirement System and Judges Retirement System to persons who become participants before January 13, 2027. Provides for participation in the State Employees Retirement System by judges and members of the General Assembly. Authorizes the transfer of service credit from those Systems to the State Employees Retirement System. Authorizes investigators for the Department of the Lottery and Tier 2 security employees of the Department of Corrections and security employees of the Department of Human Services to establish eligible creditable service under the alternative annuity provisions of the State Employees Article. Provides that the Retirement Systems Reciprocal Act (Article 20 of the Code) is adopted and made a part of the Downstate Police and Downstate Firefighter Articles. Makes other changes. Effective July 1, 2025. LRB103 35886 RPS 65971 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB4873 Introduced , by Rep. Stephanie A. Kifowit SYNOPSIS AS INTRODUCED: See Index See Index Amends the Illinois Pension Code. Makes changes to Tier 2 benefits for members or participants under the 5 State-funded retirement systems and the Chicago Teachers Pension Fund, including changes to automatic annual increases, age and service requirements for retirement, and limits on the amount of salary for annuity purposes. Establishes an accelerated pension benefit payment option for the General Assembly, Downstate Police, Downstate Firefighter, Chicago Teachers, and Judges Articles of the Code. Establishes a deferred retirement option plan for certain members who are otherwise eligible to retire under the Illinois Municipal Retirement Fund (IMRF), State Employees, State Universities, Downstate Teachers, or Chicago Teachers Article of the Code under which a participant may continue in active service for up to 5 years while having his or her retirement pension paid into a special account. Requires the State Treasurer to administer the deferred retirement option plan for the State Employees, State Universities, Downstate Teachers, and Chicago Teachers Articles. Amends the General Obligation Bond Act. Provides that each fiscal year after certain State pension funding bonds and income tax proceed bonds are retired, the Comptroller shall order and the State Treasurer shall transfer $500,000,000 from the General Revenue Fund to the Pension Unfunded Liability Reduction Fund each fiscal year, which shall be used for making additional contributions to the 5 State-funded retirement systems. Restricts participation in the General Assembly Retirement System and Judges Retirement System to persons who become participants before January 13, 2027. Provides for participation in the State Employees Retirement System by judges and members of the General Assembly. Authorizes the transfer of service credit from those Systems to the State Employees Retirement System. Authorizes investigators for the Department of the Lottery and Tier 2 security employees of the Department of Corrections and security employees of the Department of Human Services to establish eligible creditable service under the alternative annuity provisions of the State Employees Article. Provides that the Retirement Systems Reciprocal Act (Article 20 of the Code) is adopted and made a part of the Downstate Police and Downstate Firefighter Articles. Makes other changes. Effective July 1, 2025. LRB103 35886 RPS 65971 b LRB103 35886 RPS 65971 b A BILL FOR
2	2	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB4873 Introduced , by Rep. Stephanie A. Kifowit SYNOPSIS AS INTRODUCED:
3	3	See Index See Index
4	4	See Index
5	5	Amends the Illinois Pension Code. Makes changes to Tier 2 benefits for members or participants under the 5 State-funded retirement systems and the Chicago Teachers Pension Fund, including changes to automatic annual increases, age and service requirements for retirement, and limits on the amount of salary for annuity purposes. Establishes an accelerated pension benefit payment option for the General Assembly, Downstate Police, Downstate Firefighter, Chicago Teachers, and Judges Articles of the Code. Establishes a deferred retirement option plan for certain members who are otherwise eligible to retire under the Illinois Municipal Retirement Fund (IMRF), State Employees, State Universities, Downstate Teachers, or Chicago Teachers Article of the Code under which a participant may continue in active service for up to 5 years while having his or her retirement pension paid into a special account. Requires the State Treasurer to administer the deferred retirement option plan for the State Employees, State Universities, Downstate Teachers, and Chicago Teachers Articles. Amends the General Obligation Bond Act. Provides that each fiscal year after certain State pension funding bonds and income tax proceed bonds are retired, the Comptroller shall order and the State Treasurer shall transfer $500,000,000 from the General Revenue Fund to the Pension Unfunded Liability Reduction Fund each fiscal year, which shall be used for making additional contributions to the 5 State-funded retirement systems. Restricts participation in the General Assembly Retirement System and Judges Retirement System to persons who become participants before January 13, 2027. Provides for participation in the State Employees Retirement System by judges and members of the General Assembly. Authorizes the transfer of service credit from those Systems to the State Employees Retirement System. Authorizes investigators for the Department of the Lottery and Tier 2 security employees of the Department of Corrections and security employees of the Department of Human Services to establish eligible creditable service under the alternative annuity provisions of the State Employees Article. Provides that the Retirement Systems Reciprocal Act (Article 20 of the Code) is adopted and made a part of the Downstate Police and Downstate Firefighter Articles. Makes other changes. Effective July 1, 2025.
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11	11	1 AN ACT concerning public employee benefits.
12	12	2 Be it enacted by the People of the State of Illinois,
13	13	3 represented in the General Assembly:
14	14	4 Article 1.
15	15	5 Section 1-5. The Illinois Pension Code is amended by
16	16	6 changing Sections 1-160, 2-108.1, 2-119.1, 14-103.10, 15-111,
17	17	7 18-125, and 18-128.01 as follows:
18	18	8 (40 ILCS 5/1-160)
19	19	9 (Text of Section from P.A. 102-719)
20	20	10 Sec. 1-160. Provisions applicable to new hires.
21	21	11 (a) The provisions of this Section apply to a person who,
22	22	12 on or after January 1, 2011, first becomes a member or a
23	23	13 participant under any reciprocal retirement system or pension
24	24	14 fund established under this Code, other than a retirement
25	25	15 system or pension fund established under Article 2, 3, 4, 5, 6,
26	26	16 7, 15, or 18 of this Code, notwithstanding any other provision
27	27	17 of this Code to the contrary, but do not apply to any
28	28	18 self-managed plan established under this Code or to any
29	29	19 participant of the retirement plan established under Section
30	30	20 22-101; except that this Section applies to a person who
31	31	21 elected to establish alternative credits by electing in
32	32	22 writing after January 1, 2011, but before August 8, 2011,
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36	36	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB4873 Introduced , by Rep. Stephanie A. Kifowit SYNOPSIS AS INTRODUCED:
37	37	See Index See Index
38	38	See Index
39	39	Amends the Illinois Pension Code. Makes changes to Tier 2 benefits for members or participants under the 5 State-funded retirement systems and the Chicago Teachers Pension Fund, including changes to automatic annual increases, age and service requirements for retirement, and limits on the amount of salary for annuity purposes. Establishes an accelerated pension benefit payment option for the General Assembly, Downstate Police, Downstate Firefighter, Chicago Teachers, and Judges Articles of the Code. Establishes a deferred retirement option plan for certain members who are otherwise eligible to retire under the Illinois Municipal Retirement Fund (IMRF), State Employees, State Universities, Downstate Teachers, or Chicago Teachers Article of the Code under which a participant may continue in active service for up to 5 years while having his or her retirement pension paid into a special account. Requires the State Treasurer to administer the deferred retirement option plan for the State Employees, State Universities, Downstate Teachers, and Chicago Teachers Articles. Amends the General Obligation Bond Act. Provides that each fiscal year after certain State pension funding bonds and income tax proceed bonds are retired, the Comptroller shall order and the State Treasurer shall transfer $500,000,000 from the General Revenue Fund to the Pension Unfunded Liability Reduction Fund each fiscal year, which shall be used for making additional contributions to the 5 State-funded retirement systems. Restricts participation in the General Assembly Retirement System and Judges Retirement System to persons who become participants before January 13, 2027. Provides for participation in the State Employees Retirement System by judges and members of the General Assembly. Authorizes the transfer of service credit from those Systems to the State Employees Retirement System. Authorizes investigators for the Department of the Lottery and Tier 2 security employees of the Department of Corrections and security employees of the Department of Human Services to establish eligible creditable service under the alternative annuity provisions of the State Employees Article. Provides that the Retirement Systems Reciprocal Act (Article 20 of the Code) is adopted and made a part of the Downstate Police and Downstate Firefighter Articles. Makes other changes. Effective July 1, 2025.
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67	67	1 under Section 7-145.1 of this Code. Notwithstanding anything
68	68	2 to the contrary in this Section, for purposes of this Section,
69	69	3 a person who is a Tier 1 regular employee as defined in Section
70	70	4 7-109.4 of this Code or who participated in a retirement
71	71	5 system under Article 15 prior to January 1, 2011 shall be
72	72	6 deemed a person who first became a member or participant prior
73	73	7 to January 1, 2011 under any retirement system or pension fund
74	74	8 subject to this Section. The changes made to this Section by
75	75	9 Public Act 98-596 are a clarification of existing law and are
76	76	10 intended to be retroactive to January 1, 2011 (the effective
77	77	11 date of Public Act 96-889), notwithstanding the provisions of
78	78	12 Section 1-103.1 of this Code.
79	79	13 This Section does not apply to a person who first becomes a
80	80	14 noncovered employee under Article 14 on or after the
81	81	15 implementation date of the plan created under Section 1-161
82	82	16 for that Article, unless that person elects under subsection
83	83	17 (b) of Section 1-161 to instead receive the benefits provided
84	84	18 under this Section and the applicable provisions of that
85	85	19 Article.
86	86	20 This Section does not apply to a person who first becomes a
87	87	21 member or participant under Article 16 on or after the
88	88	22 implementation date of the plan created under Section 1-161
89	89	23 for that Article, unless that person elects under subsection
90	90	24 (b) of Section 1-161 to instead receive the benefits provided
91	91	25 under this Section and the applicable provisions of that
92	92	26 Article.
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103	103	1 This Section does not apply to a person who elects under
104	104	2 subsection (c-5) of Section 1-161 to receive the benefits
105	105	3 under Section 1-161.
106	106	4 This Section does not apply to a person who first becomes a
107	107	5 member or participant of an affected pension fund on or after 6
108	108	6 months after the resolution or ordinance date, as defined in
109	109	7 Section 1-162, unless that person elects under subsection (c)
110	110	8 of Section 1-162 to receive the benefits provided under this
111	111	9 Section and the applicable provisions of the Article under
112	112	10 which he or she is a member or participant.
113	113	11 (b) "Final average salary" means, except as otherwise
114	114	12 provided in this subsection, the average monthly (or annual)
115	115	13 salary obtained by dividing the total salary or earnings
116	116	14 calculated under the Article applicable to the member or
117	117	15 participant during the 96 consecutive months (or 8 consecutive
118	118	16 years) of service within the last 120 months (or 10 years) of
119	119	17 service in which the total salary or earnings calculated under
120	120	18 the applicable Article was the highest by the number of months
121	121	19 (or years) of service in that period. For the purposes of a
122	122	20 person who first becomes a member or participant of any
123	123	21 retirement system or pension fund to which this Section
124	124	22 applies on or after January 1, 2011, in this Code, "final
125	125	23 average salary" shall be substituted for the following:
126	126	24 (1) (Blank).
127	127	25 (2) In Articles 8, 9, 10, 11, and 12, "highest average
128	128	26 annual salary for any 4 consecutive years within the last
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139	139	1 10 years of service immediately preceding the date of
140	140	2 withdrawal".
141	141	3 (3) In Article 13, "average final salary".
142	142	4 (4) In Article 14, "final average compensation".
143	143	5 (5) In Article 17, "average salary".
144	144	6 (6) In Section 22-207, "wages or salary received by
145	145	7 him at the date of retirement or discharge".
146	146	8 A member of the Teachers' Retirement System of the State
147	147	9 of Illinois who retires on or after June 1, 2021 and for whom
148	148	10 the 2020-2021 school year is used in the calculation of the
149	149	11 member's final average salary shall use the higher of the
150	150	12 following for the purpose of determining the member's final
151	151	13 average salary:
152	152	14 (A) the amount otherwise calculated under the first
153	153	15 paragraph of this subsection; or
154	154	16 (B) an amount calculated by the Teachers' Retirement
155	155	17 System of the State of Illinois using the average of the
156	156	18 monthly (or annual) salary obtained by dividing the total
157	157	19 salary or earnings calculated under Article 16 applicable
158	158	20 to the member or participant during the 96 months (or 8
159	159	21 years) of service within the last 120 months (or 10 years)
160	160	22 of service in which the total salary or earnings
161	161	23 calculated under the Article was the highest by the number
162	162	24 of months (or years) of service in that period.
163	163	25 (b-5) Except as provided in subsections (b-15) and (b-20)
164	164	26 Beginning on January 1, 2011, for all purposes under this Code
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175	175	1 (including without limitation the calculation of benefits and
176	176	2 employee contributions), the annual earnings, salary, or wages
177	177	3 (based on the plan year) of a member or participant to whom
178	178	4 this Section applies shall not exceed $106,800; however, that
179	179	5 amount shall annually thereafter be increased by the lesser of
180	180	6 (i) 3% of that amount, including all previous adjustments, or
181	181	7 (ii) one-half the annual unadjusted percentage increase (but
182	182	8 not less than zero) in the consumer price index-u for the 12
183	183	9 months ending with the September preceding each November 1,
184	184	10 including all previous adjustments.
185	185	11 For the purposes of this Section, "consumer price index-u"
186	186	12 means the index published by the Bureau of Labor Statistics of
187	187	13 the United States Department of Labor that measures the
188	188	14 average change in prices of goods and services purchased by
189	189	15 all urban consumers, United States city average, all items,
190	190	16 1982-84 = 100. The new amount resulting from each annual
191	191	17 adjustment shall be determined by the Public Pension Division
192	192	18 of the Department of Insurance and made available to the
193	193	19 boards of the retirement systems and pension funds by November
194	194	20 1 of each year.
195	195	21 (b-10) Beginning on January 1, 2024, for all purposes
196	196	22 under this Code (including, without limitation, the
197	197	23 calculation of benefits and employee contributions), the
198	198	24 annual earnings, salary, or wages (based on the plan year) of a
199	199	25 member or participant under Article 9 to whom this Section
200	200	26 applies shall include an annual earnings, salary, or wage cap
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211	211	1 that tracks the Social Security wage base. Maximum annual
212	212	2 earnings, wages, or salary shall be the annual contribution
213	213	3 and benefit base established for the applicable year by the
214	214	4 Commissioner of the Social Security Administration under the
215	215	5 federal Social Security Act.
216	216	6 However, in no event shall the annual earnings, salary, or
217	217	7 wages for the purposes of this Article and Article 9 exceed any
218	218	8 limitation imposed on annual earnings, salary, or wages under
219	219	9 Section 1-117. Under no circumstances shall the maximum amount
220	220	10 of annual earnings, salary, or wages be greater than the
221	221	11 amount set forth in this subsection (b-10) as a result of
222	222	12 reciprocal service or any provisions regarding reciprocal
223	223	13 services, nor shall the Fund under Article 9 be required to pay
224	224	14 any refund as a result of the application of this maximum
225	225	15 annual earnings, salary, and wage cap.
226	226	16 Nothing in this subsection (b-10) shall cause or otherwise
227	227	17 result in any retroactive adjustment of any employee
228	228	18 contributions. Nothing in this subsection (b-10) shall cause
229	229	19 or otherwise result in any retroactive adjustment of
230	230	20 disability or other payments made between January 1, 2011 and
231	231	21 January 1, 2024.
232	232	22 (b-15) Beginning January 1, 2026 and until January 1,
233	233	23 2029, for all purposes under this Code (including, without
234	234	24 limitation, the calculation of benefits and employee
235	235	25 contributions), the annual earnings, salary, or wages (based
236	236	26 on the plan year) of a member or participant under Article 14,
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247	247	1 16, or 17 to whom this Section applies shall not exceed the
248	248	2 amount determined under subsection (b-5) plus the earnings
249	249	3 limitation adjustment for that year.
250	250	4 In this subsection, "earnings limitation adjustment" means
251	251	5 the product that results from multiplying (i) the difference
252	252	6 between the federal Social Security wage base for the coming
253	253	7 calendar year and the amount calculated under subsection (b-5)
254	254	8 for that calendar year by (ii) the smoothing factor for that
255	255	9 calendar year. The earnings limitation adjustment shall be
256	256	10 determined by the Public Pension Division of the Department of
257	257	11 Insurance and made available to the boards of the retirement
258	258	12 systems and pension funds by December 1 of each year. If the
259	259	13 difference between the federal Social Security wage base for
260	260	14 the coming calendar year and the amount calculated under
261	261	15 subsection (b-5) for that calendar year is zero or less than
262	262	16 zero, the earnings limitation adjustment shall be zero.
263	263	17 In this subsection, "smoothing factor" means:
264	264	18 (1) for calendar year 2026, 25%;
265	265	19 (2) for calendar year 2027, 50%; and
266	266	20 (3) for calendar year 2028, 75%.
267	267	21 In this subsection and subsection (b-20), "Social Security
268	268	22 wage base" means the contribution and benefit base calculated
269	269	23 for the calendar year in question by the Commissioner of
270	270	24 Social Security under Section 230 of the federal Social
271	271	25 Security Act (42 U.S.C. 430).
272	272	26 (b-20) Beginning January 1, 2029, for all purposes under
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283	283	1 this Code (including, without limitation, the calculation of
284	284	2 benefits and employee contributions), the annual earnings,
285	285	3 salary, or wages (based on the plan year) of a member or
286	286	4 participant under Article 14, 16, or 17 to whom this Section
287	287	5 applies shall not exceed the federal Social Security wage base
288	288	6 then in effect.
289	289	7 (c) A member or participant is entitled to a retirement
290	290	8 annuity upon written application if he or she has attained age
291	291	9 67 (age 65, with respect to service under Article 12 that is
292	292	10 subject to this Section, for a member or participant under
293	293	11 Article 12 who first becomes a member or participant under
294	294	12 Article 12 on or after January 1, 2022 or who makes the
295	295	13 election under item (i) of subsection (d-15) of this Section)
296	296	14 and has at least 10 years of service credit and is otherwise
297	297	15 eligible under the requirements of the applicable Article.
298	298	16 A member or participant who has attained age 62 (age 60,
299	299	17 with respect to service under Article 12 that is subject to
300	300	18 this Section, for a member or participant under Article 12 who
301	301	19 first becomes a member or participant under Article 12 on or
302	302	20 after January 1, 2022 or who makes the election under item (i)
303	303	21 of subsection (d-15) of this Section) and has at least 10 years
304	304	22 of service credit and is otherwise eligible under the
305	305	23 requirements of the applicable Article may elect to receive
306	306	24 the lower retirement annuity provided in subsection (d) of
307	307	25 this Section.
308	308	26 (c-5) A person who first becomes a member or a participant
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319	319	1 subject to this Section on or after July 6, 2017 (the effective
320	320	2 date of Public Act 100-23), notwithstanding any other
321	321	3 provision of this Code to the contrary, is entitled to a
322	322	4 retirement annuity under Article 8 or Article 11 upon written
323	323	5 application if he or she has attained age 65 and has at least
324	324	6 10 years of service credit and is otherwise eligible under the
325	325	7 requirements of Article 8 or Article 11 of this Code,
326	326	8 whichever is applicable.
327	327	9 (d) The retirement annuity of a member or participant who
328	328	10 is retiring after attaining age 62 (age 60, with respect to
329	329	11 service under Article 12 that is subject to this Section, for a
330	330	12 member or participant under Article 12 who first becomes a
331	331	13 member or participant under Article 12 on or after January 1,
332	332	14 2022 or who makes the election under item (i) of subsection
333	333	15 (d-15) of this Section) with at least 10 years of service
334	334	16 credit shall be reduced by one-half of 1% for each full month
335	335	17 that the member's age is under age 67 (age 65, with respect to
336	336	18 service under Article 12 that is subject to this Section, for a
337	337	19 member or participant under Article 12 who first becomes a
338	338	20 member or participant under Article 12 on or after January 1,
339	339	21 2022 or who makes the election under item (i) of subsection
340	340	22 (d-15) of this Section).
341	341	23 (d-5) The retirement annuity payable under Article 8 or
342	342	24 Article 11 to an eligible person subject to subsection (c-5)
343	343	25 of this Section who is retiring at age 60 with at least 10
344	344	26 years of service credit shall be reduced by one-half of 1% for
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355	355	1 each full month that the member's age is under age 65.
356	356	2 (d-10) Each person who first became a member or
357	357	3 participant under Article 8 or Article 11 of this Code on or
358	358	4 after January 1, 2011 and prior to July 6, 2017 (the effective
359	359	5 date of Public Act 100-23) shall make an irrevocable election
360	360	6 either:
361	361	7 (i) to be eligible for the reduced retirement age
362	362	8 provided in subsections (c-5) and (d-5) of this Section,
363	363	9 the eligibility for which is conditioned upon the member
364	364	10 or participant agreeing to the increases in employee
365	365	11 contributions for age and service annuities provided in
366	366	12 subsection (a-5) of Section 8-174 of this Code (for
367	367	13 service under Article 8) or subsection (a-5) of Section
368	368	14 11-170 of this Code (for service under Article 11); or
369	369	15 (ii) to not agree to item (i) of this subsection
370	370	16 (d-10), in which case the member or participant shall
371	371	17 continue to be subject to the retirement age provisions in
372	372	18 subsections (c) and (d) of this Section and the employee
373	373	19 contributions for age and service annuity as provided in
374	374	20 subsection (a) of Section 8-174 of this Code (for service
375	375	21 under Article 8) or subsection (a) of Section 11-170 of
376	376	22 this Code (for service under Article 11).
377	377	23 The election provided for in this subsection shall be made
378	378	24 between October 1, 2017 and November 15, 2017. A person
379	379	25 subject to this subsection who makes the required election
380	380	26 shall remain bound by that election. A person subject to this
381	381
382	382
383	383
384	384
385	385
386	386	HB4873 - 10 - LRB103 35886 RPS 65971 b
387	387
388	388
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390	390	HB4873 - 11 - LRB103 35886 RPS 65971 b
391	391	1 subsection who fails for any reason to make the required
392	392	2 election within the time specified in this subsection shall be
393	393	3 deemed to have made the election under item (ii).
394	394	4 (d-15) Each person who first becomes a member or
395	395	5 participant under Article 12 on or after January 1, 2011 and
396	396	6 prior to January 1, 2022 shall make an irrevocable election
397	397	7 either:
398	398	8 (i) to be eligible for the reduced retirement age
399	399	9 specified in subsections (c) and (d) of this Section, the
400	400	10 eligibility for which is conditioned upon the member or
401	401	11 participant agreeing to the increase in employee
402	402	12 contributions for service annuities specified in
403	403	13 subsection (b) of Section 12-150; or
404	404	14 (ii) to not agree to item (i) of this subsection
405	405	15 (d-15), in which case the member or participant shall not
406	406	16 be eligible for the reduced retirement age specified in
407	407	17 subsections (c) and (d) of this Section and shall not be
408	408	18 subject to the increase in employee contributions for
409	409	19 service annuities specified in subsection (b) of Section
410	410	20 12-150.
411	411	21 The election provided for in this subsection shall be made
412	412	22 between January 1, 2022 and April 1, 2022. A person subject to
413	413	23 this subsection who makes the required election shall remain
414	414	24 bound by that election. A person subject to this subsection
415	415	25 who fails for any reason to make the required election within
416	416	26 the time specified in this subsection shall be deemed to have
417	417
418	418
419	419
420	420
421	421
422	422	HB4873 - 11 - LRB103 35886 RPS 65971 b
423	423
424	424
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426	426	HB4873 - 12 - LRB103 35886 RPS 65971 b
427	427	1 made the election under item (ii).
428	428	2 (e) Any retirement annuity or supplemental annuity shall
429	429	3 be subject to annual increases on the January 1 occurring
430	430	4 either on or after the attainment of age 67 (age 65, with
431	431	5 respect to service under Article 12 that is subject to this
432	432	6 Section, for a member or participant under Article 12 who
433	433	7 first becomes a member or participant under Article 12 on or
434	434	8 after January 1, 2022 or who makes the election under item (i)
435	435	9 of subsection (d-15); and beginning on July 6, 2017 (the
436	436	10 effective date of Public Act 100-23), age 65 with respect to
437	437	11 service under Article 8 or Article 11 for eligible persons
438	438	12 who: (i) are subject to subsection (c-5) of this Section; or
439	439	13 (ii) made the election under item (i) of subsection (d-10) of
440	440	14 this Section) or the first anniversary of the annuity start
441	441	15 date, whichever is later. Each annual increase shall be
442	442	16 calculated at 3% or one-half the annual unadjusted percentage
443	443	17 increase (but not less than zero) in the consumer price
444	444	18 index-u for the 12 months ending with the September preceding
445	445	19 each November 1, whichever is less, of the originally granted
446	446	20 retirement annuity. If the annual unadjusted percentage change
447	447	21 in the consumer price index-u for the 12 months ending with the
448	448	22 September preceding each November 1 is zero or there is a
449	449	23 decrease, then the annuity shall not be increased.
450	450	24 For the purposes of Section 1-103.1 of this Code, the
451	451	25 changes made to this Section by Public Act 102-263 are
452	452	26 applicable without regard to whether the employee was in
453	453
454	454
455	455
456	456
457	457
458	458	HB4873 - 12 - LRB103 35886 RPS 65971 b
459	459
460	460
461	461	HB4873- 13 -LRB103 35886 RPS 65971 b HB4873 - 13 - LRB103 35886 RPS 65971 b
462	462	HB4873 - 13 - LRB103 35886 RPS 65971 b
463	463	1 active service on or after August 6, 2021 (the effective date
464	464	2 of Public Act 102-263).
465	465	3 For the purposes of Section 1-103.1 of this Code, the
466	466	4 changes made to this Section by Public Act 100-23 are
467	467	5 applicable without regard to whether the employee was in
468	468	6 active service on or after July 6, 2017 (the effective date of
469	469	7 Public Act 100-23).
470	470	8 (f) The initial survivor's or widow's annuity of an
471	471	9 otherwise eligible survivor or widow of a retired member or
472	472	10 participant who first became a member or participant on or
473	473	11 after January 1, 2011 shall be in the amount of 66 2/3% of the
474	474	12 retired member's or participant's retirement annuity at the
475	475	13 date of death. In the case of the death of a member or
476	476	14 participant who has not retired and who first became a member
477	477	15 or participant on or after January 1, 2011, eligibility for a
478	478	16 survivor's or widow's annuity shall be determined by the
479	479	17 applicable Article of this Code. The initial benefit shall be
480	480	18 66 2/3% of the earned annuity without a reduction due to age. A
481	481	19 child's annuity of an otherwise eligible child shall be in the
482	482	20 amount prescribed under each Article if applicable. Any
483	483	21 survivor's or widow's annuity shall be increased (1) on each
484	484	22 January 1 occurring on or after the commencement of the
485	485	23 annuity if the deceased member died while receiving a
486	486	24 retirement annuity or (2) in other cases, on each January 1
487	487	25 occurring after the first anniversary of the commencement of
488	488	26 the annuity. Each annual increase shall be calculated at 3% or
489	489
490	490
491	491
492	492
493	493
494	494	HB4873 - 13 - LRB103 35886 RPS 65971 b
495	495
496	496
497	497	HB4873- 14 -LRB103 35886 RPS 65971 b HB4873 - 14 - LRB103 35886 RPS 65971 b
498	498	HB4873 - 14 - LRB103 35886 RPS 65971 b
499	499	1 one-half the annual unadjusted percentage increase (but not
500	500	2 less than zero) in the consumer price index-u for the 12 months
501	501	3 ending with the September preceding each November 1, whichever
502	502	4 is less, of the originally granted survivor's annuity. If the
503	503	5 annual unadjusted percentage change in the consumer price
504	504	6 index-u for the 12 months ending with the September preceding
505	505	7 each November 1 is zero or there is a decrease, then the
506	506	8 annuity shall not be increased.
507	507	9 (g) The benefits in Section 14-110 apply if the person is a
508	508	10 fire fighter in the fire protection service of a department, a
509	509	11 security employee of the Department of Corrections or the
510	510	12 Department of Juvenile Justice, or a security employee of the
511	511	13 Department of Innovation and Technology, as those terms are
512	512	14 defined in subsection (b) and subsection (c) of Section
513	513	15 14-110. A person who meets the requirements of this Section is
514	514	16 entitled to an annuity calculated under the provisions of
515	515	17 Section 14-110, in lieu of the regular or minimum retirement
516	516	18 annuity, only if the person has withdrawn from service with
517	517	19 not less than 20 years of eligible creditable service and has
518	518	20 attained age 60, regardless of whether the attainment of age
519	519	21 60 occurs while the person is still in service.
520	520	22 (g-5) The benefits in Section 14-110 apply if the person
521	521	23 is a State policeman, investigator for the Secretary of State,
522	522	24 conservation police officer, investigator for the Department
523	523	25 of Revenue or the Illinois Gaming Board, investigator for the
524	524	26 Office of the Attorney General, Commerce Commission police
525	525
526	526
527	527
528	528
529	529
530	530	HB4873 - 14 - LRB103 35886 RPS 65971 b
531	531
532	532
533	533	HB4873- 15 -LRB103 35886 RPS 65971 b HB4873 - 15 - LRB103 35886 RPS 65971 b
534	534	HB4873 - 15 - LRB103 35886 RPS 65971 b
535	535	1 officer, or arson investigator, as those terms are defined in
536	536	2 subsection (b) and subsection (c) of Section 14-110. A person
537	537	3 who meets the requirements of this Section is entitled to an
538	538	4 annuity calculated under the provisions of Section 14-110, in
539	539	5 lieu of the regular or minimum retirement annuity, only if the
540	540	6 person has withdrawn from service with not less than 20 years
541	541	7 of eligible creditable service and has attained age 55,
542	542	8 regardless of whether the attainment of age 55 occurs while
543	543	9 the person is still in service.
544	544	10 (h) If a person who first becomes a member or a participant
545	545	11 of a retirement system or pension fund subject to this Section
546	546	12 on or after January 1, 2011 is receiving a retirement annuity
547	547	13 or retirement pension under that system or fund and becomes a
548	548	14 member or participant under any other system or fund created
549	549	15 by this Code and is employed on a full-time basis, except for
550	550	16 those members or participants exempted from the provisions of
551	551	17 this Section under subsection (a) of this Section, then the
552	552	18 person's retirement annuity or retirement pension under that
553	553	19 system or fund shall be suspended during that employment. Upon
554	554	20 termination of that employment, the person's retirement
555	555	21 annuity or retirement pension payments shall resume and be
556	556	22 recalculated if recalculation is provided for under the
557	557	23 applicable Article of this Code.
558	558	24 If a person who first becomes a member of a retirement
559	559	25 system or pension fund subject to this Section on or after
560	560	26 January 1, 2012 and is receiving a retirement annuity or
561	561
562	562
563	563
564	564
565	565
566	566	HB4873 - 15 - LRB103 35886 RPS 65971 b
567	567
568	568
569	569	HB4873- 16 -LRB103 35886 RPS 65971 b HB4873 - 16 - LRB103 35886 RPS 65971 b
570	570	HB4873 - 16 - LRB103 35886 RPS 65971 b
571	571	1 retirement pension under that system or fund and accepts on a
572	572	2 contractual basis a position to provide services to a
573	573	3 governmental entity from which he or she has retired, then
574	574	4 that person's annuity or retirement pension earned as an
575	575	5 active employee of the employer shall be suspended during that
576	576	6 contractual service. A person receiving an annuity or
577	577	7 retirement pension under this Code shall notify the pension
578	578	8 fund or retirement system from which he or she is receiving an
579	579	9 annuity or retirement pension, as well as his or her
580	580	10 contractual employer, of his or her retirement status before
581	581	11 accepting contractual employment. A person who fails to submit
582	582	12 such notification shall be guilty of a Class A misdemeanor and
583	583	13 required to pay a fine of $1,000. Upon termination of that
584	584	14 contractual employment, the person's retirement annuity or
585	585	15 retirement pension payments shall resume and, if appropriate,
586	586	16 be recalculated under the applicable provisions of this Code.
587	587	17 (i) (Blank).
588	588	18 (j) In the case of a conflict between the provisions of
589	589	19 this Section and any other provision of this Code, the
590	590	20 provisions of this Section shall control.
591	591	21 (Source: P.A. 101-610, eff. 1-1-20; 102-16, eff. 6-17-21;
592	592	22 102-210, eff. 1-1-22; 102-263, eff. 8-6-21; 102-719, eff.
593	593	23 5-6-22.)
594	594	24 (Text of Section from P.A. 102-813)
595	595	25 Sec. 1-160. Provisions applicable to new hires.
596	596
597	597
598	598
599	599
600	600
601	601	HB4873 - 16 - LRB103 35886 RPS 65971 b
602	602
603	603
604	604	HB4873- 17 -LRB103 35886 RPS 65971 b HB4873 - 17 - LRB103 35886 RPS 65971 b
605	605	HB4873 - 17 - LRB103 35886 RPS 65971 b
606	606	1 (a) The provisions of this Section apply to a person who,
607	607	2 on or after January 1, 2011, first becomes a member or a
608	608	3 participant under any reciprocal retirement system or pension
609	609	4 fund established under this Code, other than a retirement
610	610	5 system or pension fund established under Article 2, 3, 4, 5, 6,
611	611	6 7, 15, or 18 of this Code, notwithstanding any other provision
612	612	7 of this Code to the contrary, but do not apply to any
613	613	8 self-managed plan established under this Code or to any
614	614	9 participant of the retirement plan established under Section
615	615	10 22-101; except that this Section applies to a person who
616	616	11 elected to establish alternative credits by electing in
617	617	12 writing after January 1, 2011, but before August 8, 2011,
618	618	13 under Section 7-145.1 of this Code. Notwithstanding anything
619	619	14 to the contrary in this Section, for purposes of this Section,
620	620	15 a person who is a Tier 1 regular employee as defined in Section
621	621	16 7-109.4 of this Code or who participated in a retirement
622	622	17 system under Article 15 prior to January 1, 2011 shall be
623	623	18 deemed a person who first became a member or participant prior
624	624	19 to January 1, 2011 under any retirement system or pension fund
625	625	20 subject to this Section. The changes made to this Section by
626	626	21 Public Act 98-596 are a clarification of existing law and are
627	627	22 intended to be retroactive to January 1, 2011 (the effective
628	628	23 date of Public Act 96-889), notwithstanding the provisions of
629	629	24 Section 1-103.1 of this Code.
630	630	25 This Section does not apply to a person who first becomes a
631	631	26 noncovered employee under Article 14 on or after the
632	632
633	633
634	634
635	635
636	636
637	637	HB4873 - 17 - LRB103 35886 RPS 65971 b
638	638
639	639
640	640	HB4873- 18 -LRB103 35886 RPS 65971 b HB4873 - 18 - LRB103 35886 RPS 65971 b
641	641	HB4873 - 18 - LRB103 35886 RPS 65971 b
642	642	1 implementation date of the plan created under Section 1-161
643	643	2 for that Article, unless that person elects under subsection
644	644	3 (b) of Section 1-161 to instead receive the benefits provided
645	645	4 under this Section and the applicable provisions of that
646	646	5 Article.
647	647	6 This Section does not apply to a person who first becomes a
648	648	7 member or participant under Article 16 on or after the
649	649	8 implementation date of the plan created under Section 1-161
650	650	9 for that Article, unless that person elects under subsection
651	651	10 (b) of Section 1-161 to instead receive the benefits provided
652	652	11 under this Section and the applicable provisions of that
653	653	12 Article.
654	654	13 This Section does not apply to a person who elects under
655	655	14 subsection (c-5) of Section 1-161 to receive the benefits
656	656	15 under Section 1-161.
657	657	16 This Section does not apply to a person who first becomes a
658	658	17 member or participant of an affected pension fund on or after 6
659	659	18 months after the resolution or ordinance date, as defined in
660	660	19 Section 1-162, unless that person elects under subsection (c)
661	661	20 of Section 1-162 to receive the benefits provided under this
662	662	21 Section and the applicable provisions of the Article under
663	663	22 which he or she is a member or participant.
664	664	23 (b) "Final average salary" means, except as otherwise
665	665	24 provided in this subsection, the average monthly (or annual)
666	666	25 salary obtained by dividing the total salary or earnings
667	667	26 calculated under the Article applicable to the member or
668	668
669	669
670	670
671	671
672	672
673	673	HB4873 - 18 - LRB103 35886 RPS 65971 b
674	674
675	675
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677	677	HB4873 - 19 - LRB103 35886 RPS 65971 b
678	678	1 participant during the 96 consecutive months (or 8 consecutive
679	679	2 years) of service within the last 120 months (or 10 years) of
680	680	3 service in which the total salary or earnings calculated under
681	681	4 the applicable Article was the highest by the number of months
682	682	5 (or years) of service in that period. For the purposes of a
683	683	6 person who first becomes a member or participant of any
684	684	7 retirement system or pension fund to which this Section
685	685	8 applies on or after January 1, 2011, in this Code, "final
686	686	9 average salary" shall be substituted for the following:
687	687	10 (1) (Blank).
688	688	11 (2) In Articles 8, 9, 10, 11, and 12, "highest average
689	689	12 annual salary for any 4 consecutive years within the last
690	690	13 10 years of service immediately preceding the date of
691	691	14 withdrawal".
692	692	15 (3) In Article 13, "average final salary".
693	693	16 (4) In Article 14, "final average compensation".
694	694	17 (5) In Article 17, "average salary".
695	695	18 (6) In Section 22-207, "wages or salary received by
696	696	19 him at the date of retirement or discharge".
697	697	20 A member of the Teachers' Retirement System of the State
698	698	21 of Illinois who retires on or after June 1, 2021 and for whom
699	699	22 the 2020-2021 school year is used in the calculation of the
700	700	23 member's final average salary shall use the higher of the
701	701	24 following for the purpose of determining the member's final
702	702	25 average salary:
703	703	26 (A) the amount otherwise calculated under the first
704	704
705	705
706	706
707	707
708	708
709	709	HB4873 - 19 - LRB103 35886 RPS 65971 b
710	710
711	711
712	712	HB4873- 20 -LRB103 35886 RPS 65971 b HB4873 - 20 - LRB103 35886 RPS 65971 b
713	713	HB4873 - 20 - LRB103 35886 RPS 65971 b
714	714	1 paragraph of this subsection; or
715	715	2 (B) an amount calculated by the Teachers' Retirement
716	716	3 System of the State of Illinois using the average of the
717	717	4 monthly (or annual) salary obtained by dividing the total
718	718	5 salary or earnings calculated under Article 16 applicable
719	719	6 to the member or participant during the 96 months (or 8
720	720	7 years) of service within the last 120 months (or 10 years)
721	721	8 of service in which the total salary or earnings
722	722	9 calculated under the Article was the highest by the number
723	723	10 of months (or years) of service in that period.
724	724	11 (b-5) Except as provided in subsections (b-15) and (b-20)
725	725	12 Beginning on January 1, 2011, for all purposes under this Code
726	726	13 (including without limitation the calculation of benefits and
727	727	14 employee contributions), the annual earnings, salary, or wages
728	728	15 (based on the plan year) of a member or participant to whom
729	729	16 this Section applies shall not exceed $106,800; however, that
730	730	17 amount shall annually thereafter be increased by the lesser of
731	731	18 (i) 3% of that amount, including all previous adjustments, or
732	732	19 (ii) one-half the annual unadjusted percentage increase (but
733	733	20 not less than zero) in the consumer price index-u for the 12
734	734	21 months ending with the September preceding each November 1,
735	735	22 including all previous adjustments.
736	736	23 For the purposes of this Section, "consumer price index-u"
737	737	24 means the index published by the Bureau of Labor Statistics of
738	738	25 the United States Department of Labor that measures the
739	739	26 average change in prices of goods and services purchased by
740	740
741	741
742	742
743	743
744	744
745	745	HB4873 - 20 - LRB103 35886 RPS 65971 b
746	746
747	747
748	748	HB4873- 21 -LRB103 35886 RPS 65971 b HB4873 - 21 - LRB103 35886 RPS 65971 b
749	749	HB4873 - 21 - LRB103 35886 RPS 65971 b
750	750	1 all urban consumers, United States city average, all items,
751	751	2 1982-84 = 100. The new amount resulting from each annual
752	752	3 adjustment shall be determined by the Public Pension Division
753	753	4 of the Department of Insurance and made available to the
754	754	5 boards of the retirement systems and pension funds by November
755	755	6 1 of each year.
756	756	7 (b-10) Beginning on January 1, 2024, for all purposes
757	757	8 under this Code (including, without limitation, the
758	758	9 calculation of benefits and employee contributions), the
759	759	10 annual earnings, salary, or wages (based on the plan year) of a
760	760	11 member or participant under Article 9 to whom this Section
761	761	12 applies shall include an annual earnings, salary, or wage cap
762	762	13 that tracks the Social Security wage base. Maximum annual
763	763	14 earnings, wages, or salary shall be the annual contribution
764	764	15 and benefit base established for the applicable year by the
765	765	16 Commissioner of the Social Security Administration under the
766	766	17 federal Social Security Act.
767	767	18 However, in no event shall the annual earnings, salary, or
768	768	19 wages for the purposes of this Article and Article 9 exceed any
769	769	20 limitation imposed on annual earnings, salary, or wages under
770	770	21 Section 1-117. Under no circumstances shall the maximum amount
771	771	22 of annual earnings, salary, or wages be greater than the
772	772	23 amount set forth in this subsection (b-10) as a result of
773	773	24 reciprocal service or any provisions regarding reciprocal
774	774	25 services, nor shall the Fund under Article 9 be required to pay
775	775	26 any refund as a result of the application of this maximum
776	776
777	777
778	778
779	779
780	780
781	781	HB4873 - 21 - LRB103 35886 RPS 65971 b
782	782
783	783
784	784	HB4873- 22 -LRB103 35886 RPS 65971 b HB4873 - 22 - LRB103 35886 RPS 65971 b
785	785	HB4873 - 22 - LRB103 35886 RPS 65971 b
786	786	1 annual earnings, salary, and wage cap.
787	787	2 Nothing in this subsection (b-10) shall cause or otherwise
788	788	3 result in any retroactive adjustment of any employee
789	789	4 contributions. Nothing in this subsection (b-10) shall cause
790	790	5 or otherwise result in any retroactive adjustment of
791	791	6 disability or other payments made between January 1, 2011 and
792	792	7 January 1, 2024.
793	793	8 (b-15) Beginning January 1, 2026 and until January 1,
794	794	9 2029, for all purposes under this Code (including, without
795	795	10 limitation, the calculation of benefits and employee
796	796	11 contributions), the annual earnings, salary, or wages (based
797	797	12 on the plan year) of a member or participant under Article 14,
798	798	13 16, or 17 to whom this Section applies shall not exceed the
799	799	14 amount determined under subsection (b-5) plus the earnings
800	800	15 limitation adjustment for that year.
801	801	16 In this subsection, "earnings limitation adjustment" means
802	802	17 the product that results from multiplying (i) the difference
803	803	18 between the federal Social Security wage base for the coming
804	804	19 calendar year and the amount calculated under subsection (b-5)
805	805	20 for that calendar year by (ii) the smoothing factor for that
806	806	21 calendar year. The earnings limitation adjustment shall be
807	807	22 determined by the Public Pension Division of the Department of
808	808	23 Insurance and made available to the boards of the retirement
809	809	24 systems and pension funds by December 1 of each year. If the
810	810	25 difference between the federal Social Security wage base for
811	811	26 the coming calendar year and the amount calculated under
812	812
813	813
814	814
815	815
816	816
817	817	HB4873 - 22 - LRB103 35886 RPS 65971 b
818	818
819	819
820	820	HB4873- 23 -LRB103 35886 RPS 65971 b HB4873 - 23 - LRB103 35886 RPS 65971 b
821	821	HB4873 - 23 - LRB103 35886 RPS 65971 b
822	822	1 subsection (b-5) for that calendar year is zero or less than
823	823	2 zero, the earnings limitation adjustment shall be zero.
824	824	3 In this subsection, "smoothing factor" means:
825	825	4 (1) for calendar year 2026, 25%;
826	826	5 (2) for calendar year 2027, 50%; and
827	827	6 (3) for calendar year 2028, 75%.
828	828	7 In this subsection and subsection (b-20), "Social Security
829	829	8 wage base" means the contribution and benefit base calculated
830	830	9 for the calendar year in question by the Commissioner of
831	831	10 Social Security under Section 230 of the federal Social
832	832	11 Security Act (42 U.S.C. 430).
833	833	12 (b-20) Beginning January 1, 2029, for all purposes under
834	834	13 this Code (including, without limitation, the calculation of
835	835	14 benefits and employee contributions), the annual earnings,
836	836	15 salary, or wages (based on the plan year) of a member or
837	837	16 participant under Article 14, 16, or 17 to whom this Section
838	838	17 applies shall not exceed the federal Social Security wage base
839	839	18 then in effect.
840	840	19 (c) A member or participant is entitled to a retirement
841	841	20 annuity upon written application if he or she has attained age
842	842	21 67 (age 65, with respect to service under Article 12 that is
843	843	22 subject to this Section, for a member or participant under
844	844	23 Article 12 who first becomes a member or participant under
845	845	24 Article 12 on or after January 1, 2022 or who makes the
846	846	25 election under item (i) of subsection (d-15) of this Section)
847	847	26 and has at least 10 years of service credit and is otherwise
848	848
849	849
850	850
851	851
852	852
853	853	HB4873 - 23 - LRB103 35886 RPS 65971 b
854	854
855	855
856	856	HB4873- 24 -LRB103 35886 RPS 65971 b HB4873 - 24 - LRB103 35886 RPS 65971 b
857	857	HB4873 - 24 - LRB103 35886 RPS 65971 b
858	858	1 eligible under the requirements of the applicable Article.
859	859	2 A member or participant who has attained age 62 (age 60,
860	860	3 with respect to service under Article 12 that is subject to
861	861	4 this Section, for a member or participant under Article 12 who
862	862	5 first becomes a member or participant under Article 12 on or
863	863	6 after January 1, 2022 or who makes the election under item (i)
864	864	7 of subsection (d-15) of this Section) and has at least 10 years
865	865	8 of service credit and is otherwise eligible under the
866	866	9 requirements of the applicable Article may elect to receive
867	867	10 the lower retirement annuity provided in subsection (d) of
868	868	11 this Section.
869	869	12 (c-5) A person who first becomes a member or a participant
870	870	13 subject to this Section on or after July 6, 2017 (the effective
871	871	14 date of Public Act 100-23), notwithstanding any other
872	872	15 provision of this Code to the contrary, is entitled to a
873	873	16 retirement annuity under Article 8 or Article 11 upon written
874	874	17 application if he or she has attained age 65 and has at least
875	875	18 10 years of service credit and is otherwise eligible under the
876	876	19 requirements of Article 8 or Article 11 of this Code,
877	877	20 whichever is applicable.
878	878	21 (d) The retirement annuity of a member or participant who
879	879	22 is retiring after attaining age 62 (age 60, with respect to
880	880	23 service under Article 12 that is subject to this Section, for a
881	881	24 member or participant under Article 12 who first becomes a
882	882	25 member or participant under Article 12 on or after January 1,
883	883	26 2022 or who makes the election under item (i) of subsection
884	884
885	885
886	886
887	887
888	888
889	889	HB4873 - 24 - LRB103 35886 RPS 65971 b
890	890
891	891
892	892	HB4873- 25 -LRB103 35886 RPS 65971 b HB4873 - 25 - LRB103 35886 RPS 65971 b
893	893	HB4873 - 25 - LRB103 35886 RPS 65971 b
894	894	1 (d-15) of this Section) with at least 10 years of service
895	895	2 credit shall be reduced by one-half of 1% for each full month
896	896	3 that the member's age is under age 67 (age 65, with respect to
897	897	4 service under Article 12 that is subject to this Section, for a
898	898	5 member or participant under Article 12 who first becomes a
899	899	6 member or participant under Article 12 on or after January 1,
900	900	7 2022 or who makes the election under item (i) of subsection
901	901	8 (d-15) of this Section).
902	902	9 (d-5) The retirement annuity payable under Article 8 or
903	903	10 Article 11 to an eligible person subject to subsection (c-5)
904	904	11 of this Section who is retiring at age 60 with at least 10
905	905	12 years of service credit shall be reduced by one-half of 1% for
906	906	13 each full month that the member's age is under age 65.
907	907	14 (d-10) Each person who first became a member or
908	908	15 participant under Article 8 or Article 11 of this Code on or
909	909	16 after January 1, 2011 and prior to July 6, 2017 (the effective
910	910	17 date of Public Act 100-23) shall make an irrevocable election
911	911	18 either:
912	912	19 (i) to be eligible for the reduced retirement age
913	913	20 provided in subsections (c-5) and (d-5) of this Section,
914	914	21 the eligibility for which is conditioned upon the member
915	915	22 or participant agreeing to the increases in employee
916	916	23 contributions for age and service annuities provided in
917	917	24 subsection (a-5) of Section 8-174 of this Code (for
918	918	25 service under Article 8) or subsection (a-5) of Section
919	919	26 11-170 of this Code (for service under Article 11); or
920	920
921	921
922	922
923	923
924	924
925	925	HB4873 - 25 - LRB103 35886 RPS 65971 b
926	926
927	927
928	928	HB4873- 26 -LRB103 35886 RPS 65971 b HB4873 - 26 - LRB103 35886 RPS 65971 b
929	929	HB4873 - 26 - LRB103 35886 RPS 65971 b
930	930	1 (ii) to not agree to item (i) of this subsection
931	931	2 (d-10), in which case the member or participant shall
932	932	3 continue to be subject to the retirement age provisions in
933	933	4 subsections (c) and (d) of this Section and the employee
934	934	5 contributions for age and service annuity as provided in
935	935	6 subsection (a) of Section 8-174 of this Code (for service
936	936	7 under Article 8) or subsection (a) of Section 11-170 of
937	937	8 this Code (for service under Article 11).
938	938	9 The election provided for in this subsection shall be made
939	939	10 between October 1, 2017 and November 15, 2017. A person
940	940	11 subject to this subsection who makes the required election
941	941	12 shall remain bound by that election. A person subject to this
942	942	13 subsection who fails for any reason to make the required
943	943	14 election within the time specified in this subsection shall be
944	944	15 deemed to have made the election under item (ii).
945	945	16 (d-15) Each person who first becomes a member or
946	946	17 participant under Article 12 on or after January 1, 2011 and
947	947	18 prior to January 1, 2022 shall make an irrevocable election
948	948	19 either:
949	949	20 (i) to be eligible for the reduced retirement age
950	950	21 specified in subsections (c) and (d) of this Section, the
951	951	22 eligibility for which is conditioned upon the member or
952	952	23 participant agreeing to the increase in employee
953	953	24 contributions for service annuities specified in
954	954	25 subsection (b) of Section 12-150; or
955	955	26 (ii) to not agree to item (i) of this subsection
956	956
957	957
958	958
959	959
960	960
961	961	HB4873 - 26 - LRB103 35886 RPS 65971 b
962	962
963	963
964	964	HB4873- 27 -LRB103 35886 RPS 65971 b HB4873 - 27 - LRB103 35886 RPS 65971 b
965	965	HB4873 - 27 - LRB103 35886 RPS 65971 b
966	966	1 (d-15), in which case the member or participant shall not
967	967	2 be eligible for the reduced retirement age specified in
968	968	3 subsections (c) and (d) of this Section and shall not be
969	969	4 subject to the increase in employee contributions for
970	970	5 service annuities specified in subsection (b) of Section
971	971	6 12-150.
972	972	7 The election provided for in this subsection shall be made
973	973	8 between January 1, 2022 and April 1, 2022. A person subject to
974	974	9 this subsection who makes the required election shall remain
975	975	10 bound by that election. A person subject to this subsection
976	976	11 who fails for any reason to make the required election within
977	977	12 the time specified in this subsection shall be deemed to have
978	978	13 made the election under item (ii).
979	979	14 (e) Any retirement annuity or supplemental annuity shall
980	980	15 be subject to annual increases on the January 1 occurring
981	981	16 either on or after the attainment of age 67 (age 65, with
982	982	17 respect to service under Article 12 that is subject to this
983	983	18 Section, for a member or participant under Article 12 who
984	984	19 first becomes a member or participant under Article 12 on or
985	985	20 after January 1, 2022 or who makes the election under item (i)
986	986	21 of subsection (d-15); and beginning on July 6, 2017 (the
987	987	22 effective date of Public Act 100-23), age 65 with respect to
988	988	23 service under Article 8 or Article 11 for eligible persons
989	989	24 who: (i) are subject to subsection (c-5) of this Section; or
990	990	25 (ii) made the election under item (i) of subsection (d-10) of
991	991	26 this Section) or the first anniversary of the annuity start
992	992
993	993
994	994
995	995
996	996
997	997	HB4873 - 27 - LRB103 35886 RPS 65971 b
998	998
999	999
1000	1000	HB4873- 28 -LRB103 35886 RPS 65971 b HB4873 - 28 - LRB103 35886 RPS 65971 b
1001	1001	HB4873 - 28 - LRB103 35886 RPS 65971 b
1002	1002	1 date, whichever is later. Each annual increase shall be
1003	1003	2 calculated at 3% or one-half the annual unadjusted percentage
1004	1004	3 increase (but not less than zero) in the consumer price
1005	1005	4 index-u for the 12 months ending with the September preceding
1006	1006	5 each November 1, whichever is less, of the originally granted
1007	1007	6 retirement annuity. If the annual unadjusted percentage change
1008	1008	7 in the consumer price index-u for the 12 months ending with the
1009	1009	8 September preceding each November 1 is zero or there is a
1010	1010	9 decrease, then the annuity shall not be increased.
1011	1011	10 For the purposes of Section 1-103.1 of this Code, the
1012	1012	11 changes made to this Section by Public Act 102-263 are
1013	1013	12 applicable without regard to whether the employee was in
1014	1014	13 active service on or after August 6, 2021 (the effective date
1015	1015	14 of Public Act 102-263).
1016	1016	15 For the purposes of Section 1-103.1 of this Code, the
1017	1017	16 changes made to this Section by Public Act 100-23 are
1018	1018	17 applicable without regard to whether the employee was in
1019	1019	18 active service on or after July 6, 2017 (the effective date of
1020	1020	19 Public Act 100-23).
1021	1021	20 (f) The initial survivor's or widow's annuity of an
1022	1022	21 otherwise eligible survivor or widow of a retired member or
1023	1023	22 participant who first became a member or participant on or
1024	1024	23 after January 1, 2011 shall be in the amount of 66 2/3% of the
1025	1025	24 retired member's or participant's retirement annuity at the
1026	1026	25 date of death. In the case of the death of a member or
1027	1027	26 participant who has not retired and who first became a member
1028	1028
1029	1029
1030	1030
1031	1031
1032	1032
1033	1033	HB4873 - 28 - LRB103 35886 RPS 65971 b
1034	1034
1035	1035
1036	1036	HB4873- 29 -LRB103 35886 RPS 65971 b HB4873 - 29 - LRB103 35886 RPS 65971 b
1037	1037	HB4873 - 29 - LRB103 35886 RPS 65971 b
1038	1038	1 or participant on or after January 1, 2011, eligibility for a
1039	1039	2 survivor's or widow's annuity shall be determined by the
1040	1040	3 applicable Article of this Code. The initial benefit shall be
1041	1041	4 66 2/3% of the earned annuity without a reduction due to age. A
1042	1042	5 child's annuity of an otherwise eligible child shall be in the
1043	1043	6 amount prescribed under each Article if applicable. Any
1044	1044	7 survivor's or widow's annuity shall be increased (1) on each
1045	1045	8 January 1 occurring on or after the commencement of the
1046	1046	9 annuity if the deceased member died while receiving a
1047	1047	10 retirement annuity or (2) in other cases, on each January 1
1048	1048	11 occurring after the first anniversary of the commencement of
1049	1049	12 the annuity. Each annual increase shall be calculated at 3% or
1050	1050	13 one-half the annual unadjusted percentage increase (but not
1051	1051	14 less than zero) in the consumer price index-u for the 12 months
1052	1052	15 ending with the September preceding each November 1, whichever
1053	1053	16 is less, of the originally granted survivor's annuity. If the
1054	1054	17 annual unadjusted percentage change in the consumer price
1055	1055	18 index-u for the 12 months ending with the September preceding
1056	1056	19 each November 1 is zero or there is a decrease, then the
1057	1057	20 annuity shall not be increased.
1058	1058	21 (g) The benefits in Section 14-110 apply only if the
1059	1059	22 person is a State policeman, a fire fighter in the fire
1060	1060	23 protection service of a department, a conservation police
1061	1061	24 officer, an investigator for the Secretary of State, an arson
1062	1062	25 investigator, a Commerce Commission police officer,
1063	1063	26 investigator for the Department of Revenue or the Illinois
1064	1064
1065	1065
1066	1066
1067	1067
1068	1068
1069	1069	HB4873 - 29 - LRB103 35886 RPS 65971 b
1070	1070
1071	1071
1072	1072	HB4873- 30 -LRB103 35886 RPS 65971 b HB4873 - 30 - LRB103 35886 RPS 65971 b
1073	1073	HB4873 - 30 - LRB103 35886 RPS 65971 b
1074	1074	1 Gaming Board, a security employee of the Department of
1075	1075	2 Corrections or the Department of Juvenile Justice, or a
1076	1076	3 security employee of the Department of Innovation and
1077	1077	4 Technology, as those terms are defined in subsection (b) and
1078	1078	5 subsection (c) of Section 14-110. A person who meets the
1079	1079	6 requirements of this Section is entitled to an annuity
1080	1080	7 calculated under the provisions of Section 14-110, in lieu of
1081	1081	8 the regular or minimum retirement annuity, only if the person
1082	1082	9 has withdrawn from service with not less than 20 years of
1083	1083	10 eligible creditable service and has attained age 60,
1084	1084	11 regardless of whether the attainment of age 60 occurs while
1085	1085	12 the person is still in service.
1086	1086	13 (h) If a person who first becomes a member or a participant
1087	1087	14 of a retirement system or pension fund subject to this Section
1088	1088	15 on or after January 1, 2011 is receiving a retirement annuity
1089	1089	16 or retirement pension under that system or fund and becomes a
1090	1090	17 member or participant under any other system or fund created
1091	1091	18 by this Code and is employed on a full-time basis, except for
1092	1092	19 those members or participants exempted from the provisions of
1093	1093	20 this Section under subsection (a) of this Section, then the
1094	1094	21 person's retirement annuity or retirement pension under that
1095	1095	22 system or fund shall be suspended during that employment. Upon
1096	1096	23 termination of that employment, the person's retirement
1097	1097	24 annuity or retirement pension payments shall resume and be
1098	1098	25 recalculated if recalculation is provided for under the
1099	1099	26 applicable Article of this Code.
1100	1100
1101	1101
1102	1102
1103	1103
1104	1104
1105	1105	HB4873 - 30 - LRB103 35886 RPS 65971 b
1106	1106
1107	1107
1108	1108	HB4873- 31 -LRB103 35886 RPS 65971 b HB4873 - 31 - LRB103 35886 RPS 65971 b
1109	1109	HB4873 - 31 - LRB103 35886 RPS 65971 b
1110	1110	1 If a person who first becomes a member of a retirement
1111	1111	2 system or pension fund subject to this Section on or after
1112	1112	3 January 1, 2012 and is receiving a retirement annuity or
1113	1113	4 retirement pension under that system or fund and accepts on a
1114	1114	5 contractual basis a position to provide services to a
1115	1115	6 governmental entity from which he or she has retired, then
1116	1116	7 that person's annuity or retirement pension earned as an
1117	1117	8 active employee of the employer shall be suspended during that
1118	1118	9 contractual service. A person receiving an annuity or
1119	1119	10 retirement pension under this Code shall notify the pension
1120	1120	11 fund or retirement system from which he or she is receiving an
1121	1121	12 annuity or retirement pension, as well as his or her
1122	1122	13 contractual employer, of his or her retirement status before
1123	1123	14 accepting contractual employment. A person who fails to submit
1124	1124	15 such notification shall be guilty of a Class A misdemeanor and
1125	1125	16 required to pay a fine of $1,000. Upon termination of that
1126	1126	17 contractual employment, the person's retirement annuity or
1127	1127	18 retirement pension payments shall resume and, if appropriate,
1128	1128	19 be recalculated under the applicable provisions of this Code.
1129	1129	20 (i) (Blank).
1130	1130	21 (j) In the case of a conflict between the provisions of
1131	1131	22 this Section and any other provision of this Code, the
1132	1132	23 provisions of this Section shall control.
1133	1133	24 (Source: P.A. 101-610, eff. 1-1-20; 102-16, eff. 6-17-21;
1134	1134	25 102-210, eff. 1-1-22; 102-263, eff. 8-6-21; 102-813, eff.
1135	1135	26 5-13-22.)
1136	1136
1137	1137
1138	1138
1139	1139
1140	1140
1141	1141	HB4873 - 31 - LRB103 35886 RPS 65971 b
1142	1142
1143	1143
1144	1144	HB4873- 32 -LRB103 35886 RPS 65971 b HB4873 - 32 - LRB103 35886 RPS 65971 b
1145	1145	HB4873 - 32 - LRB103 35886 RPS 65971 b
1146	1146	1 (Text of Section from P.A. 102-956)
1147	1147	2 Sec. 1-160. Provisions applicable to new hires.
1148	1148	3 (a) The provisions of this Section apply to a person who,
1149	1149	4 on or after January 1, 2011, first becomes a member or a
1150	1150	5 participant under any reciprocal retirement system or pension
1151	1151	6 fund established under this Code, other than a retirement
1152	1152	7 system or pension fund established under Article 2, 3, 4, 5, 6,
1153	1153	8 7, 15, or 18 of this Code, notwithstanding any other provision
1154	1154	9 of this Code to the contrary, but do not apply to any
1155	1155	10 self-managed plan established under this Code or to any
1156	1156	11 participant of the retirement plan established under Section
1157	1157	12 22-101; except that this Section applies to a person who
1158	1158	13 elected to establish alternative credits by electing in
1159	1159	14 writing after January 1, 2011, but before August 8, 2011,
1160	1160	15 under Section 7-145.1 of this Code. Notwithstanding anything
1161	1161	16 to the contrary in this Section, for purposes of this Section,
1162	1162	17 a person who is a Tier 1 regular employee as defined in Section
1163	1163	18 7-109.4 of this Code or who participated in a retirement
1164	1164	19 system under Article 15 prior to January 1, 2011 shall be
1165	1165	20 deemed a person who first became a member or participant prior
1166	1166	21 to January 1, 2011 under any retirement system or pension fund
1167	1167	22 subject to this Section. The changes made to this Section by
1168	1168	23 Public Act 98-596 are a clarification of existing law and are
1169	1169	24 intended to be retroactive to January 1, 2011 (the effective
1170	1170	25 date of Public Act 96-889), notwithstanding the provisions of
1171	1171
1172	1172
1173	1173
1174	1174
1175	1175
1176	1176	HB4873 - 32 - LRB103 35886 RPS 65971 b
1177	1177
1178	1178
1179	1179	HB4873- 33 -LRB103 35886 RPS 65971 b HB4873 - 33 - LRB103 35886 RPS 65971 b
1180	1180	HB4873 - 33 - LRB103 35886 RPS 65971 b
1181	1181	1 Section 1-103.1 of this Code.
1182	1182	2 This Section does not apply to a person who first becomes a
1183	1183	3 noncovered employee under Article 14 on or after the
1184	1184	4 implementation date of the plan created under Section 1-161
1185	1185	5 for that Article, unless that person elects under subsection
1186	1186	6 (b) of Section 1-161 to instead receive the benefits provided
1187	1187	7 under this Section and the applicable provisions of that
1188	1188	8 Article.
1189	1189	9 This Section does not apply to a person who first becomes a
1190	1190	10 member or participant under Article 16 on or after the
1191	1191	11 implementation date of the plan created under Section 1-161
1192	1192	12 for that Article, unless that person elects under subsection
1193	1193	13 (b) of Section 1-161 to instead receive the benefits provided
1194	1194	14 under this Section and the applicable provisions of that
1195	1195	15 Article.
1196	1196	16 This Section does not apply to a person who elects under
1197	1197	17 subsection (c-5) of Section 1-161 to receive the benefits
1198	1198	18 under Section 1-161.
1199	1199	19 This Section does not apply to a person who first becomes a
1200	1200	20 member or participant of an affected pension fund on or after 6
1201	1201	21 months after the resolution or ordinance date, as defined in
1202	1202	22 Section 1-162, unless that person elects under subsection (c)
1203	1203	23 of Section 1-162 to receive the benefits provided under this
1204	1204	24 Section and the applicable provisions of the Article under
1205	1205	25 which he or she is a member or participant.
1206	1206	26 (b) "Final average salary" means, except as otherwise
1207	1207
1208	1208
1209	1209
1210	1210
1211	1211
1212	1212	HB4873 - 33 - LRB103 35886 RPS 65971 b
1213	1213
1214	1214
1215	1215	HB4873- 34 -LRB103 35886 RPS 65971 b HB4873 - 34 - LRB103 35886 RPS 65971 b
1216	1216	HB4873 - 34 - LRB103 35886 RPS 65971 b
1217	1217	1 provided in this subsection, the average monthly (or annual)
1218	1218	2 salary obtained by dividing the total salary or earnings
1219	1219	3 calculated under the Article applicable to the member or
1220	1220	4 participant during the 96 consecutive months (or 8 consecutive
1221	1221	5 years) of service within the last 120 months (or 10 years) of
1222	1222	6 service in which the total salary or earnings calculated under
1223	1223	7 the applicable Article was the highest by the number of months
1224	1224	8 (or years) of service in that period. For the purposes of a
1225	1225	9 person who first becomes a member or participant of any
1226	1226	10 retirement system or pension fund to which this Section
1227	1227	11 applies on or after January 1, 2011, in this Code, "final
1228	1228	12 average salary" shall be substituted for the following:
1229	1229	13 (1) (Blank).
1230	1230	14 (2) In Articles 8, 9, 10, 11, and 12, "highest average
1231	1231	15 annual salary for any 4 consecutive years within the last
1232	1232	16 10 years of service immediately preceding the date of
1233	1233	17 withdrawal".
1234	1234	18 (3) In Article 13, "average final salary".
1235	1235	19 (4) In Article 14, "final average compensation".
1236	1236	20 (5) In Article 17, "average salary".
1237	1237	21 (6) In Section 22-207, "wages or salary received by
1238	1238	22 him at the date of retirement or discharge".
1239	1239	23 A member of the Teachers' Retirement System of the State
1240	1240	24 of Illinois who retires on or after June 1, 2021 and for whom
1241	1241	25 the 2020-2021 school year is used in the calculation of the
1242	1242	26 member's final average salary shall use the higher of the
1243	1243
1244	1244
1245	1245
1246	1246
1247	1247
1248	1248	HB4873 - 34 - LRB103 35886 RPS 65971 b
1249	1249
1250	1250
1251	1251	HB4873- 35 -LRB103 35886 RPS 65971 b HB4873 - 35 - LRB103 35886 RPS 65971 b
1252	1252	HB4873 - 35 - LRB103 35886 RPS 65971 b
1253	1253	1 following for the purpose of determining the member's final
1254	1254	2 average salary:
1255	1255	3 (A) the amount otherwise calculated under the first
1256	1256	4 paragraph of this subsection; or
1257	1257	5 (B) an amount calculated by the Teachers' Retirement
1258	1258	6 System of the State of Illinois using the average of the
1259	1259	7 monthly (or annual) salary obtained by dividing the total
1260	1260	8 salary or earnings calculated under Article 16 applicable
1261	1261	9 to the member or participant during the 96 months (or 8
1262	1262	10 years) of service within the last 120 months (or 10 years)
1263	1263	11 of service in which the total salary or earnings
1264	1264	12 calculated under the Article was the highest by the number
1265	1265	13 of months (or years) of service in that period.
1266	1266	14 (b-5) Except as provided in subsections (b-15) and (b-20)
1267	1267	15 Beginning on January 1, 2011, for all purposes under this Code
1268	1268	16 (including without limitation the calculation of benefits and
1269	1269	17 employee contributions), the annual earnings, salary, or wages
1270	1270	18 (based on the plan year) of a member or participant to whom
1271	1271	19 this Section applies shall not exceed $106,800; however, that
1272	1272	20 amount shall annually thereafter be increased by the lesser of
1273	1273	21 (i) 3% of that amount, including all previous adjustments, or
1274	1274	22 (ii) one-half the annual unadjusted percentage increase (but
1275	1275	23 not less than zero) in the consumer price index-u for the 12
1276	1276	24 months ending with the September preceding each November 1,
1277	1277	25 including all previous adjustments.
1278	1278	26 For the purposes of this Section, "consumer price index-u"
1279	1279
1280	1280
1281	1281
1282	1282
1283	1283
1284	1284	HB4873 - 35 - LRB103 35886 RPS 65971 b
1285	1285
1286	1286
1287	1287	HB4873- 36 -LRB103 35886 RPS 65971 b HB4873 - 36 - LRB103 35886 RPS 65971 b
1288	1288	HB4873 - 36 - LRB103 35886 RPS 65971 b
1289	1289	1 means the index published by the Bureau of Labor Statistics of
1290	1290	2 the United States Department of Labor that measures the
1291	1291	3 average change in prices of goods and services purchased by
1292	1292	4 all urban consumers, United States city average, all items,
1293	1293	5 1982-84 = 100. The new amount resulting from each annual
1294	1294	6 adjustment shall be determined by the Public Pension Division
1295	1295	7 of the Department of Insurance and made available to the
1296	1296	8 boards of the retirement systems and pension funds by November
1297	1297	9 1 of each year.
1298	1298	10 (b-10) Beginning on January 1, 2024, for all purposes
1299	1299	11 under this Code (including, without limitation, the
1300	1300	12 calculation of benefits and employee contributions), the
1301	1301	13 annual earnings, salary, or wages (based on the plan year) of a
1302	1302	14 member or participant under Article 9 to whom this Section
1303	1303	15 applies shall include an annual earnings, salary, or wage cap
1304	1304	16 that tracks the Social Security wage base. Maximum annual
1305	1305	17 earnings, wages, or salary shall be the annual contribution
1306	1306	18 and benefit base established for the applicable year by the
1307	1307	19 Commissioner of the Social Security Administration under the
1308	1308	20 federal Social Security Act.
1309	1309	21 However, in no event shall the annual earnings, salary, or
1310	1310	22 wages for the purposes of this Article and Article 9 exceed any
1311	1311	23 limitation imposed on annual earnings, salary, or wages under
1312	1312	24 Section 1-117. Under no circumstances shall the maximum amount
1313	1313	25 of annual earnings, salary, or wages be greater than the
1314	1314	26 amount set forth in this subsection (b-10) as a result of
1315	1315
1316	1316
1317	1317
1318	1318
1319	1319
1320	1320	HB4873 - 36 - LRB103 35886 RPS 65971 b
1321	1321
1322	1322
1323	1323	HB4873- 37 -LRB103 35886 RPS 65971 b HB4873 - 37 - LRB103 35886 RPS 65971 b
1324	1324	HB4873 - 37 - LRB103 35886 RPS 65971 b
1325	1325	1 reciprocal service or any provisions regarding reciprocal
1326	1326	2 services, nor shall the Fund under Article 9 be required to pay
1327	1327	3 any refund as a result of the application of this maximum
1328	1328	4 annual earnings, salary, and wage cap.
1329	1329	5 Nothing in this subsection (b-10) shall cause or otherwise
1330	1330	6 result in any retroactive adjustment of any employee
1331	1331	7 contributions. Nothing in this subsection (b-10) shall cause
1332	1332	8 or otherwise result in any retroactive adjustment of
1333	1333	9 disability or other payments made between January 1, 2011 and
1334	1334	10 January 1, 2024.
1335	1335	11 (b-15) Beginning January 1, 2026 and until January 1,
1336	1336	12 2029, for all purposes under this Code (including, without
1337	1337	13 limitation, the calculation of benefits and employee
1338	1338	14 contributions), the annual earnings, salary, or wages (based
1339	1339	15 on the plan year) of a member or participant under Article 14,
1340	1340	16 16, or 17 to whom this Section applies shall not exceed the
1341	1341	17 amount determined under subsection (b-5) plus the earnings
1342	1342	18 limitation adjustment for that year.
1343	1343	19 In this subsection, "earnings limitation adjustment" means
1344	1344	20 the product that results from multiplying (i) the difference
1345	1345	21 between the federal Social Security wage base for the coming
1346	1346	22 calendar year and the amount calculated under subsection (b-5)
1347	1347	23 for that calendar year by (ii) the smoothing factor for that
1348	1348	24 calendar year. The earnings limitation adjustment shall be
1349	1349	25 determined by the Public Pension Division of the Department of
1350	1350	26 Insurance and made available to the boards of the retirement
1351	1351
1352	1352
1353	1353
1354	1354
1355	1355
1356	1356	HB4873 - 37 - LRB103 35886 RPS 65971 b
1357	1357
1358	1358
1359	1359	HB4873- 38 -LRB103 35886 RPS 65971 b HB4873 - 38 - LRB103 35886 RPS 65971 b
1360	1360	HB4873 - 38 - LRB103 35886 RPS 65971 b
1361	1361	1 systems and pension funds by December 1 of each year. If the
1362	1362	2 difference between the federal Social Security wage base for
1363	1363	3 the coming calendar year and the amount calculated under
1364	1364	4 subsection (b-5) for that calendar year is zero or less than
1365	1365	5 zero, the earnings limitation adjustment shall be zero.
1366	1366	6 In this subsection, "smoothing factor" means:
1367	1367	7 (1) for calendar year 2026, 25%;
1368	1368	8 (2) for calendar year 2027, 50%; and
1369	1369	9 (3) for calendar year 2028, 75%.
1370	1370	10 In this subsection and subsection (b-20), "Social Security
1371	1371	11 wage base" means the contribution and benefit base calculated
1372	1372	12 for the calendar year in question by the Commissioner of
1373	1373	13 Social Security under Section 230 of the federal Social
1374	1374	14 Security Act (42 U.S.C. 430).
1375	1375	15 (b-20) Beginning January 1, 2029, for all purposes under
1376	1376	16 this Code (including, without limitation, the calculation of
1377	1377	17 benefits and employee contributions), the annual earnings,
1378	1378	18 salary, or wages (based on the plan year) of a member or
1379	1379	19 participant under Article 14, 16, or 17 to whom this Section
1380	1380	20 applies shall not exceed the federal Social Security wage base
1381	1381	21 then in effect.
1382	1382	22 (c) A member or participant is entitled to a retirement
1383	1383	23 annuity upon written application if he or she has attained age
1384	1384	24 67 (age 65, with respect to service under Article 12 that is
1385	1385	25 subject to this Section, for a member or participant under
1386	1386	26 Article 12 who first becomes a member or participant under
1387	1387
1388	1388
1389	1389
1390	1390
1391	1391
1392	1392	HB4873 - 38 - LRB103 35886 RPS 65971 b
1393	1393
1394	1394
1395	1395	HB4873- 39 -LRB103 35886 RPS 65971 b HB4873 - 39 - LRB103 35886 RPS 65971 b
1396	1396	HB4873 - 39 - LRB103 35886 RPS 65971 b
1397	1397	1 Article 12 on or after January 1, 2022 or who makes the
1398	1398	2 election under item (i) of subsection (d-15) of this Section)
1399	1399	3 and has at least 10 years of service credit and is otherwise
1400	1400	4 eligible under the requirements of the applicable Article.
1401	1401	5 A member or participant who has attained age 62 (age 60,
1402	1402	6 with respect to service under Article 12 that is subject to
1403	1403	7 this Section, for a member or participant under Article 12 who
1404	1404	8 first becomes a member or participant under Article 12 on or
1405	1405	9 after January 1, 2022 or who makes the election under item (i)
1406	1406	10 of subsection (d-15) of this Section) and has at least 10 years
1407	1407	11 of service credit and is otherwise eligible under the
1408	1408	12 requirements of the applicable Article may elect to receive
1409	1409	13 the lower retirement annuity provided in subsection (d) of
1410	1410	14 this Section.
1411	1411	15 (c-5) A person who first becomes a member or a participant
1412	1412	16 subject to this Section on or after July 6, 2017 (the effective
1413	1413	17 date of Public Act 100-23), notwithstanding any other
1414	1414	18 provision of this Code to the contrary, is entitled to a
1415	1415	19 retirement annuity under Article 8 or Article 11 upon written
1416	1416	20 application if he or she has attained age 65 and has at least
1417	1417	21 10 years of service credit and is otherwise eligible under the
1418	1418	22 requirements of Article 8 or Article 11 of this Code,
1419	1419	23 whichever is applicable.
1420	1420	24 (d) The retirement annuity of a member or participant who
1421	1421	25 is retiring after attaining age 62 (age 60, with respect to
1422	1422	26 service under Article 12 that is subject to this Section, for a
1423	1423
1424	1424
1425	1425
1426	1426
1427	1427
1428	1428	HB4873 - 39 - LRB103 35886 RPS 65971 b
1429	1429
1430	1430
1431	1431	HB4873- 40 -LRB103 35886 RPS 65971 b HB4873 - 40 - LRB103 35886 RPS 65971 b
1432	1432	HB4873 - 40 - LRB103 35886 RPS 65971 b
1433	1433	1 member or participant under Article 12 who first becomes a
1434	1434	2 member or participant under Article 12 on or after January 1,
1435	1435	3 2022 or who makes the election under item (i) of subsection
1436	1436	4 (d-15) of this Section) with at least 10 years of service
1437	1437	5 credit shall be reduced by one-half of 1% for each full month
1438	1438	6 that the member's age is under age 67 (age 65, with respect to
1439	1439	7 service under Article 12 that is subject to this Section, for a
1440	1440	8 member or participant under Article 12 who first becomes a
1441	1441	9 member or participant under Article 12 on or after January 1,
1442	1442	10 2022 or who makes the election under item (i) of subsection
1443	1443	11 (d-15) of this Section).
1444	1444	12 (d-5) The retirement annuity payable under Article 8 or
1445	1445	13 Article 11 to an eligible person subject to subsection (c-5)
1446	1446	14 of this Section who is retiring at age 60 with at least 10
1447	1447	15 years of service credit shall be reduced by one-half of 1% for
1448	1448	16 each full month that the member's age is under age 65.
1449	1449	17 (d-10) Each person who first became a member or
1450	1450	18 participant under Article 8 or Article 11 of this Code on or
1451	1451	19 after January 1, 2011 and prior to July 6, 2017 (the effective
1452	1452	20 date of Public Act 100-23) shall make an irrevocable election
1453	1453	21 either:
1454	1454	22 (i) to be eligible for the reduced retirement age
1455	1455	23 provided in subsections (c-5) and (d-5) of this Section,
1456	1456	24 the eligibility for which is conditioned upon the member
1457	1457	25 or participant agreeing to the increases in employee
1458	1458	26 contributions for age and service annuities provided in
1459	1459
1460	1460
1461	1461
1462	1462
1463	1463
1464	1464	HB4873 - 40 - LRB103 35886 RPS 65971 b
1465	1465
1466	1466
1467	1467	HB4873- 41 -LRB103 35886 RPS 65971 b HB4873 - 41 - LRB103 35886 RPS 65971 b
1468	1468	HB4873 - 41 - LRB103 35886 RPS 65971 b
1469	1469	1 subsection (a-5) of Section 8-174 of this Code (for
1470	1470	2 service under Article 8) or subsection (a-5) of Section
1471	1471	3 11-170 of this Code (for service under Article 11); or
1472	1472	4 (ii) to not agree to item (i) of this subsection
1473	1473	5 (d-10), in which case the member or participant shall
1474	1474	6 continue to be subject to the retirement age provisions in
1475	1475	7 subsections (c) and (d) of this Section and the employee
1476	1476	8 contributions for age and service annuity as provided in
1477	1477	9 subsection (a) of Section 8-174 of this Code (for service
1478	1478	10 under Article 8) or subsection (a) of Section 11-170 of
1479	1479	11 this Code (for service under Article 11).
1480	1480	12 The election provided for in this subsection shall be made
1481	1481	13 between October 1, 2017 and November 15, 2017. A person
1482	1482	14 subject to this subsection who makes the required election
1483	1483	15 shall remain bound by that election. A person subject to this
1484	1484	16 subsection who fails for any reason to make the required
1485	1485	17 election within the time specified in this subsection shall be
1486	1486	18 deemed to have made the election under item (ii).
1487	1487	19 (d-15) Each person who first becomes a member or
1488	1488	20 participant under Article 12 on or after January 1, 2011 and
1489	1489	21 prior to January 1, 2022 shall make an irrevocable election
1490	1490	22 either:
1491	1491	23 (i) to be eligible for the reduced retirement age
1492	1492	24 specified in subsections (c) and (d) of this Section, the
1493	1493	25 eligibility for which is conditioned upon the member or
1494	1494	26 participant agreeing to the increase in employee
1495	1495
1496	1496
1497	1497
1498	1498
1499	1499
1500	1500	HB4873 - 41 - LRB103 35886 RPS 65971 b
1501	1501
1502	1502
1503	1503	HB4873- 42 -LRB103 35886 RPS 65971 b HB4873 - 42 - LRB103 35886 RPS 65971 b
1504	1504	HB4873 - 42 - LRB103 35886 RPS 65971 b
1505	1505	1 contributions for service annuities specified in
1506	1506	2 subsection (b) of Section 12-150; or
1507	1507	3 (ii) to not agree to item (i) of this subsection
1508	1508	4 (d-15), in which case the member or participant shall not
1509	1509	5 be eligible for the reduced retirement age specified in
1510	1510	6 subsections (c) and (d) of this Section and shall not be
1511	1511	7 subject to the increase in employee contributions for
1512	1512	8 service annuities specified in subsection (b) of Section
1513	1513	9 12-150.
1514	1514	10 The election provided for in this subsection shall be made
1515	1515	11 between January 1, 2022 and April 1, 2022. A person subject to
1516	1516	12 this subsection who makes the required election shall remain
1517	1517	13 bound by that election. A person subject to this subsection
1518	1518	14 who fails for any reason to make the required election within
1519	1519	15 the time specified in this subsection shall be deemed to have
1520	1520	16 made the election under item (ii).
1521	1521	17 (e) Any retirement annuity or supplemental annuity shall
1522	1522	18 be subject to annual increases on the January 1 occurring
1523	1523	19 either on or after the attainment of age 67 (age 65, with
1524	1524	20 respect to service under Article 12 that is subject to this
1525	1525	21 Section, for a member or participant under Article 12 who
1526	1526	22 first becomes a member or participant under Article 12 on or
1527	1527	23 after January 1, 2022 or who makes the election under item (i)
1528	1528	24 of subsection (d-15); and beginning on July 6, 2017 (the
1529	1529	25 effective date of Public Act 100-23), age 65 with respect to
1530	1530	26 service under Article 8 or Article 11 for eligible persons
1531	1531
1532	1532
1533	1533
1534	1534
1535	1535
1536	1536	HB4873 - 42 - LRB103 35886 RPS 65971 b
1537	1537
1538	1538
1539	1539	HB4873- 43 -LRB103 35886 RPS 65971 b HB4873 - 43 - LRB103 35886 RPS 65971 b
1540	1540	HB4873 - 43 - LRB103 35886 RPS 65971 b
1541	1541	1 who: (i) are subject to subsection (c-5) of this Section; or
1542	1542	2 (ii) made the election under item (i) of subsection (d-10) of
1543	1543	3 this Section) or the first anniversary of the annuity start
1544	1544	4 date, whichever is later. Each annual increase shall be
1545	1545	5 calculated at 3% or one-half the annual unadjusted percentage
1546	1546	6 increase (but not less than zero) in the consumer price
1547	1547	7 index-u for the 12 months ending with the September preceding
1548	1548	8 each November 1, whichever is less, of the originally granted
1549	1549	9 retirement annuity. If the annual unadjusted percentage change
1550	1550	10 in the consumer price index-u for the 12 months ending with the
1551	1551	11 September preceding each November 1 is zero or there is a
1552	1552	12 decrease, then the annuity shall not be increased.
1553	1553	13 For the purposes of Section 1-103.1 of this Code, the
1554	1554	14 changes made to this Section by Public Act 102-263 are
1555	1555	15 applicable without regard to whether the employee was in
1556	1556	16 active service on or after August 6, 2021 (the effective date
1557	1557	17 of Public Act 102-263).
1558	1558	18 For the purposes of Section 1-103.1 of this Code, the
1559	1559	19 changes made to this Section by Public Act 100-23 are
1560	1560	20 applicable without regard to whether the employee was in
1561	1561	21 active service on or after July 6, 2017 (the effective date of
1562	1562	22 Public Act 100-23).
1563	1563	23 (f) The initial survivor's or widow's annuity of an
1564	1564	24 otherwise eligible survivor or widow of a retired member or
1565	1565	25 participant who first became a member or participant on or
1566	1566	26 after January 1, 2011 shall be in the amount of 66 2/3% of the
1567	1567
1568	1568
1569	1569
1570	1570
1571	1571
1572	1572	HB4873 - 43 - LRB103 35886 RPS 65971 b
1573	1573
1574	1574
1575	1575	HB4873- 44 -LRB103 35886 RPS 65971 b HB4873 - 44 - LRB103 35886 RPS 65971 b
1576	1576	HB4873 - 44 - LRB103 35886 RPS 65971 b
1577	1577	1 retired member's or participant's retirement annuity at the
1578	1578	2 date of death. In the case of the death of a member or
1579	1579	3 participant who has not retired and who first became a member
1580	1580	4 or participant on or after January 1, 2011, eligibility for a
1581	1581	5 survivor's or widow's annuity shall be determined by the
1582	1582	6 applicable Article of this Code. The initial benefit shall be
1583	1583	7 66 2/3% of the earned annuity without a reduction due to age. A
1584	1584	8 child's annuity of an otherwise eligible child shall be in the
1585	1585	9 amount prescribed under each Article if applicable. Any
1586	1586	10 survivor's or widow's annuity shall be increased (1) on each
1587	1587	11 January 1 occurring on or after the commencement of the
1588	1588	12 annuity if the deceased member died while receiving a
1589	1589	13 retirement annuity or (2) in other cases, on each January 1
1590	1590	14 occurring after the first anniversary of the commencement of
1591	1591	15 the annuity. Each annual increase shall be calculated at 3% or
1592	1592	16 one-half the annual unadjusted percentage increase (but not
1593	1593	17 less than zero) in the consumer price index-u for the 12 months
1594	1594	18 ending with the September preceding each November 1, whichever
1595	1595	19 is less, of the originally granted survivor's annuity. If the
1596	1596	20 annual unadjusted percentage change in the consumer price
1597	1597	21 index-u for the 12 months ending with the September preceding
1598	1598	22 each November 1 is zero or there is a decrease, then the
1599	1599	23 annuity shall not be increased.
1600	1600	24 (g) The benefits in Section 14-110 apply only if the
1601	1601	25 person is a State policeman, a fire fighter in the fire
1602	1602	26 protection service of a department, a conservation police
1603	1603
1604	1604
1605	1605
1606	1606
1607	1607
1608	1608	HB4873 - 44 - LRB103 35886 RPS 65971 b
1609	1609
1610	1610
1611	1611	HB4873- 45 -LRB103 35886 RPS 65971 b HB4873 - 45 - LRB103 35886 RPS 65971 b
1612	1612	HB4873 - 45 - LRB103 35886 RPS 65971 b
1613	1613	1 officer, an investigator for the Secretary of State, an
1614	1614	2 investigator for the Office of the Attorney General, an arson
1615	1615	3 investigator, a Commerce Commission police officer,
1616	1616	4 investigator for the Department of Revenue or the Illinois
1617	1617	5 Gaming Board, a security employee of the Department of
1618	1618	6 Corrections or the Department of Juvenile Justice, or a
1619	1619	7 security employee of the Department of Innovation and
1620	1620	8 Technology, as those terms are defined in subsection (b) and
1621	1621	9 subsection (c) of Section 14-110. A person who meets the
1622	1622	10 requirements of this Section is entitled to an annuity
1623	1623	11 calculated under the provisions of Section 14-110, in lieu of
1624	1624	12 the regular or minimum retirement annuity, only if the person
1625	1625	13 has withdrawn from service with not less than 20 years of
1626	1626	14 eligible creditable service and has attained age 60,
1627	1627	15 regardless of whether the attainment of age 60 occurs while
1628	1628	16 the person is still in service.
1629	1629	17 (h) If a person who first becomes a member or a participant
1630	1630	18 of a retirement system or pension fund subject to this Section
1631	1631	19 on or after January 1, 2011 is receiving a retirement annuity
1632	1632	20 or retirement pension under that system or fund and becomes a
1633	1633	21 member or participant under any other system or fund created
1634	1634	22 by this Code and is employed on a full-time basis, except for
1635	1635	23 those members or participants exempted from the provisions of
1636	1636	24 this Section under subsection (a) of this Section, then the
1637	1637	25 person's retirement annuity or retirement pension under that
1638	1638	26 system or fund shall be suspended during that employment. Upon
1639	1639
1640	1640
1641	1641
1642	1642
1643	1643
1644	1644	HB4873 - 45 - LRB103 35886 RPS 65971 b
1645	1645
1646	1646
1647	1647	HB4873- 46 -LRB103 35886 RPS 65971 b HB4873 - 46 - LRB103 35886 RPS 65971 b
1648	1648	HB4873 - 46 - LRB103 35886 RPS 65971 b
1649	1649	1 termination of that employment, the person's retirement
1650	1650	2 annuity or retirement pension payments shall resume and be
1651	1651	3 recalculated if recalculation is provided for under the
1652	1652	4 applicable Article of this Code.
1653	1653	5 If a person who first becomes a member of a retirement
1654	1654	6 system or pension fund subject to this Section on or after
1655	1655	7 January 1, 2012 and is receiving a retirement annuity or
1656	1656	8 retirement pension under that system or fund and accepts on a
1657	1657	9 contractual basis a position to provide services to a
1658	1658	10 governmental entity from which he or she has retired, then
1659	1659	11 that person's annuity or retirement pension earned as an
1660	1660	12 active employee of the employer shall be suspended during that
1661	1661	13 contractual service. A person receiving an annuity or
1662	1662	14 retirement pension under this Code shall notify the pension
1663	1663	15 fund or retirement system from which he or she is receiving an
1664	1664	16 annuity or retirement pension, as well as his or her
1665	1665	17 contractual employer, of his or her retirement status before
1666	1666	18 accepting contractual employment. A person who fails to submit
1667	1667	19 such notification shall be guilty of a Class A misdemeanor and
1668	1668	20 required to pay a fine of $1,000. Upon termination of that
1669	1669	21 contractual employment, the person's retirement annuity or
1670	1670	22 retirement pension payments shall resume and, if appropriate,
1671	1671	23 be recalculated under the applicable provisions of this Code.
1672	1672	24 (i) (Blank).
1673	1673	25 (j) In the case of a conflict between the provisions of
1674	1674	26 this Section and any other provision of this Code, the
1675	1675
1676	1676
1677	1677
1678	1678
1679	1679
1680	1680	HB4873 - 46 - LRB103 35886 RPS 65971 b
1681	1681
1682	1682
1683	1683	HB4873- 47 -LRB103 35886 RPS 65971 b HB4873 - 47 - LRB103 35886 RPS 65971 b
1684	1684	HB4873 - 47 - LRB103 35886 RPS 65971 b
1685	1685	1 provisions of this Section shall control.
1686	1686	2 (Source: P.A. 102-16, eff. 6-17-21; 102-210, eff. 1-1-22;
1687	1687	3 102-263, eff. 8-6-21; 102-956, eff. 5-27-22; 103-529, eff.
1688	1688	4 8-11-23.)
1689	1689	5 (40 ILCS 5/2-108.1) (from Ch. 108 1/2, par. 2-108.1)
1690	1690	6 (Text of Section WITHOUT the changes made by P.A. 98-599,
1691	1691	7 which has been held unconstitutional)
1692	1692	8 Sec. 2-108.1. Highest salary for annuity purposes.
1693	1693	9 (a) "Highest salary for annuity purposes" means whichever
1694	1694	10 of the following is applicable to the participant:
1695	1695	11 For a participant who first becomes a participant of this
1696	1696	12 System before August 10, 2009 (the effective date of Public
1697	1697	13 Act 96-207):
1698	1698	14 (1) For a participant who is a member of the General
1699	1699	15 Assembly on his or her last day of service: the highest
1700	1700	16 salary that is prescribed by law, on the participant's
1701	1701	17 last day of service, for a member of the General Assembly
1702	1702	18 who is not an officer; plus, if the participant was
1703	1703	19 elected or appointed to serve as an officer of the General
1704	1704	20 Assembly for 2 or more years and has made contributions as
1705	1705	21 required under subsection (d) of Section 2-126, the
1706	1706	22 highest additional amount of compensation prescribed by
1707	1707	23 law, at the time of the participant's service as an
1708	1708	24 officer, for members of the General Assembly who serve in
1709	1709	25 that office.
1710	1710
1711	1711
1712	1712
1713	1713
1714	1714
1715	1715	HB4873 - 47 - LRB103 35886 RPS 65971 b
1716	1716
1717	1717
1718	1718	HB4873- 48 -LRB103 35886 RPS 65971 b HB4873 - 48 - LRB103 35886 RPS 65971 b
1719	1719	HB4873 - 48 - LRB103 35886 RPS 65971 b
1720	1720	1 (2) For a participant who holds one of the State
1721	1721	2 executive offices specified in Section 2-105 on his or her
1722	1722	3 last day of service: the highest salary prescribed by law
1723	1723	4 for service in that office on the participant's last day
1724	1724	5 of service.
1725	1725	6 (3) For a participant who is Clerk or Assistant Clerk
1726	1726	7 of the House of Representatives or Secretary or Assistant
1727	1727	8 Secretary of the Senate on his or her last day of service:
1728	1728	9 the salary received for service in that capacity on the
1729	1729	10 last day of service, but not to exceed the highest salary
1730	1730	11 (including additional compensation for service as an
1731	1731	12 officer) that is prescribed by law on the participant's
1732	1732	13 last day of service for the highest paid officer of the
1733	1733	14 General Assembly.
1734	1734	15 (4) For a participant who is a continuing participant
1735	1735	16 under Section 2-117.1 on his or her last day of service:
1736	1736	17 the salary received for service in that capacity on the
1737	1737	18 last day of service, but not to exceed the highest salary
1738	1738	19 (including additional compensation for service as an
1739	1739	20 officer) that is prescribed by law on the participant's
1740	1740	21 last day of service for the highest paid officer of the
1741	1741	22 General Assembly.
1742	1742	23 For a participant who first becomes a participant of this
1743	1743	24 System on or after August 10, 2009 (the effective date of
1744	1744	25 Public Act 96-207) and before January 1, 2011 (the effective
1745	1745	26 date of Public Act 96-889), the average monthly salary
1746	1746
1747	1747
1748	1748
1749	1749
1750	1750
1751	1751	HB4873 - 48 - LRB103 35886 RPS 65971 b
1752	1752
1753	1753
1754	1754	HB4873- 49 -LRB103 35886 RPS 65971 b HB4873 - 49 - LRB103 35886 RPS 65971 b
1755	1755	HB4873 - 49 - LRB103 35886 RPS 65971 b
1756	1756	1 obtained by dividing the total salary of the participant
1757	1757	2 during the period of: (1) the 48 consecutive months of service
1758	1758	3 within the last 120 months of service in which the total
1759	1759	4 compensation was the highest, or (2) the total period of
1760	1760	5 service, if less than 48 months, by the number of months of
1761	1761	6 service in that period.
1762	1762	7 For a participant who first becomes a participant of this
1763	1763	8 System on or after January 1, 2011 (the effective date of
1764	1764	9 Public Act 96-889), the average monthly salary obtained by
1765	1765	10 dividing the total salary of the participant during the 96
1766	1766	11 consecutive months of service within the last 120 months of
1767	1767	12 service in which the total compensation was the highest by the
1768	1768	13 number of months of service in that period; however, except as
1769	1769	14 provided in subsection (a-5) or (a-10), beginning January 1,
1770	1770	15 2011, the highest salary for annuity purposes may not exceed
1771	1771	16 $106,800, except that that amount shall annually thereafter be
1772	1772	17 increased by the lesser of (i) 3% of that amount, including all
1773	1773	18 previous adjustments, or (ii) the annual unadjusted percentage
1774	1774	19 increase (but not less than zero) in the consumer price
1775	1775	20 index-u for the 12 months ending with the September preceding
1776	1776	21 each November 1. "Consumer price index-u" means the index
1777	1777	22 published by the Bureau of Labor Statistics of the United
1778	1778	23 States Department of Labor that measures the average change in
1779	1779	24 prices of goods and services purchased by all urban consumers,
1780	1780	25 United States city average, all items, 1982-84 = 100. The new
1781	1781	26 amount resulting from each annual adjustment shall be
1782	1782
1783	1783
1784	1784
1785	1785
1786	1786
1787	1787	HB4873 - 49 - LRB103 35886 RPS 65971 b
1788	1788
1789	1789
1790	1790	HB4873- 50 -LRB103 35886 RPS 65971 b HB4873 - 50 - LRB103 35886 RPS 65971 b
1791	1791	HB4873 - 50 - LRB103 35886 RPS 65971 b
1792	1792	1 determined by the Public Pension Division of the Department of
1793	1793	2 Insurance and made available to the Board by November 1 of each
1794	1794	3 year.
1795	1795	4 (a-5) Beginning January 1, 2026 and until January 1, 2029,
1796	1796	5 for a participant who first becomes a participant of this
1797	1797	6 System on or after January 1, 2011, the highest salary for
1798	1798	7 annuity purposes may not exceed the amount determined under
1799	1799	8 subsection (a) plus the earnings limitation adjustment for
1800	1800	9 that year.
1801	1801	10 In this subsection, "earnings limitation adjustment" means
1802	1802	11 the product that results from multiplying (i) the difference
1803	1803	12 between the federal Social Security wage base for the coming
1804	1804	13 calendar year and the amount calculated under subsection (a)
1805	1805	14 for that calendar year by (ii) the smoothing factor for that
1806	1806	15 calendar year. The earnings limitation adjustment shall be
1807	1807	16 determined by the Public Pension Division of the Department of
1808	1808	17 Insurance and made available to the boards of the retirement
1809	1809	18 systems and pension funds by December 1 of each year. If the
1810	1810	19 difference between the federal Social Security wage base for
1811	1811	20 the coming calendar year and the amount calculated under
1812	1812	21 subsection (a) for that calendar year is zero or less than
1813	1813	22 zero, the earnings limitation adjustment shall be zero.
1814	1814	23 In this subsection, "smoothing factor" means:
1815	1815	24 (1) for calendar year 2026, 25%;
1816	1816	25 (2) for calendar year 2027, 50%; and
1817	1817	26 (3) for calendar year 2028, 75%.
1818	1818
1819	1819
1820	1820
1821	1821
1822	1822
1823	1823	HB4873 - 50 - LRB103 35886 RPS 65971 b
1824	1824
1825	1825
1826	1826	HB4873- 51 -LRB103 35886 RPS 65971 b HB4873 - 51 - LRB103 35886 RPS 65971 b
1827	1827	HB4873 - 51 - LRB103 35886 RPS 65971 b
1828	1828	1 In this subsection and subsection (a-10), "Social Security
1829	1829	2 wage base" means the contribution and benefit base calculated
1830	1830	3 for the calendar year in question by the Commissioner of
1831	1831	4 Social Security under Section 230 of the federal Social
1832	1832	5 Security Act (42 U.S.C. 430).
1833	1833	6 (a-10) Beginning January 1, 2029, the highest salary for
1834	1834	7 annuity purposes may not exceed the federal Social Security
1835	1835	8 wage base then in effect.
1836	1836	9 (b) The earnings limitations of subsection (a), (a-5), and
1837	1837	10 (a-10), whichever is applicable, apply to earnings under any
1838	1838	11 other participating system under the Retirement Systems
1839	1839	12 Reciprocal Act that are considered in calculating a
1840	1840	13 proportional annuity under this Article, except in the case of
1841	1841	14 a person who first became a member of this System before August
1842	1842	15 22, 1994 and has not, on or after the effective date of this
1843	1843	16 amendatory Act of the 97th General Assembly, irrevocably
1844	1844	17 elected to have those limitations apply. The limitations of
1845	1845	18 subsection (a), (a-5), and (a-10), whichever is applicable,
1846	1846	19 shall apply, however, to earnings under any other
1847	1847	20 participating system under the Retirement Systems Reciprocal
1848	1848	21 Act that are considered in calculating the proportional
1849	1849	22 annuity of a person who first became a member of this System
1850	1850	23 before August 22, 1994 if, on or after the effective date of
1851	1851	24 this amendatory Act of the 97th General Assembly, that member
1852	1852	25 irrevocably elects to have those limitations apply.
1853	1853	26 (c) In calculating the subsection (a), (a-5), or (a-10),
1854	1854
1855	1855
1856	1856
1857	1857
1858	1858
1859	1859	HB4873 - 51 - LRB103 35886 RPS 65971 b
1860	1860
1861	1861
1862	1862	HB4873- 52 -LRB103 35886 RPS 65971 b HB4873 - 52 - LRB103 35886 RPS 65971 b
1863	1863	HB4873 - 52 - LRB103 35886 RPS 65971 b
1864	1864	1 whichever is applicable, earnings limitation to be applied to
1865	1865	2 earnings under any other participating system under the
1866	1866	3 Retirement Systems Reciprocal Act for the purpose of
1867	1867	4 calculating a proportional annuity under this Article, the
1868	1868	5 participant's last day of service shall be deemed to mean the
1869	1869	6 last day of service in any participating system from which the
1870	1870	7 person has applied for a proportional annuity under the
1871	1871	8 Retirement Systems Reciprocal Act.
1872	1872	9 (Source: P.A. 96-207, eff. 8-10-09; 96-889, eff. 1-1-11;
1873	1873	10 96-1490, eff. 1-1-11; 97-967, eff. 8-16-12.)
1874	1874	11 (40 ILCS 5/2-119.1) (from Ch. 108 1/2, par. 2-119.1)
1875	1875	12 (Text of Section WITHOUT the changes made by P.A. 98-599,
1876	1876	13 which has been held unconstitutional)
1877	1877	14 Sec. 2-119.1. Automatic increase in retirement annuity.
1878	1878	15 (a) A participant who retires after June 30, 1967, and who
1879	1879	16 has not received an initial increase under this Section before
1880	1880	17 the effective date of this amendatory Act of 1991, shall, in
1881	1881	18 January or July next following the first anniversary of
1882	1882	19 retirement, whichever occurs first, and in the same month of
1883	1883	20 each year thereafter, but in no event prior to age 60, have the
1884	1884	21 amount of the originally granted retirement annuity increased
1885	1885	22 as follows: for each year through 1971, 1 1/2%; for each year
1886	1886	23 from 1972 through 1979, 2%; and for 1980 and each year
1887	1887	24 thereafter, 3%. Annuitants who have received an initial
1888	1888	25 increase under this subsection prior to the effective date of
1889	1889
1890	1890
1891	1891
1892	1892
1893	1893
1894	1894	HB4873 - 52 - LRB103 35886 RPS 65971 b
1895	1895
1896	1896
1897	1897	HB4873- 53 -LRB103 35886 RPS 65971 b HB4873 - 53 - LRB103 35886 RPS 65971 b
1898	1898	HB4873 - 53 - LRB103 35886 RPS 65971 b
1899	1899	1 this amendatory Act of 1991 shall continue to receive their
1900	1900	2 annual increases in the same month as the initial increase.
1901	1901	3 (b) Beginning January 1, 1990, for eligible participants
1902	1902	4 who remain in service after attaining 20 years of creditable
1903	1903	5 service, the 3% increases provided under subsection (a) shall
1904	1904	6 begin to accrue on the January 1 next following the date upon
1905	1905	7 which the participant (1) attains age 55, or (2) attains 20
1906	1906	8 years of creditable service, whichever occurs later, and shall
1907	1907	9 continue to accrue while the participant remains in service;
1908	1908	10 such increases shall become payable on January 1 or July 1,
1909	1909	11 whichever occurs first, next following the first anniversary
1910	1910	12 of retirement. For any person who has service credit in the
1911	1911	13 System for the entire period from January 15, 1969 through
1912	1912	14 December 31, 1992, regardless of the date of termination of
1913	1913	15 service, the reference to age 55 in clause (1) of this
1914	1914	16 subsection (b) shall be deemed to mean age 50.
1915	1915	17 This subsection (b) does not apply to any person who first
1916	1916	18 becomes a member of the System after the effective date of this
1917	1917	19 amendatory Act of the 93rd General Assembly.
1918	1918	20 (b-5) Notwithstanding any other provision of this Article,
1919	1919	21 a participant who first becomes a participant on or after
1920	1920	22 January 1, 2011 (the effective date of Public Act 96-889)
1921	1921	23 shall, in January or July next following the first anniversary
1922	1922	24 of retirement, whichever occurs first, and in the same month
1923	1923	25 of each year thereafter, but in no event prior to age 67, have
1924	1924	26 the amount of the retirement annuity then being paid increased
1925	1925
1926	1926
1927	1927
1928	1928
1929	1929
1930	1930	HB4873 - 53 - LRB103 35886 RPS 65971 b
1931	1931
1932	1932
1933	1933	HB4873- 54 -LRB103 35886 RPS 65971 b HB4873 - 54 - LRB103 35886 RPS 65971 b
1934	1934	HB4873 - 54 - LRB103 35886 RPS 65971 b
1935	1935	1 by 3% or the annual unadjusted percentage increase in the
1936	1936	2 Consumer Price Index for All Urban Consumers as determined by
1937	1937	3 the Public Pension Division of the Department of Insurance
1938	1938	4 under subsection (a) of Section 2-108.1, whichever is less.
1939	1939	5 In this subsection, "consumer price index-u" means the
1940	1940	6 index published by the Bureau of Labor Statistics of the
1941	1941	7 United States Department of Labor that measures the average
1942	1942	8 change in prices of goods and services purchased by all urban
1943	1943	9 consumers, United States city average, all items, 1982-84 =
1944	1944	10 100. The new amount resulting from each annual adjustment
1945	1945	11 shall be determined by the Public Pension Division of the
1946	1946	12 Department of Insurance and made available to the Board by
1947	1947	13 November 1 of each year.
1948	1948	14 (c) The foregoing provisions relating to automatic
1949	1949	15 increases are not applicable to a participant who retires
1950	1950	16 before having made contributions (at the rate prescribed in
1951	1951	17 Section 2-126) for automatic increases for less than the
1952	1952	18 equivalent of one full year. However, in order to be eligible
1953	1953	19 for the automatic increases, such a participant may make
1954	1954	20 arrangements to pay to the system the amount required to bring
1955	1955	21 the total contributions for the automatic increase to the
1956	1956	22 equivalent of one year's contributions based upon his or her
1957	1957	23 last salary.
1958	1958	24 (d) A participant who terminated service prior to July 1,
1959	1959	25 1967, with at least 14 years of service is entitled to an
1960	1960	26 increase in retirement annuity beginning January, 1976, and to
1961	1961
1962	1962
1963	1963
1964	1964
1965	1965
1966	1966	HB4873 - 54 - LRB103 35886 RPS 65971 b
1967	1967
1968	1968
1969	1969	HB4873- 55 -LRB103 35886 RPS 65971 b HB4873 - 55 - LRB103 35886 RPS 65971 b
1970	1970	HB4873 - 55 - LRB103 35886 RPS 65971 b
1971	1971	1 additional increases in January of each year thereafter.
1972	1972	2 The initial increase shall be 1 1/2% of the originally
1973	1973	3 granted retirement annuity multiplied by the number of full
1974	1974	4 years that the annuitant was in receipt of such annuity prior
1975	1975	5 to January 1, 1972, plus 2% of the originally granted
1976	1976	6 retirement annuity for each year after that date. The
1977	1977	7 subsequent annual increases shall be at the rate of 2% of the
1978	1978	8 originally granted retirement annuity for each year through
1979	1979	9 1979 and at the rate of 3% for 1980 and thereafter.
1980	1980	10 (e) Beginning January 1, 1990, all automatic annual
1981	1981	11 increases payable under this Section shall be calculated as a
1982	1982	12 percentage of the total annuity payable at the time of the
1983	1983	13 increase, including previous increases granted under this
1984	1984	14 Article.
1985	1985	15 (Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11.)
1986	1986	16 (40 ILCS 5/14-103.10) (from Ch. 108 1/2, par. 14-103.10)
1987	1987	17 (Text of Section WITHOUT the changes made by P.A. 98-599,
1988	1988	18 which has been held unconstitutional)
1989	1989	19 Sec. 14-103.10. Compensation.
1990	1990	20 (a) For periods of service prior to January 1, 1978, the
1991	1991	21 full rate of salary or wages payable to an employee for
1992	1992	22 personal services performed if he worked the full normal
1993	1993	23 working period for his position, subject to the following
1994	1994	24 maximum amounts: (1) prior to July 1, 1951, $400 per month or
1995	1995	25 $4,800 per year; (2) between July 1, 1951 and June 30, 1957
1996	1996
1997	1997
1998	1998
1999	1999
2000	2000
2001	2001	HB4873 - 55 - LRB103 35886 RPS 65971 b
2002	2002
2003	2003
2004	2004	HB4873- 56 -LRB103 35886 RPS 65971 b HB4873 - 56 - LRB103 35886 RPS 65971 b
2005	2005	HB4873 - 56 - LRB103 35886 RPS 65971 b
2006	2006	1 inclusive, $625 per month or $7,500 per year; (3) beginning
2007	2007	2 July 1, 1957, no limitation.
2008	2008	3 In the case of service of an employee in a position
2009	2009	4 involving part-time employment, compensation shall be
2010	2010	5 determined according to the employees' earnings record.
2011	2011	6 (b) For periods of service on and after January 1, 1978,
2012	2012	7 all remuneration for personal services performed defined as
2013	2013	8 "wages" under the Social Security Enabling Act, including that
2014	2014	9 part of such remuneration which is in excess of any maximum
2015	2015	10 limitation provided in such Act, and including any benefits
2016	2016	11 received by an employee under a sick pay plan in effect before
2017	2017	12 January 1, 1981, but excluding lump sum salary payments:
2018	2018	13 (1) for vacation,
2019	2019	14 (2) for accumulated unused sick leave,
2020	2020	15 (3) upon discharge or dismissal,
2021	2021	16 (4) for approved holidays.
2022	2022	17 (c) For periods of service on or after December 16, 1978,
2023	2023	18 compensation also includes any benefits, other than lump sum
2024	2024	19 salary payments made at termination of employment, which an
2025	2025	20 employee receives or is eligible to receive under a sick pay
2026	2026	21 plan authorized by law.
2027	2027	22 (d) For periods of service after September 30, 1985,
2028	2028	23 compensation also includes any remuneration for personal
2029	2029	24 services not included as "wages" under the Social Security
2030	2030	25 Enabling Act, which is deducted for purposes of participation
2031	2031	26 in a program established pursuant to Section 125 of the
2032	2032
2033	2033
2034	2034
2035	2035
2036	2036
2037	2037	HB4873 - 56 - LRB103 35886 RPS 65971 b
2038	2038
2039	2039
2040	2040	HB4873- 57 -LRB103 35886 RPS 65971 b HB4873 - 57 - LRB103 35886 RPS 65971 b
2041	2041	HB4873 - 57 - LRB103 35886 RPS 65971 b
2042	2042	1 Internal Revenue Code or its successor laws.
2043	2043	2 (e) For members for which Section 1-160 applies for
2044	2044	3 periods of service on and after January 1, 2011, all
2045	2045	4 remuneration for personal services performed defined as
2046	2046	5 "wages" under the Social Security Enabling Act, excluding
2047	2047	6 remuneration that is in excess of the annual earnings, salary,
2048	2048	7 or wages of a member or participant, as provided in subsection
2049	2049	8 (b-5) of Section 1-160, but including any benefits received by
2050	2050	9 an employee under a sick pay plan in effect before January 1,
2051	2051	10 1981. Compensation shall exclude lump sum salary payments:
2052	2052	11 (1) for vacation;
2053	2053	12 (2) for accumulated unused sick leave;
2054	2054	13 (3) upon discharge or dismissal; and
2055	2055	14 (4) for approved holidays.
2056	2056	15 (f) Notwithstanding the other provisions of this Section,
2057	2057	16 for service on or after July 1, 2013, "compensation" does not
2058	2058	17 include any stipend payable to an employee for service on a
2059	2059	18 board or commission.
2060	2060	19 (Source: P.A. 98-449, eff. 8-16-13.)
2061	2061	20 (40 ILCS 5/15-111) (from Ch. 108 1/2, par. 15-111)
2062	2062	21 Sec. 15-111. Earnings.
2063	2063	22 (a) "Earnings": Subject to Section 15-111.5, an amount
2064	2064	23 paid for personal services equal to the sum of the basic
2065	2065	24 compensation plus extra compensation for summer teaching,
2066	2066	25 overtime or other extra service. For periods for which an
2067	2067
2068	2068
2069	2069
2070	2070
2071	2071
2072	2072	HB4873 - 57 - LRB103 35886 RPS 65971 b
2073	2073
2074	2074
2075	2075	HB4873- 58 -LRB103 35886 RPS 65971 b HB4873 - 58 - LRB103 35886 RPS 65971 b
2076	2076	HB4873 - 58 - LRB103 35886 RPS 65971 b
2077	2077	1 employee receives service credit under subsection (c) of
2078	2078	2 Section 15-113.1 or Section 15-113.2, earnings are equal to
2079	2079	3 the basic compensation on which contributions are paid by the
2080	2080	4 employee during such periods. Compensation for employment
2081	2081	5 which is irregular, intermittent and temporary shall not be
2082	2082	6 considered earnings, unless the participant is also receiving
2083	2083	7 earnings from the employer as an employee under Section
2084	2084	8 15-107.
2085	2085	9 With respect to transition pay paid by the University of
2086	2086	10 Illinois to a person who was a participating employee employed
2087	2087	11 in the fire department of the University of Illinois's
2088	2088	12 Champaign-Urbana campus immediately prior to the elimination
2089	2089	13 of that fire department:
2090	2090	14 (1) "Earnings" includes transition pay paid to the
2091	2091	15 employee on or after the effective date of this amendatory
2092	2092	16 Act of the 91st General Assembly.
2093	2093	17 (2) "Earnings" includes transition pay paid to the
2094	2094	18 employee before the effective date of this amendatory Act
2095	2095	19 of the 91st General Assembly only if (i) employee
2096	2096	20 contributions under Section 15-157 have been withheld from
2097	2097	21 that transition pay or (ii) the employee pays to the
2098	2098	22 System before January 1, 2001 an amount representing
2099	2099	23 employee contributions under Section 15-157 on that
2100	2100	24 transition pay. Employee contributions under item (ii) may
2101	2101	25 be paid in a lump sum, by withholding from additional
2102	2102	26 transition pay accruing before January 1, 2001, or in any
2103	2103
2104	2104
2105	2105
2106	2106
2107	2107
2108	2108	HB4873 - 58 - LRB103 35886 RPS 65971 b
2109	2109
2110	2110
2111	2111	HB4873- 59 -LRB103 35886 RPS 65971 b HB4873 - 59 - LRB103 35886 RPS 65971 b
2112	2112	HB4873 - 59 - LRB103 35886 RPS 65971 b
2113	2113	1 other manner approved by the System. Upon payment of the
2114	2114	2 employee contributions on transition pay, the
2115	2115	3 corresponding employer contributions become an obligation
2116	2116	4 of the State.
2117	2117	5 (b) For a Tier 2 member, the annual earnings shall not
2118	2118	6 exceed $106,800; however, except as provided in subsection
2119	2119	7 (b-5) and (b-10), that amount shall annually thereafter be
2120	2120	8 increased by the lesser of (i) 3% of that amount, including all
2121	2121	9 previous adjustments, or (ii) one half the annual unadjusted
2122	2122	10 percentage increase (but not less than zero) in the consumer
2123	2123	11 price index-u for the 12 months ending with the September
2124	2124	12 preceding each November 1, including all previous adjustments.
2125	2125	13 For the purposes of this Section, "consumer price index-u
2126	2126	14 index u" means the index published by the Bureau of Labor
2127	2127	15 Statistics of the United States Department of Labor that
2128	2128	16 measures the average change in prices of goods and services
2129	2129	17 purchased by all urban consumers, United States city average,
2130	2130	18 all items, 1982-84 = 100. The new amount resulting from each
2131	2131	19 annual adjustment shall be determined by the Public Pension
2132	2132	20 Division of the Department of Insurance and made available to
2133	2133	21 the boards of the retirement systems and pension funds by
2134	2134	22 November 1 of each year.
2135	2135	23 (b-5) Beginning January 1, 2026 and until January 1, 2029,
2136	2136	24 for a participant who first becomes a participant of this
2137	2137	25 System on or after January 1, 2011, the annual earnings may not
2138	2138	26 exceed the amount determined under subsection (b) plus the
2139	2139
2140	2140
2141	2141
2142	2142
2143	2143
2144	2144	HB4873 - 59 - LRB103 35886 RPS 65971 b
2145	2145
2146	2146
2147	2147	HB4873- 60 -LRB103 35886 RPS 65971 b HB4873 - 60 - LRB103 35886 RPS 65971 b
2148	2148	HB4873 - 60 - LRB103 35886 RPS 65971 b
2149	2149	1 earnings limitation adjustment for that year.
2150	2150	2 In this subsection, "earnings limitation adjustment" means
2151	2151	3 the product that results from multiplying (i) the difference
2152	2152	4 between the federal Social Security wage base for the coming
2153	2153	5 calendar year and the amount calculated under subsection (b)
2154	2154	6 for that calendar year by (ii) the smoothing factor for that
2155	2155	7 calendar year. The earnings limitation adjustment shall be
2156	2156	8 determined by the Public Pension Division of the Department of
2157	2157	9 Insurance and made available to the boards of the retirement
2158	2158	10 systems and pension funds by December 1 of each year. If the
2159	2159	11 difference between the federal Social Security wage base for
2160	2160	12 the coming calendar year and the amount calculated under
2161	2161	13 subsection (b) for that calendar year is zero or less than
2162	2162	14 zero, the earnings limitation adjustment shall be zero.
2163	2163	15 In this subsection, "smoothing factor" means:
2164	2164	16 (1) for calendar year 2026, 25%;
2165	2165	17 (2) for calendar year 2027, 50%; and
2166	2166	18 (3) for calendar year 2028, 75%.
2167	2167	19 In this subsection and subsection (b-10), "Social Security
2168	2168	20 wage base" means the contribution and benefit base calculated
2169	2169	21 for the calendar year in question by the Commissioner of
2170	2170	22 Social Security under Section 230 of the federal Social
2171	2171	23 Security Act (42 U.S.C. 430).
2172	2172	24 (b-10) Beginning January 1, 2029, the annual earnings may
2173	2173	25 not exceed the federal Social Security wage base then in
2174	2174	26 effect.
2175	2175
2176	2176
2177	2177
2178	2178
2179	2179
2180	2180	HB4873 - 60 - LRB103 35886 RPS 65971 b
2181	2181
2182	2182
2183	2183	HB4873- 61 -LRB103 35886 RPS 65971 b HB4873 - 61 - LRB103 35886 RPS 65971 b
2184	2184	HB4873 - 61 - LRB103 35886 RPS 65971 b
2185	2185	1 (c) With each submission of payroll information in the
2186	2186	2 manner prescribed by the System, the employer shall certify
2187	2187	3 that the payroll information is correct and complies with all
2188	2188	4 applicable State and federal laws.
2189	2189	5 (Source: P.A. 98-92, eff. 7-16-13; 99-897, eff. 1-1-17.)
2190	2190	6 (40 ILCS 5/18-125) (from Ch. 108 1/2, par. 18-125)
2191	2191	7 Sec. 18-125. Retirement annuity amount.
2192	2192	8 (a) The annual retirement annuity for a participant who
2193	2193	9 terminated service as a judge prior to July 1, 1971 shall be
2194	2194	10 based on the law in effect at the time of termination of
2195	2195	11 service.
2196	2196	12 (b) Except as provided in subsection (b-5), effective July
2197	2197	13 1, 1971, the retirement annuity for any participant in service
2198	2198	14 on or after such date shall be 3 1/2% of final average salary,
2199	2199	15 as defined in this Section, for each of the first 10 years of
2200	2200	16 service, and 5% of such final average salary for each year of
2201	2201	17 service in excess of 10.
2202	2202	18 For purposes of this Section, final average salary for a
2203	2203	19 participant who first serves as a judge before August 10, 2009
2204	2204	20 (the effective date of Public Act 96-207) shall be:
2205	2205	21 (1) the average salary for the last 4 years of
2206	2206	22 credited service as a judge for a participant who
2207	2207	23 terminates service before July 1, 1975.
2208	2208	24 (2) for a participant who terminates service after
2209	2209	25 June 30, 1975 and before July 1, 1982, the salary on the
2210	2210
2211	2211
2212	2212
2213	2213
2214	2214
2215	2215	HB4873 - 61 - LRB103 35886 RPS 65971 b
2216	2216
2217	2217
2218	2218	HB4873- 62 -LRB103 35886 RPS 65971 b HB4873 - 62 - LRB103 35886 RPS 65971 b
2219	2219	HB4873 - 62 - LRB103 35886 RPS 65971 b
2220	2220	1 last day of employment as a judge.
2221	2221	2 (3) for any participant who terminates service after
2222	2222	3 June 30, 1982 and before January 1, 1990, the average
2223	2223	4 salary for the final year of service as a judge.
2224	2224	5 (4) for a participant who terminates service on or
2225	2225	6 after January 1, 1990 but before July 14, 1995 (the
2226	2226	7 effective date of Public Act 89-136), the salary on the
2227	2227	8 last day of employment as a judge.
2228	2228	9 (5) for a participant who terminates service on or
2229	2229	10 after July 14, 1995 (the effective date of Public Act
2230	2230	11 89-136), the salary on the last day of employment as a
2231	2231	12 judge, or the highest salary received by the participant
2232	2232	13 for employment as a judge in a position held by the
2233	2233	14 participant for at least 4 consecutive years, whichever is
2234	2234	15 greater.
2235	2235	16 However, in the case of a participant who elects to
2236	2236	17 discontinue contributions as provided in subdivision (a)(2) of
2237	2237	18 Section 18-133, the time of such election shall be considered
2238	2238	19 the last day of employment in the determination of final
2239	2239	20 average salary under this subsection.
2240	2240	21 For a participant who first serves as a judge on or after
2241	2241	22 August 10, 2009 (the effective date of Public Act 96-207) and
2242	2242	23 before January 1, 2011 (the effective date of Public Act
2243	2243	24 96-889), final average salary shall be the average monthly
2244	2244	25 salary obtained by dividing the total salary of the
2245	2245	26 participant during the period of: (1) the 48 consecutive
2246	2246
2247	2247
2248	2248
2249	2249
2250	2250
2251	2251	HB4873 - 62 - LRB103 35886 RPS 65971 b
2252	2252
2253	2253
2254	2254	HB4873- 63 -LRB103 35886 RPS 65971 b HB4873 - 63 - LRB103 35886 RPS 65971 b
2255	2255	HB4873 - 63 - LRB103 35886 RPS 65971 b
2256	2256	1 months of service within the last 120 months of service in
2257	2257	2 which the total compensation was the highest, or (2) the total
2258	2258	3 period of service, if less than 48 months, by the number of
2259	2259	4 months of service in that period.
2260	2260	5 The maximum retirement annuity for any participant shall
2261	2261	6 be 85% of final average salary.
2262	2262	7 (b-5) Notwithstanding any other provision of this Article,
2263	2263	8 for a participant who first serves as a judge on or after
2264	2264	9 January 1, 2011 (the effective date of Public Act 96-889), the
2265	2265	10 annual retirement annuity is 3% of the participant's final
2266	2266	11 average salary for each year of service. The maximum
2267	2267	12 retirement annuity payable shall be 60% of the participant's
2268	2268	13 final average salary.
2269	2269	14 For a participant who first serves as a judge on or after
2270	2270	15 January 1, 2011 (the effective date of Public Act 96-889),
2271	2271	16 final average salary shall be the average monthly salary
2272	2272	17 obtained by dividing the total salary of the judge during the
2273	2273	18 96 consecutive months of service within the last 120 months of
2274	2274	19 service in which the total salary was the highest by the number
2275	2275	20 of months of service in that period; however, except as
2276	2276	21 provided in subsection (b-10) and (b-15), beginning January 1,
2277	2277	22 2011, the annual salary may not exceed $106,800, except that
2278	2278	23 that amount shall annually thereafter be increased by the
2279	2279	24 lesser of (i) 3% of that amount, including all previous
2280	2280	25 adjustments, or (ii) the annual unadjusted percentage increase
2281	2281	26 (but not less than zero) in the consumer price index-u for the
2282	2282
2283	2283
2284	2284
2285	2285
2286	2286
2287	2287	HB4873 - 63 - LRB103 35886 RPS 65971 b
2288	2288
2289	2289
2290	2290	HB4873- 64 -LRB103 35886 RPS 65971 b HB4873 - 64 - LRB103 35886 RPS 65971 b
2291	2291	HB4873 - 64 - LRB103 35886 RPS 65971 b
2292	2292	1 12 months ending with the September preceding each November 1.
2293	2293	2 "Consumer price index-u" means the index published by the
2294	2294	3 Bureau of Labor Statistics of the United States Department of
2295	2295	4 Labor that measures the average change in prices of goods and
2296	2296	5 services purchased by all urban consumers, United States city
2297	2297	6 average, all items, 1982-84 = 100. The new amount resulting
2298	2298	7 from each annual adjustment shall be determined by the Public
2299	2299	8 Pension Division of the Department of Insurance and made
2300	2300	9 available to the Board by November 1st of each year.
2301	2301	10 (b-10) Beginning January 1, 2026 and until January 1,
2302	2302	11 2029, for a participant who first serves as a judge on or after
2303	2303	12 January 1, 2011, the annual salary may not exceed the amount
2304	2304	13 determined under subsection (b-5) plus the earnings limitation
2305	2305	14 adjustment for that year.
2306	2306	15 In this subsection, "earnings limitation adjustment" means
2307	2307	16 the product that results from multiplying (i) the difference
2308	2308	17 between the federal Social Security wage base for the coming
2309	2309	18 calendar year and the amount calculated under subsection (b-5)
2310	2310	19 for that calendar year by (ii) the smoothing factor for that
2311	2311	20 calendar year. The earnings limitation adjustment shall be
2312	2312	21 determined by the Public Pension Division of the Department of
2313	2313	22 Insurance and made available to the boards of the retirement
2314	2314	23 systems and pension funds by December 1 of each year. If the
2315	2315	24 difference between the federal Social Security wage base for
2316	2316	25 the coming calendar year and the amount calculated under
2317	2317	26 subsection (b-5) for that calendar year is zero or less than
2318	2318
2319	2319
2320	2320
2321	2321
2322	2322
2323	2323	HB4873 - 64 - LRB103 35886 RPS 65971 b
2324	2324
2325	2325
2326	2326	HB4873- 65 -LRB103 35886 RPS 65971 b HB4873 - 65 - LRB103 35886 RPS 65971 b
2327	2327	HB4873 - 65 - LRB103 35886 RPS 65971 b
2328	2328	1 zero, the earnings limitation adjustment shall be zero.
2329	2329	2 In this subsection, "smoothing factor" means:
2330	2330	3 (1) for calendar year 2026, 25%;
2331	2331	4 (2) for calendar year 2027, 50%; and
2332	2332	5 (3) for calendar year 2028, 75%.
2333	2333	6 In this subsection and subsection (b-15), "Social Security
2334	2334	7 wage base" means the contribution and benefit base calculated
2335	2335	8 for the calendar year in question by the Commissioner of
2336	2336	9 Social Security under Section 230 of the federal Social
2337	2337	10 Security Act (42 U.S.C. 430).
2338	2338	11 (b-15) Beginning January 1, 2029, the annual salary may
2339	2339	12 not exceed the federal Social Security wage base then in
2340	2340	13 effect.
2341	2341	14 (c) The retirement annuity for a participant who retires
2342	2342	15 prior to age 60 with less than 28 years of service in the
2343	2343	16 System shall be reduced 1/2 of 1% for each month that the
2344	2344	17 participant's age is under 60 years at the time the annuity
2345	2345	18 commences. However, for a participant who retires on or after
2346	2346	19 December 10, 1999 (the effective date of Public Act 91-653),
2347	2347	20 the percentage reduction in retirement annuity imposed under
2348	2348	21 this subsection shall be reduced by 5/12 of 1% for every month
2349	2349	22 of service in this System in excess of 20 years, and therefore
2350	2350	23 a participant with at least 26 years of service in this System
2351	2351	24 may retire at age 55 without any reduction in annuity.
2352	2352	25 The reduction in retirement annuity imposed by this
2353	2353	26 subsection shall not apply in the case of retirement on
2354	2354
2355	2355
2356	2356
2357	2357
2358	2358
2359	2359	HB4873 - 65 - LRB103 35886 RPS 65971 b
2360	2360
2361	2361
2362	2362	HB4873- 66 -LRB103 35886 RPS 65971 b HB4873 - 66 - LRB103 35886 RPS 65971 b
2363	2363	HB4873 - 66 - LRB103 35886 RPS 65971 b
2364	2364	1 account of disability.
2365	2365	2 (d) Notwithstanding any other provision of this Article,
2366	2366	3 for a participant who first serves as a judge on or after
2367	2367	4 January 1, 2011 (the effective date of Public Act 96-889) and
2368	2368	5 who is retiring after attaining age 62, the retirement annuity
2369	2369	6 shall be reduced by 1/2 of 1% for each month that the
2370	2370	7 participant's age is under age 67 at the time the annuity
2371	2371	8 commences.
2372	2372	9 (Source: P.A. 100-201, eff. 8-18-17.)
2373	2373	10 (40 ILCS 5/18-128.01) (from Ch. 108 1/2, par. 18-128.01)
2374	2374	11 Sec. 18-128.01. Amount of survivor's annuity.
2375	2375	12 (a) Upon the death of an annuitant, his or her surviving
2376	2376	13 spouse shall be entitled to a survivor's annuity of 66 2/3% of
2377	2377	14 the annuity the annuitant was receiving immediately prior to
2378	2378	15 his or her death, inclusive of annual increases in the
2379	2379	16 retirement annuity to the date of death.
2380	2380	17 (b) Upon the death of an active participant, his or her
2381	2381	18 surviving spouse shall receive a survivor's annuity of 66 2/3%
2382	2382	19 of the annuity earned by the participant as of the date of his
2383	2383	20 or her death, determined without regard to whether the
2384	2384	21 participant had attained age 60 as of that time, or 7 1/2% of
2385	2385	22 the last salary of the decedent, whichever is greater.
2386	2386	23 (c) Upon the death of a participant who had terminated
2387	2387	24 service with at least 10 years of service, his or her surviving
2388	2388	25 spouse shall be entitled to a survivor's annuity of 66 2/3% of
2389	2389
2390	2390
2391	2391
2392	2392
2393	2393
2394	2394	HB4873 - 66 - LRB103 35886 RPS 65971 b
2395	2395
2396	2396
2397	2397	HB4873- 67 -LRB103 35886 RPS 65971 b HB4873 - 67 - LRB103 35886 RPS 65971 b
2398	2398	HB4873 - 67 - LRB103 35886 RPS 65971 b
2399	2399	1 the annuity earned by the deceased participant at the date of
2400	2400	2 death.
2401	2401	3 (d) Upon the death of an annuitant, active participant, or
2402	2402	4 participant who had terminated service with at least 10 years
2403	2403	5 of service, each surviving child under the age of 18 or
2404	2404	6 disabled as defined in Section 18-128 shall be entitled to a
2405	2405	7 child's annuity in an amount equal to 5% of the decedent's
2406	2406	8 final salary, not to exceed in total for all such children the
2407	2407	9 greater of 20% of the decedent's last salary or 66 2/3% of the
2408	2408	10 annuity received or earned by the decedent as provided under
2409	2409	11 subsections (a) and (b) of this Section. This child's annuity
2410	2410	12 shall be paid whether or not a survivor's annuity was elected
2411	2411	13 under Section 18-123.
2412	2412	14 (e) The changes made in the survivor's annuity provisions
2413	2413	15 by Public Act 82-306 shall apply to the survivors of a deceased
2414	2414	16 participant or annuitant whose death occurs on or after August
2415	2415	17 21, 1981.
2416	2416	18 (f) Beginning January 1, 1990, every survivor's annuity
2417	2417	19 shall be increased (1) on each January 1 occurring on or after
2418	2418	20 the commencement of the annuity if the deceased member died
2419	2419	21 while receiving a retirement annuity, or (2) in other cases,
2420	2420	22 on each January 1 occurring on or after the first anniversary
2421	2421	23 of the commencement of the annuity, by an amount equal to 3% of
2422	2422	24 the current amount of the annuity, including any previous
2423	2423	25 increases under this Article. Such increases shall apply
2424	2424	26 without regard to whether the deceased member was in service
2425	2425
2426	2426
2427	2427
2428	2428
2429	2429
2430	2430	HB4873 - 67 - LRB103 35886 RPS 65971 b
2431	2431
2432	2432
2433	2433	HB4873- 68 -LRB103 35886 RPS 65971 b HB4873 - 68 - LRB103 35886 RPS 65971 b
2434	2434	HB4873 - 68 - LRB103 35886 RPS 65971 b
2435	2435	1 on or after the effective date of this amendatory Act of 1991,
2436	2436	2 but shall not accrue for any period prior to January 1, 1990.
2437	2437	3 (g) Notwithstanding any other provision of this Article,
2438	2438	4 the initial survivor's annuity for a survivor of a participant
2439	2439	5 who first serves as a judge after January 1, 2011 (the
2440	2440	6 effective date of Public Act 96-889) shall be in the amount of
2441	2441	7 66 2/3% of the annuity received or earned by the decedent, and
2442	2442	8 shall be increased (1) on each January 1 occurring on or after
2443	2443	9 the commencement of the annuity if the deceased participant
2444	2444	10 died while receiving a retirement annuity, or (2) in other
2445	2445	11 cases, on each January 1 occurring on or after the first
2446	2446	12 anniversary of the commencement of the annuity, but in no
2447	2447	13 event prior to age 67, by an amount equal to 3% or the annual
2448	2448	14 unadjusted percentage increase in the consumer price index-u
2449	2449	15 as determined by the Public Pension Division of the Department
2450	2450	16 of Insurance under subsection (b-5) of Section 18-125,
2451	2451	17 whichever is less, of the survivor's annuity then being paid.
2452	2452	18 In this subsection, "consumer price index-u" means the
2453	2453	19 index published by the Bureau of Labor Statistics of the
2454	2454	20 United States Department of Labor that measures the average
2455	2455	21 change in prices of goods and services purchased by all urban
2456	2456	22 consumers, United States city average, all items, 1982-84 =
2457	2457	23 100. The new amount resulting from each annual adjustment
2458	2458	24 shall be determined by the Public Pension Division of the
2459	2459	25 Department of Insurance and made available to the Board by
2460	2460	26 November 1 of each year.
2461	2461
2462	2462
2463	2463
2464	2464
2465	2465
2466	2466	HB4873 - 68 - LRB103 35886 RPS 65971 b
2467	2467
2468	2468
2469	2469	HB4873- 69 -LRB103 35886 RPS 65971 b HB4873 - 69 - LRB103 35886 RPS 65971 b
2470	2470	HB4873 - 69 - LRB103 35886 RPS 65971 b
2471	2471	1 (Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11.)
2472	2472	2 Article 2.
2473	2473	3 Section 2-5. The Illinois Pension Code is amended by
2474	2474	4 changing Sections 1-160, 2-119.1, 15-136, and 18-125.1 as
2475	2475	5 follows:
2476	2476	6 (40 ILCS 5/1-160)
2477	2477	7 (Text of Section from P.A. 102-719)
2478	2478	8 Sec. 1-160. Provisions applicable to new hires.
2479	2479	9 (a) The provisions of this Section apply to a person who,
2480	2480	10 on or after January 1, 2011, first becomes a member or a
2481	2481	11 participant under any reciprocal retirement system or pension
2482	2482	12 fund established under this Code, other than a retirement
2483	2483	13 system or pension fund established under Article 2, 3, 4, 5, 6,
2484	2484	14 7, 15, or 18 of this Code, notwithstanding any other provision
2485	2485	15 of this Code to the contrary, but do not apply to any
2486	2486	16 self-managed plan established under this Code or to any
2487	2487	17 participant of the retirement plan established under Section
2488	2488	18 22-101; except that this Section applies to a person who
2489	2489	19 elected to establish alternative credits by electing in
2490	2490	20 writing after January 1, 2011, but before August 8, 2011,
2491	2491	21 under Section 7-145.1 of this Code. Notwithstanding anything
2492	2492	22 to the contrary in this Section, for purposes of this Section,
2493	2493	23 a person who is a Tier 1 regular employee as defined in Section
2494	2494
2495	2495
2496	2496
2497	2497
2498	2498
2499	2499	HB4873 - 69 - LRB103 35886 RPS 65971 b
2500	2500
2501	2501
2502	2502	HB4873- 70 -LRB103 35886 RPS 65971 b HB4873 - 70 - LRB103 35886 RPS 65971 b
2503	2503	HB4873 - 70 - LRB103 35886 RPS 65971 b
2504	2504	1 7-109.4 of this Code or who participated in a retirement
2505	2505	2 system under Article 15 prior to January 1, 2011 shall be
2506	2506	3 deemed a person who first became a member or participant prior
2507	2507	4 to January 1, 2011 under any retirement system or pension fund
2508	2508	5 subject to this Section. The changes made to this Section by
2509	2509	6 Public Act 98-596 are a clarification of existing law and are
2510	2510	7 intended to be retroactive to January 1, 2011 (the effective
2511	2511	8 date of Public Act 96-889), notwithstanding the provisions of
2512	2512	9 Section 1-103.1 of this Code.
2513	2513	10 This Section does not apply to a person who first becomes a
2514	2514	11 noncovered employee under Article 14 on or after the
2515	2515	12 implementation date of the plan created under Section 1-161
2516	2516	13 for that Article, unless that person elects under subsection
2517	2517	14 (b) of Section 1-161 to instead receive the benefits provided
2518	2518	15 under this Section and the applicable provisions of that
2519	2519	16 Article.
2520	2520	17 This Section does not apply to a person who first becomes a
2521	2521	18 member or participant under Article 16 on or after the
2522	2522	19 implementation date of the plan created under Section 1-161
2523	2523	20 for that Article, unless that person elects under subsection
2524	2524	21 (b) of Section 1-161 to instead receive the benefits provided
2525	2525	22 under this Section and the applicable provisions of that
2526	2526	23 Article.
2527	2527	24 This Section does not apply to a person who elects under
2528	2528	25 subsection (c-5) of Section 1-161 to receive the benefits
2529	2529	26 under Section 1-161.
2530	2530
2531	2531
2532	2532
2533	2533
2534	2534
2535	2535	HB4873 - 70 - LRB103 35886 RPS 65971 b
2536	2536
2537	2537
2538	2538	HB4873- 71 -LRB103 35886 RPS 65971 b HB4873 - 71 - LRB103 35886 RPS 65971 b
2539	2539	HB4873 - 71 - LRB103 35886 RPS 65971 b
2540	2540	1 This Section does not apply to a person who first becomes a
2541	2541	2 member or participant of an affected pension fund on or after 6
2542	2542	3 months after the resolution or ordinance date, as defined in
2543	2543	4 Section 1-162, unless that person elects under subsection (c)
2544	2544	5 of Section 1-162 to receive the benefits provided under this
2545	2545	6 Section and the applicable provisions of the Article under
2546	2546	7 which he or she is a member or participant.
2547	2547	8 (b) "Final average salary" means, except as otherwise
2548	2548	9 provided in this subsection, the average monthly (or annual)
2549	2549	10 salary obtained by dividing the total salary or earnings
2550	2550	11 calculated under the Article applicable to the member or
2551	2551	12 participant during the 96 consecutive months (or 8 consecutive
2552	2552	13 years) of service within the last 120 months (or 10 years) of
2553	2553	14 service in which the total salary or earnings calculated under
2554	2554	15 the applicable Article was the highest by the number of months
2555	2555	16 (or years) of service in that period. For the purposes of a
2556	2556	17 person who first becomes a member or participant of any
2557	2557	18 retirement system or pension fund to which this Section
2558	2558	19 applies on or after January 1, 2011, in this Code, "final
2559	2559	20 average salary" shall be substituted for the following:
2560	2560	21 (1) (Blank).
2561	2561	22 (2) In Articles 8, 9, 10, 11, and 12, "highest average
2562	2562	23 annual salary for any 4 consecutive years within the last
2563	2563	24 10 years of service immediately preceding the date of
2564	2564	25 withdrawal".
2565	2565	26 (3) In Article 13, "average final salary".
2566	2566
2567	2567
2568	2568
2569	2569
2570	2570
2571	2571	HB4873 - 71 - LRB103 35886 RPS 65971 b
2572	2572
2573	2573
2574	2574	HB4873- 72 -LRB103 35886 RPS 65971 b HB4873 - 72 - LRB103 35886 RPS 65971 b
2575	2575	HB4873 - 72 - LRB103 35886 RPS 65971 b
2576	2576	1 (4) In Article 14, "final average compensation".
2577	2577	2 (5) In Article 17, "average salary".
2578	2578	3 (6) In Section 22-207, "wages or salary received by
2579	2579	4 him at the date of retirement or discharge".
2580	2580	5 A member of the Teachers' Retirement System of the State
2581	2581	6 of Illinois who retires on or after June 1, 2021 and for whom
2582	2582	7 the 2020-2021 school year is used in the calculation of the
2583	2583	8 member's final average salary shall use the higher of the
2584	2584	9 following for the purpose of determining the member's final
2585	2585	10 average salary:
2586	2586	11 (A) the amount otherwise calculated under the first
2587	2587	12 paragraph of this subsection; or
2588	2588	13 (B) an amount calculated by the Teachers' Retirement
2589	2589	14 System of the State of Illinois using the average of the
2590	2590	15 monthly (or annual) salary obtained by dividing the total
2591	2591	16 salary or earnings calculated under Article 16 applicable
2592	2592	17 to the member or participant during the 96 months (or 8
2593	2593	18 years) of service within the last 120 months (or 10 years)
2594	2594	19 of service in which the total salary or earnings
2595	2595	20 calculated under the Article was the highest by the number
2596	2596	21 of months (or years) of service in that period.
2597	2597	22 (b-5) Beginning on January 1, 2011, for all purposes under
2598	2598	23 this Code (including without limitation the calculation of
2599	2599	24 benefits and employee contributions), the annual earnings,
2600	2600	25 salary, or wages (based on the plan year) of a member or
2601	2601	26 participant to whom this Section applies shall not exceed
2602	2602
2603	2603
2604	2604
2605	2605
2606	2606
2607	2607	HB4873 - 72 - LRB103 35886 RPS 65971 b
2608	2608
2609	2609
2610	2610	HB4873- 73 -LRB103 35886 RPS 65971 b HB4873 - 73 - LRB103 35886 RPS 65971 b
2611	2611	HB4873 - 73 - LRB103 35886 RPS 65971 b
2612	2612	1 $106,800; however, that amount shall annually thereafter be
2613	2613	2 increased by the lesser of (i) 3% of that amount, including all
2614	2614	3 previous adjustments, or (ii) one-half the annual unadjusted
2615	2615	4 percentage increase (but not less than zero) in the consumer
2616	2616	5 price index-u for the 12 months ending with the September
2617	2617	6 preceding each November 1, including all previous adjustments.
2618	2618	7 For the purposes of this Section, "consumer price index-u"
2619	2619	8 means the index published by the Bureau of Labor Statistics of
2620	2620	9 the United States Department of Labor that measures the
2621	2621	10 average change in prices of goods and services purchased by
2622	2622	11 all urban consumers, United States city average, all items,
2623	2623	12 1982-84 = 100. The new amount resulting from each annual
2624	2624	13 adjustment shall be determined by the Public Pension Division
2625	2625	14 of the Department of Insurance and made available to the
2626	2626	15 boards of the retirement systems and pension funds by November
2627	2627	16 1 of each year.
2628	2628	17 (b-10) Beginning on January 1, 2024, for all purposes
2629	2629	18 under this Code (including, without limitation, the
2630	2630	19 calculation of benefits and employee contributions), the
2631	2631	20 annual earnings, salary, or wages (based on the plan year) of a
2632	2632	21 member or participant under Article 9 to whom this Section
2633	2633	22 applies shall include an annual earnings, salary, or wage cap
2634	2634	23 that tracks the Social Security wage base. Maximum annual
2635	2635	24 earnings, wages, or salary shall be the annual contribution
2636	2636	25 and benefit base established for the applicable year by the
2637	2637	26 Commissioner of the Social Security Administration under the
2638	2638
2639	2639
2640	2640
2641	2641
2642	2642
2643	2643	HB4873 - 73 - LRB103 35886 RPS 65971 b
2644	2644
2645	2645
2646	2646	HB4873- 74 -LRB103 35886 RPS 65971 b HB4873 - 74 - LRB103 35886 RPS 65971 b
2647	2647	HB4873 - 74 - LRB103 35886 RPS 65971 b
2648	2648	1 federal Social Security Act.
2649	2649	2 However, in no event shall the annual earnings, salary, or
2650	2650	3 wages for the purposes of this Article and Article 9 exceed any
2651	2651	4 limitation imposed on annual earnings, salary, or wages under
2652	2652	5 Section 1-117. Under no circumstances shall the maximum amount
2653	2653	6 of annual earnings, salary, or wages be greater than the
2654	2654	7 amount set forth in this subsection (b-10) as a result of
2655	2655	8 reciprocal service or any provisions regarding reciprocal
2656	2656	9 services, nor shall the Fund under Article 9 be required to pay
2657	2657	10 any refund as a result of the application of this maximum
2658	2658	11 annual earnings, salary, and wage cap.
2659	2659	12 Nothing in this subsection (b-10) shall cause or otherwise
2660	2660	13 result in any retroactive adjustment of any employee
2661	2661	14 contributions. Nothing in this subsection (b-10) shall cause
2662	2662	15 or otherwise result in any retroactive adjustment of
2663	2663	16 disability or other payments made between January 1, 2011 and
2664	2664	17 January 1, 2024.
2665	2665	18 (c) A member or participant is entitled to a retirement
2666	2666	19 annuity upon written application if he or she has attained age
2667	2667	20 67 (age 65, with respect to service under Article 12 that is
2668	2668	21 subject to this Section, for a member or participant under
2669	2669	22 Article 12 who first becomes a member or participant under
2670	2670	23 Article 12 on or after January 1, 2022 or who makes the
2671	2671	24 election under item (i) of subsection (d-15) of this Section)
2672	2672	25 and has at least 10 years of service credit and is otherwise
2673	2673	26 eligible under the requirements of the applicable Article.
2674	2674
2675	2675
2676	2676
2677	2677
2678	2678
2679	2679	HB4873 - 74 - LRB103 35886 RPS 65971 b
2680	2680
2681	2681
2682	2682	HB4873- 75 -LRB103 35886 RPS 65971 b HB4873 - 75 - LRB103 35886 RPS 65971 b
2683	2683	HB4873 - 75 - LRB103 35886 RPS 65971 b
2684	2684	1 A member or participant who has attained age 62 (age 60,
2685	2685	2 with respect to service under Article 12 that is subject to
2686	2686	3 this Section, for a member or participant under Article 12 who
2687	2687	4 first becomes a member or participant under Article 12 on or
2688	2688	5 after January 1, 2022 or who makes the election under item (i)
2689	2689	6 of subsection (d-15) of this Section) and has at least 10 years
2690	2690	7 of service credit and is otherwise eligible under the
2691	2691	8 requirements of the applicable Article may elect to receive
2692	2692	9 the lower retirement annuity provided in subsection (d) of
2693	2693	10 this Section.
2694	2694	11 (c-5) A person who first becomes a member or a participant
2695	2695	12 subject to this Section on or after July 6, 2017 (the effective
2696	2696	13 date of Public Act 100-23), notwithstanding any other
2697	2697	14 provision of this Code to the contrary, is entitled to a
2698	2698	15 retirement annuity under Article 8 or Article 11 upon written
2699	2699	16 application if he or she has attained age 65 and has at least
2700	2700	17 10 years of service credit and is otherwise eligible under the
2701	2701	18 requirements of Article 8 or Article 11 of this Code,
2702	2702	19 whichever is applicable.
2703	2703	20 (d) The retirement annuity of a member or participant who
2704	2704	21 is retiring after attaining age 62 (age 60, with respect to
2705	2705	22 service under Article 12 that is subject to this Section, for a
2706	2706	23 member or participant under Article 12 who first becomes a
2707	2707	24 member or participant under Article 12 on or after January 1,
2708	2708	25 2022 or who makes the election under item (i) of subsection
2709	2709	26 (d-15) of this Section) with at least 10 years of service
2710	2710
2711	2711
2712	2712
2713	2713
2714	2714
2715	2715	HB4873 - 75 - LRB103 35886 RPS 65971 b
2716	2716
2717	2717
2718	2718	HB4873- 76 -LRB103 35886 RPS 65971 b HB4873 - 76 - LRB103 35886 RPS 65971 b
2719	2719	HB4873 - 76 - LRB103 35886 RPS 65971 b
2720	2720	1 credit shall be reduced by one-half of 1% for each full month
2721	2721	2 that the member's age is under age 67 (age 65, with respect to
2722	2722	3 service under Article 12 that is subject to this Section, for a
2723	2723	4 member or participant under Article 12 who first becomes a
2724	2724	5 member or participant under Article 12 on or after January 1,
2725	2725	6 2022 or who makes the election under item (i) of subsection
2726	2726	7 (d-15) of this Section).
2727	2727	8 (d-5) The retirement annuity payable under Article 8 or
2728	2728	9 Article 11 to an eligible person subject to subsection (c-5)
2729	2729	10 of this Section who is retiring at age 60 with at least 10
2730	2730	11 years of service credit shall be reduced by one-half of 1% for
2731	2731	12 each full month that the member's age is under age 65.
2732	2732	13 (d-10) Each person who first became a member or
2733	2733	14 participant under Article 8 or Article 11 of this Code on or
2734	2734	15 after January 1, 2011 and prior to July 6, 2017 (the effective
2735	2735	16 date of Public Act 100-23) shall make an irrevocable election
2736	2736	17 either:
2737	2737	18 (i) to be eligible for the reduced retirement age
2738	2738	19 provided in subsections (c-5) and (d-5) of this Section,
2739	2739	20 the eligibility for which is conditioned upon the member
2740	2740	21 or participant agreeing to the increases in employee
2741	2741	22 contributions for age and service annuities provided in
2742	2742	23 subsection (a-5) of Section 8-174 of this Code (for
2743	2743	24 service under Article 8) or subsection (a-5) of Section
2744	2744	25 11-170 of this Code (for service under Article 11); or
2745	2745	26 (ii) to not agree to item (i) of this subsection
2746	2746
2747	2747
2748	2748
2749	2749
2750	2750
2751	2751	HB4873 - 76 - LRB103 35886 RPS 65971 b
2752	2752
2753	2753
2754	2754	HB4873- 77 -LRB103 35886 RPS 65971 b HB4873 - 77 - LRB103 35886 RPS 65971 b
2755	2755	HB4873 - 77 - LRB103 35886 RPS 65971 b
2756	2756	1 (d-10), in which case the member or participant shall
2757	2757	2 continue to be subject to the retirement age provisions in
2758	2758	3 subsections (c) and (d) of this Section and the employee
2759	2759	4 contributions for age and service annuity as provided in
2760	2760	5 subsection (a) of Section 8-174 of this Code (for service
2761	2761	6 under Article 8) or subsection (a) of Section 11-170 of
2762	2762	7 this Code (for service under Article 11).
2763	2763	8 The election provided for in this subsection shall be made
2764	2764	9 between October 1, 2017 and November 15, 2017. A person
2765	2765	10 subject to this subsection who makes the required election
2766	2766	11 shall remain bound by that election. A person subject to this
2767	2767	12 subsection who fails for any reason to make the required
2768	2768	13 election within the time specified in this subsection shall be
2769	2769	14 deemed to have made the election under item (ii).
2770	2770	15 (d-15) Each person who first becomes a member or
2771	2771	16 participant under Article 12 on or after January 1, 2011 and
2772	2772	17 prior to January 1, 2022 shall make an irrevocable election
2773	2773	18 either:
2774	2774	19 (i) to be eligible for the reduced retirement age
2775	2775	20 specified in subsections (c) and (d) of this Section, the
2776	2776	21 eligibility for which is conditioned upon the member or
2777	2777	22 participant agreeing to the increase in employee
2778	2778	23 contributions for service annuities specified in
2779	2779	24 subsection (b) of Section 12-150; or
2780	2780	25 (ii) to not agree to item (i) of this subsection
2781	2781	26 (d-15), in which case the member or participant shall not
2782	2782
2783	2783
2784	2784
2785	2785
2786	2786
2787	2787	HB4873 - 77 - LRB103 35886 RPS 65971 b
2788	2788
2789	2789
2790	2790	HB4873- 78 -LRB103 35886 RPS 65971 b HB4873 - 78 - LRB103 35886 RPS 65971 b
2791	2791	HB4873 - 78 - LRB103 35886 RPS 65971 b
2792	2792	1 be eligible for the reduced retirement age specified in
2793	2793	2 subsections (c) and (d) of this Section and shall not be
2794	2794	3 subject to the increase in employee contributions for
2795	2795	4 service annuities specified in subsection (b) of Section
2796	2796	5 12-150.
2797	2797	6 The election provided for in this subsection shall be made
2798	2798	7 between January 1, 2022 and April 1, 2022. A person subject to
2799	2799	8 this subsection who makes the required election shall remain
2800	2800	9 bound by that election. A person subject to this subsection
2801	2801	10 who fails for any reason to make the required election within
2802	2802	11 the time specified in this subsection shall be deemed to have
2803	2803	12 made the election under item (ii).
2804	2804	13 (e) Except as otherwise provided in this subsection, any
2805	2805	14 Any retirement annuity or supplemental annuity shall be
2806	2806	15 subject to annual increases on the January 1 occurring either
2807	2807	16 on or after the attainment of age 67 (age 65, with respect to
2808	2808	17 service under Article 12 that is subject to this Section, for a
2809	2809	18 member or participant under Article 12 who first becomes a
2810	2810	19 member or participant under Article 12 on or after January 1,
2811	2811	20 2022 or who makes the election under item (i) of subsection
2812	2812	21 (d-15); and beginning on July 6, 2017 (the effective date of
2813	2813	22 Public Act 100-23), age 65 with respect to service under
2814	2814	23 Article 8 or Article 11 for eligible persons who: (i) are
2815	2815	24 subject to subsection (c-5) of this Section; or (ii) made the
2816	2816	25 election under item (i) of subsection (d-10) of this Section)
2817	2817	26 or the first anniversary of the annuity start date, whichever
2818	2818
2819	2819
2820	2820
2821	2821
2822	2822
2823	2823	HB4873 - 78 - LRB103 35886 RPS 65971 b
2824	2824
2825	2825
2826	2826	HB4873- 79 -LRB103 35886 RPS 65971 b HB4873 - 79 - LRB103 35886 RPS 65971 b
2827	2827	HB4873 - 79 - LRB103 35886 RPS 65971 b
2828	2828	1 is later. Except as otherwise provided in this subsection,
2829	2829	2 each Each annual increase shall be calculated at 3% or
2830	2830	3 one-half the annual unadjusted percentage increase (but not
2831	2831	4 less than zero) in the consumer price index-u for the 12 months
2832	2832	5 ending with the September preceding each November 1, whichever
2833	2833	6 is less, of the originally granted retirement annuity. If the
2834	2834	7 annual unadjusted percentage change in the consumer price
2835	2835	8 index-u for the 12 months ending with the September preceding
2836	2836	9 each November 1 is zero or there is a decrease, then the
2837	2837	10 annuity shall not be increased.
2838	2838	11 Beginning January 1, 2026, any retirement annuity or
2839	2839	12 supplemental annuity of a member or participant under Article
2840	2840	13 14, 16, or 17 who is subject to this Section shall be subject
2841	2841	14 to annual increases on the January 1 occurring after the first
2842	2842	15 anniversary of the annuity start date. Each annual increase
2843	2843	16 for a member or participant of a retirement system or pension
2844	2844	17 fund established under Article 14, 16, or 17 who is subject to
2845	2845	18 this Section shall be calculated at 3% of the originally
2846	2846	19 granted retirement annuity.
2847	2847	20 For the purposes of Section 1-103.1 of this Code, the
2848	2848	21 changes made to this Section by this amendatory Act of the
2849	2849	22 103rd General Assembly are applicable without regard to
2850	2850	23 whether the employee was in active service on or after the
2851	2851	24 effective date of this amendatory Act of the 103rd General
2852	2852	25 Assembly.
2853	2853	26 For the purposes of Section 1-103.1 of this Code, the
2854	2854
2855	2855
2856	2856
2857	2857
2858	2858
2859	2859	HB4873 - 79 - LRB103 35886 RPS 65971 b
2860	2860
2861	2861
2862	2862	HB4873- 80 -LRB103 35886 RPS 65971 b HB4873 - 80 - LRB103 35886 RPS 65971 b
2863	2863	HB4873 - 80 - LRB103 35886 RPS 65971 b
2864	2864	1 changes made to this Section by Public Act 102-263 are
2865	2865	2 applicable without regard to whether the employee was in
2866	2866	3 active service on or after August 6, 2021 (the effective date
2867	2867	4 of Public Act 102-263).
2868	2868	5 For the purposes of Section 1-103.1 of this Code, the
2869	2869	6 changes made to this Section by Public Act 100-23 are
2870	2870	7 applicable without regard to whether the employee was in
2871	2871	8 active service on or after July 6, 2017 (the effective date of
2872	2872	9 Public Act 100-23).
2873	2873	10 (f) The initial survivor's or widow's annuity of an
2874	2874	11 otherwise eligible survivor or widow of a retired member or
2875	2875	12 participant who first became a member or participant on or
2876	2876	13 after January 1, 2011 shall be in the amount of 66 2/3% of the
2877	2877	14 retired member's or participant's retirement annuity at the
2878	2878	15 date of death. In the case of the death of a member or
2879	2879	16 participant who has not retired and who first became a member
2880	2880	17 or participant on or after January 1, 2011, eligibility for a
2881	2881	18 survivor's or widow's annuity shall be determined by the
2882	2882	19 applicable Article of this Code. The initial benefit shall be
2883	2883	20 66 2/3% of the earned annuity without a reduction due to age. A
2884	2884	21 child's annuity of an otherwise eligible child shall be in the
2885	2885	22 amount prescribed under each Article if applicable. Any
2886	2886	23 survivor's or widow's annuity shall be increased (1) on each
2887	2887	24 January 1 occurring on or after the commencement of the
2888	2888	25 annuity if the deceased member died while receiving a
2889	2889	26 retirement annuity or (2) in other cases, on each January 1
2890	2890
2891	2891
2892	2892
2893	2893
2894	2894
2895	2895	HB4873 - 80 - LRB103 35886 RPS 65971 b
2896	2896
2897	2897
2898	2898	HB4873- 81 -LRB103 35886 RPS 65971 b HB4873 - 81 - LRB103 35886 RPS 65971 b
2899	2899	HB4873 - 81 - LRB103 35886 RPS 65971 b
2900	2900	1 occurring after the first anniversary of the commencement of
2901	2901	2 the annuity. Each annual increase shall be calculated at 3% or
2902	2902	3 one-half the annual unadjusted percentage increase (but not
2903	2903	4 less than zero) in the consumer price index-u for the 12 months
2904	2904	5 ending with the September preceding each November 1, whichever
2905	2905	6 is less, of the originally granted survivor's annuity. If the
2906	2906	7 annual unadjusted percentage change in the consumer price
2907	2907	8 index-u for the 12 months ending with the September preceding
2908	2908	9 each November 1 is zero or there is a decrease, then the
2909	2909	10 annuity shall not be increased.
2910	2910	11 (g) The benefits in Section 14-110 apply if the person is a
2911	2911	12 fire fighter in the fire protection service of a department, a
2912	2912	13 security employee of the Department of Corrections or the
2913	2913	14 Department of Juvenile Justice, or a security employee of the
2914	2914	15 Department of Innovation and Technology, as those terms are
2915	2915	16 defined in subsection (b) and subsection (c) of Section
2916	2916	17 14-110. A person who meets the requirements of this Section is
2917	2917	18 entitled to an annuity calculated under the provisions of
2918	2918	19 Section 14-110, in lieu of the regular or minimum retirement
2919	2919	20 annuity, only if the person has withdrawn from service with
2920	2920	21 not less than 20 years of eligible creditable service and has
2921	2921	22 attained age 60, regardless of whether the attainment of age
2922	2922	23 60 occurs while the person is still in service.
2923	2923	24 (g-5) The benefits in Section 14-110 apply if the person
2924	2924	25 is a State policeman, investigator for the Secretary of State,
2925	2925	26 conservation police officer, investigator for the Department
2926	2926
2927	2927
2928	2928
2929	2929
2930	2930
2931	2931	HB4873 - 81 - LRB103 35886 RPS 65971 b
2932	2932
2933	2933
2934	2934	HB4873- 82 -LRB103 35886 RPS 65971 b HB4873 - 82 - LRB103 35886 RPS 65971 b
2935	2935	HB4873 - 82 - LRB103 35886 RPS 65971 b
2936	2936	1 of Revenue or the Illinois Gaming Board, investigator for the
2937	2937	2 Office of the Attorney General, Commerce Commission police
2938	2938	3 officer, or arson investigator, as those terms are defined in
2939	2939	4 subsection (b) and subsection (c) of Section 14-110. A person
2940	2940	5 who meets the requirements of this Section is entitled to an
2941	2941	6 annuity calculated under the provisions of Section 14-110, in
2942	2942	7 lieu of the regular or minimum retirement annuity, only if the
2943	2943	8 person has withdrawn from service with not less than 20 years
2944	2944	9 of eligible creditable service and has attained age 55,
2945	2945	10 regardless of whether the attainment of age 55 occurs while
2946	2946	11 the person is still in service.
2947	2947	12 (h) If a person who first becomes a member or a participant
2948	2948	13 of a retirement system or pension fund subject to this Section
2949	2949	14 on or after January 1, 2011 is receiving a retirement annuity
2950	2950	15 or retirement pension under that system or fund and becomes a
2951	2951	16 member or participant under any other system or fund created
2952	2952	17 by this Code and is employed on a full-time basis, except for
2953	2953	18 those members or participants exempted from the provisions of
2954	2954	19 this Section under subsection (a) of this Section, then the
2955	2955	20 person's retirement annuity or retirement pension under that
2956	2956	21 system or fund shall be suspended during that employment. Upon
2957	2957	22 termination of that employment, the person's retirement
2958	2958	23 annuity or retirement pension payments shall resume and be
2959	2959	24 recalculated if recalculation is provided for under the
2960	2960	25 applicable Article of this Code.
2961	2961	26 If a person who first becomes a member of a retirement
2962	2962
2963	2963
2964	2964
2965	2965
2966	2966
2967	2967	HB4873 - 82 - LRB103 35886 RPS 65971 b
2968	2968
2969	2969
2970	2970	HB4873- 83 -LRB103 35886 RPS 65971 b HB4873 - 83 - LRB103 35886 RPS 65971 b
2971	2971	HB4873 - 83 - LRB103 35886 RPS 65971 b
2972	2972	1 system or pension fund subject to this Section on or after
2973	2973	2 January 1, 2012 and is receiving a retirement annuity or
2974	2974	3 retirement pension under that system or fund and accepts on a
2975	2975	4 contractual basis a position to provide services to a
2976	2976	5 governmental entity from which he or she has retired, then
2977	2977	6 that person's annuity or retirement pension earned as an
2978	2978	7 active employee of the employer shall be suspended during that
2979	2979	8 contractual service. A person receiving an annuity or
2980	2980	9 retirement pension under this Code shall notify the pension
2981	2981	10 fund or retirement system from which he or she is receiving an
2982	2982	11 annuity or retirement pension, as well as his or her
2983	2983	12 contractual employer, of his or her retirement status before
2984	2984	13 accepting contractual employment. A person who fails to submit
2985	2985	14 such notification shall be guilty of a Class A misdemeanor and
2986	2986	15 required to pay a fine of $1,000. Upon termination of that
2987	2987	16 contractual employment, the person's retirement annuity or
2988	2988	17 retirement pension payments shall resume and, if appropriate,
2989	2989	18 be recalculated under the applicable provisions of this Code.
2990	2990	19 (i) (Blank).
2991	2991	20 (j) In the case of a conflict between the provisions of
2992	2992	21 this Section and any other provision of this Code, the
2993	2993	22 provisions of this Section shall control.
2994	2994	23 (Source: P.A. 101-610, eff. 1-1-20; 102-16, eff. 6-17-21;
2995	2995	24 102-210, eff. 1-1-22; 102-263, eff. 8-6-21; 102-719, eff.
2996	2996	25 5-6-22.)
2997	2997
2998	2998
2999	2999
3000	3000
3001	3001
3002	3002	HB4873 - 83 - LRB103 35886 RPS 65971 b
3003	3003
3004	3004
3005	3005	HB4873- 84 -LRB103 35886 RPS 65971 b HB4873 - 84 - LRB103 35886 RPS 65971 b
3006	3006	HB4873 - 84 - LRB103 35886 RPS 65971 b
3007	3007	1 (Text of Section from P.A. 102-813)
3008	3008	2 Sec. 1-160. Provisions applicable to new hires.
3009	3009	3 (a) The provisions of this Section apply to a person who,
3010	3010	4 on or after January 1, 2011, first becomes a member or a
3011	3011	5 participant under any reciprocal retirement system or pension
3012	3012	6 fund established under this Code, other than a retirement
3013	3013	7 system or pension fund established under Article 2, 3, 4, 5, 6,
3014	3014	8 7, 15, or 18 of this Code, notwithstanding any other provision
3015	3015	9 of this Code to the contrary, but do not apply to any
3016	3016	10 self-managed plan established under this Code or to any
3017	3017	11 participant of the retirement plan established under Section
3018	3018	12 22-101; except that this Section applies to a person who
3019	3019	13 elected to establish alternative credits by electing in
3020	3020	14 writing after January 1, 2011, but before August 8, 2011,
3021	3021	15 under Section 7-145.1 of this Code. Notwithstanding anything
3022	3022	16 to the contrary in this Section, for purposes of this Section,
3023	3023	17 a person who is a Tier 1 regular employee as defined in Section
3024	3024	18 7-109.4 of this Code or who participated in a retirement
3025	3025	19 system under Article 15 prior to January 1, 2011 shall be
3026	3026	20 deemed a person who first became a member or participant prior
3027	3027	21 to January 1, 2011 under any retirement system or pension fund
3028	3028	22 subject to this Section. The changes made to this Section by
3029	3029	23 Public Act 98-596 are a clarification of existing law and are
3030	3030	24 intended to be retroactive to January 1, 2011 (the effective
3031	3031	25 date of Public Act 96-889), notwithstanding the provisions of
3032	3032	26 Section 1-103.1 of this Code.
3033	3033
3034	3034
3035	3035
3036	3036
3037	3037
3038	3038	HB4873 - 84 - LRB103 35886 RPS 65971 b
3039	3039
3040	3040
3041	3041	HB4873- 85 -LRB103 35886 RPS 65971 b HB4873 - 85 - LRB103 35886 RPS 65971 b
3042	3042	HB4873 - 85 - LRB103 35886 RPS 65971 b
3043	3043	1 This Section does not apply to a person who first becomes a
3044	3044	2 noncovered employee under Article 14 on or after the
3045	3045	3 implementation date of the plan created under Section 1-161
3046	3046	4 for that Article, unless that person elects under subsection
3047	3047	5 (b) of Section 1-161 to instead receive the benefits provided
3048	3048	6 under this Section and the applicable provisions of that
3049	3049	7 Article.
3050	3050	8 This Section does not apply to a person who first becomes a
3051	3051	9 member or participant under Article 16 on or after the
3052	3052	10 implementation date of the plan created under Section 1-161
3053	3053	11 for that Article, unless that person elects under subsection
3054	3054	12 (b) of Section 1-161 to instead receive the benefits provided
3055	3055	13 under this Section and the applicable provisions of that
3056	3056	14 Article.
3057	3057	15 This Section does not apply to a person who elects under
3058	3058	16 subsection (c-5) of Section 1-161 to receive the benefits
3059	3059	17 under Section 1-161.
3060	3060	18 This Section does not apply to a person who first becomes a
3061	3061	19 member or participant of an affected pension fund on or after 6
3062	3062	20 months after the resolution or ordinance date, as defined in
3063	3063	21 Section 1-162, unless that person elects under subsection (c)
3064	3064	22 of Section 1-162 to receive the benefits provided under this
3065	3065	23 Section and the applicable provisions of the Article under
3066	3066	24 which he or she is a member or participant.
3067	3067	25 (b) "Final average salary" means, except as otherwise
3068	3068	26 provided in this subsection, the average monthly (or annual)
3069	3069
3070	3070
3071	3071
3072	3072
3073	3073
3074	3074	HB4873 - 85 - LRB103 35886 RPS 65971 b
3075	3075
3076	3076
3077	3077	HB4873- 86 -LRB103 35886 RPS 65971 b HB4873 - 86 - LRB103 35886 RPS 65971 b
3078	3078	HB4873 - 86 - LRB103 35886 RPS 65971 b
3079	3079	1 salary obtained by dividing the total salary or earnings
3080	3080	2 calculated under the Article applicable to the member or
3081	3081	3 participant during the 96 consecutive months (or 8 consecutive
3082	3082	4 years) of service within the last 120 months (or 10 years) of
3083	3083	5 service in which the total salary or earnings calculated under
3084	3084	6 the applicable Article was the highest by the number of months
3085	3085	7 (or years) of service in that period. For the purposes of a
3086	3086	8 person who first becomes a member or participant of any
3087	3087	9 retirement system or pension fund to which this Section
3088	3088	10 applies on or after January 1, 2011, in this Code, "final
3089	3089	11 average salary" shall be substituted for the following:
3090	3090	12 (1) (Blank).
3091	3091	13 (2) In Articles 8, 9, 10, 11, and 12, "highest average
3092	3092	14 annual salary for any 4 consecutive years within the last
3093	3093	15 10 years of service immediately preceding the date of
3094	3094	16 withdrawal".
3095	3095	17 (3) In Article 13, "average final salary".
3096	3096	18 (4) In Article 14, "final average compensation".
3097	3097	19 (5) In Article 17, "average salary".
3098	3098	20 (6) In Section 22-207, "wages or salary received by
3099	3099	21 him at the date of retirement or discharge".
3100	3100	22 A member of the Teachers' Retirement System of the State
3101	3101	23 of Illinois who retires on or after June 1, 2021 and for whom
3102	3102	24 the 2020-2021 school year is used in the calculation of the
3103	3103	25 member's final average salary shall use the higher of the
3104	3104	26 following for the purpose of determining the member's final
3105	3105
3106	3106
3107	3107
3108	3108
3109	3109
3110	3110	HB4873 - 86 - LRB103 35886 RPS 65971 b
3111	3111
3112	3112
3113	3113	HB4873- 87 -LRB103 35886 RPS 65971 b HB4873 - 87 - LRB103 35886 RPS 65971 b
3114	3114	HB4873 - 87 - LRB103 35886 RPS 65971 b
3115	3115	1 average salary:
3116	3116	2 (A) the amount otherwise calculated under the first
3117	3117	3 paragraph of this subsection; or
3118	3118	4 (B) an amount calculated by the Teachers' Retirement
3119	3119	5 System of the State of Illinois using the average of the
3120	3120	6 monthly (or annual) salary obtained by dividing the total
3121	3121	7 salary or earnings calculated under Article 16 applicable
3122	3122	8 to the member or participant during the 96 months (or 8
3123	3123	9 years) of service within the last 120 months (or 10 years)
3124	3124	10 of service in which the total salary or earnings
3125	3125	11 calculated under the Article was the highest by the number
3126	3126	12 of months (or years) of service in that period.
3127	3127	13 (b-5) Beginning on January 1, 2011, for all purposes under
3128	3128	14 this Code (including without limitation the calculation of
3129	3129	15 benefits and employee contributions), the annual earnings,
3130	3130	16 salary, or wages (based on the plan year) of a member or
3131	3131	17 participant to whom this Section applies shall not exceed
3132	3132	18 $106,800; however, that amount shall annually thereafter be
3133	3133	19 increased by the lesser of (i) 3% of that amount, including all
3134	3134	20 previous adjustments, or (ii) one-half the annual unadjusted
3135	3135	21 percentage increase (but not less than zero) in the consumer
3136	3136	22 price index-u for the 12 months ending with the September
3137	3137	23 preceding each November 1, including all previous adjustments.
3138	3138	24 For the purposes of this Section, "consumer price index-u"
3139	3139	25 means the index published by the Bureau of Labor Statistics of
3140	3140	26 the United States Department of Labor that measures the
3141	3141
3142	3142
3143	3143
3144	3144
3145	3145
3146	3146	HB4873 - 87 - LRB103 35886 RPS 65971 b
3147	3147
3148	3148
3149	3149	HB4873- 88 -LRB103 35886 RPS 65971 b HB4873 - 88 - LRB103 35886 RPS 65971 b
3150	3150	HB4873 - 88 - LRB103 35886 RPS 65971 b
3151	3151	1 average change in prices of goods and services purchased by
3152	3152	2 all urban consumers, United States city average, all items,
3153	3153	3 1982-84 = 100. The new amount resulting from each annual
3154	3154	4 adjustment shall be determined by the Public Pension Division
3155	3155	5 of the Department of Insurance and made available to the
3156	3156	6 boards of the retirement systems and pension funds by November
3157	3157	7 1 of each year.
3158	3158	8 (b-10) Beginning on January 1, 2024, for all purposes
3159	3159	9 under this Code (including, without limitation, the
3160	3160	10 calculation of benefits and employee contributions), the
3161	3161	11 annual earnings, salary, or wages (based on the plan year) of a
3162	3162	12 member or participant under Article 9 to whom this Section
3163	3163	13 applies shall include an annual earnings, salary, or wage cap
3164	3164	14 that tracks the Social Security wage base. Maximum annual
3165	3165	15 earnings, wages, or salary shall be the annual contribution
3166	3166	16 and benefit base established for the applicable year by the
3167	3167	17 Commissioner of the Social Security Administration under the
3168	3168	18 federal Social Security Act.
3169	3169	19 However, in no event shall the annual earnings, salary, or
3170	3170	20 wages for the purposes of this Article and Article 9 exceed any
3171	3171	21 limitation imposed on annual earnings, salary, or wages under
3172	3172	22 Section 1-117. Under no circumstances shall the maximum amount
3173	3173	23 of annual earnings, salary, or wages be greater than the
3174	3174	24 amount set forth in this subsection (b-10) as a result of
3175	3175	25 reciprocal service or any provisions regarding reciprocal
3176	3176	26 services, nor shall the Fund under Article 9 be required to pay
3177	3177
3178	3178
3179	3179
3180	3180
3181	3181
3182	3182	HB4873 - 88 - LRB103 35886 RPS 65971 b
3183	3183
3184	3184
3185	3185	HB4873- 89 -LRB103 35886 RPS 65971 b HB4873 - 89 - LRB103 35886 RPS 65971 b
3186	3186	HB4873 - 89 - LRB103 35886 RPS 65971 b
3187	3187	1 any refund as a result of the application of this maximum
3188	3188	2 annual earnings, salary, and wage cap.
3189	3189	3 Nothing in this subsection (b-10) shall cause or otherwise
3190	3190	4 result in any retroactive adjustment of any employee
3191	3191	5 contributions. Nothing in this subsection (b-10) shall cause
3192	3192	6 or otherwise result in any retroactive adjustment of
3193	3193	7 disability or other payments made between January 1, 2011 and
3194	3194	8 January 1, 2024.
3195	3195	9 (c) A member or participant is entitled to a retirement
3196	3196	10 annuity upon written application if he or she has attained age
3197	3197	11 67 (age 65, with respect to service under Article 12 that is
3198	3198	12 subject to this Section, for a member or participant under
3199	3199	13 Article 12 who first becomes a member or participant under
3200	3200	14 Article 12 on or after January 1, 2022 or who makes the
3201	3201	15 election under item (i) of subsection (d-15) of this Section)
3202	3202	16 and has at least 10 years of service credit and is otherwise
3203	3203	17 eligible under the requirements of the applicable Article.
3204	3204	18 A member or participant who has attained age 62 (age 60,
3205	3205	19 with respect to service under Article 12 that is subject to
3206	3206	20 this Section, for a member or participant under Article 12 who
3207	3207	21 first becomes a member or participant under Article 12 on or
3208	3208	22 after January 1, 2022 or who makes the election under item (i)
3209	3209	23 of subsection (d-15) of this Section) and has at least 10 years
3210	3210	24 of service credit and is otherwise eligible under the
3211	3211	25 requirements of the applicable Article may elect to receive
3212	3212	26 the lower retirement annuity provided in subsection (d) of
3213	3213
3214	3214
3215	3215
3216	3216
3217	3217
3218	3218	HB4873 - 89 - LRB103 35886 RPS 65971 b
3219	3219
3220	3220
3221	3221	HB4873- 90 -LRB103 35886 RPS 65971 b HB4873 - 90 - LRB103 35886 RPS 65971 b
3222	3222	HB4873 - 90 - LRB103 35886 RPS 65971 b
3223	3223	1 this Section.
3224	3224	2 (c-5) A person who first becomes a member or a participant
3225	3225	3 subject to this Section on or after July 6, 2017 (the effective
3226	3226	4 date of Public Act 100-23), notwithstanding any other
3227	3227	5 provision of this Code to the contrary, is entitled to a
3228	3228	6 retirement annuity under Article 8 or Article 11 upon written
3229	3229	7 application if he or she has attained age 65 and has at least
3230	3230	8 10 years of service credit and is otherwise eligible under the
3231	3231	9 requirements of Article 8 or Article 11 of this Code,
3232	3232	10 whichever is applicable.
3233	3233	11 (d) The retirement annuity of a member or participant who
3234	3234	12 is retiring after attaining age 62 (age 60, with respect to
3235	3235	13 service under Article 12 that is subject to this Section, for a
3236	3236	14 member or participant under Article 12 who first becomes a
3237	3237	15 member or participant under Article 12 on or after January 1,
3238	3238	16 2022 or who makes the election under item (i) of subsection
3239	3239	17 (d-15) of this Section) with at least 10 years of service
3240	3240	18 credit shall be reduced by one-half of 1% for each full month
3241	3241	19 that the member's age is under age 67 (age 65, with respect to
3242	3242	20 service under Article 12 that is subject to this Section, for a
3243	3243	21 member or participant under Article 12 who first becomes a
3244	3244	22 member or participant under Article 12 on or after January 1,
3245	3245	23 2022 or who makes the election under item (i) of subsection
3246	3246	24 (d-15) of this Section).
3247	3247	25 (d-5) The retirement annuity payable under Article 8 or
3248	3248	26 Article 11 to an eligible person subject to subsection (c-5)
3249	3249
3250	3250
3251	3251
3252	3252
3253	3253
3254	3254	HB4873 - 90 - LRB103 35886 RPS 65971 b
3255	3255
3256	3256
3257	3257	HB4873- 91 -LRB103 35886 RPS 65971 b HB4873 - 91 - LRB103 35886 RPS 65971 b
3258	3258	HB4873 - 91 - LRB103 35886 RPS 65971 b
3259	3259	1 of this Section who is retiring at age 60 with at least 10
3260	3260	2 years of service credit shall be reduced by one-half of 1% for
3261	3261	3 each full month that the member's age is under age 65.
3262	3262	4 (d-10) Each person who first became a member or
3263	3263	5 participant under Article 8 or Article 11 of this Code on or
3264	3264	6 after January 1, 2011 and prior to July 6, 2017 (the effective
3265	3265	7 date of Public Act 100-23) shall make an irrevocable election
3266	3266	8 either:
3267	3267	9 (i) to be eligible for the reduced retirement age
3268	3268	10 provided in subsections (c-5) and (d-5) of this Section,
3269	3269	11 the eligibility for which is conditioned upon the member
3270	3270	12 or participant agreeing to the increases in employee
3271	3271	13 contributions for age and service annuities provided in
3272	3272	14 subsection (a-5) of Section 8-174 of this Code (for
3273	3273	15 service under Article 8) or subsection (a-5) of Section
3274	3274	16 11-170 of this Code (for service under Article 11); or
3275	3275	17 (ii) to not agree to item (i) of this subsection
3276	3276	18 (d-10), in which case the member or participant shall
3277	3277	19 continue to be subject to the retirement age provisions in
3278	3278	20 subsections (c) and (d) of this Section and the employee
3279	3279	21 contributions for age and service annuity as provided in
3280	3280	22 subsection (a) of Section 8-174 of this Code (for service
3281	3281	23 under Article 8) or subsection (a) of Section 11-170 of
3282	3282	24 this Code (for service under Article 11).
3283	3283	25 The election provided for in this subsection shall be made
3284	3284	26 between October 1, 2017 and November 15, 2017. A person
3285	3285
3286	3286
3287	3287
3288	3288
3289	3289
3290	3290	HB4873 - 91 - LRB103 35886 RPS 65971 b
3291	3291
3292	3292
3293	3293	HB4873- 92 -LRB103 35886 RPS 65971 b HB4873 - 92 - LRB103 35886 RPS 65971 b
3294	3294	HB4873 - 92 - LRB103 35886 RPS 65971 b
3295	3295	1 subject to this subsection who makes the required election
3296	3296	2 shall remain bound by that election. A person subject to this
3297	3297	3 subsection who fails for any reason to make the required
3298	3298	4 election within the time specified in this subsection shall be
3299	3299	5 deemed to have made the election under item (ii).
3300	3300	6 (d-15) Each person who first becomes a member or
3301	3301	7 participant under Article 12 on or after January 1, 2011 and
3302	3302	8 prior to January 1, 2022 shall make an irrevocable election
3303	3303	9 either:
3304	3304	10 (i) to be eligible for the reduced retirement age
3305	3305	11 specified in subsections (c) and (d) of this Section, the
3306	3306	12 eligibility for which is conditioned upon the member or
3307	3307	13 participant agreeing to the increase in employee
3308	3308	14 contributions for service annuities specified in
3309	3309	15 subsection (b) of Section 12-150; or
3310	3310	16 (ii) to not agree to item (i) of this subsection
3311	3311	17 (d-15), in which case the member or participant shall not
3312	3312	18 be eligible for the reduced retirement age specified in
3313	3313	19 subsections (c) and (d) of this Section and shall not be
3314	3314	20 subject to the increase in employee contributions for
3315	3315	21 service annuities specified in subsection (b) of Section
3316	3316	22 12-150.
3317	3317	23 The election provided for in this subsection shall be made
3318	3318	24 between January 1, 2022 and April 1, 2022. A person subject to
3319	3319	25 this subsection who makes the required election shall remain
3320	3320	26 bound by that election. A person subject to this subsection
3321	3321
3322	3322
3323	3323
3324	3324
3325	3325
3326	3326	HB4873 - 92 - LRB103 35886 RPS 65971 b
3327	3327
3328	3328
3329	3329	HB4873- 93 -LRB103 35886 RPS 65971 b HB4873 - 93 - LRB103 35886 RPS 65971 b
3330	3330	HB4873 - 93 - LRB103 35886 RPS 65971 b
3331	3331	1 who fails for any reason to make the required election within
3332	3332	2 the time specified in this subsection shall be deemed to have
3333	3333	3 made the election under item (ii).
3334	3334	4 (e) Except as otherwise provided in this subsection, any
3335	3335	5 Any retirement annuity or supplemental annuity shall be
3336	3336	6 subject to annual increases on the January 1 occurring either
3337	3337	7 on or after the attainment of age 67 (age 65, with respect to
3338	3338	8 service under Article 12 that is subject to this Section, for a
3339	3339	9 member or participant under Article 12 who first becomes a
3340	3340	10 member or participant under Article 12 on or after January 1,
3341	3341	11 2022 or who makes the election under item (i) of subsection
3342	3342	12 (d-15); and beginning on July 6, 2017 (the effective date of
3343	3343	13 Public Act 100-23), age 65 with respect to service under
3344	3344	14 Article 8 or Article 11 for eligible persons who: (i) are
3345	3345	15 subject to subsection (c-5) of this Section; or (ii) made the
3346	3346	16 election under item (i) of subsection (d-10) of this Section)
3347	3347	17 or the first anniversary of the annuity start date, whichever
3348	3348	18 is later. Except as otherwise provided in this subsection,
3349	3349	19 each Each annual increase shall be calculated at 3% or
3350	3350	20 one-half the annual unadjusted percentage increase (but not
3351	3351	21 less than zero) in the consumer price index-u for the 12 months
3352	3352	22 ending with the September preceding each November 1, whichever
3353	3353	23 is less, of the originally granted retirement annuity. If the
3354	3354	24 annual unadjusted percentage change in the consumer price
3355	3355	25 index-u for the 12 months ending with the September preceding
3356	3356	26 each November 1 is zero or there is a decrease, then the
3357	3357
3358	3358
3359	3359
3360	3360
3361	3361
3362	3362	HB4873 - 93 - LRB103 35886 RPS 65971 b
3363	3363
3364	3364
3365	3365	HB4873- 94 -LRB103 35886 RPS 65971 b HB4873 - 94 - LRB103 35886 RPS 65971 b
3366	3366	HB4873 - 94 - LRB103 35886 RPS 65971 b
3367	3367	1 annuity shall not be increased.
3368	3368	2 Beginning January 1, 2026, any retirement annuity or
3369	3369	3 supplemental annuity of a member or participant under Article
3370	3370	4 14, 16, or 17 who is subject to this Section shall be subject
3371	3371	5 to annual increases on the January 1 occurring after the first
3372	3372	6 anniversary of the annuity start date. Each annual increase
3373	3373	7 for a member or participant of a retirement system or pension
3374	3374	8 fund established under Article 14, 16, or 17 who is subject to
3375	3375	9 this Section shall be calculated at 3% of the originally
3376	3376	10 granted retirement annuity.
3377	3377	11 For the purposes of Section 1-103.1 of this Code, the
3378	3378	12 changes made to this Section by this amendatory Act of the
3379	3379	13 103rd General Assembly are applicable without regard to
3380	3380	14 whether the employee was in active service on or after the
3381	3381	15 effective date of this amendatory Act of the 103rd General
3382	3382	16 Assembly.
3383	3383	17 For the purposes of Section 1-103.1 of this Code, the
3384	3384	18 changes made to this Section by Public Act 102-263 are
3385	3385	19 applicable without regard to whether the employee was in
3386	3386	20 active service on or after August 6, 2021 (the effective date
3387	3387	21 of Public Act 102-263).
3388	3388	22 For the purposes of Section 1-103.1 of this Code, the
3389	3389	23 changes made to this Section by Public Act 100-23 are
3390	3390	24 applicable without regard to whether the employee was in
3391	3391	25 active service on or after July 6, 2017 (the effective date of
3392	3392	26 Public Act 100-23).
3393	3393
3394	3394
3395	3395
3396	3396
3397	3397
3398	3398	HB4873 - 94 - LRB103 35886 RPS 65971 b
3399	3399
3400	3400
3401	3401	HB4873- 95 -LRB103 35886 RPS 65971 b HB4873 - 95 - LRB103 35886 RPS 65971 b
3402	3402	HB4873 - 95 - LRB103 35886 RPS 65971 b
3403	3403	1 (f) The initial survivor's or widow's annuity of an
3404	3404	2 otherwise eligible survivor or widow of a retired member or
3405	3405	3 participant who first became a member or participant on or
3406	3406	4 after January 1, 2011 shall be in the amount of 66 2/3% of the
3407	3407	5 retired member's or participant's retirement annuity at the
3408	3408	6 date of death. In the case of the death of a member or
3409	3409	7 participant who has not retired and who first became a member
3410	3410	8 or participant on or after January 1, 2011, eligibility for a
3411	3411	9 survivor's or widow's annuity shall be determined by the
3412	3412	10 applicable Article of this Code. The initial benefit shall be
3413	3413	11 66 2/3% of the earned annuity without a reduction due to age. A
3414	3414	12 child's annuity of an otherwise eligible child shall be in the
3415	3415	13 amount prescribed under each Article if applicable. Any
3416	3416	14 survivor's or widow's annuity shall be increased (1) on each
3417	3417	15 January 1 occurring on or after the commencement of the
3418	3418	16 annuity if the deceased member died while receiving a
3419	3419	17 retirement annuity or (2) in other cases, on each January 1
3420	3420	18 occurring after the first anniversary of the commencement of
3421	3421	19 the annuity. Each annual increase shall be calculated at 3% or
3422	3422	20 one-half the annual unadjusted percentage increase (but not
3423	3423	21 less than zero) in the consumer price index-u for the 12 months
3424	3424	22 ending with the September preceding each November 1, whichever
3425	3425	23 is less, of the originally granted survivor's annuity. If the
3426	3426	24 annual unadjusted percentage change in the consumer price
3427	3427	25 index-u for the 12 months ending with the September preceding
3428	3428	26 each November 1 is zero or there is a decrease, then the
3429	3429
3430	3430
3431	3431
3432	3432
3433	3433
3434	3434	HB4873 - 95 - LRB103 35886 RPS 65971 b
3435	3435
3436	3436
3437	3437	HB4873- 96 -LRB103 35886 RPS 65971 b HB4873 - 96 - LRB103 35886 RPS 65971 b
3438	3438	HB4873 - 96 - LRB103 35886 RPS 65971 b
3439	3439	1 annuity shall not be increased.
3440	3440	2 (g) The benefits in Section 14-110 apply only if the
3441	3441	3 person is a State policeman, a fire fighter in the fire
3442	3442	4 protection service of a department, a conservation police
3443	3443	5 officer, an investigator for the Secretary of State, an arson
3444	3444	6 investigator, a Commerce Commission police officer,
3445	3445	7 investigator for the Department of Revenue or the Illinois
3446	3446	8 Gaming Board, a security employee of the Department of
3447	3447	9 Corrections or the Department of Juvenile Justice, or a
3448	3448	10 security employee of the Department of Innovation and
3449	3449	11 Technology, as those terms are defined in subsection (b) and
3450	3450	12 subsection (c) of Section 14-110. A person who meets the
3451	3451	13 requirements of this Section is entitled to an annuity
3452	3452	14 calculated under the provisions of Section 14-110, in lieu of
3453	3453	15 the regular or minimum retirement annuity, only if the person
3454	3454	16 has withdrawn from service with not less than 20 years of
3455	3455	17 eligible creditable service and has attained age 60,
3456	3456	18 regardless of whether the attainment of age 60 occurs while
3457	3457	19 the person is still in service.
3458	3458	20 (h) If a person who first becomes a member or a participant
3459	3459	21 of a retirement system or pension fund subject to this Section
3460	3460	22 on or after January 1, 2011 is receiving a retirement annuity
3461	3461	23 or retirement pension under that system or fund and becomes a
3462	3462	24 member or participant under any other system or fund created
3463	3463	25 by this Code and is employed on a full-time basis, except for
3464	3464	26 those members or participants exempted from the provisions of
3465	3465
3466	3466
3467	3467
3468	3468
3469	3469
3470	3470	HB4873 - 96 - LRB103 35886 RPS 65971 b
3471	3471
3472	3472
3473	3473	HB4873- 97 -LRB103 35886 RPS 65971 b HB4873 - 97 - LRB103 35886 RPS 65971 b
3474	3474	HB4873 - 97 - LRB103 35886 RPS 65971 b
3475	3475	1 this Section under subsection (a) of this Section, then the
3476	3476	2 person's retirement annuity or retirement pension under that
3477	3477	3 system or fund shall be suspended during that employment. Upon
3478	3478	4 termination of that employment, the person's retirement
3479	3479	5 annuity or retirement pension payments shall resume and be
3480	3480	6 recalculated if recalculation is provided for under the
3481	3481	7 applicable Article of this Code.
3482	3482	8 If a person who first becomes a member of a retirement
3483	3483	9 system or pension fund subject to this Section on or after
3484	3484	10 January 1, 2012 and is receiving a retirement annuity or
3485	3485	11 retirement pension under that system or fund and accepts on a
3486	3486	12 contractual basis a position to provide services to a
3487	3487	13 governmental entity from which he or she has retired, then
3488	3488	14 that person's annuity or retirement pension earned as an
3489	3489	15 active employee of the employer shall be suspended during that
3490	3490	16 contractual service. A person receiving an annuity or
3491	3491	17 retirement pension under this Code shall notify the pension
3492	3492	18 fund or retirement system from which he or she is receiving an
3493	3493	19 annuity or retirement pension, as well as his or her
3494	3494	20 contractual employer, of his or her retirement status before
3495	3495	21 accepting contractual employment. A person who fails to submit
3496	3496	22 such notification shall be guilty of a Class A misdemeanor and
3497	3497	23 required to pay a fine of $1,000. Upon termination of that
3498	3498	24 contractual employment, the person's retirement annuity or
3499	3499	25 retirement pension payments shall resume and, if appropriate,
3500	3500	26 be recalculated under the applicable provisions of this Code.
3501	3501
3502	3502
3503	3503
3504	3504
3505	3505
3506	3506	HB4873 - 97 - LRB103 35886 RPS 65971 b
3507	3507
3508	3508
3509	3509	HB4873- 98 -LRB103 35886 RPS 65971 b HB4873 - 98 - LRB103 35886 RPS 65971 b
3510	3510	HB4873 - 98 - LRB103 35886 RPS 65971 b
3511	3511	1 (i) (Blank).
3512	3512	2 (j) In the case of a conflict between the provisions of
3513	3513	3 this Section and any other provision of this Code, the
3514	3514	4 provisions of this Section shall control.
3515	3515	5 (Source: P.A. 101-610, eff. 1-1-20; 102-16, eff. 6-17-21;
3516	3516	6 102-210, eff. 1-1-22; 102-263, eff. 8-6-21; 102-813, eff.
3517	3517	7 5-13-22.)
3518	3518	8 (Text of Section from P.A. 102-956)
3519	3519	9 Sec. 1-160. Provisions applicable to new hires.
3520	3520	10 (a) The provisions of this Section apply to a person who,
3521	3521	11 on or after January 1, 2011, first becomes a member or a
3522	3522	12 participant under any reciprocal retirement system or pension
3523	3523	13 fund established under this Code, other than a retirement
3524	3524	14 system or pension fund established under Article 2, 3, 4, 5, 6,
3525	3525	15 7, 15, or 18 of this Code, notwithstanding any other provision
3526	3526	16 of this Code to the contrary, but do not apply to any
3527	3527	17 self-managed plan established under this Code or to any
3528	3528	18 participant of the retirement plan established under Section
3529	3529	19 22-101; except that this Section applies to a person who
3530	3530	20 elected to establish alternative credits by electing in
3531	3531	21 writing after January 1, 2011, but before August 8, 2011,
3532	3532	22 under Section 7-145.1 of this Code. Notwithstanding anything
3533	3533	23 to the contrary in this Section, for purposes of this Section,
3534	3534	24 a person who is a Tier 1 regular employee as defined in Section
3535	3535	25 7-109.4 of this Code or who participated in a retirement
3536	3536
3537	3537
3538	3538
3539	3539
3540	3540
3541	3541	HB4873 - 98 - LRB103 35886 RPS 65971 b
3542	3542
3543	3543
3544	3544	HB4873- 99 -LRB103 35886 RPS 65971 b HB4873 - 99 - LRB103 35886 RPS 65971 b
3545	3545	HB4873 - 99 - LRB103 35886 RPS 65971 b
3546	3546	1 system under Article 15 prior to January 1, 2011 shall be
3547	3547	2 deemed a person who first became a member or participant prior
3548	3548	3 to January 1, 2011 under any retirement system or pension fund
3549	3549	4 subject to this Section. The changes made to this Section by
3550	3550	5 Public Act 98-596 are a clarification of existing law and are
3551	3551	6 intended to be retroactive to January 1, 2011 (the effective
3552	3552	7 date of Public Act 96-889), notwithstanding the provisions of
3553	3553	8 Section 1-103.1 of this Code.
3554	3554	9 This Section does not apply to a person who first becomes a
3555	3555	10 noncovered employee under Article 14 on or after the
3556	3556	11 implementation date of the plan created under Section 1-161
3557	3557	12 for that Article, unless that person elects under subsection
3558	3558	13 (b) of Section 1-161 to instead receive the benefits provided
3559	3559	14 under this Section and the applicable provisions of that
3560	3560	15 Article.
3561	3561	16 This Section does not apply to a person who first becomes a
3562	3562	17 member or participant under Article 16 on or after the
3563	3563	18 implementation date of the plan created under Section 1-161
3564	3564	19 for that Article, unless that person elects under subsection
3565	3565	20 (b) of Section 1-161 to instead receive the benefits provided
3566	3566	21 under this Section and the applicable provisions of that
3567	3567	22 Article.
3568	3568	23 This Section does not apply to a person who elects under
3569	3569	24 subsection (c-5) of Section 1-161 to receive the benefits
3570	3570	25 under Section 1-161.
3571	3571	26 This Section does not apply to a person who first becomes a
3572	3572
3573	3573
3574	3574
3575	3575
3576	3576
3577	3577	HB4873 - 99 - LRB103 35886 RPS 65971 b
3578	3578
3579	3579
3580	3580	HB4873- 100 -LRB103 35886 RPS 65971 b HB4873 - 100 - LRB103 35886 RPS 65971 b
3581	3581	HB4873 - 100 - LRB103 35886 RPS 65971 b
3582	3582	1 member or participant of an affected pension fund on or after 6
3583	3583	2 months after the resolution or ordinance date, as defined in
3584	3584	3 Section 1-162, unless that person elects under subsection (c)
3585	3585	4 of Section 1-162 to receive the benefits provided under this
3586	3586	5 Section and the applicable provisions of the Article under
3587	3587	6 which he or she is a member or participant.
3588	3588	7 (b) "Final average salary" means, except as otherwise
3589	3589	8 provided in this subsection, the average monthly (or annual)
3590	3590	9 salary obtained by dividing the total salary or earnings
3591	3591	10 calculated under the Article applicable to the member or
3592	3592	11 participant during the 96 consecutive months (or 8 consecutive
3593	3593	12 years) of service within the last 120 months (or 10 years) of
3594	3594	13 service in which the total salary or earnings calculated under
3595	3595	14 the applicable Article was the highest by the number of months
3596	3596	15 (or years) of service in that period. For the purposes of a
3597	3597	16 person who first becomes a member or participant of any
3598	3598	17 retirement system or pension fund to which this Section
3599	3599	18 applies on or after January 1, 2011, in this Code, "final
3600	3600	19 average salary" shall be substituted for the following:
3601	3601	20 (1) (Blank).
3602	3602	21 (2) In Articles 8, 9, 10, 11, and 12, "highest average
3603	3603	22 annual salary for any 4 consecutive years within the last
3604	3604	23 10 years of service immediately preceding the date of
3605	3605	24 withdrawal".
3606	3606	25 (3) In Article 13, "average final salary".
3607	3607	26 (4) In Article 14, "final average compensation".
3608	3608
3609	3609
3610	3610
3611	3611
3612	3612
3613	3613	HB4873 - 100 - LRB103 35886 RPS 65971 b
3614	3614
3615	3615
3616	3616	HB4873- 101 -LRB103 35886 RPS 65971 b HB4873 - 101 - LRB103 35886 RPS 65971 b
3617	3617	HB4873 - 101 - LRB103 35886 RPS 65971 b
3618	3618	1 (5) In Article 17, "average salary".
3619	3619	2 (6) In Section 22-207, "wages or salary received by
3620	3620	3 him at the date of retirement or discharge".
3621	3621	4 A member of the Teachers' Retirement System of the State
3622	3622	5 of Illinois who retires on or after June 1, 2021 and for whom
3623	3623	6 the 2020-2021 school year is used in the calculation of the
3624	3624	7 member's final average salary shall use the higher of the
3625	3625	8 following for the purpose of determining the member's final
3626	3626	9 average salary:
3627	3627	10 (A) the amount otherwise calculated under the first
3628	3628	11 paragraph of this subsection; or
3629	3629	12 (B) an amount calculated by the Teachers' Retirement
3630	3630	13 System of the State of Illinois using the average of the
3631	3631	14 monthly (or annual) salary obtained by dividing the total
3632	3632	15 salary or earnings calculated under Article 16 applicable
3633	3633	16 to the member or participant during the 96 months (or 8
3634	3634	17 years) of service within the last 120 months (or 10 years)
3635	3635	18 of service in which the total salary or earnings
3636	3636	19 calculated under the Article was the highest by the number
3637	3637	20 of months (or years) of service in that period.
3638	3638	21 (b-5) Beginning on January 1, 2011, for all purposes under
3639	3639	22 this Code (including without limitation the calculation of
3640	3640	23 benefits and employee contributions), the annual earnings,
3641	3641	24 salary, or wages (based on the plan year) of a member or
3642	3642	25 participant to whom this Section applies shall not exceed
3643	3643	26 $106,800; however, that amount shall annually thereafter be
3644	3644
3645	3645
3646	3646
3647	3647
3648	3648
3649	3649	HB4873 - 101 - LRB103 35886 RPS 65971 b
3650	3650
3651	3651
3652	3652	HB4873- 102 -LRB103 35886 RPS 65971 b HB4873 - 102 - LRB103 35886 RPS 65971 b
3653	3653	HB4873 - 102 - LRB103 35886 RPS 65971 b
3654	3654	1 increased by the lesser of (i) 3% of that amount, including all
3655	3655	2 previous adjustments, or (ii) one-half the annual unadjusted
3656	3656	3 percentage increase (but not less than zero) in the consumer
3657	3657	4 price index-u for the 12 months ending with the September
3658	3658	5 preceding each November 1, including all previous adjustments.
3659	3659	6 For the purposes of this Section, "consumer price index-u"
3660	3660	7 means the index published by the Bureau of Labor Statistics of
3661	3661	8 the United States Department of Labor that measures the
3662	3662	9 average change in prices of goods and services purchased by
3663	3663	10 all urban consumers, United States city average, all items,
3664	3664	11 1982-84 = 100. The new amount resulting from each annual
3665	3665	12 adjustment shall be determined by the Public Pension Division
3666	3666	13 of the Department of Insurance and made available to the
3667	3667	14 boards of the retirement systems and pension funds by November
3668	3668	15 1 of each year.
3669	3669	16 (b-10) Beginning on January 1, 2024, for all purposes
3670	3670	17 under this Code (including, without limitation, the
3671	3671	18 calculation of benefits and employee contributions), the
3672	3672	19 annual earnings, salary, or wages (based on the plan year) of a
3673	3673	20 member or participant under Article 9 to whom this Section
3674	3674	21 applies shall include an annual earnings, salary, or wage cap
3675	3675	22 that tracks the Social Security wage base. Maximum annual
3676	3676	23 earnings, wages, or salary shall be the annual contribution
3677	3677	24 and benefit base established for the applicable year by the
3678	3678	25 Commissioner of the Social Security Administration under the
3679	3679	26 federal Social Security Act.
3680	3680
3681	3681
3682	3682
3683	3683
3684	3684
3685	3685	HB4873 - 102 - LRB103 35886 RPS 65971 b
3686	3686
3687	3687
3688	3688	HB4873- 103 -LRB103 35886 RPS 65971 b HB4873 - 103 - LRB103 35886 RPS 65971 b
3689	3689	HB4873 - 103 - LRB103 35886 RPS 65971 b
3690	3690	1 However, in no event shall the annual earnings, salary, or
3691	3691	2 wages for the purposes of this Article and Article 9 exceed any
3692	3692	3 limitation imposed on annual earnings, salary, or wages under
3693	3693	4 Section 1-117. Under no circumstances shall the maximum amount
3694	3694	5 of annual earnings, salary, or wages be greater than the
3695	3695	6 amount set forth in this subsection (b-10) as a result of
3696	3696	7 reciprocal service or any provisions regarding reciprocal
3697	3697	8 services, nor shall the Fund under Article 9 be required to pay
3698	3698	9 any refund as a result of the application of this maximum
3699	3699	10 annual earnings, salary, and wage cap.
3700	3700	11 Nothing in this subsection (b-10) shall cause or otherwise
3701	3701	12 result in any retroactive adjustment of any employee
3702	3702	13 contributions. Nothing in this subsection (b-10) shall cause
3703	3703	14 or otherwise result in any retroactive adjustment of
3704	3704	15 disability or other payments made between January 1, 2011 and
3705	3705	16 January 1, 2024.
3706	3706	17 (c) A member or participant is entitled to a retirement
3707	3707	18 annuity upon written application if he or she has attained age
3708	3708	19 67 (age 65, with respect to service under Article 12 that is
3709	3709	20 subject to this Section, for a member or participant under
3710	3710	21 Article 12 who first becomes a member or participant under
3711	3711	22 Article 12 on or after January 1, 2022 or who makes the
3712	3712	23 election under item (i) of subsection (d-15) of this Section)
3713	3713	24 and has at least 10 years of service credit and is otherwise
3714	3714	25 eligible under the requirements of the applicable Article.
3715	3715	26 A member or participant who has attained age 62 (age 60,
3716	3716
3717	3717
3718	3718
3719	3719
3720	3720
3721	3721	HB4873 - 103 - LRB103 35886 RPS 65971 b
3722	3722
3723	3723
3724	3724	HB4873- 104 -LRB103 35886 RPS 65971 b HB4873 - 104 - LRB103 35886 RPS 65971 b
3725	3725	HB4873 - 104 - LRB103 35886 RPS 65971 b
3726	3726	1 with respect to service under Article 12 that is subject to
3727	3727	2 this Section, for a member or participant under Article 12 who
3728	3728	3 first becomes a member or participant under Article 12 on or
3729	3729	4 after January 1, 2022 or who makes the election under item (i)
3730	3730	5 of subsection (d-15) of this Section) and has at least 10 years
3731	3731	6 of service credit and is otherwise eligible under the
3732	3732	7 requirements of the applicable Article may elect to receive
3733	3733	8 the lower retirement annuity provided in subsection (d) of
3734	3734	9 this Section.
3735	3735	10 (c-5) A person who first becomes a member or a participant
3736	3736	11 subject to this Section on or after July 6, 2017 (the effective
3737	3737	12 date of Public Act 100-23), notwithstanding any other
3738	3738	13 provision of this Code to the contrary, is entitled to a
3739	3739	14 retirement annuity under Article 8 or Article 11 upon written
3740	3740	15 application if he or she has attained age 65 and has at least
3741	3741	16 10 years of service credit and is otherwise eligible under the
3742	3742	17 requirements of Article 8 or Article 11 of this Code,
3743	3743	18 whichever is applicable.
3744	3744	19 (d) The retirement annuity of a member or participant who
3745	3745	20 is retiring after attaining age 62 (age 60, with respect to
3746	3746	21 service under Article 12 that is subject to this Section, for a
3747	3747	22 member or participant under Article 12 who first becomes a
3748	3748	23 member or participant under Article 12 on or after January 1,
3749	3749	24 2022 or who makes the election under item (i) of subsection
3750	3750	25 (d-15) of this Section) with at least 10 years of service
3751	3751	26 credit shall be reduced by one-half of 1% for each full month
3752	3752
3753	3753
3754	3754
3755	3755
3756	3756
3757	3757	HB4873 - 104 - LRB103 35886 RPS 65971 b
3758	3758
3759	3759
3760	3760	HB4873- 105 -LRB103 35886 RPS 65971 b HB4873 - 105 - LRB103 35886 RPS 65971 b
3761	3761	HB4873 - 105 - LRB103 35886 RPS 65971 b
3762	3762	1 that the member's age is under age 67 (age 65, with respect to
3763	3763	2 service under Article 12 that is subject to this Section, for a
3764	3764	3 member or participant under Article 12 who first becomes a
3765	3765	4 member or participant under Article 12 on or after January 1,
3766	3766	5 2022 or who makes the election under item (i) of subsection
3767	3767	6 (d-15) of this Section).
3768	3768	7 (d-5) The retirement annuity payable under Article 8 or
3769	3769	8 Article 11 to an eligible person subject to subsection (c-5)
3770	3770	9 of this Section who is retiring at age 60 with at least 10
3771	3771	10 years of service credit shall be reduced by one-half of 1% for
3772	3772	11 each full month that the member's age is under age 65.
3773	3773	12 (d-10) Each person who first became a member or
3774	3774	13 participant under Article 8 or Article 11 of this Code on or
3775	3775	14 after January 1, 2011 and prior to July 6, 2017 (the effective
3776	3776	15 date of Public Act 100-23) shall make an irrevocable election
3777	3777	16 either:
3778	3778	17 (i) to be eligible for the reduced retirement age
3779	3779	18 provided in subsections (c-5) and (d-5) of this Section,
3780	3780	19 the eligibility for which is conditioned upon the member
3781	3781	20 or participant agreeing to the increases in employee
3782	3782	21 contributions for age and service annuities provided in
3783	3783	22 subsection (a-5) of Section 8-174 of this Code (for
3784	3784	23 service under Article 8) or subsection (a-5) of Section
3785	3785	24 11-170 of this Code (for service under Article 11); or
3786	3786	25 (ii) to not agree to item (i) of this subsection
3787	3787	26 (d-10), in which case the member or participant shall
3788	3788
3789	3789
3790	3790
3791	3791
3792	3792
3793	3793	HB4873 - 105 - LRB103 35886 RPS 65971 b
3794	3794
3795	3795
3796	3796	HB4873- 106 -LRB103 35886 RPS 65971 b HB4873 - 106 - LRB103 35886 RPS 65971 b
3797	3797	HB4873 - 106 - LRB103 35886 RPS 65971 b
3798	3798	1 continue to be subject to the retirement age provisions in
3799	3799	2 subsections (c) and (d) of this Section and the employee
3800	3800	3 contributions for age and service annuity as provided in
3801	3801	4 subsection (a) of Section 8-174 of this Code (for service
3802	3802	5 under Article 8) or subsection (a) of Section 11-170 of
3803	3803	6 this Code (for service under Article 11).
3804	3804	7 The election provided for in this subsection shall be made
3805	3805	8 between October 1, 2017 and November 15, 2017. A person
3806	3806	9 subject to this subsection who makes the required election
3807	3807	10 shall remain bound by that election. A person subject to this
3808	3808	11 subsection who fails for any reason to make the required
3809	3809	12 election within the time specified in this subsection shall be
3810	3810	13 deemed to have made the election under item (ii).
3811	3811	14 (d-15) Each person who first becomes a member or
3812	3812	15 participant under Article 12 on or after January 1, 2011 and
3813	3813	16 prior to January 1, 2022 shall make an irrevocable election
3814	3814	17 either:
3815	3815	18 (i) to be eligible for the reduced retirement age
3816	3816	19 specified in subsections (c) and (d) of this Section, the
3817	3817	20 eligibility for which is conditioned upon the member or
3818	3818	21 participant agreeing to the increase in employee
3819	3819	22 contributions for service annuities specified in
3820	3820	23 subsection (b) of Section 12-150; or
3821	3821	24 (ii) to not agree to item (i) of this subsection
3822	3822	25 (d-15), in which case the member or participant shall not
3823	3823	26 be eligible for the reduced retirement age specified in
3824	3824
3825	3825
3826	3826
3827	3827
3828	3828
3829	3829	HB4873 - 106 - LRB103 35886 RPS 65971 b
3830	3830
3831	3831
3832	3832	HB4873- 107 -LRB103 35886 RPS 65971 b HB4873 - 107 - LRB103 35886 RPS 65971 b
3833	3833	HB4873 - 107 - LRB103 35886 RPS 65971 b
3834	3834	1 subsections (c) and (d) of this Section and shall not be
3835	3835	2 subject to the increase in employee contributions for
3836	3836	3 service annuities specified in subsection (b) of Section
3837	3837	4 12-150.
3838	3838	5 The election provided for in this subsection shall be made
3839	3839	6 between January 1, 2022 and April 1, 2022. A person subject to
3840	3840	7 this subsection who makes the required election shall remain
3841	3841	8 bound by that election. A person subject to this subsection
3842	3842	9 who fails for any reason to make the required election within
3843	3843	10 the time specified in this subsection shall be deemed to have
3844	3844	11 made the election under item (ii).
3845	3845	12 (e) Except as otherwise provided in this subsection, any
3846	3846	13 Any retirement annuity or supplemental annuity shall be
3847	3847	14 subject to annual increases on the January 1 occurring either
3848	3848	15 on or after the attainment of age 67 (age 65, with respect to
3849	3849	16 service under Article 12 that is subject to this Section, for a
3850	3850	17 member or participant under Article 12 who first becomes a
3851	3851	18 member or participant under Article 12 on or after January 1,
3852	3852	19 2022 or who makes the election under item (i) of subsection
3853	3853	20 (d-15); and beginning on July 6, 2017 (the effective date of
3854	3854	21 Public Act 100-23), age 65 with respect to service under
3855	3855	22 Article 8 or Article 11 for eligible persons who: (i) are
3856	3856	23 subject to subsection (c-5) of this Section; or (ii) made the
3857	3857	24 election under item (i) of subsection (d-10) of this Section)
3858	3858	25 or the first anniversary of the annuity start date, whichever
3859	3859	26 is later. Except as otherwise provided in this subsection,
3860	3860
3861	3861
3862	3862
3863	3863
3864	3864
3865	3865	HB4873 - 107 - LRB103 35886 RPS 65971 b
3866	3866
3867	3867
3868	3868	HB4873- 108 -LRB103 35886 RPS 65971 b HB4873 - 108 - LRB103 35886 RPS 65971 b
3869	3869	HB4873 - 108 - LRB103 35886 RPS 65971 b
3870	3870	1 each Each annual increase shall be calculated at 3% or
3871	3871	2 one-half the annual unadjusted percentage increase (but not
3872	3872	3 less than zero) in the consumer price index-u for the 12 months
3873	3873	4 ending with the September preceding each November 1, whichever
3874	3874	5 is less, of the originally granted retirement annuity. If the
3875	3875	6 annual unadjusted percentage change in the consumer price
3876	3876	7 index-u for the 12 months ending with the September preceding
3877	3877	8 each November 1 is zero or there is a decrease, then the
3878	3878	9 annuity shall not be increased.
3879	3879	10 Beginning January 1, 2026, any retirement annuity or
3880	3880	11 supplemental annuity of a member or participant under Article
3881	3881	12 14, 16, or 17 who is subject to this Section shall be subject
3882	3882	13 to annual increases on the January 1 occurring after the first
3883	3883	14 anniversary of the annuity start date. Each annual increase
3884	3884	15 for a member or participant of a retirement system or pension
3885	3885	16 fund established under Article 14, 16, or 17 who is subject to
3886	3886	17 this Section shall be calculated at 3% of the originally
3887	3887	18 granted retirement annuity.
3888	3888	19 For the purposes of Section 1-103.1 of this Code, the
3889	3889	20 changes made to this Section by this amendatory Act of the
3890	3890	21 103rd General Assembly are applicable without regard to
3891	3891	22 whether the employee was in active service on or after the
3892	3892	23 effective date of this amendatory Act of the 103rd General
3893	3893	24 Assembly.
3894	3894	25 For the purposes of Section 1-103.1 of this Code, the
3895	3895	26 changes made to this Section by Public Act 102-263 are
3896	3896
3897	3897
3898	3898
3899	3899
3900	3900
3901	3901	HB4873 - 108 - LRB103 35886 RPS 65971 b
3902	3902
3903	3903
3904	3904	HB4873- 109 -LRB103 35886 RPS 65971 b HB4873 - 109 - LRB103 35886 RPS 65971 b
3905	3905	HB4873 - 109 - LRB103 35886 RPS 65971 b
3906	3906	1 applicable without regard to whether the employee was in
3907	3907	2 active service on or after August 6, 2021 (the effective date
3908	3908	3 of Public Act 102-263).
3909	3909	4 For the purposes of Section 1-103.1 of this Code, the
3910	3910	5 changes made to this Section by Public Act 100-23 are
3911	3911	6 applicable without regard to whether the employee was in
3912	3912	7 active service on or after July 6, 2017 (the effective date of
3913	3913	8 Public Act 100-23).
3914	3914	9 (f) The initial survivor's or widow's annuity of an
3915	3915	10 otherwise eligible survivor or widow of a retired member or
3916	3916	11 participant who first became a member or participant on or
3917	3917	12 after January 1, 2011 shall be in the amount of 66 2/3% of the
3918	3918	13 retired member's or participant's retirement annuity at the
3919	3919	14 date of death. In the case of the death of a member or
3920	3920	15 participant who has not retired and who first became a member
3921	3921	16 or participant on or after January 1, 2011, eligibility for a
3922	3922	17 survivor's or widow's annuity shall be determined by the
3923	3923	18 applicable Article of this Code. The initial benefit shall be
3924	3924	19 66 2/3% of the earned annuity without a reduction due to age. A
3925	3925	20 child's annuity of an otherwise eligible child shall be in the
3926	3926	21 amount prescribed under each Article if applicable. Any
3927	3927	22 survivor's or widow's annuity shall be increased (1) on each
3928	3928	23 January 1 occurring on or after the commencement of the
3929	3929	24 annuity if the deceased member died while receiving a
3930	3930	25 retirement annuity or (2) in other cases, on each January 1
3931	3931	26 occurring after the first anniversary of the commencement of
3932	3932
3933	3933
3934	3934
3935	3935
3936	3936
3937	3937	HB4873 - 109 - LRB103 35886 RPS 65971 b
3938	3938
3939	3939
3940	3940	HB4873- 110 -LRB103 35886 RPS 65971 b HB4873 - 110 - LRB103 35886 RPS 65971 b
3941	3941	HB4873 - 110 - LRB103 35886 RPS 65971 b
3942	3942	1 the annuity. Each annual increase shall be calculated at 3% or
3943	3943	2 one-half the annual unadjusted percentage increase (but not
3944	3944	3 less than zero) in the consumer price index-u for the 12 months
3945	3945	4 ending with the September preceding each November 1, whichever
3946	3946	5 is less, of the originally granted survivor's annuity. If the
3947	3947	6 annual unadjusted percentage change in the consumer price
3948	3948	7 index-u for the 12 months ending with the September preceding
3949	3949	8 each November 1 is zero or there is a decrease, then the
3950	3950	9 annuity shall not be increased.
3951	3951	10 (g) The benefits in Section 14-110 apply only if the
3952	3952	11 person is a State policeman, a fire fighter in the fire
3953	3953	12 protection service of a department, a conservation police
3954	3954	13 officer, an investigator for the Secretary of State, an
3955	3955	14 investigator for the Office of the Attorney General, an arson
3956	3956	15 investigator, a Commerce Commission police officer,
3957	3957	16 investigator for the Department of Revenue or the Illinois
3958	3958	17 Gaming Board, a security employee of the Department of
3959	3959	18 Corrections or the Department of Juvenile Justice, or a
3960	3960	19 security employee of the Department of Innovation and
3961	3961	20 Technology, as those terms are defined in subsection (b) and
3962	3962	21 subsection (c) of Section 14-110. A person who meets the
3963	3963	22 requirements of this Section is entitled to an annuity
3964	3964	23 calculated under the provisions of Section 14-110, in lieu of
3965	3965	24 the regular or minimum retirement annuity, only if the person
3966	3966	25 has withdrawn from service with not less than 20 years of
3967	3967	26 eligible creditable service and has attained age 60,
3968	3968
3969	3969
3970	3970
3971	3971
3972	3972
3973	3973	HB4873 - 110 - LRB103 35886 RPS 65971 b
3974	3974
3975	3975
3976	3976	HB4873- 111 -LRB103 35886 RPS 65971 b HB4873 - 111 - LRB103 35886 RPS 65971 b
3977	3977	HB4873 - 111 - LRB103 35886 RPS 65971 b
3978	3978	1 regardless of whether the attainment of age 60 occurs while
3979	3979	2 the person is still in service.
3980	3980	3 (h) If a person who first becomes a member or a participant
3981	3981	4 of a retirement system or pension fund subject to this Section
3982	3982	5 on or after January 1, 2011 is receiving a retirement annuity
3983	3983	6 or retirement pension under that system or fund and becomes a
3984	3984	7 member or participant under any other system or fund created
3985	3985	8 by this Code and is employed on a full-time basis, except for
3986	3986	9 those members or participants exempted from the provisions of
3987	3987	10 this Section under subsection (a) of this Section, then the
3988	3988	11 person's retirement annuity or retirement pension under that
3989	3989	12 system or fund shall be suspended during that employment. Upon
3990	3990	13 termination of that employment, the person's retirement
3991	3991	14 annuity or retirement pension payments shall resume and be
3992	3992	15 recalculated if recalculation is provided for under the
3993	3993	16 applicable Article of this Code.
3994	3994	17 If a person who first becomes a member of a retirement
3995	3995	18 system or pension fund subject to this Section on or after
3996	3996	19 January 1, 2012 and is receiving a retirement annuity or
3997	3997	20 retirement pension under that system or fund and accepts on a
3998	3998	21 contractual basis a position to provide services to a
3999	3999	22 governmental entity from which he or she has retired, then
4000	4000	23 that person's annuity or retirement pension earned as an
4001	4001	24 active employee of the employer shall be suspended during that
4002	4002	25 contractual service. A person receiving an annuity or
4003	4003	26 retirement pension under this Code shall notify the pension
4004	4004
4005	4005
4006	4006
4007	4007
4008	4008
4009	4009	HB4873 - 111 - LRB103 35886 RPS 65971 b
4010	4010
4011	4011
4012	4012	HB4873- 112 -LRB103 35886 RPS 65971 b HB4873 - 112 - LRB103 35886 RPS 65971 b
4013	4013	HB4873 - 112 - LRB103 35886 RPS 65971 b
4014	4014	1 fund or retirement system from which he or she is receiving an
4015	4015	2 annuity or retirement pension, as well as his or her
4016	4016	3 contractual employer, of his or her retirement status before
4017	4017	4 accepting contractual employment. A person who fails to submit
4018	4018	5 such notification shall be guilty of a Class A misdemeanor and
4019	4019	6 required to pay a fine of $1,000. Upon termination of that
4020	4020	7 contractual employment, the person's retirement annuity or
4021	4021	8 retirement pension payments shall resume and, if appropriate,
4022	4022	9 be recalculated under the applicable provisions of this Code.
4023	4023	10 (i) (Blank).
4024	4024	11 (j) In the case of a conflict between the provisions of
4025	4025	12 this Section and any other provision of this Code, the
4026	4026	13 provisions of this Section shall control.
4027	4027	14 (Source: P.A. 102-16, eff. 6-17-21; 102-210, eff. 1-1-22;
4028	4028	15 102-263, eff. 8-6-21; 102-956, eff. 5-27-22; 103-529, eff.
4029	4029	16 8-11-23.)
4030	4030	17 (40 ILCS 5/2-119.1) (from Ch. 108 1/2, par. 2-119.1)
4031	4031	18 (Text of Section WITHOUT the changes made by P.A. 98-599,
4032	4032	19 which has been held unconstitutional)
4033	4033	20 Sec. 2-119.1. Automatic increase in retirement annuity.
4034	4034	21 (a) A participant who retires after June 30, 1967, and who
4035	4035	22 has not received an initial increase under this Section before
4036	4036	23 the effective date of this amendatory Act of 1991, shall, in
4037	4037	24 January or July next following the first anniversary of
4038	4038	25 retirement, whichever occurs first, and in the same month of
4039	4039
4040	4040
4041	4041
4042	4042
4043	4043
4044	4044	HB4873 - 112 - LRB103 35886 RPS 65971 b
4045	4045
4046	4046
4047	4047	HB4873- 113 -LRB103 35886 RPS 65971 b HB4873 - 113 - LRB103 35886 RPS 65971 b
4048	4048	HB4873 - 113 - LRB103 35886 RPS 65971 b
4049	4049	1 each year thereafter, but in no event prior to age 60, have the
4050	4050	2 amount of the originally granted retirement annuity increased
4051	4051	3 as follows: for each year through 1971, 1 1/2%; for each year
4052	4052	4 from 1972 through 1979, 2%; and for 1980 and each year
4053	4053	5 thereafter, 3%. Annuitants who have received an initial
4054	4054	6 increase under this subsection prior to the effective date of
4055	4055	7 this amendatory Act of 1991 shall continue to receive their
4056	4056	8 annual increases in the same month as the initial increase.
4057	4057	9 (b) Beginning January 1, 1990, for eligible participants
4058	4058	10 who remain in service after attaining 20 years of creditable
4059	4059	11 service, the 3% increases provided under subsection (a) shall
4060	4060	12 begin to accrue on the January 1 next following the date upon
4061	4061	13 which the participant (1) attains age 55, or (2) attains 20
4062	4062	14 years of creditable service, whichever occurs later, and shall
4063	4063	15 continue to accrue while the participant remains in service;
4064	4064	16 such increases shall become payable on January 1 or July 1,
4065	4065	17 whichever occurs first, next following the first anniversary
4066	4066	18 of retirement. For any person who has service credit in the
4067	4067	19 System for the entire period from January 15, 1969 through
4068	4068	20 December 31, 1992, regardless of the date of termination of
4069	4069	21 service, the reference to age 55 in clause (1) of this
4070	4070	22 subsection (b) shall be deemed to mean age 50.
4071	4071	23 This subsection (b) does not apply to any person who first
4072	4072	24 becomes a member of the System after the effective date of this
4073	4073	25 amendatory Act of the 93rd General Assembly.
4074	4074	26 (b-5) Notwithstanding any other provision of this Article
4075	4075
4076	4076
4077	4077
4078	4078
4079	4079
4080	4080	HB4873 - 113 - LRB103 35886 RPS 65971 b
4081	4081
4082	4082
4083	4083	HB4873- 114 -LRB103 35886 RPS 65971 b HB4873 - 114 - LRB103 35886 RPS 65971 b
4084	4084	HB4873 - 114 - LRB103 35886 RPS 65971 b
4085	4085	1 and except as otherwise provided in this subsection, a
4086	4086	2 participant who first becomes a participant on or after
4087	4087	3 January 1, 2011 (the effective date of Public Act 96-889)
4088	4088	4 shall, in January or July next following the first anniversary
4089	4089	5 of retirement, whichever occurs first, and in the same month
4090	4090	6 of each year thereafter, but in no event prior to age 67, have
4091	4091	7 the amount of the retirement annuity then being paid increased
4092	4092	8 by 3% or the annual unadjusted percentage increase in the
4093	4093	9 Consumer Price Index for All Urban Consumers as determined by
4094	4094	10 the Public Pension Division of the Department of Insurance
4095	4095	11 under subsection (a) of Section 2-108.1, whichever is less.
4096	4096	12 Notwithstanding any other provision of this Article,
4097	4097	13 beginning January 1, 2026, a participant who first becomes a
4098	4098	14 participant on or after January 1, 2011 (the effective date of
4099	4099	15 Public Act 96-889) shall, in January or July next following
4100	4100	16 the first anniversary of retirement, whichever occurs first,
4101	4101	17 and in the same month of each year thereafter, have the amount
4102	4102	18 of the retirement annuity then being paid increased by 3%.
4103	4103	19 In this subsection, "consumer price index-u" means the
4104	4104	20 index published by the Bureau of Labor Statistics of the
4105	4105	21 United States Department of Labor that measures the average
4106	4106	22 change in prices of goods and services purchased by all urban
4107	4107	23 consumers, United States city average, all items, 1982-84 =
4108	4108	24 100. The new amount resulting from each annual adjustment
4109	4109	25 shall be determined by the Public Pension Division of the
4110	4110	26 Department of Insurance and made available to the Board by
4111	4111
4112	4112
4113	4113
4114	4114
4115	4115
4116	4116	HB4873 - 114 - LRB103 35886 RPS 65971 b
4117	4117
4118	4118
4119	4119	HB4873- 115 -LRB103 35886 RPS 65971 b HB4873 - 115 - LRB103 35886 RPS 65971 b
4120	4120	HB4873 - 115 - LRB103 35886 RPS 65971 b
4121	4121	1 November 1 of each year.
4122	4122	2 For the purposes of Section 1-103.1 of this Code, the
4123	4123	3 changes made to this Section by this amendatory Act of the
4124	4124	4 103rd General Assembly are applicable without regard to
4125	4125	5 whether the employee was in active service on or after the
4126	4126	6 effective date of this amendatory Act of the 103rd General
4127	4127	7 Assembly.
4128	4128	8 (c) The foregoing provisions relating to automatic
4129	4129	9 increases are not applicable to a participant who retires
4130	4130	10 before having made contributions (at the rate prescribed in
4131	4131	11 Section 2-126) for automatic increases for less than the
4132	4132	12 equivalent of one full year. However, in order to be eligible
4133	4133	13 for the automatic increases, such a participant may make
4134	4134	14 arrangements to pay to the system the amount required to bring
4135	4135	15 the total contributions for the automatic increase to the
4136	4136	16 equivalent of one year's contributions based upon his or her
4137	4137	17 last salary.
4138	4138	18 (d) A participant who terminated service prior to July 1,
4139	4139	19 1967, with at least 14 years of service is entitled to an
4140	4140	20 increase in retirement annuity beginning January, 1976, and to
4141	4141	21 additional increases in January of each year thereafter.
4142	4142	22 The initial increase shall be 1 1/2% of the originally
4143	4143	23 granted retirement annuity multiplied by the number of full
4144	4144	24 years that the annuitant was in receipt of such annuity prior
4145	4145	25 to January 1, 1972, plus 2% of the originally granted
4146	4146	26 retirement annuity for each year after that date. The
4147	4147
4148	4148
4149	4149
4150	4150
4151	4151
4152	4152	HB4873 - 115 - LRB103 35886 RPS 65971 b
4153	4153
4154	4154
4155	4155	HB4873- 116 -LRB103 35886 RPS 65971 b HB4873 - 116 - LRB103 35886 RPS 65971 b
4156	4156	HB4873 - 116 - LRB103 35886 RPS 65971 b
4157	4157	1 subsequent annual increases shall be at the rate of 2% of the
4158	4158	2 originally granted retirement annuity for each year through
4159	4159	3 1979 and at the rate of 3% for 1980 and thereafter.
4160	4160	4 (e) Beginning January 1, 1990, all automatic annual
4161	4161	5 increases payable under this Section shall be calculated as a
4162	4162	6 percentage of the total annuity payable at the time of the
4163	4163	7 increase, including previous increases granted under this
4164	4164	8 Article.
4165	4165	9 (Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11.)
4166	4166	10 (40 ILCS 5/15-136) (from Ch. 108 1/2, par. 15-136)
4167	4167	11 Sec. 15-136. Retirement annuities; amount annuities -
4168	4168	12 Amount. The provisions of this Section 15-136 apply only to
4169	4169	13 those participants who are participating in the traditional
4170	4170	14 benefit package or the portable benefit package and do not
4171	4171	15 apply to participants who are participating in the
4172	4172	16 self-managed plan.
4173	4173	17 (a) The amount of a participant's retirement annuity,
4174	4174	18 expressed in the form of a single-life annuity, shall be
4175	4175	19 determined by whichever of the following rules is applicable
4176	4176	20 and provides the largest annuity:
4177	4177	21 Rule 1: The retirement annuity shall be 1.67% of final
4178	4178	22 rate of earnings for each of the first 10 years of service,
4179	4179	23 1.90% for each of the next 10 years of service, 2.10% for each
4180	4180	24 year of service in excess of 20 but not exceeding 30, and 2.30%
4181	4181	25 for each year in excess of 30; or for persons who retire on or
4182	4182
4183	4183
4184	4184
4185	4185
4186	4186
4187	4187	HB4873 - 116 - LRB103 35886 RPS 65971 b
4188	4188
4189	4189
4190	4190	HB4873- 117 -LRB103 35886 RPS 65971 b HB4873 - 117 - LRB103 35886 RPS 65971 b
4191	4191	HB4873 - 117 - LRB103 35886 RPS 65971 b
4192	4192	1 after January 1, 1998, 2.2% of the final rate of earnings for
4193	4193	2 each year of service.
4194	4194	3 Rule 2: The retirement annuity shall be the sum of the
4195	4195	4 following, determined from amounts credited to the participant
4196	4196	5 in accordance with the actuarial tables and the effective rate
4197	4197	6 of interest in effect at the time the retirement annuity
4198	4198	7 begins:
4199	4199	8 (i) the normal annuity which can be provided on an
4200	4200	9 actuarially equivalent basis, by the accumulated normal
4201	4201	10 contributions as of the date the annuity begins;
4202	4202	11 (ii) an annuity from employer contributions of an
4203	4203	12 amount equal to that which can be provided on an
4204	4204	13 actuarially equivalent basis from the accumulated normal
4205	4205	14 contributions made by the participant under Section
4206	4206	15 15-113.6 and Section 15-113.7 plus 1.4 times all other
4207	4207	16 accumulated normal contributions made by the participant;
4208	4208	17 and
4209	4209	18 (iii) the annuity that can be provided on an
4210	4210	19 actuarially equivalent basis from the entire contribution
4211	4211	20 made by the participant under Section 15-113.3.
4212	4212	21 With respect to a police officer or firefighter who
4213	4213	22 retires on or after August 14, 1998, the accumulated normal
4214	4214	23 contributions taken into account under clauses (i) and (ii) of
4215	4215	24 this Rule 2 shall include the additional normal contributions
4216	4216	25 made by the police officer or firefighter under Section
4217	4217	26 15-157(a).
4218	4218
4219	4219
4220	4220
4221	4221
4222	4222
4223	4223	HB4873 - 117 - LRB103 35886 RPS 65971 b
4224	4224
4225	4225
4226	4226	HB4873- 118 -LRB103 35886 RPS 65971 b HB4873 - 118 - LRB103 35886 RPS 65971 b
4227	4227	HB4873 - 118 - LRB103 35886 RPS 65971 b
4228	4228	1 The amount of a retirement annuity calculated under this
4229	4229	2 Rule 2 shall be computed solely on the basis of the
4230	4230	3 participant's accumulated normal contributions, as specified
4231	4231	4 in this Rule and defined in Section 15-116. Neither an
4232	4232	5 employee or employer contribution for early retirement under
4233	4233	6 Section 15-136.2 nor any other employer contribution shall be
4234	4234	7 used in the calculation of the amount of a retirement annuity
4235	4235	8 under this Rule 2.
4236	4236	9 This amendatory Act of the 91st General Assembly is a
4237	4237	10 clarification of existing law and applies to every participant
4238	4238	11 and annuitant without regard to whether status as an employee
4239	4239	12 terminates before the effective date of this amendatory Act.
4240	4240	13 This Rule 2 does not apply to a person who first becomes an
4241	4241	14 employee under this Article on or after July 1, 2005.
4242	4242	15 Rule 3: The retirement annuity of a participant who is
4243	4243	16 employed at least one-half time during the period on which his
4244	4244	17 or her final rate of earnings is based, shall be equal to the
4245	4245	18 participant's years of service not to exceed 30, multiplied by
4246	4246	19 (1) $96 if the participant's final rate of earnings is less
4247	4247	20 than $3,500, (2) $108 if the final rate of earnings is at least
4248	4248	21 $3,500 but less than $4,500, (3) $120 if the final rate of
4249	4249	22 earnings is at least $4,500 but less than $5,500, (4) $132 if
4250	4250	23 the final rate of earnings is at least $5,500 but less than
4251	4251	24 $6,500, (5) $144 if the final rate of earnings is at least
4252	4252	25 $6,500 but less than $7,500, (6) $156 if the final rate of
4253	4253	26 earnings is at least $7,500 but less than $8,500, (7) $168 if
4254	4254
4255	4255
4256	4256
4257	4257
4258	4258
4259	4259	HB4873 - 118 - LRB103 35886 RPS 65971 b
4260	4260
4261	4261
4262	4262	HB4873- 119 -LRB103 35886 RPS 65971 b HB4873 - 119 - LRB103 35886 RPS 65971 b
4263	4263	HB4873 - 119 - LRB103 35886 RPS 65971 b
4264	4264	1 the final rate of earnings is at least $8,500 but less than
4265	4265	2 $9,500, and (8) $180 if the final rate of earnings is $9,500 or
4266	4266	3 more, except that the annuity for those persons having made an
4267	4267	4 election under Section 15-154(a-1) shall be calculated and
4268	4268	5 payable under the portable retirement benefit program pursuant
4269	4269	6 to the provisions of Section 15-136.4.
4270	4270	7 Rule 4: A participant who is at least age 50 and has 25 or
4271	4271	8 more years of service as a police officer or firefighter, and a
4272	4272	9 participant who is age 55 or over and has at least 20 but less
4273	4273	10 than 25 years of service as a police officer or firefighter,
4274	4274	11 shall be entitled to a retirement annuity of 2 1/4% of the
4275	4275	12 final rate of earnings for each of the first 10 years of
4276	4276	13 service as a police officer or firefighter, 2 1/2% for each of
4277	4277	14 the next 10 years of service as a police officer or
4278	4278	15 firefighter, and 2 3/4% for each year of service as a police
4279	4279	16 officer or firefighter in excess of 20. The retirement annuity
4280	4280	17 for all other service shall be computed under Rule 1. A Tier 2
4281	4281	18 member is eligible for a retirement annuity calculated under
4282	4282	19 Rule 4 only if that Tier 2 member meets the service
4283	4283	20 requirements for that benefit calculation as prescribed under
4284	4284	21 this Rule 4 in addition to the applicable age requirement
4285	4285	22 under subsection (a-10) of Section 15-135.
4286	4286	23 For purposes of this Rule 4, a participant's service as a
4287	4287	24 firefighter shall also include the following:
4288	4288	25 (i) service that is performed while the person is an
4289	4289	26 employee under subsection (h) of Section 15-107; and
4290	4290
4291	4291
4292	4292
4293	4293
4294	4294
4295	4295	HB4873 - 119 - LRB103 35886 RPS 65971 b
4296	4296
4297	4297
4298	4298	HB4873- 120 -LRB103 35886 RPS 65971 b HB4873 - 120 - LRB103 35886 RPS 65971 b
4299	4299	HB4873 - 120 - LRB103 35886 RPS 65971 b
4300	4300	1 (ii) in the case of an individual who was a
4301	4301	2 participating employee employed in the fire department of
4302	4302	3 the University of Illinois's Champaign-Urbana campus
4303	4303	4 immediately prior to the elimination of that fire
4304	4304	5 department and who immediately after the elimination of
4305	4305	6 that fire department transferred to another job with the
4306	4306	7 University of Illinois, service performed as an employee
4307	4307	8 of the University of Illinois in a position other than
4308	4308	9 police officer or firefighter, from the date of that
4309	4309	10 transfer until the employee's next termination of service
4310	4310	11 with the University of Illinois.
4311	4311	12 (b) For a Tier 1 member, the retirement annuity provided
4312	4312	13 under Rules 1 and 3 above shall be reduced by 1/2 of 1% for
4313	4313	14 each month the participant is under age 60 at the time of
4314	4314	15 retirement. However, this reduction shall not apply in the
4315	4315	16 following cases:
4316	4316	17 (1) For a disabled participant whose disability
4317	4317	18 benefits have been discontinued because he or she has
4318	4318	19 exhausted eligibility for disability benefits under clause
4319	4319	20 (6) of Section 15-152;
4320	4320	21 (2) For a participant who has at least the number of
4321	4321	22 years of service required to retire at any age under
4322	4322	23 subsection (a) of Section 15-135; or
4323	4323	24 (3) For that portion of a retirement annuity which has
4324	4324	25 been provided on account of service of the participant
4325	4325	26 during periods when he or she performed the duties of a
4326	4326
4327	4327
4328	4328
4329	4329
4330	4330
4331	4331	HB4873 - 120 - LRB103 35886 RPS 65971 b
4332	4332
4333	4333
4334	4334	HB4873- 121 -LRB103 35886 RPS 65971 b HB4873 - 121 - LRB103 35886 RPS 65971 b
4335	4335	HB4873 - 121 - LRB103 35886 RPS 65971 b
4336	4336	1 police officer or firefighter, if these duties were
4337	4337	2 performed for at least 5 years immediately preceding the
4338	4338	3 date the retirement annuity is to begin.
4339	4339	4 (b-5) The retirement annuity of a Tier 2 member who is
4340	4340	5 retiring under Rule 1 or 3 after attaining age 62 with at least
4341	4341	6 10 years of service credit shall be reduced by 1/2 of 1% for
4342	4342	7 each full month that the member's age is under age 67.
4343	4343	8 (c) The maximum retirement annuity provided under Rules 1,
4344	4344	9 2, 4, and 5 shall be the lesser of (1) the annual limit of
4345	4345	10 benefits as specified in Section 415 of the Internal Revenue
4346	4346	11 Code of 1986, as such Section may be amended from time to time
4347	4347	12 and as such benefit limits shall be adjusted by the
4348	4348	13 Commissioner of Internal Revenue, and (2) 80% of final rate of
4349	4349	14 earnings.
4350	4350	15 (d) A Tier 1 member whose status as an employee terminates
4351	4351	16 after August 14, 1969 shall receive automatic increases in his
4352	4352	17 or her retirement annuity as follows:
4353	4353	18 Effective January 1 immediately following the date the
4354	4354	19 retirement annuity begins, the annuitant shall receive an
4355	4355	20 increase in his or her monthly retirement annuity of 0.125% of
4356	4356	21 the monthly retirement annuity provided under Rule 1, Rule 2,
4357	4357	22 Rule 3, or Rule 4 contained in this Section, multiplied by the
4358	4358	23 number of full months which elapsed from the date the
4359	4359	24 retirement annuity payments began to January 1, 1972, plus
4360	4360	25 0.1667% of such annuity, multiplied by the number of full
4361	4361	26 months which elapsed from January 1, 1972, or the date the
4362	4362
4363	4363
4364	4364
4365	4365
4366	4366
4367	4367	HB4873 - 121 - LRB103 35886 RPS 65971 b
4368	4368
4369	4369
4370	4370	HB4873- 122 -LRB103 35886 RPS 65971 b HB4873 - 122 - LRB103 35886 RPS 65971 b
4371	4371	HB4873 - 122 - LRB103 35886 RPS 65971 b
4372	4372	1 retirement annuity payments began, whichever is later, to
4373	4373	2 January 1, 1978, plus 0.25% of such annuity multiplied by the
4374	4374	3 number of full months which elapsed from January 1, 1978, or
4375	4375	4 the date the retirement annuity payments began, whichever is
4376	4376	5 later, to the effective date of the increase.
4377	4377	6 The annuitant shall receive an increase in his or her
4378	4378	7 monthly retirement annuity on each January 1 thereafter during
4379	4379	8 the annuitant's life of 3% of the monthly annuity provided
4380	4380	9 under Rule 1, Rule 2, Rule 3, or Rule 4 contained in this
4381	4381	10 Section. The change made under this subsection by P.A. 81-970
4382	4382	11 is effective January 1, 1980 and applies to each annuitant
4383	4383	12 whose status as an employee terminates before or after that
4384	4384	13 date.
4385	4385	14 Beginning January 1, 1990, all automatic annual increases
4386	4386	15 payable under this Section shall be calculated as a percentage
4387	4387	16 of the total annuity payable at the time of the increase,
4388	4388	17 including all increases previously granted under this Article.
4389	4389	18 The change made in this subsection by P.A. 85-1008 is
4390	4390	19 effective January 26, 1988, and is applicable without regard
4391	4391	20 to whether status as an employee terminated before that date.
4392	4392	21 (d-5) Except as otherwise provided in this subsection, a A
4393	4393	22 retirement annuity of a Tier 2 member shall receive annual
4394	4394	23 increases on the January 1 occurring either on or after the
4395	4395	24 attainment of age 67 or the first anniversary of the annuity
4396	4396	25 start date, whichever is later. Each annual increase shall be
4397	4397	26 calculated at 3% or one half the annual unadjusted percentage
4398	4398
4399	4399
4400	4400
4401	4401
4402	4402
4403	4403	HB4873 - 122 - LRB103 35886 RPS 65971 b
4404	4404
4405	4405
4406	4406	HB4873- 123 -LRB103 35886 RPS 65971 b HB4873 - 123 - LRB103 35886 RPS 65971 b
4407	4407	HB4873 - 123 - LRB103 35886 RPS 65971 b
4408	4408	1 increase (but not less than zero) in the consumer price
4409	4409	2 index-u for the 12 months ending with the September preceding
4410	4410	3 each November 1, whichever is less, of the originally granted
4411	4411	4 retirement annuity. If the annual unadjusted percentage change
4412	4412	5 in the consumer price index-u for the 12 months ending with the
4413	4413	6 September preceding each November 1 is zero or there is a
4414	4414	7 decrease, then the annuity shall not be increased.
4415	4415	8 Beginning January 1, 2026, a retirement annuity of a Tier
4416	4416	9 2 member shall receive annual increases on the January 1
4417	4417	10 occurring either on or after the first anniversary of the
4418	4418	11 annuity start date. Each annual increase shall be calculated
4419	4419	12 at 3% of the originally granted retirement annuity.
4420	4420	13 (e) If, on January 1, 1987, or the date the retirement
4421	4421	14 annuity payment period begins, whichever is later, the sum of
4422	4422	15 the retirement annuity provided under Rule 1 or Rule 2 of this
4423	4423	16 Section and the automatic annual increases provided under the
4424	4424	17 preceding subsection or Section 15-136.1, amounts to less than
4425	4425	18 the retirement annuity which would be provided by Rule 3, the
4426	4426	19 retirement annuity shall be increased as of January 1, 1987,
4427	4427	20 or the date the retirement annuity payment period begins,
4428	4428	21 whichever is later, to the amount which would be provided by
4429	4429	22 Rule 3 of this Section. Such increased amount shall be
4430	4430	23 considered as the retirement annuity in determining benefits
4431	4431	24 provided under other Sections of this Article. This paragraph
4432	4432	25 applies without regard to whether status as an employee
4433	4433	26 terminated before the effective date of this amendatory Act of
4434	4434
4435	4435
4436	4436
4437	4437
4438	4438
4439	4439	HB4873 - 123 - LRB103 35886 RPS 65971 b
4440	4440
4441	4441
4442	4442	HB4873- 124 -LRB103 35886 RPS 65971 b HB4873 - 124 - LRB103 35886 RPS 65971 b
4443	4443	HB4873 - 124 - LRB103 35886 RPS 65971 b
4444	4444	1 1987, provided that the annuitant was employed at least
4445	4445	2 one-half time during the period on which the final rate of
4446	4446	3 earnings was based.
4447	4447	4 (f) A participant is entitled to such additional annuity
4448	4448	5 as may be provided on an actuarially equivalent basis, by any
4449	4449	6 accumulated additional contributions to his or her credit.
4450	4450	7 However, the additional contributions made by the participant
4451	4451	8 toward the automatic increases in annuity provided under this
4452	4452	9 Section shall not be taken into account in determining the
4453	4453	10 amount of such additional annuity.
4454	4454	11 (g) If, (1) by law, a function of a governmental unit, as
4455	4455	12 defined by Section 20-107 of this Code, is transferred in
4456	4456	13 whole or in part to an employer, and (2) a participant
4457	4457	14 transfers employment from such governmental unit to such
4458	4458	15 employer within 6 months after the transfer of the function,
4459	4459	16 and (3) the sum of (A) the annuity payable to the participant
4460	4460	17 under Rule 1, 2, or 3 of this Section (B) all proportional
4461	4461	18 annuities payable to the participant by all other retirement
4462	4462	19 systems covered by Article 20, and (C) the initial primary
4463	4463	20 insurance amount to which the participant is entitled under
4464	4464	21 the Social Security Act, is less than the retirement annuity
4465	4465	22 which would have been payable if all of the participant's
4466	4466	23 pension credits validated under Section 20-109 had been
4467	4467	24 validated under this system, a supplemental annuity equal to
4468	4468	25 the difference in such amounts shall be payable to the
4469	4469	26 participant.
4470	4470
4471	4471
4472	4472
4473	4473
4474	4474
4475	4475	HB4873 - 124 - LRB103 35886 RPS 65971 b
4476	4476
4477	4477
4478	4478	HB4873- 125 -LRB103 35886 RPS 65971 b HB4873 - 125 - LRB103 35886 RPS 65971 b
4479	4479	HB4873 - 125 - LRB103 35886 RPS 65971 b
4480	4480	1 (h) On January 1, 1981, an annuitant who was receiving a
4481	4481	2 retirement annuity on or before January 1, 1971 shall have his
4482	4482	3 or her retirement annuity then being paid increased $1 per
4483	4483	4 month for each year of creditable service. On January 1, 1982,
4484	4484	5 an annuitant whose retirement annuity began on or before
4485	4485	6 January 1, 1977, shall have his or her retirement annuity then
4486	4486	7 being paid increased $1 per month for each year of creditable
4487	4487	8 service.
4488	4488	9 (i) On January 1, 1987, any annuitant whose retirement
4489	4489	10 annuity began on or before January 1, 1977, shall have the
4490	4490	11 monthly retirement annuity increased by an amount equal to 8
4491	4491	12 per year of creditable service times the number of years that
4492	4492	13 have elapsed since the annuity began.
4493	4493	14 (j) The changes made to this Section by this amendatory
4494	4494	15 Act of the 101st General Assembly apply retroactively to
4495	4495	16 January 1, 2011.
4496	4496	17 (Source: P.A. 101-610, eff. 1-1-20.)
4497	4497	18 (40 ILCS 5/18-125.1) (from Ch. 108 1/2, par. 18-125.1)
4498	4498	19 Sec. 18-125.1. Automatic increase in retirement annuity. A
4499	4499	20 participant who retires from service after June 30, 1969,
4500	4500	21 shall, in January of the year next following the year in which
4501	4501	22 the first anniversary of retirement occurs, and in January of
4502	4502	23 each year thereafter, have the amount of his or her originally
4503	4503	24 granted retirement annuity increased as follows: for each year
4504	4504	25 up to and including 1971, 1 1/2%; for each year from 1972
4505	4505
4506	4506
4507	4507
4508	4508
4509	4509
4510	4510	HB4873 - 125 - LRB103 35886 RPS 65971 b
4511	4511
4512	4512
4513	4513	HB4873- 126 -LRB103 35886 RPS 65971 b HB4873 - 126 - LRB103 35886 RPS 65971 b
4514	4514	HB4873 - 126 - LRB103 35886 RPS 65971 b
4515	4515	1 through 1979 inclusive, 2%; and for 1980 and each year
4516	4516	2 thereafter, 3%.
4517	4517	3 Notwithstanding any other provision of this Article and
4518	4518	4 except as otherwise provided in this Section, a retirement
4519	4519	5 annuity for a participant who first serves as a judge on or
4520	4520	6 after January 1, 2011 (the effective date of Public Act
4521	4521	7 96-889) shall be increased in January of the year next
4522	4522	8 following the year in which the first anniversary of
4523	4523	9 retirement occurs, but in no event prior to age 67, and in
4524	4524	10 January of each year thereafter, by an amount equal to 3% or
4525	4525	11 the annual percentage increase in the consumer price index-u
4526	4526	12 as determined by the Public Pension Division of the Department
4527	4527	13 of Insurance under subsection (b-5) of Section 18-125,
4528	4528	14 whichever is less, of the retirement annuity then being paid.
4529	4529	15 Notwithstanding any other provision of this Article,
4530	4530	16 beginning January 1, 2026, a retirement annuity for a
4531	4531	17 participant who first serves as a judge on or after January 1,
4532	4532	18 2011 (the effective date of Public Act 96-889) shall be
4533	4533	19 increased in January of the year next following the year in
4534	4534	20 which the first anniversary of retirement occurs, and in
4535	4535	21 January of each year thereafter, by an amount equal to 3% of
4536	4536	22 the retirement annuity then being paid.
4537	4537	23 In this Section, "consumer price index-u" means the index
4538	4538	24 published by the Bureau of Labor Statistics of the United
4539	4539	25 States Department of Labor that measures the average change in
4540	4540	26 prices of goods and services purchased by all urban consumers,
4541	4541
4542	4542
4543	4543
4544	4544
4545	4545
4546	4546	HB4873 - 126 - LRB103 35886 RPS 65971 b
4547	4547
4548	4548
4549	4549	HB4873- 127 -LRB103 35886 RPS 65971 b HB4873 - 127 - LRB103 35886 RPS 65971 b
4550	4550	HB4873 - 127 - LRB103 35886 RPS 65971 b
4551	4551	1 United States city average, all items, 1982-84 = 100. The new
4552	4552	2 amount resulting from each annual adjustment shall be
4553	4553	3 determined by the Public Pension Division of the Department of
4554	4554	4 Insurance and made available to the Board by November 1 of each
4555	4555	5 year.
4556	4556	6 For the purposes of Section 1-103.1 of this Code, the
4557	4557	7 changes made to this Section by this amendatory Act of the
4558	4558	8 103rd General Assembly are applicable without regard to
4559	4559	9 whether the employee was in active service on or after the
4560	4560	10 effective date of this amendatory Act of the 103rd General
4561	4561	11 Assembly.
4562	4562	12 This Section is not applicable to a participant who
4563	4563	13 retires before he or she has made contributions at the rate
4564	4564	14 prescribed in Section 18-133 for automatic increases for not
4565	4565	15 less than the equivalent of one full year, unless such a
4566	4566	16 participant arranges to pay the system the amount required to
4567	4567	17 bring the total contributions for the automatic increase to
4568	4568	18 the equivalent of one year's contribution based upon his or
4569	4569	19 her last year's salary.
4570	4570	20 This Section is applicable to all participants in service
4571	4571	21 after June 30, 1969 unless a participant has elected, prior to
4572	4572	22 September 1, 1969, in a written direction filed with the board
4573	4573	23 not to be subject to the provisions of this Section. Any
4574	4574	24 participant in service on or after July 1, 1992 shall have the
4575	4575	25 option of electing prior to April 1, 1993, in a written
4576	4576	26 direction filed with the board, to be covered by the
4577	4577
4578	4578
4579	4579
4580	4580
4581	4581
4582	4582	HB4873 - 127 - LRB103 35886 RPS 65971 b
4583	4583
4584	4584
4585	4585	HB4873- 128 -LRB103 35886 RPS 65971 b HB4873 - 128 - LRB103 35886 RPS 65971 b
4586	4586	HB4873 - 128 - LRB103 35886 RPS 65971 b
4587	4587	1 provisions of the 1969 amendatory Act. Such participant shall
4588	4588	2 be required to make the aforesaid additional contributions
4589	4589	3 with compound interest at 4% per annum.
4590	4590	4 Any participant who has become eligible to receive the
4591	4591	5 maximum rate of annuity and who resumes service as a judge
4592	4592	6 after receiving a retirement annuity under this Article shall
4593	4593	7 have the amount of his or her retirement annuity increased by
4594	4594	8 3% of the originally granted annuity amount for each year of
4595	4595	9 such resumed service, beginning in January of the year next
4596	4596	10 following the date of such resumed service, upon subsequent
4597	4597	11 termination of such resumed service.
4598	4598	12 Beginning January 1, 1990, all automatic annual increases
4599	4599	13 payable under this Section shall be calculated as a percentage
4600	4600	14 of the total annuity payable at the time of the increase,
4601	4601	15 including previous increases granted under this Article.
4602	4602	16 (Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11.)
4603	4603	17 Article 3.
4604	4604	18 Section 3-5. The Illinois Administrative Procedure Act is
4605	4605	19 amended by adding Section 5-45.55 as follows:
4606	4606	20 (5 ILCS 100/5-45.55 new)
4607	4607	21 Sec. 5-45.55. Emergency rulemaking; accelerated pension
4608	4608	22 benefit payments. To provide for the expeditious and timely
4609	4609	23 implementation of accelerated pension benefit payments under
4610	4610
4611	4611
4612	4612
4613	4613
4614	4614
4615	4615	HB4873 - 128 - LRB103 35886 RPS 65971 b
4616	4616
4617	4617
4618	4618	HB4873- 129 -LRB103 35886 RPS 65971 b HB4873 - 129 - LRB103 35886 RPS 65971 b
4619	4619	HB4873 - 129 - LRB103 35886 RPS 65971 b
4620	4620	1 Articles 2 and 18 of the Illinois Pension Code, emergency
4621	4621	2 rules implementing the accelerated pension benefit payments
4622	4622	3 under Article 2 may be adopted in accordance with Section 5-45
4623	4623	4 by the Board of Trustees established under Article 2 of the
4624	4624	5 Illinois Pension Code and emergency rules implementing the
4625	4625	6 accelerated pension benefit payments under Article 18 may be
4626	4626	7 adopted in accordance with Section 5-45 by the Board of
4627	4627	8 Trustees established under Article 18 of the Illinois Pension
4628	4628	9 Code. The adoption of emergency rules authorized by Section
4629	4629	10 5-45 and this Section is deemed to be necessary for the public
4630	4630	11 interest, safety, and welfare.
4631	4631	12 This Section is repealed one year after the effective date
4632	4632	13 of this amendatory Act of the 103rd General Assembly.
4633	4633	14 Section 3-10. The Illinois Pension Code is amended by
4634	4634	15 adding Sections 2-154.5, 2-154.6, 17-156.10, 17-156.11,
4635	4635	16 18-161.5, and 18-161.6 as follows:
4636	4636	17 (40 ILCS 5/2-154.5 new)
4637	4637	18 Sec. 2-154.5. Accelerated pension benefit payment in lieu
4638	4638	19 of any pension benefit.
4639	4639	20 (a) As used in this Section:
4640	4640	21 "Eligible person" means a person who:
4641	4641	22 (1) has terminated service;
4642	4642	23 (2) has accrued sufficient service credit to be
4643	4643	24 eligible to receive a retirement annuity under this
4644	4644
4645	4645
4646	4646
4647	4647
4648	4648
4649	4649	HB4873 - 129 - LRB103 35886 RPS 65971 b
4650	4650
4651	4651
4652	4652	HB4873- 130 -LRB103 35886 RPS 65971 b HB4873 - 130 - LRB103 35886 RPS 65971 b
4653	4653	HB4873 - 130 - LRB103 35886 RPS 65971 b
4654	4654	1 Article;
4655	4655	2 (3) has not received any retirement annuity under this
4656	4656	3 Article; and
4657	4657	4 (4) has not made the election under Section 2-154.6.
4658	4658	5 "Pension benefit" means the benefits under this Article,
4659	4659	6 including any anticipated annual increases, that an eligible
4660	4660	7 person is entitled to upon attainment of the applicable
4661	4661	8 retirement age. "Pension benefit" also includes applicable
4662	4662	9 survivor's or disability benefits.
4663	4663	10 (b) As soon as practical after the effective date of this
4664	4664	11 amendatory Act of the 103rd General Assembly, the System shall
4665	4665	12 calculate, using actuarial tables and other assumptions
4666	4666	13 adopted by the Board, the present value of pension benefits
4667	4667	14 for each eligible person who requests that information and
4668	4668	15 shall offer each eligible person the opportunity to
4669	4669	16 irrevocably elect to receive an amount determined by the
4670	4670	17 System to be equal to 60% of the present value of his or her
4671	4671	18 pension benefits in lieu of receiving any pension benefit. The
4672	4672	19 offer shall specify the dollar amount that the eligible person
4673	4673	20 will receive if he or she so elects and shall expire when a
4674	4674	21 subsequent offer is made to an eligible person. An eligible
4675	4675	22 person is limited to one calculation and offer per calendar
4676	4676	23 year. The System shall make a good faith effort to contact
4677	4677	24 every eligible person to notify him or her of the election.
4678	4678	25 Until June 30, 2027, an eligible person may irrevocably elect
4679	4679	26 to receive an accelerated pension benefit payment in the
4680	4680
4681	4681
4682	4682
4683	4683
4684	4684
4685	4685	HB4873 - 130 - LRB103 35886 RPS 65971 b
4686	4686
4687	4687
4688	4688	HB4873- 131 -LRB103 35886 RPS 65971 b HB4873 - 131 - LRB103 35886 RPS 65971 b
4689	4689	HB4873 - 131 - LRB103 35886 RPS 65971 b
4690	4690	1 amount that the System offers under this subsection in lieu of
4691	4691	2 receiving any pension benefit. A person who elects to receive
4692	4692	3 an accelerated pension benefit payment under this Section may
4693	4693	4 not elect to proceed under the Retirement Systems Reciprocal
4694	4694	5 Act with respect to service under this Article.
4695	4695	6 (c) A person's creditable service under this Article shall
4696	4696	7 be terminated upon the person's receipt of an accelerated
4697	4697	8 pension benefit payment under this Section, and no other
4698	4698	9 benefit shall be paid under this Article based on the
4699	4699	10 terminated creditable service, including any retirement,
4700	4700	11 survivor, or other benefit; except that to the extent that
4701	4701	12 participation, benefits, or premiums under the State Employees
4702	4702	13 Group Insurance Act of 1971 are based on the amount of service
4703	4703	14 credit, the terminated service credit shall be used for that
4704	4704	15 purpose.
4705	4705	16 (d) If a person who has received an accelerated pension
4706	4706	17 benefit payment under this Section returns to active service
4707	4707	18 under this Article, then:
4708	4708	19 (1) Any benefits under the System earned as a result
4709	4709	20 of that return to active service shall be based solely on
4710	4710	21 the person's creditable service arising from the return to
4711	4711	22 active service.
4712	4712	23 (2) The accelerated pension benefit payment may not be
4713	4713	24 repaid to the System, and the terminated creditable
4714	4714	25 service may not under any circumstances be reinstated.
4715	4715	26 (e) As a condition of receiving an accelerated pension
4716	4716
4717	4717
4718	4718
4719	4719
4720	4720
4721	4721	HB4873 - 131 - LRB103 35886 RPS 65971 b
4722	4722
4723	4723
4724	4724	HB4873- 132 -LRB103 35886 RPS 65971 b HB4873 - 132 - LRB103 35886 RPS 65971 b
4725	4725	HB4873 - 132 - LRB103 35886 RPS 65971 b
4726	4726	1 benefit payment, the accelerated pension benefit payment must
4727	4727	2 be transferred into a tax qualified retirement plan or
4728	4728	3 account. The accelerated pension benefit payment under this
4729	4729	4 Section may be subject to withholding or payment of applicable
4730	4730	5 taxes, but to the extent permitted by federal law, a person who
4731	4731	6 receives an accelerated pension benefit payment under this
4732	4732	7 Section must direct the System to pay all of that payment as a
4733	4733	8 rollover into another retirement plan or account qualified
4734	4734	9 under the Internal Revenue Code of 1986, as amended.
4735	4735	10 (f) Upon receipt of a member's irrevocable election to
4736	4736	11 receive an accelerated pension benefit payment under this
4737	4737	12 Section, the System shall submit a voucher to the Comptroller
4738	4738	13 for payment of the member's accelerated pension benefit
4739	4739	14 payment. The Comptroller shall transfer the amount of the
4740	4740	15 voucher from the General Revenue Fund to the System, and the
4741	4741	16 System shall transfer the amount into the member's eligible
4742	4742	17 retirement plan or qualified account.
4743	4743	18 (g) The Board shall adopt any rules, including emergency
4744	4744	19 rules, necessary to implement this Section.
4745	4745	20 (h) No provision of this Section shall be interpreted in a
4746	4746	21 way that would cause the applicable System to cease to be a
4747	4747	22 qualified plan under the Internal Revenue Code of 1986.
4748	4748	23 (40 ILCS 5/2-154.6 new)
4749	4749	24 Sec. 2-154.6. Accelerated pension benefit payment for a
4750	4750	25 reduction in annual retirement annuity and survivor's annuity
4751	4751
4752	4752
4753	4753
4754	4754
4755	4755
4756	4756	HB4873 - 132 - LRB103 35886 RPS 65971 b
4757	4757
4758	4758
4759	4759	HB4873- 133 -LRB103 35886 RPS 65971 b HB4873 - 133 - LRB103 35886 RPS 65971 b
4760	4760	HB4873 - 133 - LRB103 35886 RPS 65971 b
4761	4761	1 increases.
4762	4762	2 (a) As used in this Section:
4763	4763	3 "Accelerated pension benefit payment" means a lump sum
4764	4764	4 payment equal to 70% of the difference of the present value of
4765	4765	5 the automatic annual increases to a Tier 1 participant's
4766	4766	6 retirement annuity and survivor's annuity using the formula
4767	4767	7 applicable to the Tier 1 participant and the present value of
4768	4768	8 the automatic annual increases to the Tier 1 participant's
4769	4769	9 retirement annuity using the formula provided under subsection
4770	4770	10 (b-5) and survivor's annuity using the formula provided under
4771	4771	11 subsection (b-6).
4772	4772	12 "Eligible person" means a person who:
4773	4773	13 (1) is a Tier 1 participant;
4774	4774	14 (2) has submitted an application for a retirement
4775	4775	15 annuity under this Article;
4776	4776	16 (3) meets the age and service requirements for
4777	4777	17 receiving a retirement annuity under this Article;
4778	4778	18 (4) has not received any retirement annuity under this
4779	4779	19 Article; and
4780	4780	20 (5) has not made the election under Section 2-154.5.
4781	4781	21 (b) As soon as practical after the effective date of this
4782	4782	22 amendatory Act of the 103rd General Assembly and until June
4783	4783	23 30, 2027, the System shall implement an accelerated pension
4784	4784	24 benefit payment option for eligible persons. Upon the request
4785	4785	25 of an eligible person, the System shall calculate, using
4786	4786	26 actuarial tables and other assumptions adopted by the Board,
4787	4787
4788	4788
4789	4789
4790	4790
4791	4791
4792	4792	HB4873 - 133 - LRB103 35886 RPS 65971 b
4793	4793
4794	4794
4795	4795	HB4873- 134 -LRB103 35886 RPS 65971 b HB4873 - 134 - LRB103 35886 RPS 65971 b
4796	4796	HB4873 - 134 - LRB103 35886 RPS 65971 b
4797	4797	1 an accelerated pension benefit payment amount and shall offer
4798	4798	2 that eligible person the opportunity to irrevocably elect to
4799	4799	3 have his or her automatic annual increases in retirement
4800	4800	4 annuity calculated in accordance with the formula provided
4801	4801	5 under subsection (b-5) and any increases in survivor's annuity
4802	4802	6 payable to his or her survivor's annuity beneficiary
4803	4803	7 calculated in accordance with the formula provided under
4804	4804	8 subsection (b-6) in exchange for the accelerated pension
4805	4805	9 benefit payment. The election under this subsection must be
4806	4806	10 made before the eligible person receives the first payment of
4807	4807	11 a retirement annuity otherwise payable under this Article.
4808	4808	12 (b-5) Notwithstanding any other provision of law, the
4809	4809	13 retirement annuity of a person who made the election under
4810	4810	14 subsection (b) shall be subject to annual increases on the
4811	4811	15 January 1 occurring either on or after the attainment of age 67
4812	4812	16 or the first anniversary of the annuity start date, whichever
4813	4813	17 is later. Each annual increase shall be calculated at 1.5% of
4814	4814	18 the originally granted retirement annuity.
4815	4815	19 (b-6) Notwithstanding any other provision of law, a
4816	4816	20 survivor's annuity payable to a survivor's annuity beneficiary
4817	4817	21 of a person who made the election under subsection (b) shall be
4818	4818	22 subject to annual increases on the January 1 occurring on or
4819	4819	23 after the first anniversary of the commencement of the
4820	4820	24 annuity. Each annual increase shall be calculated at 1.5% of
4821	4821	25 the originally granted survivor's annuity.
4822	4822	26 (c) If a person who has received an accelerated pension
4823	4823
4824	4824
4825	4825
4826	4826
4827	4827
4828	4828	HB4873 - 134 - LRB103 35886 RPS 65971 b
4829	4829
4830	4830
4831	4831	HB4873- 135 -LRB103 35886 RPS 65971 b HB4873 - 135 - LRB103 35886 RPS 65971 b
4832	4832	HB4873 - 135 - LRB103 35886 RPS 65971 b
4833	4833	1 benefit payment returns to active service under this Article,
4834	4834	2 then:
4835	4835	3 (1) the calculation of any future automatic annual
4836	4836	4 increase in retirement annuity shall be calculated in
4837	4837	5 accordance with the formula provided under subsection
4838	4838	6 (b-5); and
4839	4839	7 (2) the accelerated pension benefit payment may not be
4840	4840	8 repaid to the System.
4841	4841	9 (d) As a condition of receiving an accelerated pension
4842	4842	10 benefit payment, the accelerated pension benefit payment must
4843	4843	11 be transferred into a tax qualified retirement plan or
4844	4844	12 account. The accelerated pension benefit payment under this
4845	4845	13 Section may be subject to withholding or payment of applicable
4846	4846	14 taxes, but to the extent permitted by federal law, a person who
4847	4847	15 receives an accelerated pension benefit payment under this
4848	4848	16 Section must direct the System to pay all of that payment as a
4849	4849	17 rollover into another retirement plan or account qualified
4850	4850	18 under the Internal Revenue Code of 1986, as amended.
4851	4851	19 (d-5) Upon receipt of a participant's irrevocable election
4852	4852	20 to receive an accelerated pension benefit payment under this
4853	4853	21 Section, the System shall submit a voucher to the Comptroller
4854	4854	22 for payment of the participant's accelerated pension benefit
4855	4855	23 payment. The Comptroller shall transfer the amount of the
4856	4856	24 voucher from the General Revenue Fund to the System, and the
4857	4857	25 System shall transfer the amount into the member's eligible
4858	4858	26 retirement plan or qualified account.
4859	4859
4860	4860
4861	4861
4862	4862
4863	4863
4864	4864	HB4873 - 135 - LRB103 35886 RPS 65971 b
4865	4865
4866	4866
4867	4867	HB4873- 136 -LRB103 35886 RPS 65971 b HB4873 - 136 - LRB103 35886 RPS 65971 b
4868	4868	HB4873 - 136 - LRB103 35886 RPS 65971 b
4869	4869	1 (e) The Board shall adopt any rules, including emergency
4870	4870	2 rules, necessary to implement this Section.
4871	4871	3 (f) No provision of this Section shall be interpreted in a
4872	4872	4 way that would cause the applicable System to cease to be a
4873	4873	5 qualified plan under the Internal Revenue Code of 1986.
4874	4874	6 (40 ILCS 5/17-156.10 new)
4875	4875	7 Sec. 17-156.10. Accelerated pension benefit payment in
4876	4876	8 lieu of any pension benefit.
4877	4877	9 (a) As used in this Section:
4878	4878	10 "Eligible person" means a person who:
4879	4879	11 (1) has terminated service;
4880	4880	12 (2) has accrued sufficient service credit to be
4881	4881	13 eligible to receive a service retirement pension under
4882	4882	14 this Article;
4883	4883	15 (3) has not received any service retirement pension
4884	4884	16 under this Article; and
4885	4885	17 (4) has not made the election under Section 17-156.11.
4886	4886	18 "Pension benefit" means the benefits under this Article,
4887	4887	19 including any anticipated annual increases, that an eligible
4888	4888	20 person is entitled to upon attainment of the applicable
4889	4889	21 retirement age. "Pension benefit" also includes applicable
4890	4890	22 survivor's pensions, duty disability pensions, and disability
4891	4891	23 retirement pensions.
4892	4892	24 (b) As soon as practical after the effective date of this
4893	4893	25 amendatory Act of the 103rd General Assembly, the Fund shall
4894	4894
4895	4895
4896	4896
4897	4897
4898	4898
4899	4899	HB4873 - 136 - LRB103 35886 RPS 65971 b
4900	4900
4901	4901
4902	4902	HB4873- 137 -LRB103 35886 RPS 65971 b HB4873 - 137 - LRB103 35886 RPS 65971 b
4903	4903	HB4873 - 137 - LRB103 35886 RPS 65971 b
4904	4904	1 calculate, using actuarial tables and other assumptions
4905	4905	2 adopted by the Board, the present value of pension benefits
4906	4906	3 for each eligible person who requests that information and
4907	4907	4 shall offer each eligible person the opportunity to
4908	4908	5 irrevocably elect to receive an amount determined by the Fund
4909	4909	6 to be equal to 60% of the present value of his or her pension
4910	4910	7 benefits in lieu of receiving any pension benefit. The offer
4911	4911	8 shall specify the dollar amount that the eligible person will
4912	4912	9 receive if he or she so elects and shall expire when a
4913	4913	10 subsequent offer is made to an eligible person. An eligible
4914	4914	11 person is limited to one calculation and offer per calendar
4915	4915	12 year. The Fund shall make a good faith effort to contact every
4916	4916	13 eligible person to notify him or her of the election. Until
4917	4917	14 June 30, 2027, an eligible person may irrevocably elect to
4918	4918	15 receive an accelerated pension benefit payment in the amount
4919	4919	16 that the Fund offers under this subsection in lieu of
4920	4920	17 receiving any pension benefit. A person who elects to receive
4921	4921	18 an accelerated pension benefit payment under this Section may
4922	4922	19 not elect to proceed under the Retirement Systems Reciprocal
4923	4923	20 Act with respect to service under this Article.
4924	4924	21 (c) A person's creditable service under this Article shall
4925	4925	22 be terminated upon the person's receipt of an accelerated
4926	4926	23 pension benefit payment under this Section, and no other
4927	4927	24 benefit shall be paid under this Article based on the
4928	4928	25 terminated creditable service, including any retirement,
4929	4929	26 survivor, or other pension benefit; except that to the extent
4930	4930
4931	4931
4932	4932
4933	4933
4934	4934
4935	4935	HB4873 - 137 - LRB103 35886 RPS 65971 b
4936	4936
4937	4937
4938	4938	HB4873- 138 -LRB103 35886 RPS 65971 b HB4873 - 138 - LRB103 35886 RPS 65971 b
4939	4939	HB4873 - 138 - LRB103 35886 RPS 65971 b
4940	4940	1 that participation, benefits, or premiums under the State
4941	4941	2 Employees Group Insurance Act of 1971 are based on the amount
4942	4942	3 of service credit, the terminated service credit shall be used
4943	4943	4 for that purpose.
4944	4944	5 (d) If a person who has received an accelerated pension
4945	4945	6 benefit payment under this Section returns to active service
4946	4946	7 under this Article, then:
4947	4947	8 (1) Any benefits under the Fund earned as a result of
4948	4948	9 that return to active service shall be based solely on the
4949	4949	10 person's creditable service arising from the return to
4950	4950	11 active service.
4951	4951	12 (2) The accelerated pension benefit payment may not be
4952	4952	13 repaid to the Fund, and the terminated creditable service
4953	4953	14 may not under any circumstances be reinstated.
4954	4954	15 (e) As a condition of receiving an accelerated pension
4955	4955	16 benefit payment, the accelerated pension benefit payment must
4956	4956	17 be transferred into a tax qualified retirement plan or
4957	4957	18 account. The accelerated pension benefit payment under this
4958	4958	19 Section may be subject to withholding or payment of applicable
4959	4959	20 taxes, but to the extent permitted by federal law, a person who
4960	4960	21 receives an accelerated pension benefit payment under this
4961	4961	22 Section must direct the Fund to pay all of that payment as a
4962	4962	23 rollover into another retirement plan or account qualified
4963	4963	24 under the Internal Revenue Code of 1986, as amended.
4964	4964	25 (f) Upon receipt of a member's irrevocable election to
4965	4965	26 receive an accelerated pension benefit payment under this
4966	4966
4967	4967
4968	4968
4969	4969
4970	4970
4971	4971	HB4873 - 138 - LRB103 35886 RPS 65971 b
4972	4972
4973	4973
4974	4974	HB4873- 139 -LRB103 35886 RPS 65971 b HB4873 - 139 - LRB103 35886 RPS 65971 b
4975	4975	HB4873 - 139 - LRB103 35886 RPS 65971 b
4976	4976	1 Section, the Fund shall submit a voucher to the Comptroller
4977	4977	2 for payment of the member's accelerated pension benefit
4978	4978	3 payment. The Comptroller shall transfer the amount of the
4979	4979	4 voucher from the General Revenue Fund to the Fund, and the Fund
4980	4980	5 shall transfer the amount into the member's eligible
4981	4981	6 retirement plan or qualified account.
4982	4982	7 (g) The Board shall adopt any rules necessary to implement
4983	4983	8 this Section.
4984	4984	9 (h) No provision of this Section shall be interpreted in a
4985	4985	10 way that would cause the Fund to cease to be a qualified plan
4986	4986	11 under the Internal Revenue Code of 1986.
4987	4987	12 (40 ILCS 5/17-156.11 new)
4988	4988	13 Sec. 17-156.11. Accelerated pension benefit payment for a
4989	4989	14 reduction in annual service retirement pension and survivor's
4990	4990	15 pension increases.
4991	4991	16 (a) As used in this Section:
4992	4992	17 "Accelerated pension benefit payment" means a lump sum
4993	4993	18 payment equal to 70% of the difference of the present value of
4994	4994	19 the automatic annual increases to a Tier 1 member's service
4995	4995	20 retirement pension and survivor's pension using the formula
4996	4996	21 applicable to the Tier 1 member and the present value of the
4997	4997	22 automatic annual increases to the Tier 1 member's service
4998	4998	23 retirement pension using the formula provided under subsection
4999	4999	24 (b-5) and survivor's pension using the formula provided under
5000	5000	25 subsection (b-6).
5001	5001
5002	5002
5003	5003
5004	5004
5005	5005
5006	5006	HB4873 - 139 - LRB103 35886 RPS 65971 b
5007	5007
5008	5008
5009	5009	HB4873- 140 -LRB103 35886 RPS 65971 b HB4873 - 140 - LRB103 35886 RPS 65971 b
5010	5010	HB4873 - 140 - LRB103 35886 RPS 65971 b
5011	5011	1 "Eligible person" means a person who:
5012	5012	2 (1) is a Tier 1 member;
5013	5013	3 (2) has submitted an application for a service
5014	5014	4 retirement pension under this Article;
5015	5015	5 (3) meets the age and service requirements for
5016	5016	6 receiving a service retirement pension under this Article;
5017	5017	7 (4) has not received any service retirement pension
5018	5018	8 under this Article; and
5019	5019	9 (5) has not made the election under Section 17-156.10.
5020	5020	10 "Tier 1 member" means a person who first became a member
5021	5021	11 before January 1, 2011.
5022	5022	12 (b) As soon as practical after the effective date of this
5023	5023	13 amendatory Act of the 103rd General Assembly and until June
5024	5024	14 30, 2027, the Fund shall implement an accelerated pension
5025	5025	15 benefit payment option for eligible persons. Upon the request
5026	5026	16 of an eligible person, the Fund shall calculate, using
5027	5027	17 actuarial tables and other assumptions adopted by the Board,
5028	5028	18 an accelerated pension benefit payment amount and shall offer
5029	5029	19 that eligible person the opportunity to irrevocably elect to
5030	5030	20 have his or her automatic annual increases in service
5031	5031	21 retirement pension calculated in accordance with the formula
5032	5032	22 provided under subsection (b-5) and any increases in
5033	5033	23 survivor's pension payable to his or her survivor's pension
5034	5034	24 beneficiary calculated in accordance with the formula provided
5035	5035	25 under subsection (b-6) in exchange for the accelerated pension
5036	5036	26 benefit payment. The election under this subsection must be
5037	5037
5038	5038
5039	5039
5040	5040
5041	5041
5042	5042	HB4873 - 140 - LRB103 35886 RPS 65971 b
5043	5043
5044	5044
5045	5045	HB4873- 141 -LRB103 35886 RPS 65971 b HB4873 - 141 - LRB103 35886 RPS 65971 b
5046	5046	HB4873 - 141 - LRB103 35886 RPS 65971 b
5047	5047	1 made before the eligible person receives the first payment of
5048	5048	2 a service retirement pension otherwise payable under this
5049	5049	3 Article.
5050	5050	4 (b-5) Notwithstanding any other provision of law, the
5051	5051	5 service retirement pension of a person who made the election
5052	5052	6 under subsection (b) shall be subject to annual increases on
5053	5053	7 the January 1 occurring either on or after the attainment of
5054	5054	8 age 67 or the first anniversary of the pension start date,
5055	5055	9 whichever is later. Each annual increase shall be calculated
5056	5056	10 at 1.5% of the originally granted service retirement pension.
5057	5057	11 (b-6) Notwithstanding any other provision of law, a
5058	5058	12 survivor's pension payable to a survivor's pension beneficiary
5059	5059	13 of a person who made the election under subsection (b) shall be
5060	5060	14 subject to annual increases on the January 1 occurring on or
5061	5061	15 after the first anniversary of the commencement of the
5062	5062	16 pension. Each annual increase shall be calculated at 1.5% of
5063	5063	17 the originally granted survivor's pension.
5064	5064	18 (c) If a person who has received an accelerated pension
5065	5065	19 benefit payment returns to active service under this Article,
5066	5066	20 then:
5067	5067	21 (1) the calculation of any future automatic annual
5068	5068	22 increase in service retirement pension shall be calculated
5069	5069	23 in accordance with the formula provided under subsection
5070	5070	24 (b-5); and
5071	5071	25 (2) the accelerated pension benefit payment may not be
5072	5072	26 repaid to the Fund.
5073	5073
5074	5074
5075	5075
5076	5076
5077	5077
5078	5078	HB4873 - 141 - LRB103 35886 RPS 65971 b
5079	5079
5080	5080
5081	5081	HB4873- 142 -LRB103 35886 RPS 65971 b HB4873 - 142 - LRB103 35886 RPS 65971 b
5082	5082	HB4873 - 142 - LRB103 35886 RPS 65971 b
5083	5083	1 (d) As a condition of receiving an accelerated pension
5084	5084	2 benefit payment, the accelerated pension benefit payment must
5085	5085	3 be transferred into a tax qualified retirement plan or
5086	5086	4 account. The accelerated pension benefit payment under this
5087	5087	5 Section may be subject to withholding or payment of applicable
5088	5088	6 taxes, but to the extent permitted by federal law, a person who
5089	5089	7 receives an accelerated pension benefit payment under this
5090	5090	8 Section must direct the Fund to pay all of that payment as a
5091	5091	9 rollover into another retirement plan or account qualified
5092	5092	10 under the Internal Revenue Code of 1986, as amended.
5093	5093	11 (d-5) Upon receipt of a member's irrevocable election to
5094	5094	12 receive an accelerated pension benefit payment under this
5095	5095	13 Section, the Fund shall submit a voucher to the Comptroller
5096	5096	14 for payment of the member's accelerated pension benefit
5097	5097	15 payment. The Comptroller shall transfer the amount of the
5098	5098	16 voucher from the General Revenue Fund to the Fund, and the Fund
5099	5099	17 shall transfer the amount into the member's eligible
5100	5100	18 retirement plan or qualified account.
5101	5101	19 (e) The Board shall adopt any rules, including emergency
5102	5102	20 rules, necessary to implement this Section.
5103	5103	21 (f) No provision of this Section shall be interpreted in a
5104	5104	22 way that would cause the Fund to cease to be a qualified plan
5105	5105	23 under the Internal Revenue Code of 1986.
5106	5106	24 (40 ILCS 5/18-161.5 new)
5107	5107	25 Sec. 18-161.5. Accelerated pension benefit payment in lieu
5108	5108
5109	5109
5110	5110
5111	5111
5112	5112
5113	5113	HB4873 - 142 - LRB103 35886 RPS 65971 b
5114	5114
5115	5115
5116	5116	HB4873- 143 -LRB103 35886 RPS 65971 b HB4873 - 143 - LRB103 35886 RPS 65971 b
5117	5117	HB4873 - 143 - LRB103 35886 RPS 65971 b
5118	5118	1 of any pension benefit.
5119	5119	2 (a) As used in this Section:
5120	5120	3 "Eligible person" means a person who:
5121	5121	4 (1) has terminated service;
5122	5122	5 (2) has accrued sufficient service credit to be
5123	5123	6 eligible to receive a retirement annuity under this
5124	5124	7 Article;
5125	5125	8 (3) has not received any retirement annuity under this
5126	5126	9 Article; and
5127	5127	10 (4) has not made the election under Section 18-161.6.
5128	5128	11 "Pension benefit" means the benefits under this Article,
5129	5129	12 including any anticipated annual increases, that an eligible
5130	5130	13 person is entitled to upon attainment of the applicable
5131	5131	14 retirement age. "Pension benefit" also includes applicable
5132	5132	15 survivor's or disability benefits.
5133	5133	16 (b) As soon as practical after the effective date of this
5134	5134	17 amendatory Act of the 103rd General Assembly, the System shall
5135	5135	18 calculate, using actuarial tables and other assumptions
5136	5136	19 adopted by the Board, the present value of pension benefits
5137	5137	20 for each eligible person who requests that information and
5138	5138	21 shall offer each eligible person the opportunity to
5139	5139	22 irrevocably elect to receive an amount determined by the
5140	5140	23 System to be equal to 60% of the present value of his or her
5141	5141	24 pension benefits in lieu of receiving any pension benefit. The
5142	5142	25 offer shall specify the dollar amount that the eligible person
5143	5143	26 will receive if he or she so elects and shall expire when a
5144	5144
5145	5145
5146	5146
5147	5147
5148	5148
5149	5149	HB4873 - 143 - LRB103 35886 RPS 65971 b
5150	5150
5151	5151
5152	5152	HB4873- 144 -LRB103 35886 RPS 65971 b HB4873 - 144 - LRB103 35886 RPS 65971 b
5153	5153	HB4873 - 144 - LRB103 35886 RPS 65971 b
5154	5154	1 subsequent offer is made to an eligible person. An eligible
5155	5155	2 person is limited to one calculation and offer per calendar
5156	5156	3 year. The System shall make a good faith effort to contact
5157	5157	4 every eligible person to notify him or her of the election.
5158	5158	5 Until June 30, 2027, an eligible person may irrevocably elect
5159	5159	6 to receive an accelerated pension benefit payment in the
5160	5160	7 amount that the System offers under this subsection in lieu of
5161	5161	8 receiving any pension benefit. A person who elects to receive
5162	5162	9 an accelerated pension benefit payment under this Section may
5163	5163	10 not elect to proceed under the Retirement Systems Reciprocal
5164	5164	11 Act with respect to service under this Article.
5165	5165	12 (c) A person's creditable service under this Article shall
5166	5166	13 be terminated upon the person's receipt of an accelerated
5167	5167	14 pension benefit payment under this Section, and no other
5168	5168	15 benefit shall be paid under this Article based on the
5169	5169	16 terminated creditable service, including any retirement,
5170	5170	17 survivor, or other benefit; except that to the extent that
5171	5171	18 participation, benefits, or premiums under the State Employees
5172	5172	19 Group Insurance Act of 1971 are based on the amount of service
5173	5173	20 credit, the terminated service credit shall be used for that
5174	5174	21 purpose.
5175	5175	22 (d) If a person who has received an accelerated pension
5176	5176	23 benefit payment under this Section returns to active service
5177	5177	24 under this Article, then:
5178	5178	25 (1) Any benefits under the System earned as a result
5179	5179	26 of that return to active service shall be based solely on
5180	5180
5181	5181
5182	5182
5183	5183
5184	5184
5185	5185	HB4873 - 144 - LRB103 35886 RPS 65971 b
5186	5186
5187	5187
5188	5188	HB4873- 145 -LRB103 35886 RPS 65971 b HB4873 - 145 - LRB103 35886 RPS 65971 b
5189	5189	HB4873 - 145 - LRB103 35886 RPS 65971 b
5190	5190	1 the person's creditable service arising from the return to
5191	5191	2 active service.
5192	5192	3 (2) The accelerated pension benefit payment may not be
5193	5193	4 repaid to the System, and the terminated creditable
5194	5194	5 service may not under any circumstances be reinstated.
5195	5195	6 (e) As a condition of receiving an accelerated pension
5196	5196	7 benefit payment, the accelerated pension benefit payment must
5197	5197	8 be transferred into a tax qualified retirement plan or
5198	5198	9 account. The accelerated pension benefit payment under this
5199	5199	10 Section may be subject to withholding or payment of applicable
5200	5200	11 taxes, but to the extent permitted by federal law, a person who
5201	5201	12 receives an accelerated pension benefit payment under this
5202	5202	13 Section must direct the System to pay all of that payment as a
5203	5203	14 rollover into another retirement plan or account qualified
5204	5204	15 under the Internal Revenue Code of 1986, as amended.
5205	5205	16 (f) Upon receipt of a member's irrevocable election to
5206	5206	17 receive an accelerated pension benefit payment under this
5207	5207	18 Section, the System shall submit a voucher to the Comptroller
5208	5208	19 for payment of the member's accelerated pension benefit
5209	5209	20 payment. The Comptroller shall transfer the amount of the
5210	5210	21 voucher from the General Revenue Fund to the System, and the
5211	5211	22 System shall transfer the amount into the member's eligible
5212	5212	23 retirement plan or qualified account.
5213	5213	24 (g) The Board shall adopt any rules, including emergency
5214	5214	25 rules, necessary to implement this Section.
5215	5215	26 (h) No provision of this Section shall be interpreted in a
5216	5216
5217	5217
5218	5218
5219	5219
5220	5220
5221	5221	HB4873 - 145 - LRB103 35886 RPS 65971 b
5222	5222
5223	5223
5224	5224	HB4873- 146 -LRB103 35886 RPS 65971 b HB4873 - 146 - LRB103 35886 RPS 65971 b
5225	5225	HB4873 - 146 - LRB103 35886 RPS 65971 b
5226	5226	1 way that would cause the applicable System to cease to be a
5227	5227	2 qualified plan under the Internal Revenue Code of 1986.
5228	5228	3 (40 ILCS 5/18-161.6 new)
5229	5229	4 Sec. 18-161.6. Accelerated pension benefit payment for a
5230	5230	5 reduction in annual retirement annuity and survivor's annuity
5231	5231	6 increases.
5232	5232	7 (a) As used in this Section:
5233	5233	8 "Accelerated pension benefit payment" means a lump sum
5234	5234	9 payment equal to 70% of the difference of the present value of
5235	5235	10 the automatic annual increases to a Tier 1 participant's
5236	5236	11 retirement annuity and survivor's annuity using the formula
5237	5237	12 applicable to the Tier 1 participant and the present value of
5238	5238	13 the automatic annual increases to the Tier 1 participant's
5239	5239	14 retirement annuity using the formula provided under subsection
5240	5240	15 (b-5) and survivor's annuity using the formula provided under
5241	5241	16 subsection (b-6).
5242	5242	17 "Eligible person" means a person who:
5243	5243	18 (1) is a Tier 1 participant;
5244	5244	19 (2) has submitted an application for a retirement
5245	5245	20 annuity under this Article;
5246	5246	21 (3) meets the age and service requirements for
5247	5247	22 receiving a retirement annuity under this Article;
5248	5248	23 (4) has not received any retirement annuity under this
5249	5249	24 Article; and
5250	5250	25 (5) has not made the election under Section 18-161.5.
5251	5251
5252	5252
5253	5253
5254	5254
5255	5255
5256	5256	HB4873 - 146 - LRB103 35886 RPS 65971 b
5257	5257
5258	5258
5259	5259	HB4873- 147 -LRB103 35886 RPS 65971 b HB4873 - 147 - LRB103 35886 RPS 65971 b
5260	5260	HB4873 - 147 - LRB103 35886 RPS 65971 b
5261	5261	1 "Tier 1 participant" means a person who first became a
5262	5262	2 participant before January 1, 2011.
5263	5263	3 (b) As soon as practical after the effective date of this
5264	5264	4 amendatory Act of the 103rd General Assembly and until June
5265	5265	5 30, 2027, the System shall implement an accelerated pension
5266	5266	6 benefit payment option for eligible persons. Upon the request
5267	5267	7 of an eligible person, the System shall calculate, using
5268	5268	8 actuarial tables and other assumptions adopted by the Board,
5269	5269	9 an accelerated pension benefit payment amount and shall offer
5270	5270	10 that eligible person the opportunity to irrevocably elect to
5271	5271	11 have his or her automatic annual increases in retirement
5272	5272	12 annuity calculated in accordance with the formula provided
5273	5273	13 under subsection (b-5) and any increases in survivor's annuity
5274	5274	14 payable to his or her survivor's annuity beneficiary
5275	5275	15 calculated in accordance with the formula provided under
5276	5276	16 subsection (b-6) in exchange for the accelerated pension
5277	5277	17 benefit payment. The election under this subsection must be
5278	5278	18 made before the eligible person receives the first payment of
5279	5279	19 a retirement annuity otherwise payable under this Article.
5280	5280	20 (b-5) Notwithstanding any other provision of law, the
5281	5281	21 retirement annuity of a person who made the election under
5282	5282	22 subsection (b) shall be subject to annual increases on the
5283	5283	23 January 1 occurring either on or after the attainment of age 67
5284	5284	24 or the first anniversary of the annuity start date, whichever
5285	5285	25 is later. Each annual increase shall be calculated at 1.5% of
5286	5286	26 the originally granted retirement annuity.
5287	5287
5288	5288
5289	5289
5290	5290
5291	5291
5292	5292	HB4873 - 147 - LRB103 35886 RPS 65971 b
5293	5293
5294	5294
5295	5295	HB4873- 148 -LRB103 35886 RPS 65971 b HB4873 - 148 - LRB103 35886 RPS 65971 b
5296	5296	HB4873 - 148 - LRB103 35886 RPS 65971 b
5297	5297	1 (b-6) Notwithstanding any other provision of law, a
5298	5298	2 survivor's annuity payable to a survivor's annuity beneficiary
5299	5299	3 of a person who made the election under subsection (b) shall be
5300	5300	4 subject to annual increases on the January 1 occurring on or
5301	5301	5 after the first anniversary of the commencement of the
5302	5302	6 annuity. Each annual increase shall be calculated at 1.5% of
5303	5303	7 the originally granted survivor's annuity.
5304	5304	8 (c) If a person who has received an accelerated pension
5305	5305	9 benefit payment returns to active service under this Article,
5306	5306	10 then:
5307	5307	11 (1) the calculation of any future automatic annual
5308	5308	12 increase in retirement annuity shall be calculated in
5309	5309	13 accordance with the formula provided under subsection
5310	5310	14 (b-5); and
5311	5311	15 (2) the accelerated pension benefit payment may not be
5312	5312	16 repaid to the System.
5313	5313	17 (d) As a condition of receiving an accelerated pension
5314	5314	18 benefit payment, the accelerated pension benefit payment must
5315	5315	19 be transferred into a tax qualified retirement plan or
5316	5316	20 account. The accelerated pension benefit payment under this
5317	5317	21 Section may be subject to withholding or payment of applicable
5318	5318	22 taxes, but to the extent permitted by federal law, a person who
5319	5319	23 receives an accelerated pension benefit payment under this
5320	5320	24 Section must direct the System to pay all of that payment as a
5321	5321	25 rollover into another retirement plan or account qualified
5322	5322	26 under the Internal Revenue Code of 1986, as amended.
5323	5323
5324	5324
5325	5325
5326	5326
5327	5327
5328	5328	HB4873 - 148 - LRB103 35886 RPS 65971 b
5329	5329
5330	5330
5331	5331	HB4873- 149 -LRB103 35886 RPS 65971 b HB4873 - 149 - LRB103 35886 RPS 65971 b
5332	5332	HB4873 - 149 - LRB103 35886 RPS 65971 b
5333	5333	1 (d-5) Upon receipt of a participant's irrevocable election
5334	5334	2 to receive an accelerated pension benefit payment under this
5335	5335	3 Section, the System shall submit a voucher to the Comptroller
5336	5336	4 for payment of the participant's accelerated pension benefit
5337	5337	5 payment. The Comptroller shall transfer the amount of the
5338	5338	6 voucher from the General Revenue Fund to the System, and the
5339	5339	7 System shall transfer the amount into the member's eligible
5340	5340	8 retirement plan or qualified account.
5341	5341	9 (e) The Board shall adopt any rules, including emergency
5342	5342	10 rules, necessary to implement this Section.
5343	5343	11 (f) No provision of this Section shall be interpreted in a
5344	5344	12 way that would cause the applicable System to cease to be a
5345	5345	13 qualified plan under the Internal Revenue Code of 1986.
5346	5346	14 Article 4.
5347	5347	15 Section 4-5. The Illinois Pension Code is amended by
5348	5348	16 adding Sections 1-168, 3-118, 4-136, and 7-142.2 as follows:
5349	5349	17 (40 ILCS 5/1-168 new)
5350	5350	18 Sec. 1-168. Deferred retirement option plan.
5351	5351	19 (a) In this Section:
5352	5352	20 "Deferred retirement option plan" or "DROP" means the plan
5353	5353	21 created under this Section that provides an alternative method
5354	5354	22 of benefit accrual in the pension fund or retirement system.
5355	5355	23 "DROP member" means an eligible member who makes an
5356	5356
5357	5357
5358	5358
5359	5359
5360	5360
5361	5361	HB4873 - 149 - LRB103 35886 RPS 65971 b
5362	5362
5363	5363
5364	5364	HB4873- 150 -LRB103 35886 RPS 65971 b HB4873 - 150 - LRB103 35886 RPS 65971 b
5365	5365	HB4873 - 150 - LRB103 35886 RPS 65971 b
5366	5366	1 election to participate in the DROP no later than January 1,
5367	5367	2 2029.
5368	5368	3 "Eligible member" means a participating member under a
5369	5369	4 pension fund or retirement system established under Article
5370	5370	5 14, 15, 16, or 17 who, at the time of the member's election to
5371	5371	6 participate in the DROP:
5372	5372	7 (1) is otherwise eligible to retire under the
5373	5373	8 applicable Article with a full and unreduced pension as
5374	5374	9 determined by the retirement system or pension fund of
5375	5375	10 which the member is an active member at the time of the
5376	5376	11 election to participate in the DROP;
5377	5377	12 (2) is not in receipt of a disability or retirement
5378	5378	13 annuity from the applicable retirement system or pension
5379	5379	14 fund at the time of his or her election to participate in
5380	5380	15 the DROP; and
5381	5381	16 (3) is actively employed in a position that is covered
5382	5382	17 under a collective bargaining agreement.
5383	5383	18 (b) The DROP shall be made available to eligible members
5384	5384	19 no later than January 1, 2026.
5385	5385	20 (c) Eligible members must make their election to
5386	5386	21 participate in the DROP in writing with the State Treasurer in
5387	5387	22 a form acceptable to the State Treasurer. The State Treasurer
5388	5388	23 must process the election and begin crediting an account on
5389	5389	24 behalf of the DROP member as soon as is practicable after the
5390	5390	25 election has been received.
5391	5391	26 At the time of or prior to electing to participate in the
5392	5392
5393	5393
5394	5394
5395	5395
5396	5396
5397	5397	HB4873 - 150 - LRB103 35886 RPS 65971 b
5398	5398
5399	5399
5400	5400	HB4873- 151 -LRB103 35886 RPS 65971 b HB4873 - 151 - LRB103 35886 RPS 65971 b
5401	5401	HB4873 - 151 - LRB103 35886 RPS 65971 b
5402	5402	1 DROP, a member must, unless otherwise provided by law, make
5403	5403	2 all other elections required to be made at or before the date
5404	5404	3 of retirement, including, but not limited to, purchase of
5405	5405	4 optional service, election of an accelerated pension benefit
5406	5406	5 payment, or any other election identified by the retirement
5407	5407	6 system or pension fund.
5408	5408	7 (d) An eligible member may participate in the DROP for a
5409	5409	8 period not to exceed 5 years from the date of the eligible
5410	5410	9 member's election.
5411	5411	10 (e) During the period of the DROP member's participation
5412	5412	11 in the DROP, the applicable pension fund or retirement system
5413	5413	12 shall transfer, and the State Treasurer shall credit into a
5414	5414	13 notional account on behalf of the DROP member, an amount equal
5415	5415	14 to the monthly amount of retirement annuity the DROP member
5416	5416	15 would otherwise be eligible to receive if the DROP member had
5417	5417	16 retired on the date of the election under this Section. A DROP
5418	5418	17 member who is entitled to a benefit from a participating
5419	5419	18 system under the Retirement Systems Reciprocal Act shall be
5420	5420	19 eligible to have the benefit the DROP member would have
5421	5421	20 otherwise been eligible to receive if the DROP member retired
5422	5422	21 on the date of the election under this Section deposited with
5423	5423	22 the State Treasurer in the DROP member's DROP account and
5424	5424	23 administered in a manner consistent with the requirements of
5425	5425	24 this Section. The applicable pension fund or retirement
5426	5426	25 system, prior to forwarding any funds to the State Treasurer,
5427	5427	26 shall deduct any amounts required to be deducted under State
5428	5428
5429	5429
5430	5430
5431	5431
5432	5432
5433	5433	HB4873 - 151 - LRB103 35886 RPS 65971 b
5434	5434
5435	5435
5436	5436	HB4873- 152 -LRB103 35886 RPS 65971 b HB4873 - 152 - LRB103 35886 RPS 65971 b
5437	5437	HB4873 - 152 - LRB103 35886 RPS 65971 b
5438	5438	1 or federal law, including, but not limited to, payments
5439	5439	2 required under a Qualified Illinois Domestic Relations Order
5440	5440	3 under Section 1-119. Any automatic annual increases that would
5441	5441	4 have otherwise been applied to the DROP member's benefit if
5442	5442	5 the DROP member had elected to retire instead of participate
5443	5443	6 in the DROP shall accrue to the DROP member's monthly payment
5444	5444	7 placed into the account prior to the expiration of the DROP and
5445	5445	8 shall otherwise apply to the DROP member's annuity upon
5446	5446	9 expiration of the DROP. The account shall be held on behalf of
5447	5447	10 the DROP member.
5448	5448	11 (f) DROP members shall make contributions to the pension
5449	5449	12 fund or retirement system during their participation in the
5450	5450	13 DROP in an amount equal to the employee contributions under
5451	5451	14 the applicable Article that would otherwise be required if the
5452	5452	15 DROP member were an active participant of the pension fund or
5453	5453	16 retirement system. Those amounts shall be forwarded to the
5454	5454	17 State Treasurer and credited to the member's DROP account,
5455	5455	18 minus any administrative costs determined by the pension fund
5456	5456	19 or retirement system to be attributable to the administration
5457	5457	20 of the DROP benefits experienced by the pension fund or
5458	5458	21 retirement system.
5459	5459	22 (g) The amounts credited to the DROP account shall be held
5460	5460	23 in notional accounts by the State Treasurer. The amounts in
5461	5461	24 the DROP account shall not accrue interest. The State
5462	5462	25 Treasurer shall reduce the amounts in the DROP account on a
5463	5463	26 schedule set by the State Treasurer to cover all of the
5464	5464
5465	5465
5466	5466
5467	5467
5468	5468
5469	5469	HB4873 - 152 - LRB103 35886 RPS 65971 b
5470	5470
5471	5471
5472	5472	HB4873- 153 -LRB103 35886 RPS 65971 b HB4873 - 153 - LRB103 35886 RPS 65971 b
5473	5473	HB4873 - 153 - LRB103 35886 RPS 65971 b
5474	5474	1 administrative costs of the State Treasurer that are deemed to
5475	5475	2 be attributable to the administration of the DROP account and
5476	5476	3 any duties required under this Section.
5477	5477	4 (h) Upon expiration or termination of the DROP member's
5478	5478	5 participation in the DROP, the account balance shall be paid
5479	5479	6 to the DROP member as a lump sum. The State Treasurer shall
5480	5480	7 provide options for the transfer of the account consistent
5481	5481	8 with its fiduciary duty and any applicable State or federal
5482	5482	9 law. The expiration or termination of a DROP member's
5483	5483	10 participation in the DROP may not occur after January 1, 2034.
5484	5484	11 (i) The DROP election is irrevocable, and the DROP member
5485	5485	12 may not, except as otherwise provided in this Section, access
5486	5486	13 the account prior to the date established as the last day of
5487	5487	14 the DROP when the DROP member made the initial election to
5488	5488	15 participate in the DROP. The DROP member must terminate
5489	5489	16 employment with the employer upon expiration of his or her
5490	5490	17 participation in the DROP. The DROP member's participation in
5491	5491	18 the DROP shall terminate prior to the expiration date:
5492	5492	19 (1) if the DROP member terminates employment with the
5493	5493	20 employer prior to the expiration of the designated DROP
5494	5494	21 period;
5495	5495	22 (2) if the DROP member becomes eligible for and begins
5496	5496	23 collecting a disability benefit from the pension fund or
5497	5497	24 retirement system; or
5498	5498	25 (3) upon the death of the DROP member.
5499	5499	26 Upon termination from the DROP, the member shall commence
5500	5500
5501	5501
5502	5502
5503	5503
5504	5504
5505	5505	HB4873 - 153 - LRB103 35886 RPS 65971 b
5506	5506
5507	5507
5508	5508	HB4873- 154 -LRB103 35886 RPS 65971 b HB4873 - 154 - LRB103 35886 RPS 65971 b
5509	5509	HB4873 - 154 - LRB103 35886 RPS 65971 b
5510	5510	1 his or her retirement annuity from the pension fund or
5511	5511	2 retirement system. After termination or expiration of a
5512	5512	3 member's participation in the DROP, the member may not
5513	5513	4 participate in employment in any way that would require the
5514	5514	5 member to become an active contributing member of the
5515	5515	6 retirement system or pension fund.
5516	5516	7 The State Treasurer may allow for the payment of the
5517	5517	8 balance of the DROP account prior to the last date of
5518	5518	9 participation in the DROP established by the DROP member when
5519	5519	10 the DROP member made the initial election to participate in
5520	5520	11 the DROP if (i) the member's participation in the DROP
5521	5521	12 terminated and (ii) the State Treasurer determines the DROP
5522	5522	13 member should have access to the DROP account balance due to
5523	5523	14 hardship or necessity as determined by the State Treasurer.
5524	5524	15 (j) A DROP member shall be considered in active service
5525	5525	16 for purposes of eligibility for death and disability benefits
5526	5526	17 and access to any health care benefits provided for by the
5527	5527	18 employer and shall retain all rights of employment as
5528	5528	19 established under the DROP member's collective bargaining
5529	5529	20 agreement.
5530	5530	21 The DROP member shall not accrue additional service credit
5531	5531	22 in the pension fund or retirement system while participating
5532	5532	23 in the DROP, regardless of any service accruals, future pay
5533	5533	24 increases, active cost of living adjustments, or promotions.
5534	5534	25 Additionally, the DROP member shall not be eligible to
5535	5535	26 purchase any optional service credit or to repay any refunds.
5536	5536
5537	5537
5538	5538
5539	5539
5540	5540
5541	5541	HB4873 - 154 - LRB103 35886 RPS 65971 b
5542	5542
5543	5543
5544	5544	HB4873- 155 -LRB103 35886 RPS 65971 b HB4873 - 155 - LRB103 35886 RPS 65971 b
5545	5545	HB4873 - 155 - LRB103 35886 RPS 65971 b
5546	5546	1 Eligibility for a surviving spouse benefit shall be
5547	5547	2 determined at the time of the DROP election.
5548	5548	3 Any amounts due to an alternate payee under a Qualified
5549	5549	4 Illinois Domestic Relations Order under Section 1-119 shall be
5550	5550	5 calculated at the time of the DROP election and such amounts
5551	5551	6 shall be payable at the time of election.
5552	5552	7 If the DROP member's designated beneficiary predeceases
5553	5553	8 the DROP member and the DROP member dies before designating a
5554	5554	9 new beneficiary, the DROP member's DROP account shall be paid
5555	5555	10 to the DROP member's estate.
5556	5556	11 When determining if a member is owed a refund of
5557	5557	12 contributions due to the member's death prior to collecting an
5558	5558	13 amount equal to or greater than the member's contributions,
5559	5559	14 the proceeds of the DROP account shall be considered part of
5560	5560	15 the total payment made to the member or the member's estate.
5561	5561	16 (k) It is intended that the DROP shall not jeopardize the
5562	5562	17 tax qualified status of the pension fund or retirement system.
5563	5563	18 The State Treasurer shall have the authority to adopt rules
5564	5564	19 necessary or appropriate for the DROP to maintain compliance
5565	5565	20 with applicable federal laws and regulations. Notwithstanding
5566	5566	21 any other provision of this Code, all benefits provided under
5567	5567	22 the DROP shall be subject to the requirements and limits of the
5568	5568	23 Internal Revenue Code of 1986, as amended.
5569	5569	24 (l) The State Treasurer shall be the administrator of the
5570	5570	25 DROP plan created in this Section. The administration shall be
5571	5571	26 subject to any applicable laws, and the State Treasurer shall
5572	5572
5573	5573
5574	5574
5575	5575
5576	5576
5577	5577	HB4873 - 155 - LRB103 35886 RPS 65971 b
5578	5578
5579	5579
5580	5580	HB4873- 156 -LRB103 35886 RPS 65971 b HB4873 - 156 - LRB103 35886 RPS 65971 b
5581	5581	HB4873 - 156 - LRB103 35886 RPS 65971 b
5582	5582	1 administer the program in the best interest of the DROP
5583	5583	2 members in a way that a prudent person in a similar
5584	5584	3 circumstance would. The executive director of each pension
5585	5585	4 fund and retirement system created under Articles 14, 15, 16,
5586	5586	5 and 17, or the executive directors' designees, shall
5587	5587	6 participate in the DROP Advisory Board, which shall meet
5588	5588	7 quarterly. The State Treasurer, or the State Treasurer's
5589	5589	8 designee, shall chair the DROP Advisory Board. The State
5590	5590	9 Treasurer may solicit advice and information from the members
5591	5591	10 of the DROP Advisory Board or from the DROP Advisory Board as a
5592	5592	11 whole while administering the DROP. Except as otherwise
5593	5593	12 provided by law, the State Treasurer shall be the sole
5594	5594	13 decision maker governing the DROP.
5595	5595	14 (40 ILCS 5/3-118 new)
5596	5596	15 Sec. 3-118. Deferred retirement option plan.
5597	5597	16 (a) As used in this Section:
5598	5598	17 "Deferred retirement option plan" or "DROP" means a plan
5599	5599	18 created under this Section that provides an alternative method
5600	5600	19 of benefit accrual in the fund.
5601	5601	20 "DROP member" means an eligible member who makes an
5602	5602	21 election to participate in the DROP no later than January 1,
5603	5603	22 2029.
5604	5604	23 "DROP period" means the period during which a DROP member
5605	5605	24 participates in the DROP.
5606	5606	25 "Eligible member" means a police officer who, at the time
5607	5607
5608	5608
5609	5609
5610	5610
5611	5611
5612	5612	HB4873 - 156 - LRB103 35886 RPS 65971 b
5613	5613
5614	5614
5615	5615	HB4873- 157 -LRB103 35886 RPS 65971 b HB4873 - 157 - LRB103 35886 RPS 65971 b
5616	5616	HB4873 - 157 - LRB103 35886 RPS 65971 b
5617	5617	1 of electing to participate in the DROP:
5618	5618	2 (1) is otherwise eligible to retire under this Article
5619	5619	3 with a benefit under Section 3-111;
5620	5620	4 (2) has never received a retirement annuity from the
5621	5621	5 fund;
5622	5622	6 (3) is in active service under this Article; and
5623	5623	7 (4) is not subject to mandatory retirement under the
5624	5624	8 law and will not become subject to mandatory retirement
5625	5625	9 under the law during participation in the DROP.
5626	5626	10 (b) The DROP shall be made available to eligible members
5627	5627	11 no later than January 1, 2026.
5628	5628	12 (c) Eligible members must make their election to
5629	5629	13 participate in the DROP in writing with the fund in a form
5630	5630	14 acceptable to the fund. The fund must process the election and
5631	5631	15 begin crediting an account on behalf of the member as soon as
5632	5632	16 is practicable after the election has been received by the
5633	5633	17 fund.
5634	5634	18 At the time of or prior to electing to participate in the
5635	5635	19 DROP, a member must, unless otherwise provided by law, make
5636	5636	20 all other elections required to be made at or before the date
5637	5637	21 of retirement, including, but not limited to, purchase of
5638	5638	22 optional service, conversion of any annuity benefit into an
5639	5639	23 up-front or lump sum payment, or any other election identified
5640	5640	24 by the retirement system or pension fund.
5641	5641	25 (d) An eligible member may participate in the DROP for a
5642	5642	26 period not to exceed 5 years from the date of the eligible
5643	5643
5644	5644
5645	5645
5646	5646
5647	5647
5648	5648	HB4873 - 157 - LRB103 35886 RPS 65971 b
5649	5649
5650	5650
5651	5651	HB4873- 158 -LRB103 35886 RPS 65971 b HB4873 - 158 - LRB103 35886 RPS 65971 b
5652	5652	HB4873 - 158 - LRB103 35886 RPS 65971 b
5653	5653	1 member's election to participate.
5654	5654	2 (e) During the DROP period, the fund shall credit, to a
5655	5655	3 notional account on behalf of the DROP member, an amount equal
5656	5656	4 to the monthly amount of retirement annuity the DROP member
5657	5657	5 would otherwise be eligible to receive if the DROP member had
5658	5658	6 retired on the date of the election under this Section, minus
5659	5659	7 any amounts required to be deducted under State or federal
5660	5660	8 law, including, but not limited to, payments required under a
5661	5661	9 Qualified Illinois Domestic Relations Order under Section
5662	5662	10 1-119. A DROP member who is entitled to a benefit from a
5663	5663	11 participating system under the Retirement Systems Reciprocal
5664	5664	12 Act shall be eligible to have the benefit the DROP member would
5665	5665	13 have otherwise been eligible to receive if the DROP member
5666	5666	14 retired on the date of the election under this Section
5667	5667	15 deposited with the fund in the DROP member's DROP account and
5668	5668	16 administered in a manner consistent with the requirements of
5669	5669	17 this Section. Any automatic annual increases that would have
5670	5670	18 otherwise been applied to the DROP member's retirement annuity
5671	5671	19 if the DROP member had elected to retire instead of
5672	5672	20 participate in the DROP shall accrue to the DROP member's
5673	5673	21 monthly payment credited to the account prior to the
5674	5674	22 expiration of the DROP and shall otherwise apply to the DROP
5675	5675	23 member's annuity upon expiration of the DROP. The account
5676	5676	24 shall be held on behalf of the DROP member.
5677	5677	25 (f) DROP members shall make contributions to the fund
5678	5678	26 during their participation in the DROP in an amount equal to
5679	5679
5680	5680
5681	5681
5682	5682
5683	5683
5684	5684	HB4873 - 158 - LRB103 35886 RPS 65971 b
5685	5685
5686	5686
5687	5687	HB4873- 159 -LRB103 35886 RPS 65971 b HB4873 - 159 - LRB103 35886 RPS 65971 b
5688	5688	HB4873 - 159 - LRB103 35886 RPS 65971 b
5689	5689	1 the employee contributions that would otherwise be required if
5690	5690	2 the DROP member were an active participant of the fund. Those
5691	5691	3 amounts shall be credited to the DROP account.
5692	5692	4 (g) The amounts credited to the DROP account shall be held
5693	5693	5 in notional accounts by the fund. The amounts credited to the
5694	5694	6 DROP account shall not accrue interest.
5695	5695	7 (h) Upon the expiration or termination of the DROP
5696	5696	8 member's participation in the DROP, the account balance shall
5697	5697	9 be paid to the DROP member as a lump sum. The fund shall
5698	5698	10 provide options for the transfer of the account consistent
5699	5699	11 with its fiduciary duty and any applicable State or federal
5700	5700	12 law. The expiration or termination of a DROP member's
5701	5701	13 participation in the DROP may not occur after January 1, 2034.
5702	5702	14 (i) The DROP election is irrevocable, and the DROP member
5703	5703	15 may not access the account prior to termination or expiration
5704	5704	16 of the DROP member's participation in the DROP. The DROP
5705	5705	17 member must terminate employment with the employer upon
5706	5706	18 expiration of his or her participation in the DROP. The DROP
5707	5707	19 member's participation in the DROP shall terminate prior to
5708	5708	20 the expiration date:
5709	5709	21 (1) if the DROP member terminates employment with the
5710	5710	22 employer prior to the expiration of the designated DROP
5711	5711	23 period;
5712	5712	24 (2) if the DROP member becomes eligible for and begins
5713	5713	25 collecting a disability benefit from the fund; or
5714	5714	26 (3) upon the death of the DROP member.
5715	5715
5716	5716
5717	5717
5718	5718
5719	5719
5720	5720	HB4873 - 159 - LRB103 35886 RPS 65971 b
5721	5721
5722	5722
5723	5723	HB4873- 160 -LRB103 35886 RPS 65971 b HB4873 - 160 - LRB103 35886 RPS 65971 b
5724	5724	HB4873 - 160 - LRB103 35886 RPS 65971 b
5725	5725	1 Upon termination or expiration of the DROP period, the
5726	5726	2 DROP member's retirement annuity from the fund shall commence.
5727	5727	3 After termination or expiration of a member's participation in
5728	5728	4 the DROP, the member may not participate in employment in any
5729	5729	5 way that would require the member to become an active
5730	5730	6 contributing member of the fund.
5731	5731	7 (j) The DROP member shall be considered in active service
5732	5732	8 for purposes of eligibility for death and disability benefits
5733	5733	9 and shall retain all rights of employment as established under
5734	5734	10 the DROP member's collective bargaining agreement, if
5735	5735	11 applicable.
5736	5736	12 While participating in the DROP, the DROP member shall not
5737	5737	13 accrue additional service credit, including any service
5738	5738	14 accruals, in the fund, and earnings paid to the DROP member
5739	5739	15 while participating in the DROP shall not be included in the
5740	5740	16 calculation of final average salary, regardless of future pay
5741	5741	17 increases, active cost of living adjustments, or promotions.
5742	5742	18 Additionally, the DROP member shall not be eligible to
5743	5743	19 purchase service credit under this Article.
5744	5744	20 Any amounts due to an alternate payee under a Qualified
5745	5745	21 Illinois Domestic Relations Order under Section 1-119 shall be
5746	5746	22 calculated at the time of the DROP election, and such amounts
5747	5747	23 shall be payable at the time of election.
5748	5748	24 If the DROP member's designated beneficiary predeceases
5749	5749	25 the DROP member and the DROP member dies before designating a
5750	5750	26 new beneficiary, the DROP member's DROP account shall be paid
5751	5751
5752	5752
5753	5753
5754	5754
5755	5755
5756	5756	HB4873 - 160 - LRB103 35886 RPS 65971 b
5757	5757
5758	5758
5759	5759	HB4873- 161 -LRB103 35886 RPS 65971 b HB4873 - 161 - LRB103 35886 RPS 65971 b
5760	5760	HB4873 - 161 - LRB103 35886 RPS 65971 b
5761	5761	1 to the DROP member's estate.
5762	5762	2 When determining if a police officer is owed a refund of
5763	5763	3 contributions due to the police officer's death prior to
5764	5764	4 collecting an amount equal to or greater than the member's
5765	5765	5 contributions, the proceeds of the DROP account shall be
5766	5766	6 considered part of the total payment made to the police
5767	5767	7 officer or the police officer's estate.
5768	5768	8 (k) It is intended that the DROP shall not jeopardize the
5769	5769	9 tax qualified status of the fund. The board of trustees of the
5770	5770	10 fund shall have the authority to adopt rules necessary or
5771	5771	11 appropriate for the DROP to maintain compliance with
5772	5772	12 applicable federal laws and regulations. Notwithstanding any
5773	5773	13 other provision of this Article, all benefits provided under
5774	5774	14 the DROP shall be subject to the requirements and limits of the
5775	5775	15 Internal Revenue Code of 1986, as amended.
5776	5776	16 (l) The costs of administering the DROP account shall be
5777	5777	17 the exclusive responsibility of the DROP member. The fund
5778	5778	18 shall pay any reasonable administrative cost of the account
5779	5779	19 and shall reduce the balance of the DROP account in an amount
5780	5780	20 determined by the fund to meet all costs of the DROP account.
5781	5781	21 (m) The Board may transfer the administrative
5782	5782	22 responsibility of the DROP program to the State Treasurer
5783	5783	23 under Section 1-168 after an affirmative vote of the Board.
5784	5784	24 (40 ILCS 5/4-136 new)
5785	5785	25 Sec. 4-136. Deferred retirement option plan.
5786	5786
5787	5787
5788	5788
5789	5789
5790	5790
5791	5791	HB4873 - 161 - LRB103 35886 RPS 65971 b
5792	5792
5793	5793
5794	5794	HB4873- 162 -LRB103 35886 RPS 65971 b HB4873 - 162 - LRB103 35886 RPS 65971 b
5795	5795	HB4873 - 162 - LRB103 35886 RPS 65971 b
5796	5796	1 (a) As used in this Section:
5797	5797	2 "Deferred retirement option plan" or "DROP" means the plan
5798	5798	3 created under this Section that provides an alternative method
5799	5799	4 of benefit accrual in the fund.
5800	5800	5 "DROP member" means an eligible member who makes an
5801	5801	6 election to participate in the DROP no later than January 1,
5802	5802	7 2029.
5803	5803	8 "DROP period" means the period during which a DROP member
5804	5804	9 participates in the DROP.
5805	5805	10 "Eligible member" means a firefighter who, at the time of
5806	5806	11 electing to participate in the DROP:
5807	5807	12 (1) is otherwise eligible to retire under this Article
5808	5808	13 with a benefit under Section 4-109;
5809	5809	14 (2) has never received a retirement annuity from the
5810	5810	15 fund;
5811	5811	16 (3) is in active service under this Article; and
5812	5812	17 (4) is not subject to mandatory retirement under the
5813	5813	18 law and will not become subject to mandatory retirement
5814	5814	19 under the law during participation in the DROP.
5815	5815	20 (b) The DROP shall be made available to eligible members
5816	5816	21 no later than January 1, 2026.
5817	5817	22 (c) Eligible members must make their election to
5818	5818	23 participate in the DROP in writing with the fund in a form
5819	5819	24 acceptable to the fund. The fund must process the election and
5820	5820	25 begin crediting an account on behalf of the member as soon as
5821	5821	26 is practicable after the election has been received by the
5822	5822
5823	5823
5824	5824
5825	5825
5826	5826
5827	5827	HB4873 - 162 - LRB103 35886 RPS 65971 b
5828	5828
5829	5829
5830	5830	HB4873- 163 -LRB103 35886 RPS 65971 b HB4873 - 163 - LRB103 35886 RPS 65971 b
5831	5831	HB4873 - 163 - LRB103 35886 RPS 65971 b
5832	5832	1 fund.
5833	5833	2 At the time of or prior to electing to participate in the
5834	5834	3 DROP, a member must, unless otherwise provided by law, make
5835	5835	4 all other elections required to be made at or before the date
5836	5836	5 of retirement, including, but not limited to, purchase of
5837	5837	6 optional service, conversion of any annuity benefit into an
5838	5838	7 up-front or lump sum payment, or any other election identified
5839	5839	8 by the retirement system or pension fund.
5840	5840	9 (d) An eligible member may participate in the DROP for a
5841	5841	10 period not to exceed 5 years from the date of the eligible
5842	5842	11 member's election to participate in the DROP.
5843	5843	12 (e) During the DROP period, the fund shall credit, to a
5844	5844	13 notional account on behalf of the DROP member, an amount equal
5845	5845	14 to the monthly amount of retirement annuity the DROP member
5846	5846	15 would otherwise be eligible to receive if the DROP member had
5847	5847	16 retired on the date of the election under this Section, minus
5848	5848	17 any amounts required to be deducted under State or federal
5849	5849	18 law, including, but not limited to, payments required under a
5850	5850	19 Qualified Illinois Domestic Relations Order under Section
5851	5851	20 1-119. A DROP member who is entitled to a benefit from a
5852	5852	21 participating system under the Retirement Systems Reciprocal
5853	5853	22 Act shall be eligible to have the benefit the DROP member would
5854	5854	23 have otherwise been eligible to receive if the DROP member
5855	5855	24 retired on the date of the election under this Section
5856	5856	25 deposited with the fund in the DROP member's DROP account and
5857	5857	26 administered in a manner consistent with the requirements of
5858	5858
5859	5859
5860	5860
5861	5861
5862	5862
5863	5863	HB4873 - 163 - LRB103 35886 RPS 65971 b
5864	5864
5865	5865
5866	5866	HB4873- 164 -LRB103 35886 RPS 65971 b HB4873 - 164 - LRB103 35886 RPS 65971 b
5867	5867	HB4873 - 164 - LRB103 35886 RPS 65971 b
5868	5868	1 this Section. Any automatic annual increases that would have
5869	5869	2 otherwise been applied to the DROP member's retirement annuity
5870	5870	3 if the DROP member had elected to retire instead of
5871	5871	4 participate in the DROP shall accrue to the DROP member's
5872	5872	5 monthly payment credited to the account prior to the
5873	5873	6 expiration of the DROP and shall otherwise apply to the DROP
5874	5874	7 member's annuity upon expiration of the DROP. The account
5875	5875	8 shall be held on behalf of the DROP member.
5876	5876	9 (f) DROP members shall make contributions to the fund
5877	5877	10 during their participation in the DROP in an amount equal to
5878	5878	11 the employee contributions that would otherwise be required if
5879	5879	12 the DROP member were an active participant of the fund. Those
5880	5880	13 amounts shall be credited to the DROP account.
5881	5881	14 (g) The amounts credited to the DROP account shall be held
5882	5882	15 in notional accounts by the fund. The amounts credited to the
5883	5883	16 DROP account shall not accrue interest.
5884	5884	17 (h) Upon the expiration or termination of the DROP
5885	5885	18 member's participation in the DROP, the account balance shall
5886	5886	19 be paid to the DROP member as a lump sum. The fund shall
5887	5887	20 provide options for the transfer of the account consistent
5888	5888	21 with its fiduciary duty and any applicable State or federal
5889	5889	22 law. The expiration or termination of a DROP member's
5890	5890	23 participation in the DROP may not occur after January 1, 2034.
5891	5891	24 (i) The DROP election is irrevocable, and the DROP member
5892	5892	25 may not access the account prior to termination or expiration
5893	5893	26 of the DROP member's participation in the DROP. The DROP
5894	5894
5895	5895
5896	5896
5897	5897
5898	5898
5899	5899	HB4873 - 164 - LRB103 35886 RPS 65971 b
5900	5900
5901	5901
5902	5902	HB4873- 165 -LRB103 35886 RPS 65971 b HB4873 - 165 - LRB103 35886 RPS 65971 b
5903	5903	HB4873 - 165 - LRB103 35886 RPS 65971 b
5904	5904	1 member must terminate employment with the employer upon
5905	5905	2 expiration of his or her participation in the DROP. The DROP
5906	5906	3 member's participation in the DROP shall terminate prior to
5907	5907	4 the expiration date:
5908	5908	5 (1) if the DROP member terminates employment with the
5909	5909	6 employer prior to the expiration of the designated DROP
5910	5910	7 period;
5911	5911	8 (2) if the DROP member becomes eligible for and begins
5912	5912	9 collecting a disability benefit from the fund; or
5913	5913	10 (3) upon the death of the DROP member.
5914	5914	11 Upon termination or expiration of the DROP period, the
5915	5915	12 DROP member's retirement annuity from the fund shall commence.
5916	5916	13 After termination or expiration of a member's participation in
5917	5917	14 the DROP, the member may not participate in employment in any
5918	5918	15 way that would require the member to become an active
5919	5919	16 contributing member of the fund.
5920	5920	17 (j) The DROP member shall be considered in active service
5921	5921	18 for purposes of eligibility for death and disability benefits
5922	5922	19 and shall retain all rights of employment as established under
5923	5923	20 the DROP member's collective bargaining agreement, if
5924	5924	21 applicable.
5925	5925	22 While participating in the DROP, the DROP member shall not
5926	5926	23 accrue additional service credit, including any service
5927	5927	24 accruals, in the fund, and earnings paid to the DROP member
5928	5928	25 while participating in the DROP shall not be included in the
5929	5929	26 calculation of final average salary, regardless of future pay
5930	5930
5931	5931
5932	5932
5933	5933
5934	5934
5935	5935	HB4873 - 165 - LRB103 35886 RPS 65971 b
5936	5936
5937	5937
5938	5938	HB4873- 166 -LRB103 35886 RPS 65971 b HB4873 - 166 - LRB103 35886 RPS 65971 b
5939	5939	HB4873 - 166 - LRB103 35886 RPS 65971 b
5940	5940	1 increases, active cost of living adjustments, or promotions.
5941	5941	2 Additionally, the DROP member shall not be eligible to
5942	5942	3 purchase service credit under this Article.
5943	5943	4 Any amounts due to an alternate payee under a Qualified
5944	5944	5 Illinois Domestic Relations Order under Section 1-119 shall be
5945	5945	6 calculated at the time of the DROP election, and such amounts
5946	5946	7 shall be payable at the time of election.
5947	5947	8 If the DROP member's designated beneficiary predeceases
5948	5948	9 the DROP member and the DROP member dies before designating a
5949	5949	10 new beneficiary, the DROP member's DROP account shall be paid
5950	5950	11 to the DROP member's estate.
5951	5951	12 When determining if a firefighter is owed a refund of
5952	5952	13 contributions due to the firefighter's death prior to
5953	5953	14 collecting an amount equal to or greater than the
5954	5954	15 firefighter's contributions, the proceeds of the DROP account
5955	5955	16 shall be considered part of the total payment made to the
5956	5956	17 firefighter or the firefighter's estate.
5957	5957	18 (k) It is intended that the DROP shall not jeopardize the
5958	5958	19 tax qualified status of the fund. The board of trustees of the
5959	5959	20 fund shall have the authority to adopt rules necessary or
5960	5960	21 appropriate for the DROP to maintain compliance with
5961	5961	22 applicable federal laws and regulations. Notwithstanding any
5962	5962	23 other provision of this Article, all benefits provided under
5963	5963	24 the DROP shall be subject to the requirements and limits of the
5964	5964	25 Internal Revenue Code of 1986, as amended.
5965	5965	26 (l) The costs of administering the DROP account shall be
5966	5966
5967	5967
5968	5968
5969	5969
5970	5970
5971	5971	HB4873 - 166 - LRB103 35886 RPS 65971 b
5972	5972
5973	5973
5974	5974	HB4873- 167 -LRB103 35886 RPS 65971 b HB4873 - 167 - LRB103 35886 RPS 65971 b
5975	5975	HB4873 - 167 - LRB103 35886 RPS 65971 b
5976	5976	1 the exclusive responsibility of the DROP member. The fund
5977	5977	2 shall pay any reasonable administrative cost of the account
5978	5978	3 and shall reduce the balance of the DROP account in an amount
5979	5979	4 determined by the fund to meet all costs of the DROP account.
5980	5980	5 (m) The Board may transfer the administrative
5981	5981	6 responsibility of the DROP program to the State Treasurer
5982	5982	7 under Section 1-168 after an affirmative vote of the Board.
5983	5983	8 (40 ILCS 5/7-142.2 new)
5984	5984	9 Sec. 7-142.2. Deferred retirement option plan.
5985	5985	10 (a) As used in this Section:
5986	5986	11 "Deferred retirement option plan" or "DROP" means the plan
5987	5987	12 created under this Section that provides an alternative method
5988	5988	13 of benefit accrual in the Fund.
5989	5989	14 "DROP member" means an eligible member who makes an
5990	5990	15 election to participate in the DROP no later than January 1,
5991	5991	16 2029.
5992	5992	17 "DROP period" means the period during which a DROP member
5993	5993	18 participates in the DROP.
5994	5994	19 "Eligible member" means a participating employee of the
5995	5995	20 Fund who, at the time of electing to participate in the DROP:
5996	5996	21 (1) is otherwise eligible to retire under this Article
5997	5997	22 with a benefit under Section 7-142.1;
5998	5998	23 (2) has never received a retirement annuity from the
5999	5999	24 Fund;
6000	6000	25 (3) is in active service as a sheriff's law
6001	6001
6002	6002
6003	6003
6004	6004
6005	6005
6006	6006	HB4873 - 167 - LRB103 35886 RPS 65971 b
6007	6007
6008	6008
6009	6009	HB4873- 168 -LRB103 35886 RPS 65971 b HB4873 - 168 - LRB103 35886 RPS 65971 b
6010	6010	HB4873 - 168 - LRB103 35886 RPS 65971 b
6011	6011	1 enforcement employee; and
6012	6012	2 (4) has terminated participation with respect to any
6013	6013	3 employer other than the employer for which the member is a
6014	6014	4 sheriff's law enforcement employee.
6015	6015	5 (b) The DROP shall be made available to eligible members
6016	6016	6 no later than January 1, 2026.
6017	6017	7 (c) Eligible members must make their election to
6018	6018	8 participate in the DROP in writing with the Fund in a form
6019	6019	9 acceptable to the Fund. The Fund must process the election and
6020	6020	10 begin crediting an account on behalf of the member as soon as
6021	6021	11 is practicable after the election has been received by the
6022	6022	12 Fund.
6023	6023	13 Unless otherwise provided for by law, any election that a
6024	6024	14 member may elect at or before the time of retirement must be
6025	6025	15 made at or before the time of electing to participate in the
6026	6026	16 DROP, including, but not limited to, purchase of optional
6027	6027	17 service, election of an accelerated pension benefit payment,
6028	6028	18 conversion of any annuity benefit into an up-front or lump sum
6029	6029	19 payment, or any other elections identified by the Fund.
6030	6030	20 (d) An eligible member may elect to participate in the
6031	6031	21 DROP for a period not to exceed 5 years from the date of
6032	6032	22 election.
6033	6033	23 (e) During the DROP period, the Fund shall credit a
6034	6034	24 notional account on behalf of the DROP member an amount equal
6035	6035	25 to the monthly amount of retirement annuity the DROP member
6036	6036	26 would otherwise be eligible to receive had the DROP member
6037	6037
6038	6038
6039	6039
6040	6040
6041	6041
6042	6042	HB4873 - 168 - LRB103 35886 RPS 65971 b
6043	6043
6044	6044
6045	6045	HB4873- 169 -LRB103 35886 RPS 65971 b HB4873 - 169 - LRB103 35886 RPS 65971 b
6046	6046	HB4873 - 169 - LRB103 35886 RPS 65971 b
6047	6047	1 retired on the date of the election under this Section, minus
6048	6048	2 any amounts required to be deducted under State or federal
6049	6049	3 law, including, but not limited to, payments required under a
6050	6050	4 Qualified Illinois Domestic Relations Order under Section
6051	6051	5 1-119. A DROP member who is entitled to a benefit from a
6052	6052	6 participating system under the Retirement Systems Reciprocal
6053	6053	7 Act shall be eligible to have the benefit the DROP member would
6054	6054	8 have otherwise been eligible to receive if the DROP member
6055	6055	9 retired on the date of the election under this Section
6056	6056	10 deposited with the Fund in the DROP member's DROP account and
6057	6057	11 administered in a manner consistent with the requirements of
6058	6058	12 this Section. Any automatic annual increases that would have
6059	6059	13 otherwise been applied to the DROP member's retirement annuity
6060	6060	14 had the DROP member elected to retire instead of participate
6061	6061	15 in the DROP shall accrue to the DROP member's monthly payment
6062	6062	16 credited to the account prior to the expiration of the DROP and
6063	6063	17 shall otherwise apply to the DROP member's annuity upon
6064	6064	18 expiration of the DROP. The account shall be held on behalf of
6065	6065	19 the DROP member.
6066	6066	20 (f) DROP members shall make contributions to the Fund
6067	6067	21 during their participation in the DROP in an amount equal to
6068	6068	22 the employee contributions under paragraph (1) of subsection
6069	6069	23 (a) of Section 7-173 and subsection (a) of Section 7-173.1
6070	6070	24 that would otherwise be required if the DROP member were an
6071	6071	25 active participant of the Fund. Those amounts shall be
6072	6072	26 credited to the general account of the Fund. Earnings paid to
6073	6073
6074	6074
6075	6075
6076	6076
6077	6077
6078	6078	HB4873 - 169 - LRB103 35886 RPS 65971 b
6079	6079
6080	6080
6081	6081	HB4873- 170 -LRB103 35886 RPS 65971 b HB4873 - 170 - LRB103 35886 RPS 65971 b
6082	6082	HB4873 - 170 - LRB103 35886 RPS 65971 b
6083	6083	1 DROP members during their participation in the DROP shall be
6084	6084	2 included in the calculation of employer contributions as
6085	6085	3 required in Section 7-172.
6086	6086	4 (g) The amounts credited to the DROP account shall be held
6087	6087	5 in notional accounts by the Fund. The amounts credited to the
6088	6088	6 DROP account shall not accrue interest.
6089	6089	7 (h) Upon the expiration or termination of the DROP
6090	6090	8 member's participation in the DROP, the account balance shall
6091	6091	9 be paid to the DROP member as a lump sum. The Fund shall
6092	6092	10 provide options for the transfer of the account consistent
6093	6093	11 with its fiduciary duty and any applicable State or federal
6094	6094	12 law. The expiration or termination of a DROP member's
6095	6095	13 participation in the DROP may not occur after January 1, 2034.
6096	6096	14 (i) The DROP election is irrevocable, and the DROP member
6097	6097	15 may not access the account prior to termination or expiration
6098	6098	16 of the DROP member's participation in the DROP. The DROP
6099	6099	17 member must terminate employment with the employer upon
6100	6100	18 expiration of his or her participation in the DROP. The DROP
6101	6101	19 member's participation in the DROP shall terminate prior to
6102	6102	20 the expiration date:
6103	6103	21 (1) if the DROP member terminates employment with the
6104	6104	22 employer prior to the expiration of the designated DROP
6105	6105	23 period;
6106	6106	24 (2) if the DROP member becomes eligible for and begins
6107	6107	25 collecting a disability benefit from the Fund; or
6108	6108	26 (3) upon the death of the DROP member.
6109	6109
6110	6110
6111	6111
6112	6112
6113	6113
6114	6114	HB4873 - 170 - LRB103 35886 RPS 65971 b
6115	6115
6116	6116
6117	6117	HB4873- 171 -LRB103 35886 RPS 65971 b HB4873 - 171 - LRB103 35886 RPS 65971 b
6118	6118	HB4873 - 171 - LRB103 35886 RPS 65971 b
6119	6119	1 Upon termination or expiration of the DROP period, the
6120	6120	2 DROP member must separate from the service of all employers
6121	6121	3 under this Article for a period of not less than 60 days. Upon
6122	6122	4 termination of the DROP, the DROP member's retirement annuity
6123	6123	5 from the Fund shall commence. After termination or expiration
6124	6124	6 of a member's participation in the DROP, the member may not
6125	6125	7 participate in employment in any way that would require the
6126	6126	8 member to become an active contributing member of the Fund.
6127	6127	9 (j) The DROP member shall be considered in active service
6128	6128	10 for purposes of eligibility for death and disability benefits
6129	6129	11 and shall retain all rights of employment as established under
6130	6130	12 the DROP member's collective bargaining agreement, if
6131	6131	13 applicable.
6132	6132	14 While participating in the DROP, the DROP member shall not
6133	6133	15 accrue additional service credit, including any service
6134	6134	16 accruals, in the Fund and earnings paid to the DROP member
6135	6135	17 while participating in the DROP shall not be included in the
6136	6136	18 calculation of final rate of earnings, regardless of future
6137	6137	19 pay increases, active cost of living adjustments, or
6138	6138	20 promotions. Additionally, the DROP member shall not be
6139	6139	21 eligible to make additional contributions under paragraph (2)
6140	6140	22 of subsection (a) of Section 7-173. During the DROP period,
6141	6141	23 the DROP member shall not be eligible for a distribution of any
6142	6142	24 amounts accrued from previous contributions made under
6143	6143	25 paragraph (2) of subsection (a) of Section 7-173.
6144	6144	26 Eligibility for a surviving spouse benefit under Section
6145	6145
6146	6146
6147	6147
6148	6148
6149	6149
6150	6150	HB4873 - 171 - LRB103 35886 RPS 65971 b
6151	6151
6152	6152
6153	6153	HB4873- 172 -LRB103 35886 RPS 65971 b HB4873 - 172 - LRB103 35886 RPS 65971 b
6154	6154	HB4873 - 172 - LRB103 35886 RPS 65971 b
6155	6155	1 7-154 shall be determined at the time of the DROP election.
6156	6156	2 The pickup of employee contribution requirements in
6157	6157	3 Section 7-173.2 shall be applicable to amounts paid by the
6158	6158	4 DROP member under subsection (f).
6159	6159	5 Any amounts due to an alternate payee under a Qualified
6160	6160	6 Illinois Domestic Relations Order under Section 1-119 shall be
6161	6161	7 calculated at the time of the DROP election, and such amounts
6162	6162	8 shall be payable at the time of election.
6163	6163	9 If the DROP member's designated beneficiary predeceases
6164	6164	10 the DROP member and the DROP member dies before designating a
6165	6165	11 new beneficiary, the DROP member's DROP account shall be paid
6166	6166	12 to the DROP member's estate.
6167	6167	13 When determining if a participating employee is owed a
6168	6168	14 refund of contributions due to the participating employee's
6169	6169	15 death prior to collecting an amount equal to or greater than
6170	6170	16 the participating employee's contributions, the proceeds of
6171	6171	17 the DROP account shall be considered part of the total payment
6172	6172	18 made to the participating employee or the participating
6173	6173	19 employee's estate.
6174	6174	20 (k) It is intended that the DROP shall not jeopardize the
6175	6175	21 tax-qualified status of the Fund. The Board shall have the
6176	6176	22 authority to adopt rules necessary or appropriate for the DROP
6177	6177	23 to maintain compliance with applicable federal laws and
6178	6178	24 regulations. Notwithstanding any other provision of this
6179	6179	25 Article, all benefits provided under the DROP shall be subject
6180	6180	26 to the requirements and limitations of the Internal Revenue
6181	6181
6182	6182
6183	6183
6184	6184
6185	6185
6186	6186	HB4873 - 172 - LRB103 35886 RPS 65971 b
6187	6187
6188	6188
6189	6189	HB4873- 173 -LRB103 35886 RPS 65971 b HB4873 - 173 - LRB103 35886 RPS 65971 b
6190	6190	HB4873 - 173 - LRB103 35886 RPS 65971 b
6191	6191	1 Code of 1986, as amended.
6192	6192	2 (l) The Board may transfer the administrative
6193	6193	3 responsibility of the DROP program to the State Treasurer
6194	6194	4 under Section 1-168 after an affirmative vote of the Board.
6195	6195	5 Article 5.
6196	6196	6 Section 5-5. The General Obligation Bond Act is amended by
6197	6197	7 changing Sections 7.2 and 7.6 as follows:
6198	6198	8 (30 ILCS 330/7.2)
6199	6199	9 Sec. 7.2. State pension funding.
6200	6200	10 (a) The amount of $10,000,000,000 is authorized to be used
6201	6201	11 for the purpose of making contributions to the designated
6202	6202	12 retirement systems. For the purposes of this Section,
6203	6203	13 "designated retirement systems" means the State Employees'
6204	6204	14 Retirement System of Illinois; the Teachers' Retirement System
6205	6205	15 of the State of Illinois; the State Universities Retirement
6206	6206	16 System; the Judges Retirement System of Illinois; and the
6207	6207	17 General Assembly Retirement System.
6208	6208	18 The amount of $3,466,000,000 of Bonds authorized by Public
6209	6209	19 Act 96-43 is authorized to be used for the purpose of making a
6210	6210	20 portion of the State's Fiscal Year 2010 required contributions
6211	6211	21 to the designated retirement systems.
6212	6212	22 The amount of $4,096,348,300 of Bonds authorized by this
6213	6213	23 amendatory Act of the 96th General Assembly is authorized to
6214	6214
6215	6215
6216	6216
6217	6217
6218	6218
6219	6219	HB4873 - 173 - LRB103 35886 RPS 65971 b
6220	6220
6221	6221
6222	6222	HB4873- 174 -LRB103 35886 RPS 65971 b HB4873 - 174 - LRB103 35886 RPS 65971 b
6223	6223	HB4873 - 174 - LRB103 35886 RPS 65971 b
6224	6224	1 be used for the purpose of making a portion of the State's
6225	6225	2 Fiscal Year 2011 required contributions to the designated
6226	6226	3 retirement systems.
6227	6227	4 (b) The Pension Contribution Fund is created as a special
6228	6228	5 fund in the State treasury Treasury.
6229	6229	6 The proceeds of the additional $10,000,000,000 of Bonds
6230	6230	7 authorized by Public Act 93-2, less the amounts authorized in
6231	6231	8 the Bond Sale Order to be deposited directly into the
6232	6232	9 capitalized interest account of the General Obligation Bond
6233	6233	10 Retirement and Interest Fund or otherwise directly paid out
6234	6234	11 for bond sale expenses under Section 8, shall be deposited
6235	6235	12 into the Pension Contribution Fund and used as provided in
6236	6236	13 this Section.
6237	6237	14 The proceeds of the additional $3,466,000,000 of Bonds
6238	6238	15 authorized by Public Act 96-43, less the amounts directly paid
6239	6239	16 out for bond sale expenses under Section 8, shall be deposited
6240	6240	17 into the Pension Contribution Fund, and the Comptroller and
6241	6241	18 the Treasurer shall, as soon as practical, (i) first, transfer
6242	6242	19 from the Pension Contribution Fund to the General Revenue Fund
6243	6243	20 or Common School Fund an amount equal to the amount of
6244	6244	21 payments, if any, made to the designated retirement systems
6245	6245	22 from the General Revenue Fund or Common School Fund in State
6246	6246	23 fiscal year 2010 and (ii) second, make transfers from the
6247	6247	24 Pension Contribution Fund to the designated retirement systems
6248	6248	25 pursuant to Sections 2-124, 14-131, 15-155, 16-158, and 18-131
6249	6249	26 of the Illinois Pension Code.
6250	6250
6251	6251
6252	6252
6253	6253
6254	6254
6255	6255	HB4873 - 174 - LRB103 35886 RPS 65971 b
6256	6256
6257	6257
6258	6258	HB4873- 175 -LRB103 35886 RPS 65971 b HB4873 - 175 - LRB103 35886 RPS 65971 b
6259	6259	HB4873 - 175 - LRB103 35886 RPS 65971 b
6260	6260	1 The proceeds of the additional $4,096,348,300 of Bonds
6261	6261	2 authorized by this amendatory Act of the 96th General
6262	6262	3 Assembly, less the amounts directly paid out for bond sale
6263	6263	4 expenses under Section 8, shall be deposited into the Pension
6264	6264	5 Contribution Fund, and the Comptroller and the Treasurer
6265	6265	6 shall, as soon as practical, (i) first, transfer from the
6266	6266	7 Pension Contribution Fund to the General Revenue Fund or
6267	6267	8 Common School Fund an amount equal to the amount of payments,
6268	6268	9 if any, made to the designated retirement systems from the
6269	6269	10 General Revenue Fund or Common School Fund in State fiscal
6270	6270	11 year 2011 and (ii) second, make transfers from the Pension
6271	6271	12 Contribution Fund to the designated retirement systems
6272	6272	13 pursuant to Sections 2-124, 14-131, 15-155, 16-158, and 18-131
6273	6273	14 of the Illinois Pension Code.
6274	6274	15 (c) Of the amount of Bond proceeds from the bond sale
6275	6275	16 authorized by Public Act 93-2 first deposited into the Pension
6276	6276	17 Contribution Fund, there shall be reserved for transfers under
6277	6277	18 this subsection the sum of $300,000,000, representing the
6278	6278	19 required State contributions to the designated retirement
6279	6279	20 systems for the last quarter of State fiscal year 2003, plus
6280	6280	21 the sum of $1,860,000,000, representing the required State
6281	6281	22 contributions to the designated retirement systems for State
6282	6282	23 fiscal year 2004.
6283	6283	24 Upon the deposit of sufficient moneys from the bond sale
6284	6284	25 authorized by Public Act 93-2 into the Pension Contribution
6285	6285	26 Fund, the Comptroller and Treasurer shall immediately transfer
6286	6286
6287	6287
6288	6288
6289	6289
6290	6290
6291	6291	HB4873 - 175 - LRB103 35886 RPS 65971 b
6292	6292
6293	6293
6294	6294	HB4873- 176 -LRB103 35886 RPS 65971 b HB4873 - 176 - LRB103 35886 RPS 65971 b
6295	6295	HB4873 - 176 - LRB103 35886 RPS 65971 b
6296	6296	1 the sum of $300,000,000 from the Pension Contribution Fund to
6297	6297	2 the General Revenue Fund.
6298	6298	3 Whenever any payment of required State contributions for
6299	6299	4 State fiscal year 2004 is made to one of the designated
6300	6300	5 retirement systems, the Comptroller and Treasurer shall, as
6301	6301	6 soon as practicable, transfer from the Pension Contribution
6302	6302	7 Fund to the General Revenue Fund an amount equal to the amount
6303	6303	8 of that payment to the designated retirement system. Beginning
6304	6304	9 on the effective date of this amendatory Act of the 93rd
6305	6305	10 General Assembly, the transfers from the Pension Contribution
6306	6306	11 Fund to the General Revenue Fund shall be suspended until June
6307	6307	12 30, 2004, and the remaining balance in the Pension
6308	6308	13 Contribution Fund shall be transferred directly to the
6309	6309	14 designated retirement systems as provided in Section 6z-61 of
6310	6310	15 the State Finance Act. On and after July 1, 2004, in the event
6311	6311	16 that any amount is on deposit in the Pension Contribution Fund
6312	6312	17 from time to time, the Comptroller and Treasurer shall
6313	6313	18 continue to make such transfers based on fiscal year 2005
6314	6314	19 payments until the entire amount on deposit has been
6315	6315	20 transferred.
6316	6316	21 (d) All amounts deposited into the Pension Contribution
6317	6317	22 Fund, other than the amounts reserved for the transfers under
6318	6318	23 subsection (c) from the bond sale authorized by Public Act
6319	6319	24 93-2, other than amounts deposited into the Pension
6320	6320	25 Contribution Fund from the bond sale authorized by Public Act
6321	6321	26 96-43 and other than amounts deposited into the Pension
6322	6322
6323	6323
6324	6324
6325	6325
6326	6326
6327	6327	HB4873 - 176 - LRB103 35886 RPS 65971 b
6328	6328
6329	6329
6330	6330	HB4873- 177 -LRB103 35886 RPS 65971 b HB4873 - 177 - LRB103 35886 RPS 65971 b
6331	6331	HB4873 - 177 - LRB103 35886 RPS 65971 b
6332	6332	1 Contribution Fund from the bond sale authorized by this
6333	6333	2 amendatory Act of the 96th General Assembly, shall be
6334	6334	3 appropriated to the designated retirement systems to reduce
6335	6335	4 their actuarial reserve deficiencies. The amount of the
6336	6336	5 appropriation to each designated retirement system shall
6337	6337	6 constitute a portion of the total appropriation under this
6338	6338	7 subsection that is the same as that retirement system's
6339	6339	8 portion of the total actuarial reserve deficiency of the
6340	6340	9 systems, as most recently determined by the Governor's Office
6341	6341	10 of Management and Budget under Section 8.12 of the State
6342	6342	11 Finance Act.
6343	6343	12 With respect to proceeds from the bond sale authorized by
6344	6344	13 Public Act 93-2 only, within 15 days after any Bond proceeds in
6345	6345	14 excess of the amounts initially reserved under subsection (c)
6346	6346	15 are deposited into the Pension Contribution Fund, the
6347	6347	16 Governor's Office of Management and Budget shall (i) allocate
6348	6348	17 those proceeds among the designated retirement systems in
6349	6349	18 proportion to their respective actuarial reserve deficiencies,
6350	6350	19 as most recently determined under Section 8.12 of the State
6351	6351	20 Finance Act, and (ii) certify those allocations to the
6352	6352	21 designated retirement systems and the Comptroller.
6353	6353	22 Upon receiving certification of an allocation under this
6354	6354	23 subsection, a designated retirement system shall submit to the
6355	6355	24 Comptroller a voucher for the amount of its allocation. The
6356	6356	25 voucher shall be paid out of the amount appropriated to that
6357	6357	26 designated retirement system from the Pension Contribution
6358	6358
6359	6359
6360	6360
6361	6361
6362	6362
6363	6363	HB4873 - 177 - LRB103 35886 RPS 65971 b
6364	6364
6365	6365
6366	6366	HB4873- 178 -LRB103 35886 RPS 65971 b HB4873 - 178 - LRB103 35886 RPS 65971 b
6367	6367	HB4873 - 178 - LRB103 35886 RPS 65971 b
6368	6368	1 Fund pursuant to this subsection.
6369	6369	2 (e) Each fiscal year after all the bonds authorized by
6370	6370	3 Public Act 93-2 are retired, the Comptroller shall order and
6371	6371	4 the State Treasurer shall transfer the sum of $500,000,000
6372	6372	5 from the General Revenue Fund to the Pension Unfunded
6373	6373	6 Liability Reduction Fund, which shall be used to make
6374	6374	7 additional contributions to eligible pension funds in
6375	6375	8 accordance with Section 8s of the State Finance Act.
6376	6376	9 (Source: P.A. 96-43, eff. 7-15-09; 96-1497, eff. 1-14-11.)
6377	6377	10 (30 ILCS 330/7.6)
6378	6378	11 Sec. 7.6. Income Tax Proceed Bonds.
6379	6379	12 (a) As used in this Act, "Income Tax Proceed Bonds" means
6380	6380	13 Bonds (i) authorized by Public Act 100-23 or any other Public
6381	6381	14 Act of the 100th or 101st General Assembly authorizing the
6382	6382	15 issuance of Income Tax Proceed Bonds and (ii) used for the
6383	6383	16 payment of unpaid obligations of the State as incurred from
6384	6384	17 time to time and as authorized by the General Assembly.
6385	6385	18 (b) Income Tax Proceed Bonds in the amount of
6386	6386	19 $6,000,000,000 are hereby authorized to be used for the
6387	6387	20 purpose of paying vouchers incurred by the State prior to July
6388	6388	21 1, 2017. Additional Income Tax Proceed Bonds in the amount of
6389	6389	22 $1,200,000,000 are hereby authorized to be used for the
6390	6390	23 purpose of paying vouchers incurred by the State and accruing
6391	6391	24 interest payable by the State prior to the date on which the
6392	6392	25 Income Tax Proceed Bonds are issued.
6393	6393
6394	6394
6395	6395
6396	6396
6397	6397
6398	6398	HB4873 - 178 - LRB103 35886 RPS 65971 b
6399	6399
6400	6400
6401	6401	HB4873- 179 -LRB103 35886 RPS 65971 b HB4873 - 179 - LRB103 35886 RPS 65971 b
6402	6402	HB4873 - 179 - LRB103 35886 RPS 65971 b
6403	6403	1 (c) The Income Tax Bond Fund is hereby created as a special
6404	6404	2 fund in the State treasury. All moneys from the proceeds of the
6405	6405	3 sale of the Income Tax Proceed Bonds, less the amounts
6406	6406	4 authorized in the Bond Sale Order to be directly paid out for
6407	6407	5 bond sale expenses under Section 8, shall be deposited into
6408	6408	6 the Income Tax Bond Fund. All moneys in the Income Tax Bond
6409	6409	7 Fund shall be used for the purpose of paying vouchers incurred
6410	6410	8 by the State prior to July 1, 2017 or for paying vouchers
6411	6411	9 incurred by the State more than 90 days prior to the date on
6412	6412	10 which the Income Tax Proceed Bonds are issued. For the purpose
6413	6413	11 of paying such vouchers, the Comptroller has the authority to
6414	6414	12 transfer moneys from the Income Tax Bond Fund to general funds
6415	6415	13 and the Health Insurance Reserve Fund. "General funds" has the
6416	6416	14 meaning provided in Section 50-40 of the State Budget Law.
6417	6417	15 (d) Each fiscal year after all the bonds authorized under
6418	6418	16 this Section are retired, the Comptroller shall order and the
6419	6419	17 State Treasurer shall transfer the sum of $500,000,000 from
6420	6420	18 the General Revenue Fund to the Pension Unfunded Liability
6421	6421	19 Reduction Fund, which shall be used to make additional
6422	6422	20 contributions to eligible pension funds in accordance with
6423	6423	21 Section 8s of the State Finance Act.
6424	6424	22 (Source: P.A. 103-7, eff. 7-1-23.)
6425	6425	23 Section 5-10. The State Finance Act is amended by adding
6426	6426	24 Section 8s as follows:
6427	6427
6428	6428
6429	6429
6430	6430
6431	6431
6432	6432	HB4873 - 179 - LRB103 35886 RPS 65971 b
6433	6433
6434	6434
6435	6435	HB4873- 180 -LRB103 35886 RPS 65971 b HB4873 - 180 - LRB103 35886 RPS 65971 b
6436	6436	HB4873 - 180 - LRB103 35886 RPS 65971 b
6437	6437	1 (30 ILCS 105/8s new)
6438	6438	2 Sec. 8s. Pension Unfunded Liability Reduction Fund.
6439	6439	3 (a) In this Section, "eligible pension fund" means a
6440	6440	4 pension fund or retirement system established under Article 2,
6441	6441	5 14, 15, 16, 17, or 18 of the Illinois Pension Code that has a
6442	6442	6 total actuarial liability in excess of its total actuarial
6443	6443	7 assets.
6444	6444	8 (b) The Pension Unfunded Liability Reduction Fund is
6445	6445	9 created as a special fund in the State treasury. Moneys in the
6446	6446	10 Fund may be used only to make annual additional contributions
6447	6447	11 to eligible pension funds.
6448	6448	12 (c) Moneys in the Fund shall be disbursed every fiscal
6449	6449	13 year to each eligible pension fund based on the pro rata share
6450	6450	14 of the State's required annual contribution to that eligible
6451	6451	15 pension fund for that fiscal year relative to the State's
6452	6452	16 total required annual contribution to all eligible pension
6453	6453	17 funds for that fiscal year.
6454	6454	18 Article 7.
6455	6455	19 Section 7-5. The Illinois Pension Code is amended by
6456	6456	20 changing Sections 2-101, 2-105, 2-107, 2-117, 8-120,
6457	6457	21 14-103.05, 14-104, 14-104.14, 14-105.4, 18-101, 18-108,
6458	6458	22 18-109, 18-110, and 18-120 as follows:
6459	6459	23 (40 ILCS 5/2-101) (from Ch. 108 1/2, par. 2-101)
6460	6460
6461	6461
6462	6462
6463	6463
6464	6464
6465	6465	HB4873 - 180 - LRB103 35886 RPS 65971 b
6466	6466
6467	6467
6468	6468	HB4873- 181 -LRB103 35886 RPS 65971 b HB4873 - 181 - LRB103 35886 RPS 65971 b
6469	6469	HB4873 - 181 - LRB103 35886 RPS 65971 b
6470	6470	1 Sec. 2-101. Creation of system. A retirement system is
6471	6471	2 created to provide retirement annuities, survivor's annuities
6472	6472	3 and other benefits for certain members of the General
6473	6473	4 Assembly, certain elected state officials, and their
6474	6474	5 beneficiaries.
6475	6475	6 The system shall be known as the "General Assembly
6476	6476	7 Retirement System". All its funds and property shall be a
6477	6477	8 trust separate from all other entities, maintained for the
6478	6478	9 purpose of securing payment of annuities and benefits under
6479	6479	10 this Article.
6480	6480	11 Participation in the retirement system created under this
6481	6481	12 Article is restricted to persons who became participants
6482	6482	13 before January 13, 2027. Beginning on that date, the System
6483	6483	14 shall not accept any new participants.
6484	6484	15 (Source: P.A. 83-1440.)
6485	6485	16 (40 ILCS 5/2-105) (from Ch. 108 1/2, par. 2-105)
6486	6486	17 Sec. 2-105. Member. "Member": Members of the General
6487	6487	18 Assembly of this State, including persons who enter military
6488	6488	19 service while a member of the General Assembly, and any person
6489	6489	20 serving as Governor, Lieutenant Governor, Secretary of State,
6490	6490	21 Treasurer, Comptroller, or Attorney General for the period of
6491	6491	22 service in such office.
6492	6492	23 Any person who has served for 10 or more years as Clerk or
6493	6493	24 Assistant Clerk of the House of Representatives, Secretary or
6494	6494	25 Assistant Secretary of the Senate, or any combination thereof,
6495	6495
6496	6496
6497	6497
6498	6498
6499	6499
6500	6500	HB4873 - 181 - LRB103 35886 RPS 65971 b
6501	6501
6502	6502
6503	6503	HB4873- 182 -LRB103 35886 RPS 65971 b HB4873 - 182 - LRB103 35886 RPS 65971 b
6504	6504	HB4873 - 182 - LRB103 35886 RPS 65971 b
6505	6505	1 may elect to become a member of this system while thenceforth
6506	6506	2 engaged in such service by filing a written election with the
6507	6507	3 board. Any person so electing shall be deemed an active member
6508	6508	4 of the General Assembly for the purpose of validating and
6509	6509	5 transferring any service credits earned under any of the funds
6510	6510	6 and systems established under Articles 3 through 18 of this
6511	6511	7 Code.
6512	6512	8 Notwithstanding any other provision of this Article, a
6513	6513	9 person shall not be deemed a member for the purposes of this
6514	6514	10 Article unless he or she became a participant of the System
6515	6515	11 before January 13, 2027.
6516	6516	12 (Source: P.A. 85-1008.)
6517	6517	13 (40 ILCS 5/2-107) (from Ch. 108 1/2, par. 2-107)
6518	6518	14 Sec. 2-107. Participant. "Participant": Any member who
6519	6519	15 elects to participate; and any former member who elects to
6520	6520	16 continue participation under Section 2-117.1, for the duration
6521	6521	17 of such continued participation. Notwithstanding any other
6522	6522	18 provision of this Article, a person shall not be deemed a
6523	6523	19 participant for the purposes of this Article unless he or she
6524	6524	20 became a participant of the System before January 13, 2027.
6525	6525	21 (Source: P.A. 86-1488.)
6526	6526	22 (40 ILCS 5/2-117) (from Ch. 108 1/2, par. 2-117)
6527	6527	23 Sec. 2-117. Participants; election not to participate or
6528	6528	24 to terminate participation Participants - Election not to
6529	6529
6530	6530
6531	6531
6532	6532
6533	6533
6534	6534	HB4873 - 182 - LRB103 35886 RPS 65971 b
6535	6535
6536	6536
6537	6537	HB4873- 183 -LRB103 35886 RPS 65971 b HB4873 - 183 - LRB103 35886 RPS 65971 b
6538	6538	HB4873 - 183 - LRB103 35886 RPS 65971 b
6539	6539	1 participate.
6540	6540	2 (a) Every person who was a member on November 1, 1947, or
6541	6541	3 in military service on such date, is subject to the provisions
6542	6542	4 of this system beginning upon such date, unless prior to such
6543	6543	5 date he or she filed with the board a written notice of
6544	6544	6 election not to participate.
6545	6545	7 Every person who becomes a member after November 1, 1947,
6546	6546	8 and who is then not a participant becomes a participant
6547	6547	9 beginning upon the date of becoming a member unless, within 24
6548	6548	10 months from that date, he or she has filed with the board a
6549	6549	11 written notice of election not to participate.
6550	6550	12 (b) A member who has filed notice of an election not to
6551	6551	13 participate (and a former member who has not yet begun to
6552	6552	14 receive a retirement annuity under this Article) may become a
6553	6553	15 participant with respect to the period for which the member
6554	6554	16 elected not to participate upon filing with the board, before
6555	6555	17 April 1, 1993, a written rescission of the election not to
6556	6556	18 participate. Upon contributing an amount equal to the
6557	6557	19 contributions he or she would have made as a participant from
6558	6558	20 November 1, 1947, or the date of becoming a member, whichever
6559	6559	21 is later, to the date of becoming a participant, with interest
6560	6560	22 at the rate of 4% per annum until the contributions are paid,
6561	6561	23 the participant shall receive credit for service as a member
6562	6562	24 prior to the date of the rescission, both before and after
6563	6563	25 November 1, 1947. The required contributions shall be made
6564	6564	26 before commencement of the retirement annuity; otherwise no
6565	6565
6566	6566
6567	6567
6568	6568
6569	6569
6570	6570	HB4873 - 183 - LRB103 35886 RPS 65971 b
6571	6571
6572	6572
6573	6573	HB4873- 184 -LRB103 35886 RPS 65971 b HB4873 - 184 - LRB103 35886 RPS 65971 b
6574	6574	HB4873 - 184 - LRB103 35886 RPS 65971 b
6575	6575	1 credit for service prior to the date of participation shall be
6576	6576	2 granted.
6577	6577	3 (c) Notwithstanding any other provision of this Article,
6578	6578	4 an active participant may irrevocably elect, in writing and in
6579	6579	5 a form and manner prescribed by the board, to terminate
6580	6580	6 participation in the System and instead participate in the
6581	6581	7 retirement system established under Article 14. Upon making
6582	6582	8 the election under this subsection (c), all credits and
6583	6583	9 creditable service shall be transferred to the retirement
6584	6584	10 system under Article 14 in accordance with Section 14-105.4
6585	6585	11 and all participation in this System is terminated.
6586	6586	12 (Source: P.A. 86-273; 87-1265.)
6587	6587	13 (40 ILCS 5/14-103.05) (from Ch. 108 1/2, par. 14-103.05)
6588	6588	14 Sec. 14-103.05. Employee.
6589	6589	15 (a) Any person employed by a Department who receives
6590	6590	16 salary for personal services rendered to the Department on a
6591	6591	17 warrant issued pursuant to a payroll voucher certified by a
6592	6592	18 Department and drawn by the State Comptroller upon the State
6593	6593	19 Treasurer, including an elected official described in
6594	6594	20 subparagraph (d) of Section 14-104, shall become an employee
6595	6595	21 for purpose of membership in the Retirement System on the
6596	6596	22 first day of such employment.
6597	6597	23 A person entering service on or after January 1, 1972 and
6598	6598	24 prior to January 1, 1984 shall become a member as a condition
6599	6599	25 of employment and shall begin making contributions as of the
6600	6600
6601	6601
6602	6602
6603	6603
6604	6604
6605	6605	HB4873 - 184 - LRB103 35886 RPS 65971 b
6606	6606
6607	6607
6608	6608	HB4873- 185 -LRB103 35886 RPS 65971 b HB4873 - 185 - LRB103 35886 RPS 65971 b
6609	6609	HB4873 - 185 - LRB103 35886 RPS 65971 b
6610	6610	1 first day of employment.
6611	6611	2 A person entering service on or after January 1, 1984
6612	6612	3 shall, upon completion of 6 months of continuous service which
6613	6613	4 is not interrupted by a break of more than 2 months, become a
6614	6614	5 member as a condition of employment. Contributions shall begin
6615	6615	6 the first of the month after completion of the qualifying
6616	6616	7 period.
6617	6617	8 A person employed by the Chicago Metropolitan Agency for
6618	6618	9 Planning on the effective date of this amendatory Act of the
6619	6619	10 95th General Assembly who was a member of this System as an
6620	6620	11 employee of the Chicago Area Transportation Study and makes an
6621	6621	12 election under Section 14-104.13 to participate in this System
6622	6622	13 for his or her employment with the Chicago Metropolitan Agency
6623	6623	14 for Planning.
6624	6624	15 The qualifying period of 6 months of service is not
6625	6625	16 applicable to: (1) a person who has been granted credit for
6626	6626	17 service in a position covered by the State Universities
6627	6627	18 Retirement System, the Teachers' Retirement System of the
6628	6628	19 State of Illinois, the General Assembly Retirement System, or
6629	6629	20 the Judges Retirement System of Illinois unless that service
6630	6630	21 has been forfeited under the laws of those systems; (2) a
6631	6631	22 person entering service on or after July 1, 1991 in a
6632	6632	23 noncovered position; (3) a person to whom Section 14-108.2a or
6633	6633	24 14-108.2b applies; or (4) a person to whom subsection (a-5) of
6634	6634	25 this Section applies.
6635	6635	26 (a-5) A person entering service on or after December 1,
6636	6636
6637	6637
6638	6638
6639	6639
6640	6640
6641	6641	HB4873 - 185 - LRB103 35886 RPS 65971 b
6642	6642
6643	6643
6644	6644	HB4873- 186 -LRB103 35886 RPS 65971 b HB4873 - 186 - LRB103 35886 RPS 65971 b
6645	6645	HB4873 - 186 - LRB103 35886 RPS 65971 b
6646	6646	1 2010 shall become a member as a condition of employment and
6647	6647	2 shall begin making contributions as of the first day of
6648	6648	3 employment. A person serving in the qualifying period on
6649	6649	4 December 1, 2010 will become a member on December 1, 2010 and
6650	6650	5 shall begin making contributions as of December 1, 2010.
6651	6651	6 (b) The term "employee" does not include the following:
6652	6652	7 (1) members of the State Legislature, and persons
6653	6653	8 electing to become members of the General Assembly
6654	6654	9 Retirement System pursuant to Section 2-105;
6655	6655	10 (2) incumbents of offices normally filled by vote of
6656	6656	11 the people;
6657	6657	12 (3) except as otherwise provided in this Section, any
6658	6658	13 person appointed by the Governor with the advice and
6659	6659	14 consent of the Senate unless that person elects to
6660	6660	15 participate in this system;
6661	6661	16 (3.1) any person serving as a commissioner of an
6662	6662	17 ethics commission created under the State Officials and
6663	6663	18 Employees Ethics Act unless that person elects to
6664	6664	19 participate in this system with respect to that service as
6665	6665	20 a commissioner;
6666	6666	21 (3.2) any person serving as a part-time employee in
6667	6667	22 any of the following positions: Legislative Inspector
6668	6668	23 General, Special Legislative Inspector General, employee
6669	6669	24 of the Office of the Legislative Inspector General,
6670	6670	25 Executive Director of the Legislative Ethics Commission,
6671	6671	26 or staff of the Legislative Ethics Commission, regardless
6672	6672
6673	6673
6674	6674
6675	6675
6676	6676
6677	6677	HB4873 - 186 - LRB103 35886 RPS 65971 b
6678	6678
6679	6679
6680	6680	HB4873- 187 -LRB103 35886 RPS 65971 b HB4873 - 187 - LRB103 35886 RPS 65971 b
6681	6681	HB4873 - 187 - LRB103 35886 RPS 65971 b
6682	6682	1 of whether he or she is in active service on or after July
6683	6683	2 8, 2004 (the effective date of Public Act 93-685), unless
6684	6684	3 that person elects to participate in this System with
6685	6685	4 respect to that service; in this item (3.2), a "part-time
6686	6686	5 employee" is a person who is not required to work at least
6687	6687	6 35 hours per week;
6688	6688	7 (3.3) any person who has made an election under
6689	6689	8 Section 1-123 and who is serving either as legal counsel
6690	6690	9 in the Office of the Governor or as Chief Deputy Attorney
6691	6691	10 General;
6692	6692	11 (4) except as provided in Section 14-108.2 or
6693	6693	12 14-108.2c, any person who is covered or eligible to be
6694	6694	13 covered by the Teachers' Retirement System of the State of
6695	6695	14 Illinois, the State Universities Retirement System, or the
6696	6696	15 Judges Retirement System of Illinois;
6697	6697	16 (5) an employee of a municipality or any other
6698	6698	17 political subdivision of the State;
6699	6699	18 (6) any person who becomes an employee after June 30,
6700	6700	19 1979 as a public service employment program participant
6701	6701	20 under the Federal Comprehensive Employment and Training
6702	6702	21 Act and whose wages or fringe benefits are paid in whole or
6703	6703	22 in part by funds provided under such Act;
6704	6704	23 (7) enrollees of the Illinois Young Adult Conservation
6705	6705	24 Corps program, administered by the Department of Natural
6706	6706	25 Resources, authorized grantee pursuant to Title VIII of
6707	6707	26 the "Comprehensive Employment and Training Act of 1973",
6708	6708
6709	6709
6710	6710
6711	6711
6712	6712
6713	6713	HB4873 - 187 - LRB103 35886 RPS 65971 b
6714	6714
6715	6715
6716	6716	HB4873- 188 -LRB103 35886 RPS 65971 b HB4873 - 188 - LRB103 35886 RPS 65971 b
6717	6717	HB4873 - 188 - LRB103 35886 RPS 65971 b
6718	6718	1 29 USC 993, as now or hereafter amended;
6719	6719	2 (8) enrollees and temporary staff of programs
6720	6720	3 administered by the Department of Natural Resources under
6721	6721	4 the Youth Conservation Corps Act of 1970;
6722	6722	5 (9) any person who is a member of any professional
6723	6723	6 licensing or disciplinary board created under an Act
6724	6724	7 administered by the Department of Professional Regulation
6725	6725	8 or a successor agency or created or re-created after the
6726	6726	9 effective date of this amendatory Act of 1997, and who
6727	6727	10 receives per diem compensation rather than a salary,
6728	6728	11 notwithstanding that such per diem compensation is paid by
6729	6729	12 warrant issued pursuant to a payroll voucher; such persons
6730	6730	13 have never been included in the membership of this System,
6731	6731	14 and this amendatory Act of 1987 (P.A. 84-1472) is not
6732	6732	15 intended to effect any change in the status of such
6733	6733	16 persons;
6734	6734	17 (10) any person who is a member of the Illinois Health
6735	6735	18 Care Cost Containment Council, and receives per diem
6736	6736	19 compensation rather than a salary, notwithstanding that
6737	6737	20 such per diem compensation is paid by warrant issued
6738	6738	21 pursuant to a payroll voucher; such persons have never
6739	6739	22 been included in the membership of this System, and this
6740	6740	23 amendatory Act of 1987 is not intended to effect any
6741	6741	24 change in the status of such persons;
6742	6742	25 (11) any person who is a member of the Oil and Gas
6743	6743	26 Board created by Section 1.2 of the Illinois Oil and Gas
6744	6744
6745	6745
6746	6746
6747	6747
6748	6748
6749	6749	HB4873 - 188 - LRB103 35886 RPS 65971 b
6750	6750
6751	6751
6752	6752	HB4873- 189 -LRB103 35886 RPS 65971 b HB4873 - 189 - LRB103 35886 RPS 65971 b
6753	6753	HB4873 - 189 - LRB103 35886 RPS 65971 b
6754	6754	1 Act, and receives per diem compensation rather than a
6755	6755	2 salary, notwithstanding that such per diem compensation is
6756	6756	3 paid by warrant issued pursuant to a payroll voucher;
6757	6757	4 (12) a person employed by the State Board of Higher
6758	6758	5 Education in a position with the Illinois Century Network
6759	6759	6 as of June 30, 2004, who remains continuously employed
6760	6760	7 after that date by the Department of Central Management
6761	6761	8 Services in a position with the Illinois Century Network
6762	6762	9 and participates in the Article 15 system with respect to
6763	6763	10 that employment;
6764	6764	11 (13) any person who first becomes a member of the
6765	6765	12 Civil Service Commission on or after January 1, 2012;
6766	6766	13 (14) any person, other than the Director of Employment
6767	6767	14 Security, who first becomes a member of the Board of
6768	6768	15 Review of the Department of Employment Security on or
6769	6769	16 after January 1, 2012;
6770	6770	17 (15) any person who first becomes a member of the
6771	6771	18 Civil Service Commission on or after January 1, 2012;
6772	6772	19 (16) any person who first becomes a member of the
6773	6773	20 Illinois Liquor Control Commission on or after January 1,
6774	6774	21 2012;
6775	6775	22 (17) any person who first becomes a member of the
6776	6776	23 Secretary of State Merit Commission on or after January 1,
6777	6777	24 2012;
6778	6778	25 (18) any person who first becomes a member of the
6779	6779	26 Human Rights Commission on or after January 1, 2012 unless
6780	6780
6781	6781
6782	6782
6783	6783
6784	6784
6785	6785	HB4873 - 189 - LRB103 35886 RPS 65971 b
6786	6786
6787	6787
6788	6788	HB4873- 190 -LRB103 35886 RPS 65971 b HB4873 - 190 - LRB103 35886 RPS 65971 b
6789	6789	HB4873 - 190 - LRB103 35886 RPS 65971 b
6790	6790	1 he or she is eligible to participate in accordance with
6791	6791	2 subsection (d) of this Section;
6792	6792	3 (19) any person who first becomes a member of the
6793	6793	4 State Mining Board on or after January 1, 2012;
6794	6794	5 (20) any person who first becomes a member of the
6795	6795	6 Property Tax Appeal Board on or after January 1, 2012;
6796	6796	7 (21) any person who first becomes a member of the
6797	6797	8 Illinois Racing Board on or after January 1, 2012;
6798	6798	9 (22) any person who first becomes a member of the
6799	6799	10 Illinois State Police Merit Board on or after January 1,
6800	6800	11 2012;
6801	6801	12 (23) any person who first becomes a member of the
6802	6802	13 Illinois State Toll Highway Authority on or after January
6803	6803	14 1, 2012; or
6804	6804	15 (24) any person who first becomes a member of the
6805	6805	16 Illinois State Board of Elections on or after January 1,
6806	6806	17 2012.
6807	6807	18 (c) An individual who represents or is employed as an
6808	6808	19 officer or employee of a statewide labor organization that
6809	6809	20 represents members of this System may participate in the
6810	6810	21 System and shall be deemed an employee, provided that (1) the
6811	6811	22 individual has previously earned creditable service under this
6812	6812	23 Article, (2) the individual files with the System an
6813	6813	24 irrevocable election to become a participant within 6 months
6814	6814	25 after the effective date of this amendatory Act of the 94th
6815	6815	26 General Assembly, and (3) the individual does not receive
6816	6816
6817	6817
6818	6818
6819	6819
6820	6820
6821	6821	HB4873 - 190 - LRB103 35886 RPS 65971 b
6822	6822
6823	6823
6824	6824	HB4873- 191 -LRB103 35886 RPS 65971 b HB4873 - 191 - LRB103 35886 RPS 65971 b
6825	6825	HB4873 - 191 - LRB103 35886 RPS 65971 b
6826	6826	1 credit for that employment under any other provisions of this
6827	6827	2 Code. An employee under this subsection (c) is responsible for
6828	6828	3 paying to the System both (i) employee contributions based on
6829	6829	4 the actual compensation received for service with the labor
6830	6830	5 organization and (ii) employer contributions based on the
6831	6831	6 percentage of payroll certified by the board; all or any part
6832	6832	7 of these contributions may be paid on the employee's behalf or
6833	6833	8 picked up for tax purposes (if authorized under federal law)
6834	6834	9 by the labor organization.
6835	6835	10 A person who is an employee as defined in this subsection
6836	6836	11 (c) may establish service credit for similar employment prior
6837	6837	12 to becoming an employee under this subsection by paying to the
6838	6838	13 System for that employment the contributions specified in this
6839	6839	14 subsection, plus interest at the effective rate from the date
6840	6840	15 of service to the date of payment. However, credit shall not be
6841	6841	16 granted under this subsection (c) for any such prior
6842	6842	17 employment for which the applicant received credit under any
6843	6843	18 other provision of this Code or during which the applicant was
6844	6844	19 on a leave of absence.
6845	6845	20 (d) A person appointed as a member of the Human Rights
6846	6846	21 Commission on or after June 1, 2019 may elect to participate in
6847	6847	22 the System and shall be deemed an employee. Service and
6848	6848	23 contributions shall begin on the first payroll period
6849	6849	24 immediately following the employee's election to participate
6850	6850	25 in the System.
6851	6851	26 A person who is an employee as described in this
6852	6852
6853	6853
6854	6854
6855	6855
6856	6856
6857	6857	HB4873 - 191 - LRB103 35886 RPS 65971 b
6858	6858
6859	6859
6860	6860	HB4873- 192 -LRB103 35886 RPS 65971 b HB4873 - 192 - LRB103 35886 RPS 65971 b
6861	6861	HB4873 - 192 - LRB103 35886 RPS 65971 b
6862	6862	1 subsection (d) may establish service credit for employment as
6863	6863	2 a Human Rights Commissioner that occurred on or after June 1,
6864	6864	3 2019 and before establishing service under this subsection by
6865	6865	4 paying to the System for that employment the contributions
6866	6866	5 specified in paragraph (1) of subsection (a) of Section
6867	6867	6 14-133, plus regular interest from the date of service to the
6868	6868	7 date of payment.
6869	6869	8 (Source: P.A. 101-10, eff. 6-5-19; 102-538, eff. 8-20-21.)
6870	6870	9 (40 ILCS 5/14-104) (from Ch. 108 1/2, par. 14-104)
6871	6871	10 Sec. 14-104. Service for which contributions permitted.
6872	6872	11 Contributions provided for in this Section shall cover the
6873	6873	12 period of service granted. Except as otherwise provided in
6874	6874	13 this Section, the contributions shall be based upon the
6875	6875	14 employee's compensation and contribution rate in effect on the
6876	6876	15 date he last became a member of the System; provided that for
6877	6877	16 all employment prior to January 1, 1969 the contribution rate
6878	6878	17 shall be that in effect for a noncovered employee on the date
6879	6879	18 he last became a member of the System. Except as otherwise
6880	6880	19 provided in this Section, contributions permitted under this
6881	6881	20 Section shall include regular interest from the date an
6882	6882	21 employee last became a member of the System to the date of
6883	6883	22 payment.
6884	6884	23 These contributions must be paid in full before retirement
6885	6885	24 either in a lump sum or in installment payments in accordance
6886	6886	25 with such rules as may be adopted by the board.
6887	6887
6888	6888
6889	6889
6890	6890
6891	6891
6892	6892	HB4873 - 192 - LRB103 35886 RPS 65971 b
6893	6893
6894	6894
6895	6895	HB4873- 193 -LRB103 35886 RPS 65971 b HB4873 - 193 - LRB103 35886 RPS 65971 b
6896	6896	HB4873 - 193 - LRB103 35886 RPS 65971 b
6897	6897	1 (a) Any member may make contributions as required in this
6898	6898	2 Section for any period of service, subsequent to the date of
6899	6899	3 establishment, but prior to the date of membership.
6900	6900	4 (b) Any employee who had been previously excluded from
6901	6901	5 membership because of age at entry and subsequently became
6902	6902	6 eligible may elect to make contributions as required in this
6903	6903	7 Section for the period of service during which he was
6904	6904	8 ineligible.
6905	6905	9 (c) An employee of the Department of Insurance who, after
6906	6906	10 January 1, 1944 but prior to becoming eligible for membership,
6907	6907	11 received salary from funds of insurance companies in the
6908	6908	12 process of rehabilitation, liquidation, conservation or
6909	6909	13 dissolution, may elect to make contributions as required in
6910	6910	14 this Section for such service.
6911	6911	15 (d) Any employee who rendered service in a State office to
6912	6912	16 which he was elected, or rendered service in the elective
6913	6913	17 office of Clerk of the Appellate Court prior to the date he
6914	6914	18 became a member, may make contributions for such service as
6915	6915	19 required in this Section. Any member who served by appointment
6916	6916	20 of the Governor under the Civil Administrative Code of
6917	6917	21 Illinois and did not participate in this System may make
6918	6918	22 contributions as required in this Section for such service.
6919	6919	23 (e) Any person employed by the United States government or
6920	6920	24 any instrumentality or agency thereof from January 1, 1942
6921	6921	25 through November 15, 1946 as the result of a transfer from
6922	6922	26 State service by executive order of the President of the
6923	6923
6924	6924
6925	6925
6926	6926
6927	6927
6928	6928	HB4873 - 193 - LRB103 35886 RPS 65971 b
6929	6929
6930	6930
6931	6931	HB4873- 194 -LRB103 35886 RPS 65971 b HB4873 - 194 - LRB103 35886 RPS 65971 b
6932	6932	HB4873 - 194 - LRB103 35886 RPS 65971 b
6933	6933	1 United States shall be entitled to prior service credit
6934	6934	2 covering the period from January 1, 1942 through December 31,
6935	6935	3 1943 as provided for in this Article and to membership service
6936	6936	4 credit for the period from January 1, 1944 through November
6937	6937	5 15, 1946 by making the contributions required in this Section.
6938	6938	6 A person so employed on January 1, 1944 but whose employment
6939	6939	7 began after January 1, 1942 may qualify for prior service and
6940	6940	8 membership service credit under the same conditions.
6941	6941	9 (f) An employee of the Department of Labor of the State of
6942	6942	10 Illinois who performed services for and under the supervision
6943	6943	11 of that Department prior to January 1, 1944 but who was
6944	6944	12 compensated for those services directly by federal funds and
6945	6945	13 not by a warrant of the Auditor of Public Accounts paid by the
6946	6946	14 State Treasurer may establish credit for such employment by
6947	6947	15 making the contributions required in this Section. An employee
6948	6948	16 of the Department of Agriculture of the State of Illinois, who
6949	6949	17 performed services for and under the supervision of that
6950	6950	18 Department prior to June 1, 1963, but was compensated for
6951	6951	19 those services directly by federal funds and not paid by a
6952	6952	20 warrant of the Auditor of Public Accounts paid by the State
6953	6953	21 Treasurer, and who did not contribute to any other public
6954	6954	22 employee retirement system for such service, may establish
6955	6955	23 credit for such employment by making the contributions
6956	6956	24 required in this Section.
6957	6957	25 (g) Any employee who executed a waiver of membership
6958	6958	26 within 60 days prior to January 1, 1944 may, at any time while
6959	6959
6960	6960
6961	6961
6962	6962
6963	6963
6964	6964	HB4873 - 194 - LRB103 35886 RPS 65971 b
6965	6965
6966	6966
6967	6967	HB4873- 195 -LRB103 35886 RPS 65971 b HB4873 - 195 - LRB103 35886 RPS 65971 b
6968	6968	HB4873 - 195 - LRB103 35886 RPS 65971 b
6969	6969	1 in the service of a department, file with the board a
6970	6970	2 rescission of such waiver. Upon making the contributions
6971	6971	3 required by this Section, the member shall be granted the
6972	6972	4 creditable service that would have been received if the waiver
6973	6973	5 had not been executed.
6974	6974	6 (h) Until May 1, 1990, an employee who was employed on a
6975	6975	7 full-time basis by a regional planning commission for at least
6976	6976	8 5 continuous years may establish creditable service for such
6977	6977	9 employment by making the contributions required under this
6978	6978	10 Section, provided that any credits earned by the employee in
6979	6979	11 the commission's retirement plan have been terminated.
6980	6980	12 (i) Any person who rendered full time contractual services
6981	6981	13 to the General Assembly as a member of a legislative staff may
6982	6982	14 establish service credit for up to 8 years of such services by
6983	6983	15 making the contributions required under this Section, provided
6984	6984	16 that application therefor is made not later than July 1, 1991.
6985	6985	17 (j) By paying the contributions otherwise required under
6986	6986	18 this Section, plus an amount determined by the Board to be
6987	6987	19 equal to the employer's normal cost of the benefit plus
6988	6988	20 interest, but with all of the interest calculated from the
6989	6989	21 date the employee last became a member of the System or
6990	6990	22 November 19, 1991, whichever is later, to the date of payment,
6991	6991	23 an employee may establish service credit for a period of up to
6992	6992	24 4 years spent in active military service for which he does not
6993	6993	25 qualify for credit under Section 14-105, provided that (1) he
6994	6994	26 was not dishonorably discharged from such military service,
6995	6995
6996	6996
6997	6997
6998	6998
6999	6999
7000	7000	HB4873 - 195 - LRB103 35886 RPS 65971 b
7001	7001
7002	7002
7003	7003	HB4873- 196 -LRB103 35886 RPS 65971 b HB4873 - 196 - LRB103 35886 RPS 65971 b
7004	7004	HB4873 - 196 - LRB103 35886 RPS 65971 b
7005	7005	1 and (2) the amount of service credit established by a member
7006	7006	2 under this subsection (j), when added to the amount of
7007	7007	3 military service credit granted to the member under subsection
7008	7008	4 (b) of Section 14-105, shall not exceed 5 years. The change in
7009	7009	5 the manner of calculating interest under this subsection (j)
7010	7010	6 made by this amendatory Act of the 92nd General Assembly
7011	7011	7 applies to credit purchased by an employee on or after its
7012	7012	8 effective date and does not entitle any person to a refund of
7013	7013	9 contributions or interest already paid. In compliance with
7014	7014	10 Section 14-152.1 of this Act concerning new benefit increases,
7015	7015	11 any new benefit increase as a result of the changes to this
7016	7016	12 subsection (j) made by Public Act 95-483 is funded through the
7017	7017	13 employee contributions provided for in this subsection (j).
7018	7018	14 Any new benefit increase as a result of the changes made to
7019	7019	15 this subsection (j) by Public Act 95-483 is exempt from the
7020	7020	16 provisions of subsection (d) of Section 14-152.1.
7021	7021	17 (k) An employee who was employed on a full-time basis by
7022	7022	18 the Illinois State's Attorneys Association Statewide Appellate
7023	7023	19 Assistance Service LEAA-ILEC grant project prior to the time
7024	7024	20 that project became the State's Attorneys Appellate Service
7025	7025	21 Commission, now the Office of the State's Attorneys Appellate
7026	7026	22 Prosecutor, an agency of State government, may establish
7027	7027	23 creditable service for not more than 60 months service for
7028	7028	24 such employment by making contributions required under this
7029	7029	25 Section.
7030	7030	26 (l) By paying the contributions otherwise required under
7031	7031
7032	7032
7033	7033
7034	7034
7035	7035
7036	7036	HB4873 - 196 - LRB103 35886 RPS 65971 b
7037	7037
7038	7038
7039	7039	HB4873- 197 -LRB103 35886 RPS 65971 b HB4873 - 197 - LRB103 35886 RPS 65971 b
7040	7040	HB4873 - 197 - LRB103 35886 RPS 65971 b
7041	7041	1 this Section, plus an amount determined by the Board to be
7042	7042	2 equal to the employer's normal cost of the benefit plus
7043	7043	3 interest, a member may establish service credit for periods of
7044	7044	4 less than one year spent on authorized leave of absence from
7045	7045	5 service, provided that (1) the period of leave began on or
7046	7046	6 after January 1, 1982 and (2) any credit established by the
7047	7047	7 member for the period of leave in any other public employee
7048	7048	8 retirement system has been terminated. A member may establish
7049	7049	9 service credit under this subsection for more than one period
7050	7050	10 of authorized leave, and in that case the total period of
7051	7051	11 service credit established by the member under this subsection
7052	7052	12 may exceed one year. In determining the contributions required
7053	7053	13 for establishing service credit under this subsection, the
7054	7054	14 interest shall be calculated from the beginning of the leave
7055	7055	15 of absence to the date of payment.
7056	7056	16 (l-5) By paying the contributions otherwise required under
7057	7057	17 this Section, plus an amount determined by the Board to be
7058	7058	18 equal to the employer's normal cost of the benefit plus
7059	7059	19 interest, a member may establish service credit for periods of
7060	7060	20 up to 2 years spent on authorized leave of absence from
7061	7061	21 service, provided that during that leave the member
7062	7062	22 represented or was employed as an officer or employee of a
7063	7063	23 statewide labor organization that represents members of this
7064	7064	24 System. In determining the contributions required for
7065	7065	25 establishing service credit under this subsection, the
7066	7066	26 interest shall be calculated from the beginning of the leave
7067	7067
7068	7068
7069	7069
7070	7070
7071	7071
7072	7072	HB4873 - 197 - LRB103 35886 RPS 65971 b
7073	7073
7074	7074
7075	7075	HB4873- 198 -LRB103 35886 RPS 65971 b HB4873 - 198 - LRB103 35886 RPS 65971 b
7076	7076	HB4873 - 198 - LRB103 35886 RPS 65971 b
7077	7077	1 of absence to the date of payment.
7078	7078	2 (m) Any person who rendered contractual services to a
7079	7079	3 member of the General Assembly as a worker in the member's
7080	7080	4 district office may establish creditable service for up to 3
7081	7081	5 years of those contractual services by making the
7082	7082	6 contributions required under this Section. The System shall
7083	7083	7 determine a full-time salary equivalent for the purpose of
7084	7084	8 calculating the required contribution. To establish credit
7085	7085	9 under this subsection, the applicant must apply to the System
7086	7086	10 by March 1, 1998.
7087	7087	11 (n) Any person who rendered contractual services to a
7088	7088	12 member of the General Assembly as a worker providing
7089	7089	13 constituent services to persons in the member's district may
7090	7090	14 establish creditable service for up to 8 years of those
7091	7091	15 contractual services by making the contributions required
7092	7092	16 under this Section. The System shall determine a full-time
7093	7093	17 salary equivalent for the purpose of calculating the required
7094	7094	18 contribution. To establish credit under this subsection, the
7095	7095	19 applicant must apply to the System by March 1, 1998.
7096	7096	20 (o) A member who participated in the Illinois Legislative
7097	7097	21 Staff Internship Program may establish creditable service for
7098	7098	22 up to one year of that participation by making the
7099	7099	23 contribution required under this Section. The System shall
7100	7100	24 determine a full-time salary equivalent for the purpose of
7101	7101	25 calculating the required contribution. Credit may not be
7102	7102	26 established under this subsection for any period for which
7103	7103
7104	7104
7105	7105
7106	7106
7107	7107
7108	7108	HB4873 - 198 - LRB103 35886 RPS 65971 b
7109	7109
7110	7110
7111	7111	HB4873- 199 -LRB103 35886 RPS 65971 b HB4873 - 199 - LRB103 35886 RPS 65971 b
7112	7112	HB4873 - 199 - LRB103 35886 RPS 65971 b
7113	7113	1 service credit is established under any other provision of
7114	7114	2 this Code.
7115	7115	3 (p) By paying the contributions otherwise required under
7116	7116	4 this Section, plus an amount determined by the Board to be
7117	7117	5 equal to the employer's normal cost of the benefit plus
7118	7118	6 interest, a member may establish service credit for a period
7119	7119	7 of up to 8 years during which he or she was employed by the
7120	7120	8 Visually Handicapped Managers of Illinois in a vending program
7121	7121	9 operated under a contractual agreement with the Department of
7122	7122	10 Rehabilitation Services or its successor agency.
7123	7123	11 This subsection (p) applies without regard to whether the
7124	7124	12 person was in service on or after the effective date of this
7125	7125	13 amendatory Act of the 94th General Assembly. In the case of a
7126	7126	14 person who is receiving a retirement annuity on that effective
7127	7127	15 date, the increase, if any, shall begin to accrue on the first
7128	7128	16 annuity payment date following receipt by the System of the
7129	7129	17 contributions required under this subsection (p).
7130	7130	18 (q) By paying the required contributions under this
7131	7131	19 Section, plus an amount determined by the Board to be equal to
7132	7132	20 the employer's normal cost of the benefit plus interest, an
7133	7133	21 employee who was laid off but returned to any State employment
7134	7134	22 may establish creditable service for the period of the layoff,
7135	7135	23 provided that (1) the applicant applies for the creditable
7136	7136	24 service under this subsection (q) within 6 months after July
7137	7137	25 27, 2010 (the effective date of Public Act 96-1320), (2) the
7138	7138	26 applicant does not receive credit for that period under any
7139	7139
7140	7140
7141	7141
7142	7142
7143	7143
7144	7144	HB4873 - 199 - LRB103 35886 RPS 65971 b
7145	7145
7146	7146
7147	7147	HB4873- 200 -LRB103 35886 RPS 65971 b HB4873 - 200 - LRB103 35886 RPS 65971 b
7148	7148	HB4873 - 200 - LRB103 35886 RPS 65971 b
7149	7149	1 other provision of this Code, (3) at the time of the layoff,
7150	7150	2 the applicant is not in an initial probationary status
7151	7151	3 consistent with the rules of the Department of Central
7152	7152	4 Management Services, and (4) the total amount of creditable
7153	7153	5 service established by the applicant under this subsection (q)
7154	7154	6 does not exceed 3 years. For service established under this
7155	7155	7 subsection (q), the required employee contribution shall be
7156	7156	8 based on the rate of compensation earned by the employee on the
7157	7157	9 date of returning to employment after the layoff and the
7158	7158	10 contribution rate then in effect, and the required interest
7159	7159	11 shall be calculated at the actuarially assumed rate from the
7160	7160	12 date of returning to employment after the layoff to the date of
7161	7161	13 payment. Funding for any new benefit increase, as defined in
7162	7162	14 Section 14-152.1 of this Act, that is created under this
7163	7163	15 subsection (q) will be provided by the employee contributions
7164	7164	16 required under this subsection (q).
7165	7165	17 (r) A member who participated in the University of
7166	7166	18 Illinois Government Public Service Internship Program (GPSI)
7167	7167	19 may establish creditable service for up to 2 years of that
7168	7168	20 participation by making the contribution required under this
7169	7169	21 Section, plus an amount determined by the Board to be equal to
7170	7170	22 the employer's normal cost of the benefit plus interest. The
7171	7171	23 System shall determine a full-time salary equivalent for the
7172	7172	24 purpose of calculating the required contribution. Credit may
7173	7173	25 not be established under this subsection for any period for
7174	7174	26 which service credit is established under any other provision
7175	7175
7176	7176
7177	7177
7178	7178
7179	7179
7180	7180	HB4873 - 200 - LRB103 35886 RPS 65971 b
7181	7181
7182	7182
7183	7183	HB4873- 201 -LRB103 35886 RPS 65971 b HB4873 - 201 - LRB103 35886 RPS 65971 b
7184	7184	HB4873 - 201 - LRB103 35886 RPS 65971 b
7185	7185	1 of this Code.
7186	7186	2 (s) A member who worked as a nurse under a contractual
7187	7187	3 agreement for the Department of Public Aid, or its successor
7188	7188	4 agency, the Department of Human Services, in the Client
7189	7189	5 Assessment Unit and was subsequently determined to be a State
7190	7190	6 employee by the United States Internal Revenue Service and the
7191	7191	7 Illinois Labor Relations Board may establish creditable
7192	7192	8 service for those contractual services by making the
7193	7193	9 contributions required under this Section. To establish credit
7194	7194	10 under this subsection, the applicant must apply to the System
7195	7195	11 by July 1, 2008.
7196	7196	12 The Department of Human Services shall pay an employer
7197	7197	13 contribution based upon an amount determined by the Board to
7198	7198	14 be equal to the employer's normal cost of the benefit, plus
7199	7199	15 interest.
7200	7200	16 In compliance with Section 14-152.1 added by Public Act
7201	7201	17 94-4, the cost of the benefits provided by Public Act 95-583
7202	7202	18 are offset by the required employee and employer
7203	7203	19 contributions.
7204	7204	20 (t) Any person who rendered contractual services on a
7205	7205	21 full-time basis to the Illinois Institute of Natural Resources
7206	7206	22 and the Illinois Department of Energy and Natural Resources
7207	7207	23 may establish creditable service for up to 4 years of those
7208	7208	24 contractual services by making the contributions required
7209	7209	25 under this Section, plus an amount determined by the Board to
7210	7210	26 be equal to the employer's normal cost of the benefit plus
7211	7211
7212	7212
7213	7213
7214	7214
7215	7215
7216	7216	HB4873 - 201 - LRB103 35886 RPS 65971 b
7217	7217
7218	7218
7219	7219	HB4873- 202 -LRB103 35886 RPS 65971 b HB4873 - 202 - LRB103 35886 RPS 65971 b
7220	7220	HB4873 - 202 - LRB103 35886 RPS 65971 b
7221	7221	1 interest at the actuarially assumed rate from the first day of
7222	7222	2 the service for which credit is being established to the date
7223	7223	3 of payment. To establish credit under this subsection (t), the
7224	7224	4 applicant must apply to the System within 6 months after July
7225	7225	5 27, 2010 (the effective date of Public Act 96-1320).
7226	7226	6 (u) By paying the required contributions under this
7227	7227	7 Section, plus an amount determined by the Board to be equal to
7228	7228	8 the employer's normal cost of the benefit, plus interest, a
7229	7229	9 member may establish creditable service and earnings credit
7230	7230	10 for periods of furlough beginning on or after July 1, 2008. To
7231	7231	11 receive this credit, the participant must (i) apply in writing
7232	7232	12 to the System before December 31, 2011 and (ii) not receive
7233	7233	13 compensation for the furlough period. For service established
7234	7234	14 under this subsection, the required employee contribution
7235	7235	15 shall be based on the rate of compensation earned by the
7236	7236	16 employee immediately following the date of the first furlough
7237	7237	17 day in the time period specified in this subsection (u), and
7238	7238	18 the required interest shall be calculated at the actuarially
7239	7239	19 assumed rate from the date of the furlough to the date of
7240	7240	20 payment.
7241	7241	21 (v) Any member who rendered full-time contractual services
7242	7242	22 to an Illinois Veterans Home operated by the Department of
7243	7243	23 Veterans' Affairs may establish service credit for up to 8
7244	7244	24 years of such services by making the contributions required
7245	7245	25 under this Section, plus an amount determined by the Board to
7246	7246	26 be equal to the employer's normal cost of the benefit, plus
7247	7247
7248	7248
7249	7249
7250	7250
7251	7251
7252	7252	HB4873 - 202 - LRB103 35886 RPS 65971 b
7253	7253
7254	7254
7255	7255	HB4873- 203 -LRB103 35886 RPS 65971 b HB4873 - 203 - LRB103 35886 RPS 65971 b
7256	7256	HB4873 - 203 - LRB103 35886 RPS 65971 b
7257	7257	1 interest at the actuarially assumed rate. To establish credit
7258	7258	2 under this subsection, the applicant must apply to the System
7259	7259	3 no later than 6 months after July 27, 2010 (the effective date
7260	7260	4 of Public Act 96-1320).
7261	7261	5 (w) Any employee who served as a member of the General
7262	7262	6 Assembly and did not contribute to any other public employee
7263	7263	7 retirement system for such service may establish service
7264	7264	8 credit for up to 10 years of that service by making the
7265	7265	9 contributions required under this Section, plus an amount
7266	7266	10 determined by the Board to be equal to the employer's normal
7267	7267	11 cost of the benefit, plus interest at the actuarially assumed
7268	7268	12 rate. To establish credit under this subsection, the applicant
7269	7269	13 must make the contributions required under this subsection no
7270	7270	14 later than 10 years after making application to the System.
7271	7271	15 (x) Any employee who served as a judge, as defined in
7272	7272	16 Section 18-108, and did not contribute to any other public
7273	7273	17 employee retirement system for such service may establish
7274	7274	18 service credit for up to 10 years of that service by making the
7275	7275	19 contributions required under this Section, plus an amount
7276	7276	20 determined by the Board to be equal to the employer's normal
7277	7277	21 cost of the benefit, plus interest at the actuarially assumed
7278	7278	22 rate. To establish credit under this subsection, the applicant
7279	7279	23 must make the contributions required under this subsection no
7280	7280	24 later than 10 years after making application to the System.
7281	7281	25 (Source: P.A. 96-97, eff. 7-27-09; 96-718, eff. 8-25-09;
7282	7282	26 96-775, eff. 8-28-09; 96-961, eff. 7-2-10; 96-1000, eff.
7283	7283
7284	7284
7285	7285
7286	7286
7287	7287
7288	7288	HB4873 - 203 - LRB103 35886 RPS 65971 b
7289	7289
7290	7290
7291	7291	HB4873- 204 -LRB103 35886 RPS 65971 b HB4873 - 204 - LRB103 35886 RPS 65971 b
7292	7292	HB4873 - 204 - LRB103 35886 RPS 65971 b
7293	7293	1 7-2-10; 96-1320, eff. 7-27-10; 96-1535, eff. 3-4-11; 97-333,
7294	7294	2 8-12-11.)
7295	7295	3 (40 ILCS 5/14-104.14 new)
7296	7296	4 Sec. 14-104.14. Transfer of service from the Judges
7297	7297	5 Retirement System of Illinois. An active participant in the
7298	7298	6 Judges Retirement System of Illinois may elect to terminate
7299	7299	7 participation in the Judges Retirement System of Illinois in
7300	7300	8 accordance with subsection (b) of Section 18-120. All credits
7301	7301	9 and creditable service accumulated under Article 18 shall be
7302	7302	10 transferred to this System upon payment to this System of (1)
7303	7303	11 the amount by which the employer and employee contributions
7304	7304	12 that would have been required if he or she had participated in
7305	7305	13 this System during the period for which credit is being
7306	7306	14 transferred, plus regular interest, exceeds the amounts
7307	7307	15 actually transferred under that Section to this System, plus
7308	7308	16 (2) regular interest thereon from the date of such
7309	7309	17 participation to the date of payment.
7310	7310	18 (40 ILCS 5/14-105.4) (from Ch. 108 1/2, par. 14-105.4)
7311	7311	19 Sec. 14-105.4. Transfer of service from the General
7312	7312	20 Assembly Retirement System.
7313	7313	21 (a) Persons otherwise required or eligible to participate
7314	7314	22 in this System who elect to continue participation in the
7315	7315	23 General Assembly Retirement System under Section 2-117.1 may
7316	7316	24 not participate in this System for the duration of such
7317	7317
7318	7318
7319	7319
7320	7320
7321	7321
7322	7322	HB4873 - 204 - LRB103 35886 RPS 65971 b
7323	7323
7324	7324
7325	7325	HB4873- 205 -LRB103 35886 RPS 65971 b HB4873 - 205 - LRB103 35886 RPS 65971 b
7326	7326	HB4873 - 205 - LRB103 35886 RPS 65971 b
7327	7327	1 continued participation under Section 2-117.1.
7328	7328	2 (b) Upon terminating such continued participation, a
7329	7329	3 person may transfer credits and creditable service accumulated
7330	7330	4 under Section 2-117.1 to this System, upon payment to this
7331	7331	5 System of (1) the amount by which the employer and employee
7332	7332	6 contributions that would have been required if he had
7333	7333	7 participated in this System during the period for which credit
7334	7334	8 under Section 2-117.1 is being transferred, plus regular
7335	7335	9 interest, exceeds the amounts actually transferred under that
7336	7336	10 Section to this System, plus (2) regular interest thereon from
7337	7337	11 the date of such participation to the date of payment.
7338	7338	12 (c) An active participant in the General Assembly
7339	7339	13 Retirement System may elect to terminate participation in the
7340	7340	14 General Assembly Retirement System in accordance with
7341	7341	15 subsection (c) of Section 2-117. All credits and creditable
7342	7342	16 service accumulated under Article 2 shall be transferred to
7343	7343	17 this System upon payment to this System of (1) the amount by
7344	7344	18 which the employer and employee contributions that would have
7345	7345	19 been required if he or she had participated in this System
7346	7346	20 during the period for which credit is being transferred, plus
7347	7347	21 regular interest, exceeds the amounts actually transferred
7348	7348	22 under that Section to this System, plus (2) regular interest
7349	7349	23 thereon from the date of such participation to the date of
7350	7350	24 payment.
7351	7351	25 (Source: P.A. 83-430.)
7352	7352
7353	7353
7354	7354
7355	7355
7356	7356
7357	7357	HB4873 - 205 - LRB103 35886 RPS 65971 b
7358	7358
7359	7359
7360	7360	HB4873- 206 -LRB103 35886 RPS 65971 b HB4873 - 206 - LRB103 35886 RPS 65971 b
7361	7361	HB4873 - 206 - LRB103 35886 RPS 65971 b
7362	7362	1 (40 ILCS 5/18-101) (from Ch. 108 1/2, par. 18-101)
7363	7363	2 Sec. 18-101. Creation of fund. A retirement system is
7364	7364	3 created to be known as the "Judges Retirement System of
7365	7365	4 Illinois". It shall be a trust separate and distinct from all
7366	7366	5 other entities, maintained for the purpose of securing the
7367	7367	6 payment of annuities and benefits as prescribed herein.
7368	7368	7 Participation in the retirement system created under this
7369	7369	8 Article is restricted to persons who became participants of
7370	7370	9 the System before January 13, 2027. Beginning on that date,
7371	7371	10 the System shall not accept any new participants.
7372	7372	11 (Source: Laws 1963, p. 161.)
7373	7373	12 (40 ILCS 5/18-108) (from Ch. 108 1/2, par. 18-108)
7374	7374	13 Sec. 18-108. Judge. "Judge": Any person who receives
7375	7375	14 payment for personal services as a judge or associate judge of
7376	7376	15 a court; and any person, previously a participant, who
7377	7377	16 receives payment for personal services as the administrative
7378	7378	17 director appointed by the Supreme Court.
7379	7379	18 Notwithstanding any other provision of this Article, a
7380	7380	19 person shall not be deemed a judge for the purposes of this
7381	7381	20 Article unless he or she became a participant of the System
7382	7382	21 before January 13, 2027.
7383	7383	22 (Source: P.A. 83-1440.)
7384	7384	23 (40 ILCS 5/18-109) (from Ch. 108 1/2, par. 18-109)
7385	7385	24 Sec. 18-109. Eligible judge. "Eligible judge": Any judge
7386	7386
7387	7387
7388	7388
7389	7389
7390	7390
7391	7391	HB4873 - 206 - LRB103 35886 RPS 65971 b
7392	7392
7393	7393
7394	7394	HB4873- 207 -LRB103 35886 RPS 65971 b HB4873 - 207 - LRB103 35886 RPS 65971 b
7395	7395	HB4873 - 207 - LRB103 35886 RPS 65971 b
7396	7396	1 except one who has elected not to participate in this system.
7397	7397	2 Notwithstanding any other provision of this Article, a
7398	7398	3 person shall not be deemed an eligible judge for the purposes
7399	7399	4 of this Article unless he or she became a participant of the
7400	7400	5 System before January 13, 2027.
7401	7401	6 (Source: P.A. 83-1440.)
7402	7402	7 (40 ILCS 5/18-110) (from Ch. 108 1/2, par. 18-110)
7403	7403	8 Sec. 18-110. Participant. "Participant": Any judge
7404	7404	9 participating in this system as specified in Sections 18-120
7405	7405	10 and 18-121.
7406	7406	11 Notwithstanding any other provision of this Article, a
7407	7407	12 person shall not be deemed a participant for the purposes of
7408	7408	13 this Article unless he or she became a participant of the
7409	7409	14 System before January 13, 2027.
7410	7410	15 (Source: P.A. 83-1440.)
7411	7411	16 (40 ILCS 5/18-120) (from Ch. 108 1/2, par. 18-120)
7412	7412	17 Sec. 18-120. Employee participation; election not to
7413	7413	18 participate or terminate participation.
7414	7414	19 (a) An eligible judge who is not a participant shall
7415	7415	20 become a participant beginning on the date he or she becomes an
7416	7416	21 eligible judge, unless the judge files with the board a
7417	7417	22 written notice of election not to participate within 30 days
7418	7418	23 of the date of being notified of the option.
7419	7419	24 A person electing not to participate shall thereafter be
7420	7420
7421	7421
7422	7422
7423	7423
7424	7424
7425	7425	HB4873 - 207 - LRB103 35886 RPS 65971 b
7426	7426
7427	7427
7428	7428	HB4873- 208 -LRB103 35886 RPS 65971 b HB4873 - 208 - LRB103 35886 RPS 65971 b
7429	7429	HB4873 - 208 - LRB103 35886 RPS 65971 b
7430	7430	1 ineligible to become a participant unless the election is
7431	7431	2 revoked as provided in Section 18-121.
7432	7432	3 (b) Notwithstanding any other provision of this Article,
7433	7433	4 an active participant may irrevocably elect, in writing and in
7434	7434	5 a form and manner prescribed by the board, to terminate
7435	7435	6 participation in the System and instead participate in the
7436	7436	7 retirement system established under Article 14. Upon making
7437	7437	8 the election under this subsection (b), all credits and
7438	7438	9 creditable service shall be transferred to the retirement
7439	7439	10 system under Article 14 in accordance with Section 14-104.14
7440	7440	11 and all participation in this System is terminated.
7441	7441	12 (Source: P.A. 83-1440.)
7442	7442	13 Article 9.
7443	7443	14 Section 9-5. The Illinois Pension Code is amended by
7444	7444	15 changing Sections 1-160 and 15-135 as follows:
7445	7445	16 (40 ILCS 5/1-160)
7446	7446	17 (Text of Section from P.A. 102-719)
7447	7447	18 Sec. 1-160. Provisions applicable to new hires.
7448	7448	19 (a) The provisions of this Section apply to a person who,
7449	7449	20 on or after January 1, 2011, first becomes a member or a
7450	7450	21 participant under any reciprocal retirement system or pension
7451	7451	22 fund established under this Code, other than a retirement
7452	7452	23 system or pension fund established under Article 2, 3, 4, 5, 6,
7453	7453
7454	7454
7455	7455
7456	7456
7457	7457
7458	7458	HB4873 - 208 - LRB103 35886 RPS 65971 b
7459	7459
7460	7460
7461	7461	HB4873- 209 -LRB103 35886 RPS 65971 b HB4873 - 209 - LRB103 35886 RPS 65971 b
7462	7462	HB4873 - 209 - LRB103 35886 RPS 65971 b
7463	7463	1 7, 15, or 18 of this Code, notwithstanding any other provision
7464	7464	2 of this Code to the contrary, but do not apply to any
7465	7465	3 self-managed plan established under this Code or to any
7466	7466	4 participant of the retirement plan established under Section
7467	7467	5 22-101; except that this Section applies to a person who
7468	7468	6 elected to establish alternative credits by electing in
7469	7469	7 writing after January 1, 2011, but before August 8, 2011,
7470	7470	8 under Section 7-145.1 of this Code. Notwithstanding anything
7471	7471	9 to the contrary in this Section, for purposes of this Section,
7472	7472	10 a person who is a Tier 1 regular employee as defined in Section
7473	7473	11 7-109.4 of this Code or who participated in a retirement
7474	7474	12 system under Article 15 prior to January 1, 2011 shall be
7475	7475	13 deemed a person who first became a member or participant prior
7476	7476	14 to January 1, 2011 under any retirement system or pension fund
7477	7477	15 subject to this Section. The changes made to this Section by
7478	7478	16 Public Act 98-596 are a clarification of existing law and are
7479	7479	17 intended to be retroactive to January 1, 2011 (the effective
7480	7480	18 date of Public Act 96-889), notwithstanding the provisions of
7481	7481	19 Section 1-103.1 of this Code.
7482	7482	20 This Section does not apply to a person who first becomes a
7483	7483	21 noncovered employee under Article 14 on or after the
7484	7484	22 implementation date of the plan created under Section 1-161
7485	7485	23 for that Article, unless that person elects under subsection
7486	7486	24 (b) of Section 1-161 to instead receive the benefits provided
7487	7487	25 under this Section and the applicable provisions of that
7488	7488	26 Article.
7489	7489
7490	7490
7491	7491
7492	7492
7493	7493
7494	7494	HB4873 - 209 - LRB103 35886 RPS 65971 b
7495	7495
7496	7496
7497	7497	HB4873- 210 -LRB103 35886 RPS 65971 b HB4873 - 210 - LRB103 35886 RPS 65971 b
7498	7498	HB4873 - 210 - LRB103 35886 RPS 65971 b
7499	7499	1 This Section does not apply to a person who first becomes a
7500	7500	2 member or participant under Article 16 on or after the
7501	7501	3 implementation date of the plan created under Section 1-161
7502	7502	4 for that Article, unless that person elects under subsection
7503	7503	5 (b) of Section 1-161 to instead receive the benefits provided
7504	7504	6 under this Section and the applicable provisions of that
7505	7505	7 Article.
7506	7506	8 This Section does not apply to a person who elects under
7507	7507	9 subsection (c-5) of Section 1-161 to receive the benefits
7508	7508	10 under Section 1-161.
7509	7509	11 This Section does not apply to a person who first becomes a
7510	7510	12 member or participant of an affected pension fund on or after 6
7511	7511	13 months after the resolution or ordinance date, as defined in
7512	7512	14 Section 1-162, unless that person elects under subsection (c)
7513	7513	15 of Section 1-162 to receive the benefits provided under this
7514	7514	16 Section and the applicable provisions of the Article under
7515	7515	17 which he or she is a member or participant.
7516	7516	18 (b) "Final average salary" means, except as otherwise
7517	7517	19 provided in this subsection, the average monthly (or annual)
7518	7518	20 salary obtained by dividing the total salary or earnings
7519	7519	21 calculated under the Article applicable to the member or
7520	7520	22 participant during the 96 consecutive months (or 8 consecutive
7521	7521	23 years) of service within the last 120 months (or 10 years) of
7522	7522	24 service in which the total salary or earnings calculated under
7523	7523	25 the applicable Article was the highest by the number of months
7524	7524	26 (or years) of service in that period. For the purposes of a
7525	7525
7526	7526
7527	7527
7528	7528
7529	7529
7530	7530	HB4873 - 210 - LRB103 35886 RPS 65971 b
7531	7531
7532	7532
7533	7533	HB4873- 211 -LRB103 35886 RPS 65971 b HB4873 - 211 - LRB103 35886 RPS 65971 b
7534	7534	HB4873 - 211 - LRB103 35886 RPS 65971 b
7535	7535	1 person who first becomes a member or participant of any
7536	7536	2 retirement system or pension fund to which this Section
7537	7537	3 applies on or after January 1, 2011, in this Code, "final
7538	7538	4 average salary" shall be substituted for the following:
7539	7539	5 (1) (Blank).
7540	7540	6 (2) In Articles 8, 9, 10, 11, and 12, "highest average
7541	7541	7 annual salary for any 4 consecutive years within the last
7542	7542	8 10 years of service immediately preceding the date of
7543	7543	9 withdrawal".
7544	7544	10 (3) In Article 13, "average final salary".
7545	7545	11 (4) In Article 14, "final average compensation".
7546	7546	12 (5) In Article 17, "average salary".
7547	7547	13 (6) In Section 22-207, "wages or salary received by
7548	7548	14 him at the date of retirement or discharge".
7549	7549	15 A member of the Teachers' Retirement System of the State
7550	7550	16 of Illinois who retires on or after June 1, 2021 and for whom
7551	7551	17 the 2020-2021 school year is used in the calculation of the
7552	7552	18 member's final average salary shall use the higher of the
7553	7553	19 following for the purpose of determining the member's final
7554	7554	20 average salary:
7555	7555	21 (A) the amount otherwise calculated under the first
7556	7556	22 paragraph of this subsection; or
7557	7557	23 (B) an amount calculated by the Teachers' Retirement
7558	7558	24 System of the State of Illinois using the average of the
7559	7559	25 monthly (or annual) salary obtained by dividing the total
7560	7560	26 salary or earnings calculated under Article 16 applicable
7561	7561
7562	7562
7563	7563
7564	7564
7565	7565
7566	7566	HB4873 - 211 - LRB103 35886 RPS 65971 b
7567	7567
7568	7568
7569	7569	HB4873- 212 -LRB103 35886 RPS 65971 b HB4873 - 212 - LRB103 35886 RPS 65971 b
7570	7570	HB4873 - 212 - LRB103 35886 RPS 65971 b
7571	7571	1 to the member or participant during the 96 months (or 8
7572	7572	2 years) of service within the last 120 months (or 10 years)
7573	7573	3 of service in which the total salary or earnings
7574	7574	4 calculated under the Article was the highest by the number
7575	7575	5 of months (or years) of service in that period.
7576	7576	6 (b-5) Beginning on January 1, 2011, for all purposes under
7577	7577	7 this Code (including without limitation the calculation of
7578	7578	8 benefits and employee contributions), the annual earnings,
7579	7579	9 salary, or wages (based on the plan year) of a member or
7580	7580	10 participant to whom this Section applies shall not exceed
7581	7581	11 $106,800; however, that amount shall annually thereafter be
7582	7582	12 increased by the lesser of (i) 3% of that amount, including all
7583	7583	13 previous adjustments, or (ii) one-half the annual unadjusted
7584	7584	14 percentage increase (but not less than zero) in the consumer
7585	7585	15 price index-u for the 12 months ending with the September
7586	7586	16 preceding each November 1, including all previous adjustments.
7587	7587	17 For the purposes of this Section, "consumer price index-u"
7588	7588	18 means the index published by the Bureau of Labor Statistics of
7589	7589	19 the United States Department of Labor that measures the
7590	7590	20 average change in prices of goods and services purchased by
7591	7591	21 all urban consumers, United States city average, all items,
7592	7592	22 1982-84 = 100. The new amount resulting from each annual
7593	7593	23 adjustment shall be determined by the Public Pension Division
7594	7594	24 of the Department of Insurance and made available to the
7595	7595	25 boards of the retirement systems and pension funds by November
7596	7596	26 1 of each year.
7597	7597
7598	7598
7599	7599
7600	7600
7601	7601
7602	7602	HB4873 - 212 - LRB103 35886 RPS 65971 b
7603	7603
7604	7604
7605	7605	HB4873- 213 -LRB103 35886 RPS 65971 b HB4873 - 213 - LRB103 35886 RPS 65971 b
7606	7606	HB4873 - 213 - LRB103 35886 RPS 65971 b
7607	7607	1 (b-10) Beginning on January 1, 2024, for all purposes
7608	7608	2 under this Code (including, without limitation, the
7609	7609	3 calculation of benefits and employee contributions), the
7610	7610	4 annual earnings, salary, or wages (based on the plan year) of a
7611	7611	5 member or participant under Article 9 to whom this Section
7612	7612	6 applies shall include an annual earnings, salary, or wage cap
7613	7613	7 that tracks the Social Security wage base. Maximum annual
7614	7614	8 earnings, wages, or salary shall be the annual contribution
7615	7615	9 and benefit base established for the applicable year by the
7616	7616	10 Commissioner of the Social Security Administration under the
7617	7617	11 federal Social Security Act.
7618	7618	12 However, in no event shall the annual earnings, salary, or
7619	7619	13 wages for the purposes of this Article and Article 9 exceed any
7620	7620	14 limitation imposed on annual earnings, salary, or wages under
7621	7621	15 Section 1-117. Under no circumstances shall the maximum amount
7622	7622	16 of annual earnings, salary, or wages be greater than the
7623	7623	17 amount set forth in this subsection (b-10) as a result of
7624	7624	18 reciprocal service or any provisions regarding reciprocal
7625	7625	19 services, nor shall the Fund under Article 9 be required to pay
7626	7626	20 any refund as a result of the application of this maximum
7627	7627	21 annual earnings, salary, and wage cap.
7628	7628	22 Nothing in this subsection (b-10) shall cause or otherwise
7629	7629	23 result in any retroactive adjustment of any employee
7630	7630	24 contributions. Nothing in this subsection (b-10) shall cause
7631	7631	25 or otherwise result in any retroactive adjustment of
7632	7632	26 disability or other payments made between January 1, 2011 and
7633	7633
7634	7634
7635	7635
7636	7636
7637	7637
7638	7638	HB4873 - 213 - LRB103 35886 RPS 65971 b
7639	7639
7640	7640
7641	7641	HB4873- 214 -LRB103 35886 RPS 65971 b HB4873 - 214 - LRB103 35886 RPS 65971 b
7642	7642	HB4873 - 214 - LRB103 35886 RPS 65971 b
7643	7643	1 January 1, 2024.
7644	7644	2 (c) A member or participant is entitled to a retirement
7645	7645	3 annuity upon written application if he or she has attained age
7646	7646	4 67 (age 65, with respect to service under Article 12 that is
7647	7647	5 subject to this Section, for a member or participant under
7648	7648	6 Article 12 who first becomes a member or participant under
7649	7649	7 Article 12 on or after January 1, 2022 or who makes the
7650	7650	8 election under item (i) of subsection (d-15) of this Section)
7651	7651	9 and has at least 10 years of service credit and is otherwise
7652	7652	10 eligible under the requirements of the applicable Article.
7653	7653	11 A member or participant who has attained age 62 (age 60,
7654	7654	12 with respect to service under Article 12 that is subject to
7655	7655	13 this Section, for a member or participant under Article 12 who
7656	7656	14 first becomes a member or participant under Article 12 on or
7657	7657	15 after January 1, 2022 or who makes the election under item (i)
7658	7658	16 of subsection (d-15) of this Section) and has at least 10 years
7659	7659	17 of service credit and is otherwise eligible under the
7660	7660	18 requirements of the applicable Article may elect to receive
7661	7661	19 the lower retirement annuity provided in subsection (d) of
7662	7662	20 this Section.
7663	7663	21 (c-5) A person who first becomes a member or a participant
7664	7664	22 subject to this Section on or after July 6, 2017 (the effective
7665	7665	23 date of Public Act 100-23), notwithstanding any other
7666	7666	24 provision of this Code to the contrary, is entitled to a
7667	7667	25 retirement annuity under Article 8 or Article 11 upon written
7668	7668	26 application if he or she has attained age 65 and has at least
7669	7669
7670	7670
7671	7671
7672	7672
7673	7673
7674	7674	HB4873 - 214 - LRB103 35886 RPS 65971 b
7675	7675
7676	7676
7677	7677	HB4873- 215 -LRB103 35886 RPS 65971 b HB4873 - 215 - LRB103 35886 RPS 65971 b
7678	7678	HB4873 - 215 - LRB103 35886 RPS 65971 b
7679	7679	1 10 years of service credit and is otherwise eligible under the
7680	7680	2 requirements of Article 8 or Article 11 of this Code,
7681	7681	3 whichever is applicable.
7682	7682	4 (c-10) Notwithstanding subsection (c), beginning July 1,
7683	7683	5 2025, a member or participant under Article 14, 16, or 17
7684	7684	6 subject to this Section is entitled to a retirement annuity
7685	7685	7 upon written application if he or she:
7686	7686	8 (1) has attained age 62, has at least 35 years of
7687	7687	9 service credit, and is otherwise eligible under the
7688	7688	10 requirements of the applicable Article;
7689	7689	11 (2) has attained age 64, has at least 20 years of
7690	7690	12 service credit, and is otherwise eligible under the
7691	7691	13 requirements of the applicable Article; or
7692	7692	14 (3) has attained age 67, has at least 10 years of
7693	7693	15 service credit, and is otherwise eligible under the
7694	7694	16 requirements of the applicable Article.
7695	7695	17 For the purposes of Section 1-103.1 of this Code, the
7696	7696	18 changes made to this Section by this amendatory Act of the
7697	7697	19 103rd General Assembly are applicable without regard to
7698	7698	20 whether the employee was in active service on or after the
7699	7699	21 effective date of this amendatory Act of the 103rd General
7700	7700	22 Assembly.
7701	7701	23 (d) The retirement annuity of a member or participant who
7702	7702	24 is retiring after attaining age 62 (age 60, with respect to
7703	7703	25 service under Article 12 that is subject to this Section, for a
7704	7704	26 member or participant under Article 12 who first becomes a
7705	7705
7706	7706
7707	7707
7708	7708
7709	7709
7710	7710	HB4873 - 215 - LRB103 35886 RPS 65971 b
7711	7711
7712	7712
7713	7713	HB4873- 216 -LRB103 35886 RPS 65971 b HB4873 - 216 - LRB103 35886 RPS 65971 b
7714	7714	HB4873 - 216 - LRB103 35886 RPS 65971 b
7715	7715	1 member or participant under Article 12 on or after January 1,
7716	7716	2 2022 or who makes the election under item (i) of subsection
7717	7717	3 (d-15) of this Section) with at least 10 years of service
7718	7718	4 credit shall be reduced by one-half of 1% for each full month
7719	7719	5 that the member's age is under age 67 (age 65, with respect to
7720	7720	6 service under Article 12 that is subject to this Section, for a
7721	7721	7 member or participant under Article 12 who first becomes a
7722	7722	8 member or participant under Article 12 on or after January 1,
7723	7723	9 2022 or who makes the election under item (i) of subsection
7724	7724	10 (d-15) of this Section).
7725	7725	11 (d-5) The retirement annuity payable under Article 8 or
7726	7726	12 Article 11 to an eligible person subject to subsection (c-5)
7727	7727	13 of this Section who is retiring at age 60 with at least 10
7728	7728	14 years of service credit shall be reduced by one-half of 1% for
7729	7729	15 each full month that the member's age is under age 65.
7730	7730	16 (d-10) Each person who first became a member or
7731	7731	17 participant under Article 8 or Article 11 of this Code on or
7732	7732	18 after January 1, 2011 and prior to July 6, 2017 (the effective
7733	7733	19 date of Public Act 100-23) shall make an irrevocable election
7734	7734	20 either:
7735	7735	21 (i) to be eligible for the reduced retirement age
7736	7736	22 provided in subsections (c-5) and (d-5) of this Section,
7737	7737	23 the eligibility for which is conditioned upon the member
7738	7738	24 or participant agreeing to the increases in employee
7739	7739	25 contributions for age and service annuities provided in
7740	7740	26 subsection (a-5) of Section 8-174 of this Code (for
7741	7741
7742	7742
7743	7743
7744	7744
7745	7745
7746	7746	HB4873 - 216 - LRB103 35886 RPS 65971 b
7747	7747
7748	7748
7749	7749	HB4873- 217 -LRB103 35886 RPS 65971 b HB4873 - 217 - LRB103 35886 RPS 65971 b
7750	7750	HB4873 - 217 - LRB103 35886 RPS 65971 b
7751	7751	1 service under Article 8) or subsection (a-5) of Section
7752	7752	2 11-170 of this Code (for service under Article 11); or
7753	7753	3 (ii) to not agree to item (i) of this subsection
7754	7754	4 (d-10), in which case the member or participant shall
7755	7755	5 continue to be subject to the retirement age provisions in
7756	7756	6 subsections (c) and (d) of this Section and the employee
7757	7757	7 contributions for age and service annuity as provided in
7758	7758	8 subsection (a) of Section 8-174 of this Code (for service
7759	7759	9 under Article 8) or subsection (a) of Section 11-170 of
7760	7760	10 this Code (for service under Article 11).
7761	7761	11 The election provided for in this subsection shall be made
7762	7762	12 between October 1, 2017 and November 15, 2017. A person
7763	7763	13 subject to this subsection who makes the required election
7764	7764	14 shall remain bound by that election. A person subject to this
7765	7765	15 subsection who fails for any reason to make the required
7766	7766	16 election within the time specified in this subsection shall be
7767	7767	17 deemed to have made the election under item (ii).
7768	7768	18 (d-15) Each person who first becomes a member or
7769	7769	19 participant under Article 12 on or after January 1, 2011 and
7770	7770	20 prior to January 1, 2022 shall make an irrevocable election
7771	7771	21 either:
7772	7772	22 (i) to be eligible for the reduced retirement age
7773	7773	23 specified in subsections (c) and (d) of this Section, the
7774	7774	24 eligibility for which is conditioned upon the member or
7775	7775	25 participant agreeing to the increase in employee
7776	7776	26 contributions for service annuities specified in
7777	7777
7778	7778
7779	7779
7780	7780
7781	7781
7782	7782	HB4873 - 217 - LRB103 35886 RPS 65971 b
7783	7783
7784	7784
7785	7785	HB4873- 218 -LRB103 35886 RPS 65971 b HB4873 - 218 - LRB103 35886 RPS 65971 b
7786	7786	HB4873 - 218 - LRB103 35886 RPS 65971 b
7787	7787	1 subsection (b) of Section 12-150; or
7788	7788	2 (ii) to not agree to item (i) of this subsection
7789	7789	3 (d-15), in which case the member or participant shall not
7790	7790	4 be eligible for the reduced retirement age specified in
7791	7791	5 subsections (c) and (d) of this Section and shall not be
7792	7792	6 subject to the increase in employee contributions for
7793	7793	7 service annuities specified in subsection (b) of Section
7794	7794	8 12-150.
7795	7795	9 The election provided for in this subsection shall be made
7796	7796	10 between January 1, 2022 and April 1, 2022. A person subject to
7797	7797	11 this subsection who makes the required election shall remain
7798	7798	12 bound by that election. A person subject to this subsection
7799	7799	13 who fails for any reason to make the required election within
7800	7800	14 the time specified in this subsection shall be deemed to have
7801	7801	15 made the election under item (ii).
7802	7802	16 (e) Any retirement annuity or supplemental annuity shall
7803	7803	17 be subject to annual increases on the January 1 occurring
7804	7804	18 either on or after the attainment of age 67 (age 65, with
7805	7805	19 respect to service under Article 12 that is subject to this
7806	7806	20 Section, for a member or participant under Article 12 who
7807	7807	21 first becomes a member or participant under Article 12 on or
7808	7808	22 after January 1, 2022 or who makes the election under item (i)
7809	7809	23 of subsection (d-15); and beginning on July 6, 2017 (the
7810	7810	24 effective date of Public Act 100-23), age 65 with respect to
7811	7811	25 service under Article 8 or Article 11 for eligible persons
7812	7812	26 who: (i) are subject to subsection (c-5) of this Section; or
7813	7813
7814	7814
7815	7815
7816	7816
7817	7817
7818	7818	HB4873 - 218 - LRB103 35886 RPS 65971 b
7819	7819
7820	7820
7821	7821	HB4873- 219 -LRB103 35886 RPS 65971 b HB4873 - 219 - LRB103 35886 RPS 65971 b
7822	7822	HB4873 - 219 - LRB103 35886 RPS 65971 b
7823	7823	1 (ii) made the election under item (i) of subsection (d-10) of
7824	7824	2 this Section) or the first anniversary of the annuity start
7825	7825	3 date, whichever is later. Each annual increase shall be
7826	7826	4 calculated at 3% or one-half the annual unadjusted percentage
7827	7827	5 increase (but not less than zero) in the consumer price
7828	7828	6 index-u for the 12 months ending with the September preceding
7829	7829	7 each November 1, whichever is less, of the originally granted
7830	7830	8 retirement annuity. If the annual unadjusted percentage change
7831	7831	9 in the consumer price index-u for the 12 months ending with the
7832	7832	10 September preceding each November 1 is zero or there is a
7833	7833	11 decrease, then the annuity shall not be increased.
7834	7834	12 For the purposes of Section 1-103.1 of this Code, the
7835	7835	13 changes made to this Section by Public Act 102-263 are
7836	7836	14 applicable without regard to whether the employee was in
7837	7837	15 active service on or after August 6, 2021 (the effective date
7838	7838	16 of Public Act 102-263).
7839	7839	17 For the purposes of Section 1-103.1 of this Code, the
7840	7840	18 changes made to this Section by Public Act 100-23 are
7841	7841	19 applicable without regard to whether the employee was in
7842	7842	20 active service on or after July 6, 2017 (the effective date of
7843	7843	21 Public Act 100-23).
7844	7844	22 (f) The initial survivor's or widow's annuity of an
7845	7845	23 otherwise eligible survivor or widow of a retired member or
7846	7846	24 participant who first became a member or participant on or
7847	7847	25 after January 1, 2011 shall be in the amount of 66 2/3% of the
7848	7848	26 retired member's or participant's retirement annuity at the
7849	7849
7850	7850
7851	7851
7852	7852
7853	7853
7854	7854	HB4873 - 219 - LRB103 35886 RPS 65971 b
7855	7855
7856	7856
7857	7857	HB4873- 220 -LRB103 35886 RPS 65971 b HB4873 - 220 - LRB103 35886 RPS 65971 b
7858	7858	HB4873 - 220 - LRB103 35886 RPS 65971 b
7859	7859	1 date of death. In the case of the death of a member or
7860	7860	2 participant who has not retired and who first became a member
7861	7861	3 or participant on or after January 1, 2011, eligibility for a
7862	7862	4 survivor's or widow's annuity shall be determined by the
7863	7863	5 applicable Article of this Code. The initial benefit shall be
7864	7864	6 66 2/3% of the earned annuity without a reduction due to age. A
7865	7865	7 child's annuity of an otherwise eligible child shall be in the
7866	7866	8 amount prescribed under each Article if applicable. Any
7867	7867	9 survivor's or widow's annuity shall be increased (1) on each
7868	7868	10 January 1 occurring on or after the commencement of the
7869	7869	11 annuity if the deceased member died while receiving a
7870	7870	12 retirement annuity or (2) in other cases, on each January 1
7871	7871	13 occurring after the first anniversary of the commencement of
7872	7872	14 the annuity. Each annual increase shall be calculated at 3% or
7873	7873	15 one-half the annual unadjusted percentage increase (but not
7874	7874	16 less than zero) in the consumer price index-u for the 12 months
7875	7875	17 ending with the September preceding each November 1, whichever
7876	7876	18 is less, of the originally granted survivor's annuity. If the
7877	7877	19 annual unadjusted percentage change in the consumer price
7878	7878	20 index-u for the 12 months ending with the September preceding
7879	7879	21 each November 1 is zero or there is a decrease, then the
7880	7880	22 annuity shall not be increased.
7881	7881	23 (g) The benefits in Section 14-110 apply if the person is a
7882	7882	24 fire fighter in the fire protection service of a department, a
7883	7883	25 security employee of the Department of Corrections or the
7884	7884	26 Department of Juvenile Justice, or a security employee of the
7885	7885
7886	7886
7887	7887
7888	7888
7889	7889
7890	7890	HB4873 - 220 - LRB103 35886 RPS 65971 b
7891	7891
7892	7892
7893	7893	HB4873- 221 -LRB103 35886 RPS 65971 b HB4873 - 221 - LRB103 35886 RPS 65971 b
7894	7894	HB4873 - 221 - LRB103 35886 RPS 65971 b
7895	7895	1 Department of Innovation and Technology, as those terms are
7896	7896	2 defined in subsection (b) and subsection (c) of Section
7897	7897	3 14-110. A person who meets the requirements of this Section is
7898	7898	4 entitled to an annuity calculated under the provisions of
7899	7899	5 Section 14-110, in lieu of the regular or minimum retirement
7900	7900	6 annuity, only if the person has withdrawn from service with
7901	7901	7 not less than 20 years of eligible creditable service and has
7902	7902	8 attained age 60, regardless of whether the attainment of age
7903	7903	9 60 occurs while the person is still in service.
7904	7904	10 (g-5) The benefits in Section 14-110 apply if the person
7905	7905	11 is a State policeman, investigator for the Secretary of State,
7906	7906	12 conservation police officer, investigator for the Department
7907	7907	13 of Revenue or the Illinois Gaming Board, investigator for the
7908	7908	14 Office of the Attorney General, Commerce Commission police
7909	7909	15 officer, or arson investigator, as those terms are defined in
7910	7910	16 subsection (b) and subsection (c) of Section 14-110. A person
7911	7911	17 who meets the requirements of this Section is entitled to an
7912	7912	18 annuity calculated under the provisions of Section 14-110, in
7913	7913	19 lieu of the regular or minimum retirement annuity, only if the
7914	7914	20 person has withdrawn from service with not less than 20 years
7915	7915	21 of eligible creditable service and has attained age 55,
7916	7916	22 regardless of whether the attainment of age 55 occurs while
7917	7917	23 the person is still in service.
7918	7918	24 (h) If a person who first becomes a member or a participant
7919	7919	25 of a retirement system or pension fund subject to this Section
7920	7920	26 on or after January 1, 2011 is receiving a retirement annuity
7921	7921
7922	7922
7923	7923
7924	7924
7925	7925
7926	7926	HB4873 - 221 - LRB103 35886 RPS 65971 b
7927	7927
7928	7928
7929	7929	HB4873- 222 -LRB103 35886 RPS 65971 b HB4873 - 222 - LRB103 35886 RPS 65971 b
7930	7930	HB4873 - 222 - LRB103 35886 RPS 65971 b
7931	7931	1 or retirement pension under that system or fund and becomes a
7932	7932	2 member or participant under any other system or fund created
7933	7933	3 by this Code and is employed on a full-time basis, except for
7934	7934	4 those members or participants exempted from the provisions of
7935	7935	5 this Section under subsection (a) of this Section, then the
7936	7936	6 person's retirement annuity or retirement pension under that
7937	7937	7 system or fund shall be suspended during that employment. Upon
7938	7938	8 termination of that employment, the person's retirement
7939	7939	9 annuity or retirement pension payments shall resume and be
7940	7940	10 recalculated if recalculation is provided for under the
7941	7941	11 applicable Article of this Code.
7942	7942	12 If a person who first becomes a member of a retirement
7943	7943	13 system or pension fund subject to this Section on or after
7944	7944	14 January 1, 2012 and is receiving a retirement annuity or
7945	7945	15 retirement pension under that system or fund and accepts on a
7946	7946	16 contractual basis a position to provide services to a
7947	7947	17 governmental entity from which he or she has retired, then
7948	7948	18 that person's annuity or retirement pension earned as an
7949	7949	19 active employee of the employer shall be suspended during that
7950	7950	20 contractual service. A person receiving an annuity or
7951	7951	21 retirement pension under this Code shall notify the pension
7952	7952	22 fund or retirement system from which he or she is receiving an
7953	7953	23 annuity or retirement pension, as well as his or her
7954	7954	24 contractual employer, of his or her retirement status before
7955	7955	25 accepting contractual employment. A person who fails to submit
7956	7956	26 such notification shall be guilty of a Class A misdemeanor and
7957	7957
7958	7958
7959	7959
7960	7960
7961	7961
7962	7962	HB4873 - 222 - LRB103 35886 RPS 65971 b
7963	7963
7964	7964
7965	7965	HB4873- 223 -LRB103 35886 RPS 65971 b HB4873 - 223 - LRB103 35886 RPS 65971 b
7966	7966	HB4873 - 223 - LRB103 35886 RPS 65971 b
7967	7967	1 required to pay a fine of $1,000. Upon termination of that
7968	7968	2 contractual employment, the person's retirement annuity or
7969	7969	3 retirement pension payments shall resume and, if appropriate,
7970	7970	4 be recalculated under the applicable provisions of this Code.
7971	7971	5 (i) (Blank).
7972	7972	6 (j) In the case of a conflict between the provisions of
7973	7973	7 this Section and any other provision of this Code, the
7974	7974	8 provisions of this Section shall control.
7975	7975	9 (Source: P.A. 101-610, eff. 1-1-20; 102-16, eff. 6-17-21;
7976	7976	10 102-210, eff. 1-1-22; 102-263, eff. 8-6-21; 102-719, eff.
7977	7977	11 5-6-22.)
7978	7978	12 (Text of Section from P.A. 102-813)
7979	7979	13 Sec. 1-160. Provisions applicable to new hires.
7980	7980	14 (a) The provisions of this Section apply to a person who,
7981	7981	15 on or after January 1, 2011, first becomes a member or a
7982	7982	16 participant under any reciprocal retirement system or pension
7983	7983	17 fund established under this Code, other than a retirement
7984	7984	18 system or pension fund established under Article 2, 3, 4, 5, 6,
7985	7985	19 7, 15, or 18 of this Code, notwithstanding any other provision
7986	7986	20 of this Code to the contrary, but do not apply to any
7987	7987	21 self-managed plan established under this Code or to any
7988	7988	22 participant of the retirement plan established under Section
7989	7989	23 22-101; except that this Section applies to a person who
7990	7990	24 elected to establish alternative credits by electing in
7991	7991	25 writing after January 1, 2011, but before August 8, 2011,
7992	7992
7993	7993
7994	7994
7995	7995
7996	7996
7997	7997	HB4873 - 223 - LRB103 35886 RPS 65971 b
7998	7998
7999	7999
8000	8000	HB4873- 224 -LRB103 35886 RPS 65971 b HB4873 - 224 - LRB103 35886 RPS 65971 b
8001	8001	HB4873 - 224 - LRB103 35886 RPS 65971 b
8002	8002	1 under Section 7-145.1 of this Code. Notwithstanding anything
8003	8003	2 to the contrary in this Section, for purposes of this Section,
8004	8004	3 a person who is a Tier 1 regular employee as defined in Section
8005	8005	4 7-109.4 of this Code or who participated in a retirement
8006	8006	5 system under Article 15 prior to January 1, 2011 shall be
8007	8007	6 deemed a person who first became a member or participant prior
8008	8008	7 to January 1, 2011 under any retirement system or pension fund
8009	8009	8 subject to this Section. The changes made to this Section by
8010	8010	9 Public Act 98-596 are a clarification of existing law and are
8011	8011	10 intended to be retroactive to January 1, 2011 (the effective
8012	8012	11 date of Public Act 96-889), notwithstanding the provisions of
8013	8013	12 Section 1-103.1 of this Code.
8014	8014	13 This Section does not apply to a person who first becomes a
8015	8015	14 noncovered employee under Article 14 on or after the
8016	8016	15 implementation date of the plan created under Section 1-161
8017	8017	16 for that Article, unless that person elects under subsection
8018	8018	17 (b) of Section 1-161 to instead receive the benefits provided
8019	8019	18 under this Section and the applicable provisions of that
8020	8020	19 Article.
8021	8021	20 This Section does not apply to a person who first becomes a
8022	8022	21 member or participant under Article 16 on or after the
8023	8023	22 implementation date of the plan created under Section 1-161
8024	8024	23 for that Article, unless that person elects under subsection
8025	8025	24 (b) of Section 1-161 to instead receive the benefits provided
8026	8026	25 under this Section and the applicable provisions of that
8027	8027	26 Article.
8028	8028
8029	8029
8030	8030
8031	8031
8032	8032
8033	8033	HB4873 - 224 - LRB103 35886 RPS 65971 b
8034	8034
8035	8035
8036	8036	HB4873- 225 -LRB103 35886 RPS 65971 b HB4873 - 225 - LRB103 35886 RPS 65971 b
8037	8037	HB4873 - 225 - LRB103 35886 RPS 65971 b
8038	8038	1 This Section does not apply to a person who elects under
8039	8039	2 subsection (c-5) of Section 1-161 to receive the benefits
8040	8040	3 under Section 1-161.
8041	8041	4 This Section does not apply to a person who first becomes a
8042	8042	5 member or participant of an affected pension fund on or after 6
8043	8043	6 months after the resolution or ordinance date, as defined in
8044	8044	7 Section 1-162, unless that person elects under subsection (c)
8045	8045	8 of Section 1-162 to receive the benefits provided under this
8046	8046	9 Section and the applicable provisions of the Article under
8047	8047	10 which he or she is a member or participant.
8048	8048	11 (b) "Final average salary" means, except as otherwise
8049	8049	12 provided in this subsection, the average monthly (or annual)
8050	8050	13 salary obtained by dividing the total salary or earnings
8051	8051	14 calculated under the Article applicable to the member or
8052	8052	15 participant during the 96 consecutive months (or 8 consecutive
8053	8053	16 years) of service within the last 120 months (or 10 years) of
8054	8054	17 service in which the total salary or earnings calculated under
8055	8055	18 the applicable Article was the highest by the number of months
8056	8056	19 (or years) of service in that period. For the purposes of a
8057	8057	20 person who first becomes a member or participant of any
8058	8058	21 retirement system or pension fund to which this Section
8059	8059	22 applies on or after January 1, 2011, in this Code, "final
8060	8060	23 average salary" shall be substituted for the following:
8061	8061	24 (1) (Blank).
8062	8062	25 (2) In Articles 8, 9, 10, 11, and 12, "highest average
8063	8063	26 annual salary for any 4 consecutive years within the last
8064	8064
8065	8065
8066	8066
8067	8067
8068	8068
8069	8069	HB4873 - 225 - LRB103 35886 RPS 65971 b
8070	8070
8071	8071
8072	8072	HB4873- 226 -LRB103 35886 RPS 65971 b HB4873 - 226 - LRB103 35886 RPS 65971 b
8073	8073	HB4873 - 226 - LRB103 35886 RPS 65971 b
8074	8074	1 10 years of service immediately preceding the date of
8075	8075	2 withdrawal".
8076	8076	3 (3) In Article 13, "average final salary".
8077	8077	4 (4) In Article 14, "final average compensation".
8078	8078	5 (5) In Article 17, "average salary".
8079	8079	6 (6) In Section 22-207, "wages or salary received by
8080	8080	7 him at the date of retirement or discharge".
8081	8081	8 A member of the Teachers' Retirement System of the State
8082	8082	9 of Illinois who retires on or after June 1, 2021 and for whom
8083	8083	10 the 2020-2021 school year is used in the calculation of the
8084	8084	11 member's final average salary shall use the higher of the
8085	8085	12 following for the purpose of determining the member's final
8086	8086	13 average salary:
8087	8087	14 (A) the amount otherwise calculated under the first
8088	8088	15 paragraph of this subsection; or
8089	8089	16 (B) an amount calculated by the Teachers' Retirement
8090	8090	17 System of the State of Illinois using the average of the
8091	8091	18 monthly (or annual) salary obtained by dividing the total
8092	8092	19 salary or earnings calculated under Article 16 applicable
8093	8093	20 to the member or participant during the 96 months (or 8
8094	8094	21 years) of service within the last 120 months (or 10 years)
8095	8095	22 of service in which the total salary or earnings
8096	8096	23 calculated under the Article was the highest by the number
8097	8097	24 of months (or years) of service in that period.
8098	8098	25 (b-5) Beginning on January 1, 2011, for all purposes under
8099	8099	26 this Code (including without limitation the calculation of
8100	8100
8101	8101
8102	8102
8103	8103
8104	8104
8105	8105	HB4873 - 226 - LRB103 35886 RPS 65971 b
8106	8106
8107	8107
8108	8108	HB4873- 227 -LRB103 35886 RPS 65971 b HB4873 - 227 - LRB103 35886 RPS 65971 b
8109	8109	HB4873 - 227 - LRB103 35886 RPS 65971 b
8110	8110	1 benefits and employee contributions), the annual earnings,
8111	8111	2 salary, or wages (based on the plan year) of a member or
8112	8112	3 participant to whom this Section applies shall not exceed
8113	8113	4 $106,800; however, that amount shall annually thereafter be
8114	8114	5 increased by the lesser of (i) 3% of that amount, including all
8115	8115	6 previous adjustments, or (ii) one-half the annual unadjusted
8116	8116	7 percentage increase (but not less than zero) in the consumer
8117	8117	8 price index-u for the 12 months ending with the September
8118	8118	9 preceding each November 1, including all previous adjustments.
8119	8119	10 For the purposes of this Section, "consumer price index-u"
8120	8120	11 means the index published by the Bureau of Labor Statistics of
8121	8121	12 the United States Department of Labor that measures the
8122	8122	13 average change in prices of goods and services purchased by
8123	8123	14 all urban consumers, United States city average, all items,
8124	8124	15 1982-84 = 100. The new amount resulting from each annual
8125	8125	16 adjustment shall be determined by the Public Pension Division
8126	8126	17 of the Department of Insurance and made available to the
8127	8127	18 boards of the retirement systems and pension funds by November
8128	8128	19 1 of each year.
8129	8129	20 (b-10) Beginning on January 1, 2024, for all purposes
8130	8130	21 under this Code (including, without limitation, the
8131	8131	22 calculation of benefits and employee contributions), the
8132	8132	23 annual earnings, salary, or wages (based on the plan year) of a
8133	8133	24 member or participant under Article 9 to whom this Section
8134	8134	25 applies shall include an annual earnings, salary, or wage cap
8135	8135	26 that tracks the Social Security wage base. Maximum annual
8136	8136
8137	8137
8138	8138
8139	8139
8140	8140
8141	8141	HB4873 - 227 - LRB103 35886 RPS 65971 b
8142	8142
8143	8143
8144	8144	HB4873- 228 -LRB103 35886 RPS 65971 b HB4873 - 228 - LRB103 35886 RPS 65971 b
8145	8145	HB4873 - 228 - LRB103 35886 RPS 65971 b
8146	8146	1 earnings, wages, or salary shall be the annual contribution
8147	8147	2 and benefit base established for the applicable year by the
8148	8148	3 Commissioner of the Social Security Administration under the
8149	8149	4 federal Social Security Act.
8150	8150	5 However, in no event shall the annual earnings, salary, or
8151	8151	6 wages for the purposes of this Article and Article 9 exceed any
8152	8152	7 limitation imposed on annual earnings, salary, or wages under
8153	8153	8 Section 1-117. Under no circumstances shall the maximum amount
8154	8154	9 of annual earnings, salary, or wages be greater than the
8155	8155	10 amount set forth in this subsection (b-10) as a result of
8156	8156	11 reciprocal service or any provisions regarding reciprocal
8157	8157	12 services, nor shall the Fund under Article 9 be required to pay
8158	8158	13 any refund as a result of the application of this maximum
8159	8159	14 annual earnings, salary, and wage cap.
8160	8160	15 Nothing in this subsection (b-10) shall cause or otherwise
8161	8161	16 result in any retroactive adjustment of any employee
8162	8162	17 contributions. Nothing in this subsection (b-10) shall cause
8163	8163	18 or otherwise result in any retroactive adjustment of
8164	8164	19 disability or other payments made between January 1, 2011 and
8165	8165	20 January 1, 2024.
8166	8166	21 (c) A member or participant is entitled to a retirement
8167	8167	22 annuity upon written application if he or she has attained age
8168	8168	23 67 (age 65, with respect to service under Article 12 that is
8169	8169	24 subject to this Section, for a member or participant under
8170	8170	25 Article 12 who first becomes a member or participant under
8171	8171	26 Article 12 on or after January 1, 2022 or who makes the
8172	8172
8173	8173
8174	8174
8175	8175
8176	8176
8177	8177	HB4873 - 228 - LRB103 35886 RPS 65971 b
8178	8178
8179	8179
8180	8180	HB4873- 229 -LRB103 35886 RPS 65971 b HB4873 - 229 - LRB103 35886 RPS 65971 b
8181	8181	HB4873 - 229 - LRB103 35886 RPS 65971 b
8182	8182	1 election under item (i) of subsection (d-15) of this Section)
8183	8183	2 and has at least 10 years of service credit and is otherwise
8184	8184	3 eligible under the requirements of the applicable Article.
8185	8185	4 A member or participant who has attained age 62 (age 60,
8186	8186	5 with respect to service under Article 12 that is subject to
8187	8187	6 this Section, for a member or participant under Article 12 who
8188	8188	7 first becomes a member or participant under Article 12 on or
8189	8189	8 after January 1, 2022 or who makes the election under item (i)
8190	8190	9 of subsection (d-15) of this Section) and has at least 10 years
8191	8191	10 of service credit and is otherwise eligible under the
8192	8192	11 requirements of the applicable Article may elect to receive
8193	8193	12 the lower retirement annuity provided in subsection (d) of
8194	8194	13 this Section.
8195	8195	14 (c-5) A person who first becomes a member or a participant
8196	8196	15 subject to this Section on or after July 6, 2017 (the effective
8197	8197	16 date of Public Act 100-23), notwithstanding any other
8198	8198	17 provision of this Code to the contrary, is entitled to a
8199	8199	18 retirement annuity under Article 8 or Article 11 upon written
8200	8200	19 application if he or she has attained age 65 and has at least
8201	8201	20 10 years of service credit and is otherwise eligible under the
8202	8202	21 requirements of Article 8 or Article 11 of this Code,
8203	8203	22 whichever is applicable.
8204	8204	23 (c-10) Notwithstanding subsection (c), beginning July 1,
8205	8205	24 2025, a member or participant under Article 14, 16, or 17
8206	8206	25 subject to this Section is entitled to a retirement annuity
8207	8207	26 upon written application if he or she:
8208	8208
8209	8209
8210	8210
8211	8211
8212	8212
8213	8213	HB4873 - 229 - LRB103 35886 RPS 65971 b
8214	8214
8215	8215
8216	8216	HB4873- 230 -LRB103 35886 RPS 65971 b HB4873 - 230 - LRB103 35886 RPS 65971 b
8217	8217	HB4873 - 230 - LRB103 35886 RPS 65971 b
8218	8218	1 (1) has attained age 62, has at least 35 years of
8219	8219	2 service credit, and is otherwise eligible under the
8220	8220	3 requirements of the applicable Article;
8221	8221	4 (2) has attained age 64, has at least 20 years of
8222	8222	5 service credit, and is otherwise eligible under the
8223	8223	6 requirements of the applicable Article; or
8224	8224	7 (3) has attained age 67, has at least 10 years of
8225	8225	8 service credit, and is otherwise eligible under the
8226	8226	9 requirements of the applicable Article.
8227	8227	10 For the purposes of Section 1-103.1 of this Code, the
8228	8228	11 changes made to this Section by this amendatory Act of the
8229	8229	12 103rd General Assembly are applicable without regard to
8230	8230	13 whether the employee was in active service on or after the
8231	8231	14 effective date of this amendatory Act of the 103rd General
8232	8232	15 Assembly.
8233	8233	16 (d) The retirement annuity of a member or participant who
8234	8234	17 is retiring after attaining age 62 (age 60, with respect to
8235	8235	18 service under Article 12 that is subject to this Section, for a
8236	8236	19 member or participant under Article 12 who first becomes a
8237	8237	20 member or participant under Article 12 on or after January 1,
8238	8238	21 2022 or who makes the election under item (i) of subsection
8239	8239	22 (d-15) of this Section) with at least 10 years of service
8240	8240	23 credit shall be reduced by one-half of 1% for each full month
8241	8241	24 that the member's age is under age 67 (age 65, with respect to
8242	8242	25 service under Article 12 that is subject to this Section, for a
8243	8243	26 member or participant under Article 12 who first becomes a
8244	8244
8245	8245
8246	8246
8247	8247
8248	8248
8249	8249	HB4873 - 230 - LRB103 35886 RPS 65971 b
8250	8250
8251	8251
8252	8252	HB4873- 231 -LRB103 35886 RPS 65971 b HB4873 - 231 - LRB103 35886 RPS 65971 b
8253	8253	HB4873 - 231 - LRB103 35886 RPS 65971 b
8254	8254	1 member or participant under Article 12 on or after January 1,
8255	8255	2 2022 or who makes the election under item (i) of subsection
8256	8256	3 (d-15) of this Section).
8257	8257	4 (d-5) The retirement annuity payable under Article 8 or
8258	8258	5 Article 11 to an eligible person subject to subsection (c-5)
8259	8259	6 of this Section who is retiring at age 60 with at least 10
8260	8260	7 years of service credit shall be reduced by one-half of 1% for
8261	8261	8 each full month that the member's age is under age 65.
8262	8262	9 (d-10) Each person who first became a member or
8263	8263	10 participant under Article 8 or Article 11 of this Code on or
8264	8264	11 after January 1, 2011 and prior to July 6, 2017 (the effective
8265	8265	12 date of Public Act 100-23) shall make an irrevocable election
8266	8266	13 either:
8267	8267	14 (i) to be eligible for the reduced retirement age
8268	8268	15 provided in subsections (c-5) and (d-5) of this Section,
8269	8269	16 the eligibility for which is conditioned upon the member
8270	8270	17 or participant agreeing to the increases in employee
8271	8271	18 contributions for age and service annuities provided in
8272	8272	19 subsection (a-5) of Section 8-174 of this Code (for
8273	8273	20 service under Article 8) or subsection (a-5) of Section
8274	8274	21 11-170 of this Code (for service under Article 11); or
8275	8275	22 (ii) to not agree to item (i) of this subsection
8276	8276	23 (d-10), in which case the member or participant shall
8277	8277	24 continue to be subject to the retirement age provisions in
8278	8278	25 subsections (c) and (d) of this Section and the employee
8279	8279	26 contributions for age and service annuity as provided in
8280	8280
8281	8281
8282	8282
8283	8283
8284	8284
8285	8285	HB4873 - 231 - LRB103 35886 RPS 65971 b
8286	8286
8287	8287
8288	8288	HB4873- 232 -LRB103 35886 RPS 65971 b HB4873 - 232 - LRB103 35886 RPS 65971 b
8289	8289	HB4873 - 232 - LRB103 35886 RPS 65971 b
8290	8290	1 subsection (a) of Section 8-174 of this Code (for service
8291	8291	2 under Article 8) or subsection (a) of Section 11-170 of
8292	8292	3 this Code (for service under Article 11).
8293	8293	4 The election provided for in this subsection shall be made
8294	8294	5 between October 1, 2017 and November 15, 2017. A person
8295	8295	6 subject to this subsection who makes the required election
8296	8296	7 shall remain bound by that election. A person subject to this
8297	8297	8 subsection who fails for any reason to make the required
8298	8298	9 election within the time specified in this subsection shall be
8299	8299	10 deemed to have made the election under item (ii).
8300	8300	11 (d-15) Each person who first becomes a member or
8301	8301	12 participant under Article 12 on or after January 1, 2011 and
8302	8302	13 prior to January 1, 2022 shall make an irrevocable election
8303	8303	14 either:
8304	8304	15 (i) to be eligible for the reduced retirement age
8305	8305	16 specified in subsections (c) and (d) of this Section, the
8306	8306	17 eligibility for which is conditioned upon the member or
8307	8307	18 participant agreeing to the increase in employee
8308	8308	19 contributions for service annuities specified in
8309	8309	20 subsection (b) of Section 12-150; or
8310	8310	21 (ii) to not agree to item (i) of this subsection
8311	8311	22 (d-15), in which case the member or participant shall not
8312	8312	23 be eligible for the reduced retirement age specified in
8313	8313	24 subsections (c) and (d) of this Section and shall not be
8314	8314	25 subject to the increase in employee contributions for
8315	8315	26 service annuities specified in subsection (b) of Section
8316	8316
8317	8317
8318	8318
8319	8319
8320	8320
8321	8321	HB4873 - 232 - LRB103 35886 RPS 65971 b
8322	8322
8323	8323
8324	8324	HB4873- 233 -LRB103 35886 RPS 65971 b HB4873 - 233 - LRB103 35886 RPS 65971 b
8325	8325	HB4873 - 233 - LRB103 35886 RPS 65971 b
8326	8326	1 12-150.
8327	8327	2 The election provided for in this subsection shall be made
8328	8328	3 between January 1, 2022 and April 1, 2022. A person subject to
8329	8329	4 this subsection who makes the required election shall remain
8330	8330	5 bound by that election. A person subject to this subsection
8331	8331	6 who fails for any reason to make the required election within
8332	8332	7 the time specified in this subsection shall be deemed to have
8333	8333	8 made the election under item (ii).
8334	8334	9 (e) Any retirement annuity or supplemental annuity shall
8335	8335	10 be subject to annual increases on the January 1 occurring
8336	8336	11 either on or after the attainment of age 67 (age 65, with
8337	8337	12 respect to service under Article 12 that is subject to this
8338	8338	13 Section, for a member or participant under Article 12 who
8339	8339	14 first becomes a member or participant under Article 12 on or
8340	8340	15 after January 1, 2022 or who makes the election under item (i)
8341	8341	16 of subsection (d-15); and beginning on July 6, 2017 (the
8342	8342	17 effective date of Public Act 100-23), age 65 with respect to
8343	8343	18 service under Article 8 or Article 11 for eligible persons
8344	8344	19 who: (i) are subject to subsection (c-5) of this Section; or
8345	8345	20 (ii) made the election under item (i) of subsection (d-10) of
8346	8346	21 this Section) or the first anniversary of the annuity start
8347	8347	22 date, whichever is later. Each annual increase shall be
8348	8348	23 calculated at 3% or one-half the annual unadjusted percentage
8349	8349	24 increase (but not less than zero) in the consumer price
8350	8350	25 index-u for the 12 months ending with the September preceding
8351	8351	26 each November 1, whichever is less, of the originally granted
8352	8352
8353	8353
8354	8354
8355	8355
8356	8356
8357	8357	HB4873 - 233 - LRB103 35886 RPS 65971 b
8358	8358
8359	8359
8360	8360	HB4873- 234 -LRB103 35886 RPS 65971 b HB4873 - 234 - LRB103 35886 RPS 65971 b
8361	8361	HB4873 - 234 - LRB103 35886 RPS 65971 b
8362	8362	1 retirement annuity. If the annual unadjusted percentage change
8363	8363	2 in the consumer price index-u for the 12 months ending with the
8364	8364	3 September preceding each November 1 is zero or there is a
8365	8365	4 decrease, then the annuity shall not be increased.
8366	8366	5 For the purposes of Section 1-103.1 of this Code, the
8367	8367	6 changes made to this Section by Public Act 102-263 are
8368	8368	7 applicable without regard to whether the employee was in
8369	8369	8 active service on or after August 6, 2021 (the effective date
8370	8370	9 of Public Act 102-263).
8371	8371	10 For the purposes of Section 1-103.1 of this Code, the
8372	8372	11 changes made to this Section by Public Act 100-23 are
8373	8373	12 applicable without regard to whether the employee was in
8374	8374	13 active service on or after July 6, 2017 (the effective date of
8375	8375	14 Public Act 100-23).
8376	8376	15 (f) The initial survivor's or widow's annuity of an
8377	8377	16 otherwise eligible survivor or widow of a retired member or
8378	8378	17 participant who first became a member or participant on or
8379	8379	18 after January 1, 2011 shall be in the amount of 66 2/3% of the
8380	8380	19 retired member's or participant's retirement annuity at the
8381	8381	20 date of death. In the case of the death of a member or
8382	8382	21 participant who has not retired and who first became a member
8383	8383	22 or participant on or after January 1, 2011, eligibility for a
8384	8384	23 survivor's or widow's annuity shall be determined by the
8385	8385	24 applicable Article of this Code. The initial benefit shall be
8386	8386	25 66 2/3% of the earned annuity without a reduction due to age. A
8387	8387	26 child's annuity of an otherwise eligible child shall be in the
8388	8388
8389	8389
8390	8390
8391	8391
8392	8392
8393	8393	HB4873 - 234 - LRB103 35886 RPS 65971 b
8394	8394
8395	8395
8396	8396	HB4873- 235 -LRB103 35886 RPS 65971 b HB4873 - 235 - LRB103 35886 RPS 65971 b
8397	8397	HB4873 - 235 - LRB103 35886 RPS 65971 b
8398	8398	1 amount prescribed under each Article if applicable. Any
8399	8399	2 survivor's or widow's annuity shall be increased (1) on each
8400	8400	3 January 1 occurring on or after the commencement of the
8401	8401	4 annuity if the deceased member died while receiving a
8402	8402	5 retirement annuity or (2) in other cases, on each January 1
8403	8403	6 occurring after the first anniversary of the commencement of
8404	8404	7 the annuity. Each annual increase shall be calculated at 3% or
8405	8405	8 one-half the annual unadjusted percentage increase (but not
8406	8406	9 less than zero) in the consumer price index-u for the 12 months
8407	8407	10 ending with the September preceding each November 1, whichever
8408	8408	11 is less, of the originally granted survivor's annuity. If the
8409	8409	12 annual unadjusted percentage change in the consumer price
8410	8410	13 index-u for the 12 months ending with the September preceding
8411	8411	14 each November 1 is zero or there is a decrease, then the
8412	8412	15 annuity shall not be increased.
8413	8413	16 (g) The benefits in Section 14-110 apply only if the
8414	8414	17 person is a State policeman, a fire fighter in the fire
8415	8415	18 protection service of a department, a conservation police
8416	8416	19 officer, an investigator for the Secretary of State, an arson
8417	8417	20 investigator, a Commerce Commission police officer,
8418	8418	21 investigator for the Department of Revenue or the Illinois
8419	8419	22 Gaming Board, a security employee of the Department of
8420	8420	23 Corrections or the Department of Juvenile Justice, or a
8421	8421	24 security employee of the Department of Innovation and
8422	8422	25 Technology, as those terms are defined in subsection (b) and
8423	8423	26 subsection (c) of Section 14-110. A person who meets the
8424	8424
8425	8425
8426	8426
8427	8427
8428	8428
8429	8429	HB4873 - 235 - LRB103 35886 RPS 65971 b
8430	8430
8431	8431
8432	8432	HB4873- 236 -LRB103 35886 RPS 65971 b HB4873 - 236 - LRB103 35886 RPS 65971 b
8433	8433	HB4873 - 236 - LRB103 35886 RPS 65971 b
8434	8434	1 requirements of this Section is entitled to an annuity
8435	8435	2 calculated under the provisions of Section 14-110, in lieu of
8436	8436	3 the regular or minimum retirement annuity, only if the person
8437	8437	4 has withdrawn from service with not less than 20 years of
8438	8438	5 eligible creditable service and has attained age 60,
8439	8439	6 regardless of whether the attainment of age 60 occurs while
8440	8440	7 the person is still in service.
8441	8441	8 (h) If a person who first becomes a member or a participant
8442	8442	9 of a retirement system or pension fund subject to this Section
8443	8443	10 on or after January 1, 2011 is receiving a retirement annuity
8444	8444	11 or retirement pension under that system or fund and becomes a
8445	8445	12 member or participant under any other system or fund created
8446	8446	13 by this Code and is employed on a full-time basis, except for
8447	8447	14 those members or participants exempted from the provisions of
8448	8448	15 this Section under subsection (a) of this Section, then the
8449	8449	16 person's retirement annuity or retirement pension under that
8450	8450	17 system or fund shall be suspended during that employment. Upon
8451	8451	18 termination of that employment, the person's retirement
8452	8452	19 annuity or retirement pension payments shall resume and be
8453	8453	20 recalculated if recalculation is provided for under the
8454	8454	21 applicable Article of this Code.
8455	8455	22 If a person who first becomes a member of a retirement
8456	8456	23 system or pension fund subject to this Section on or after
8457	8457	24 January 1, 2012 and is receiving a retirement annuity or
8458	8458	25 retirement pension under that system or fund and accepts on a
8459	8459	26 contractual basis a position to provide services to a
8460	8460
8461	8461
8462	8462
8463	8463
8464	8464
8465	8465	HB4873 - 236 - LRB103 35886 RPS 65971 b
8466	8466
8467	8467
8468	8468	HB4873- 237 -LRB103 35886 RPS 65971 b HB4873 - 237 - LRB103 35886 RPS 65971 b
8469	8469	HB4873 - 237 - LRB103 35886 RPS 65971 b
8470	8470	1 governmental entity from which he or she has retired, then
8471	8471	2 that person's annuity or retirement pension earned as an
8472	8472	3 active employee of the employer shall be suspended during that
8473	8473	4 contractual service. A person receiving an annuity or
8474	8474	5 retirement pension under this Code shall notify the pension
8475	8475	6 fund or retirement system from which he or she is receiving an
8476	8476	7 annuity or retirement pension, as well as his or her
8477	8477	8 contractual employer, of his or her retirement status before
8478	8478	9 accepting contractual employment. A person who fails to submit
8479	8479	10 such notification shall be guilty of a Class A misdemeanor and
8480	8480	11 required to pay a fine of $1,000. Upon termination of that
8481	8481	12 contractual employment, the person's retirement annuity or
8482	8482	13 retirement pension payments shall resume and, if appropriate,
8483	8483	14 be recalculated under the applicable provisions of this Code.
8484	8484	15 (i) (Blank).
8485	8485	16 (j) In the case of a conflict between the provisions of
8486	8486	17 this Section and any other provision of this Code, the
8487	8487	18 provisions of this Section shall control.
8488	8488	19 (Source: P.A. 101-610, eff. 1-1-20; 102-16, eff. 6-17-21;
8489	8489	20 102-210, eff. 1-1-22; 102-263, eff. 8-6-21; 102-813, eff.
8490	8490	21 5-13-22.)
8491	8491	22 (Text of Section from P.A. 102-956)
8492	8492	23 Sec. 1-160. Provisions applicable to new hires.
8493	8493	24 (a) The provisions of this Section apply to a person who,
8494	8494	25 on or after January 1, 2011, first becomes a member or a
8495	8495
8496	8496
8497	8497
8498	8498
8499	8499
8500	8500	HB4873 - 237 - LRB103 35886 RPS 65971 b
8501	8501
8502	8502
8503	8503	HB4873- 238 -LRB103 35886 RPS 65971 b HB4873 - 238 - LRB103 35886 RPS 65971 b
8504	8504	HB4873 - 238 - LRB103 35886 RPS 65971 b
8505	8505	1 participant under any reciprocal retirement system or pension
8506	8506	2 fund established under this Code, other than a retirement
8507	8507	3 system or pension fund established under Article 2, 3, 4, 5, 6,
8508	8508	4 7, 15, or 18 of this Code, notwithstanding any other provision
8509	8509	5 of this Code to the contrary, but do not apply to any
8510	8510	6 self-managed plan established under this Code or to any
8511	8511	7 participant of the retirement plan established under Section
8512	8512	8 22-101; except that this Section applies to a person who
8513	8513	9 elected to establish alternative credits by electing in
8514	8514	10 writing after January 1, 2011, but before August 8, 2011,
8515	8515	11 under Section 7-145.1 of this Code. Notwithstanding anything
8516	8516	12 to the contrary in this Section, for purposes of this Section,
8517	8517	13 a person who is a Tier 1 regular employee as defined in Section
8518	8518	14 7-109.4 of this Code or who participated in a retirement
8519	8519	15 system under Article 15 prior to January 1, 2011 shall be
8520	8520	16 deemed a person who first became a member or participant prior
8521	8521	17 to January 1, 2011 under any retirement system or pension fund
8522	8522	18 subject to this Section. The changes made to this Section by
8523	8523	19 Public Act 98-596 are a clarification of existing law and are
8524	8524	20 intended to be retroactive to January 1, 2011 (the effective
8525	8525	21 date of Public Act 96-889), notwithstanding the provisions of
8526	8526	22 Section 1-103.1 of this Code.
8527	8527	23 This Section does not apply to a person who first becomes a
8528	8528	24 noncovered employee under Article 14 on or after the
8529	8529	25 implementation date of the plan created under Section 1-161
8530	8530	26 for that Article, unless that person elects under subsection
8531	8531
8532	8532
8533	8533
8534	8534
8535	8535
8536	8536	HB4873 - 238 - LRB103 35886 RPS 65971 b
8537	8537
8538	8538
8539	8539	HB4873- 239 -LRB103 35886 RPS 65971 b HB4873 - 239 - LRB103 35886 RPS 65971 b
8540	8540	HB4873 - 239 - LRB103 35886 RPS 65971 b
8541	8541	1 (b) of Section 1-161 to instead receive the benefits provided
8542	8542	2 under this Section and the applicable provisions of that
8543	8543	3 Article.
8544	8544	4 This Section does not apply to a person who first becomes a
8545	8545	5 member or participant under Article 16 on or after the
8546	8546	6 implementation date of the plan created under Section 1-161
8547	8547	7 for that Article, unless that person elects under subsection
8548	8548	8 (b) of Section 1-161 to instead receive the benefits provided
8549	8549	9 under this Section and the applicable provisions of that
8550	8550	10 Article.
8551	8551	11 This Section does not apply to a person who elects under
8552	8552	12 subsection (c-5) of Section 1-161 to receive the benefits
8553	8553	13 under Section 1-161.
8554	8554	14 This Section does not apply to a person who first becomes a
8555	8555	15 member or participant of an affected pension fund on or after 6
8556	8556	16 months after the resolution or ordinance date, as defined in
8557	8557	17 Section 1-162, unless that person elects under subsection (c)
8558	8558	18 of Section 1-162 to receive the benefits provided under this
8559	8559	19 Section and the applicable provisions of the Article under
8560	8560	20 which he or she is a member or participant.
8561	8561	21 (b) "Final average salary" means, except as otherwise
8562	8562	22 provided in this subsection, the average monthly (or annual)
8563	8563	23 salary obtained by dividing the total salary or earnings
8564	8564	24 calculated under the Article applicable to the member or
8565	8565	25 participant during the 96 consecutive months (or 8 consecutive
8566	8566	26 years) of service within the last 120 months (or 10 years) of
8567	8567
8568	8568
8569	8569
8570	8570
8571	8571
8572	8572	HB4873 - 239 - LRB103 35886 RPS 65971 b
8573	8573
8574	8574
8575	8575	HB4873- 240 -LRB103 35886 RPS 65971 b HB4873 - 240 - LRB103 35886 RPS 65971 b
8576	8576	HB4873 - 240 - LRB103 35886 RPS 65971 b
8577	8577	1 service in which the total salary or earnings calculated under
8578	8578	2 the applicable Article was the highest by the number of months
8579	8579	3 (or years) of service in that period. For the purposes of a
8580	8580	4 person who first becomes a member or participant of any
8581	8581	5 retirement system or pension fund to which this Section
8582	8582	6 applies on or after January 1, 2011, in this Code, "final
8583	8583	7 average salary" shall be substituted for the following:
8584	8584	8 (1) (Blank).
8585	8585	9 (2) In Articles 8, 9, 10, 11, and 12, "highest average
8586	8586	10 annual salary for any 4 consecutive years within the last
8587	8587	11 10 years of service immediately preceding the date of
8588	8588	12 withdrawal".
8589	8589	13 (3) In Article 13, "average final salary".
8590	8590	14 (4) In Article 14, "final average compensation".
8591	8591	15 (5) In Article 17, "average salary".
8592	8592	16 (6) In Section 22-207, "wages or salary received by
8593	8593	17 him at the date of retirement or discharge".
8594	8594	18 A member of the Teachers' Retirement System of the State
8595	8595	19 of Illinois who retires on or after June 1, 2021 and for whom
8596	8596	20 the 2020-2021 school year is used in the calculation of the
8597	8597	21 member's final average salary shall use the higher of the
8598	8598	22 following for the purpose of determining the member's final
8599	8599	23 average salary:
8600	8600	24 (A) the amount otherwise calculated under the first
8601	8601	25 paragraph of this subsection; or
8602	8602	26 (B) an amount calculated by the Teachers' Retirement
8603	8603
8604	8604
8605	8605
8606	8606
8607	8607
8608	8608	HB4873 - 240 - LRB103 35886 RPS 65971 b
8609	8609
8610	8610
8611	8611	HB4873- 241 -LRB103 35886 RPS 65971 b HB4873 - 241 - LRB103 35886 RPS 65971 b
8612	8612	HB4873 - 241 - LRB103 35886 RPS 65971 b
8613	8613	1 System of the State of Illinois using the average of the
8614	8614	2 monthly (or annual) salary obtained by dividing the total
8615	8615	3 salary or earnings calculated under Article 16 applicable
8616	8616	4 to the member or participant during the 96 months (or 8
8617	8617	5 years) of service within the last 120 months (or 10 years)
8618	8618	6 of service in which the total salary or earnings
8619	8619	7 calculated under the Article was the highest by the number
8620	8620	8 of months (or years) of service in that period.
8621	8621	9 (b-5) Beginning on January 1, 2011, for all purposes under
8622	8622	10 this Code (including without limitation the calculation of
8623	8623	11 benefits and employee contributions), the annual earnings,
8624	8624	12 salary, or wages (based on the plan year) of a member or
8625	8625	13 participant to whom this Section applies shall not exceed
8626	8626	14 $106,800; however, that amount shall annually thereafter be
8627	8627	15 increased by the lesser of (i) 3% of that amount, including all
8628	8628	16 previous adjustments, or (ii) one-half the annual unadjusted
8629	8629	17 percentage increase (but not less than zero) in the consumer
8630	8630	18 price index-u for the 12 months ending with the September
8631	8631	19 preceding each November 1, including all previous adjustments.
8632	8632	20 For the purposes of this Section, "consumer price index-u"
8633	8633	21 means the index published by the Bureau of Labor Statistics of
8634	8634	22 the United States Department of Labor that measures the
8635	8635	23 average change in prices of goods and services purchased by
8636	8636	24 all urban consumers, United States city average, all items,
8637	8637	25 1982-84 = 100. The new amount resulting from each annual
8638	8638	26 adjustment shall be determined by the Public Pension Division
8639	8639
8640	8640
8641	8641
8642	8642
8643	8643
8644	8644	HB4873 - 241 - LRB103 35886 RPS 65971 b
8645	8645
8646	8646
8647	8647	HB4873- 242 -LRB103 35886 RPS 65971 b HB4873 - 242 - LRB103 35886 RPS 65971 b
8648	8648	HB4873 - 242 - LRB103 35886 RPS 65971 b
8649	8649	1 of the Department of Insurance and made available to the
8650	8650	2 boards of the retirement systems and pension funds by November
8651	8651	3 1 of each year.
8652	8652	4 (b-10) Beginning on January 1, 2024, for all purposes
8653	8653	5 under this Code (including, without limitation, the
8654	8654	6 calculation of benefits and employee contributions), the
8655	8655	7 annual earnings, salary, or wages (based on the plan year) of a
8656	8656	8 member or participant under Article 9 to whom this Section
8657	8657	9 applies shall include an annual earnings, salary, or wage cap
8658	8658	10 that tracks the Social Security wage base. Maximum annual
8659	8659	11 earnings, wages, or salary shall be the annual contribution
8660	8660	12 and benefit base established for the applicable year by the
8661	8661	13 Commissioner of the Social Security Administration under the
8662	8662	14 federal Social Security Act.
8663	8663	15 However, in no event shall the annual earnings, salary, or
8664	8664	16 wages for the purposes of this Article and Article 9 exceed any
8665	8665	17 limitation imposed on annual earnings, salary, or wages under
8666	8666	18 Section 1-117. Under no circumstances shall the maximum amount
8667	8667	19 of annual earnings, salary, or wages be greater than the
8668	8668	20 amount set forth in this subsection (b-10) as a result of
8669	8669	21 reciprocal service or any provisions regarding reciprocal
8670	8670	22 services, nor shall the Fund under Article 9 be required to pay
8671	8671	23 any refund as a result of the application of this maximum
8672	8672	24 annual earnings, salary, and wage cap.
8673	8673	25 Nothing in this subsection (b-10) shall cause or otherwise
8674	8674	26 result in any retroactive adjustment of any employee
8675	8675
8676	8676
8677	8677
8678	8678
8679	8679
8680	8680	HB4873 - 242 - LRB103 35886 RPS 65971 b
8681	8681
8682	8682
8683	8683	HB4873- 243 -LRB103 35886 RPS 65971 b HB4873 - 243 - LRB103 35886 RPS 65971 b
8684	8684	HB4873 - 243 - LRB103 35886 RPS 65971 b
8685	8685	1 contributions. Nothing in this subsection (b-10) shall cause
8686	8686	2 or otherwise result in any retroactive adjustment of
8687	8687	3 disability or other payments made between January 1, 2011 and
8688	8688	4 January 1, 2024.
8689	8689	5 (c) A member or participant is entitled to a retirement
8690	8690	6 annuity upon written application if he or she has attained age
8691	8691	7 67 (age 65, with respect to service under Article 12 that is
8692	8692	8 subject to this Section, for a member or participant under
8693	8693	9 Article 12 who first becomes a member or participant under
8694	8694	10 Article 12 on or after January 1, 2022 or who makes the
8695	8695	11 election under item (i) of subsection (d-15) of this Section)
8696	8696	12 and has at least 10 years of service credit and is otherwise
8697	8697	13 eligible under the requirements of the applicable Article.
8698	8698	14 A member or participant who has attained age 62 (age 60,
8699	8699	15 with respect to service under Article 12 that is subject to
8700	8700	16 this Section, for a member or participant under Article 12 who
8701	8701	17 first becomes a member or participant under Article 12 on or
8702	8702	18 after January 1, 2022 or who makes the election under item (i)
8703	8703	19 of subsection (d-15) of this Section) and has at least 10 years
8704	8704	20 of service credit and is otherwise eligible under the
8705	8705	21 requirements of the applicable Article may elect to receive
8706	8706	22 the lower retirement annuity provided in subsection (d) of
8707	8707	23 this Section.
8708	8708	24 (c-5) A person who first becomes a member or a participant
8709	8709	25 subject to this Section on or after July 6, 2017 (the effective
8710	8710	26 date of Public Act 100-23), notwithstanding any other
8711	8711
8712	8712
8713	8713
8714	8714
8715	8715
8716	8716	HB4873 - 243 - LRB103 35886 RPS 65971 b
8717	8717
8718	8718
8719	8719	HB4873- 244 -LRB103 35886 RPS 65971 b HB4873 - 244 - LRB103 35886 RPS 65971 b
8720	8720	HB4873 - 244 - LRB103 35886 RPS 65971 b
8721	8721	1 provision of this Code to the contrary, is entitled to a
8722	8722	2 retirement annuity under Article 8 or Article 11 upon written
8723	8723	3 application if he or she has attained age 65 and has at least
8724	8724	4 10 years of service credit and is otherwise eligible under the
8725	8725	5 requirements of Article 8 or Article 11 of this Code,
8726	8726	6 whichever is applicable.
8727	8727	7 (c-10) Notwithstanding subsection (c), beginning July 1,
8728	8728	8 2025, a member or participant under Article 14, 16, or 17
8729	8729	9 subject to this Section is entitled to a retirement annuity
8730	8730	10 upon written application if he or she:
8731	8731	11 (1) has attained age 62, has at least 35 years of
8732	8732	12 service credit, and is otherwise eligible under the
8733	8733	13 requirements of the applicable Article;
8734	8734	14 (2) has attained age 64, has at least 20 years of
8735	8735	15 service credit, and is otherwise eligible under the
8736	8736	16 requirements of the applicable Article; or
8737	8737	17 (3) has attained age 67, has at least 10 years of
8738	8738	18 service credit, and is otherwise eligible under the
8739	8739	19 requirements of the applicable Article.
8740	8740	20 For the purposes of Section 1-103.1 of this Code, the
8741	8741	21 changes made to this Section by this amendatory Act of the
8742	8742	22 103rd General Assembly are applicable without regard to
8743	8743	23 whether the employee was in active service on or after the
8744	8744	24 effective date of this amendatory Act of the 103rd General
8745	8745	25 Assembly.
8746	8746	26 (d) The retirement annuity of a member or participant who
8747	8747
8748	8748
8749	8749
8750	8750
8751	8751
8752	8752	HB4873 - 244 - LRB103 35886 RPS 65971 b
8753	8753
8754	8754
8755	8755	HB4873- 245 -LRB103 35886 RPS 65971 b HB4873 - 245 - LRB103 35886 RPS 65971 b
8756	8756	HB4873 - 245 - LRB103 35886 RPS 65971 b
8757	8757	1 is retiring after attaining age 62 (age 60, with respect to
8758	8758	2 service under Article 12 that is subject to this Section, for a
8759	8759	3 member or participant under Article 12 who first becomes a
8760	8760	4 member or participant under Article 12 on or after January 1,
8761	8761	5 2022 or who makes the election under item (i) of subsection
8762	8762	6 (d-15) of this Section) with at least 10 years of service
8763	8763	7 credit shall be reduced by one-half of 1% for each full month
8764	8764	8 that the member's age is under age 67 (age 65, with respect to
8765	8765	9 service under Article 12 that is subject to this Section, for a
8766	8766	10 member or participant under Article 12 who first becomes a
8767	8767	11 member or participant under Article 12 on or after January 1,
8768	8768	12 2022 or who makes the election under item (i) of subsection
8769	8769	13 (d-15) of this Section).
8770	8770	14 (d-5) The retirement annuity payable under Article 8 or
8771	8771	15 Article 11 to an eligible person subject to subsection (c-5)
8772	8772	16 of this Section who is retiring at age 60 with at least 10
8773	8773	17 years of service credit shall be reduced by one-half of 1% for
8774	8774	18 each full month that the member's age is under age 65.
8775	8775	19 (d-10) Each person who first became a member or
8776	8776	20 participant under Article 8 or Article 11 of this Code on or
8777	8777	21 after January 1, 2011 and prior to July 6, 2017 (the effective
8778	8778	22 date of Public Act 100-23) shall make an irrevocable election
8779	8779	23 either:
8780	8780	24 (i) to be eligible for the reduced retirement age
8781	8781	25 provided in subsections (c-5) and (d-5) of this Section,
8782	8782	26 the eligibility for which is conditioned upon the member
8783	8783
8784	8784
8785	8785
8786	8786
8787	8787
8788	8788	HB4873 - 245 - LRB103 35886 RPS 65971 b
8789	8789
8790	8790
8791	8791	HB4873- 246 -LRB103 35886 RPS 65971 b HB4873 - 246 - LRB103 35886 RPS 65971 b
8792	8792	HB4873 - 246 - LRB103 35886 RPS 65971 b
8793	8793	1 or participant agreeing to the increases in employee
8794	8794	2 contributions for age and service annuities provided in
8795	8795	3 subsection (a-5) of Section 8-174 of this Code (for
8796	8796	4 service under Article 8) or subsection (a-5) of Section
8797	8797	5 11-170 of this Code (for service under Article 11); or
8798	8798	6 (ii) to not agree to item (i) of this subsection
8799	8799	7 (d-10), in which case the member or participant shall
8800	8800	8 continue to be subject to the retirement age provisions in
8801	8801	9 subsections (c) and (d) of this Section and the employee
8802	8802	10 contributions for age and service annuity as provided in
8803	8803	11 subsection (a) of Section 8-174 of this Code (for service
8804	8804	12 under Article 8) or subsection (a) of Section 11-170 of
8805	8805	13 this Code (for service under Article 11).
8806	8806	14 The election provided for in this subsection shall be made
8807	8807	15 between October 1, 2017 and November 15, 2017. A person
8808	8808	16 subject to this subsection who makes the required election
8809	8809	17 shall remain bound by that election. A person subject to this
8810	8810	18 subsection who fails for any reason to make the required
8811	8811	19 election within the time specified in this subsection shall be
8812	8812	20 deemed to have made the election under item (ii).
8813	8813	21 (d-15) Each person who first becomes a member or
8814	8814	22 participant under Article 12 on or after January 1, 2011 and
8815	8815	23 prior to January 1, 2022 shall make an irrevocable election
8816	8816	24 either:
8817	8817	25 (i) to be eligible for the reduced retirement age
8818	8818	26 specified in subsections (c) and (d) of this Section, the
8819	8819
8820	8820
8821	8821
8822	8822
8823	8823
8824	8824	HB4873 - 246 - LRB103 35886 RPS 65971 b
8825	8825
8826	8826
8827	8827	HB4873- 247 -LRB103 35886 RPS 65971 b HB4873 - 247 - LRB103 35886 RPS 65971 b
8828	8828	HB4873 - 247 - LRB103 35886 RPS 65971 b
8829	8829	1 eligibility for which is conditioned upon the member or
8830	8830	2 participant agreeing to the increase in employee
8831	8831	3 contributions for service annuities specified in
8832	8832	4 subsection (b) of Section 12-150; or
8833	8833	5 (ii) to not agree to item (i) of this subsection
8834	8834	6 (d-15), in which case the member or participant shall not
8835	8835	7 be eligible for the reduced retirement age specified in
8836	8836	8 subsections (c) and (d) of this Section and shall not be
8837	8837	9 subject to the increase in employee contributions for
8838	8838	10 service annuities specified in subsection (b) of Section
8839	8839	11 12-150.
8840	8840	12 The election provided for in this subsection shall be made
8841	8841	13 between January 1, 2022 and April 1, 2022. A person subject to
8842	8842	14 this subsection who makes the required election shall remain
8843	8843	15 bound by that election. A person subject to this subsection
8844	8844	16 who fails for any reason to make the required election within
8845	8845	17 the time specified in this subsection shall be deemed to have
8846	8846	18 made the election under item (ii).
8847	8847	19 (e) Any retirement annuity or supplemental annuity shall
8848	8848	20 be subject to annual increases on the January 1 occurring
8849	8849	21 either on or after the attainment of age 67 (age 65, with
8850	8850	22 respect to service under Article 12 that is subject to this
8851	8851	23 Section, for a member or participant under Article 12 who
8852	8852	24 first becomes a member or participant under Article 12 on or
8853	8853	25 after January 1, 2022 or who makes the election under item (i)
8854	8854	26 of subsection (d-15); and beginning on July 6, 2017 (the
8855	8855
8856	8856
8857	8857
8858	8858
8859	8859
8860	8860	HB4873 - 247 - LRB103 35886 RPS 65971 b
8861	8861
8862	8862
8863	8863	HB4873- 248 -LRB103 35886 RPS 65971 b HB4873 - 248 - LRB103 35886 RPS 65971 b
8864	8864	HB4873 - 248 - LRB103 35886 RPS 65971 b
8865	8865	1 effective date of Public Act 100-23), age 65 with respect to
8866	8866	2 service under Article 8 or Article 11 for eligible persons
8867	8867	3 who: (i) are subject to subsection (c-5) of this Section; or
8868	8868	4 (ii) made the election under item (i) of subsection (d-10) of
8869	8869	5 this Section) or the first anniversary of the annuity start
8870	8870	6 date, whichever is later. Each annual increase shall be
8871	8871	7 calculated at 3% or one-half the annual unadjusted percentage
8872	8872	8 increase (but not less than zero) in the consumer price
8873	8873	9 index-u for the 12 months ending with the September preceding
8874	8874	10 each November 1, whichever is less, of the originally granted
8875	8875	11 retirement annuity. If the annual unadjusted percentage change
8876	8876	12 in the consumer price index-u for the 12 months ending with the
8877	8877	13 September preceding each November 1 is zero or there is a
8878	8878	14 decrease, then the annuity shall not be increased.
8879	8879	15 For the purposes of Section 1-103.1 of this Code, the
8880	8880	16 changes made to this Section by Public Act 102-263 are
8881	8881	17 applicable without regard to whether the employee was in
8882	8882	18 active service on or after August 6, 2021 (the effective date
8883	8883	19 of Public Act 102-263).
8884	8884	20 For the purposes of Section 1-103.1 of this Code, the
8885	8885	21 changes made to this Section by Public Act 100-23 are
8886	8886	22 applicable without regard to whether the employee was in
8887	8887	23 active service on or after July 6, 2017 (the effective date of
8888	8888	24 Public Act 100-23).
8889	8889	25 (f) The initial survivor's or widow's annuity of an
8890	8890	26 otherwise eligible survivor or widow of a retired member or
8891	8891
8892	8892
8893	8893
8894	8894
8895	8895
8896	8896	HB4873 - 248 - LRB103 35886 RPS 65971 b
8897	8897
8898	8898
8899	8899	HB4873- 249 -LRB103 35886 RPS 65971 b HB4873 - 249 - LRB103 35886 RPS 65971 b
8900	8900	HB4873 - 249 - LRB103 35886 RPS 65971 b
8901	8901	1 participant who first became a member or participant on or
8902	8902	2 after January 1, 2011 shall be in the amount of 66 2/3% of the
8903	8903	3 retired member's or participant's retirement annuity at the
8904	8904	4 date of death. In the case of the death of a member or
8905	8905	5 participant who has not retired and who first became a member
8906	8906	6 or participant on or after January 1, 2011, eligibility for a
8907	8907	7 survivor's or widow's annuity shall be determined by the
8908	8908	8 applicable Article of this Code. The initial benefit shall be
8909	8909	9 66 2/3% of the earned annuity without a reduction due to age. A
8910	8910	10 child's annuity of an otherwise eligible child shall be in the
8911	8911	11 amount prescribed under each Article if applicable. Any
8912	8912	12 survivor's or widow's annuity shall be increased (1) on each
8913	8913	13 January 1 occurring on or after the commencement of the
8914	8914	14 annuity if the deceased member died while receiving a
8915	8915	15 retirement annuity or (2) in other cases, on each January 1
8916	8916	16 occurring after the first anniversary of the commencement of
8917	8917	17 the annuity. Each annual increase shall be calculated at 3% or
8918	8918	18 one-half the annual unadjusted percentage increase (but not
8919	8919	19 less than zero) in the consumer price index-u for the 12 months
8920	8920	20 ending with the September preceding each November 1, whichever
8921	8921	21 is less, of the originally granted survivor's annuity. If the
8922	8922	22 annual unadjusted percentage change in the consumer price
8923	8923	23 index-u for the 12 months ending with the September preceding
8924	8924	24 each November 1 is zero or there is a decrease, then the
8925	8925	25 annuity shall not be increased.
8926	8926	26 (g) The benefits in Section 14-110 apply only if the
8927	8927
8928	8928
8929	8929
8930	8930
8931	8931
8932	8932	HB4873 - 249 - LRB103 35886 RPS 65971 b
8933	8933
8934	8934
8935	8935	HB4873- 250 -LRB103 35886 RPS 65971 b HB4873 - 250 - LRB103 35886 RPS 65971 b
8936	8936	HB4873 - 250 - LRB103 35886 RPS 65971 b
8937	8937	1 person is a State policeman, a fire fighter in the fire
8938	8938	2 protection service of a department, a conservation police
8939	8939	3 officer, an investigator for the Secretary of State, an
8940	8940	4 investigator for the Office of the Attorney General, an arson
8941	8941	5 investigator, a Commerce Commission police officer,
8942	8942	6 investigator for the Department of Revenue or the Illinois
8943	8943	7 Gaming Board, a security employee of the Department of
8944	8944	8 Corrections or the Department of Juvenile Justice, or a
8945	8945	9 security employee of the Department of Innovation and
8946	8946	10 Technology, as those terms are defined in subsection (b) and
8947	8947	11 subsection (c) of Section 14-110. A person who meets the
8948	8948	12 requirements of this Section is entitled to an annuity
8949	8949	13 calculated under the provisions of Section 14-110, in lieu of
8950	8950	14 the regular or minimum retirement annuity, only if the person
8951	8951	15 has withdrawn from service with not less than 20 years of
8952	8952	16 eligible creditable service and has attained age 60,
8953	8953	17 regardless of whether the attainment of age 60 occurs while
8954	8954	18 the person is still in service.
8955	8955	19 (h) If a person who first becomes a member or a participant
8956	8956	20 of a retirement system or pension fund subject to this Section
8957	8957	21 on or after January 1, 2011 is receiving a retirement annuity
8958	8958	22 or retirement pension under that system or fund and becomes a
8959	8959	23 member or participant under any other system or fund created
8960	8960	24 by this Code and is employed on a full-time basis, except for
8961	8961	25 those members or participants exempted from the provisions of
8962	8962	26 this Section under subsection (a) of this Section, then the
8963	8963
8964	8964
8965	8965
8966	8966
8967	8967
8968	8968	HB4873 - 250 - LRB103 35886 RPS 65971 b
8969	8969
8970	8970
8971	8971	HB4873- 251 -LRB103 35886 RPS 65971 b HB4873 - 251 - LRB103 35886 RPS 65971 b
8972	8972	HB4873 - 251 - LRB103 35886 RPS 65971 b
8973	8973	1 person's retirement annuity or retirement pension under that
8974	8974	2 system or fund shall be suspended during that employment. Upon
8975	8975	3 termination of that employment, the person's retirement
8976	8976	4 annuity or retirement pension payments shall resume and be
8977	8977	5 recalculated if recalculation is provided for under the
8978	8978	6 applicable Article of this Code.
8979	8979	7 If a person who first becomes a member of a retirement
8980	8980	8 system or pension fund subject to this Section on or after
8981	8981	9 January 1, 2012 and is receiving a retirement annuity or
8982	8982	10 retirement pension under that system or fund and accepts on a
8983	8983	11 contractual basis a position to provide services to a
8984	8984	12 governmental entity from which he or she has retired, then
8985	8985	13 that person's annuity or retirement pension earned as an
8986	8986	14 active employee of the employer shall be suspended during that
8987	8987	15 contractual service. A person receiving an annuity or
8988	8988	16 retirement pension under this Code shall notify the pension
8989	8989	17 fund or retirement system from which he or she is receiving an
8990	8990	18 annuity or retirement pension, as well as his or her
8991	8991	19 contractual employer, of his or her retirement status before
8992	8992	20 accepting contractual employment. A person who fails to submit
8993	8993	21 such notification shall be guilty of a Class A misdemeanor and
8994	8994	22 required to pay a fine of $1,000. Upon termination of that
8995	8995	23 contractual employment, the person's retirement annuity or
8996	8996	24 retirement pension payments shall resume and, if appropriate,
8997	8997	25 be recalculated under the applicable provisions of this Code.
8998	8998	26 (i) (Blank).
8999	8999
9000	9000
9001	9001
9002	9002
9003	9003
9004	9004	HB4873 - 251 - LRB103 35886 RPS 65971 b
9005	9005
9006	9006
9007	9007	HB4873- 252 -LRB103 35886 RPS 65971 b HB4873 - 252 - LRB103 35886 RPS 65971 b
9008	9008	HB4873 - 252 - LRB103 35886 RPS 65971 b
9009	9009	1 (j) In the case of a conflict between the provisions of
9010	9010	2 this Section and any other provision of this Code, the
9011	9011	3 provisions of this Section shall control.
9012	9012	4 (Source: P.A. 102-16, eff. 6-17-21; 102-210, eff. 1-1-22;
9013	9013	5 102-263, eff. 8-6-21; 102-956, eff. 5-27-22; 103-529, eff.
9014	9014	6 8-11-23.)
9015	9015	7 (40 ILCS 5/15-135) (from Ch. 108 1/2, par. 15-135)
9016	9016	8 Sec. 15-135. Retirement annuities; conditions.
9017	9017	9 (a) This subsection (a) applies only to a Tier 1 member. A
9018	9018	10 participant who retires in one of the following specified
9019	9019	11 years with the specified amount of service is entitled to a
9020	9020	12 retirement annuity at any age under the retirement program
9021	9021	13 applicable to the participant:
9022	9022	14 35 years if retirement is in 1997 or before;
9023	9023	15 34 years if retirement is in 1998;
9024	9024	16 33 years if retirement is in 1999;
9025	9025	17 32 years if retirement is in 2000;
9026	9026	18 31 years if retirement is in 2001;
9027	9027	19 30 years if retirement is in 2002 or later.
9028	9028	20 A participant with 8 or more years of service after
9029	9029	21 September 1, 1941, is entitled to a retirement annuity on or
9030	9030	22 after attainment of age 55.
9031	9031	23 A participant with at least 5 but less than 8 years of
9032	9032	24 service after September 1, 1941, is entitled to a retirement
9033	9033	25 annuity on or after attainment of age 62.
9034	9034
9035	9035
9036	9036
9037	9037
9038	9038
9039	9039	HB4873 - 252 - LRB103 35886 RPS 65971 b
9040	9040
9041	9041
9042	9042	HB4873- 253 -LRB103 35886 RPS 65971 b HB4873 - 253 - LRB103 35886 RPS 65971 b
9043	9043	HB4873 - 253 - LRB103 35886 RPS 65971 b
9044	9044	1 A participant who has at least 25 years of service in this
9045	9045	2 system as a police officer or firefighter is entitled to a
9046	9046	3 retirement annuity on or after the attainment of age 50, if
9047	9047	4 Rule 4 of Section 15-136 is applicable to the participant.
9048	9048	5 (a-5) Beginning July 1, 2025, a Tier 2 member is entitled
9049	9049	6 to a retirement annuity upon written application if he or she:
9050	9050	7 (1) has attained age 62, has at least 35 years of
9051	9051	8 service credit, and is otherwise eligible under the
9052	9052	9 requirements of this Article;
9053	9053	10 (2) has attained age 64, has at least 20 years of
9054	9054	11 service credit, and is otherwise eligible under the
9055	9055	12 requirements of this Article; or
9056	9056	13 (3) has attained age 67, has at least 10 years of
9057	9057	14 service credit, and is otherwise eligible under the
9058	9058	15 requirements of this Article.
9059	9059	16 For the purposes of Section 1-103.1 of this Code, the
9060	9060	17 changes made to this Section by this amendatory Act of the
9061	9061	18 103rd General Assembly are applicable without regard to
9062	9062	19 whether the employee was in active service on or after the
9063	9063	20 effective date of this amendatory Act of the 103rd General
9064	9064	21 Assembly.
9065	9065	22 Before July 1, 2025, a A Tier 2 member is entitled to a
9066	9066	23 retirement annuity upon written application if he or she has
9067	9067	24 attained age 67 and has at least 10 years of service credit and
9068	9068	25 is otherwise eligible under the requirements of this Article.
9069	9069	26 A Tier 2 member who has attained age 62 and has at least 10
9070	9070
9071	9071
9072	9072
9073	9073
9074	9074
9075	9075	HB4873 - 253 - LRB103 35886 RPS 65971 b
9076	9076
9077	9077
9078	9078	HB4873- 254 -LRB103 35886 RPS 65971 b HB4873 - 254 - LRB103 35886 RPS 65971 b
9079	9079	HB4873 - 254 - LRB103 35886 RPS 65971 b
9080	9080	1 years of service credit and is otherwise eligible under the
9081	9081	2 requirements of this Article may elect to receive the lower
9082	9082	3 retirement annuity provided in subsection (b-5) of Section
9083	9083	4 15-136 of this Article.
9084	9084	5 (a-10) Before July 1, 2025, a A Tier 2 member who has at
9085	9085	6 least 20 years of service in this system as a police officer or
9086	9086	7 firefighter is entitled to a retirement annuity upon written
9087	9087	8 application on or after the attainment of age 60 if Rule 4 of
9088	9088	9 Section 15-136 is applicable to the participant. Beginning
9089	9089	10 July 1, 2025, a Tier 2 member who has at least 20 years of
9090	9090	11 service in this system as a police officer or firefighter is
9091	9091	12 entitled to a retirement annuity upon written application on
9092	9092	13 or after the attainment of age 55 if Rule 4 of Section 15-136
9093	9093	14 is applicable to the participant. The changes made to this
9094	9094	15 subsection by this amendatory Act of the 101st General
9095	9095	16 Assembly apply retroactively to January 1, 2011.
9096	9096	17 (b) The annuity payment period shall begin on the date
9097	9097	18 specified by the participant or the recipient of a disability
9098	9098	19 retirement annuity submitting a written application. For a
9099	9099	20 participant, the date on which the annuity payment period
9100	9100	21 begins shall not be prior to termination of employment or more
9101	9101	22 than one year before the application is received by the board;
9102	9102	23 however, if the participant is not an employee of an employer
9103	9103	24 participating in this System or in a participating system as
9104	9104	25 defined in Article 20 of this Code on April 1 of the calendar
9105	9105	26 year next following the calendar year in which the participant
9106	9106
9107	9107
9108	9108
9109	9109
9110	9110
9111	9111	HB4873 - 254 - LRB103 35886 RPS 65971 b
9112	9112
9113	9113
9114	9114	HB4873- 255 -LRB103 35886 RPS 65971 b HB4873 - 255 - LRB103 35886 RPS 65971 b
9115	9115	HB4873 - 255 - LRB103 35886 RPS 65971 b
9116	9116	1 attains the age specified under Section 401(a)(9) of the
9117	9117	2 Internal Revenue Code of 1986, as amended, the annuity payment
9118	9118	3 period shall begin on that date regardless of whether an
9119	9119	4 application has been filed. For a recipient of a disability
9120	9120	5 retirement annuity, the date on which the annuity payment
9121	9121	6 period begins shall not be prior to the discontinuation of the
9122	9122	7 disability retirement annuity under Section 15-153.2.
9123	9123	8 (c) An annuity is not payable if the amount provided under
9124	9124	9 Section 15-136 is less than $10 per month.
9125	9125	10 (Source: P.A. 101-610, eff. 1-1-20; 102-210, eff. 7-30-21.)
9126	9126	11 Article 10.
9127	9127	12 Section 10-5. The Illinois Pension Code is amended by
9128	9128	13 changing Sections 1-160, 15-108.2, 15-155, and 16-158.3 as
9129	9129	14 follows:
9130	9130	15 (40 ILCS 5/1-160)
9131	9131	16 (Text of Section from P.A. 102-719)
9132	9132	17 Sec. 1-160. Provisions applicable to new hires.
9133	9133	18 (a) The provisions of this Section apply to a person who,
9134	9134	19 on or after January 1, 2011, first becomes a member or a
9135	9135	20 participant under any reciprocal retirement system or pension
9136	9136	21 fund established under this Code, other than a retirement
9137	9137	22 system or pension fund established under Article 2, 3, 4, 5, 6,
9138	9138	23 7, 15, or 18 of this Code, notwithstanding any other provision
9139	9139
9140	9140
9141	9141
9142	9142
9143	9143
9144	9144	HB4873 - 255 - LRB103 35886 RPS 65971 b
9145	9145
9146	9146
9147	9147	HB4873- 256 -LRB103 35886 RPS 65971 b HB4873 - 256 - LRB103 35886 RPS 65971 b
9148	9148	HB4873 - 256 - LRB103 35886 RPS 65971 b
9149	9149	1 of this Code to the contrary, but do not apply to any
9150	9150	2 self-managed plan established under this Code or to any
9151	9151	3 participant of the retirement plan established under Section
9152	9152	4 22-101; except that this Section applies to a person who
9153	9153	5 elected to establish alternative credits by electing in
9154	9154	6 writing after January 1, 2011, but before August 8, 2011,
9155	9155	7 under Section 7-145.1 of this Code. Notwithstanding anything
9156	9156	8 to the contrary in this Section, for purposes of this Section,
9157	9157	9 a person who is a Tier 1 regular employee as defined in Section
9158	9158	10 7-109.4 of this Code or who participated in a retirement
9159	9159	11 system under Article 15 prior to January 1, 2011 shall be
9160	9160	12 deemed a person who first became a member or participant prior
9161	9161	13 to January 1, 2011 under any retirement system or pension fund
9162	9162	14 subject to this Section. The changes made to this Section by
9163	9163	15 Public Act 98-596 are a clarification of existing law and are
9164	9164	16 intended to be retroactive to January 1, 2011 (the effective
9165	9165	17 date of Public Act 96-889), notwithstanding the provisions of
9166	9166	18 Section 1-103.1 of this Code.
9167	9167	19 This Section does not apply to a person who first becomes a
9168	9168	20 noncovered employee under Article 14 on or after the
9169	9169	21 implementation date of the plan created under Section 1-161
9170	9170	22 for that Article, unless that person elects under subsection
9171	9171	23 (b) of Section 1-161 to instead receive the benefits provided
9172	9172	24 under this Section and the applicable provisions of that
9173	9173	25 Article.
9174	9174	26 This Section does not apply to a person who first becomes a
9175	9175
9176	9176
9177	9177
9178	9178
9179	9179
9180	9180	HB4873 - 256 - LRB103 35886 RPS 65971 b
9181	9181
9182	9182
9183	9183	HB4873- 257 -LRB103 35886 RPS 65971 b HB4873 - 257 - LRB103 35886 RPS 65971 b
9184	9184	HB4873 - 257 - LRB103 35886 RPS 65971 b
9185	9185	1 member or participant under Article 16 on or after the
9186	9186	2 implementation date of the plan created under Section 1-161
9187	9187	3 for that Article, unless that person elects under subsection
9188	9188	4 (b) of Section 1-161 to instead receive the benefits provided
9189	9189	5 under this Section and the applicable provisions of that
9190	9190	6 Article.
9191	9191	7 This Section does not apply to a person who elects under
9192	9192	8 subsection (c-5) of Section 1-161 to receive the benefits
9193	9193	9 under Section 1-161.
9194	9194	10 This Section does not apply to a person who first becomes a
9195	9195	11 member or participant of an affected pension fund on or after 6
9196	9196	12 months after the resolution or ordinance date, as defined in
9197	9197	13 Section 1-162, unless that person elects under subsection (c)
9198	9198	14 of Section 1-162 to receive the benefits provided under this
9199	9199	15 Section and the applicable provisions of the Article under
9200	9200	16 which he or she is a member or participant.
9201	9201	17 (b) "Final average salary" means, except as otherwise
9202	9202	18 provided in this subsection, the average monthly (or annual)
9203	9203	19 salary obtained by dividing the total salary or earnings
9204	9204	20 calculated under the Article applicable to the member or
9205	9205	21 participant during the 96 consecutive months (or 8 consecutive
9206	9206	22 years) of service within the last 120 months (or 10 years) of
9207	9207	23 service in which the total salary or earnings calculated under
9208	9208	24 the applicable Article was the highest by the number of months
9209	9209	25 (or years) of service in that period. For the purposes of a
9210	9210	26 person who first becomes a member or participant of any
9211	9211
9212	9212
9213	9213
9214	9214
9215	9215
9216	9216	HB4873 - 257 - LRB103 35886 RPS 65971 b
9217	9217
9218	9218
9219	9219	HB4873- 258 -LRB103 35886 RPS 65971 b HB4873 - 258 - LRB103 35886 RPS 65971 b
9220	9220	HB4873 - 258 - LRB103 35886 RPS 65971 b
9221	9221	1 retirement system or pension fund to which this Section
9222	9222	2 applies on or after January 1, 2011, in this Code, "final
9223	9223	3 average salary" shall be substituted for the following:
9224	9224	4 (1) (Blank).
9225	9225	5 (2) In Articles 8, 9, 10, 11, and 12, "highest average
9226	9226	6 annual salary for any 4 consecutive years within the last
9227	9227	7 10 years of service immediately preceding the date of
9228	9228	8 withdrawal".
9229	9229	9 (3) In Article 13, "average final salary".
9230	9230	10 (4) In Article 14, "final average compensation".
9231	9231	11 (5) In Article 17, "average salary".
9232	9232	12 (6) In Section 22-207, "wages or salary received by
9233	9233	13 him at the date of retirement or discharge".
9234	9234	14 A member of the Teachers' Retirement System of the State
9235	9235	15 of Illinois who retires on or after June 1, 2021 and for whom
9236	9236	16 the 2020-2021 school year is used in the calculation of the
9237	9237	17 member's final average salary shall use the higher of the
9238	9238	18 following for the purpose of determining the member's final
9239	9239	19 average salary:
9240	9240	20 (A) the amount otherwise calculated under the first
9241	9241	21 paragraph of this subsection; or
9242	9242	22 (B) an amount calculated by the Teachers' Retirement
9243	9243	23 System of the State of Illinois using the average of the
9244	9244	24 monthly (or annual) salary obtained by dividing the total
9245	9245	25 salary or earnings calculated under Article 16 applicable
9246	9246	26 to the member or participant during the 96 months (or 8
9247	9247
9248	9248
9249	9249
9250	9250
9251	9251
9252	9252	HB4873 - 258 - LRB103 35886 RPS 65971 b
9253	9253
9254	9254
9255	9255	HB4873- 259 -LRB103 35886 RPS 65971 b HB4873 - 259 - LRB103 35886 RPS 65971 b
9256	9256	HB4873 - 259 - LRB103 35886 RPS 65971 b
9257	9257	1 years) of service within the last 120 months (or 10 years)
9258	9258	2 of service in which the total salary or earnings
9259	9259	3 calculated under the Article was the highest by the number
9260	9260	4 of months (or years) of service in that period.
9261	9261	5 (b-5) Beginning on January 1, 2011, for all purposes under
9262	9262	6 this Code (including without limitation the calculation of
9263	9263	7 benefits and employee contributions), the annual earnings,
9264	9264	8 salary, or wages (based on the plan year) of a member or
9265	9265	9 participant to whom this Section applies shall not exceed
9266	9266	10 $106,800; however, that amount shall annually thereafter be
9267	9267	11 increased by the lesser of (i) 3% of that amount, including all
9268	9268	12 previous adjustments, or (ii) one-half the annual unadjusted
9269	9269	13 percentage increase (but not less than zero) in the consumer
9270	9270	14 price index-u for the 12 months ending with the September
9271	9271	15 preceding each November 1, including all previous adjustments.
9272	9272	16 For the purposes of this Section, "consumer price index-u"
9273	9273	17 means the index published by the Bureau of Labor Statistics of
9274	9274	18 the United States Department of Labor that measures the
9275	9275	19 average change in prices of goods and services purchased by
9276	9276	20 all urban consumers, United States city average, all items,
9277	9277	21 1982-84 = 100. The new amount resulting from each annual
9278	9278	22 adjustment shall be determined by the Public Pension Division
9279	9279	23 of the Department of Insurance and made available to the
9280	9280	24 boards of the retirement systems and pension funds by November
9281	9281	25 1 of each year.
9282	9282	26 (b-10) Beginning on January 1, 2024, for all purposes
9283	9283
9284	9284
9285	9285
9286	9286
9287	9287
9288	9288	HB4873 - 259 - LRB103 35886 RPS 65971 b
9289	9289
9290	9290
9291	9291	HB4873- 260 -LRB103 35886 RPS 65971 b HB4873 - 260 - LRB103 35886 RPS 65971 b
9292	9292	HB4873 - 260 - LRB103 35886 RPS 65971 b
9293	9293	1 under this Code (including, without limitation, the
9294	9294	2 calculation of benefits and employee contributions), the
9295	9295	3 annual earnings, salary, or wages (based on the plan year) of a
9296	9296	4 member or participant under Article 9 to whom this Section
9297	9297	5 applies shall include an annual earnings, salary, or wage cap
9298	9298	6 that tracks the Social Security wage base. Maximum annual
9299	9299	7 earnings, wages, or salary shall be the annual contribution
9300	9300	8 and benefit base established for the applicable year by the
9301	9301	9 Commissioner of the Social Security Administration under the
9302	9302	10 federal Social Security Act.
9303	9303	11 However, in no event shall the annual earnings, salary, or
9304	9304	12 wages for the purposes of this Article and Article 9 exceed any
9305	9305	13 limitation imposed on annual earnings, salary, or wages under
9306	9306	14 Section 1-117. Under no circumstances shall the maximum amount
9307	9307	15 of annual earnings, salary, or wages be greater than the
9308	9308	16 amount set forth in this subsection (b-10) as a result of
9309	9309	17 reciprocal service or any provisions regarding reciprocal
9310	9310	18 services, nor shall the Fund under Article 9 be required to pay
9311	9311	19 any refund as a result of the application of this maximum
9312	9312	20 annual earnings, salary, and wage cap.
9313	9313	21 Nothing in this subsection (b-10) shall cause or otherwise
9314	9314	22 result in any retroactive adjustment of any employee
9315	9315	23 contributions. Nothing in this subsection (b-10) shall cause
9316	9316	24 or otherwise result in any retroactive adjustment of
9317	9317	25 disability or other payments made between January 1, 2011 and
9318	9318	26 January 1, 2024.
9319	9319
9320	9320
9321	9321
9322	9322
9323	9323
9324	9324	HB4873 - 260 - LRB103 35886 RPS 65971 b
9325	9325
9326	9326
9327	9327	HB4873- 261 -LRB103 35886 RPS 65971 b HB4873 - 261 - LRB103 35886 RPS 65971 b
9328	9328	HB4873 - 261 - LRB103 35886 RPS 65971 b
9329	9329	1 (c) A member or participant is entitled to a retirement
9330	9330	2 annuity upon written application if he or she has attained age
9331	9331	3 67 (age 65, with respect to service under Article 12 that is
9332	9332	4 subject to this Section, for a member or participant under
9333	9333	5 Article 12 who first becomes a member or participant under
9334	9334	6 Article 12 on or after January 1, 2022 or who makes the
9335	9335	7 election under item (i) of subsection (d-15) of this Section)
9336	9336	8 and has at least 10 years of service credit and is otherwise
9337	9337	9 eligible under the requirements of the applicable Article.
9338	9338	10 A member or participant who has attained age 62 (age 60,
9339	9339	11 with respect to service under Article 12 that is subject to
9340	9340	12 this Section, for a member or participant under Article 12 who
9341	9341	13 first becomes a member or participant under Article 12 on or
9342	9342	14 after January 1, 2022 or who makes the election under item (i)
9343	9343	15 of subsection (d-15) of this Section) and has at least 10 years
9344	9344	16 of service credit and is otherwise eligible under the
9345	9345	17 requirements of the applicable Article may elect to receive
9346	9346	18 the lower retirement annuity provided in subsection (d) of
9347	9347	19 this Section.
9348	9348	20 (c-5) A person who first becomes a member or a participant
9349	9349	21 subject to this Section on or after July 6, 2017 (the effective
9350	9350	22 date of Public Act 100-23), notwithstanding any other
9351	9351	23 provision of this Code to the contrary, is entitled to a
9352	9352	24 retirement annuity under Article 8 or Article 11 upon written
9353	9353	25 application if he or she has attained age 65 and has at least
9354	9354	26 10 years of service credit and is otherwise eligible under the
9355	9355
9356	9356
9357	9357
9358	9358
9359	9359
9360	9360	HB4873 - 261 - LRB103 35886 RPS 65971 b
9361	9361
9362	9362
9363	9363	HB4873- 262 -LRB103 35886 RPS 65971 b HB4873 - 262 - LRB103 35886 RPS 65971 b
9364	9364	HB4873 - 262 - LRB103 35886 RPS 65971 b
9365	9365	1 requirements of Article 8 or Article 11 of this Code,
9366	9366	2 whichever is applicable.
9367	9367	3 (d) The retirement annuity of a member or participant who
9368	9368	4 is retiring after attaining age 62 (age 60, with respect to
9369	9369	5 service under Article 12 that is subject to this Section, for a
9370	9370	6 member or participant under Article 12 who first becomes a
9371	9371	7 member or participant under Article 12 on or after January 1,
9372	9372	8 2022 or who makes the election under item (i) of subsection
9373	9373	9 (d-15) of this Section) with at least 10 years of service
9374	9374	10 credit shall be reduced by one-half of 1% for each full month
9375	9375	11 that the member's age is under age 67 (age 65, with respect to
9376	9376	12 service under Article 12 that is subject to this Section, for a
9377	9377	13 member or participant under Article 12 who first becomes a
9378	9378	14 member or participant under Article 12 on or after January 1,
9379	9379	15 2022 or who makes the election under item (i) of subsection
9380	9380	16 (d-15) of this Section).
9381	9381	17 (d-5) The retirement annuity payable under Article 8 or
9382	9382	18 Article 11 to an eligible person subject to subsection (c-5)
9383	9383	19 of this Section who is retiring at age 60 with at least 10
9384	9384	20 years of service credit shall be reduced by one-half of 1% for
9385	9385	21 each full month that the member's age is under age 65.
9386	9386	22 (d-10) Each person who first became a member or
9387	9387	23 participant under Article 8 or Article 11 of this Code on or
9388	9388	24 after January 1, 2011 and prior to July 6, 2017 (the effective
9389	9389	25 date of Public Act 100-23) shall make an irrevocable election
9390	9390	26 either:
9391	9391
9392	9392
9393	9393
9394	9394
9395	9395
9396	9396	HB4873 - 262 - LRB103 35886 RPS 65971 b
9397	9397
9398	9398
9399	9399	HB4873- 263 -LRB103 35886 RPS 65971 b HB4873 - 263 - LRB103 35886 RPS 65971 b
9400	9400	HB4873 - 263 - LRB103 35886 RPS 65971 b
9401	9401	1 (i) to be eligible for the reduced retirement age
9402	9402	2 provided in subsections (c-5) and (d-5) of this Section,
9403	9403	3 the eligibility for which is conditioned upon the member
9404	9404	4 or participant agreeing to the increases in employee
9405	9405	5 contributions for age and service annuities provided in
9406	9406	6 subsection (a-5) of Section 8-174 of this Code (for
9407	9407	7 service under Article 8) or subsection (a-5) of Section
9408	9408	8 11-170 of this Code (for service under Article 11); or
9409	9409	9 (ii) to not agree to item (i) of this subsection
9410	9410	10 (d-10), in which case the member or participant shall
9411	9411	11 continue to be subject to the retirement age provisions in
9412	9412	12 subsections (c) and (d) of this Section and the employee
9413	9413	13 contributions for age and service annuity as provided in
9414	9414	14 subsection (a) of Section 8-174 of this Code (for service
9415	9415	15 under Article 8) or subsection (a) of Section 11-170 of
9416	9416	16 this Code (for service under Article 11).
9417	9417	17 The election provided for in this subsection shall be made
9418	9418	18 between October 1, 2017 and November 15, 2017. A person
9419	9419	19 subject to this subsection who makes the required election
9420	9420	20 shall remain bound by that election. A person subject to this
9421	9421	21 subsection who fails for any reason to make the required
9422	9422	22 election within the time specified in this subsection shall be
9423	9423	23 deemed to have made the election under item (ii).
9424	9424	24 (d-15) Each person who first becomes a member or
9425	9425	25 participant under Article 12 on or after January 1, 2011 and
9426	9426	26 prior to January 1, 2022 shall make an irrevocable election
9427	9427
9428	9428
9429	9429
9430	9430
9431	9431
9432	9432	HB4873 - 263 - LRB103 35886 RPS 65971 b
9433	9433
9434	9434
9435	9435	HB4873- 264 -LRB103 35886 RPS 65971 b HB4873 - 264 - LRB103 35886 RPS 65971 b
9436	9436	HB4873 - 264 - LRB103 35886 RPS 65971 b
9437	9437	1 either:
9438	9438	2 (i) to be eligible for the reduced retirement age
9439	9439	3 specified in subsections (c) and (d) of this Section, the
9440	9440	4 eligibility for which is conditioned upon the member or
9441	9441	5 participant agreeing to the increase in employee
9442	9442	6 contributions for service annuities specified in
9443	9443	7 subsection (b) of Section 12-150; or
9444	9444	8 (ii) to not agree to item (i) of this subsection
9445	9445	9 (d-15), in which case the member or participant shall not
9446	9446	10 be eligible for the reduced retirement age specified in
9447	9447	11 subsections (c) and (d) of this Section and shall not be
9448	9448	12 subject to the increase in employee contributions for
9449	9449	13 service annuities specified in subsection (b) of Section
9450	9450	14 12-150.
9451	9451	15 The election provided for in this subsection shall be made
9452	9452	16 between January 1, 2022 and April 1, 2022. A person subject to
9453	9453	17 this subsection who makes the required election shall remain
9454	9454	18 bound by that election. A person subject to this subsection
9455	9455	19 who fails for any reason to make the required election within
9456	9456	20 the time specified in this subsection shall be deemed to have
9457	9457	21 made the election under item (ii).
9458	9458	22 (e) Any retirement annuity or supplemental annuity shall
9459	9459	23 be subject to annual increases on the January 1 occurring
9460	9460	24 either on or after the attainment of age 67 (age 65, with
9461	9461	25 respect to service under Article 12 that is subject to this
9462	9462	26 Section, for a member or participant under Article 12 who
9463	9463
9464	9464
9465	9465
9466	9466
9467	9467
9468	9468	HB4873 - 264 - LRB103 35886 RPS 65971 b
9469	9469
9470	9470
9471	9471	HB4873- 265 -LRB103 35886 RPS 65971 b HB4873 - 265 - LRB103 35886 RPS 65971 b
9472	9472	HB4873 - 265 - LRB103 35886 RPS 65971 b
9473	9473	1 first becomes a member or participant under Article 12 on or
9474	9474	2 after January 1, 2022 or who makes the election under item (i)
9475	9475	3 of subsection (d-15); and beginning on July 6, 2017 (the
9476	9476	4 effective date of Public Act 100-23), age 65 with respect to
9477	9477	5 service under Article 8 or Article 11 for eligible persons
9478	9478	6 who: (i) are subject to subsection (c-5) of this Section; or
9479	9479	7 (ii) made the election under item (i) of subsection (d-10) of
9480	9480	8 this Section) or the first anniversary of the annuity start
9481	9481	9 date, whichever is later. Each annual increase shall be
9482	9482	10 calculated at 3% or one-half the annual unadjusted percentage
9483	9483	11 increase (but not less than zero) in the consumer price
9484	9484	12 index-u for the 12 months ending with the September preceding
9485	9485	13 each November 1, whichever is less, of the originally granted
9486	9486	14 retirement annuity. If the annual unadjusted percentage change
9487	9487	15 in the consumer price index-u for the 12 months ending with the
9488	9488	16 September preceding each November 1 is zero or there is a
9489	9489	17 decrease, then the annuity shall not be increased.
9490	9490	18 For the purposes of Section 1-103.1 of this Code, the
9491	9491	19 changes made to this Section by Public Act 102-263 are
9492	9492	20 applicable without regard to whether the employee was in
9493	9493	21 active service on or after August 6, 2021 (the effective date
9494	9494	22 of Public Act 102-263).
9495	9495	23 For the purposes of Section 1-103.1 of this Code, the
9496	9496	24 changes made to this Section by Public Act 100-23 are
9497	9497	25 applicable without regard to whether the employee was in
9498	9498	26 active service on or after July 6, 2017 (the effective date of
9499	9499
9500	9500
9501	9501
9502	9502
9503	9503
9504	9504	HB4873 - 265 - LRB103 35886 RPS 65971 b
9505	9505
9506	9506
9507	9507	HB4873- 266 -LRB103 35886 RPS 65971 b HB4873 - 266 - LRB103 35886 RPS 65971 b
9508	9508	HB4873 - 266 - LRB103 35886 RPS 65971 b
9509	9509	1 Public Act 100-23).
9510	9510	2 (f) The initial survivor's or widow's annuity of an
9511	9511	3 otherwise eligible survivor or widow of a retired member or
9512	9512	4 participant who first became a member or participant on or
9513	9513	5 after January 1, 2011 shall be in the amount of 66 2/3% of the
9514	9514	6 retired member's or participant's retirement annuity at the
9515	9515	7 date of death. In the case of the death of a member or
9516	9516	8 participant who has not retired and who first became a member
9517	9517	9 or participant on or after January 1, 2011, eligibility for a
9518	9518	10 survivor's or widow's annuity shall be determined by the
9519	9519	11 applicable Article of this Code. The initial benefit shall be
9520	9520	12 66 2/3% of the earned annuity without a reduction due to age. A
9521	9521	13 child's annuity of an otherwise eligible child shall be in the
9522	9522	14 amount prescribed under each Article if applicable. Any
9523	9523	15 survivor's or widow's annuity shall be increased (1) on each
9524	9524	16 January 1 occurring on or after the commencement of the
9525	9525	17 annuity if the deceased member died while receiving a
9526	9526	18 retirement annuity or (2) in other cases, on each January 1
9527	9527	19 occurring after the first anniversary of the commencement of
9528	9528	20 the annuity. Each annual increase shall be calculated at 3% or
9529	9529	21 one-half the annual unadjusted percentage increase (but not
9530	9530	22 less than zero) in the consumer price index-u for the 12 months
9531	9531	23 ending with the September preceding each November 1, whichever
9532	9532	24 is less, of the originally granted survivor's annuity. If the
9533	9533	25 annual unadjusted percentage change in the consumer price
9534	9534	26 index-u for the 12 months ending with the September preceding
9535	9535
9536	9536
9537	9537
9538	9538
9539	9539
9540	9540	HB4873 - 266 - LRB103 35886 RPS 65971 b
9541	9541
9542	9542
9543	9543	HB4873- 267 -LRB103 35886 RPS 65971 b HB4873 - 267 - LRB103 35886 RPS 65971 b
9544	9544	HB4873 - 267 - LRB103 35886 RPS 65971 b
9545	9545	1 each November 1 is zero or there is a decrease, then the
9546	9546	2 annuity shall not be increased.
9547	9547	3 (g) The benefits in Section 14-110 apply if the person is a
9548	9548	4 fire fighter in the fire protection service of a department, a
9549	9549	5 security employee of the Department of Corrections or the
9550	9550	6 Department of Juvenile Justice, or a security employee of the
9551	9551	7 Department of Innovation and Technology, as those terms are
9552	9552	8 defined in subsection (b) and subsection (c) of Section
9553	9553	9 14-110. A person who meets the requirements of this Section is
9554	9554	10 entitled to an annuity calculated under the provisions of
9555	9555	11 Section 14-110, in lieu of the regular or minimum retirement
9556	9556	12 annuity, only if the person has withdrawn from service with
9557	9557	13 not less than 20 years of eligible creditable service and has
9558	9558	14 attained age 60, regardless of whether the attainment of age
9559	9559	15 60 occurs while the person is still in service.
9560	9560	16 (g-5) The benefits in Section 14-110 apply if the person
9561	9561	17 is a State policeman, investigator for the Secretary of State,
9562	9562	18 conservation police officer, investigator for the Department
9563	9563	19 of Revenue or the Illinois Gaming Board, investigator for the
9564	9564	20 Office of the Attorney General, Commerce Commission police
9565	9565	21 officer, or arson investigator, as those terms are defined in
9566	9566	22 subsection (b) and subsection (c) of Section 14-110. A person
9567	9567	23 who meets the requirements of this Section is entitled to an
9568	9568	24 annuity calculated under the provisions of Section 14-110, in
9569	9569	25 lieu of the regular or minimum retirement annuity, only if the
9570	9570	26 person has withdrawn from service with not less than 20 years
9571	9571
9572	9572
9573	9573
9574	9574
9575	9575
9576	9576	HB4873 - 267 - LRB103 35886 RPS 65971 b
9577	9577
9578	9578
9579	9579	HB4873- 268 -LRB103 35886 RPS 65971 b HB4873 - 268 - LRB103 35886 RPS 65971 b
9580	9580	HB4873 - 268 - LRB103 35886 RPS 65971 b
9581	9581	1 of eligible creditable service and has attained age 55,
9582	9582	2 regardless of whether the attainment of age 55 occurs while
9583	9583	3 the person is still in service.
9584	9584	4 (h) If a person who first becomes a member or a participant
9585	9585	5 of a retirement system or pension fund subject to this Section
9586	9586	6 on or after January 1, 2011 is receiving a retirement annuity
9587	9587	7 or retirement pension under that system or fund and becomes a
9588	9588	8 member or participant under any other system or fund created
9589	9589	9 by this Code and is employed on a full-time basis, except for
9590	9590	10 those members or participants exempted from the provisions of
9591	9591	11 this Section under subsection (a) of this Section, then the
9592	9592	12 person's retirement annuity or retirement pension under that
9593	9593	13 system or fund shall be suspended during that employment. Upon
9594	9594	14 termination of that employment, the person's retirement
9595	9595	15 annuity or retirement pension payments shall resume and be
9596	9596	16 recalculated if recalculation is provided for under the
9597	9597	17 applicable Article of this Code.
9598	9598	18 If a person who first becomes a member of a retirement
9599	9599	19 system or pension fund subject to this Section on or after
9600	9600	20 January 1, 2012 and is receiving a retirement annuity or
9601	9601	21 retirement pension under that system or fund and accepts on a
9602	9602	22 contractual basis a position to provide services to a
9603	9603	23 governmental entity from which he or she has retired, then
9604	9604	24 that person's annuity or retirement pension earned as an
9605	9605	25 active employee of the employer shall be suspended during that
9606	9606	26 contractual service. A person receiving an annuity or
9607	9607
9608	9608
9609	9609
9610	9610
9611	9611
9612	9612	HB4873 - 268 - LRB103 35886 RPS 65971 b
9613	9613
9614	9614
9615	9615	HB4873- 269 -LRB103 35886 RPS 65971 b HB4873 - 269 - LRB103 35886 RPS 65971 b
9616	9616	HB4873 - 269 - LRB103 35886 RPS 65971 b
9617	9617	1 retirement pension under this Code shall notify the pension
9618	9618	2 fund or retirement system from which he or she is receiving an
9619	9619	3 annuity or retirement pension, as well as his or her
9620	9620	4 contractual employer, of his or her retirement status before
9621	9621	5 accepting contractual employment. A person who fails to submit
9622	9622	6 such notification shall be guilty of a Class A misdemeanor and
9623	9623	7 required to pay a fine of $1,000. Upon termination of that
9624	9624	8 contractual employment, the person's retirement annuity or
9625	9625	9 retirement pension payments shall resume and, if appropriate,
9626	9626	10 be recalculated under the applicable provisions of this Code.
9627	9627	11 (i) (Blank).
9628	9628	12 (j) In the case of a conflict between the provisions of
9629	9629	13 this Section and any other provision of this Code, the
9630	9630	14 provisions of this Section shall control.
9631	9631	15 (Source: P.A. 101-610, eff. 1-1-20; 102-16, eff. 6-17-21;
9632	9632	16 102-210, eff. 1-1-22; 102-263, eff. 8-6-21; 102-719, eff.
9633	9633	17 5-6-22.)
9634	9634	18 (Text of Section from P.A. 102-813)
9635	9635	19 Sec. 1-160. Provisions applicable to new hires.
9636	9636	20 (a) The provisions of this Section apply to a person who,
9637	9637	21 on or after January 1, 2011, first becomes a member or a
9638	9638	22 participant under any reciprocal retirement system or pension
9639	9639	23 fund established under this Code, other than a retirement
9640	9640	24 system or pension fund established under Article 2, 3, 4, 5, 6,
9641	9641	25 7, 15, or 18 of this Code, notwithstanding any other provision
9642	9642
9643	9643
9644	9644
9645	9645
9646	9646
9647	9647	HB4873 - 269 - LRB103 35886 RPS 65971 b
9648	9648
9649	9649
9650	9650	HB4873- 270 -LRB103 35886 RPS 65971 b HB4873 - 270 - LRB103 35886 RPS 65971 b
9651	9651	HB4873 - 270 - LRB103 35886 RPS 65971 b
9652	9652	1 of this Code to the contrary, but do not apply to any
9653	9653	2 self-managed plan established under this Code or to any
9654	9654	3 participant of the retirement plan established under Section
9655	9655	4 22-101; except that this Section applies to a person who
9656	9656	5 elected to establish alternative credits by electing in
9657	9657	6 writing after January 1, 2011, but before August 8, 2011,
9658	9658	7 under Section 7-145.1 of this Code. Notwithstanding anything
9659	9659	8 to the contrary in this Section, for purposes of this Section,
9660	9660	9 a person who is a Tier 1 regular employee as defined in Section
9661	9661	10 7-109.4 of this Code or who participated in a retirement
9662	9662	11 system under Article 15 prior to January 1, 2011 shall be
9663	9663	12 deemed a person who first became a member or participant prior
9664	9664	13 to January 1, 2011 under any retirement system or pension fund
9665	9665	14 subject to this Section. The changes made to this Section by
9666	9666	15 Public Act 98-596 are a clarification of existing law and are
9667	9667	16 intended to be retroactive to January 1, 2011 (the effective
9668	9668	17 date of Public Act 96-889), notwithstanding the provisions of
9669	9669	18 Section 1-103.1 of this Code.
9670	9670	19 This Section does not apply to a person who first becomes a
9671	9671	20 noncovered employee under Article 14 on or after the
9672	9672	21 implementation date of the plan created under Section 1-161
9673	9673	22 for that Article, unless that person elects under subsection
9674	9674	23 (b) of Section 1-161 to instead receive the benefits provided
9675	9675	24 under this Section and the applicable provisions of that
9676	9676	25 Article.
9677	9677	26 This Section does not apply to a person who first becomes a
9678	9678
9679	9679
9680	9680
9681	9681
9682	9682
9683	9683	HB4873 - 270 - LRB103 35886 RPS 65971 b
9684	9684
9685	9685
9686	9686	HB4873- 271 -LRB103 35886 RPS 65971 b HB4873 - 271 - LRB103 35886 RPS 65971 b
9687	9687	HB4873 - 271 - LRB103 35886 RPS 65971 b
9688	9688	1 member or participant under Article 16 on or after the
9689	9689	2 implementation date of the plan created under Section 1-161
9690	9690	3 for that Article, unless that person elects under subsection
9691	9691	4 (b) of Section 1-161 to instead receive the benefits provided
9692	9692	5 under this Section and the applicable provisions of that
9693	9693	6 Article.
9694	9694	7 This Section does not apply to a person who elects under
9695	9695	8 subsection (c-5) of Section 1-161 to receive the benefits
9696	9696	9 under Section 1-161.
9697	9697	10 This Section does not apply to a person who first becomes a
9698	9698	11 member or participant of an affected pension fund on or after 6
9699	9699	12 months after the resolution or ordinance date, as defined in
9700	9700	13 Section 1-162, unless that person elects under subsection (c)
9701	9701	14 of Section 1-162 to receive the benefits provided under this
9702	9702	15 Section and the applicable provisions of the Article under
9703	9703	16 which he or she is a member or participant.
9704	9704	17 (b) "Final average salary" means, except as otherwise
9705	9705	18 provided in this subsection, the average monthly (or annual)
9706	9706	19 salary obtained by dividing the total salary or earnings
9707	9707	20 calculated under the Article applicable to the member or
9708	9708	21 participant during the 96 consecutive months (or 8 consecutive
9709	9709	22 years) of service within the last 120 months (or 10 years) of
9710	9710	23 service in which the total salary or earnings calculated under
9711	9711	24 the applicable Article was the highest by the number of months
9712	9712	25 (or years) of service in that period. For the purposes of a
9713	9713	26 person who first becomes a member or participant of any
9714	9714
9715	9715
9716	9716
9717	9717
9718	9718
9719	9719	HB4873 - 271 - LRB103 35886 RPS 65971 b
9720	9720
9721	9721
9722	9722	HB4873- 272 -LRB103 35886 RPS 65971 b HB4873 - 272 - LRB103 35886 RPS 65971 b
9723	9723	HB4873 - 272 - LRB103 35886 RPS 65971 b
9724	9724	1 retirement system or pension fund to which this Section
9725	9725	2 applies on or after January 1, 2011, in this Code, "final
9726	9726	3 average salary" shall be substituted for the following:
9727	9727	4 (1) (Blank).
9728	9728	5 (2) In Articles 8, 9, 10, 11, and 12, "highest average
9729	9729	6 annual salary for any 4 consecutive years within the last
9730	9730	7 10 years of service immediately preceding the date of
9731	9731	8 withdrawal".
9732	9732	9 (3) In Article 13, "average final salary".
9733	9733	10 (4) In Article 14, "final average compensation".
9734	9734	11 (5) In Article 17, "average salary".
9735	9735	12 (6) In Section 22-207, "wages or salary received by
9736	9736	13 him at the date of retirement or discharge".
9737	9737	14 A member of the Teachers' Retirement System of the State
9738	9738	15 of Illinois who retires on or after June 1, 2021 and for whom
9739	9739	16 the 2020-2021 school year is used in the calculation of the
9740	9740	17 member's final average salary shall use the higher of the
9741	9741	18 following for the purpose of determining the member's final
9742	9742	19 average salary:
9743	9743	20 (A) the amount otherwise calculated under the first
9744	9744	21 paragraph of this subsection; or
9745	9745	22 (B) an amount calculated by the Teachers' Retirement
9746	9746	23 System of the State of Illinois using the average of the
9747	9747	24 monthly (or annual) salary obtained by dividing the total
9748	9748	25 salary or earnings calculated under Article 16 applicable
9749	9749	26 to the member or participant during the 96 months (or 8
9750	9750
9751	9751
9752	9752
9753	9753
9754	9754
9755	9755	HB4873 - 272 - LRB103 35886 RPS 65971 b
9756	9756
9757	9757
9758	9758	HB4873- 273 -LRB103 35886 RPS 65971 b HB4873 - 273 - LRB103 35886 RPS 65971 b
9759	9759	HB4873 - 273 - LRB103 35886 RPS 65971 b
9760	9760	1 years) of service within the last 120 months (or 10 years)
9761	9761	2 of service in which the total salary or earnings
9762	9762	3 calculated under the Article was the highest by the number
9763	9763	4 of months (or years) of service in that period.
9764	9764	5 (b-5) Beginning on January 1, 2011, for all purposes under
9765	9765	6 this Code (including without limitation the calculation of
9766	9766	7 benefits and employee contributions), the annual earnings,
9767	9767	8 salary, or wages (based on the plan year) of a member or
9768	9768	9 participant to whom this Section applies shall not exceed
9769	9769	10 $106,800; however, that amount shall annually thereafter be
9770	9770	11 increased by the lesser of (i) 3% of that amount, including all
9771	9771	12 previous adjustments, or (ii) one-half the annual unadjusted
9772	9772	13 percentage increase (but not less than zero) in the consumer
9773	9773	14 price index-u for the 12 months ending with the September
9774	9774	15 preceding each November 1, including all previous adjustments.
9775	9775	16 For the purposes of this Section, "consumer price index-u"
9776	9776	17 means the index published by the Bureau of Labor Statistics of
9777	9777	18 the United States Department of Labor that measures the
9778	9778	19 average change in prices of goods and services purchased by
9779	9779	20 all urban consumers, United States city average, all items,
9780	9780	21 1982-84 = 100. The new amount resulting from each annual
9781	9781	22 adjustment shall be determined by the Public Pension Division
9782	9782	23 of the Department of Insurance and made available to the
9783	9783	24 boards of the retirement systems and pension funds by November
9784	9784	25 1 of each year.
9785	9785	26 (b-10) Beginning on January 1, 2024, for all purposes
9786	9786
9787	9787
9788	9788
9789	9789
9790	9790
9791	9791	HB4873 - 273 - LRB103 35886 RPS 65971 b
9792	9792
9793	9793
9794	9794	HB4873- 274 -LRB103 35886 RPS 65971 b HB4873 - 274 - LRB103 35886 RPS 65971 b
9795	9795	HB4873 - 274 - LRB103 35886 RPS 65971 b
9796	9796	1 under this Code (including, without limitation, the
9797	9797	2 calculation of benefits and employee contributions), the
9798	9798	3 annual earnings, salary, or wages (based on the plan year) of a
9799	9799	4 member or participant under Article 9 to whom this Section
9800	9800	5 applies shall include an annual earnings, salary, or wage cap
9801	9801	6 that tracks the Social Security wage base. Maximum annual
9802	9802	7 earnings, wages, or salary shall be the annual contribution
9803	9803	8 and benefit base established for the applicable year by the
9804	9804	9 Commissioner of the Social Security Administration under the
9805	9805	10 federal Social Security Act.
9806	9806	11 However, in no event shall the annual earnings, salary, or
9807	9807	12 wages for the purposes of this Article and Article 9 exceed any
9808	9808	13 limitation imposed on annual earnings, salary, or wages under
9809	9809	14 Section 1-117. Under no circumstances shall the maximum amount
9810	9810	15 of annual earnings, salary, or wages be greater than the
9811	9811	16 amount set forth in this subsection (b-10) as a result of
9812	9812	17 reciprocal service or any provisions regarding reciprocal
9813	9813	18 services, nor shall the Fund under Article 9 be required to pay
9814	9814	19 any refund as a result of the application of this maximum
9815	9815	20 annual earnings, salary, and wage cap.
9816	9816	21 Nothing in this subsection (b-10) shall cause or otherwise
9817	9817	22 result in any retroactive adjustment of any employee
9818	9818	23 contributions. Nothing in this subsection (b-10) shall cause
9819	9819	24 or otherwise result in any retroactive adjustment of
9820	9820	25 disability or other payments made between January 1, 2011 and
9821	9821	26 January 1, 2024.
9822	9822
9823	9823
9824	9824
9825	9825
9826	9826
9827	9827	HB4873 - 274 - LRB103 35886 RPS 65971 b
9828	9828
9829	9829
9830	9830	HB4873- 275 -LRB103 35886 RPS 65971 b HB4873 - 275 - LRB103 35886 RPS 65971 b
9831	9831	HB4873 - 275 - LRB103 35886 RPS 65971 b
9832	9832	1 (c) A member or participant is entitled to a retirement
9833	9833	2 annuity upon written application if he or she has attained age
9834	9834	3 67 (age 65, with respect to service under Article 12 that is
9835	9835	4 subject to this Section, for a member or participant under
9836	9836	5 Article 12 who first becomes a member or participant under
9837	9837	6 Article 12 on or after January 1, 2022 or who makes the
9838	9838	7 election under item (i) of subsection (d-15) of this Section)
9839	9839	8 and has at least 10 years of service credit and is otherwise
9840	9840	9 eligible under the requirements of the applicable Article.
9841	9841	10 A member or participant who has attained age 62 (age 60,
9842	9842	11 with respect to service under Article 12 that is subject to
9843	9843	12 this Section, for a member or participant under Article 12 who
9844	9844	13 first becomes a member or participant under Article 12 on or
9845	9845	14 after January 1, 2022 or who makes the election under item (i)
9846	9846	15 of subsection (d-15) of this Section) and has at least 10 years
9847	9847	16 of service credit and is otherwise eligible under the
9848	9848	17 requirements of the applicable Article may elect to receive
9849	9849	18 the lower retirement annuity provided in subsection (d) of
9850	9850	19 this Section.
9851	9851	20 (c-5) A person who first becomes a member or a participant
9852	9852	21 subject to this Section on or after July 6, 2017 (the effective
9853	9853	22 date of Public Act 100-23), notwithstanding any other
9854	9854	23 provision of this Code to the contrary, is entitled to a
9855	9855	24 retirement annuity under Article 8 or Article 11 upon written
9856	9856	25 application if he or she has attained age 65 and has at least
9857	9857	26 10 years of service credit and is otherwise eligible under the
9858	9858
9859	9859
9860	9860
9861	9861
9862	9862
9863	9863	HB4873 - 275 - LRB103 35886 RPS 65971 b
9864	9864
9865	9865
9866	9866	HB4873- 276 -LRB103 35886 RPS 65971 b HB4873 - 276 - LRB103 35886 RPS 65971 b
9867	9867	HB4873 - 276 - LRB103 35886 RPS 65971 b
9868	9868	1 requirements of Article 8 or Article 11 of this Code,
9869	9869	2 whichever is applicable.
9870	9870	3 (d) The retirement annuity of a member or participant who
9871	9871	4 is retiring after attaining age 62 (age 60, with respect to
9872	9872	5 service under Article 12 that is subject to this Section, for a
9873	9873	6 member or participant under Article 12 who first becomes a
9874	9874	7 member or participant under Article 12 on or after January 1,
9875	9875	8 2022 or who makes the election under item (i) of subsection
9876	9876	9 (d-15) of this Section) with at least 10 years of service
9877	9877	10 credit shall be reduced by one-half of 1% for each full month
9878	9878	11 that the member's age is under age 67 (age 65, with respect to
9879	9879	12 service under Article 12 that is subject to this Section, for a
9880	9880	13 member or participant under Article 12 who first becomes a
9881	9881	14 member or participant under Article 12 on or after January 1,
9882	9882	15 2022 or who makes the election under item (i) of subsection
9883	9883	16 (d-15) of this Section).
9884	9884	17 (d-5) The retirement annuity payable under Article 8 or
9885	9885	18 Article 11 to an eligible person subject to subsection (c-5)
9886	9886	19 of this Section who is retiring at age 60 with at least 10
9887	9887	20 years of service credit shall be reduced by one-half of 1% for
9888	9888	21 each full month that the member's age is under age 65.
9889	9889	22 (d-10) Each person who first became a member or
9890	9890	23 participant under Article 8 or Article 11 of this Code on or
9891	9891	24 after January 1, 2011 and prior to July 6, 2017 (the effective
9892	9892	25 date of Public Act 100-23) shall make an irrevocable election
9893	9893	26 either:
9894	9894
9895	9895
9896	9896
9897	9897
9898	9898
9899	9899	HB4873 - 276 - LRB103 35886 RPS 65971 b
9900	9900
9901	9901
9902	9902	HB4873- 277 -LRB103 35886 RPS 65971 b HB4873 - 277 - LRB103 35886 RPS 65971 b
9903	9903	HB4873 - 277 - LRB103 35886 RPS 65971 b
9904	9904	1 (i) to be eligible for the reduced retirement age
9905	9905	2 provided in subsections (c-5) and (d-5) of this Section,
9906	9906	3 the eligibility for which is conditioned upon the member
9907	9907	4 or participant agreeing to the increases in employee
9908	9908	5 contributions for age and service annuities provided in
9909	9909	6 subsection (a-5) of Section 8-174 of this Code (for
9910	9910	7 service under Article 8) or subsection (a-5) of Section
9911	9911	8 11-170 of this Code (for service under Article 11); or
9912	9912	9 (ii) to not agree to item (i) of this subsection
9913	9913	10 (d-10), in which case the member or participant shall
9914	9914	11 continue to be subject to the retirement age provisions in
9915	9915	12 subsections (c) and (d) of this Section and the employee
9916	9916	13 contributions for age and service annuity as provided in
9917	9917	14 subsection (a) of Section 8-174 of this Code (for service
9918	9918	15 under Article 8) or subsection (a) of Section 11-170 of
9919	9919	16 this Code (for service under Article 11).
9920	9920	17 The election provided for in this subsection shall be made
9921	9921	18 between October 1, 2017 and November 15, 2017. A person
9922	9922	19 subject to this subsection who makes the required election
9923	9923	20 shall remain bound by that election. A person subject to this
9924	9924	21 subsection who fails for any reason to make the required
9925	9925	22 election within the time specified in this subsection shall be
9926	9926	23 deemed to have made the election under item (ii).
9927	9927	24 (d-15) Each person who first becomes a member or
9928	9928	25 participant under Article 12 on or after January 1, 2011 and
9929	9929	26 prior to January 1, 2022 shall make an irrevocable election
9930	9930
9931	9931
9932	9932
9933	9933
9934	9934
9935	9935	HB4873 - 277 - LRB103 35886 RPS 65971 b
9936	9936
9937	9937
9938	9938	HB4873- 278 -LRB103 35886 RPS 65971 b HB4873 - 278 - LRB103 35886 RPS 65971 b
9939	9939	HB4873 - 278 - LRB103 35886 RPS 65971 b
9940	9940	1 either:
9941	9941	2 (i) to be eligible for the reduced retirement age
9942	9942	3 specified in subsections (c) and (d) of this Section, the
9943	9943	4 eligibility for which is conditioned upon the member or
9944	9944	5 participant agreeing to the increase in employee
9945	9945	6 contributions for service annuities specified in
9946	9946	7 subsection (b) of Section 12-150; or
9947	9947	8 (ii) to not agree to item (i) of this subsection
9948	9948	9 (d-15), in which case the member or participant shall not
9949	9949	10 be eligible for the reduced retirement age specified in
9950	9950	11 subsections (c) and (d) of this Section and shall not be
9951	9951	12 subject to the increase in employee contributions for
9952	9952	13 service annuities specified in subsection (b) of Section
9953	9953	14 12-150.
9954	9954	15 The election provided for in this subsection shall be made
9955	9955	16 between January 1, 2022 and April 1, 2022. A person subject to
9956	9956	17 this subsection who makes the required election shall remain
9957	9957	18 bound by that election. A person subject to this subsection
9958	9958	19 who fails for any reason to make the required election within
9959	9959	20 the time specified in this subsection shall be deemed to have
9960	9960	21 made the election under item (ii).
9961	9961	22 (e) Any retirement annuity or supplemental annuity shall
9962	9962	23 be subject to annual increases on the January 1 occurring
9963	9963	24 either on or after the attainment of age 67 (age 65, with
9964	9964	25 respect to service under Article 12 that is subject to this
9965	9965	26 Section, for a member or participant under Article 12 who
9966	9966
9967	9967
9968	9968
9969	9969
9970	9970
9971	9971	HB4873 - 278 - LRB103 35886 RPS 65971 b
9972	9972
9973	9973
9974	9974	HB4873- 279 -LRB103 35886 RPS 65971 b HB4873 - 279 - LRB103 35886 RPS 65971 b
9975	9975	HB4873 - 279 - LRB103 35886 RPS 65971 b
9976	9976	1 first becomes a member or participant under Article 12 on or
9977	9977	2 after January 1, 2022 or who makes the election under item (i)
9978	9978	3 of subsection (d-15); and beginning on July 6, 2017 (the
9979	9979	4 effective date of Public Act 100-23), age 65 with respect to
9980	9980	5 service under Article 8 or Article 11 for eligible persons
9981	9981	6 who: (i) are subject to subsection (c-5) of this Section; or
9982	9982	7 (ii) made the election under item (i) of subsection (d-10) of
9983	9983	8 this Section) or the first anniversary of the annuity start
9984	9984	9 date, whichever is later. Each annual increase shall be
9985	9985	10 calculated at 3% or one-half the annual unadjusted percentage
9986	9986	11 increase (but not less than zero) in the consumer price
9987	9987	12 index-u for the 12 months ending with the September preceding
9988	9988	13 each November 1, whichever is less, of the originally granted
9989	9989	14 retirement annuity. If the annual unadjusted percentage change
9990	9990	15 in the consumer price index-u for the 12 months ending with the
9991	9991	16 September preceding each November 1 is zero or there is a
9992	9992	17 decrease, then the annuity shall not be increased.
9993	9993	18 For the purposes of Section 1-103.1 of this Code, the
9994	9994	19 changes made to this Section by Public Act 102-263 are
9995	9995	20 applicable without regard to whether the employee was in
9996	9996	21 active service on or after August 6, 2021 (the effective date
9997	9997	22 of Public Act 102-263).
9998	9998	23 For the purposes of Section 1-103.1 of this Code, the
9999	9999	24 changes made to this Section by Public Act 100-23 are
10000	10000	25 applicable without regard to whether the employee was in
10001	10001	26 active service on or after July 6, 2017 (the effective date of
10002	10002
10003	10003
10004	10004
10005	10005
10006	10006
10007	10007	HB4873 - 279 - LRB103 35886 RPS 65971 b
10008	10008
10009	10009
10010	10010	HB4873- 280 -LRB103 35886 RPS 65971 b HB4873 - 280 - LRB103 35886 RPS 65971 b
10011	10011	HB4873 - 280 - LRB103 35886 RPS 65971 b
10012	10012	1 Public Act 100-23).
10013	10013	2 (f) The initial survivor's or widow's annuity of an
10014	10014	3 otherwise eligible survivor or widow of a retired member or
10015	10015	4 participant who first became a member or participant on or
10016	10016	5 after January 1, 2011 shall be in the amount of 66 2/3% of the
10017	10017	6 retired member's or participant's retirement annuity at the
10018	10018	7 date of death. In the case of the death of a member or
10019	10019	8 participant who has not retired and who first became a member
10020	10020	9 or participant on or after January 1, 2011, eligibility for a
10021	10021	10 survivor's or widow's annuity shall be determined by the
10022	10022	11 applicable Article of this Code. The initial benefit shall be
10023	10023	12 66 2/3% of the earned annuity without a reduction due to age. A
10024	10024	13 child's annuity of an otherwise eligible child shall be in the
10025	10025	14 amount prescribed under each Article if applicable. Any
10026	10026	15 survivor's or widow's annuity shall be increased (1) on each
10027	10027	16 January 1 occurring on or after the commencement of the
10028	10028	17 annuity if the deceased member died while receiving a
10029	10029	18 retirement annuity or (2) in other cases, on each January 1
10030	10030	19 occurring after the first anniversary of the commencement of
10031	10031	20 the annuity. Each annual increase shall be calculated at 3% or
10032	10032	21 one-half the annual unadjusted percentage increase (but not
10033	10033	22 less than zero) in the consumer price index-u for the 12 months
10034	10034	23 ending with the September preceding each November 1, whichever
10035	10035	24 is less, of the originally granted survivor's annuity. If the
10036	10036	25 annual unadjusted percentage change in the consumer price
10037	10037	26 index-u for the 12 months ending with the September preceding
10038	10038
10039	10039
10040	10040
10041	10041
10042	10042
10043	10043	HB4873 - 280 - LRB103 35886 RPS 65971 b
10044	10044
10045	10045
10046	10046	HB4873- 281 -LRB103 35886 RPS 65971 b HB4873 - 281 - LRB103 35886 RPS 65971 b
10047	10047	HB4873 - 281 - LRB103 35886 RPS 65971 b
10048	10048	1 each November 1 is zero or there is a decrease, then the
10049	10049	2 annuity shall not be increased.
10050	10050	3 (g) The benefits in Section 14-110 apply only if the
10051	10051	4 person is a State policeman, a fire fighter in the fire
10052	10052	5 protection service of a department, a conservation police
10053	10053	6 officer, an investigator for the Secretary of State, an arson
10054	10054	7 investigator, a Commerce Commission police officer,
10055	10055	8 investigator for the Department of Revenue or the Illinois
10056	10056	9 Gaming Board, a security employee of the Department of
10057	10057	10 Corrections or the Department of Juvenile Justice, or a
10058	10058	11 security employee of the Department of Innovation and
10059	10059	12 Technology, as those terms are defined in subsection (b) and
10060	10060	13 subsection (c) of Section 14-110. A person who meets the
10061	10061	14 requirements of this Section is entitled to an annuity
10062	10062	15 calculated under the provisions of Section 14-110, in lieu of
10063	10063	16 the regular or minimum retirement annuity, only if the person
10064	10064	17 has withdrawn from service with not less than 20 years of
10065	10065	18 eligible creditable service and has attained age 60,
10066	10066	19 regardless of whether the attainment of age 60 occurs while
10067	10067	20 the person is still in service.
10068	10068	21 (h) If a person who first becomes a member or a participant
10069	10069	22 of a retirement system or pension fund subject to this Section
10070	10070	23 on or after January 1, 2011 is receiving a retirement annuity
10071	10071	24 or retirement pension under that system or fund and becomes a
10072	10072	25 member or participant under any other system or fund created
10073	10073	26 by this Code and is employed on a full-time basis, except for
10074	10074
10075	10075
10076	10076
10077	10077
10078	10078
10079	10079	HB4873 - 281 - LRB103 35886 RPS 65971 b
10080	10080
10081	10081
10082	10082	HB4873- 282 -LRB103 35886 RPS 65971 b HB4873 - 282 - LRB103 35886 RPS 65971 b
10083	10083	HB4873 - 282 - LRB103 35886 RPS 65971 b
10084	10084	1 those members or participants exempted from the provisions of
10085	10085	2 this Section under subsection (a) of this Section, then the
10086	10086	3 person's retirement annuity or retirement pension under that
10087	10087	4 system or fund shall be suspended during that employment. Upon
10088	10088	5 termination of that employment, the person's retirement
10089	10089	6 annuity or retirement pension payments shall resume and be
10090	10090	7 recalculated if recalculation is provided for under the
10091	10091	8 applicable Article of this Code.
10092	10092	9 If a person who first becomes a member of a retirement
10093	10093	10 system or pension fund subject to this Section on or after
10094	10094	11 January 1, 2012 and is receiving a retirement annuity or
10095	10095	12 retirement pension under that system or fund and accepts on a
10096	10096	13 contractual basis a position to provide services to a
10097	10097	14 governmental entity from which he or she has retired, then
10098	10098	15 that person's annuity or retirement pension earned as an
10099	10099	16 active employee of the employer shall be suspended during that
10100	10100	17 contractual service. A person receiving an annuity or
10101	10101	18 retirement pension under this Code shall notify the pension
10102	10102	19 fund or retirement system from which he or she is receiving an
10103	10103	20 annuity or retirement pension, as well as his or her
10104	10104	21 contractual employer, of his or her retirement status before
10105	10105	22 accepting contractual employment. A person who fails to submit
10106	10106	23 such notification shall be guilty of a Class A misdemeanor and
10107	10107	24 required to pay a fine of $1,000. Upon termination of that
10108	10108	25 contractual employment, the person's retirement annuity or
10109	10109	26 retirement pension payments shall resume and, if appropriate,
10110	10110
10111	10111
10112	10112
10113	10113
10114	10114
10115	10115	HB4873 - 282 - LRB103 35886 RPS 65971 b
10116	10116
10117	10117
10118	10118	HB4873- 283 -LRB103 35886 RPS 65971 b HB4873 - 283 - LRB103 35886 RPS 65971 b
10119	10119	HB4873 - 283 - LRB103 35886 RPS 65971 b
10120	10120	1 be recalculated under the applicable provisions of this Code.
10121	10121	2 (i) (Blank).
10122	10122	3 (j) In the case of a conflict between the provisions of
10123	10123	4 this Section and any other provision of this Code, the
10124	10124	5 provisions of this Section shall control.
10125	10125	6 (Source: P.A. 101-610, eff. 1-1-20; 102-16, eff. 6-17-21;
10126	10126	7 102-210, eff. 1-1-22; 102-263, eff. 8-6-21; 102-813, eff.
10127	10127	8 5-13-22.)
10128	10128	9 (Text of Section from P.A. 102-956)
10129	10129	10 Sec. 1-160. Provisions applicable to new hires.
10130	10130	11 (a) The provisions of this Section apply to a person who,
10131	10131	12 on or after January 1, 2011, first becomes a member or a
10132	10132	13 participant under any reciprocal retirement system or pension
10133	10133	14 fund established under this Code, other than a retirement
10134	10134	15 system or pension fund established under Article 2, 3, 4, 5, 6,
10135	10135	16 7, 15, or 18 of this Code, notwithstanding any other provision
10136	10136	17 of this Code to the contrary, but do not apply to any
10137	10137	18 self-managed plan established under this Code or to any
10138	10138	19 participant of the retirement plan established under Section
10139	10139	20 22-101; except that this Section applies to a person who
10140	10140	21 elected to establish alternative credits by electing in
10141	10141	22 writing after January 1, 2011, but before August 8, 2011,
10142	10142	23 under Section 7-145.1 of this Code. Notwithstanding anything
10143	10143	24 to the contrary in this Section, for purposes of this Section,
10144	10144	25 a person who is a Tier 1 regular employee as defined in Section
10145	10145
10146	10146
10147	10147
10148	10148
10149	10149
10150	10150	HB4873 - 283 - LRB103 35886 RPS 65971 b
10151	10151
10152	10152
10153	10153	HB4873- 284 -LRB103 35886 RPS 65971 b HB4873 - 284 - LRB103 35886 RPS 65971 b
10154	10154	HB4873 - 284 - LRB103 35886 RPS 65971 b
10155	10155	1 7-109.4 of this Code or who participated in a retirement
10156	10156	2 system under Article 15 prior to January 1, 2011 shall be
10157	10157	3 deemed a person who first became a member or participant prior
10158	10158	4 to January 1, 2011 under any retirement system or pension fund
10159	10159	5 subject to this Section. The changes made to this Section by
10160	10160	6 Public Act 98-596 are a clarification of existing law and are
10161	10161	7 intended to be retroactive to January 1, 2011 (the effective
10162	10162	8 date of Public Act 96-889), notwithstanding the provisions of
10163	10163	9 Section 1-103.1 of this Code.
10164	10164	10 This Section does not apply to a person who first becomes a
10165	10165	11 noncovered employee under Article 14 on or after the
10166	10166	12 implementation date of the plan created under Section 1-161
10167	10167	13 for that Article, unless that person elects under subsection
10168	10168	14 (b) of Section 1-161 to instead receive the benefits provided
10169	10169	15 under this Section and the applicable provisions of that
10170	10170	16 Article.
10171	10171	17 This Section does not apply to a person who first becomes a
10172	10172	18 member or participant under Article 16 on or after the
10173	10173	19 implementation date of the plan created under Section 1-161
10174	10174	20 for that Article, unless that person elects under subsection
10175	10175	21 (b) of Section 1-161 to instead receive the benefits provided
10176	10176	22 under this Section and the applicable provisions of that
10177	10177	23 Article.
10178	10178	24 This Section does not apply to a person who elects under
10179	10179	25 subsection (c-5) of Section 1-161 to receive the benefits
10180	10180	26 under Section 1-161.
10181	10181
10182	10182
10183	10183
10184	10184
10185	10185
10186	10186	HB4873 - 284 - LRB103 35886 RPS 65971 b
10187	10187
10188	10188
10189	10189	HB4873- 285 -LRB103 35886 RPS 65971 b HB4873 - 285 - LRB103 35886 RPS 65971 b
10190	10190	HB4873 - 285 - LRB103 35886 RPS 65971 b
10191	10191	1 This Section does not apply to a person who first becomes a
10192	10192	2 member or participant of an affected pension fund on or after 6
10193	10193	3 months after the resolution or ordinance date, as defined in
10194	10194	4 Section 1-162, unless that person elects under subsection (c)
10195	10195	5 of Section 1-162 to receive the benefits provided under this
10196	10196	6 Section and the applicable provisions of the Article under
10197	10197	7 which he or she is a member or participant.
10198	10198	8 (b) "Final average salary" means, except as otherwise
10199	10199	9 provided in this subsection, the average monthly (or annual)
10200	10200	10 salary obtained by dividing the total salary or earnings
10201	10201	11 calculated under the Article applicable to the member or
10202	10202	12 participant during the 96 consecutive months (or 8 consecutive
10203	10203	13 years) of service within the last 120 months (or 10 years) of
10204	10204	14 service in which the total salary or earnings calculated under
10205	10205	15 the applicable Article was the highest by the number of months
10206	10206	16 (or years) of service in that period. For the purposes of a
10207	10207	17 person who first becomes a member or participant of any
10208	10208	18 retirement system or pension fund to which this Section
10209	10209	19 applies on or after January 1, 2011, in this Code, "final
10210	10210	20 average salary" shall be substituted for the following:
10211	10211	21 (1) (Blank).
10212	10212	22 (2) In Articles 8, 9, 10, 11, and 12, "highest average
10213	10213	23 annual salary for any 4 consecutive years within the last
10214	10214	24 10 years of service immediately preceding the date of
10215	10215	25 withdrawal".
10216	10216	26 (3) In Article 13, "average final salary".
10217	10217
10218	10218
10219	10219
10220	10220
10221	10221
10222	10222	HB4873 - 285 - LRB103 35886 RPS 65971 b
10223	10223
10224	10224
10225	10225	HB4873- 286 -LRB103 35886 RPS 65971 b HB4873 - 286 - LRB103 35886 RPS 65971 b
10226	10226	HB4873 - 286 - LRB103 35886 RPS 65971 b
10227	10227	1 (4) In Article 14, "final average compensation".
10228	10228	2 (5) In Article 17, "average salary".
10229	10229	3 (6) In Section 22-207, "wages or salary received by
10230	10230	4 him at the date of retirement or discharge".
10231	10231	5 A member of the Teachers' Retirement System of the State
10232	10232	6 of Illinois who retires on or after June 1, 2021 and for whom
10233	10233	7 the 2020-2021 school year is used in the calculation of the
10234	10234	8 member's final average salary shall use the higher of the
10235	10235	9 following for the purpose of determining the member's final
10236	10236	10 average salary:
10237	10237	11 (A) the amount otherwise calculated under the first
10238	10238	12 paragraph of this subsection; or
10239	10239	13 (B) an amount calculated by the Teachers' Retirement
10240	10240	14 System of the State of Illinois using the average of the
10241	10241	15 monthly (or annual) salary obtained by dividing the total
10242	10242	16 salary or earnings calculated under Article 16 applicable
10243	10243	17 to the member or participant during the 96 months (or 8
10244	10244	18 years) of service within the last 120 months (or 10 years)
10245	10245	19 of service in which the total salary or earnings
10246	10246	20 calculated under the Article was the highest by the number
10247	10247	21 of months (or years) of service in that period.
10248	10248	22 (b-5) Beginning on January 1, 2011, for all purposes under
10249	10249	23 this Code (including without limitation the calculation of
10250	10250	24 benefits and employee contributions), the annual earnings,
10251	10251	25 salary, or wages (based on the plan year) of a member or
10252	10252	26 participant to whom this Section applies shall not exceed
10253	10253
10254	10254
10255	10255
10256	10256
10257	10257
10258	10258	HB4873 - 286 - LRB103 35886 RPS 65971 b
10259	10259
10260	10260
10261	10261	HB4873- 287 -LRB103 35886 RPS 65971 b HB4873 - 287 - LRB103 35886 RPS 65971 b
10262	10262	HB4873 - 287 - LRB103 35886 RPS 65971 b
10263	10263	1 $106,800; however, that amount shall annually thereafter be
10264	10264	2 increased by the lesser of (i) 3% of that amount, including all
10265	10265	3 previous adjustments, or (ii) one-half the annual unadjusted
10266	10266	4 percentage increase (but not less than zero) in the consumer
10267	10267	5 price index-u for the 12 months ending with the September
10268	10268	6 preceding each November 1, including all previous adjustments.
10269	10269	7 For the purposes of this Section, "consumer price index-u"
10270	10270	8 means the index published by the Bureau of Labor Statistics of
10271	10271	9 the United States Department of Labor that measures the
10272	10272	10 average change in prices of goods and services purchased by
10273	10273	11 all urban consumers, United States city average, all items,
10274	10274	12 1982-84 = 100. The new amount resulting from each annual
10275	10275	13 adjustment shall be determined by the Public Pension Division
10276	10276	14 of the Department of Insurance and made available to the
10277	10277	15 boards of the retirement systems and pension funds by November
10278	10278	16 1 of each year.
10279	10279	17 (b-10) Beginning on January 1, 2024, for all purposes
10280	10280	18 under this Code (including, without limitation, the
10281	10281	19 calculation of benefits and employee contributions), the
10282	10282	20 annual earnings, salary, or wages (based on the plan year) of a
10283	10283	21 member or participant under Article 9 to whom this Section
10284	10284	22 applies shall include an annual earnings, salary, or wage cap
10285	10285	23 that tracks the Social Security wage base. Maximum annual
10286	10286	24 earnings, wages, or salary shall be the annual contribution
10287	10287	25 and benefit base established for the applicable year by the
10288	10288	26 Commissioner of the Social Security Administration under the
10289	10289
10290	10290
10291	10291
10292	10292
10293	10293
10294	10294	HB4873 - 287 - LRB103 35886 RPS 65971 b
10295	10295
10296	10296
10297	10297	HB4873- 288 -LRB103 35886 RPS 65971 b HB4873 - 288 - LRB103 35886 RPS 65971 b
10298	10298	HB4873 - 288 - LRB103 35886 RPS 65971 b
10299	10299	1 federal Social Security Act.
10300	10300	2 However, in no event shall the annual earnings, salary, or
10301	10301	3 wages for the purposes of this Article and Article 9 exceed any
10302	10302	4 limitation imposed on annual earnings, salary, or wages under
10303	10303	5 Section 1-117. Under no circumstances shall the maximum amount
10304	10304	6 of annual earnings, salary, or wages be greater than the
10305	10305	7 amount set forth in this subsection (b-10) as a result of
10306	10306	8 reciprocal service or any provisions regarding reciprocal
10307	10307	9 services, nor shall the Fund under Article 9 be required to pay
10308	10308	10 any refund as a result of the application of this maximum
10309	10309	11 annual earnings, salary, and wage cap.
10310	10310	12 Nothing in this subsection (b-10) shall cause or otherwise
10311	10311	13 result in any retroactive adjustment of any employee
10312	10312	14 contributions. Nothing in this subsection (b-10) shall cause
10313	10313	15 or otherwise result in any retroactive adjustment of
10314	10314	16 disability or other payments made between January 1, 2011 and
10315	10315	17 January 1, 2024.
10316	10316	18 (c) A member or participant is entitled to a retirement
10317	10317	19 annuity upon written application if he or she has attained age
10318	10318	20 67 (age 65, with respect to service under Article 12 that is
10319	10319	21 subject to this Section, for a member or participant under
10320	10320	22 Article 12 who first becomes a member or participant under
10321	10321	23 Article 12 on or after January 1, 2022 or who makes the
10322	10322	24 election under item (i) of subsection (d-15) of this Section)
10323	10323	25 and has at least 10 years of service credit and is otherwise
10324	10324	26 eligible under the requirements of the applicable Article.
10325	10325
10326	10326
10327	10327
10328	10328
10329	10329
10330	10330	HB4873 - 288 - LRB103 35886 RPS 65971 b
10331	10331
10332	10332
10333	10333	HB4873- 289 -LRB103 35886 RPS 65971 b HB4873 - 289 - LRB103 35886 RPS 65971 b
10334	10334	HB4873 - 289 - LRB103 35886 RPS 65971 b
10335	10335	1 A member or participant who has attained age 62 (age 60,
10336	10336	2 with respect to service under Article 12 that is subject to
10337	10337	3 this Section, for a member or participant under Article 12 who
10338	10338	4 first becomes a member or participant under Article 12 on or
10339	10339	5 after January 1, 2022 or who makes the election under item (i)
10340	10340	6 of subsection (d-15) of this Section) and has at least 10 years
10341	10341	7 of service credit and is otherwise eligible under the
10342	10342	8 requirements of the applicable Article may elect to receive
10343	10343	9 the lower retirement annuity provided in subsection (d) of
10344	10344	10 this Section.
10345	10345	11 (c-5) A person who first becomes a member or a participant
10346	10346	12 subject to this Section on or after July 6, 2017 (the effective
10347	10347	13 date of Public Act 100-23), notwithstanding any other
10348	10348	14 provision of this Code to the contrary, is entitled to a
10349	10349	15 retirement annuity under Article 8 or Article 11 upon written
10350	10350	16 application if he or she has attained age 65 and has at least
10351	10351	17 10 years of service credit and is otherwise eligible under the
10352	10352	18 requirements of Article 8 or Article 11 of this Code,
10353	10353	19 whichever is applicable.
10354	10354	20 (d) The retirement annuity of a member or participant who
10355	10355	21 is retiring after attaining age 62 (age 60, with respect to
10356	10356	22 service under Article 12 that is subject to this Section, for a
10357	10357	23 member or participant under Article 12 who first becomes a
10358	10358	24 member or participant under Article 12 on or after January 1,
10359	10359	25 2022 or who makes the election under item (i) of subsection
10360	10360	26 (d-15) of this Section) with at least 10 years of service
10361	10361
10362	10362
10363	10363
10364	10364
10365	10365
10366	10366	HB4873 - 289 - LRB103 35886 RPS 65971 b
10367	10367
10368	10368
10369	10369	HB4873- 290 -LRB103 35886 RPS 65971 b HB4873 - 290 - LRB103 35886 RPS 65971 b
10370	10370	HB4873 - 290 - LRB103 35886 RPS 65971 b
10371	10371	1 credit shall be reduced by one-half of 1% for each full month
10372	10372	2 that the member's age is under age 67 (age 65, with respect to
10373	10373	3 service under Article 12 that is subject to this Section, for a
10374	10374	4 member or participant under Article 12 who first becomes a
10375	10375	5 member or participant under Article 12 on or after January 1,
10376	10376	6 2022 or who makes the election under item (i) of subsection
10377	10377	7 (d-15) of this Section).
10378	10378	8 (d-5) The retirement annuity payable under Article 8 or
10379	10379	9 Article 11 to an eligible person subject to subsection (c-5)
10380	10380	10 of this Section who is retiring at age 60 with at least 10
10381	10381	11 years of service credit shall be reduced by one-half of 1% for
10382	10382	12 each full month that the member's age is under age 65.
10383	10383	13 (d-10) Each person who first became a member or
10384	10384	14 participant under Article 8 or Article 11 of this Code on or
10385	10385	15 after January 1, 2011 and prior to July 6, 2017 (the effective
10386	10386	16 date of Public Act 100-23) shall make an irrevocable election
10387	10387	17 either:
10388	10388	18 (i) to be eligible for the reduced retirement age
10389	10389	19 provided in subsections (c-5) and (d-5) of this Section,
10390	10390	20 the eligibility for which is conditioned upon the member
10391	10391	21 or participant agreeing to the increases in employee
10392	10392	22 contributions for age and service annuities provided in
10393	10393	23 subsection (a-5) of Section 8-174 of this Code (for
10394	10394	24 service under Article 8) or subsection (a-5) of Section
10395	10395	25 11-170 of this Code (for service under Article 11); or
10396	10396	26 (ii) to not agree to item (i) of this subsection
10397	10397
10398	10398
10399	10399
10400	10400
10401	10401
10402	10402	HB4873 - 290 - LRB103 35886 RPS 65971 b
10403	10403
10404	10404
10405	10405	HB4873- 291 -LRB103 35886 RPS 65971 b HB4873 - 291 - LRB103 35886 RPS 65971 b
10406	10406	HB4873 - 291 - LRB103 35886 RPS 65971 b
10407	10407	1 (d-10), in which case the member or participant shall
10408	10408	2 continue to be subject to the retirement age provisions in
10409	10409	3 subsections (c) and (d) of this Section and the employee
10410	10410	4 contributions for age and service annuity as provided in
10411	10411	5 subsection (a) of Section 8-174 of this Code (for service
10412	10412	6 under Article 8) or subsection (a) of Section 11-170 of
10413	10413	7 this Code (for service under Article 11).
10414	10414	8 The election provided for in this subsection shall be made
10415	10415	9 between October 1, 2017 and November 15, 2017. A person
10416	10416	10 subject to this subsection who makes the required election
10417	10417	11 shall remain bound by that election. A person subject to this
10418	10418	12 subsection who fails for any reason to make the required
10419	10419	13 election within the time specified in this subsection shall be
10420	10420	14 deemed to have made the election under item (ii).
10421	10421	15 (d-15) Each person who first becomes a member or
10422	10422	16 participant under Article 12 on or after January 1, 2011 and
10423	10423	17 prior to January 1, 2022 shall make an irrevocable election
10424	10424	18 either:
10425	10425	19 (i) to be eligible for the reduced retirement age
10426	10426	20 specified in subsections (c) and (d) of this Section, the
10427	10427	21 eligibility for which is conditioned upon the member or
10428	10428	22 participant agreeing to the increase in employee
10429	10429	23 contributions for service annuities specified in
10430	10430	24 subsection (b) of Section 12-150; or
10431	10431	25 (ii) to not agree to item (i) of this subsection
10432	10432	26 (d-15), in which case the member or participant shall not
10433	10433
10434	10434
10435	10435
10436	10436
10437	10437
10438	10438	HB4873 - 291 - LRB103 35886 RPS 65971 b
10439	10439
10440	10440
10441	10441	HB4873- 292 -LRB103 35886 RPS 65971 b HB4873 - 292 - LRB103 35886 RPS 65971 b
10442	10442	HB4873 - 292 - LRB103 35886 RPS 65971 b
10443	10443	1 be eligible for the reduced retirement age specified in
10444	10444	2 subsections (c) and (d) of this Section and shall not be
10445	10445	3 subject to the increase in employee contributions for
10446	10446	4 service annuities specified in subsection (b) of Section
10447	10447	5 12-150.
10448	10448	6 The election provided for in this subsection shall be made
10449	10449	7 between January 1, 2022 and April 1, 2022. A person subject to
10450	10450	8 this subsection who makes the required election shall remain
10451	10451	9 bound by that election. A person subject to this subsection
10452	10452	10 who fails for any reason to make the required election within
10453	10453	11 the time specified in this subsection shall be deemed to have
10454	10454	12 made the election under item (ii).
10455	10455	13 (e) Any retirement annuity or supplemental annuity shall
10456	10456	14 be subject to annual increases on the January 1 occurring
10457	10457	15 either on or after the attainment of age 67 (age 65, with
10458	10458	16 respect to service under Article 12 that is subject to this
10459	10459	17 Section, for a member or participant under Article 12 who
10460	10460	18 first becomes a member or participant under Article 12 on or
10461	10461	19 after January 1, 2022 or who makes the election under item (i)
10462	10462	20 of subsection (d-15); and beginning on July 6, 2017 (the
10463	10463	21 effective date of Public Act 100-23), age 65 with respect to
10464	10464	22 service under Article 8 or Article 11 for eligible persons
10465	10465	23 who: (i) are subject to subsection (c-5) of this Section; or
10466	10466	24 (ii) made the election under item (i) of subsection (d-10) of
10467	10467	25 this Section) or the first anniversary of the annuity start
10468	10468	26 date, whichever is later. Each annual increase shall be
10469	10469
10470	10470
10471	10471
10472	10472
10473	10473
10474	10474	HB4873 - 292 - LRB103 35886 RPS 65971 b
10475	10475
10476	10476
10477	10477	HB4873- 293 -LRB103 35886 RPS 65971 b HB4873 - 293 - LRB103 35886 RPS 65971 b
10478	10478	HB4873 - 293 - LRB103 35886 RPS 65971 b
10479	10479	1 calculated at 3% or one-half the annual unadjusted percentage
10480	10480	2 increase (but not less than zero) in the consumer price
10481	10481	3 index-u for the 12 months ending with the September preceding
10482	10482	4 each November 1, whichever is less, of the originally granted
10483	10483	5 retirement annuity. If the annual unadjusted percentage change
10484	10484	6 in the consumer price index-u for the 12 months ending with the
10485	10485	7 September preceding each November 1 is zero or there is a
10486	10486	8 decrease, then the annuity shall not be increased.
10487	10487	9 For the purposes of Section 1-103.1 of this Code, the
10488	10488	10 changes made to this Section by Public Act 102-263 are
10489	10489	11 applicable without regard to whether the employee was in
10490	10490	12 active service on or after August 6, 2021 (the effective date
10491	10491	13 of Public Act 102-263).
10492	10492	14 For the purposes of Section 1-103.1 of this Code, the
10493	10493	15 changes made to this Section by Public Act 100-23 are
10494	10494	16 applicable without regard to whether the employee was in
10495	10495	17 active service on or after July 6, 2017 (the effective date of
10496	10496	18 Public Act 100-23).
10497	10497	19 (f) The initial survivor's or widow's annuity of an
10498	10498	20 otherwise eligible survivor or widow of a retired member or
10499	10499	21 participant who first became a member or participant on or
10500	10500	22 after January 1, 2011 shall be in the amount of 66 2/3% of the
10501	10501	23 retired member's or participant's retirement annuity at the
10502	10502	24 date of death. In the case of the death of a member or
10503	10503	25 participant who has not retired and who first became a member
10504	10504	26 or participant on or after January 1, 2011, eligibility for a
10505	10505
10506	10506
10507	10507
10508	10508
10509	10509
10510	10510	HB4873 - 293 - LRB103 35886 RPS 65971 b
10511	10511
10512	10512
10513	10513	HB4873- 294 -LRB103 35886 RPS 65971 b HB4873 - 294 - LRB103 35886 RPS 65971 b
10514	10514	HB4873 - 294 - LRB103 35886 RPS 65971 b
10515	10515	1 survivor's or widow's annuity shall be determined by the
10516	10516	2 applicable Article of this Code. The initial benefit shall be
10517	10517	3 66 2/3% of the earned annuity without a reduction due to age. A
10518	10518	4 child's annuity of an otherwise eligible child shall be in the
10519	10519	5 amount prescribed under each Article if applicable. Any
10520	10520	6 survivor's or widow's annuity shall be increased (1) on each
10521	10521	7 January 1 occurring on or after the commencement of the
10522	10522	8 annuity if the deceased member died while receiving a
10523	10523	9 retirement annuity or (2) in other cases, on each January 1
10524	10524	10 occurring after the first anniversary of the commencement of
10525	10525	11 the annuity. Each annual increase shall be calculated at 3% or
10526	10526	12 one-half the annual unadjusted percentage increase (but not
10527	10527	13 less than zero) in the consumer price index-u for the 12 months
10528	10528	14 ending with the September preceding each November 1, whichever
10529	10529	15 is less, of the originally granted survivor's annuity. If the
10530	10530	16 annual unadjusted percentage change in the consumer price
10531	10531	17 index-u for the 12 months ending with the September preceding
10532	10532	18 each November 1 is zero or there is a decrease, then the
10533	10533	19 annuity shall not be increased.
10534	10534	20 (g) The benefits in Section 14-110 apply only if the
10535	10535	21 person is a State policeman, a fire fighter in the fire
10536	10536	22 protection service of a department, a conservation police
10537	10537	23 officer, an investigator for the Secretary of State, an
10538	10538	24 investigator for the Office of the Attorney General, an arson
10539	10539	25 investigator, a Commerce Commission police officer,
10540	10540	26 investigator for the Department of Revenue or the Illinois
10541	10541
10542	10542
10543	10543
10544	10544
10545	10545
10546	10546	HB4873 - 294 - LRB103 35886 RPS 65971 b
10547	10547
10548	10548
10549	10549	HB4873- 295 -LRB103 35886 RPS 65971 b HB4873 - 295 - LRB103 35886 RPS 65971 b
10550	10550	HB4873 - 295 - LRB103 35886 RPS 65971 b
10551	10551	1 Gaming Board, a security employee of the Department of
10552	10552	2 Corrections or the Department of Juvenile Justice, or a
10553	10553	3 security employee of the Department of Innovation and
10554	10554	4 Technology, as those terms are defined in subsection (b) and
10555	10555	5 subsection (c) of Section 14-110. A person who meets the
10556	10556	6 requirements of this Section is entitled to an annuity
10557	10557	7 calculated under the provisions of Section 14-110, in lieu of
10558	10558	8 the regular or minimum retirement annuity, only if the person
10559	10559	9 has withdrawn from service with not less than 20 years of
10560	10560	10 eligible creditable service and has attained age 60,
10561	10561	11 regardless of whether the attainment of age 60 occurs while
10562	10562	12 the person is still in service.
10563	10563	13 (h) If a person who first becomes a member or a participant
10564	10564	14 of a retirement system or pension fund subject to this Section
10565	10565	15 on or after January 1, 2011 is receiving a retirement annuity
10566	10566	16 or retirement pension under that system or fund and becomes a
10567	10567	17 member or participant under any other system or fund created
10568	10568	18 by this Code and is employed on a full-time basis, except for
10569	10569	19 those members or participants exempted from the provisions of
10570	10570	20 this Section under subsection (a) of this Section, then the
10571	10571	21 person's retirement annuity or retirement pension under that
10572	10572	22 system or fund shall be suspended during that employment. Upon
10573	10573	23 termination of that employment, the person's retirement
10574	10574	24 annuity or retirement pension payments shall resume and be
10575	10575	25 recalculated if recalculation is provided for under the
10576	10576	26 applicable Article of this Code.
10577	10577
10578	10578
10579	10579
10580	10580
10581	10581
10582	10582	HB4873 - 295 - LRB103 35886 RPS 65971 b
10583	10583
10584	10584
10585	10585	HB4873- 296 -LRB103 35886 RPS 65971 b HB4873 - 296 - LRB103 35886 RPS 65971 b
10586	10586	HB4873 - 296 - LRB103 35886 RPS 65971 b
10587	10587	1 If a person who first becomes a member of a retirement
10588	10588	2 system or pension fund subject to this Section on or after
10589	10589	3 January 1, 2012 and is receiving a retirement annuity or
10590	10590	4 retirement pension under that system or fund and accepts on a
10591	10591	5 contractual basis a position to provide services to a
10592	10592	6 governmental entity from which he or she has retired, then
10593	10593	7 that person's annuity or retirement pension earned as an
10594	10594	8 active employee of the employer shall be suspended during that
10595	10595	9 contractual service. A person receiving an annuity or
10596	10596	10 retirement pension under this Code shall notify the pension
10597	10597	11 fund or retirement system from which he or she is receiving an
10598	10598	12 annuity or retirement pension, as well as his or her
10599	10599	13 contractual employer, of his or her retirement status before
10600	10600	14 accepting contractual employment. A person who fails to submit
10601	10601	15 such notification shall be guilty of a Class A misdemeanor and
10602	10602	16 required to pay a fine of $1,000. Upon termination of that
10603	10603	17 contractual employment, the person's retirement annuity or
10604	10604	18 retirement pension payments shall resume and, if appropriate,
10605	10605	19 be recalculated under the applicable provisions of this Code.
10606	10606	20 (i) (Blank).
10607	10607	21 (j) In the case of a conflict between the provisions of
10608	10608	22 this Section and any other provision of this Code, the
10609	10609	23 provisions of this Section shall control.
10610	10610	24 (Source: P.A. 102-16, eff. 6-17-21; 102-210, eff. 1-1-22;
10611	10611	25 102-263, eff. 8-6-21; 102-956, eff. 5-27-22; 103-529, eff.
10612	10612	26 8-11-23.)
10613	10613
10614	10614
10615	10615
10616	10616
10617	10617
10618	10618	HB4873 - 296 - LRB103 35886 RPS 65971 b
10619	10619
10620	10620
10621	10621	HB4873- 297 -LRB103 35886 RPS 65971 b HB4873 - 297 - LRB103 35886 RPS 65971 b
10622	10622	HB4873 - 297 - LRB103 35886 RPS 65971 b
10623	10623	1 (40 ILCS 5/15-108.2)
10624	10624	2 Sec. 15-108.2. Tier 2 member. "Tier 2 member": A person
10625	10625	3 who first becomes a participant under this Article on or after
10626	10626	4 January 1, 2011 and before the implementation date, as defined
10627	10627	5 under subsection (a) of Section 1-161, determined by the
10628	10628	6 Board, other than a person in the self-managed plan
10629	10629	7 established under Section 15-158.2 or a person who makes the
10630	10630	8 election under subsection (c) of Section 1-161, unless the
10631	10631	9 person is otherwise a Tier 1 member. The changes made to this
10632	10632	10 Section by this amendatory Act of the 98th General Assembly
10633	10633	11 are a correction of existing law and are intended to be
10634	10634	12 retroactive to the effective date of Public Act 96-889,
10635	10635	13 notwithstanding the provisions of Section 1-103.1 of this
10636	10636	14 Code.
10637	10637	15 (Source: P.A. 100-23, eff. 7-6-17; 100-563, eff. 12-8-17.)
10638	10638	16 (40 ILCS 5/15-155) (from Ch. 108 1/2, par. 15-155)
10639	10639	17 Sec. 15-155. Employer contributions.
10640	10640	18 (a) The State of Illinois shall make contributions by
10641	10641	19 appropriations of amounts which, together with the other
10642	10642	20 employer contributions from trust, federal, and other funds,
10643	10643	21 employee contributions, income from investments, and other
10644	10644	22 income of this System, will be sufficient to meet the cost of
10645	10645	23 maintaining and administering the System on a 90% funded basis
10646	10646	24 in accordance with actuarial recommendations.
10647	10647
10648	10648
10649	10649
10650	10650
10651	10651
10652	10652	HB4873 - 297 - LRB103 35886 RPS 65971 b
10653	10653
10654	10654
10655	10655	HB4873- 298 -LRB103 35886 RPS 65971 b HB4873 - 298 - LRB103 35886 RPS 65971 b
10656	10656	HB4873 - 298 - LRB103 35886 RPS 65971 b
10657	10657	1 The Board shall determine the amount of State
10658	10658	2 contributions required for each fiscal year on the basis of
10659	10659	3 the actuarial tables and other assumptions adopted by the
10660	10660	4 Board and the recommendations of the actuary, using the
10661	10661	5 formula in subsection (a-1).
10662	10662	6 (a-1) For State fiscal years 2012 through 2045, the
10663	10663	7 minimum contribution to the System to be made by the State for
10664	10664	8 each fiscal year shall be an amount determined by the System to
10665	10665	9 be sufficient to bring the total assets of the System up to 90%
10666	10666	10 of the total actuarial liabilities of the System by the end of
10667	10667	11 State fiscal year 2045. In making these determinations, the
10668	10668	12 required State contribution shall be calculated each year as a
10669	10669	13 level percentage of payroll over the years remaining to and
10670	10670	14 including fiscal year 2045 and shall be determined under the
10671	10671	15 projected unit credit actuarial cost method.
10672	10672	16 For each of State fiscal years 2018, 2019, and 2020, the
10673	10673	17 State shall make an additional contribution to the System
10674	10674	18 equal to 2% of the total payroll of each employee who is deemed
10675	10675	19 to have elected the benefits under Section 1-161 or who has
10676	10676	20 made the election under subsection (c) of Section 1-161.
10677	10677	21 A change in an actuarial or investment assumption that
10678	10678	22 increases or decreases the required State contribution and
10679	10679	23 first applies in State fiscal year 2018 or thereafter shall be
10680	10680	24 implemented in equal annual amounts over a 5-year period
10681	10681	25 beginning in the State fiscal year in which the actuarial
10682	10682	26 change first applies to the required State contribution.
10683	10683
10684	10684
10685	10685
10686	10686
10687	10687
10688	10688	HB4873 - 298 - LRB103 35886 RPS 65971 b
10689	10689
10690	10690
10691	10691	HB4873- 299 -LRB103 35886 RPS 65971 b HB4873 - 299 - LRB103 35886 RPS 65971 b
10692	10692	HB4873 - 299 - LRB103 35886 RPS 65971 b
10693	10693	1 A change in an actuarial or investment assumption that
10694	10694	2 increases or decreases the required State contribution and
10695	10695	3 first applied to the State contribution in fiscal year 2014,
10696	10696	4 2015, 2016, or 2017 shall be implemented:
10697	10697	5 (i) as already applied in State fiscal years before
10698	10698	6 2018; and
10699	10699	7 (ii) in the portion of the 5-year period beginning in
10700	10700	8 the State fiscal year in which the actuarial change first
10701	10701	9 applied that occurs in State fiscal year 2018 or
10702	10702	10 thereafter, by calculating the change in equal annual
10703	10703	11 amounts over that 5-year period and then implementing it
10704	10704	12 at the resulting annual rate in each of the remaining
10705	10705	13 fiscal years in that 5-year period.
10706	10706	14 For State fiscal years 1996 through 2005, the State
10707	10707	15 contribution to the System, as a percentage of the applicable
10708	10708	16 employee payroll, shall be increased in equal annual
10709	10709	17 increments so that by State fiscal year 2011, the State is
10710	10710	18 contributing at the rate required under this Section.
10711	10711	19 Notwithstanding any other provision of this Article, the
10712	10712	20 total required State contribution for State fiscal year 2006
10713	10713	21 is $166,641,900.
10714	10714	22 Notwithstanding any other provision of this Article, the
10715	10715	23 total required State contribution for State fiscal year 2007
10716	10716	24 is $252,064,100.
10717	10717	25 For each of State fiscal years 2008 through 2009, the
10718	10718	26 State contribution to the System, as a percentage of the
10719	10719
10720	10720
10721	10721
10722	10722
10723	10723
10724	10724	HB4873 - 299 - LRB103 35886 RPS 65971 b
10725	10725
10726	10726
10727	10727	HB4873- 300 -LRB103 35886 RPS 65971 b HB4873 - 300 - LRB103 35886 RPS 65971 b
10728	10728	HB4873 - 300 - LRB103 35886 RPS 65971 b
10729	10729	1 applicable employee payroll, shall be increased in equal
10730	10730	2 annual increments from the required State contribution for
10731	10731	3 State fiscal year 2007, so that by State fiscal year 2011, the
10732	10732	4 State is contributing at the rate otherwise required under
10733	10733	5 this Section.
10734	10734	6 Notwithstanding any other provision of this Article, the
10735	10735	7 total required State contribution for State fiscal year 2010
10736	10736	8 is $702,514,000 and shall be made from the State Pensions Fund
10737	10737	9 and proceeds of bonds sold in fiscal year 2010 pursuant to
10738	10738	10 Section 7.2 of the General Obligation Bond Act, less (i) the
10739	10739	11 pro rata share of bond sale expenses determined by the
10740	10740	12 System's share of total bond proceeds, (ii) any amounts
10741	10741	13 received from the General Revenue Fund in fiscal year 2010,
10742	10742	14 (iii) any reduction in bond proceeds due to the issuance of
10743	10743	15 discounted bonds, if applicable.
10744	10744	16 Notwithstanding any other provision of this Article, the
10745	10745	17 total required State contribution for State fiscal year 2011
10746	10746	18 is the amount recertified by the System on or before April 1,
10747	10747	19 2011 pursuant to Section 15-165 and shall be made from the
10748	10748	20 State Pensions Fund and proceeds of bonds sold in fiscal year
10749	10749	21 2011 pursuant to Section 7.2 of the General Obligation Bond
10750	10750	22 Act, less (i) the pro rata share of bond sale expenses
10751	10751	23 determined by the System's share of total bond proceeds, (ii)
10752	10752	24 any amounts received from the General Revenue Fund in fiscal
10753	10753	25 year 2011, and (iii) any reduction in bond proceeds due to the
10754	10754	26 issuance of discounted bonds, if applicable.
10755	10755
10756	10756
10757	10757
10758	10758
10759	10759
10760	10760	HB4873 - 300 - LRB103 35886 RPS 65971 b
10761	10761
10762	10762
10763	10763	HB4873- 301 -LRB103 35886 RPS 65971 b HB4873 - 301 - LRB103 35886 RPS 65971 b
10764	10764	HB4873 - 301 - LRB103 35886 RPS 65971 b
10765	10765	1 Beginning in State fiscal year 2046, the minimum State
10766	10766	2 contribution for each fiscal year shall be the amount needed
10767	10767	3 to maintain the total assets of the System at 90% of the total
10768	10768	4 actuarial liabilities of the System.
10769	10769	5 Amounts received by the System pursuant to Section 25 of
10770	10770	6 the Budget Stabilization Act or Section 8.12 of the State
10771	10771	7 Finance Act in any fiscal year do not reduce and do not
10772	10772	8 constitute payment of any portion of the minimum State
10773	10773	9 contribution required under this Article in that fiscal year.
10774	10774	10 Such amounts shall not reduce, and shall not be included in the
10775	10775	11 calculation of, the required State contributions under this
10776	10776	12 Article in any future year until the System has reached a
10777	10777	13 funding ratio of at least 90%. A reference in this Article to
10778	10778	14 the "required State contribution" or any substantially similar
10779	10779	15 term does not include or apply to any amounts payable to the
10780	10780	16 System under Section 25 of the Budget Stabilization Act.
10781	10781	17 Notwithstanding any other provision of this Section, the
10782	10782	18 required State contribution for State fiscal year 2005 and for
10783	10783	19 fiscal year 2008 and each fiscal year thereafter, as
10784	10784	20 calculated under this Section and certified under Section
10785	10785	21 15-165, shall not exceed an amount equal to (i) the amount of
10786	10786	22 the required State contribution that would have been
10787	10787	23 calculated under this Section for that fiscal year if the
10788	10788	24 System had not received any payments under subsection (d) of
10789	10789	25 Section 7.2 of the General Obligation Bond Act, minus (ii) the
10790	10790	26 portion of the State's total debt service payments for that
10791	10791
10792	10792
10793	10793
10794	10794
10795	10795
10796	10796	HB4873 - 301 - LRB103 35886 RPS 65971 b
10797	10797
10798	10798
10799	10799	HB4873- 302 -LRB103 35886 RPS 65971 b HB4873 - 302 - LRB103 35886 RPS 65971 b
10800	10800	HB4873 - 302 - LRB103 35886 RPS 65971 b
10801	10801	1 fiscal year on the bonds issued in fiscal year 2003 for the
10802	10802	2 purposes of that Section 7.2, as determined and certified by
10803	10803	3 the Comptroller, that is the same as the System's portion of
10804	10804	4 the total moneys distributed under subsection (d) of Section
10805	10805	5 7.2 of the General Obligation Bond Act. In determining this
10806	10806	6 maximum for State fiscal years 2008 through 2010, however, the
10807	10807	7 amount referred to in item (i) shall be increased, as a
10808	10808	8 percentage of the applicable employee payroll, in equal
10809	10809	9 increments calculated from the sum of the required State
10810	10810	10 contribution for State fiscal year 2007 plus the applicable
10811	10811	11 portion of the State's total debt service payments for fiscal
10812	10812	12 year 2007 on the bonds issued in fiscal year 2003 for the
10813	10813	13 purposes of Section 7.2 of the General Obligation Bond Act, so
10814	10814	14 that, by State fiscal year 2011, the State is contributing at
10815	10815	15 the rate otherwise required under this Section.
10816	10816	16 (a-2) (Blank). Beginning in fiscal year 2018, each
10817	10817	17 employer under this Article shall pay to the System a required
10818	10818	18 contribution determined as a percentage of projected payroll
10819	10819	19 and sufficient to produce an annual amount equal to:
10820	10820	20 (i) for each of fiscal years 2018, 2019, and 2020, the
10821	10821	21 defined benefit normal cost of the defined benefit plan,
10822	10822	22 less the employee contribution, for each employee of that
10823	10823	23 employer who has elected or who is deemed to have elected
10824	10824	24 the benefits under Section 1-161 or who has made the
10825	10825	25 election under subsection (c) of Section 1-161; for fiscal
10826	10826	26 year 2021 and each fiscal year thereafter, the defined
10827	10827
10828	10828
10829	10829
10830	10830
10831	10831
10832	10832	HB4873 - 302 - LRB103 35886 RPS 65971 b
10833	10833
10834	10834
10835	10835	HB4873- 303 -LRB103 35886 RPS 65971 b HB4873 - 303 - LRB103 35886 RPS 65971 b
10836	10836	HB4873 - 303 - LRB103 35886 RPS 65971 b
10837	10837	1 benefit normal cost of the defined benefit plan, less the
10838	10838	2 employee contribution, plus 2%, for each employee of that
10839	10839	3 employer who has elected or who is deemed to have elected
10840	10840	4 the benefits under Section 1-161 or who has made the
10841	10841	5 election under subsection (c) of Section 1-161; plus
10842	10842	6 (ii) the amount required for that fiscal year to
10843	10843	7 amortize any unfunded actuarial accrued liability
10844	10844	8 associated with the present value of liabilities
10845	10845	9 attributable to the employer's account under Section
10846	10846	10 15-155.2, determined as a level percentage of payroll over
10847	10847	11 a 30-year rolling amortization period.
10848	10848	12 In determining contributions required under item (i) of
10849	10849	13 this subsection, the System shall determine an aggregate rate
10850	10850	14 for all employers, expressed as a percentage of projected
10851	10851	15 payroll.
10852	10852	16 In determining the contributions required under item (ii)
10853	10853	17 of this subsection, the amount shall be computed by the System
10854	10854	18 on the basis of the actuarial assumptions and tables used in
10855	10855	19 the most recent actuarial valuation of the System that is
10856	10856	20 available at the time of the computation.
10857	10857	21 The contributions required under this subsection (a-2)
10858	10858	22 shall be paid by an employer concurrently with that employer's
10859	10859	23 payroll payment period. The State, as the actual employer of
10860	10860	24 an employee, shall make the required contributions under this
10861	10861	25 subsection.
10862	10862	26 As used in this subsection, "academic year" means the
10863	10863
10864	10864
10865	10865
10866	10866
10867	10867
10868	10868	HB4873 - 303 - LRB103 35886 RPS 65971 b
10869	10869
10870	10870
10871	10871	HB4873- 304 -LRB103 35886 RPS 65971 b HB4873 - 304 - LRB103 35886 RPS 65971 b
10872	10872	HB4873 - 304 - LRB103 35886 RPS 65971 b
10873	10873	1 12-month period beginning September 1.
10874	10874	2 (b) If an employee is paid from trust or federal funds, the
10875	10875	3 employer shall pay to the Board contributions from those funds
10876	10876	4 which are sufficient to cover the accruing normal costs on
10877	10877	5 behalf of the employee. However, universities having employees
10878	10878	6 who are compensated out of local auxiliary funds, income
10879	10879	7 funds, or service enterprise funds are not required to pay
10880	10880	8 such contributions on behalf of those employees. The local
10881	10881	9 auxiliary funds, income funds, and service enterprise funds of
10882	10882	10 universities shall not be considered trust funds for the
10883	10883	11 purpose of this Article, but funds of alumni associations,
10884	10884	12 foundations, and athletic associations which are affiliated
10885	10885	13 with the universities included as employers under this Article
10886	10886	14 and other employers which do not receive State appropriations
10887	10887	15 are considered to be trust funds for the purpose of this
10888	10888	16 Article.
10889	10889	17 (b-1) The City of Urbana and the City of Champaign shall
10890	10890	18 each make employer contributions to this System for their
10891	10891	19 respective firefighter employees who participate in this
10892	10892	20 System pursuant to subsection (h) of Section 15-107. The rate
10893	10893	21 of contributions to be made by those municipalities shall be
10894	10894	22 determined annually by the Board on the basis of the actuarial
10895	10895	23 assumptions adopted by the Board and the recommendations of
10896	10896	24 the actuary, and shall be expressed as a percentage of salary
10897	10897	25 for each such employee. The Board shall certify the rate to the
10898	10898	26 affected municipalities as soon as may be practical. The
10899	10899
10900	10900
10901	10901
10902	10902
10903	10903
10904	10904	HB4873 - 304 - LRB103 35886 RPS 65971 b
10905	10905
10906	10906
10907	10907	HB4873- 305 -LRB103 35886 RPS 65971 b HB4873 - 305 - LRB103 35886 RPS 65971 b
10908	10908	HB4873 - 305 - LRB103 35886 RPS 65971 b
10909	10909	1 employer contributions required under this subsection shall be
10910	10910	2 remitted by the municipality to the System at the same time and
10911	10911	3 in the same manner as employee contributions.
10912	10912	4 (c) Through State fiscal year 1995: The total employer
10913	10913	5 contribution shall be apportioned among the various funds of
10914	10914	6 the State and other employers, whether trust, federal, or
10915	10915	7 other funds, in accordance with actuarial procedures approved
10916	10916	8 by the Board. State of Illinois contributions for employers
10917	10917	9 receiving State appropriations for personal services shall be
10918	10918	10 payable from appropriations made to the employers or to the
10919	10919	11 System. The contributions for Class I community colleges
10920	10920	12 covering earnings other than those paid from trust and federal
10921	10921	13 funds, shall be payable solely from appropriations to the
10922	10922	14 Illinois Community College Board or the System for employer
10923	10923	15 contributions.
10924	10924	16 (d) Beginning in State fiscal year 1996, the required
10925	10925	17 State contributions to the System shall be appropriated
10926	10926	18 directly to the System and shall be payable through vouchers
10927	10927	19 issued in accordance with subsection (c) of Section 15-165,
10928	10928	20 except as provided in subsection (g).
10929	10929	21 (e) The State Comptroller shall draw warrants payable to
10930	10930	22 the System upon proper certification by the System or by the
10931	10931	23 employer in accordance with the appropriation laws and this
10932	10932	24 Code.
10933	10933	25 (f) Normal costs under this Section means liability for
10934	10934	26 pensions and other benefits which accrues to the System
10935	10935
10936	10936
10937	10937
10938	10938
10939	10939
10940	10940	HB4873 - 305 - LRB103 35886 RPS 65971 b
10941	10941
10942	10942
10943	10943	HB4873- 306 -LRB103 35886 RPS 65971 b HB4873 - 306 - LRB103 35886 RPS 65971 b
10944	10944	HB4873 - 306 - LRB103 35886 RPS 65971 b
10945	10945	1 because of the credits earned for service rendered by the
10946	10946	2 participants during the fiscal year and expenses of
10947	10947	3 administering the System, but shall not include the principal
10948	10948	4 of or any redemption premium or interest on any bonds issued by
10949	10949	5 the Board or any expenses incurred or deposits required in
10950	10950	6 connection therewith.
10951	10951	7 (g) If the amount of a participant's earnings for any
10952	10952	8 academic year used to determine the final rate of earnings,
10953	10953	9 determined on a full-time equivalent basis, exceeds the amount
10954	10954	10 of his or her earnings with the same employer for the previous
10955	10955	11 academic year, determined on a full-time equivalent basis, by
10956	10956	12 more than 6%, the participant's employer shall pay to the
10957	10957	13 System, in addition to all other payments required under this
10958	10958	14 Section and in accordance with guidelines established by the
10959	10959	15 System, the present value of the increase in benefits
10960	10960	16 resulting from the portion of the increase in earnings that is
10961	10961	17 in excess of 6%. This present value shall be computed by the
10962	10962	18 System on the basis of the actuarial assumptions and tables
10963	10963	19 used in the most recent actuarial valuation of the System that
10964	10964	20 is available at the time of the computation. The System may
10965	10965	21 require the employer to provide any pertinent information or
10966	10966	22 documentation.
10967	10967	23 Whenever it determines that a payment is or may be
10968	10968	24 required under this subsection (g), the System shall calculate
10969	10969	25 the amount of the payment and bill the employer for that
10970	10970	26 amount. The bill shall specify the calculations used to
10971	10971
10972	10972
10973	10973
10974	10974
10975	10975
10976	10976	HB4873 - 306 - LRB103 35886 RPS 65971 b
10977	10977
10978	10978
10979	10979	HB4873- 307 -LRB103 35886 RPS 65971 b HB4873 - 307 - LRB103 35886 RPS 65971 b
10980	10980	HB4873 - 307 - LRB103 35886 RPS 65971 b
10981	10981	1 determine the amount due. If the employer disputes the amount
10982	10982	2 of the bill, it may, within 30 days after receipt of the bill,
10983	10983	3 apply to the System in writing for a recalculation. The
10984	10984	4 application must specify in detail the grounds of the dispute
10985	10985	5 and, if the employer asserts that the calculation is subject
10986	10986	6 to subsection (h), (h-5), or (i) of this Section, must include
10987	10987	7 an affidavit setting forth and attesting to all facts within
10988	10988	8 the employer's knowledge that are pertinent to the
10989	10989	9 applicability of that subsection. Upon receiving a timely
10990	10990	10 application for recalculation, the System shall review the
10991	10991	11 application and, if appropriate, recalculate the amount due.
10992	10992	12 The employer contributions required under this subsection
10993	10993	13 (g) may be paid in the form of a lump sum within 90 days after
10994	10994	14 receipt of the bill. If the employer contributions are not
10995	10995	15 paid within 90 days after receipt of the bill, then interest
10996	10996	16 will be charged at a rate equal to the System's annual
10997	10997	17 actuarially assumed rate of return on investment compounded
10998	10998	18 annually from the 91st day after receipt of the bill. Payments
10999	10999	19 must be concluded within 3 years after the employer's receipt
11000	11000	20 of the bill.
11001	11001	21 When assessing payment for any amount due under this
11002	11002	22 subsection (g), the System shall include earnings, to the
11003	11003	23 extent not established by a participant under Section
11004	11004	24 15-113.11 or 15-113.12, that would have been paid to the
11005	11005	25 participant had the participant not taken (i) periods of
11006	11006	26 voluntary or involuntary furlough occurring on or after July
11007	11007
11008	11008
11009	11009
11010	11010
11011	11011
11012	11012	HB4873 - 307 - LRB103 35886 RPS 65971 b
11013	11013
11014	11014
11015	11015	HB4873- 308 -LRB103 35886 RPS 65971 b HB4873 - 308 - LRB103 35886 RPS 65971 b
11016	11016	HB4873 - 308 - LRB103 35886 RPS 65971 b
11017	11017	1 1, 2015 and on or before June 30, 2017 or (ii) periods of
11018	11018	2 voluntary pay reduction in lieu of furlough occurring on or
11019	11019	3 after July 1, 2015 and on or before June 30, 2017. Determining
11020	11020	4 earnings that would have been paid to a participant had the
11021	11021	5 participant not taken periods of voluntary or involuntary
11022	11022	6 furlough or periods of voluntary pay reduction shall be the
11023	11023	7 responsibility of the employer, and shall be reported in a
11024	11024	8 manner prescribed by the System.
11025	11025	9 This subsection (g) does not apply to (1) Tier 2 hybrid
11026	11026	10 plan members and (2) Tier 2 defined benefit members who first
11027	11027	11 participate under this Article on or after the implementation
11028	11028	12 date of the Optional Hybrid Plan.
11029	11029	13 (g-1) (Blank).
11030	11030	14 (h) This subsection (h) applies only to payments made or
11031	11031	15 salary increases given on or after June 1, 2005 but before July
11032	11032	16 1, 2011. The changes made by Public Act 94-1057 shall not
11033	11033	17 require the System to refund any payments received before July
11034	11034	18 31, 2006 (the effective date of Public Act 94-1057).
11035	11035	19 When assessing payment for any amount due under subsection
11036	11036	20 (g), the System shall exclude earnings increases paid to
11037	11037	21 participants under contracts or collective bargaining
11038	11038	22 agreements entered into, amended, or renewed before June 1,
11039	11039	23 2005.
11040	11040	24 When assessing payment for any amount due under subsection
11041	11041	25 (g), the System shall exclude earnings increases paid to a
11042	11042	26 participant at a time when the participant is 10 or more years
11043	11043
11044	11044
11045	11045
11046	11046
11047	11047
11048	11048	HB4873 - 308 - LRB103 35886 RPS 65971 b
11049	11049
11050	11050
11051	11051	HB4873- 309 -LRB103 35886 RPS 65971 b HB4873 - 309 - LRB103 35886 RPS 65971 b
11052	11052	HB4873 - 309 - LRB103 35886 RPS 65971 b
11053	11053	1 from retirement eligibility under Section 15-135.
11054	11054	2 When assessing payment for any amount due under subsection
11055	11055	3 (g), the System shall exclude earnings increases resulting
11056	11056	4 from overload work, including a contract for summer teaching,
11057	11057	5 or overtime when the employer has certified to the System, and
11058	11058	6 the System has approved the certification, that: (i) in the
11059	11059	7 case of overloads (A) the overload work is for the sole purpose
11060	11060	8 of academic instruction in excess of the standard number of
11061	11061	9 instruction hours for a full-time employee occurring during
11062	11062	10 the academic year that the overload is paid and (B) the
11063	11063	11 earnings increases are equal to or less than the rate of pay
11064	11064	12 for academic instruction computed using the participant's
11065	11065	13 current salary rate and work schedule; and (ii) in the case of
11066	11066	14 overtime, the overtime was necessary for the educational
11067	11067	15 mission.
11068	11068	16 When assessing payment for any amount due under subsection
11069	11069	17 (g), the System shall exclude any earnings increase resulting
11070	11070	18 from (i) a promotion for which the employee moves from one
11071	11071	19 classification to a higher classification under the State
11072	11072	20 Universities Civil Service System, (ii) a promotion in
11073	11073	21 academic rank for a tenured or tenure-track faculty position,
11074	11074	22 or (iii) a promotion that the Illinois Community College Board
11075	11075	23 has recommended in accordance with subsection (k) of this
11076	11076	24 Section. These earnings increases shall be excluded only if
11077	11077	25 the promotion is to a position that has existed and been filled
11078	11078	26 by a member for no less than one complete academic year and the
11079	11079
11080	11080
11081	11081
11082	11082
11083	11083
11084	11084	HB4873 - 309 - LRB103 35886 RPS 65971 b
11085	11085
11086	11086
11087	11087	HB4873- 310 -LRB103 35886 RPS 65971 b HB4873 - 310 - LRB103 35886 RPS 65971 b
11088	11088	HB4873 - 310 - LRB103 35886 RPS 65971 b
11089	11089	1 earnings increase as a result of the promotion is an increase
11090	11090	2 that results in an amount no greater than the average salary
11091	11091	3 paid for other similar positions.
11092	11092	4 (h-5) When assessing payment for any amount due under
11093	11093	5 subsection (g), the System shall exclude any earnings increase
11094	11094	6 paid in an academic year beginning on or after July 1, 2020
11095	11095	7 resulting from overload work performed in an academic year
11096	11096	8 subsequent to an academic year in which the employer was
11097	11097	9 unable to offer or allow to be conducted overload work due to
11098	11098	10 an emergency declaration limiting such activities.
11099	11099	11 (i) When assessing payment for any amount due under
11100	11100	12 subsection (g), the System shall exclude any salary increase
11101	11101	13 described in subsection (h) of this Section given on or after
11102	11102	14 July 1, 2011 but before July 1, 2014 under a contract or
11103	11103	15 collective bargaining agreement entered into, amended, or
11104	11104	16 renewed on or after June 1, 2005 but before July 1, 2011.
11105	11105	17 Except as provided in subsection (h-5), any payments made or
11106	11106	18 salary increases given after June 30, 2014 shall be used in
11107	11107	19 assessing payment for any amount due under subsection (g) of
11108	11108	20 this Section.
11109	11109	21 (j) The System shall prepare a report and file copies of
11110	11110	22 the report with the Governor and the General Assembly by
11111	11111	23 January 1, 2007 that contains all of the following
11112	11112	24 information:
11113	11113	25 (1) The number of recalculations required by the
11114	11114	26 changes made to this Section by Public Act 94-1057 for
11115	11115
11116	11116
11117	11117
11118	11118
11119	11119
11120	11120	HB4873 - 310 - LRB103 35886 RPS 65971 b
11121	11121
11122	11122
11123	11123	HB4873- 311 -LRB103 35886 RPS 65971 b HB4873 - 311 - LRB103 35886 RPS 65971 b
11124	11124	HB4873 - 311 - LRB103 35886 RPS 65971 b
11125	11125	1 each employer.
11126	11126	2 (2) The dollar amount by which each employer's
11127	11127	3 contribution to the System was changed due to
11128	11128	4 recalculations required by Public Act 94-1057.
11129	11129	5 (3) The total amount the System received from each
11130	11130	6 employer as a result of the changes made to this Section by
11131	11131	7 Public Act 94-4.
11132	11132	8 (4) The increase in the required State contribution
11133	11133	9 resulting from the changes made to this Section by Public
11134	11134	10 Act 94-1057.
11135	11135	11 (j-5) For State fiscal years beginning on or after July 1,
11136	11136	12 2017, if the amount of a participant's earnings for any State
11137	11137	13 fiscal year exceeds the amount of the salary set by law for the
11138	11138	14 Governor that is in effect on July 1 of that fiscal year, the
11139	11139	15 participant's employer shall pay to the System, in addition to
11140	11140	16 all other payments required under this Section and in
11141	11141	17 accordance with guidelines established by the System, an
11142	11142	18 amount determined by the System to be equal to the employer
11143	11143	19 normal cost, as established by the System and expressed as a
11144	11144	20 total percentage of payroll, multiplied by the amount of
11145	11145	21 earnings in excess of the amount of the salary set by law for
11146	11146	22 the Governor. This amount shall be computed by the System on
11147	11147	23 the basis of the actuarial assumptions and tables used in the
11148	11148	24 most recent actuarial valuation of the System that is
11149	11149	25 available at the time of the computation. The System may
11150	11150	26 require the employer to provide any pertinent information or
11151	11151
11152	11152
11153	11153
11154	11154
11155	11155
11156	11156	HB4873 - 311 - LRB103 35886 RPS 65971 b
11157	11157
11158	11158
11159	11159	HB4873- 312 -LRB103 35886 RPS 65971 b HB4873 - 312 - LRB103 35886 RPS 65971 b
11160	11160	HB4873 - 312 - LRB103 35886 RPS 65971 b
11161	11161	1 documentation.
11162	11162	2 Whenever it determines that a payment is or may be
11163	11163	3 required under this subsection, the System shall calculate the
11164	11164	4 amount of the payment and bill the employer for that amount.
11165	11165	5 The bill shall specify the calculation used to determine the
11166	11166	6 amount due. If the employer disputes the amount of the bill, it
11167	11167	7 may, within 30 days after receipt of the bill, apply to the
11168	11168	8 System in writing for a recalculation. The application must
11169	11169	9 specify in detail the grounds of the dispute. Upon receiving a
11170	11170	10 timely application for recalculation, the System shall review
11171	11171	11 the application and, if appropriate, recalculate the amount
11172	11172	12 due.
11173	11173	13 The employer contributions required under this subsection
11174	11174	14 may be paid in the form of a lump sum within 90 days after
11175	11175	15 issuance of the bill. If the employer contributions are not
11176	11176	16 paid within 90 days after issuance of the bill, then interest
11177	11177	17 will be charged at a rate equal to the System's annual
11178	11178	18 actuarially assumed rate of return on investment compounded
11179	11179	19 annually from the 91st day after issuance of the bill. All
11180	11180	20 payments must be received within 3 years after issuance of the
11181	11181	21 bill. If the employer fails to make complete payment,
11182	11182	22 including applicable interest, within 3 years, then the System
11183	11183	23 may, after giving notice to the employer, certify the
11184	11184	24 delinquent amount to the State Comptroller, and the
11185	11185	25 Comptroller shall thereupon deduct the certified delinquent
11186	11186	26 amount from State funds payable to the employer and pay them
11187	11187
11188	11188
11189	11189
11190	11190
11191	11191
11192	11192	HB4873 - 312 - LRB103 35886 RPS 65971 b
11193	11193
11194	11194
11195	11195	HB4873- 313 -LRB103 35886 RPS 65971 b HB4873 - 313 - LRB103 35886 RPS 65971 b
11196	11196	HB4873 - 313 - LRB103 35886 RPS 65971 b
11197	11197	1 instead to the System.
11198	11198	2 This subsection (j-5) does not apply to a participant's
11199	11199	3 earnings to the extent an employer pays the employer normal
11200	11200	4 cost of such earnings.
11201	11201	5 The changes made to this subsection (j-5) by Public Act
11202	11202	6 100-624 are intended to apply retroactively to July 6, 2017
11203	11203	7 (the effective date of Public Act 100-23).
11204	11204	8 (k) The Illinois Community College Board shall adopt rules
11205	11205	9 for recommending lists of promotional positions submitted to
11206	11206	10 the Board by community colleges and for reviewing the
11207	11207	11 promotional lists on an annual basis. When recommending
11208	11208	12 promotional lists, the Board shall consider the similarity of
11209	11209	13 the positions submitted to those positions recognized for
11210	11210	14 State universities by the State Universities Civil Service
11211	11211	15 System. The Illinois Community College Board shall file a copy
11212	11212	16 of its findings with the System. The System shall consider the
11213	11213	17 findings of the Illinois Community College Board when making
11214	11214	18 determinations under this Section. The System shall not
11215	11215	19 exclude any earnings increases resulting from a promotion when
11216	11216	20 the promotion was not submitted by a community college.
11217	11217	21 Nothing in this subsection (k) shall require any community
11218	11218	22 college to submit any information to the Community College
11219	11219	23 Board.
11220	11220	24 (l) For purposes of determining the required State
11221	11221	25 contribution to the System, the value of the System's assets
11222	11222	26 shall be equal to the actuarial value of the System's assets,
11223	11223
11224	11224
11225	11225
11226	11226
11227	11227
11228	11228	HB4873 - 313 - LRB103 35886 RPS 65971 b
11229	11229
11230	11230
11231	11231	HB4873- 314 -LRB103 35886 RPS 65971 b HB4873 - 314 - LRB103 35886 RPS 65971 b
11232	11232	HB4873 - 314 - LRB103 35886 RPS 65971 b
11233	11233	1 which shall be calculated as follows:
11234	11234	2 As of June 30, 2008, the actuarial value of the System's
11235	11235	3 assets shall be equal to the market value of the assets as of
11236	11236	4 that date. In determining the actuarial value of the System's
11237	11237	5 assets for fiscal years after June 30, 2008, any actuarial
11238	11238	6 gains or losses from investment return incurred in a fiscal
11239	11239	7 year shall be recognized in equal annual amounts over the
11240	11240	8 5-year period following that fiscal year.
11241	11241	9 (m) For purposes of determining the required State
11242	11242	10 contribution to the system for a particular year, the
11243	11243	11 actuarial value of assets shall be assumed to earn a rate of
11244	11244	12 return equal to the system's actuarially assumed rate of
11245	11245	13 return.
11246	11246	14 (Source: P.A. 101-10, eff. 6-5-19; 101-81, eff. 7-12-19;
11247	11247	15 102-16, eff. 6-17-21; 102-558, eff. 8-20-21; 102-764, eff.
11248	11248	16 5-13-22.)
11249	11249	17 (40 ILCS 5/16-158.3)
11250	11250	18 Sec. 16-158.3. Individual employer accounts.
11251	11251	19 (a) The System shall create and maintain an individual
11252	11252	20 account for each employer for the purposes of determining
11253	11253	21 employer contributions under subsection (b-4) of Section
11254	11254	22 16-158. Each employer's account shall be notionally charged
11255	11255	23 with the liabilities attributable to that employer and
11256	11256	24 credited with the assets attributable to that employer.
11257	11257	25 (b) Beginning with fiscal year 2018, the System shall
11258	11258
11259	11259
11260	11260
11261	11261
11262	11262
11263	11263	HB4873 - 314 - LRB103 35886 RPS 65971 b
11264	11264
11265	11265
11266	11266	HB4873- 315 -LRB103 35886 RPS 65971 b HB4873 - 315 - LRB103 35886 RPS 65971 b
11267	11267	HB4873 - 315 - LRB103 35886 RPS 65971 b
11268	11268	1 assign notional liabilities to each employer's account, equal
11269	11269	2 to the amount of the employer contributions required to be
11270	11270	3 made by the employer pursuant to items (i) and (ii) of
11271	11271	4 subsection (b-4) of Section 16-158, plus any unfunded
11272	11272	5 actuarial accrued liability associated with the defined
11273	11273	6 benefits attributable to the employer's employees who first
11274	11274	7 became members on or after the implementation date and the
11275	11275	8 employer's employees who made the election under subsection
11276	11276	9 (c-5) of Section 1-161.
11277	11277	10 (c) Beginning with fiscal year 2018, the System shall
11278	11278	11 assign notional assets to each employer's account equal to the
11279	11279	12 amounts of employer contributions made pursuant to items (i)
11280	11280	13 and (ii) of subsection (b-4) of Section 16-158.
11281	11281	14 (Source: P.A. 100-23, eff. 7-6-17.)
11282	11282	15 (40 ILCS 5/1-161 rep.)
11283	11283	16 (40 ILCS 5/1-162 rep.)
11284	11284	17 (40 ILCS 5/15-155.2 rep.)
11285	11285	18 Section 10-10. The Illinois Pension Code is amended by
11286	11286	19 repealing Sections 1-161, 1-162, and 15-155.2.
11287	11287	20 Article 11.
11288	11288	21 Section 11-5. The Illinois Pension Code is amended by
11289	11289	22 changing Sections 1-160 and 14-110 as follows:
11290	11290
11291	11291
11292	11292
11293	11293
11294	11294
11295	11295	HB4873 - 315 - LRB103 35886 RPS 65971 b
11296	11296
11297	11297
11298	11298	HB4873- 316 -LRB103 35886 RPS 65971 b HB4873 - 316 - LRB103 35886 RPS 65971 b
11299	11299	HB4873 - 316 - LRB103 35886 RPS 65971 b
11300	11300	1 (40 ILCS 5/1-160)
11301	11301	2 (Text of Section from P.A. 102-719)
11302	11302	3 Sec. 1-160. Provisions applicable to new hires.
11303	11303	4 (a) The provisions of this Section apply to a person who,
11304	11304	5 on or after January 1, 2011, first becomes a member or a
11305	11305	6 participant under any reciprocal retirement system or pension
11306	11306	7 fund established under this Code, other than a retirement
11307	11307	8 system or pension fund established under Article 2, 3, 4, 5, 6,
11308	11308	9 7, 15, or 18 of this Code, notwithstanding any other provision
11309	11309	10 of this Code to the contrary, but do not apply to any
11310	11310	11 self-managed plan established under this Code or to any
11311	11311	12 participant of the retirement plan established under Section
11312	11312	13 22-101; except that this Section applies to a person who
11313	11313	14 elected to establish alternative credits by electing in
11314	11314	15 writing after January 1, 2011, but before August 8, 2011,
11315	11315	16 under Section 7-145.1 of this Code. Notwithstanding anything
11316	11316	17 to the contrary in this Section, for purposes of this Section,
11317	11317	18 a person who is a Tier 1 regular employee as defined in Section
11318	11318	19 7-109.4 of this Code or who participated in a retirement
11319	11319	20 system under Article 15 prior to January 1, 2011 shall be
11320	11320	21 deemed a person who first became a member or participant prior
11321	11321	22 to January 1, 2011 under any retirement system or pension fund
11322	11322	23 subject to this Section. The changes made to this Section by
11323	11323	24 Public Act 98-596 are a clarification of existing law and are
11324	11324	25 intended to be retroactive to January 1, 2011 (the effective
11325	11325	26 date of Public Act 96-889), notwithstanding the provisions of
11326	11326
11327	11327
11328	11328
11329	11329
11330	11330
11331	11331	HB4873 - 316 - LRB103 35886 RPS 65971 b
11332	11332
11333	11333
11334	11334	HB4873- 317 -LRB103 35886 RPS 65971 b HB4873 - 317 - LRB103 35886 RPS 65971 b
11335	11335	HB4873 - 317 - LRB103 35886 RPS 65971 b
11336	11336	1 Section 1-103.1 of this Code.
11337	11337	2 This Section does not apply to a person who first becomes a
11338	11338	3 noncovered employee under Article 14 on or after the
11339	11339	4 implementation date of the plan created under Section 1-161
11340	11340	5 for that Article, unless that person elects under subsection
11341	11341	6 (b) of Section 1-161 to instead receive the benefits provided
11342	11342	7 under this Section and the applicable provisions of that
11343	11343	8 Article.
11344	11344	9 This Section does not apply to a person who first becomes a
11345	11345	10 member or participant under Article 16 on or after the
11346	11346	11 implementation date of the plan created under Section 1-161
11347	11347	12 for that Article, unless that person elects under subsection
11348	11348	13 (b) of Section 1-161 to instead receive the benefits provided
11349	11349	14 under this Section and the applicable provisions of that
11350	11350	15 Article.
11351	11351	16 This Section does not apply to a person who elects under
11352	11352	17 subsection (c-5) of Section 1-161 to receive the benefits
11353	11353	18 under Section 1-161.
11354	11354	19 This Section does not apply to a person who first becomes a
11355	11355	20 member or participant of an affected pension fund on or after 6
11356	11356	21 months after the resolution or ordinance date, as defined in
11357	11357	22 Section 1-162, unless that person elects under subsection (c)
11358	11358	23 of Section 1-162 to receive the benefits provided under this
11359	11359	24 Section and the applicable provisions of the Article under
11360	11360	25 which he or she is a member or participant.
11361	11361	26 (b) "Final average salary" means, except as otherwise
11362	11362
11363	11363
11364	11364
11365	11365
11366	11366
11367	11367	HB4873 - 317 - LRB103 35886 RPS 65971 b
11368	11368
11369	11369
11370	11370	HB4873- 318 -LRB103 35886 RPS 65971 b HB4873 - 318 - LRB103 35886 RPS 65971 b
11371	11371	HB4873 - 318 - LRB103 35886 RPS 65971 b
11372	11372	1 provided in this subsection, the average monthly (or annual)
11373	11373	2 salary obtained by dividing the total salary or earnings
11374	11374	3 calculated under the Article applicable to the member or
11375	11375	4 participant during the 96 consecutive months (or 8 consecutive
11376	11376	5 years) of service within the last 120 months (or 10 years) of
11377	11377	6 service in which the total salary or earnings calculated under
11378	11378	7 the applicable Article was the highest by the number of months
11379	11379	8 (or years) of service in that period. For the purposes of a
11380	11380	9 person who first becomes a member or participant of any
11381	11381	10 retirement system or pension fund to which this Section
11382	11382	11 applies on or after January 1, 2011, in this Code, "final
11383	11383	12 average salary" shall be substituted for the following:
11384	11384	13 (1) (Blank).
11385	11385	14 (2) In Articles 8, 9, 10, 11, and 12, "highest average
11386	11386	15 annual salary for any 4 consecutive years within the last
11387	11387	16 10 years of service immediately preceding the date of
11388	11388	17 withdrawal".
11389	11389	18 (3) In Article 13, "average final salary".
11390	11390	19 (4) In Article 14, "final average compensation".
11391	11391	20 (5) In Article 17, "average salary".
11392	11392	21 (6) In Section 22-207, "wages or salary received by
11393	11393	22 him at the date of retirement or discharge".
11394	11394	23 A member of the Teachers' Retirement System of the State
11395	11395	24 of Illinois who retires on or after June 1, 2021 and for whom
11396	11396	25 the 2020-2021 school year is used in the calculation of the
11397	11397	26 member's final average salary shall use the higher of the
11398	11398
11399	11399
11400	11400
11401	11401
11402	11402
11403	11403	HB4873 - 318 - LRB103 35886 RPS 65971 b
11404	11404
11405	11405
11406	11406	HB4873- 319 -LRB103 35886 RPS 65971 b HB4873 - 319 - LRB103 35886 RPS 65971 b
11407	11407	HB4873 - 319 - LRB103 35886 RPS 65971 b
11408	11408	1 following for the purpose of determining the member's final
11409	11409	2 average salary:
11410	11410	3 (A) the amount otherwise calculated under the first
11411	11411	4 paragraph of this subsection; or
11412	11412	5 (B) an amount calculated by the Teachers' Retirement
11413	11413	6 System of the State of Illinois using the average of the
11414	11414	7 monthly (or annual) salary obtained by dividing the total
11415	11415	8 salary or earnings calculated under Article 16 applicable
11416	11416	9 to the member or participant during the 96 months (or 8
11417	11417	10 years) of service within the last 120 months (or 10 years)
11418	11418	11 of service in which the total salary or earnings
11419	11419	12 calculated under the Article was the highest by the number
11420	11420	13 of months (or years) of service in that period.
11421	11421	14 (b-5) Beginning on January 1, 2011, for all purposes under
11422	11422	15 this Code (including without limitation the calculation of
11423	11423	16 benefits and employee contributions), the annual earnings,
11424	11424	17 salary, or wages (based on the plan year) of a member or
11425	11425	18 participant to whom this Section applies shall not exceed
11426	11426	19 $106,800; however, that amount shall annually thereafter be
11427	11427	20 increased by the lesser of (i) 3% of that amount, including all
11428	11428	21 previous adjustments, or (ii) one-half the annual unadjusted
11429	11429	22 percentage increase (but not less than zero) in the consumer
11430	11430	23 price index-u for the 12 months ending with the September
11431	11431	24 preceding each November 1, including all previous adjustments.
11432	11432	25 For the purposes of this Section, "consumer price index-u"
11433	11433	26 means the index published by the Bureau of Labor Statistics of
11434	11434
11435	11435
11436	11436
11437	11437
11438	11438
11439	11439	HB4873 - 319 - LRB103 35886 RPS 65971 b
11440	11440
11441	11441
11442	11442	HB4873- 320 -LRB103 35886 RPS 65971 b HB4873 - 320 - LRB103 35886 RPS 65971 b
11443	11443	HB4873 - 320 - LRB103 35886 RPS 65971 b
11444	11444	1 the United States Department of Labor that measures the
11445	11445	2 average change in prices of goods and services purchased by
11446	11446	3 all urban consumers, United States city average, all items,
11447	11447	4 1982-84 = 100. The new amount resulting from each annual
11448	11448	5 adjustment shall be determined by the Public Pension Division
11449	11449	6 of the Department of Insurance and made available to the
11450	11450	7 boards of the retirement systems and pension funds by November
11451	11451	8 1 of each year.
11452	11452	9 (b-10) Beginning on January 1, 2024, for all purposes
11453	11453	10 under this Code (including, without limitation, the
11454	11454	11 calculation of benefits and employee contributions), the
11455	11455	12 annual earnings, salary, or wages (based on the plan year) of a
11456	11456	13 member or participant under Article 9 to whom this Section
11457	11457	14 applies shall include an annual earnings, salary, or wage cap
11458	11458	15 that tracks the Social Security wage base. Maximum annual
11459	11459	16 earnings, wages, or salary shall be the annual contribution
11460	11460	17 and benefit base established for the applicable year by the
11461	11461	18 Commissioner of the Social Security Administration under the
11462	11462	19 federal Social Security Act.
11463	11463	20 However, in no event shall the annual earnings, salary, or
11464	11464	21 wages for the purposes of this Article and Article 9 exceed any
11465	11465	22 limitation imposed on annual earnings, salary, or wages under
11466	11466	23 Section 1-117. Under no circumstances shall the maximum amount
11467	11467	24 of annual earnings, salary, or wages be greater than the
11468	11468	25 amount set forth in this subsection (b-10) as a result of
11469	11469	26 reciprocal service or any provisions regarding reciprocal
11470	11470
11471	11471
11472	11472
11473	11473
11474	11474
11475	11475	HB4873 - 320 - LRB103 35886 RPS 65971 b
11476	11476
11477	11477
11478	11478	HB4873- 321 -LRB103 35886 RPS 65971 b HB4873 - 321 - LRB103 35886 RPS 65971 b
11479	11479	HB4873 - 321 - LRB103 35886 RPS 65971 b
11480	11480	1 services, nor shall the Fund under Article 9 be required to pay
11481	11481	2 any refund as a result of the application of this maximum
11482	11482	3 annual earnings, salary, and wage cap.
11483	11483	4 Nothing in this subsection (b-10) shall cause or otherwise
11484	11484	5 result in any retroactive adjustment of any employee
11485	11485	6 contributions. Nothing in this subsection (b-10) shall cause
11486	11486	7 or otherwise result in any retroactive adjustment of
11487	11487	8 disability or other payments made between January 1, 2011 and
11488	11488	9 January 1, 2024.
11489	11489	10 (c) A member or participant is entitled to a retirement
11490	11490	11 annuity upon written application if he or she has attained age
11491	11491	12 67 (age 65, with respect to service under Article 12 that is
11492	11492	13 subject to this Section, for a member or participant under
11493	11493	14 Article 12 who first becomes a member or participant under
11494	11494	15 Article 12 on or after January 1, 2022 or who makes the
11495	11495	16 election under item (i) of subsection (d-15) of this Section)
11496	11496	17 and has at least 10 years of service credit and is otherwise
11497	11497	18 eligible under the requirements of the applicable Article.
11498	11498	19 A member or participant who has attained age 62 (age 60,
11499	11499	20 with respect to service under Article 12 that is subject to
11500	11500	21 this Section, for a member or participant under Article 12 who
11501	11501	22 first becomes a member or participant under Article 12 on or
11502	11502	23 after January 1, 2022 or who makes the election under item (i)
11503	11503	24 of subsection (d-15) of this Section) and has at least 10 years
11504	11504	25 of service credit and is otherwise eligible under the
11505	11505	26 requirements of the applicable Article may elect to receive
11506	11506
11507	11507
11508	11508
11509	11509
11510	11510
11511	11511	HB4873 - 321 - LRB103 35886 RPS 65971 b
11512	11512
11513	11513
11514	11514	HB4873- 322 -LRB103 35886 RPS 65971 b HB4873 - 322 - LRB103 35886 RPS 65971 b
11515	11515	HB4873 - 322 - LRB103 35886 RPS 65971 b
11516	11516	1 the lower retirement annuity provided in subsection (d) of
11517	11517	2 this Section.
11518	11518	3 (c-5) A person who first becomes a member or a participant
11519	11519	4 subject to this Section on or after July 6, 2017 (the effective
11520	11520	5 date of Public Act 100-23), notwithstanding any other
11521	11521	6 provision of this Code to the contrary, is entitled to a
11522	11522	7 retirement annuity under Article 8 or Article 11 upon written
11523	11523	8 application if he or she has attained age 65 and has at least
11524	11524	9 10 years of service credit and is otherwise eligible under the
11525	11525	10 requirements of Article 8 or Article 11 of this Code,
11526	11526	11 whichever is applicable.
11527	11527	12 (d) The retirement annuity of a member or participant who
11528	11528	13 is retiring after attaining age 62 (age 60, with respect to
11529	11529	14 service under Article 12 that is subject to this Section, for a
11530	11530	15 member or participant under Article 12 who first becomes a
11531	11531	16 member or participant under Article 12 on or after January 1,
11532	11532	17 2022 or who makes the election under item (i) of subsection
11533	11533	18 (d-15) of this Section) with at least 10 years of service
11534	11534	19 credit shall be reduced by one-half of 1% for each full month
11535	11535	20 that the member's age is under age 67 (age 65, with respect to
11536	11536	21 service under Article 12 that is subject to this Section, for a
11537	11537	22 member or participant under Article 12 who first becomes a
11538	11538	23 member or participant under Article 12 on or after January 1,
11539	11539	24 2022 or who makes the election under item (i) of subsection
11540	11540	25 (d-15) of this Section).
11541	11541	26 (d-5) The retirement annuity payable under Article 8 or
11542	11542
11543	11543
11544	11544
11545	11545
11546	11546
11547	11547	HB4873 - 322 - LRB103 35886 RPS 65971 b
11548	11548
11549	11549
11550	11550	HB4873- 323 -LRB103 35886 RPS 65971 b HB4873 - 323 - LRB103 35886 RPS 65971 b
11551	11551	HB4873 - 323 - LRB103 35886 RPS 65971 b
11552	11552	1 Article 11 to an eligible person subject to subsection (c-5)
11553	11553	2 of this Section who is retiring at age 60 with at least 10
11554	11554	3 years of service credit shall be reduced by one-half of 1% for
11555	11555	4 each full month that the member's age is under age 65.
11556	11556	5 (d-10) Each person who first became a member or
11557	11557	6 participant under Article 8 or Article 11 of this Code on or
11558	11558	7 after January 1, 2011 and prior to July 6, 2017 (the effective
11559	11559	8 date of Public Act 100-23) shall make an irrevocable election
11560	11560	9 either:
11561	11561	10 (i) to be eligible for the reduced retirement age
11562	11562	11 provided in subsections (c-5) and (d-5) of this Section,
11563	11563	12 the eligibility for which is conditioned upon the member
11564	11564	13 or participant agreeing to the increases in employee
11565	11565	14 contributions for age and service annuities provided in
11566	11566	15 subsection (a-5) of Section 8-174 of this Code (for
11567	11567	16 service under Article 8) or subsection (a-5) of Section
11568	11568	17 11-170 of this Code (for service under Article 11); or
11569	11569	18 (ii) to not agree to item (i) of this subsection
11570	11570	19 (d-10), in which case the member or participant shall
11571	11571	20 continue to be subject to the retirement age provisions in
11572	11572	21 subsections (c) and (d) of this Section and the employee
11573	11573	22 contributions for age and service annuity as provided in
11574	11574	23 subsection (a) of Section 8-174 of this Code (for service
11575	11575	24 under Article 8) or subsection (a) of Section 11-170 of
11576	11576	25 this Code (for service under Article 11).
11577	11577	26 The election provided for in this subsection shall be made
11578	11578
11579	11579
11580	11580
11581	11581
11582	11582
11583	11583	HB4873 - 323 - LRB103 35886 RPS 65971 b
11584	11584
11585	11585
11586	11586	HB4873- 324 -LRB103 35886 RPS 65971 b HB4873 - 324 - LRB103 35886 RPS 65971 b
11587	11587	HB4873 - 324 - LRB103 35886 RPS 65971 b
11588	11588	1 between October 1, 2017 and November 15, 2017. A person
11589	11589	2 subject to this subsection who makes the required election
11590	11590	3 shall remain bound by that election. A person subject to this
11591	11591	4 subsection who fails for any reason to make the required
11592	11592	5 election within the time specified in this subsection shall be
11593	11593	6 deemed to have made the election under item (ii).
11594	11594	7 (d-15) Each person who first becomes a member or
11595	11595	8 participant under Article 12 on or after January 1, 2011 and
11596	11596	9 prior to January 1, 2022 shall make an irrevocable election
11597	11597	10 either:
11598	11598	11 (i) to be eligible for the reduced retirement age
11599	11599	12 specified in subsections (c) and (d) of this Section, the
11600	11600	13 eligibility for which is conditioned upon the member or
11601	11601	14 participant agreeing to the increase in employee
11602	11602	15 contributions for service annuities specified in
11603	11603	16 subsection (b) of Section 12-150; or
11604	11604	17 (ii) to not agree to item (i) of this subsection
11605	11605	18 (d-15), in which case the member or participant shall not
11606	11606	19 be eligible for the reduced retirement age specified in
11607	11607	20 subsections (c) and (d) of this Section and shall not be
11608	11608	21 subject to the increase in employee contributions for
11609	11609	22 service annuities specified in subsection (b) of Section
11610	11610	23 12-150.
11611	11611	24 The election provided for in this subsection shall be made
11612	11612	25 between January 1, 2022 and April 1, 2022. A person subject to
11613	11613	26 this subsection who makes the required election shall remain
11614	11614
11615	11615
11616	11616
11617	11617
11618	11618
11619	11619	HB4873 - 324 - LRB103 35886 RPS 65971 b
11620	11620
11621	11621
11622	11622	HB4873- 325 -LRB103 35886 RPS 65971 b HB4873 - 325 - LRB103 35886 RPS 65971 b
11623	11623	HB4873 - 325 - LRB103 35886 RPS 65971 b
11624	11624	1 bound by that election. A person subject to this subsection
11625	11625	2 who fails for any reason to make the required election within
11626	11626	3 the time specified in this subsection shall be deemed to have
11627	11627	4 made the election under item (ii).
11628	11628	5 (e) Any retirement annuity or supplemental annuity shall
11629	11629	6 be subject to annual increases on the January 1 occurring
11630	11630	7 either on or after the attainment of age 67 (age 65, with
11631	11631	8 respect to service under Article 12 that is subject to this
11632	11632	9 Section, for a member or participant under Article 12 who
11633	11633	10 first becomes a member or participant under Article 12 on or
11634	11634	11 after January 1, 2022 or who makes the election under item (i)
11635	11635	12 of subsection (d-15); and beginning on July 6, 2017 (the
11636	11636	13 effective date of Public Act 100-23), age 65 with respect to
11637	11637	14 service under Article 8 or Article 11 for eligible persons
11638	11638	15 who: (i) are subject to subsection (c-5) of this Section; or
11639	11639	16 (ii) made the election under item (i) of subsection (d-10) of
11640	11640	17 this Section) or the first anniversary of the annuity start
11641	11641	18 date, whichever is later. Each annual increase shall be
11642	11642	19 calculated at 3% or one-half the annual unadjusted percentage
11643	11643	20 increase (but not less than zero) in the consumer price
11644	11644	21 index-u for the 12 months ending with the September preceding
11645	11645	22 each November 1, whichever is less, of the originally granted
11646	11646	23 retirement annuity. If the annual unadjusted percentage change
11647	11647	24 in the consumer price index-u for the 12 months ending with the
11648	11648	25 September preceding each November 1 is zero or there is a
11649	11649	26 decrease, then the annuity shall not be increased.
11650	11650
11651	11651
11652	11652
11653	11653
11654	11654
11655	11655	HB4873 - 325 - LRB103 35886 RPS 65971 b
11656	11656
11657	11657
11658	11658	HB4873- 326 -LRB103 35886 RPS 65971 b HB4873 - 326 - LRB103 35886 RPS 65971 b
11659	11659	HB4873 - 326 - LRB103 35886 RPS 65971 b
11660	11660	1 For the purposes of Section 1-103.1 of this Code, the
11661	11661	2 changes made to this Section by Public Act 102-263 are
11662	11662	3 applicable without regard to whether the employee was in
11663	11663	4 active service on or after August 6, 2021 (the effective date
11664	11664	5 of Public Act 102-263).
11665	11665	6 For the purposes of Section 1-103.1 of this Code, the
11666	11666	7 changes made to this Section by Public Act 100-23 are
11667	11667	8 applicable without regard to whether the employee was in
11668	11668	9 active service on or after July 6, 2017 (the effective date of
11669	11669	10 Public Act 100-23).
11670	11670	11 (f) The initial survivor's or widow's annuity of an
11671	11671	12 otherwise eligible survivor or widow of a retired member or
11672	11672	13 participant who first became a member or participant on or
11673	11673	14 after January 1, 2011 shall be in the amount of 66 2/3% of the
11674	11674	15 retired member's or participant's retirement annuity at the
11675	11675	16 date of death. In the case of the death of a member or
11676	11676	17 participant who has not retired and who first became a member
11677	11677	18 or participant on or after January 1, 2011, eligibility for a
11678	11678	19 survivor's or widow's annuity shall be determined by the
11679	11679	20 applicable Article of this Code. The initial benefit shall be
11680	11680	21 66 2/3% of the earned annuity without a reduction due to age. A
11681	11681	22 child's annuity of an otherwise eligible child shall be in the
11682	11682	23 amount prescribed under each Article if applicable. Any
11683	11683	24 survivor's or widow's annuity shall be increased (1) on each
11684	11684	25 January 1 occurring on or after the commencement of the
11685	11685	26 annuity if the deceased member died while receiving a
11686	11686
11687	11687
11688	11688
11689	11689
11690	11690
11691	11691	HB4873 - 326 - LRB103 35886 RPS 65971 b
11692	11692
11693	11693
11694	11694	HB4873- 327 -LRB103 35886 RPS 65971 b HB4873 - 327 - LRB103 35886 RPS 65971 b
11695	11695	HB4873 - 327 - LRB103 35886 RPS 65971 b
11696	11696	1 retirement annuity or (2) in other cases, on each January 1
11697	11697	2 occurring after the first anniversary of the commencement of
11698	11698	3 the annuity. Each annual increase shall be calculated at 3% or
11699	11699	4 one-half the annual unadjusted percentage increase (but not
11700	11700	5 less than zero) in the consumer price index-u for the 12 months
11701	11701	6 ending with the September preceding each November 1, whichever
11702	11702	7 is less, of the originally granted survivor's annuity. If the
11703	11703	8 annual unadjusted percentage change in the consumer price
11704	11704	9 index-u for the 12 months ending with the September preceding
11705	11705	10 each November 1 is zero or there is a decrease, then the
11706	11706	11 annuity shall not be increased.
11707	11707	12 (g) The benefits in Section 14-110 apply if the person is a
11708	11708	13 fire fighter in the fire protection service of a department, a
11709	11709	14 security employee of the Department of Corrections or the
11710	11710	15 Department of Juvenile Justice, or a security employee of the
11711	11711	16 Department of Innovation and Technology, as those terms are
11712	11712	17 defined in subsection (b) and subsection (c) of Section
11713	11713	18 14-110. A person who meets the requirements of this Section is
11714	11714	19 entitled to an annuity calculated under the provisions of
11715	11715	20 Section 14-110, in lieu of the regular or minimum retirement
11716	11716	21 annuity, only if the person has withdrawn from service with
11717	11717	22 not less than 20 years of eligible creditable service and has
11718	11718	23 attained age 60, regardless of whether the attainment of age
11719	11719	24 60 occurs while the person is still in service.
11720	11720	25 (g-1) The benefits in Section 14-110 apply if the person
11721	11721	26 is a security employee of the Department of Corrections or the
11722	11722
11723	11723
11724	11724
11725	11725
11726	11726
11727	11727	HB4873 - 327 - LRB103 35886 RPS 65971 b
11728	11728
11729	11729
11730	11730	HB4873- 328 -LRB103 35886 RPS 65971 b HB4873 - 328 - LRB103 35886 RPS 65971 b
11731	11731	HB4873 - 328 - LRB103 35886 RPS 65971 b
11732	11732	1 Department of Juvenile Justice, a security employee of the
11733	11733	2 Department of Human Services, or an investigator for the
11734	11734	3 Department of the Lottery, as those terms are defined in
11735	11735	4 subsection (b) and subsection (c) of Section 14-110. A person
11736	11736	5 who meets the requirements of this Section is entitled to an
11737	11737	6 annuity calculated under the provisions of Section 14-110, in
11738	11738	7 lieu of the regular or minimum retirement annuity, only if the
11739	11739	8 person has withdrawn from service with not less than 20 years
11740	11740	9 of eligible creditable service and has attained age 55,
11741	11741	10 regardless of whether the attainment of age 55 occurs while
11742	11742	11 the person is still in service.
11743	11743	12 (g-5) The benefits in Section 14-110 apply if the person
11744	11744	13 is a State policeman, investigator for the Secretary of State,
11745	11745	14 conservation police officer, investigator for the Department
11746	11746	15 of Revenue or the Illinois Gaming Board, investigator for the
11747	11747	16 Office of the Attorney General, Commerce Commission police
11748	11748	17 officer, or arson investigator, as those terms are defined in
11749	11749	18 subsection (b) and subsection (c) of Section 14-110. A person
11750	11750	19 who meets the requirements of this Section is entitled to an
11751	11751	20 annuity calculated under the provisions of Section 14-110, in
11752	11752	21 lieu of the regular or minimum retirement annuity, only if the
11753	11753	22 person has withdrawn from service with not less than 20 years
11754	11754	23 of eligible creditable service and has attained age 55,
11755	11755	24 regardless of whether the attainment of age 55 occurs while
11756	11756	25 the person is still in service.
11757	11757	26 (h) If a person who first becomes a member or a participant
11758	11758
11759	11759
11760	11760
11761	11761
11762	11762
11763	11763	HB4873 - 328 - LRB103 35886 RPS 65971 b
11764	11764
11765	11765
11766	11766	HB4873- 329 -LRB103 35886 RPS 65971 b HB4873 - 329 - LRB103 35886 RPS 65971 b
11767	11767	HB4873 - 329 - LRB103 35886 RPS 65971 b
11768	11768	1 of a retirement system or pension fund subject to this Section
11769	11769	2 on or after January 1, 2011 is receiving a retirement annuity
11770	11770	3 or retirement pension under that system or fund and becomes a
11771	11771	4 member or participant under any other system or fund created
11772	11772	5 by this Code and is employed on a full-time basis, except for
11773	11773	6 those members or participants exempted from the provisions of
11774	11774	7 this Section under subsection (a) of this Section, then the
11775	11775	8 person's retirement annuity or retirement pension under that
11776	11776	9 system or fund shall be suspended during that employment. Upon
11777	11777	10 termination of that employment, the person's retirement
11778	11778	11 annuity or retirement pension payments shall resume and be
11779	11779	12 recalculated if recalculation is provided for under the
11780	11780	13 applicable Article of this Code.
11781	11781	14 If a person who first becomes a member of a retirement
11782	11782	15 system or pension fund subject to this Section on or after
11783	11783	16 January 1, 2012 and is receiving a retirement annuity or
11784	11784	17 retirement pension under that system or fund and accepts on a
11785	11785	18 contractual basis a position to provide services to a
11786	11786	19 governmental entity from which he or she has retired, then
11787	11787	20 that person's annuity or retirement pension earned as an
11788	11788	21 active employee of the employer shall be suspended during that
11789	11789	22 contractual service. A person receiving an annuity or
11790	11790	23 retirement pension under this Code shall notify the pension
11791	11791	24 fund or retirement system from which he or she is receiving an
11792	11792	25 annuity or retirement pension, as well as his or her
11793	11793	26 contractual employer, of his or her retirement status before
11794	11794
11795	11795
11796	11796
11797	11797
11798	11798
11799	11799	HB4873 - 329 - LRB103 35886 RPS 65971 b
11800	11800
11801	11801
11802	11802	HB4873- 330 -LRB103 35886 RPS 65971 b HB4873 - 330 - LRB103 35886 RPS 65971 b
11803	11803	HB4873 - 330 - LRB103 35886 RPS 65971 b
11804	11804	1 accepting contractual employment. A person who fails to submit
11805	11805	2 such notification shall be guilty of a Class A misdemeanor and
11806	11806	3 required to pay a fine of $1,000. Upon termination of that
11807	11807	4 contractual employment, the person's retirement annuity or
11808	11808	5 retirement pension payments shall resume and, if appropriate,
11809	11809	6 be recalculated under the applicable provisions of this Code.
11810	11810	7 (i) (Blank).
11811	11811	8 (j) In the case of a conflict between the provisions of
11812	11812	9 this Section and any other provision of this Code, the
11813	11813	10 provisions of this Section shall control.
11814	11814	11 (Source: P.A. 101-610, eff. 1-1-20; 102-16, eff. 6-17-21;
11815	11815	12 102-210, eff. 1-1-22; 102-263, eff. 8-6-21; 102-719, eff.
11816	11816	13 5-6-22.)
11817	11817	14 (Text of Section from P.A. 102-813)
11818	11818	15 Sec. 1-160. Provisions applicable to new hires.
11819	11819	16 (a) The provisions of this Section apply to a person who,
11820	11820	17 on or after January 1, 2011, first becomes a member or a
11821	11821	18 participant under any reciprocal retirement system or pension
11822	11822	19 fund established under this Code, other than a retirement
11823	11823	20 system or pension fund established under Article 2, 3, 4, 5, 6,
11824	11824	21 7, 15, or 18 of this Code, notwithstanding any other provision
11825	11825	22 of this Code to the contrary, but do not apply to any
11826	11826	23 self-managed plan established under this Code or to any
11827	11827	24 participant of the retirement plan established under Section
11828	11828	25 22-101; except that this Section applies to a person who
11829	11829
11830	11830
11831	11831
11832	11832
11833	11833
11834	11834	HB4873 - 330 - LRB103 35886 RPS 65971 b
11835	11835
11836	11836
11837	11837	HB4873- 331 -LRB103 35886 RPS 65971 b HB4873 - 331 - LRB103 35886 RPS 65971 b
11838	11838	HB4873 - 331 - LRB103 35886 RPS 65971 b
11839	11839	1 elected to establish alternative credits by electing in
11840	11840	2 writing after January 1, 2011, but before August 8, 2011,
11841	11841	3 under Section 7-145.1 of this Code. Notwithstanding anything
11842	11842	4 to the contrary in this Section, for purposes of this Section,
11843	11843	5 a person who is a Tier 1 regular employee as defined in Section
11844	11844	6 7-109.4 of this Code or who participated in a retirement
11845	11845	7 system under Article 15 prior to January 1, 2011 shall be
11846	11846	8 deemed a person who first became a member or participant prior
11847	11847	9 to January 1, 2011 under any retirement system or pension fund
11848	11848	10 subject to this Section. The changes made to this Section by
11849	11849	11 Public Act 98-596 are a clarification of existing law and are
11850	11850	12 intended to be retroactive to January 1, 2011 (the effective
11851	11851	13 date of Public Act 96-889), notwithstanding the provisions of
11852	11852	14 Section 1-103.1 of this Code.
11853	11853	15 This Section does not apply to a person who first becomes a
11854	11854	16 noncovered employee under Article 14 on or after the
11855	11855	17 implementation date of the plan created under Section 1-161
11856	11856	18 for that Article, unless that person elects under subsection
11857	11857	19 (b) of Section 1-161 to instead receive the benefits provided
11858	11858	20 under this Section and the applicable provisions of that
11859	11859	21 Article.
11860	11860	22 This Section does not apply to a person who first becomes a
11861	11861	23 member or participant under Article 16 on or after the
11862	11862	24 implementation date of the plan created under Section 1-161
11863	11863	25 for that Article, unless that person elects under subsection
11864	11864	26 (b) of Section 1-161 to instead receive the benefits provided
11865	11865
11866	11866
11867	11867
11868	11868
11869	11869
11870	11870	HB4873 - 331 - LRB103 35886 RPS 65971 b
11871	11871
11872	11872
11873	11873	HB4873- 332 -LRB103 35886 RPS 65971 b HB4873 - 332 - LRB103 35886 RPS 65971 b
11874	11874	HB4873 - 332 - LRB103 35886 RPS 65971 b
11875	11875	1 under this Section and the applicable provisions of that
11876	11876	2 Article.
11877	11877	3 This Section does not apply to a person who elects under
11878	11878	4 subsection (c-5) of Section 1-161 to receive the benefits
11879	11879	5 under Section 1-161.
11880	11880	6 This Section does not apply to a person who first becomes a
11881	11881	7 member or participant of an affected pension fund on or after 6
11882	11882	8 months after the resolution or ordinance date, as defined in
11883	11883	9 Section 1-162, unless that person elects under subsection (c)
11884	11884	10 of Section 1-162 to receive the benefits provided under this
11885	11885	11 Section and the applicable provisions of the Article under
11886	11886	12 which he or she is a member or participant.
11887	11887	13 (b) "Final average salary" means, except as otherwise
11888	11888	14 provided in this subsection, the average monthly (or annual)
11889	11889	15 salary obtained by dividing the total salary or earnings
11890	11890	16 calculated under the Article applicable to the member or
11891	11891	17 participant during the 96 consecutive months (or 8 consecutive
11892	11892	18 years) of service within the last 120 months (or 10 years) of
11893	11893	19 service in which the total salary or earnings calculated under
11894	11894	20 the applicable Article was the highest by the number of months
11895	11895	21 (or years) of service in that period. For the purposes of a
11896	11896	22 person who first becomes a member or participant of any
11897	11897	23 retirement system or pension fund to which this Section
11898	11898	24 applies on or after January 1, 2011, in this Code, "final
11899	11899	25 average salary" shall be substituted for the following:
11900	11900	26 (1) (Blank).
11901	11901
11902	11902
11903	11903
11904	11904
11905	11905
11906	11906	HB4873 - 332 - LRB103 35886 RPS 65971 b
11907	11907
11908	11908
11909	11909	HB4873- 333 -LRB103 35886 RPS 65971 b HB4873 - 333 - LRB103 35886 RPS 65971 b
11910	11910	HB4873 - 333 - LRB103 35886 RPS 65971 b
11911	11911	1 (2) In Articles 8, 9, 10, 11, and 12, "highest average
11912	11912	2 annual salary for any 4 consecutive years within the last
11913	11913	3 10 years of service immediately preceding the date of
11914	11914	4 withdrawal".
11915	11915	5 (3) In Article 13, "average final salary".
11916	11916	6 (4) In Article 14, "final average compensation".
11917	11917	7 (5) In Article 17, "average salary".
11918	11918	8 (6) In Section 22-207, "wages or salary received by
11919	11919	9 him at the date of retirement or discharge".
11920	11920	10 A member of the Teachers' Retirement System of the State
11921	11921	11 of Illinois who retires on or after June 1, 2021 and for whom
11922	11922	12 the 2020-2021 school year is used in the calculation of the
11923	11923	13 member's final average salary shall use the higher of the
11924	11924	14 following for the purpose of determining the member's final
11925	11925	15 average salary:
11926	11926	16 (A) the amount otherwise calculated under the first
11927	11927	17 paragraph of this subsection; or
11928	11928	18 (B) an amount calculated by the Teachers' Retirement
11929	11929	19 System of the State of Illinois using the average of the
11930	11930	20 monthly (or annual) salary obtained by dividing the total
11931	11931	21 salary or earnings calculated under Article 16 applicable
11932	11932	22 to the member or participant during the 96 months (or 8
11933	11933	23 years) of service within the last 120 months (or 10 years)
11934	11934	24 of service in which the total salary or earnings
11935	11935	25 calculated under the Article was the highest by the number
11936	11936	26 of months (or years) of service in that period.
11937	11937
11938	11938
11939	11939
11940	11940
11941	11941
11942	11942	HB4873 - 333 - LRB103 35886 RPS 65971 b
11943	11943
11944	11944
11945	11945	HB4873- 334 -LRB103 35886 RPS 65971 b HB4873 - 334 - LRB103 35886 RPS 65971 b
11946	11946	HB4873 - 334 - LRB103 35886 RPS 65971 b
11947	11947	1 (b-5) Beginning on January 1, 2011, for all purposes under
11948	11948	2 this Code (including without limitation the calculation of
11949	11949	3 benefits and employee contributions), the annual earnings,
11950	11950	4 salary, or wages (based on the plan year) of a member or
11951	11951	5 participant to whom this Section applies shall not exceed
11952	11952	6 $106,800; however, that amount shall annually thereafter be
11953	11953	7 increased by the lesser of (i) 3% of that amount, including all
11954	11954	8 previous adjustments, or (ii) one-half the annual unadjusted
11955	11955	9 percentage increase (but not less than zero) in the consumer
11956	11956	10 price index-u for the 12 months ending with the September
11957	11957	11 preceding each November 1, including all previous adjustments.
11958	11958	12 For the purposes of this Section, "consumer price index-u"
11959	11959	13 means the index published by the Bureau of Labor Statistics of
11960	11960	14 the United States Department of Labor that measures the
11961	11961	15 average change in prices of goods and services purchased by
11962	11962	16 all urban consumers, United States city average, all items,
11963	11963	17 1982-84 = 100. The new amount resulting from each annual
11964	11964	18 adjustment shall be determined by the Public Pension Division
11965	11965	19 of the Department of Insurance and made available to the
11966	11966	20 boards of the retirement systems and pension funds by November
11967	11967	21 1 of each year.
11968	11968	22 (b-10) Beginning on January 1, 2024, for all purposes
11969	11969	23 under this Code (including, without limitation, the
11970	11970	24 calculation of benefits and employee contributions), the
11971	11971	25 annual earnings, salary, or wages (based on the plan year) of a
11972	11972	26 member or participant under Article 9 to whom this Section
11973	11973
11974	11974
11975	11975
11976	11976
11977	11977
11978	11978	HB4873 - 334 - LRB103 35886 RPS 65971 b
11979	11979
11980	11980
11981	11981	HB4873- 335 -LRB103 35886 RPS 65971 b HB4873 - 335 - LRB103 35886 RPS 65971 b
11982	11982	HB4873 - 335 - LRB103 35886 RPS 65971 b
11983	11983	1 applies shall include an annual earnings, salary, or wage cap
11984	11984	2 that tracks the Social Security wage base. Maximum annual
11985	11985	3 earnings, wages, or salary shall be the annual contribution
11986	11986	4 and benefit base established for the applicable year by the
11987	11987	5 Commissioner of the Social Security Administration under the
11988	11988	6 federal Social Security Act.
11989	11989	7 However, in no event shall the annual earnings, salary, or
11990	11990	8 wages for the purposes of this Article and Article 9 exceed any
11991	11991	9 limitation imposed on annual earnings, salary, or wages under
11992	11992	10 Section 1-117. Under no circumstances shall the maximum amount
11993	11993	11 of annual earnings, salary, or wages be greater than the
11994	11994	12 amount set forth in this subsection (b-10) as a result of
11995	11995	13 reciprocal service or any provisions regarding reciprocal
11996	11996	14 services, nor shall the Fund under Article 9 be required to pay
11997	11997	15 any refund as a result of the application of this maximum
11998	11998	16 annual earnings, salary, and wage cap.
11999	11999	17 Nothing in this subsection (b-10) shall cause or otherwise
12000	12000	18 result in any retroactive adjustment of any employee
12001	12001	19 contributions. Nothing in this subsection (b-10) shall cause
12002	12002	20 or otherwise result in any retroactive adjustment of
12003	12003	21 disability or other payments made between January 1, 2011 and
12004	12004	22 January 1, 2024.
12005	12005	23 (c) A member or participant is entitled to a retirement
12006	12006	24 annuity upon written application if he or she has attained age
12007	12007	25 67 (age 65, with respect to service under Article 12 that is
12008	12008	26 subject to this Section, for a member or participant under
12009	12009
12010	12010
12011	12011
12012	12012
12013	12013
12014	12014	HB4873 - 335 - LRB103 35886 RPS 65971 b
12015	12015
12016	12016
12017	12017	HB4873- 336 -LRB103 35886 RPS 65971 b HB4873 - 336 - LRB103 35886 RPS 65971 b
12018	12018	HB4873 - 336 - LRB103 35886 RPS 65971 b
12019	12019	1 Article 12 who first becomes a member or participant under
12020	12020	2 Article 12 on or after January 1, 2022 or who makes the
12021	12021	3 election under item (i) of subsection (d-15) of this Section)
12022	12022	4 and has at least 10 years of service credit and is otherwise
12023	12023	5 eligible under the requirements of the applicable Article.
12024	12024	6 A member or participant who has attained age 62 (age 60,
12025	12025	7 with respect to service under Article 12 that is subject to
12026	12026	8 this Section, for a member or participant under Article 12 who
12027	12027	9 first becomes a member or participant under Article 12 on or
12028	12028	10 after January 1, 2022 or who makes the election under item (i)
12029	12029	11 of subsection (d-15) of this Section) and has at least 10 years
12030	12030	12 of service credit and is otherwise eligible under the
12031	12031	13 requirements of the applicable Article may elect to receive
12032	12032	14 the lower retirement annuity provided in subsection (d) of
12033	12033	15 this Section.
12034	12034	16 (c-5) A person who first becomes a member or a participant
12035	12035	17 subject to this Section on or after July 6, 2017 (the effective
12036	12036	18 date of Public Act 100-23), notwithstanding any other
12037	12037	19 provision of this Code to the contrary, is entitled to a
12038	12038	20 retirement annuity under Article 8 or Article 11 upon written
12039	12039	21 application if he or she has attained age 65 and has at least
12040	12040	22 10 years of service credit and is otherwise eligible under the
12041	12041	23 requirements of Article 8 or Article 11 of this Code,
12042	12042	24 whichever is applicable.
12043	12043	25 (d) The retirement annuity of a member or participant who
12044	12044	26 is retiring after attaining age 62 (age 60, with respect to
12045	12045
12046	12046
12047	12047
12048	12048
12049	12049
12050	12050	HB4873 - 336 - LRB103 35886 RPS 65971 b
12051	12051
12052	12052
12053	12053	HB4873- 337 -LRB103 35886 RPS 65971 b HB4873 - 337 - LRB103 35886 RPS 65971 b
12054	12054	HB4873 - 337 - LRB103 35886 RPS 65971 b
12055	12055	1 service under Article 12 that is subject to this Section, for a
12056	12056	2 member or participant under Article 12 who first becomes a
12057	12057	3 member or participant under Article 12 on or after January 1,
12058	12058	4 2022 or who makes the election under item (i) of subsection
12059	12059	5 (d-15) of this Section) with at least 10 years of service
12060	12060	6 credit shall be reduced by one-half of 1% for each full month
12061	12061	7 that the member's age is under age 67 (age 65, with respect to
12062	12062	8 service under Article 12 that is subject to this Section, for a
12063	12063	9 member or participant under Article 12 who first becomes a
12064	12064	10 member or participant under Article 12 on or after January 1,
12065	12065	11 2022 or who makes the election under item (i) of subsection
12066	12066	12 (d-15) of this Section).
12067	12067	13 (d-5) The retirement annuity payable under Article 8 or
12068	12068	14 Article 11 to an eligible person subject to subsection (c-5)
12069	12069	15 of this Section who is retiring at age 60 with at least 10
12070	12070	16 years of service credit shall be reduced by one-half of 1% for
12071	12071	17 each full month that the member's age is under age 65.
12072	12072	18 (d-10) Each person who first became a member or
12073	12073	19 participant under Article 8 or Article 11 of this Code on or
12074	12074	20 after January 1, 2011 and prior to July 6, 2017 (the effective
12075	12075	21 date of Public Act 100-23) shall make an irrevocable election
12076	12076	22 either:
12077	12077	23 (i) to be eligible for the reduced retirement age
12078	12078	24 provided in subsections (c-5) and (d-5) of this Section,
12079	12079	25 the eligibility for which is conditioned upon the member
12080	12080	26 or participant agreeing to the increases in employee
12081	12081
12082	12082
12083	12083
12084	12084
12085	12085
12086	12086	HB4873 - 337 - LRB103 35886 RPS 65971 b
12087	12087
12088	12088
12089	12089	HB4873- 338 -LRB103 35886 RPS 65971 b HB4873 - 338 - LRB103 35886 RPS 65971 b
12090	12090	HB4873 - 338 - LRB103 35886 RPS 65971 b
12091	12091	1 contributions for age and service annuities provided in
12092	12092	2 subsection (a-5) of Section 8-174 of this Code (for
12093	12093	3 service under Article 8) or subsection (a-5) of Section
12094	12094	4 11-170 of this Code (for service under Article 11); or
12095	12095	5 (ii) to not agree to item (i) of this subsection
12096	12096	6 (d-10), in which case the member or participant shall
12097	12097	7 continue to be subject to the retirement age provisions in
12098	12098	8 subsections (c) and (d) of this Section and the employee
12099	12099	9 contributions for age and service annuity as provided in
12100	12100	10 subsection (a) of Section 8-174 of this Code (for service
12101	12101	11 under Article 8) or subsection (a) of Section 11-170 of
12102	12102	12 this Code (for service under Article 11).
12103	12103	13 The election provided for in this subsection shall be made
12104	12104	14 between October 1, 2017 and November 15, 2017. A person
12105	12105	15 subject to this subsection who makes the required election
12106	12106	16 shall remain bound by that election. A person subject to this
12107	12107	17 subsection who fails for any reason to make the required
12108	12108	18 election within the time specified in this subsection shall be
12109	12109	19 deemed to have made the election under item (ii).
12110	12110	20 (d-15) Each person who first becomes a member or
12111	12111	21 participant under Article 12 on or after January 1, 2011 and
12112	12112	22 prior to January 1, 2022 shall make an irrevocable election
12113	12113	23 either:
12114	12114	24 (i) to be eligible for the reduced retirement age
12115	12115	25 specified in subsections (c) and (d) of this Section, the
12116	12116	26 eligibility for which is conditioned upon the member or
12117	12117
12118	12118
12119	12119
12120	12120
12121	12121
12122	12122	HB4873 - 338 - LRB103 35886 RPS 65971 b
12123	12123
12124	12124
12125	12125	HB4873- 339 -LRB103 35886 RPS 65971 b HB4873 - 339 - LRB103 35886 RPS 65971 b
12126	12126	HB4873 - 339 - LRB103 35886 RPS 65971 b
12127	12127	1 participant agreeing to the increase in employee
12128	12128	2 contributions for service annuities specified in
12129	12129	3 subsection (b) of Section 12-150; or
12130	12130	4 (ii) to not agree to item (i) of this subsection
12131	12131	5 (d-15), in which case the member or participant shall not
12132	12132	6 be eligible for the reduced retirement age specified in
12133	12133	7 subsections (c) and (d) of this Section and shall not be
12134	12134	8 subject to the increase in employee contributions for
12135	12135	9 service annuities specified in subsection (b) of Section
12136	12136	10 12-150.
12137	12137	11 The election provided for in this subsection shall be made
12138	12138	12 between January 1, 2022 and April 1, 2022. A person subject to
12139	12139	13 this subsection who makes the required election shall remain
12140	12140	14 bound by that election. A person subject to this subsection
12141	12141	15 who fails for any reason to make the required election within
12142	12142	16 the time specified in this subsection shall be deemed to have
12143	12143	17 made the election under item (ii).
12144	12144	18 (e) Any retirement annuity or supplemental annuity shall
12145	12145	19 be subject to annual increases on the January 1 occurring
12146	12146	20 either on or after the attainment of age 67 (age 65, with
12147	12147	21 respect to service under Article 12 that is subject to this
12148	12148	22 Section, for a member or participant under Article 12 who
12149	12149	23 first becomes a member or participant under Article 12 on or
12150	12150	24 after January 1, 2022 or who makes the election under item (i)
12151	12151	25 of subsection (d-15); and beginning on July 6, 2017 (the
12152	12152	26 effective date of Public Act 100-23), age 65 with respect to
12153	12153
12154	12154
12155	12155
12156	12156
12157	12157
12158	12158	HB4873 - 339 - LRB103 35886 RPS 65971 b
12159	12159
12160	12160
12161	12161	HB4873- 340 -LRB103 35886 RPS 65971 b HB4873 - 340 - LRB103 35886 RPS 65971 b
12162	12162	HB4873 - 340 - LRB103 35886 RPS 65971 b
12163	12163	1 service under Article 8 or Article 11 for eligible persons
12164	12164	2 who: (i) are subject to subsection (c-5) of this Section; or
12165	12165	3 (ii) made the election under item (i) of subsection (d-10) of
12166	12166	4 this Section) or the first anniversary of the annuity start
12167	12167	5 date, whichever is later. Each annual increase shall be
12168	12168	6 calculated at 3% or one-half the annual unadjusted percentage
12169	12169	7 increase (but not less than zero) in the consumer price
12170	12170	8 index-u for the 12 months ending with the September preceding
12171	12171	9 each November 1, whichever is less, of the originally granted
12172	12172	10 retirement annuity. If the annual unadjusted percentage change
12173	12173	11 in the consumer price index-u for the 12 months ending with the
12174	12174	12 September preceding each November 1 is zero or there is a
12175	12175	13 decrease, then the annuity shall not be increased.
12176	12176	14 For the purposes of Section 1-103.1 of this Code, the
12177	12177	15 changes made to this Section by Public Act 102-263 are
12178	12178	16 applicable without regard to whether the employee was in
12179	12179	17 active service on or after August 6, 2021 (the effective date
12180	12180	18 of Public Act 102-263).
12181	12181	19 For the purposes of Section 1-103.1 of this Code, the
12182	12182	20 changes made to this Section by Public Act 100-23 are
12183	12183	21 applicable without regard to whether the employee was in
12184	12184	22 active service on or after July 6, 2017 (the effective date of
12185	12185	23 Public Act 100-23).
12186	12186	24 (f) The initial survivor's or widow's annuity of an
12187	12187	25 otherwise eligible survivor or widow of a retired member or
12188	12188	26 participant who first became a member or participant on or
12189	12189
12190	12190
12191	12191
12192	12192
12193	12193
12194	12194	HB4873 - 340 - LRB103 35886 RPS 65971 b
12195	12195
12196	12196
12197	12197	HB4873- 341 -LRB103 35886 RPS 65971 b HB4873 - 341 - LRB103 35886 RPS 65971 b
12198	12198	HB4873 - 341 - LRB103 35886 RPS 65971 b
12199	12199	1 after January 1, 2011 shall be in the amount of 66 2/3% of the
12200	12200	2 retired member's or participant's retirement annuity at the
12201	12201	3 date of death. In the case of the death of a member or
12202	12202	4 participant who has not retired and who first became a member
12203	12203	5 or participant on or after January 1, 2011, eligibility for a
12204	12204	6 survivor's or widow's annuity shall be determined by the
12205	12205	7 applicable Article of this Code. The initial benefit shall be
12206	12206	8 66 2/3% of the earned annuity without a reduction due to age. A
12207	12207	9 child's annuity of an otherwise eligible child shall be in the
12208	12208	10 amount prescribed under each Article if applicable. Any
12209	12209	11 survivor's or widow's annuity shall be increased (1) on each
12210	12210	12 January 1 occurring on or after the commencement of the
12211	12211	13 annuity if the deceased member died while receiving a
12212	12212	14 retirement annuity or (2) in other cases, on each January 1
12213	12213	15 occurring after the first anniversary of the commencement of
12214	12214	16 the annuity. Each annual increase shall be calculated at 3% or
12215	12215	17 one-half the annual unadjusted percentage increase (but not
12216	12216	18 less than zero) in the consumer price index-u for the 12 months
12217	12217	19 ending with the September preceding each November 1, whichever
12218	12218	20 is less, of the originally granted survivor's annuity. If the
12219	12219	21 annual unadjusted percentage change in the consumer price
12220	12220	22 index-u for the 12 months ending with the September preceding
12221	12221	23 each November 1 is zero or there is a decrease, then the
12222	12222	24 annuity shall not be increased.
12223	12223	25 (g) The benefits in Section 14-110 apply only if the
12224	12224	26 person is a State policeman, a fire fighter in the fire
12225	12225
12226	12226
12227	12227
12228	12228
12229	12229
12230	12230	HB4873 - 341 - LRB103 35886 RPS 65971 b
12231	12231
12232	12232
12233	12233	HB4873- 342 -LRB103 35886 RPS 65971 b HB4873 - 342 - LRB103 35886 RPS 65971 b
12234	12234	HB4873 - 342 - LRB103 35886 RPS 65971 b
12235	12235	1 protection service of a department, a conservation police
12236	12236	2 officer, an investigator for the Secretary of State, an arson
12237	12237	3 investigator, a Commerce Commission police officer,
12238	12238	4 investigator for the Department of Revenue or the Illinois
12239	12239	5 Gaming Board, a security employee of the Department of
12240	12240	6 Corrections or the Department of Juvenile Justice, or a
12241	12241	7 security employee of the Department of Innovation and
12242	12242	8 Technology, as those terms are defined in subsection (b) and
12243	12243	9 subsection (c) of Section 14-110. A person who meets the
12244	12244	10 requirements of this Section is entitled to an annuity
12245	12245	11 calculated under the provisions of Section 14-110, in lieu of
12246	12246	12 the regular or minimum retirement annuity, only if the person
12247	12247	13 has withdrawn from service with not less than 20 years of
12248	12248	14 eligible creditable service and has attained age 60,
12249	12249	15 regardless of whether the attainment of age 60 occurs while
12250	12250	16 the person is still in service.
12251	12251	17 (g-1) The benefits in Section 14-110 apply if the person
12252	12252	18 is a security employee of the Department of Corrections or the
12253	12253	19 Department of Juvenile Justice, a security employee of the
12254	12254	20 Department of Human Services, or an investigator for the
12255	12255	21 Department of the Lottery, as those terms are defined in
12256	12256	22 subsection (b) and subsection (c) of Section 14-110. A person
12257	12257	23 who meets the requirements of this Section is entitled to an
12258	12258	24 annuity calculated under the provisions of Section 14-110, in
12259	12259	25 lieu of the regular or minimum retirement annuity, only if the
12260	12260	26 person has withdrawn from service with not less than 20 years
12261	12261
12262	12262
12263	12263
12264	12264
12265	12265
12266	12266	HB4873 - 342 - LRB103 35886 RPS 65971 b
12267	12267
12268	12268
12269	12269	HB4873- 343 -LRB103 35886 RPS 65971 b HB4873 - 343 - LRB103 35886 RPS 65971 b
12270	12270	HB4873 - 343 - LRB103 35886 RPS 65971 b
12271	12271	1 of eligible creditable service and has attained age 55,
12272	12272	2 regardless of whether the attainment of age 55 occurs while
12273	12273	3 the person is still in service.
12274	12274	4 (h) If a person who first becomes a member or a participant
12275	12275	5 of a retirement system or pension fund subject to this Section
12276	12276	6 on or after January 1, 2011 is receiving a retirement annuity
12277	12277	7 or retirement pension under that system or fund and becomes a
12278	12278	8 member or participant under any other system or fund created
12279	12279	9 by this Code and is employed on a full-time basis, except for
12280	12280	10 those members or participants exempted from the provisions of
12281	12281	11 this Section under subsection (a) of this Section, then the
12282	12282	12 person's retirement annuity or retirement pension under that
12283	12283	13 system or fund shall be suspended during that employment. Upon
12284	12284	14 termination of that employment, the person's retirement
12285	12285	15 annuity or retirement pension payments shall resume and be
12286	12286	16 recalculated if recalculation is provided for under the
12287	12287	17 applicable Article of this Code.
12288	12288	18 If a person who first becomes a member of a retirement
12289	12289	19 system or pension fund subject to this Section on or after
12290	12290	20 January 1, 2012 and is receiving a retirement annuity or
12291	12291	21 retirement pension under that system or fund and accepts on a
12292	12292	22 contractual basis a position to provide services to a
12293	12293	23 governmental entity from which he or she has retired, then
12294	12294	24 that person's annuity or retirement pension earned as an
12295	12295	25 active employee of the employer shall be suspended during that
12296	12296	26 contractual service. A person receiving an annuity or
12297	12297
12298	12298
12299	12299
12300	12300
12301	12301
12302	12302	HB4873 - 343 - LRB103 35886 RPS 65971 b
12303	12303
12304	12304
12305	12305	HB4873- 344 -LRB103 35886 RPS 65971 b HB4873 - 344 - LRB103 35886 RPS 65971 b
12306	12306	HB4873 - 344 - LRB103 35886 RPS 65971 b
12307	12307	1 retirement pension under this Code shall notify the pension
12308	12308	2 fund or retirement system from which he or she is receiving an
12309	12309	3 annuity or retirement pension, as well as his or her
12310	12310	4 contractual employer, of his or her retirement status before
12311	12311	5 accepting contractual employment. A person who fails to submit
12312	12312	6 such notification shall be guilty of a Class A misdemeanor and
12313	12313	7 required to pay a fine of $1,000. Upon termination of that
12314	12314	8 contractual employment, the person's retirement annuity or
12315	12315	9 retirement pension payments shall resume and, if appropriate,
12316	12316	10 be recalculated under the applicable provisions of this Code.
12317	12317	11 (i) (Blank).
12318	12318	12 (j) In the case of a conflict between the provisions of
12319	12319	13 this Section and any other provision of this Code, the
12320	12320	14 provisions of this Section shall control.
12321	12321	15 (Source: P.A. 101-610, eff. 1-1-20; 102-16, eff. 6-17-21;
12322	12322	16 102-210, eff. 1-1-22; 102-263, eff. 8-6-21; 102-813, eff.
12323	12323	17 5-13-22.)
12324	12324	18 (Text of Section from P.A. 102-956)
12325	12325	19 Sec. 1-160. Provisions applicable to new hires.
12326	12326	20 (a) The provisions of this Section apply to a person who,
12327	12327	21 on or after January 1, 2011, first becomes a member or a
12328	12328	22 participant under any reciprocal retirement system or pension
12329	12329	23 fund established under this Code, other than a retirement
12330	12330	24 system or pension fund established under Article 2, 3, 4, 5, 6,
12331	12331	25 7, 15, or 18 of this Code, notwithstanding any other provision
12332	12332
12333	12333
12334	12334
12335	12335
12336	12336
12337	12337	HB4873 - 344 - LRB103 35886 RPS 65971 b
12338	12338
12339	12339
12340	12340	HB4873- 345 -LRB103 35886 RPS 65971 b HB4873 - 345 - LRB103 35886 RPS 65971 b
12341	12341	HB4873 - 345 - LRB103 35886 RPS 65971 b
12342	12342	1 of this Code to the contrary, but do not apply to any
12343	12343	2 self-managed plan established under this Code or to any
12344	12344	3 participant of the retirement plan established under Section
12345	12345	4 22-101; except that this Section applies to a person who
12346	12346	5 elected to establish alternative credits by electing in
12347	12347	6 writing after January 1, 2011, but before August 8, 2011,
12348	12348	7 under Section 7-145.1 of this Code. Notwithstanding anything
12349	12349	8 to the contrary in this Section, for purposes of this Section,
12350	12350	9 a person who is a Tier 1 regular employee as defined in Section
12351	12351	10 7-109.4 of this Code or who participated in a retirement
12352	12352	11 system under Article 15 prior to January 1, 2011 shall be
12353	12353	12 deemed a person who first became a member or participant prior
12354	12354	13 to January 1, 2011 under any retirement system or pension fund
12355	12355	14 subject to this Section. The changes made to this Section by
12356	12356	15 Public Act 98-596 are a clarification of existing law and are
12357	12357	16 intended to be retroactive to January 1, 2011 (the effective
12358	12358	17 date of Public Act 96-889), notwithstanding the provisions of
12359	12359	18 Section 1-103.1 of this Code.
12360	12360	19 This Section does not apply to a person who first becomes a
12361	12361	20 noncovered employee under Article 14 on or after the
12362	12362	21 implementation date of the plan created under Section 1-161
12363	12363	22 for that Article, unless that person elects under subsection
12364	12364	23 (b) of Section 1-161 to instead receive the benefits provided
12365	12365	24 under this Section and the applicable provisions of that
12366	12366	25 Article.
12367	12367	26 This Section does not apply to a person who first becomes a
12368	12368
12369	12369
12370	12370
12371	12371
12372	12372
12373	12373	HB4873 - 345 - LRB103 35886 RPS 65971 b
12374	12374
12375	12375
12376	12376	HB4873- 346 -LRB103 35886 RPS 65971 b HB4873 - 346 - LRB103 35886 RPS 65971 b
12377	12377	HB4873 - 346 - LRB103 35886 RPS 65971 b
12378	12378	1 member or participant under Article 16 on or after the
12379	12379	2 implementation date of the plan created under Section 1-161
12380	12380	3 for that Article, unless that person elects under subsection
12381	12381	4 (b) of Section 1-161 to instead receive the benefits provided
12382	12382	5 under this Section and the applicable provisions of that
12383	12383	6 Article.
12384	12384	7 This Section does not apply to a person who elects under
12385	12385	8 subsection (c-5) of Section 1-161 to receive the benefits
12386	12386	9 under Section 1-161.
12387	12387	10 This Section does not apply to a person who first becomes a
12388	12388	11 member or participant of an affected pension fund on or after 6
12389	12389	12 months after the resolution or ordinance date, as defined in
12390	12390	13 Section 1-162, unless that person elects under subsection (c)
12391	12391	14 of Section 1-162 to receive the benefits provided under this
12392	12392	15 Section and the applicable provisions of the Article under
12393	12393	16 which he or she is a member or participant.
12394	12394	17 (b) "Final average salary" means, except as otherwise
12395	12395	18 provided in this subsection, the average monthly (or annual)
12396	12396	19 salary obtained by dividing the total salary or earnings
12397	12397	20 calculated under the Article applicable to the member or
12398	12398	21 participant during the 96 consecutive months (or 8 consecutive
12399	12399	22 years) of service within the last 120 months (or 10 years) of
12400	12400	23 service in which the total salary or earnings calculated under
12401	12401	24 the applicable Article was the highest by the number of months
12402	12402	25 (or years) of service in that period. For the purposes of a
12403	12403	26 person who first becomes a member or participant of any
12404	12404
12405	12405
12406	12406
12407	12407
12408	12408
12409	12409	HB4873 - 346 - LRB103 35886 RPS 65971 b
12410	12410
12411	12411
12412	12412	HB4873- 347 -LRB103 35886 RPS 65971 b HB4873 - 347 - LRB103 35886 RPS 65971 b
12413	12413	HB4873 - 347 - LRB103 35886 RPS 65971 b
12414	12414	1 retirement system or pension fund to which this Section
12415	12415	2 applies on or after January 1, 2011, in this Code, "final
12416	12416	3 average salary" shall be substituted for the following:
12417	12417	4 (1) (Blank).
12418	12418	5 (2) In Articles 8, 9, 10, 11, and 12, "highest average
12419	12419	6 annual salary for any 4 consecutive years within the last
12420	12420	7 10 years of service immediately preceding the date of
12421	12421	8 withdrawal".
12422	12422	9 (3) In Article 13, "average final salary".
12423	12423	10 (4) In Article 14, "final average compensation".
12424	12424	11 (5) In Article 17, "average salary".
12425	12425	12 (6) In Section 22-207, "wages or salary received by
12426	12426	13 him at the date of retirement or discharge".
12427	12427	14 A member of the Teachers' Retirement System of the State
12428	12428	15 of Illinois who retires on or after June 1, 2021 and for whom
12429	12429	16 the 2020-2021 school year is used in the calculation of the
12430	12430	17 member's final average salary shall use the higher of the
12431	12431	18 following for the purpose of determining the member's final
12432	12432	19 average salary:
12433	12433	20 (A) the amount otherwise calculated under the first
12434	12434	21 paragraph of this subsection; or
12435	12435	22 (B) an amount calculated by the Teachers' Retirement
12436	12436	23 System of the State of Illinois using the average of the
12437	12437	24 monthly (or annual) salary obtained by dividing the total
12438	12438	25 salary or earnings calculated under Article 16 applicable
12439	12439	26 to the member or participant during the 96 months (or 8
12440	12440
12441	12441
12442	12442
12443	12443
12444	12444
12445	12445	HB4873 - 347 - LRB103 35886 RPS 65971 b
12446	12446
12447	12447
12448	12448	HB4873- 348 -LRB103 35886 RPS 65971 b HB4873 - 348 - LRB103 35886 RPS 65971 b
12449	12449	HB4873 - 348 - LRB103 35886 RPS 65971 b
12450	12450	1 years) of service within the last 120 months (or 10 years)
12451	12451	2 of service in which the total salary or earnings
12452	12452	3 calculated under the Article was the highest by the number
12453	12453	4 of months (or years) of service in that period.
12454	12454	5 (b-5) Beginning on January 1, 2011, for all purposes under
12455	12455	6 this Code (including without limitation the calculation of
12456	12456	7 benefits and employee contributions), the annual earnings,
12457	12457	8 salary, or wages (based on the plan year) of a member or
12458	12458	9 participant to whom this Section applies shall not exceed
12459	12459	10 $106,800; however, that amount shall annually thereafter be
12460	12460	11 increased by the lesser of (i) 3% of that amount, including all
12461	12461	12 previous adjustments, or (ii) one-half the annual unadjusted
12462	12462	13 percentage increase (but not less than zero) in the consumer
12463	12463	14 price index-u for the 12 months ending with the September
12464	12464	15 preceding each November 1, including all previous adjustments.
12465	12465	16 For the purposes of this Section, "consumer price index-u"
12466	12466	17 means the index published by the Bureau of Labor Statistics of
12467	12467	18 the United States Department of Labor that measures the
12468	12468	19 average change in prices of goods and services purchased by
12469	12469	20 all urban consumers, United States city average, all items,
12470	12470	21 1982-84 = 100. The new amount resulting from each annual
12471	12471	22 adjustment shall be determined by the Public Pension Division
12472	12472	23 of the Department of Insurance and made available to the
12473	12473	24 boards of the retirement systems and pension funds by November
12474	12474	25 1 of each year.
12475	12475	26 (b-10) Beginning on January 1, 2024, for all purposes
12476	12476
12477	12477
12478	12478
12479	12479
12480	12480
12481	12481	HB4873 - 348 - LRB103 35886 RPS 65971 b
12482	12482
12483	12483
12484	12484	HB4873- 349 -LRB103 35886 RPS 65971 b HB4873 - 349 - LRB103 35886 RPS 65971 b
12485	12485	HB4873 - 349 - LRB103 35886 RPS 65971 b
12486	12486	1 under this Code (including, without limitation, the
12487	12487	2 calculation of benefits and employee contributions), the
12488	12488	3 annual earnings, salary, or wages (based on the plan year) of a
12489	12489	4 member or participant under Article 9 to whom this Section
12490	12490	5 applies shall include an annual earnings, salary, or wage cap
12491	12491	6 that tracks the Social Security wage base. Maximum annual
12492	12492	7 earnings, wages, or salary shall be the annual contribution
12493	12493	8 and benefit base established for the applicable year by the
12494	12494	9 Commissioner of the Social Security Administration under the
12495	12495	10 federal Social Security Act.
12496	12496	11 However, in no event shall the annual earnings, salary, or
12497	12497	12 wages for the purposes of this Article and Article 9 exceed any
12498	12498	13 limitation imposed on annual earnings, salary, or wages under
12499	12499	14 Section 1-117. Under no circumstances shall the maximum amount
12500	12500	15 of annual earnings, salary, or wages be greater than the
12501	12501	16 amount set forth in this subsection (b-10) as a result of
12502	12502	17 reciprocal service or any provisions regarding reciprocal
12503	12503	18 services, nor shall the Fund under Article 9 be required to pay
12504	12504	19 any refund as a result of the application of this maximum
12505	12505	20 annual earnings, salary, and wage cap.
12506	12506	21 Nothing in this subsection (b-10) shall cause or otherwise
12507	12507	22 result in any retroactive adjustment of any employee
12508	12508	23 contributions. Nothing in this subsection (b-10) shall cause
12509	12509	24 or otherwise result in any retroactive adjustment of
12510	12510	25 disability or other payments made between January 1, 2011 and
12511	12511	26 January 1, 2024.
12512	12512
12513	12513
12514	12514
12515	12515
12516	12516
12517	12517	HB4873 - 349 - LRB103 35886 RPS 65971 b
12518	12518
12519	12519
12520	12520	HB4873- 350 -LRB103 35886 RPS 65971 b HB4873 - 350 - LRB103 35886 RPS 65971 b
12521	12521	HB4873 - 350 - LRB103 35886 RPS 65971 b
12522	12522	1 (c) A member or participant is entitled to a retirement
12523	12523	2 annuity upon written application if he or she has attained age
12524	12524	3 67 (age 65, with respect to service under Article 12 that is
12525	12525	4 subject to this Section, for a member or participant under
12526	12526	5 Article 12 who first becomes a member or participant under
12527	12527	6 Article 12 on or after January 1, 2022 or who makes the
12528	12528	7 election under item (i) of subsection (d-15) of this Section)
12529	12529	8 and has at least 10 years of service credit and is otherwise
12530	12530	9 eligible under the requirements of the applicable Article.
12531	12531	10 A member or participant who has attained age 62 (age 60,
12532	12532	11 with respect to service under Article 12 that is subject to
12533	12533	12 this Section, for a member or participant under Article 12 who
12534	12534	13 first becomes a member or participant under Article 12 on or
12535	12535	14 after January 1, 2022 or who makes the election under item (i)
12536	12536	15 of subsection (d-15) of this Section) and has at least 10 years
12537	12537	16 of service credit and is otherwise eligible under the
12538	12538	17 requirements of the applicable Article may elect to receive
12539	12539	18 the lower retirement annuity provided in subsection (d) of
12540	12540	19 this Section.
12541	12541	20 (c-5) A person who first becomes a member or a participant
12542	12542	21 subject to this Section on or after July 6, 2017 (the effective
12543	12543	22 date of Public Act 100-23), notwithstanding any other
12544	12544	23 provision of this Code to the contrary, is entitled to a
12545	12545	24 retirement annuity under Article 8 or Article 11 upon written
12546	12546	25 application if he or she has attained age 65 and has at least
12547	12547	26 10 years of service credit and is otherwise eligible under the
12548	12548
12549	12549
12550	12550
12551	12551
12552	12552
12553	12553	HB4873 - 350 - LRB103 35886 RPS 65971 b
12554	12554
12555	12555
12556	12556	HB4873- 351 -LRB103 35886 RPS 65971 b HB4873 - 351 - LRB103 35886 RPS 65971 b
12557	12557	HB4873 - 351 - LRB103 35886 RPS 65971 b
12558	12558	1 requirements of Article 8 or Article 11 of this Code,
12559	12559	2 whichever is applicable.
12560	12560	3 (d) The retirement annuity of a member or participant who
12561	12561	4 is retiring after attaining age 62 (age 60, with respect to
12562	12562	5 service under Article 12 that is subject to this Section, for a
12563	12563	6 member or participant under Article 12 who first becomes a
12564	12564	7 member or participant under Article 12 on or after January 1,
12565	12565	8 2022 or who makes the election under item (i) of subsection
12566	12566	9 (d-15) of this Section) with at least 10 years of service
12567	12567	10 credit shall be reduced by one-half of 1% for each full month
12568	12568	11 that the member's age is under age 67 (age 65, with respect to
12569	12569	12 service under Article 12 that is subject to this Section, for a
12570	12570	13 member or participant under Article 12 who first becomes a
12571	12571	14 member or participant under Article 12 on or after January 1,
12572	12572	15 2022 or who makes the election under item (i) of subsection
12573	12573	16 (d-15) of this Section).
12574	12574	17 (d-5) The retirement annuity payable under Article 8 or
12575	12575	18 Article 11 to an eligible person subject to subsection (c-5)
12576	12576	19 of this Section who is retiring at age 60 with at least 10
12577	12577	20 years of service credit shall be reduced by one-half of 1% for
12578	12578	21 each full month that the member's age is under age 65.
12579	12579	22 (d-10) Each person who first became a member or
12580	12580	23 participant under Article 8 or Article 11 of this Code on or
12581	12581	24 after January 1, 2011 and prior to July 6, 2017 (the effective
12582	12582	25 date of Public Act 100-23) shall make an irrevocable election
12583	12583	26 either:
12584	12584
12585	12585
12586	12586
12587	12587
12588	12588
12589	12589	HB4873 - 351 - LRB103 35886 RPS 65971 b
12590	12590
12591	12591
12592	12592	HB4873- 352 -LRB103 35886 RPS 65971 b HB4873 - 352 - LRB103 35886 RPS 65971 b
12593	12593	HB4873 - 352 - LRB103 35886 RPS 65971 b
12594	12594	1 (i) to be eligible for the reduced retirement age
12595	12595	2 provided in subsections (c-5) and (d-5) of this Section,
12596	12596	3 the eligibility for which is conditioned upon the member
12597	12597	4 or participant agreeing to the increases in employee
12598	12598	5 contributions for age and service annuities provided in
12599	12599	6 subsection (a-5) of Section 8-174 of this Code (for
12600	12600	7 service under Article 8) or subsection (a-5) of Section
12601	12601	8 11-170 of this Code (for service under Article 11); or
12602	12602	9 (ii) to not agree to item (i) of this subsection
12603	12603	10 (d-10), in which case the member or participant shall
12604	12604	11 continue to be subject to the retirement age provisions in
12605	12605	12 subsections (c) and (d) of this Section and the employee
12606	12606	13 contributions for age and service annuity as provided in
12607	12607	14 subsection (a) of Section 8-174 of this Code (for service
12608	12608	15 under Article 8) or subsection (a) of Section 11-170 of
12609	12609	16 this Code (for service under Article 11).
12610	12610	17 The election provided for in this subsection shall be made
12611	12611	18 between October 1, 2017 and November 15, 2017. A person
12612	12612	19 subject to this subsection who makes the required election
12613	12613	20 shall remain bound by that election. A person subject to this
12614	12614	21 subsection who fails for any reason to make the required
12615	12615	22 election within the time specified in this subsection shall be
12616	12616	23 deemed to have made the election under item (ii).
12617	12617	24 (d-15) Each person who first becomes a member or
12618	12618	25 participant under Article 12 on or after January 1, 2011 and
12619	12619	26 prior to January 1, 2022 shall make an irrevocable election
12620	12620
12621	12621
12622	12622
12623	12623
12624	12624
12625	12625	HB4873 - 352 - LRB103 35886 RPS 65971 b
12626	12626
12627	12627
12628	12628	HB4873- 353 -LRB103 35886 RPS 65971 b HB4873 - 353 - LRB103 35886 RPS 65971 b
12629	12629	HB4873 - 353 - LRB103 35886 RPS 65971 b
12630	12630	1 either:
12631	12631	2 (i) to be eligible for the reduced retirement age
12632	12632	3 specified in subsections (c) and (d) of this Section, the
12633	12633	4 eligibility for which is conditioned upon the member or
12634	12634	5 participant agreeing to the increase in employee
12635	12635	6 contributions for service annuities specified in
12636	12636	7 subsection (b) of Section 12-150; or
12637	12637	8 (ii) to not agree to item (i) of this subsection
12638	12638	9 (d-15), in which case the member or participant shall not
12639	12639	10 be eligible for the reduced retirement age specified in
12640	12640	11 subsections (c) and (d) of this Section and shall not be
12641	12641	12 subject to the increase in employee contributions for
12642	12642	13 service annuities specified in subsection (b) of Section
12643	12643	14 12-150.
12644	12644	15 The election provided for in this subsection shall be made
12645	12645	16 between January 1, 2022 and April 1, 2022. A person subject to
12646	12646	17 this subsection who makes the required election shall remain
12647	12647	18 bound by that election. A person subject to this subsection
12648	12648	19 who fails for any reason to make the required election within
12649	12649	20 the time specified in this subsection shall be deemed to have
12650	12650	21 made the election under item (ii).
12651	12651	22 (e) Any retirement annuity or supplemental annuity shall
12652	12652	23 be subject to annual increases on the January 1 occurring
12653	12653	24 either on or after the attainment of age 67 (age 65, with
12654	12654	25 respect to service under Article 12 that is subject to this
12655	12655	26 Section, for a member or participant under Article 12 who
12656	12656
12657	12657
12658	12658
12659	12659
12660	12660
12661	12661	HB4873 - 353 - LRB103 35886 RPS 65971 b
12662	12662
12663	12663
12664	12664	HB4873- 354 -LRB103 35886 RPS 65971 b HB4873 - 354 - LRB103 35886 RPS 65971 b
12665	12665	HB4873 - 354 - LRB103 35886 RPS 65971 b
12666	12666	1 first becomes a member or participant under Article 12 on or
12667	12667	2 after January 1, 2022 or who makes the election under item (i)
12668	12668	3 of subsection (d-15); and beginning on July 6, 2017 (the
12669	12669	4 effective date of Public Act 100-23), age 65 with respect to
12670	12670	5 service under Article 8 or Article 11 for eligible persons
12671	12671	6 who: (i) are subject to subsection (c-5) of this Section; or
12672	12672	7 (ii) made the election under item (i) of subsection (d-10) of
12673	12673	8 this Section) or the first anniversary of the annuity start
12674	12674	9 date, whichever is later. Each annual increase shall be
12675	12675	10 calculated at 3% or one-half the annual unadjusted percentage
12676	12676	11 increase (but not less than zero) in the consumer price
12677	12677	12 index-u for the 12 months ending with the September preceding
12678	12678	13 each November 1, whichever is less, of the originally granted
12679	12679	14 retirement annuity. If the annual unadjusted percentage change
12680	12680	15 in the consumer price index-u for the 12 months ending with the
12681	12681	16 September preceding each November 1 is zero or there is a
12682	12682	17 decrease, then the annuity shall not be increased.
12683	12683	18 For the purposes of Section 1-103.1 of this Code, the
12684	12684	19 changes made to this Section by Public Act 102-263 are
12685	12685	20 applicable without regard to whether the employee was in
12686	12686	21 active service on or after August 6, 2021 (the effective date
12687	12687	22 of Public Act 102-263).
12688	12688	23 For the purposes of Section 1-103.1 of this Code, the
12689	12689	24 changes made to this Section by Public Act 100-23 are
12690	12690	25 applicable without regard to whether the employee was in
12691	12691	26 active service on or after July 6, 2017 (the effective date of
12692	12692
12693	12693
12694	12694
12695	12695
12696	12696
12697	12697	HB4873 - 354 - LRB103 35886 RPS 65971 b
12698	12698
12699	12699
12700	12700	HB4873- 355 -LRB103 35886 RPS 65971 b HB4873 - 355 - LRB103 35886 RPS 65971 b
12701	12701	HB4873 - 355 - LRB103 35886 RPS 65971 b
12702	12702	1 Public Act 100-23).
12703	12703	2 (f) The initial survivor's or widow's annuity of an
12704	12704	3 otherwise eligible survivor or widow of a retired member or
12705	12705	4 participant who first became a member or participant on or
12706	12706	5 after January 1, 2011 shall be in the amount of 66 2/3% of the
12707	12707	6 retired member's or participant's retirement annuity at the
12708	12708	7 date of death. In the case of the death of a member or
12709	12709	8 participant who has not retired and who first became a member
12710	12710	9 or participant on or after January 1, 2011, eligibility for a
12711	12711	10 survivor's or widow's annuity shall be determined by the
12712	12712	11 applicable Article of this Code. The initial benefit shall be
12713	12713	12 66 2/3% of the earned annuity without a reduction due to age. A
12714	12714	13 child's annuity of an otherwise eligible child shall be in the
12715	12715	14 amount prescribed under each Article if applicable. Any
12716	12716	15 survivor's or widow's annuity shall be increased (1) on each
12717	12717	16 January 1 occurring on or after the commencement of the
12718	12718	17 annuity if the deceased member died while receiving a
12719	12719	18 retirement annuity or (2) in other cases, on each January 1
12720	12720	19 occurring after the first anniversary of the commencement of
12721	12721	20 the annuity. Each annual increase shall be calculated at 3% or
12722	12722	21 one-half the annual unadjusted percentage increase (but not
12723	12723	22 less than zero) in the consumer price index-u for the 12 months
12724	12724	23 ending with the September preceding each November 1, whichever
12725	12725	24 is less, of the originally granted survivor's annuity. If the
12726	12726	25 annual unadjusted percentage change in the consumer price
12727	12727	26 index-u for the 12 months ending with the September preceding
12728	12728
12729	12729
12730	12730
12731	12731
12732	12732
12733	12733	HB4873 - 355 - LRB103 35886 RPS 65971 b
12734	12734
12735	12735
12736	12736	HB4873- 356 -LRB103 35886 RPS 65971 b HB4873 - 356 - LRB103 35886 RPS 65971 b
12737	12737	HB4873 - 356 - LRB103 35886 RPS 65971 b
12738	12738	1 each November 1 is zero or there is a decrease, then the
12739	12739	2 annuity shall not be increased.
12740	12740	3 (g) The benefits in Section 14-110 apply only if the
12741	12741	4 person is a State policeman, a fire fighter in the fire
12742	12742	5 protection service of a department, a conservation police
12743	12743	6 officer, an investigator for the Secretary of State, an
12744	12744	7 investigator for the Office of the Attorney General, an arson
12745	12745	8 investigator, a Commerce Commission police officer,
12746	12746	9 investigator for the Department of Revenue or the Illinois
12747	12747	10 Gaming Board, a security employee of the Department of
12748	12748	11 Corrections or the Department of Juvenile Justice, or a
12749	12749	12 security employee of the Department of Innovation and
12750	12750	13 Technology, as those terms are defined in subsection (b) and
12751	12751	14 subsection (c) of Section 14-110. A person who meets the
12752	12752	15 requirements of this Section is entitled to an annuity
12753	12753	16 calculated under the provisions of Section 14-110, in lieu of
12754	12754	17 the regular or minimum retirement annuity, only if the person
12755	12755	18 has withdrawn from service with not less than 20 years of
12756	12756	19 eligible creditable service and has attained age 60,
12757	12757	20 regardless of whether the attainment of age 60 occurs while
12758	12758	21 the person is still in service.
12759	12759	22 (g-1) The benefits in Section 14-110 apply if the person
12760	12760	23 is a security employee of the Department of Corrections or the
12761	12761	24 Department of Juvenile Justice, a security employee of the
12762	12762	25 Department of Human Services, or an investigator for the
12763	12763	26 Department of the Lottery, as those terms are defined in
12764	12764
12765	12765
12766	12766
12767	12767
12768	12768
12769	12769	HB4873 - 356 - LRB103 35886 RPS 65971 b
12770	12770
12771	12771
12772	12772	HB4873- 357 -LRB103 35886 RPS 65971 b HB4873 - 357 - LRB103 35886 RPS 65971 b
12773	12773	HB4873 - 357 - LRB103 35886 RPS 65971 b
12774	12774	1 subsection (b) and subsection (c) of Section 14-110. A person
12775	12775	2 who meets the requirements of this Section is entitled to an
12776	12776	3 annuity calculated under the provisions of Section 14-110, in
12777	12777	4 lieu of the regular or minimum retirement annuity, only if the
12778	12778	5 person has withdrawn from service with not less than 20 years
12779	12779	6 of eligible creditable service and has attained age 55,
12780	12780	7 regardless of whether the attainment of age 55 occurs while
12781	12781	8 the person is still in service.
12782	12782	9 (h) If a person who first becomes a member or a participant
12783	12783	10 of a retirement system or pension fund subject to this Section
12784	12784	11 on or after January 1, 2011 is receiving a retirement annuity
12785	12785	12 or retirement pension under that system or fund and becomes a
12786	12786	13 member or participant under any other system or fund created
12787	12787	14 by this Code and is employed on a full-time basis, except for
12788	12788	15 those members or participants exempted from the provisions of
12789	12789	16 this Section under subsection (a) of this Section, then the
12790	12790	17 person's retirement annuity or retirement pension under that
12791	12791	18 system or fund shall be suspended during that employment. Upon
12792	12792	19 termination of that employment, the person's retirement
12793	12793	20 annuity or retirement pension payments shall resume and be
12794	12794	21 recalculated if recalculation is provided for under the
12795	12795	22 applicable Article of this Code.
12796	12796	23 If a person who first becomes a member of a retirement
12797	12797	24 system or pension fund subject to this Section on or after
12798	12798	25 January 1, 2012 and is receiving a retirement annuity or
12799	12799	26 retirement pension under that system or fund and accepts on a
12800	12800
12801	12801
12802	12802
12803	12803
12804	12804
12805	12805	HB4873 - 357 - LRB103 35886 RPS 65971 b
12806	12806
12807	12807
12808	12808	HB4873- 358 -LRB103 35886 RPS 65971 b HB4873 - 358 - LRB103 35886 RPS 65971 b
12809	12809	HB4873 - 358 - LRB103 35886 RPS 65971 b
12810	12810	1 contractual basis a position to provide services to a
12811	12811	2 governmental entity from which he or she has retired, then
12812	12812	3 that person's annuity or retirement pension earned as an
12813	12813	4 active employee of the employer shall be suspended during that
12814	12814	5 contractual service. A person receiving an annuity or
12815	12815	6 retirement pension under this Code shall notify the pension
12816	12816	7 fund or retirement system from which he or she is receiving an
12817	12817	8 annuity or retirement pension, as well as his or her
12818	12818	9 contractual employer, of his or her retirement status before
12819	12819	10 accepting contractual employment. A person who fails to submit
12820	12820	11 such notification shall be guilty of a Class A misdemeanor and
12821	12821	12 required to pay a fine of $1,000. Upon termination of that
12822	12822	13 contractual employment, the person's retirement annuity or
12823	12823	14 retirement pension payments shall resume and, if appropriate,
12824	12824	15 be recalculated under the applicable provisions of this Code.
12825	12825	16 (i) (Blank).
12826	12826	17 (j) In the case of a conflict between the provisions of
12827	12827	18 this Section and any other provision of this Code, the
12828	12828	19 provisions of this Section shall control.
12829	12829	20 (Source: P.A. 102-16, eff. 6-17-21; 102-210, eff. 1-1-22;
12830	12830	21 102-263, eff. 8-6-21; 102-956, eff. 5-27-22; 103-529, eff.
12831	12831	22 8-11-23.)
12832	12832	23 (40 ILCS 5/14-110) (from Ch. 108 1/2, par. 14-110)
12833	12833	24 (Text of Section from P.A. 102-813 and 103-34)
12834	12834	25 Sec. 14-110. Alternative retirement annuity.
12835	12835
12836	12836
12837	12837
12838	12838
12839	12839
12840	12840	HB4873 - 358 - LRB103 35886 RPS 65971 b
12841	12841
12842	12842
12843	12843	HB4873- 359 -LRB103 35886 RPS 65971 b HB4873 - 359 - LRB103 35886 RPS 65971 b
12844	12844	HB4873 - 359 - LRB103 35886 RPS 65971 b
12845	12845	1 (a) Any member who has withdrawn from service with not
12846	12846	2 less than 20 years of eligible creditable service and has
12847	12847	3 attained age 55, and any member who has withdrawn from service
12848	12848	4 with not less than 25 years of eligible creditable service and
12849	12849	5 has attained age 50, regardless of whether the attainment of
12850	12850	6 either of the specified ages occurs while the member is still
12851	12851	7 in service, shall be entitled to receive at the option of the
12852	12852	8 member, in lieu of the regular or minimum retirement annuity,
12853	12853	9 a retirement annuity computed as follows:
12854	12854	10 (i) for periods of service as a noncovered employee:
12855	12855	11 if retirement occurs on or after January 1, 2001, 3% of
12856	12856	12 final average compensation for each year of creditable
12857	12857	13 service; if retirement occurs before January 1, 2001, 2
12858	12858	14 1/4% of final average compensation for each of the first
12859	12859	15 10 years of creditable service, 2 1/2% for each year above
12860	12860	16 10 years to and including 20 years of creditable service,
12861	12861	17 and 2 3/4% for each year of creditable service above 20
12862	12862	18 years; and
12863	12863	19 (ii) for periods of eligible creditable service as a
12864	12864	20 covered employee: if retirement occurs on or after January
12865	12865	21 1, 2001, 2.5% of final average compensation for each year
12866	12866	22 of creditable service; if retirement occurs before January
12867	12867	23 1, 2001, 1.67% of final average compensation for each of
12868	12868	24 the first 10 years of such service, 1.90% for each of the
12869	12869	25 next 10 years of such service, 2.10% for each year of such
12870	12870	26 service in excess of 20 but not exceeding 30, and 2.30% for
12871	12871
12872	12872
12873	12873
12874	12874
12875	12875
12876	12876	HB4873 - 359 - LRB103 35886 RPS 65971 b
12877	12877
12878	12878
12879	12879	HB4873- 360 -LRB103 35886 RPS 65971 b HB4873 - 360 - LRB103 35886 RPS 65971 b
12880	12880	HB4873 - 360 - LRB103 35886 RPS 65971 b
12881	12881	1 each year in excess of 30.
12882	12882	2 Such annuity shall be subject to a maximum of 75% of final
12883	12883	3 average compensation if retirement occurs before January 1,
12884	12884	4 2001 or to a maximum of 80% of final average compensation if
12885	12885	5 retirement occurs on or after January 1, 2001.
12886	12886	6 These rates shall not be applicable to any service
12887	12887	7 performed by a member as a covered employee which is not
12888	12888	8 eligible creditable service. Service as a covered employee
12889	12889	9 which is not eligible creditable service shall be subject to
12890	12890	10 the rates and provisions of Section 14-108.
12891	12891	11 (b) For the purpose of this Section, "eligible creditable
12892	12892	12 service" means creditable service resulting from service in
12893	12893	13 one or more of the following positions:
12894	12894	14 (1) State policeman;
12895	12895	15 (2) fire fighter in the fire protection service of a
12896	12896	16 department;
12897	12897	17 (3) air pilot;
12898	12898	18 (4) special agent;
12899	12899	19 (5) investigator for the Secretary of State;
12900	12900	20 (6) conservation police officer;
12901	12901	21 (7) investigator for the Department of Revenue or the
12902	12902	22 Illinois Gaming Board;
12903	12903	23 (8) security employee of the Department of Human
12904	12904	24 Services;
12905	12905	25 (9) Central Management Services security police
12906	12906	26 officer;
12907	12907
12908	12908
12909	12909
12910	12910
12911	12911
12912	12912	HB4873 - 360 - LRB103 35886 RPS 65971 b
12913	12913
12914	12914
12915	12915	HB4873- 361 -LRB103 35886 RPS 65971 b HB4873 - 361 - LRB103 35886 RPS 65971 b
12916	12916	HB4873 - 361 - LRB103 35886 RPS 65971 b
12917	12917	1 (10) security employee of the Department of
12918	12918	2 Corrections or the Department of Juvenile Justice;
12919	12919	3 (11) dangerous drugs investigator;
12920	12920	4 (12) investigator for the Illinois State Police;
12921	12921	5 (13) investigator for the Office of the Attorney
12922	12922	6 General;
12923	12923	7 (14) controlled substance inspector;
12924	12924	8 (15) investigator for the Office of the State's
12925	12925	9 Attorneys Appellate Prosecutor;
12926	12926	10 (16) Commerce Commission police officer;
12927	12927	11 (17) arson investigator;
12928	12928	12 (18) State highway maintenance worker;
12929	12929	13 (19) security employee of the Department of Innovation
12930	12930	14 and Technology; or
12931	12931	15 (20) transferred employee; or .
12932	12932	16 (21) investigator for the Department of the Lottery.
12933	12933	17 A person employed in one of the positions specified in
12934	12934	18 this subsection is entitled to eligible creditable service for
12935	12935	19 service credit earned under this Article while undergoing the
12936	12936	20 basic police training course approved by the Illinois Law
12937	12937	21 Enforcement Training Standards Board, if completion of that
12938	12938	22 training is required of persons serving in that position. For
12939	12939	23 the purposes of this Code, service during the required basic
12940	12940	24 police training course shall be deemed performance of the
12941	12941	25 duties of the specified position, even though the person is
12942	12942	26 not a sworn peace officer at the time of the training.
12943	12943
12944	12944
12945	12945
12946	12946
12947	12947
12948	12948	HB4873 - 361 - LRB103 35886 RPS 65971 b
12949	12949
12950	12950
12951	12951	HB4873- 362 -LRB103 35886 RPS 65971 b HB4873 - 362 - LRB103 35886 RPS 65971 b
12952	12952	HB4873 - 362 - LRB103 35886 RPS 65971 b
12953	12953	1 A person under paragraph (20) is entitled to eligible
12954	12954	2 creditable service for service credit earned under this
12955	12955	3 Article on and after his or her transfer by Executive Order No.
12956	12956	4 2003-10, Executive Order No. 2004-2, or Executive Order No.
12957	12957	5 2016-1.
12958	12958	6 (c) For the purposes of this Section:
12959	12959	7 (1) The term "State policeman" includes any title or
12960	12960	8 position in the Illinois State Police that is held by an
12961	12961	9 individual employed under the Illinois State Police Act.
12962	12962	10 (2) The term "fire fighter in the fire protection
12963	12963	11 service of a department" includes all officers in such
12964	12964	12 fire protection service including fire chiefs and
12965	12965	13 assistant fire chiefs.
12966	12966	14 (3) The term "air pilot" includes any employee whose
12967	12967	15 official job description on file in the Department of
12968	12968	16 Central Management Services, or in the department by which
12969	12969	17 he is employed if that department is not covered by the
12970	12970	18 Personnel Code, states that his principal duty is the
12971	12971	19 operation of aircraft, and who possesses a pilot's
12972	12972	20 license; however, the change in this definition made by
12973	12973	21 Public Act 83-842 shall not operate to exclude any
12974	12974	22 noncovered employee who was an "air pilot" for the
12975	12975	23 purposes of this Section on January 1, 1984.
12976	12976	24 (4) The term "special agent" means any person who by
12977	12977	25 reason of employment by the Division of Narcotic Control,
12978	12978	26 the Bureau of Investigation or, after July 1, 1977, the
12979	12979
12980	12980
12981	12981
12982	12982
12983	12983
12984	12984	HB4873 - 362 - LRB103 35886 RPS 65971 b
12985	12985
12986	12986
12987	12987	HB4873- 363 -LRB103 35886 RPS 65971 b HB4873 - 363 - LRB103 35886 RPS 65971 b
12988	12988	HB4873 - 363 - LRB103 35886 RPS 65971 b
12989	12989	1 Division of Criminal Investigation, the Division of
12990	12990	2 Internal Investigation, the Division of Operations, the
12991	12991	3 Division of Patrol, or any other Division or
12992	12992	4 organizational entity in the Illinois State Police is
12993	12993	5 vested by law with duties to maintain public order,
12994	12994	6 investigate violations of the criminal law of this State,
12995	12995	7 enforce the laws of this State, make arrests and recover
12996	12996	8 property. The term "special agent" includes any title or
12997	12997	9 position in the Illinois State Police that is held by an
12998	12998	10 individual employed under the Illinois State Police Act.
12999	12999	11 (5) The term "investigator for the Secretary of State"
13000	13000	12 means any person employed by the Office of the Secretary
13001	13001	13 of State and vested with such investigative duties as
13002	13002	14 render him ineligible for coverage under the Social
13003	13003	15 Security Act by reason of Sections 218(d)(5)(A),
13004	13004	16 218(d)(8)(D) and 218(l)(1) of that Act.
13005	13005	17 A person who became employed as an investigator for
13006	13006	18 the Secretary of State between January 1, 1967 and
13007	13007	19 December 31, 1975, and who has served as such until
13008	13008	20 attainment of age 60, either continuously or with a single
13009	13009	21 break in service of not more than 3 years duration, which
13010	13010	22 break terminated before January 1, 1976, shall be entitled
13011	13011	23 to have his retirement annuity calculated in accordance
13012	13012	24 with subsection (a), notwithstanding that he has less than
13013	13013	25 20 years of credit for such service.
13014	13014	26 (6) The term "Conservation Police Officer" means any
13015	13015
13016	13016
13017	13017
13018	13018
13019	13019
13020	13020	HB4873 - 363 - LRB103 35886 RPS 65971 b
13021	13021
13022	13022
13023	13023	HB4873- 364 -LRB103 35886 RPS 65971 b HB4873 - 364 - LRB103 35886 RPS 65971 b
13024	13024	HB4873 - 364 - LRB103 35886 RPS 65971 b
13025	13025	1 person employed by the Division of Law Enforcement of the
13026	13026	2 Department of Natural Resources and vested with such law
13027	13027	3 enforcement duties as render him ineligible for coverage
13028	13028	4 under the Social Security Act by reason of Sections
13029	13029	5 218(d)(5)(A), 218(d)(8)(D), and 218(l)(1) of that Act. The
13030	13030	6 term "Conservation Police Officer" includes the positions
13031	13031	7 of Chief Conservation Police Administrator and Assistant
13032	13032	8 Conservation Police Administrator.
13033	13033	9 (7) The term "investigator for the Department of
13034	13034	10 Revenue" means any person employed by the Department of
13035	13035	11 Revenue and vested with such investigative duties as
13036	13036	12 render him ineligible for coverage under the Social
13037	13037	13 Security Act by reason of Sections 218(d)(5)(A),
13038	13038	14 218(d)(8)(D) and 218(l)(1) of that Act.
13039	13039	15 The term "investigator for the Illinois Gaming Board"
13040	13040	16 means any person employed as such by the Illinois Gaming
13041	13041	17 Board and vested with such peace officer duties as render
13042	13042	18 the person ineligible for coverage under the Social
13043	13043	19 Security Act by reason of Sections 218(d)(5)(A),
13044	13044	20 218(d)(8)(D), and 218(l)(1) of that Act.
13045	13045	21 (8) The term "security employee of the Department of
13046	13046	22 Human Services" means any person employed by the
13047	13047	23 Department of Human Services who (i) is employed at the
13048	13048	24 Chester Mental Health Center and has daily contact with
13049	13049	25 the residents thereof, (ii) is employed within a security
13050	13050	26 unit at a facility operated by the Department and has
13051	13051
13052	13052
13053	13053
13054	13054
13055	13055
13056	13056	HB4873 - 364 - LRB103 35886 RPS 65971 b
13057	13057
13058	13058
13059	13059	HB4873- 365 -LRB103 35886 RPS 65971 b HB4873 - 365 - LRB103 35886 RPS 65971 b
13060	13060	HB4873 - 365 - LRB103 35886 RPS 65971 b
13061	13061	1 daily contact with the residents of the security unit,
13062	13062	2 (iii) is employed at a facility operated by the Department
13063	13063	3 that includes a security unit and is regularly scheduled
13064	13064	4 to work at least 50% of his or her working hours within
13065	13065	5 that security unit, or (iv) is a mental health police
13066	13066	6 officer. "Mental health police officer" means any person
13067	13067	7 employed by the Department of Human Services in a position
13068	13068	8 pertaining to the Department's mental health and
13069	13069	9 developmental disabilities functions who is vested with
13070	13070	10 such law enforcement duties as render the person
13071	13071	11 ineligible for coverage under the Social Security Act by
13072	13072	12 reason of Sections 218(d)(5)(A), 218(d)(8)(D) and
13073	13073	13 218(l)(1) of that Act. "Security unit" means that portion
13074	13074	14 of a facility that is devoted to the care, containment,
13075	13075	15 and treatment of persons committed to the Department of
13076	13076	16 Human Services as sexually violent persons, persons unfit
13077	13077	17 to stand trial, or persons not guilty by reason of
13078	13078	18 insanity. With respect to past employment, references to
13079	13079	19 the Department of Human Services include its predecessor,
13080	13080	20 the Department of Mental Health and Developmental
13081	13081	21 Disabilities.
13082	13082	22 The changes made to this subdivision (c)(8) by Public
13083	13083	23 Act 92-14 apply to persons who retire on or after January
13084	13084	24 1, 2001, notwithstanding Section 1-103.1.
13085	13085	25 (9) "Central Management Services security police
13086	13086	26 officer" means any person employed by the Department of
13087	13087
13088	13088
13089	13089
13090	13090
13091	13091
13092	13092	HB4873 - 365 - LRB103 35886 RPS 65971 b
13093	13093
13094	13094
13095	13095	HB4873- 366 -LRB103 35886 RPS 65971 b HB4873 - 366 - LRB103 35886 RPS 65971 b
13096	13096	HB4873 - 366 - LRB103 35886 RPS 65971 b
13097	13097	1 Central Management Services who is vested with such law
13098	13098	2 enforcement duties as render him ineligible for coverage
13099	13099	3 under the Social Security Act by reason of Sections
13100	13100	4 218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that Act.
13101	13101	5 (10) For a member who first became an employee under
13102	13102	6 this Article before July 1, 2005, the term "security
13103	13103	7 employee of the Department of Corrections or the
13104	13104	8 Department of Juvenile Justice" means any employee of the
13105	13105	9 Department of Corrections or the Department of Juvenile
13106	13106	10 Justice or the former Department of Personnel, and any
13107	13107	11 member or employee of the Prisoner Review Board, who has
13108	13108	12 daily contact with inmates or youth by working within a
13109	13109	13 correctional facility or Juvenile facility operated by the
13110	13110	14 Department of Juvenile Justice or who is a parole officer
13111	13111	15 or an employee who has direct contact with committed
13112	13112	16 persons in the performance of his or her job duties. For a
13113	13113	17 member who first becomes an employee under this Article on
13114	13114	18 or after July 1, 2005, the term means an employee of the
13115	13115	19 Department of Corrections or the Department of Juvenile
13116	13116	20 Justice who is any of the following: (i) officially
13117	13117	21 headquartered at a correctional facility or Juvenile
13118	13118	22 facility operated by the Department of Juvenile Justice,
13119	13119	23 (ii) a parole officer, (iii) a member of the apprehension
13120	13120	24 unit, (iv) a member of the intelligence unit, (v) a member
13121	13121	25 of the sort team, or (vi) an investigator.
13122	13122	26 (11) The term "dangerous drugs investigator" means any
13123	13123
13124	13124
13125	13125
13126	13126
13127	13127
13128	13128	HB4873 - 366 - LRB103 35886 RPS 65971 b
13129	13129
13130	13130
13131	13131	HB4873- 367 -LRB103 35886 RPS 65971 b HB4873 - 367 - LRB103 35886 RPS 65971 b
13132	13132	HB4873 - 367 - LRB103 35886 RPS 65971 b
13133	13133	1 person who is employed as such by the Department of Human
13134	13134	2 Services.
13135	13135	3 (12) The term "investigator for the Illinois State
13136	13136	4 Police" means a person employed by the Illinois State
13137	13137	5 Police who is vested under Section 4 of the Narcotic
13138	13138	6 Control Division Abolition Act with such law enforcement
13139	13139	7 powers as render him ineligible for coverage under the
13140	13140	8 Social Security Act by reason of Sections 218(d)(5)(A),
13141	13141	9 218(d)(8)(D) and 218(l)(1) of that Act.
13142	13142	10 (13) "Investigator for the Office of the Attorney
13143	13143	11 General" means any person who is employed as such by the
13144	13144	12 Office of the Attorney General and is vested with such
13145	13145	13 investigative duties as render him ineligible for coverage
13146	13146	14 under the Social Security Act by reason of Sections
13147	13147	15 218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that Act. For
13148	13148	16 the period before January 1, 1989, the term includes all
13149	13149	17 persons who were employed as investigators by the Office
13150	13150	18 of the Attorney General, without regard to social security
13151	13151	19 status.
13152	13152	20 (14) "Controlled substance inspector" means any person
13153	13153	21 who is employed as such by the Department of Professional
13154	13154	22 Regulation and is vested with such law enforcement duties
13155	13155	23 as render him ineligible for coverage under the Social
13156	13156	24 Security Act by reason of Sections 218(d)(5)(A),
13157	13157	25 218(d)(8)(D) and 218(l)(1) of that Act. The term
13158	13158	26 "controlled substance inspector" includes the Program
13159	13159
13160	13160
13161	13161
13162	13162
13163	13163
13164	13164	HB4873 - 367 - LRB103 35886 RPS 65971 b
13165	13165
13166	13166
13167	13167	HB4873- 368 -LRB103 35886 RPS 65971 b HB4873 - 368 - LRB103 35886 RPS 65971 b
13168	13168	HB4873 - 368 - LRB103 35886 RPS 65971 b
13169	13169	1 Executive of Enforcement and the Assistant Program
13170	13170	2 Executive of Enforcement.
13171	13171	3 (15) The term "investigator for the Office of the
13172	13172	4 State's Attorneys Appellate Prosecutor" means a person
13173	13173	5 employed in that capacity on a full-time basis under the
13174	13174	6 authority of Section 7.06 of the State's Attorneys
13175	13175	7 Appellate Prosecutor's Act.
13176	13176	8 (16) "Commerce Commission police officer" means any
13177	13177	9 person employed by the Illinois Commerce Commission who is
13178	13178	10 vested with such law enforcement duties as render him
13179	13179	11 ineligible for coverage under the Social Security Act by
13180	13180	12 reason of Sections 218(d)(5)(A), 218(d)(8)(D), and
13181	13181	13 218(l)(1) of that Act.
13182	13182	14 (17) "Arson investigator" means any person who is
13183	13183	15 employed as such by the Office of the State Fire Marshal
13184	13184	16 and is vested with such law enforcement duties as render
13185	13185	17 the person ineligible for coverage under the Social
13186	13186	18 Security Act by reason of Sections 218(d)(5)(A),
13187	13187	19 218(d)(8)(D), and 218(l)(1) of that Act. A person who was
13188	13188	20 employed as an arson investigator on January 1, 1995 and
13189	13189	21 is no longer in service but not yet receiving a retirement
13190	13190	22 annuity may convert his or her creditable service for
13191	13191	23 employment as an arson investigator into eligible
13192	13192	24 creditable service by paying to the System the difference
13193	13193	25 between the employee contributions actually paid for that
13194	13194	26 service and the amounts that would have been contributed
13195	13195
13196	13196
13197	13197
13198	13198
13199	13199
13200	13200	HB4873 - 368 - LRB103 35886 RPS 65971 b
13201	13201
13202	13202
13203	13203	HB4873- 369 -LRB103 35886 RPS 65971 b HB4873 - 369 - LRB103 35886 RPS 65971 b
13204	13204	HB4873 - 369 - LRB103 35886 RPS 65971 b
13205	13205	1 if the applicant were contributing at the rate applicable
13206	13206	2 to persons with the same social security status earning
13207	13207	3 eligible creditable service on the date of application.
13208	13208	4 (18) The term "State highway maintenance worker" means
13209	13209	5 a person who is either of the following:
13210	13210	6 (i) A person employed on a full-time basis by the
13211	13211	7 Illinois Department of Transportation in the position
13212	13212	8 of highway maintainer, highway maintenance lead
13213	13213	9 worker, highway maintenance lead/lead worker, heavy
13214	13214	10 construction equipment operator, power shovel
13215	13215	11 operator, or bridge mechanic; and whose principal
13216	13216	12 responsibility is to perform, on the roadway, the
13217	13217	13 actual maintenance necessary to keep the highways that
13218	13218	14 form a part of the State highway system in serviceable
13219	13219	15 condition for vehicular traffic.
13220	13220	16 (ii) A person employed on a full-time basis by the
13221	13221	17 Illinois State Toll Highway Authority in the position
13222	13222	18 of equipment operator/laborer H-4, equipment
13223	13223	19 operator/laborer H-6, welder H-4, welder H-6,
13224	13224	20 mechanical/electrical H-4, mechanical/electrical H-6,
13225	13225	21 water/sewer H-4, water/sewer H-6, sign maker/hanger
13226	13226	22 H-4, sign maker/hanger H-6, roadway lighting H-4,
13227	13227	23 roadway lighting H-6, structural H-4, structural H-6,
13228	13228	24 painter H-4, or painter H-6; and whose principal
13229	13229	25 responsibility is to perform, on the roadway, the
13230	13230	26 actual maintenance necessary to keep the Authority's
13231	13231
13232	13232
13233	13233
13234	13234
13235	13235
13236	13236	HB4873 - 369 - LRB103 35886 RPS 65971 b
13237	13237
13238	13238
13239	13239	HB4873- 370 -LRB103 35886 RPS 65971 b HB4873 - 370 - LRB103 35886 RPS 65971 b
13240	13240	HB4873 - 370 - LRB103 35886 RPS 65971 b
13241	13241	1 tollways in serviceable condition for vehicular
13242	13242	2 traffic.
13243	13243	3 (19) The term "security employee of the Department of
13244	13244	4 Innovation and Technology" means a person who was a
13245	13245	5 security employee of the Department of Corrections or the
13246	13246	6 Department of Juvenile Justice, was transferred to the
13247	13247	7 Department of Innovation and Technology pursuant to
13248	13248	8 Executive Order 2016-01, and continues to perform similar
13249	13249	9 job functions under that Department.
13250	13250	10 (20) "Transferred employee" means an employee who was
13251	13251	11 transferred to the Department of Central Management
13252	13252	12 Services by Executive Order No. 2003-10 or Executive Order
13253	13253	13 No. 2004-2 or transferred to the Department of Innovation
13254	13254	14 and Technology by Executive Order No. 2016-1, or both, and
13255	13255	15 was entitled to eligible creditable service for services
13256	13256	16 immediately preceding the transfer.
13257	13257	17 (21) The term "investigator for the Department of the
13258	13258	18 Lottery" means any person employed by the Department of
13259	13259	19 the Lottery and who is vested with such investigative
13260	13260	20 duties which render him or her ineligible for coverage
13261	13261	21 under the Social Security Act by reason of Sections
13262	13262	22 218(d)(5)(A), 218(d)(8)(D), and 218(l)(1) of that Act. An
13263	13263	23 investigator for the Department of the Lottery who
13264	13264	24 qualifies under this Section shall earn eligible
13265	13265	25 creditable service and be required to make contributions
13266	13266	26 at the rate specified in paragraph (3) of subsection (a)
13267	13267
13268	13268
13269	13269
13270	13270
13271	13271
13272	13272	HB4873 - 370 - LRB103 35886 RPS 65971 b
13273	13273
13274	13274
13275	13275	HB4873- 371 -LRB103 35886 RPS 65971 b HB4873 - 371 - LRB103 35886 RPS 65971 b
13276	13276	HB4873 - 371 - LRB103 35886 RPS 65971 b
13277	13277	1 of Section 14-133 for all periods of service as an
13278	13278	2 investigator for the Department of the Lottery.
13279	13279	3 (d) A security employee of the Department of Corrections
13280	13280	4 or the Department of Juvenile Justice, a security employee of
13281	13281	5 the Department of Human Services who is not a mental health
13282	13282	6 police officer, and a security employee of the Department of
13283	13283	7 Innovation and Technology shall not be eligible for the
13284	13284	8 alternative retirement annuity provided by this Section unless
13285	13285	9 he or she meets the following minimum age and service
13286	13286	10 requirements at the time of retirement:
13287	13287	11 (i) 25 years of eligible creditable service and age
13288	13288	12 55; or
13289	13289	13 (ii) beginning January 1, 1987, 25 years of eligible
13290	13290	14 creditable service and age 54, or 24 years of eligible
13291	13291	15 creditable service and age 55; or
13292	13292	16 (iii) beginning January 1, 1988, 25 years of eligible
13293	13293	17 creditable service and age 53, or 23 years of eligible
13294	13294	18 creditable service and age 55; or
13295	13295	19 (iv) beginning January 1, 1989, 25 years of eligible
13296	13296	20 creditable service and age 52, or 22 years of eligible
13297	13297	21 creditable service and age 55; or
13298	13298	22 (v) beginning January 1, 1990, 25 years of eligible
13299	13299	23 creditable service and age 51, or 21 years of eligible
13300	13300	24 creditable service and age 55; or
13301	13301	25 (vi) beginning January 1, 1991, 25 years of eligible
13302	13302	26 creditable service and age 50, or 20 years of eligible
13303	13303
13304	13304
13305	13305
13306	13306
13307	13307
13308	13308	HB4873 - 371 - LRB103 35886 RPS 65971 b
13309	13309
13310	13310
13311	13311	HB4873- 372 -LRB103 35886 RPS 65971 b HB4873 - 372 - LRB103 35886 RPS 65971 b
13312	13312	HB4873 - 372 - LRB103 35886 RPS 65971 b
13313	13313	1 creditable service and age 55.
13314	13314	2 Persons who have service credit under Article 16 of this
13315	13315	3 Code for service as a security employee of the Department of
13316	13316	4 Corrections or the Department of Juvenile Justice, or the
13317	13317	5 Department of Human Services in a position requiring
13318	13318	6 certification as a teacher may count such service toward
13319	13319	7 establishing their eligibility under the service requirements
13320	13320	8 of this Section; but such service may be used only for
13321	13321	9 establishing such eligibility, and not for the purpose of
13322	13322	10 increasing or calculating any benefit.
13323	13323	11 (e) If a member enters military service while working in a
13324	13324	12 position in which eligible creditable service may be earned,
13325	13325	13 and returns to State service in the same or another such
13326	13326	14 position, and fulfills in all other respects the conditions
13327	13327	15 prescribed in this Article for credit for military service,
13328	13328	16 such military service shall be credited as eligible creditable
13329	13329	17 service for the purposes of the retirement annuity prescribed
13330	13330	18 in this Section.
13331	13331	19 (f) For purposes of calculating retirement annuities under
13332	13332	20 this Section, periods of service rendered after December 31,
13333	13333	21 1968 and before October 1, 1975 as a covered employee in the
13334	13334	22 position of special agent, conservation police officer, mental
13335	13335	23 health police officer, or investigator for the Secretary of
13336	13336	24 State, shall be deemed to have been service as a noncovered
13337	13337	25 employee, provided that the employee pays to the System prior
13338	13338	26 to retirement an amount equal to (1) the difference between
13339	13339
13340	13340
13341	13341
13342	13342
13343	13343
13344	13344	HB4873 - 372 - LRB103 35886 RPS 65971 b
13345	13345
13346	13346
13347	13347	HB4873- 373 -LRB103 35886 RPS 65971 b HB4873 - 373 - LRB103 35886 RPS 65971 b
13348	13348	HB4873 - 373 - LRB103 35886 RPS 65971 b
13349	13349	1 the employee contributions that would have been required for
13350	13350	2 such service as a noncovered employee, and the amount of
13351	13351	3 employee contributions actually paid, plus (2) if payment is
13352	13352	4 made after July 31, 1987, regular interest on the amount
13353	13353	5 specified in item (1) from the date of service to the date of
13354	13354	6 payment.
13355	13355	7 For purposes of calculating retirement annuities under
13356	13356	8 this Section, periods of service rendered after December 31,
13357	13357	9 1968 and before January 1, 1982 as a covered employee in the
13358	13358	10 position of investigator for the Department of Revenue shall
13359	13359	11 be deemed to have been service as a noncovered employee,
13360	13360	12 provided that the employee pays to the System prior to
13361	13361	13 retirement an amount equal to (1) the difference between the
13362	13362	14 employee contributions that would have been required for such
13363	13363	15 service as a noncovered employee, and the amount of employee
13364	13364	16 contributions actually paid, plus (2) if payment is made after
13365	13365	17 January 1, 1990, regular interest on the amount specified in
13366	13366	18 item (1) from the date of service to the date of payment.
13367	13367	19 (g) A State policeman may elect, not later than January 1,
13368	13368	20 1990, to establish eligible creditable service for up to 10
13369	13369	21 years of his service as a policeman under Article 3, by filing
13370	13370	22 a written election with the Board, accompanied by payment of
13371	13371	23 an amount to be determined by the Board, equal to (i) the
13372	13372	24 difference between the amount of employee and employer
13373	13373	25 contributions transferred to the System under Section 3-110.5,
13374	13374	26 and the amounts that would have been contributed had such
13375	13375
13376	13376
13377	13377
13378	13378
13379	13379
13380	13380	HB4873 - 373 - LRB103 35886 RPS 65971 b
13381	13381
13382	13382
13383	13383	HB4873- 374 -LRB103 35886 RPS 65971 b HB4873 - 374 - LRB103 35886 RPS 65971 b
13384	13384	HB4873 - 374 - LRB103 35886 RPS 65971 b
13385	13385	1 contributions been made at the rates applicable to State
13386	13386	2 policemen, plus (ii) interest thereon at the effective rate
13387	13387	3 for each year, compounded annually, from the date of service
13388	13388	4 to the date of payment.
13389	13389	5 Subject to the limitation in subsection (i), a State
13390	13390	6 policeman may elect, not later than July 1, 1993, to establish
13391	13391	7 eligible creditable service for up to 10 years of his service
13392	13392	8 as a member of the County Police Department under Article 9, by
13393	13393	9 filing a written election with the Board, accompanied by
13394	13394	10 payment of an amount to be determined by the Board, equal to
13395	13395	11 (i) the difference between the amount of employee and employer
13396	13396	12 contributions transferred to the System under Section 9-121.10
13397	13397	13 and the amounts that would have been contributed had those
13398	13398	14 contributions been made at the rates applicable to State
13399	13399	15 policemen, plus (ii) interest thereon at the effective rate
13400	13400	16 for each year, compounded annually, from the date of service
13401	13401	17 to the date of payment.
13402	13402	18 (h) Subject to the limitation in subsection (i), a State
13403	13403	19 policeman or investigator for the Secretary of State may elect
13404	13404	20 to establish eligible creditable service for up to 12 years of
13405	13405	21 his service as a policeman under Article 5, by filing a written
13406	13406	22 election with the Board on or before January 31, 1992, and
13407	13407	23 paying to the System by January 31, 1994 an amount to be
13408	13408	24 determined by the Board, equal to (i) the difference between
13409	13409	25 the amount of employee and employer contributions transferred
13410	13410	26 to the System under Section 5-236, and the amounts that would
13411	13411
13412	13412
13413	13413
13414	13414
13415	13415
13416	13416	HB4873 - 374 - LRB103 35886 RPS 65971 b
13417	13417
13418	13418
13419	13419	HB4873- 375 -LRB103 35886 RPS 65971 b HB4873 - 375 - LRB103 35886 RPS 65971 b
13420	13420	HB4873 - 375 - LRB103 35886 RPS 65971 b
13421	13421	1 have been contributed had such contributions been made at the
13422	13422	2 rates applicable to State policemen, plus (ii) interest
13423	13423	3 thereon at the effective rate for each year, compounded
13424	13424	4 annually, from the date of service to the date of payment.
13425	13425	5 Subject to the limitation in subsection (i), a State
13426	13426	6 policeman, conservation police officer, or investigator for
13427	13427	7 the Secretary of State may elect to establish eligible
13428	13428	8 creditable service for up to 10 years of service as a sheriff's
13429	13429	9 law enforcement employee under Article 7, by filing a written
13430	13430	10 election with the Board on or before January 31, 1993, and
13431	13431	11 paying to the System by January 31, 1994 an amount to be
13432	13432	12 determined by the Board, equal to (i) the difference between
13433	13433	13 the amount of employee and employer contributions transferred
13434	13434	14 to the System under Section 7-139.7, and the amounts that
13435	13435	15 would have been contributed had such contributions been made
13436	13436	16 at the rates applicable to State policemen, plus (ii) interest
13437	13437	17 thereon at the effective rate for each year, compounded
13438	13438	18 annually, from the date of service to the date of payment.
13439	13439	19 Subject to the limitation in subsection (i), a State
13440	13440	20 policeman, conservation police officer, or investigator for
13441	13441	21 the Secretary of State may elect to establish eligible
13442	13442	22 creditable service for up to 5 years of service as a police
13443	13443	23 officer under Article 3, a policeman under Article 5, a
13444	13444	24 sheriff's law enforcement employee under Article 7, a member
13445	13445	25 of the county police department under Article 9, or a police
13446	13446	26 officer under Article 15 by filing a written election with the
13447	13447
13448	13448
13449	13449
13450	13450
13451	13451
13452	13452	HB4873 - 375 - LRB103 35886 RPS 65971 b
13453	13453
13454	13454
13455	13455	HB4873- 376 -LRB103 35886 RPS 65971 b HB4873 - 376 - LRB103 35886 RPS 65971 b
13456	13456	HB4873 - 376 - LRB103 35886 RPS 65971 b
13457	13457	1 Board and paying to the System an amount to be determined by
13458	13458	2 the Board, equal to (i) the difference between the amount of
13459	13459	3 employee and employer contributions transferred to the System
13460	13460	4 under Section 3-110.6, 5-236, 7-139.8, 9-121.10, or 15-134.4
13461	13461	5 and the amounts that would have been contributed had such
13462	13462	6 contributions been made at the rates applicable to State
13463	13463	7 policemen, plus (ii) interest thereon at the effective rate
13464	13464	8 for each year, compounded annually, from the date of service
13465	13465	9 to the date of payment.
13466	13466	10 Subject to the limitation in subsection (i), an
13467	13467	11 investigator for the Office of the Attorney General, or an
13468	13468	12 investigator for the Department of Revenue, may elect to
13469	13469	13 establish eligible creditable service for up to 5 years of
13470	13470	14 service as a police officer under Article 3, a policeman under
13471	13471	15 Article 5, a sheriff's law enforcement employee under Article
13472	13472	16 7, or a member of the county police department under Article 9
13473	13473	17 by filing a written election with the Board within 6 months
13474	13474	18 after August 25, 2009 (the effective date of Public Act
13475	13475	19 96-745) and paying to the System an amount to be determined by
13476	13476	20 the Board, equal to (i) the difference between the amount of
13477	13477	21 employee and employer contributions transferred to the System
13478	13478	22 under Section 3-110.6, 5-236, 7-139.8, or 9-121.10 and the
13479	13479	23 amounts that would have been contributed had such
13480	13480	24 contributions been made at the rates applicable to State
13481	13481	25 policemen, plus (ii) interest thereon at the actuarially
13482	13482	26 assumed rate for each year, compounded annually, from the date
13483	13483
13484	13484
13485	13485
13486	13486
13487	13487
13488	13488	HB4873 - 376 - LRB103 35886 RPS 65971 b
13489	13489
13490	13490
13491	13491	HB4873- 377 -LRB103 35886 RPS 65971 b HB4873 - 377 - LRB103 35886 RPS 65971 b
13492	13492	HB4873 - 377 - LRB103 35886 RPS 65971 b
13493	13493	1 of service to the date of payment.
13494	13494	2 Subject to the limitation in subsection (i), a State
13495	13495	3 policeman, conservation police officer, investigator for the
13496	13496	4 Office of the Attorney General, an investigator for the
13497	13497	5 Department of Revenue, or investigator for the Secretary of
13498	13498	6 State may elect to establish eligible creditable service for
13499	13499	7 up to 5 years of service as a person employed by a
13500	13500	8 participating municipality to perform police duties, or law
13501	13501	9 enforcement officer employed on a full-time basis by a forest
13502	13502	10 preserve district under Article 7, a county corrections
13503	13503	11 officer, or a court services officer under Article 9, by
13504	13504	12 filing a written election with the Board within 6 months after
13505	13505	13 August 25, 2009 (the effective date of Public Act 96-745) and
13506	13506	14 paying to the System an amount to be determined by the Board,
13507	13507	15 equal to (i) the difference between the amount of employee and
13508	13508	16 employer contributions transferred to the System under
13509	13509	17 Sections 7-139.8 and 9-121.10 and the amounts that would have
13510	13510	18 been contributed had such contributions been made at the rates
13511	13511	19 applicable to State policemen, plus (ii) interest thereon at
13512	13512	20 the actuarially assumed rate for each year, compounded
13513	13513	21 annually, from the date of service to the date of payment.
13514	13514	22 Subject to the limitation in subsection (i), a State
13515	13515	23 policeman, arson investigator, or Commerce Commission police
13516	13516	24 officer may elect to establish eligible creditable service for
13517	13517	25 up to 5 years of service as a person employed by a
13518	13518	26 participating municipality to perform police duties under
13519	13519
13520	13520
13521	13521
13522	13522
13523	13523
13524	13524	HB4873 - 377 - LRB103 35886 RPS 65971 b
13525	13525
13526	13526
13527	13527	HB4873- 378 -LRB103 35886 RPS 65971 b HB4873 - 378 - LRB103 35886 RPS 65971 b
13528	13528	HB4873 - 378 - LRB103 35886 RPS 65971 b
13529	13529	1 Article 7, a county corrections officer, a court services
13530	13530	2 officer under Article 9, or a firefighter under Article 4 by
13531	13531	3 filing a written election with the Board within 6 months after
13532	13532	4 July 30, 2021 (the effective date of Public Act 102-210) and
13533	13533	5 paying to the System an amount to be determined by the Board
13534	13534	6 equal to (i) the difference between the amount of employee and
13535	13535	7 employer contributions transferred to the System under
13536	13536	8 Sections 4-108.8, 7-139.8, and 9-121.10 and the amounts that
13537	13537	9 would have been contributed had such contributions been made
13538	13538	10 at the rates applicable to State policemen, plus (ii) interest
13539	13539	11 thereon at the actuarially assumed rate for each year,
13540	13540	12 compounded annually, from the date of service to the date of
13541	13541	13 payment.
13542	13542	14 Subject to the limitation in subsection (i), a
13543	13543	15 conservation police officer may elect to establish eligible
13544	13544	16 creditable service for up to 5 years of service as a person
13545	13545	17 employed by a participating municipality to perform police
13546	13546	18 duties under Article 7, a county corrections officer, or a
13547	13547	19 court services officer under Article 9 by filing a written
13548	13548	20 election with the Board within 6 months after July 30, 2021
13549	13549	21 (the effective date of Public Act 102-210) and paying to the
13550	13550	22 System an amount to be determined by the Board equal to (i) the
13551	13551	23 difference between the amount of employee and employer
13552	13552	24 contributions transferred to the System under Sections 7-139.8
13553	13553	25 and 9-121.10 and the amounts that would have been contributed
13554	13554	26 had such contributions been made at the rates applicable to
13555	13555
13556	13556
13557	13557
13558	13558
13559	13559
13560	13560	HB4873 - 378 - LRB103 35886 RPS 65971 b
13561	13561
13562	13562
13563	13563	HB4873- 379 -LRB103 35886 RPS 65971 b HB4873 - 379 - LRB103 35886 RPS 65971 b
13564	13564	HB4873 - 379 - LRB103 35886 RPS 65971 b
13565	13565	1 State policemen, plus (ii) interest thereon at the actuarially
13566	13566	2 assumed rate for each year, compounded annually, from the date
13567	13567	3 of service to the date of payment.
13568	13568	4 Notwithstanding the limitation in subsection (i), a State
13569	13569	5 policeman or conservation police officer may elect to convert
13570	13570	6 service credit earned under this Article to eligible
13571	13571	7 creditable service, as defined by this Section, by filing a
13572	13572	8 written election with the board within 6 months after July 30,
13573	13573	9 2021 (the effective date of Public Act 102-210) and paying to
13574	13574	10 the System an amount to be determined by the Board equal to (i)
13575	13575	11 the difference between the amount of employee contributions
13576	13576	12 originally paid for that service and the amounts that would
13577	13577	13 have been contributed had such contributions been made at the
13578	13578	14 rates applicable to State policemen, plus (ii) the difference
13579	13579	15 between the employer's normal cost of the credit prior to the
13580	13580	16 conversion authorized by Public Act 102-210 and the employer's
13581	13581	17 normal cost of the credit converted in accordance with Public
13582	13582	18 Act 102-210, plus (iii) interest thereon at the actuarially
13583	13583	19 assumed rate for each year, compounded annually, from the date
13584	13584	20 of service to the date of payment.
13585	13585	21 Subject to the limitation in subsection (i), a security
13586	13586	22 employee of the Department of Human Services who is subject to
13587	13587	23 subsection (g-1) of Section 1-160 may elect to convert up to 12
13588	13588	24 years of service credit established before the effective date
13589	13589	25 of this amendatory Act of the 103rd General Assembly as a
13590	13590	26 security employee of the Department of Human Services to
13591	13591
13592	13592
13593	13593
13594	13594
13595	13595
13596	13596	HB4873 - 379 - LRB103 35886 RPS 65971 b
13597	13597
13598	13598
13599	13599	HB4873- 380 -LRB103 35886 RPS 65971 b HB4873 - 380 - LRB103 35886 RPS 65971 b
13600	13600	HB4873 - 380 - LRB103 35886 RPS 65971 b
13601	13601	1 eligible creditable service by filing a written election with
13602	13602	2 the Board no later than 2 years after the effective date of
13603	13603	3 this amendatory Act of the 103rd General Assembly, accompanied
13604	13604	4 by payment of an amount, to be determined by the Board, equal
13605	13605	5 to (i) the difference between the amount of the employee
13606	13606	6 contributions actually paid for that service and the amount of
13607	13607	7 the employee contributions that would have been paid had the
13608	13608	8 employee contributions been made as a covered employee serving
13609	13609	9 in a position in which eligible creditable service, as defined
13610	13610	10 in this Section, may be earned, plus (ii) interest thereon at
13611	13611	11 the effective rate for each year, compounded annually, from
13612	13612	12 the date of service to the date of payment.
13613	13613	13 (i) The total amount of eligible creditable service
13614	13614	14 established by any person under subsections (g), (h), (j),
13615	13615	15 (k), (l), (l-5), and (o) of this Section shall not exceed 12
13616	13616	16 years.
13617	13617	17 (j) Subject to the limitation in subsection (i), an
13618	13618	18 investigator for the Office of the State's Attorneys Appellate
13619	13619	19 Prosecutor or a controlled substance inspector may elect to
13620	13620	20 establish eligible creditable service for up to 10 years of
13621	13621	21 his service as a policeman under Article 3 or a sheriff's law
13622	13622	22 enforcement employee under Article 7, by filing a written
13623	13623	23 election with the Board, accompanied by payment of an amount
13624	13624	24 to be determined by the Board, equal to (1) the difference
13625	13625	25 between the amount of employee and employer contributions
13626	13626	26 transferred to the System under Section 3-110.6 or 7-139.8,
13627	13627
13628	13628
13629	13629
13630	13630
13631	13631
13632	13632	HB4873 - 380 - LRB103 35886 RPS 65971 b
13633	13633
13634	13634
13635	13635	HB4873- 381 -LRB103 35886 RPS 65971 b HB4873 - 381 - LRB103 35886 RPS 65971 b
13636	13636	HB4873 - 381 - LRB103 35886 RPS 65971 b
13637	13637	1 and the amounts that would have been contributed had such
13638	13638	2 contributions been made at the rates applicable to State
13639	13639	3 policemen, plus (2) interest thereon at the effective rate for
13640	13640	4 each year, compounded annually, from the date of service to
13641	13641	5 the date of payment.
13642	13642	6 (k) Subject to the limitation in subsection (i) of this
13643	13643	7 Section, an alternative formula employee may elect to
13644	13644	8 establish eligible creditable service for periods spent as a
13645	13645	9 full-time law enforcement officer or full-time corrections
13646	13646	10 officer employed by the federal government or by a state or
13647	13647	11 local government located outside of Illinois, for which credit
13648	13648	12 is not held in any other public employee pension fund or
13649	13649	13 retirement system. To obtain this credit, the applicant must
13650	13650	14 file a written application with the Board by March 31, 1998,
13651	13651	15 accompanied by evidence of eligibility acceptable to the Board
13652	13652	16 and payment of an amount to be determined by the Board, equal
13653	13653	17 to (1) employee contributions for the credit being
13654	13654	18 established, based upon the applicant's salary on the first
13655	13655	19 day as an alternative formula employee after the employment
13656	13656	20 for which credit is being established and the rates then
13657	13657	21 applicable to alternative formula employees, plus (2) an
13658	13658	22 amount determined by the Board to be the employer's normal
13659	13659	23 cost of the benefits accrued for the credit being established,
13660	13660	24 plus (3) regular interest on the amounts in items (1) and (2)
13661	13661	25 from the first day as an alternative formula employee after
13662	13662	26 the employment for which credit is being established to the
13663	13663
13664	13664
13665	13665
13666	13666
13667	13667
13668	13668	HB4873 - 381 - LRB103 35886 RPS 65971 b
13669	13669
13670	13670
13671	13671	HB4873- 382 -LRB103 35886 RPS 65971 b HB4873 - 382 - LRB103 35886 RPS 65971 b
13672	13672	HB4873 - 382 - LRB103 35886 RPS 65971 b
13673	13673	1 date of payment.
13674	13674	2 (l) Subject to the limitation in subsection (i), a
13675	13675	3 security employee of the Department of Corrections may elect,
13676	13676	4 not later than July 1, 1998, to establish eligible creditable
13677	13677	5 service for up to 10 years of his or her service as a policeman
13678	13678	6 under Article 3, by filing a written election with the Board,
13679	13679	7 accompanied by payment of an amount to be determined by the
13680	13680	8 Board, equal to (i) the difference between the amount of
13681	13681	9 employee and employer contributions transferred to the System
13682	13682	10 under Section 3-110.5, and the amounts that would have been
13683	13683	11 contributed had such contributions been made at the rates
13684	13684	12 applicable to security employees of the Department of
13685	13685	13 Corrections, plus (ii) interest thereon at the effective rate
13686	13686	14 for each year, compounded annually, from the date of service
13687	13687	15 to the date of payment.
13688	13688	16 (l-5) Subject to the limitation in subsection (i) of this
13689	13689	17 Section, a State policeman may elect to establish eligible
13690	13690	18 creditable service for up to 5 years of service as a full-time
13691	13691	19 law enforcement officer employed by the federal government or
13692	13692	20 by a state or local government located outside of Illinois for
13693	13693	21 which credit is not held in any other public employee pension
13694	13694	22 fund or retirement system. To obtain this credit, the
13695	13695	23 applicant must file a written application with the Board no
13696	13696	24 later than 3 years after January 1, 2020 (the effective date of
13697	13697	25 Public Act 101-610), accompanied by evidence of eligibility
13698	13698	26 acceptable to the Board and payment of an amount to be
13699	13699
13700	13700
13701	13701
13702	13702
13703	13703
13704	13704	HB4873 - 382 - LRB103 35886 RPS 65971 b
13705	13705
13706	13706
13707	13707	HB4873- 383 -LRB103 35886 RPS 65971 b HB4873 - 383 - LRB103 35886 RPS 65971 b
13708	13708	HB4873 - 383 - LRB103 35886 RPS 65971 b
13709	13709	1 determined by the Board, equal to (1) employee contributions
13710	13710	2 for the credit being established, based upon the applicant's
13711	13711	3 salary on the first day as an alternative formula employee
13712	13712	4 after the employment for which credit is being established and
13713	13713	5 the rates then applicable to alternative formula employees,
13714	13714	6 plus (2) an amount determined by the Board to be the employer's
13715	13715	7 normal cost of the benefits accrued for the credit being
13716	13716	8 established, plus (3) regular interest on the amounts in items
13717	13717	9 (1) and (2) from the first day as an alternative formula
13718	13718	10 employee after the employment for which credit is being
13719	13719	11 established to the date of payment.
13720	13720	12 (m) The amendatory changes to this Section made by Public
13721	13721	13 Act 94-696 apply only to: (1) security employees of the
13722	13722	14 Department of Juvenile Justice employed by the Department of
13723	13723	15 Corrections before June 1, 2006 (the effective date of Public
13724	13724	16 Act 94-696) and transferred to the Department of Juvenile
13725	13725	17 Justice by Public Act 94-696; and (2) persons employed by the
13726	13726	18 Department of Juvenile Justice on or after June 1, 2006 (the
13727	13727	19 effective date of Public Act 94-696) who are required by
13728	13728	20 subsection (b) of Section 3-2.5-15 of the Unified Code of
13729	13729	21 Corrections to have any bachelor's or advanced degree from an
13730	13730	22 accredited college or university or, in the case of persons
13731	13731	23 who provide vocational training, who are required to have
13732	13732	24 adequate knowledge in the skill for which they are providing
13733	13733	25 the vocational training.
13734	13734	26 Beginning with the pay period that immediately follows the
13735	13735
13736	13736
13737	13737
13738	13738
13739	13739
13740	13740	HB4873 - 383 - LRB103 35886 RPS 65971 b
13741	13741
13742	13742
13743	13743	HB4873- 384 -LRB103 35886 RPS 65971 b HB4873 - 384 - LRB103 35886 RPS 65971 b
13744	13744	HB4873 - 384 - LRB103 35886 RPS 65971 b
13745	13745	1 effective date of this amendatory Act of the 103rd General
13746	13746	2 Assembly, the bachelor's or advanced degree requirement of
13747	13747	3 subsection (b) of Section 3-2.5-15 of the Unified Code of
13748	13748	4 Corrections shall no longer determine the eligibility to earn
13749	13749	5 eligible creditable service for a person employed by the
13750	13750	6 Department of Juvenile Justice.
13751	13751	7 An employee may elect to convert into eligible creditable
13752	13752	8 service his or her creditable service earned with the
13753	13753	9 Department of Juvenile Justice while employed in a position
13754	13754	10 that required the employee to do any one or more of the
13755	13755	11 following: (1) participate or assist in the rehabilitative and
13756	13756	12 vocational training of delinquent youths; (2) supervise the
13757	13757	13 daily activities and assume direct and continuing
13758	13758	14 responsibility for the youth's security, welfare, and
13759	13759	15 development; or (3) participate in the personal rehabilitation
13760	13760	16 of delinquent youth by training, supervising, and assisting
13761	13761	17 lower-level personnel. To convert that creditable service to
13762	13762	18 eligible creditable service, the employee must pay to the
13763	13763	19 System the difference between the employee contributions
13764	13764	20 actually paid for that service and the amounts that would have
13765	13765	21 been contributed if the applicant were contributing at the
13766	13766	22 rate applicable to persons with the same Social Security
13767	13767	23 status earning eligible creditable service on the date of
13768	13768	24 application.
13769	13769	25 (n) A person employed in a position under subsection (b)
13770	13770	26 of this Section who has purchased service credit under
13771	13771
13772	13772
13773	13773
13774	13774
13775	13775
13776	13776	HB4873 - 384 - LRB103 35886 RPS 65971 b
13777	13777
13778	13778
13779	13779	HB4873- 385 -LRB103 35886 RPS 65971 b HB4873 - 385 - LRB103 35886 RPS 65971 b
13780	13780	HB4873 - 385 - LRB103 35886 RPS 65971 b
13781	13781	1 subsection (j) of Section 14-104 or subsection (b) of Section
13782	13782	2 14-105 in any other capacity under this Article may convert up
13783	13783	3 to 5 years of that service credit into service credit covered
13784	13784	4 under this Section by paying to the Fund an amount equal to (1)
13785	13785	5 the additional employee contribution required under Section
13786	13786	6 14-133, plus (2) the additional employer contribution required
13787	13787	7 under Section 14-131, plus (3) interest on items (1) and (2) at
13788	13788	8 the actuarially assumed rate from the date of the service to
13789	13789	9 the date of payment.
13790	13790	10 (o) Subject to the limitation in subsection (i), a
13791	13791	11 conservation police officer, investigator for the Secretary of
13792	13792	12 State, Commerce Commission police officer, investigator for
13793	13793	13 the Department of Revenue or the Illinois Gaming Board, or
13794	13794	14 arson investigator subject to subsection (g) of Section 1-160
13795	13795	15 may elect to convert up to 8 years of service credit
13796	13796	16 established before January 1, 2020 (the effective date of
13797	13797	17 Public Act 101-610) as a conservation police officer,
13798	13798	18 investigator for the Secretary of State, Commerce Commission
13799	13799	19 police officer, investigator for the Department of Revenue or
13800	13800	20 the Illinois Gaming Board, or arson investigator under this
13801	13801	21 Article into eligible creditable service by filing a written
13802	13802	22 election with the Board no later than one year after January 1,
13803	13803	23 2020 (the effective date of Public Act 101-610), accompanied
13804	13804	24 by payment of an amount to be determined by the Board equal to
13805	13805	25 (i) the difference between the amount of the employee
13806	13806	26 contributions actually paid for that service and the amount of
13807	13807
13808	13808
13809	13809
13810	13810
13811	13811
13812	13812	HB4873 - 385 - LRB103 35886 RPS 65971 b
13813	13813
13814	13814
13815	13815	HB4873- 386 -LRB103 35886 RPS 65971 b HB4873 - 386 - LRB103 35886 RPS 65971 b
13816	13816	HB4873 - 386 - LRB103 35886 RPS 65971 b
13817	13817	1 the employee contributions that would have been paid had the
13818	13818	2 employee contributions been made as a noncovered employee
13819	13819	3 serving in a position in which eligible creditable service, as
13820	13820	4 defined in this Section, may be earned, plus (ii) interest
13821	13821	5 thereon at the effective rate for each year, compounded
13822	13822	6 annually, from the date of service to the date of payment.
13823	13823	7 (Source: P.A. 102-210, eff. 7-30-21; 102-538, eff. 8-20-21;
13824	13824	8 102-813, eff. 5-13-22; 103-34, eff. 1-1-24.)
13825	13825	9 (Text of Section from P.A. 102-856 and 103-34)
13826	13826	10 Sec. 14-110. Alternative retirement annuity.
13827	13827	11 (a) Any member who has withdrawn from service with not
13828	13828	12 less than 20 years of eligible creditable service and has
13829	13829	13 attained age 55, and any member who has withdrawn from service
13830	13830	14 with not less than 25 years of eligible creditable service and
13831	13831	15 has attained age 50, regardless of whether the attainment of
13832	13832	16 either of the specified ages occurs while the member is still
13833	13833	17 in service, shall be entitled to receive at the option of the
13834	13834	18 member, in lieu of the regular or minimum retirement annuity,
13835	13835	19 a retirement annuity computed as follows:
13836	13836	20 (i) for periods of service as a noncovered employee:
13837	13837	21 if retirement occurs on or after January 1, 2001, 3% of
13838	13838	22 final average compensation for each year of creditable
13839	13839	23 service; if retirement occurs before January 1, 2001, 2
13840	13840	24 1/4% of final average compensation for each of the first
13841	13841	25 10 years of creditable service, 2 1/2% for each year above
13842	13842
13843	13843
13844	13844
13845	13845
13846	13846
13847	13847	HB4873 - 386 - LRB103 35886 RPS 65971 b
13848	13848
13849	13849
13850	13850	HB4873- 387 -LRB103 35886 RPS 65971 b HB4873 - 387 - LRB103 35886 RPS 65971 b
13851	13851	HB4873 - 387 - LRB103 35886 RPS 65971 b
13852	13852	1 10 years to and including 20 years of creditable service,
13853	13853	2 and 2 3/4% for each year of creditable service above 20
13854	13854	3 years; and
13855	13855	4 (ii) for periods of eligible creditable service as a
13856	13856	5 covered employee: if retirement occurs on or after January
13857	13857	6 1, 2001, 2.5% of final average compensation for each year
13858	13858	7 of creditable service; if retirement occurs before January
13859	13859	8 1, 2001, 1.67% of final average compensation for each of
13860	13860	9 the first 10 years of such service, 1.90% for each of the
13861	13861	10 next 10 years of such service, 2.10% for each year of such
13862	13862	11 service in excess of 20 but not exceeding 30, and 2.30% for
13863	13863	12 each year in excess of 30.
13864	13864	13 Such annuity shall be subject to a maximum of 75% of final
13865	13865	14 average compensation if retirement occurs before January 1,
13866	13866	15 2001 or to a maximum of 80% of final average compensation if
13867	13867	16 retirement occurs on or after January 1, 2001.
13868	13868	17 These rates shall not be applicable to any service
13869	13869	18 performed by a member as a covered employee which is not
13870	13870	19 eligible creditable service. Service as a covered employee
13871	13871	20 which is not eligible creditable service shall be subject to
13872	13872	21 the rates and provisions of Section 14-108.
13873	13873	22 (b) For the purpose of this Section, "eligible creditable
13874	13874	23 service" means creditable service resulting from service in
13875	13875	24 one or more of the following positions:
13876	13876	25 (1) State policeman;
13877	13877	26 (2) fire fighter in the fire protection service of a
13878	13878
13879	13879
13880	13880
13881	13881
13882	13882
13883	13883	HB4873 - 387 - LRB103 35886 RPS 65971 b
13884	13884
13885	13885
13886	13886	HB4873- 388 -LRB103 35886 RPS 65971 b HB4873 - 388 - LRB103 35886 RPS 65971 b
13887	13887	HB4873 - 388 - LRB103 35886 RPS 65971 b
13888	13888	1 department;
13889	13889	2 (3) air pilot;
13890	13890	3 (4) special agent;
13891	13891	4 (5) investigator for the Secretary of State;
13892	13892	5 (6) conservation police officer;
13893	13893	6 (7) investigator for the Department of Revenue or the
13894	13894	7 Illinois Gaming Board;
13895	13895	8 (8) security employee of the Department of Human
13896	13896	9 Services;
13897	13897	10 (9) Central Management Services security police
13898	13898	11 officer;
13899	13899	12 (10) security employee of the Department of
13900	13900	13 Corrections or the Department of Juvenile Justice;
13901	13901	14 (11) dangerous drugs investigator;
13902	13902	15 (12) investigator for the Illinois State Police;
13903	13903	16 (13) investigator for the Office of the Attorney
13904	13904	17 General;
13905	13905	18 (14) controlled substance inspector;
13906	13906	19 (15) investigator for the Office of the State's
13907	13907	20 Attorneys Appellate Prosecutor;
13908	13908	21 (16) Commerce Commission police officer;
13909	13909	22 (17) arson investigator;
13910	13910	23 (18) State highway maintenance worker;
13911	13911	24 (19) security employee of the Department of Innovation
13912	13912	25 and Technology; or
13913	13913	26 (20) transferred employee; or .
13914	13914
13915	13915
13916	13916
13917	13917
13918	13918
13919	13919	HB4873 - 388 - LRB103 35886 RPS 65971 b
13920	13920
13921	13921
13922	13922	HB4873- 389 -LRB103 35886 RPS 65971 b HB4873 - 389 - LRB103 35886 RPS 65971 b
13923	13923	HB4873 - 389 - LRB103 35886 RPS 65971 b
13924	13924	1 (21) investigator for the Department of the Lottery.
13925	13925	2 A person employed in one of the positions specified in
13926	13926	3 this subsection is entitled to eligible creditable service for
13927	13927	4 service credit earned under this Article while undergoing the
13928	13928	5 basic police training course approved by the Illinois Law
13929	13929	6 Enforcement Training Standards Board, if completion of that
13930	13930	7 training is required of persons serving in that position. For
13931	13931	8 the purposes of this Code, service during the required basic
13932	13932	9 police training course shall be deemed performance of the
13933	13933	10 duties of the specified position, even though the person is
13934	13934	11 not a sworn peace officer at the time of the training.
13935	13935	12 A person under paragraph (20) is entitled to eligible
13936	13936	13 creditable service for service credit earned under this
13937	13937	14 Article on and after his or her transfer by Executive Order No.
13938	13938	15 2003-10, Executive Order No. 2004-2, or Executive Order No.
13939	13939	16 2016-1.
13940	13940	17 (c) For the purposes of this Section:
13941	13941	18 (1) The term "State policeman" includes any title or
13942	13942	19 position in the Illinois State Police that is held by an
13943	13943	20 individual employed under the Illinois State Police Act.
13944	13944	21 (2) The term "fire fighter in the fire protection
13945	13945	22 service of a department" includes all officers in such
13946	13946	23 fire protection service including fire chiefs and
13947	13947	24 assistant fire chiefs.
13948	13948	25 (3) The term "air pilot" includes any employee whose
13949	13949	26 official job description on file in the Department of
13950	13950
13951	13951
13952	13952
13953	13953
13954	13954
13955	13955	HB4873 - 389 - LRB103 35886 RPS 65971 b
13956	13956
13957	13957
13958	13958	HB4873- 390 -LRB103 35886 RPS 65971 b HB4873 - 390 - LRB103 35886 RPS 65971 b
13959	13959	HB4873 - 390 - LRB103 35886 RPS 65971 b
13960	13960	1 Central Management Services, or in the department by which
13961	13961	2 he is employed if that department is not covered by the
13962	13962	3 Personnel Code, states that his principal duty is the
13963	13963	4 operation of aircraft, and who possesses a pilot's
13964	13964	5 license; however, the change in this definition made by
13965	13965	6 Public Act 83-842 shall not operate to exclude any
13966	13966	7 noncovered employee who was an "air pilot" for the
13967	13967	8 purposes of this Section on January 1, 1984.
13968	13968	9 (4) The term "special agent" means any person who by
13969	13969	10 reason of employment by the Division of Narcotic Control,
13970	13970	11 the Bureau of Investigation or, after July 1, 1977, the
13971	13971	12 Division of Criminal Investigation, the Division of
13972	13972	13 Internal Investigation, the Division of Operations, the
13973	13973	14 Division of Patrol, or any other Division or
13974	13974	15 organizational entity in the Illinois State Police is
13975	13975	16 vested by law with duties to maintain public order,
13976	13976	17 investigate violations of the criminal law of this State,
13977	13977	18 enforce the laws of this State, make arrests and recover
13978	13978	19 property. The term "special agent" includes any title or
13979	13979	20 position in the Illinois State Police that is held by an
13980	13980	21 individual employed under the Illinois State Police Act.
13981	13981	22 (5) The term "investigator for the Secretary of State"
13982	13982	23 means any person employed by the Office of the Secretary
13983	13983	24 of State and vested with such investigative duties as
13984	13984	25 render him ineligible for coverage under the Social
13985	13985	26 Security Act by reason of Sections 218(d)(5)(A),
13986	13986
13987	13987
13988	13988
13989	13989
13990	13990
13991	13991	HB4873 - 390 - LRB103 35886 RPS 65971 b
13992	13992
13993	13993
13994	13994	HB4873- 391 -LRB103 35886 RPS 65971 b HB4873 - 391 - LRB103 35886 RPS 65971 b
13995	13995	HB4873 - 391 - LRB103 35886 RPS 65971 b
13996	13996	1 218(d)(8)(D) and 218(l)(1) of that Act.
13997	13997	2 A person who became employed as an investigator for
13998	13998	3 the Secretary of State between January 1, 1967 and
13999	13999	4 December 31, 1975, and who has served as such until
14000	14000	5 attainment of age 60, either continuously or with a single
14001	14001	6 break in service of not more than 3 years duration, which
14002	14002	7 break terminated before January 1, 1976, shall be entitled
14003	14003	8 to have his retirement annuity calculated in accordance
14004	14004	9 with subsection (a), notwithstanding that he has less than
14005	14005	10 20 years of credit for such service.
14006	14006	11 (6) The term "Conservation Police Officer" means any
14007	14007	12 person employed by the Division of Law Enforcement of the
14008	14008	13 Department of Natural Resources and vested with such law
14009	14009	14 enforcement duties as render him ineligible for coverage
14010	14010	15 under the Social Security Act by reason of Sections
14011	14011	16 218(d)(5)(A), 218(d)(8)(D), and 218(l)(1) of that Act. The
14012	14012	17 term "Conservation Police Officer" includes the positions
14013	14013	18 of Chief Conservation Police Administrator and Assistant
14014	14014	19 Conservation Police Administrator.
14015	14015	20 (7) The term "investigator for the Department of
14016	14016	21 Revenue" means any person employed by the Department of
14017	14017	22 Revenue and vested with such investigative duties as
14018	14018	23 render him ineligible for coverage under the Social
14019	14019	24 Security Act by reason of Sections 218(d)(5)(A),
14020	14020	25 218(d)(8)(D) and 218(l)(1) of that Act.
14021	14021	26 The term "investigator for the Illinois Gaming Board"
14022	14022
14023	14023
14024	14024
14025	14025
14026	14026
14027	14027	HB4873 - 391 - LRB103 35886 RPS 65971 b
14028	14028
14029	14029
14030	14030	HB4873- 392 -LRB103 35886 RPS 65971 b HB4873 - 392 - LRB103 35886 RPS 65971 b
14031	14031	HB4873 - 392 - LRB103 35886 RPS 65971 b
14032	14032	1 means any person employed as such by the Illinois Gaming
14033	14033	2 Board and vested with such peace officer duties as render
14034	14034	3 the person ineligible for coverage under the Social
14035	14035	4 Security Act by reason of Sections 218(d)(5)(A),
14036	14036	5 218(d)(8)(D), and 218(l)(1) of that Act.
14037	14037	6 (8) The term "security employee of the Department of
14038	14038	7 Human Services" means any person employed by the
14039	14039	8 Department of Human Services who (i) is employed at the
14040	14040	9 Chester Mental Health Center and has daily contact with
14041	14041	10 the residents thereof, (ii) is employed within a security
14042	14042	11 unit at a facility operated by the Department and has
14043	14043	12 daily contact with the residents of the security unit,
14044	14044	13 (iii) is employed at a facility operated by the Department
14045	14045	14 that includes a security unit and is regularly scheduled
14046	14046	15 to work at least 50% of his or her working hours within
14047	14047	16 that security unit, or (iv) is a mental health police
14048	14048	17 officer. "Mental health police officer" means any person
14049	14049	18 employed by the Department of Human Services in a position
14050	14050	19 pertaining to the Department's mental health and
14051	14051	20 developmental disabilities functions who is vested with
14052	14052	21 such law enforcement duties as render the person
14053	14053	22 ineligible for coverage under the Social Security Act by
14054	14054	23 reason of Sections 218(d)(5)(A), 218(d)(8)(D) and
14055	14055	24 218(l)(1) of that Act. "Security unit" means that portion
14056	14056	25 of a facility that is devoted to the care, containment,
14057	14057	26 and treatment of persons committed to the Department of
14058	14058
14059	14059
14060	14060
14061	14061
14062	14062
14063	14063	HB4873 - 392 - LRB103 35886 RPS 65971 b
14064	14064
14065	14065
14066	14066	HB4873- 393 -LRB103 35886 RPS 65971 b HB4873 - 393 - LRB103 35886 RPS 65971 b
14067	14067	HB4873 - 393 - LRB103 35886 RPS 65971 b
14068	14068	1 Human Services as sexually violent persons, persons unfit
14069	14069	2 to stand trial, or persons not guilty by reason of
14070	14070	3 insanity. With respect to past employment, references to
14071	14071	4 the Department of Human Services include its predecessor,
14072	14072	5 the Department of Mental Health and Developmental
14073	14073	6 Disabilities.
14074	14074	7 The changes made to this subdivision (c)(8) by Public
14075	14075	8 Act 92-14 apply to persons who retire on or after January
14076	14076	9 1, 2001, notwithstanding Section 1-103.1.
14077	14077	10 (9) "Central Management Services security police
14078	14078	11 officer" means any person employed by the Department of
14079	14079	12 Central Management Services who is vested with such law
14080	14080	13 enforcement duties as render him ineligible for coverage
14081	14081	14 under the Social Security Act by reason of Sections
14082	14082	15 218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that Act.
14083	14083	16 (10) For a member who first became an employee under
14084	14084	17 this Article before July 1, 2005, the term "security
14085	14085	18 employee of the Department of Corrections or the
14086	14086	19 Department of Juvenile Justice" means any employee of the
14087	14087	20 Department of Corrections or the Department of Juvenile
14088	14088	21 Justice or the former Department of Personnel, and any
14089	14089	22 member or employee of the Prisoner Review Board, who has
14090	14090	23 daily contact with inmates or youth by working within a
14091	14091	24 correctional facility or Juvenile facility operated by the
14092	14092	25 Department of Juvenile Justice or who is a parole officer
14093	14093	26 or an employee who has direct contact with committed
14094	14094
14095	14095
14096	14096
14097	14097
14098	14098
14099	14099	HB4873 - 393 - LRB103 35886 RPS 65971 b
14100	14100
14101	14101
14102	14102	HB4873- 394 -LRB103 35886 RPS 65971 b HB4873 - 394 - LRB103 35886 RPS 65971 b
14103	14103	HB4873 - 394 - LRB103 35886 RPS 65971 b
14104	14104	1 persons in the performance of his or her job duties. For a
14105	14105	2 member who first becomes an employee under this Article on
14106	14106	3 or after July 1, 2005, the term means an employee of the
14107	14107	4 Department of Corrections or the Department of Juvenile
14108	14108	5 Justice who is any of the following: (i) officially
14109	14109	6 headquartered at a correctional facility or Juvenile
14110	14110	7 facility operated by the Department of Juvenile Justice,
14111	14111	8 (ii) a parole officer, (iii) a member of the apprehension
14112	14112	9 unit, (iv) a member of the intelligence unit, (v) a member
14113	14113	10 of the sort team, or (vi) an investigator.
14114	14114	11 (11) The term "dangerous drugs investigator" means any
14115	14115	12 person who is employed as such by the Department of Human
14116	14116	13 Services.
14117	14117	14 (12) The term "investigator for the Illinois State
14118	14118	15 Police" means a person employed by the Illinois State
14119	14119	16 Police who is vested under Section 4 of the Narcotic
14120	14120	17 Control Division Abolition Act with such law enforcement
14121	14121	18 powers as render him ineligible for coverage under the
14122	14122	19 Social Security Act by reason of Sections 218(d)(5)(A),
14123	14123	20 218(d)(8)(D) and 218(l)(1) of that Act.
14124	14124	21 (13) "Investigator for the Office of the Attorney
14125	14125	22 General" means any person who is employed as such by the
14126	14126	23 Office of the Attorney General and is vested with such
14127	14127	24 investigative duties as render him ineligible for coverage
14128	14128	25 under the Social Security Act by reason of Sections
14129	14129	26 218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that Act. For
14130	14130
14131	14131
14132	14132
14133	14133
14134	14134
14135	14135	HB4873 - 394 - LRB103 35886 RPS 65971 b
14136	14136
14137	14137
14138	14138	HB4873- 395 -LRB103 35886 RPS 65971 b HB4873 - 395 - LRB103 35886 RPS 65971 b
14139	14139	HB4873 - 395 - LRB103 35886 RPS 65971 b
14140	14140	1 the period before January 1, 1989, the term includes all
14141	14141	2 persons who were employed as investigators by the Office
14142	14142	3 of the Attorney General, without regard to social security
14143	14143	4 status.
14144	14144	5 (14) "Controlled substance inspector" means any person
14145	14145	6 who is employed as such by the Department of Professional
14146	14146	7 Regulation and is vested with such law enforcement duties
14147	14147	8 as render him ineligible for coverage under the Social
14148	14148	9 Security Act by reason of Sections 218(d)(5)(A),
14149	14149	10 218(d)(8)(D) and 218(l)(1) of that Act. The term
14150	14150	11 "controlled substance inspector" includes the Program
14151	14151	12 Executive of Enforcement and the Assistant Program
14152	14152	13 Executive of Enforcement.
14153	14153	14 (15) The term "investigator for the Office of the
14154	14154	15 State's Attorneys Appellate Prosecutor" means a person
14155	14155	16 employed in that capacity on a full-time basis under the
14156	14156	17 authority of Section 7.06 of the State's Attorneys
14157	14157	18 Appellate Prosecutor's Act.
14158	14158	19 (16) "Commerce Commission police officer" means any
14159	14159	20 person employed by the Illinois Commerce Commission who is
14160	14160	21 vested with such law enforcement duties as render him
14161	14161	22 ineligible for coverage under the Social Security Act by
14162	14162	23 reason of Sections 218(d)(5)(A), 218(d)(8)(D), and
14163	14163	24 218(l)(1) of that Act.
14164	14164	25 (17) "Arson investigator" means any person who is
14165	14165	26 employed as such by the Office of the State Fire Marshal
14166	14166
14167	14167
14168	14168
14169	14169
14170	14170
14171	14171	HB4873 - 395 - LRB103 35886 RPS 65971 b
14172	14172
14173	14173
14174	14174	HB4873- 396 -LRB103 35886 RPS 65971 b HB4873 - 396 - LRB103 35886 RPS 65971 b
14175	14175	HB4873 - 396 - LRB103 35886 RPS 65971 b
14176	14176	1 and is vested with such law enforcement duties as render
14177	14177	2 the person ineligible for coverage under the Social
14178	14178	3 Security Act by reason of Sections 218(d)(5)(A),
14179	14179	4 218(d)(8)(D), and 218(l)(1) of that Act. A person who was
14180	14180	5 employed as an arson investigator on January 1, 1995 and
14181	14181	6 is no longer in service but not yet receiving a retirement
14182	14182	7 annuity may convert his or her creditable service for
14183	14183	8 employment as an arson investigator into eligible
14184	14184	9 creditable service by paying to the System the difference
14185	14185	10 between the employee contributions actually paid for that
14186	14186	11 service and the amounts that would have been contributed
14187	14187	12 if the applicant were contributing at the rate applicable
14188	14188	13 to persons with the same social security status earning
14189	14189	14 eligible creditable service on the date of application.
14190	14190	15 (18) The term "State highway maintenance worker" means
14191	14191	16 a person who is either of the following:
14192	14192	17 (i) A person employed on a full-time basis by the
14193	14193	18 Illinois Department of Transportation in the position
14194	14194	19 of highway maintainer, highway maintenance lead
14195	14195	20 worker, highway maintenance lead/lead worker, heavy
14196	14196	21 construction equipment operator, power shovel
14197	14197	22 operator, or bridge mechanic; and whose principal
14198	14198	23 responsibility is to perform, on the roadway, the
14199	14199	24 actual maintenance necessary to keep the highways that
14200	14200	25 form a part of the State highway system in serviceable
14201	14201	26 condition for vehicular traffic.
14202	14202
14203	14203
14204	14204
14205	14205
14206	14206
14207	14207	HB4873 - 396 - LRB103 35886 RPS 65971 b
14208	14208
14209	14209
14210	14210	HB4873- 397 -LRB103 35886 RPS 65971 b HB4873 - 397 - LRB103 35886 RPS 65971 b
14211	14211	HB4873 - 397 - LRB103 35886 RPS 65971 b
14212	14212	1 (ii) A person employed on a full-time basis by the
14213	14213	2 Illinois State Toll Highway Authority in the position
14214	14214	3 of equipment operator/laborer H-4, equipment
14215	14215	4 operator/laborer H-6, welder H-4, welder H-6,
14216	14216	5 mechanical/electrical H-4, mechanical/electrical H-6,
14217	14217	6 water/sewer H-4, water/sewer H-6, sign maker/hanger
14218	14218	7 H-4, sign maker/hanger H-6, roadway lighting H-4,
14219	14219	8 roadway lighting H-6, structural H-4, structural H-6,
14220	14220	9 painter H-4, or painter H-6; and whose principal
14221	14221	10 responsibility is to perform, on the roadway, the
14222	14222	11 actual maintenance necessary to keep the Authority's
14223	14223	12 tollways in serviceable condition for vehicular
14224	14224	13 traffic.
14225	14225	14 (19) The term "security employee of the Department of
14226	14226	15 Innovation and Technology" means a person who was a
14227	14227	16 security employee of the Department of Corrections or the
14228	14228	17 Department of Juvenile Justice, was transferred to the
14229	14229	18 Department of Innovation and Technology pursuant to
14230	14230	19 Executive Order 2016-01, and continues to perform similar
14231	14231	20 job functions under that Department.
14232	14232	21 (20) "Transferred employee" means an employee who was
14233	14233	22 transferred to the Department of Central Management
14234	14234	23 Services by Executive Order No. 2003-10 or Executive Order
14235	14235	24 No. 2004-2 or transferred to the Department of Innovation
14236	14236	25 and Technology by Executive Order No. 2016-1, or both, and
14237	14237	26 was entitled to eligible creditable service for services
14238	14238
14239	14239
14240	14240
14241	14241
14242	14242
14243	14243	HB4873 - 397 - LRB103 35886 RPS 65971 b
14244	14244
14245	14245
14246	14246	HB4873- 398 -LRB103 35886 RPS 65971 b HB4873 - 398 - LRB103 35886 RPS 65971 b
14247	14247	HB4873 - 398 - LRB103 35886 RPS 65971 b
14248	14248	1 immediately preceding the transfer.
14249	14249	2 (21) The term "investigator for the Department of the
14250	14250	3 Lottery" means any person employed by the Department of
14251	14251	4 the Lottery and who is vested with such investigative
14252	14252	5 duties which render him or her ineligible for coverage
14253	14253	6 under the Social Security Act by reason of Sections
14254	14254	7 218(d)(5)(A), 218(d)(8)(D), and 218(l)(1) of that Act. An
14255	14255	8 investigator for the Department of the Lottery who
14256	14256	9 qualifies under this Section shall earn eligible
14257	14257	10 creditable service and be required to make contributions
14258	14258	11 at the rate specified in paragraph (3) of subsection (a)
14259	14259	12 of Section 14-133 for all periods of service as an
14260	14260	13 investigator for the Department of the Lottery.
14261	14261	14 (d) A security employee of the Department of Corrections
14262	14262	15 or the Department of Juvenile Justice, a security employee of
14263	14263	16 the Department of Human Services who is not a mental health
14264	14264	17 police officer, and a security employee of the Department of
14265	14265	18 Innovation and Technology shall not be eligible for the
14266	14266	19 alternative retirement annuity provided by this Section unless
14267	14267	20 he or she meets the following minimum age and service
14268	14268	21 requirements at the time of retirement:
14269	14269	22 (i) 25 years of eligible creditable service and age
14270	14270	23 55; or
14271	14271	24 (ii) beginning January 1, 1987, 25 years of eligible
14272	14272	25 creditable service and age 54, or 24 years of eligible
14273	14273	26 creditable service and age 55; or
14274	14274
14275	14275
14276	14276
14277	14277
14278	14278
14279	14279	HB4873 - 398 - LRB103 35886 RPS 65971 b
14280	14280
14281	14281
14282	14282	HB4873- 399 -LRB103 35886 RPS 65971 b HB4873 - 399 - LRB103 35886 RPS 65971 b
14283	14283	HB4873 - 399 - LRB103 35886 RPS 65971 b
14284	14284	1 (iii) beginning January 1, 1988, 25 years of eligible
14285	14285	2 creditable service and age 53, or 23 years of eligible
14286	14286	3 creditable service and age 55; or
14287	14287	4 (iv) beginning January 1, 1989, 25 years of eligible
14288	14288	5 creditable service and age 52, or 22 years of eligible
14289	14289	6 creditable service and age 55; or
14290	14290	7 (v) beginning January 1, 1990, 25 years of eligible
14291	14291	8 creditable service and age 51, or 21 years of eligible
14292	14292	9 creditable service and age 55; or
14293	14293	10 (vi) beginning January 1, 1991, 25 years of eligible
14294	14294	11 creditable service and age 50, or 20 years of eligible
14295	14295	12 creditable service and age 55.
14296	14296	13 Persons who have service credit under Article 16 of this
14297	14297	14 Code for service as a security employee of the Department of
14298	14298	15 Corrections or the Department of Juvenile Justice, or the
14299	14299	16 Department of Human Services in a position requiring
14300	14300	17 certification as a teacher may count such service toward
14301	14301	18 establishing their eligibility under the service requirements
14302	14302	19 of this Section; but such service may be used only for
14303	14303	20 establishing such eligibility, and not for the purpose of
14304	14304	21 increasing or calculating any benefit.
14305	14305	22 (e) If a member enters military service while working in a
14306	14306	23 position in which eligible creditable service may be earned,
14307	14307	24 and returns to State service in the same or another such
14308	14308	25 position, and fulfills in all other respects the conditions
14309	14309	26 prescribed in this Article for credit for military service,
14310	14310
14311	14311
14312	14312
14313	14313
14314	14314
14315	14315	HB4873 - 399 - LRB103 35886 RPS 65971 b
14316	14316
14317	14317
14318	14318	HB4873- 400 -LRB103 35886 RPS 65971 b HB4873 - 400 - LRB103 35886 RPS 65971 b
14319	14319	HB4873 - 400 - LRB103 35886 RPS 65971 b
14320	14320	1 such military service shall be credited as eligible creditable
14321	14321	2 service for the purposes of the retirement annuity prescribed
14322	14322	3 in this Section.
14323	14323	4 (f) For purposes of calculating retirement annuities under
14324	14324	5 this Section, periods of service rendered after December 31,
14325	14325	6 1968 and before October 1, 1975 as a covered employee in the
14326	14326	7 position of special agent, conservation police officer, mental
14327	14327	8 health police officer, or investigator for the Secretary of
14328	14328	9 State, shall be deemed to have been service as a noncovered
14329	14329	10 employee, provided that the employee pays to the System prior
14330	14330	11 to retirement an amount equal to (1) the difference between
14331	14331	12 the employee contributions that would have been required for
14332	14332	13 such service as a noncovered employee, and the amount of
14333	14333	14 employee contributions actually paid, plus (2) if payment is
14334	14334	15 made after July 31, 1987, regular interest on the amount
14335	14335	16 specified in item (1) from the date of service to the date of
14336	14336	17 payment.
14337	14337	18 For purposes of calculating retirement annuities under
14338	14338	19 this Section, periods of service rendered after December 31,
14339	14339	20 1968 and before January 1, 1982 as a covered employee in the
14340	14340	21 position of investigator for the Department of Revenue shall
14341	14341	22 be deemed to have been service as a noncovered employee,
14342	14342	23 provided that the employee pays to the System prior to
14343	14343	24 retirement an amount equal to (1) the difference between the
14344	14344	25 employee contributions that would have been required for such
14345	14345	26 service as a noncovered employee, and the amount of employee
14346	14346
14347	14347
14348	14348
14349	14349
14350	14350
14351	14351	HB4873 - 400 - LRB103 35886 RPS 65971 b
14352	14352
14353	14353
14354	14354	HB4873- 401 -LRB103 35886 RPS 65971 b HB4873 - 401 - LRB103 35886 RPS 65971 b
14355	14355	HB4873 - 401 - LRB103 35886 RPS 65971 b
14356	14356	1 contributions actually paid, plus (2) if payment is made after
14357	14357	2 January 1, 1990, regular interest on the amount specified in
14358	14358	3 item (1) from the date of service to the date of payment.
14359	14359	4 (g) A State policeman may elect, not later than January 1,
14360	14360	5 1990, to establish eligible creditable service for up to 10
14361	14361	6 years of his service as a policeman under Article 3, by filing
14362	14362	7 a written election with the Board, accompanied by payment of
14363	14363	8 an amount to be determined by the Board, equal to (i) the
14364	14364	9 difference between the amount of employee and employer
14365	14365	10 contributions transferred to the System under Section 3-110.5,
14366	14366	11 and the amounts that would have been contributed had such
14367	14367	12 contributions been made at the rates applicable to State
14368	14368	13 policemen, plus (ii) interest thereon at the effective rate
14369	14369	14 for each year, compounded annually, from the date of service
14370	14370	15 to the date of payment.
14371	14371	16 Subject to the limitation in subsection (i), a State
14372	14372	17 policeman may elect, not later than July 1, 1993, to establish
14373	14373	18 eligible creditable service for up to 10 years of his service
14374	14374	19 as a member of the County Police Department under Article 9, by
14375	14375	20 filing a written election with the Board, accompanied by
14376	14376	21 payment of an amount to be determined by the Board, equal to
14377	14377	22 (i) the difference between the amount of employee and employer
14378	14378	23 contributions transferred to the System under Section 9-121.10
14379	14379	24 and the amounts that would have been contributed had those
14380	14380	25 contributions been made at the rates applicable to State
14381	14381	26 policemen, plus (ii) interest thereon at the effective rate
14382	14382
14383	14383
14384	14384
14385	14385
14386	14386
14387	14387	HB4873 - 401 - LRB103 35886 RPS 65971 b
14388	14388
14389	14389
14390	14390	HB4873- 402 -LRB103 35886 RPS 65971 b HB4873 - 402 - LRB103 35886 RPS 65971 b
14391	14391	HB4873 - 402 - LRB103 35886 RPS 65971 b
14392	14392	1 for each year, compounded annually, from the date of service
14393	14393	2 to the date of payment.
14394	14394	3 (h) Subject to the limitation in subsection (i), a State
14395	14395	4 policeman or investigator for the Secretary of State may elect
14396	14396	5 to establish eligible creditable service for up to 12 years of
14397	14397	6 his service as a policeman under Article 5, by filing a written
14398	14398	7 election with the Board on or before January 31, 1992, and
14399	14399	8 paying to the System by January 31, 1994 an amount to be
14400	14400	9 determined by the Board, equal to (i) the difference between
14401	14401	10 the amount of employee and employer contributions transferred
14402	14402	11 to the System under Section 5-236, and the amounts that would
14403	14403	12 have been contributed had such contributions been made at the
14404	14404	13 rates applicable to State policemen, plus (ii) interest
14405	14405	14 thereon at the effective rate for each year, compounded
14406	14406	15 annually, from the date of service to the date of payment.
14407	14407	16 Subject to the limitation in subsection (i), a State
14408	14408	17 policeman, conservation police officer, or investigator for
14409	14409	18 the Secretary of State may elect to establish eligible
14410	14410	19 creditable service for up to 10 years of service as a sheriff's
14411	14411	20 law enforcement employee under Article 7, by filing a written
14412	14412	21 election with the Board on or before January 31, 1993, and
14413	14413	22 paying to the System by January 31, 1994 an amount to be
14414	14414	23 determined by the Board, equal to (i) the difference between
14415	14415	24 the amount of employee and employer contributions transferred
14416	14416	25 to the System under Section 7-139.7, and the amounts that
14417	14417	26 would have been contributed had such contributions been made
14418	14418
14419	14419
14420	14420
14421	14421
14422	14422
14423	14423	HB4873 - 402 - LRB103 35886 RPS 65971 b
14424	14424
14425	14425
14426	14426	HB4873- 403 -LRB103 35886 RPS 65971 b HB4873 - 403 - LRB103 35886 RPS 65971 b
14427	14427	HB4873 - 403 - LRB103 35886 RPS 65971 b
14428	14428	1 at the rates applicable to State policemen, plus (ii) interest
14429	14429	2 thereon at the effective rate for each year, compounded
14430	14430	3 annually, from the date of service to the date of payment.
14431	14431	4 Subject to the limitation in subsection (i), a State
14432	14432	5 policeman, conservation police officer, or investigator for
14433	14433	6 the Secretary of State may elect to establish eligible
14434	14434	7 creditable service for up to 5 years of service as a police
14435	14435	8 officer under Article 3, a policeman under Article 5, a
14436	14436	9 sheriff's law enforcement employee under Article 7, a member
14437	14437	10 of the county police department under Article 9, or a police
14438	14438	11 officer under Article 15 by filing a written election with the
14439	14439	12 Board and paying to the System an amount to be determined by
14440	14440	13 the Board, equal to (i) the difference between the amount of
14441	14441	14 employee and employer contributions transferred to the System
14442	14442	15 under Section 3-110.6, 5-236, 7-139.8, 9-121.10, or 15-134.4
14443	14443	16 and the amounts that would have been contributed had such
14444	14444	17 contributions been made at the rates applicable to State
14445	14445	18 policemen, plus (ii) interest thereon at the effective rate
14446	14446	19 for each year, compounded annually, from the date of service
14447	14447	20 to the date of payment.
14448	14448	21 Subject to the limitation in subsection (i), an
14449	14449	22 investigator for the Office of the Attorney General, or an
14450	14450	23 investigator for the Department of Revenue, may elect to
14451	14451	24 establish eligible creditable service for up to 5 years of
14452	14452	25 service as a police officer under Article 3, a policeman under
14453	14453	26 Article 5, a sheriff's law enforcement employee under Article
14454	14454
14455	14455
14456	14456
14457	14457
14458	14458
14459	14459	HB4873 - 403 - LRB103 35886 RPS 65971 b
14460	14460
14461	14461
14462	14462	HB4873- 404 -LRB103 35886 RPS 65971 b HB4873 - 404 - LRB103 35886 RPS 65971 b
14463	14463	HB4873 - 404 - LRB103 35886 RPS 65971 b
14464	14464	1 7, or a member of the county police department under Article 9
14465	14465	2 by filing a written election with the Board within 6 months
14466	14466	3 after August 25, 2009 (the effective date of Public Act
14467	14467	4 96-745) and paying to the System an amount to be determined by
14468	14468	5 the Board, equal to (i) the difference between the amount of
14469	14469	6 employee and employer contributions transferred to the System
14470	14470	7 under Section 3-110.6, 5-236, 7-139.8, or 9-121.10 and the
14471	14471	8 amounts that would have been contributed had such
14472	14472	9 contributions been made at the rates applicable to State
14473	14473	10 policemen, plus (ii) interest thereon at the actuarially
14474	14474	11 assumed rate for each year, compounded annually, from the date
14475	14475	12 of service to the date of payment.
14476	14476	13 Subject to the limitation in subsection (i), a State
14477	14477	14 policeman, conservation police officer, investigator for the
14478	14478	15 Office of the Attorney General, an investigator for the
14479	14479	16 Department of Revenue, or investigator for the Secretary of
14480	14480	17 State may elect to establish eligible creditable service for
14481	14481	18 up to 5 years of service as a person employed by a
14482	14482	19 participating municipality to perform police duties, or law
14483	14483	20 enforcement officer employed on a full-time basis by a forest
14484	14484	21 preserve district under Article 7, a county corrections
14485	14485	22 officer, or a court services officer under Article 9, by
14486	14486	23 filing a written election with the Board within 6 months after
14487	14487	24 August 25, 2009 (the effective date of Public Act 96-745) and
14488	14488	25 paying to the System an amount to be determined by the Board,
14489	14489	26 equal to (i) the difference between the amount of employee and
14490	14490
14491	14491
14492	14492
14493	14493
14494	14494
14495	14495	HB4873 - 404 - LRB103 35886 RPS 65971 b
14496	14496
14497	14497
14498	14498	HB4873- 405 -LRB103 35886 RPS 65971 b HB4873 - 405 - LRB103 35886 RPS 65971 b
14499	14499	HB4873 - 405 - LRB103 35886 RPS 65971 b
14500	14500	1 employer contributions transferred to the System under
14501	14501	2 Sections 7-139.8 and 9-121.10 and the amounts that would have
14502	14502	3 been contributed had such contributions been made at the rates
14503	14503	4 applicable to State policemen, plus (ii) interest thereon at
14504	14504	5 the actuarially assumed rate for each year, compounded
14505	14505	6 annually, from the date of service to the date of payment.
14506	14506	7 Subject to the limitation in subsection (i), a State
14507	14507	8 policeman, arson investigator, or Commerce Commission police
14508	14508	9 officer may elect to establish eligible creditable service for
14509	14509	10 up to 5 years of service as a person employed by a
14510	14510	11 participating municipality to perform police duties under
14511	14511	12 Article 7, a county corrections officer, a court services
14512	14512	13 officer under Article 9, or a firefighter under Article 4 by
14513	14513	14 filing a written election with the Board within 6 months after
14514	14514	15 July 30, 2021 (the effective date of Public Act 102-210) and
14515	14515	16 paying to the System an amount to be determined by the Board
14516	14516	17 equal to (i) the difference between the amount of employee and
14517	14517	18 employer contributions transferred to the System under
14518	14518	19 Sections 4-108.8, 7-139.8, and 9-121.10 and the amounts that
14519	14519	20 would have been contributed had such contributions been made
14520	14520	21 at the rates applicable to State policemen, plus (ii) interest
14521	14521	22 thereon at the actuarially assumed rate for each year,
14522	14522	23 compounded annually, from the date of service to the date of
14523	14523	24 payment.
14524	14524	25 Subject to the limitation in subsection (i), a
14525	14525	26 conservation police officer may elect to establish eligible
14526	14526
14527	14527
14528	14528
14529	14529
14530	14530
14531	14531	HB4873 - 405 - LRB103 35886 RPS 65971 b
14532	14532
14533	14533
14534	14534	HB4873- 406 -LRB103 35886 RPS 65971 b HB4873 - 406 - LRB103 35886 RPS 65971 b
14535	14535	HB4873 - 406 - LRB103 35886 RPS 65971 b
14536	14536	1 creditable service for up to 5 years of service as a person
14537	14537	2 employed by a participating municipality to perform police
14538	14538	3 duties under Article 7, a county corrections officer, or a
14539	14539	4 court services officer under Article 9 by filing a written
14540	14540	5 election with the Board within 6 months after July 30, 2021
14541	14541	6 (the effective date of Public Act 102-210) and paying to the
14542	14542	7 System an amount to be determined by the Board equal to (i) the
14543	14543	8 difference between the amount of employee and employer
14544	14544	9 contributions transferred to the System under Sections 7-139.8
14545	14545	10 and 9-121.10 and the amounts that would have been contributed
14546	14546	11 had such contributions been made at the rates applicable to
14547	14547	12 State policemen, plus (ii) interest thereon at the actuarially
14548	14548	13 assumed rate for each year, compounded annually, from the date
14549	14549	14 of service to the date of payment.
14550	14550	15 Subject to the limitation in subsection (i), an
14551	14551	16 investigator for the Department of Revenue, investigator for
14552	14552	17 the Illinois Gaming Board, investigator for the Secretary of
14553	14553	18 State, or arson investigator may elect to establish eligible
14554	14554	19 creditable service for up to 5 years of service as a person
14555	14555	20 employed by a participating municipality to perform police
14556	14556	21 duties under Article 7, a county corrections officer, a court
14557	14557	22 services officer under Article 9, or a firefighter under
14558	14558	23 Article 4 by filing a written election with the Board within 6
14559	14559	24 months after the effective date of this amendatory Act of the
14560	14560	25 102nd General Assembly and paying to the System an amount to be
14561	14561	26 determined by the Board equal to (i) the difference between
14562	14562
14563	14563
14564	14564
14565	14565
14566	14566
14567	14567	HB4873 - 406 - LRB103 35886 RPS 65971 b
14568	14568
14569	14569
14570	14570	HB4873- 407 -LRB103 35886 RPS 65971 b HB4873 - 407 - LRB103 35886 RPS 65971 b
14571	14571	HB4873 - 407 - LRB103 35886 RPS 65971 b
14572	14572	1 the amount of employee and employer contributions transferred
14573	14573	2 to the System under Sections 4-108.8, 7-139.8, and 9-121.10
14574	14574	3 and the amounts that would have been contributed had such
14575	14575	4 contributions been made at the rates applicable to State
14576	14576	5 policemen, plus (ii) interest thereon at the actuarially
14577	14577	6 assumed rate for each year, compounded annually, from the date
14578	14578	7 of service to the date of payment.
14579	14579	8 Notwithstanding the limitation in subsection (i), a State
14580	14580	9 policeman or conservation police officer may elect to convert
14581	14581	10 service credit earned under this Article to eligible
14582	14582	11 creditable service, as defined by this Section, by filing a
14583	14583	12 written election with the board within 6 months after July 30,
14584	14584	13 2021 (the effective date of Public Act 102-210) and paying to
14585	14585	14 the System an amount to be determined by the Board equal to (i)
14586	14586	15 the difference between the amount of employee contributions
14587	14587	16 originally paid for that service and the amounts that would
14588	14588	17 have been contributed had such contributions been made at the
14589	14589	18 rates applicable to State policemen, plus (ii) the difference
14590	14590	19 between the employer's normal cost of the credit prior to the
14591	14591	20 conversion authorized by Public Act 102-210 and the employer's
14592	14592	21 normal cost of the credit converted in accordance with Public
14593	14593	22 Act 102-210, plus (iii) interest thereon at the actuarially
14594	14594	23 assumed rate for each year, compounded annually, from the date
14595	14595	24 of service to the date of payment.
14596	14596	25 Notwithstanding the limitation in subsection (i), an
14597	14597	26 investigator for the Department of Revenue, investigator for
14598	14598
14599	14599
14600	14600
14601	14601
14602	14602
14603	14603	HB4873 - 407 - LRB103 35886 RPS 65971 b
14604	14604
14605	14605
14606	14606	HB4873- 408 -LRB103 35886 RPS 65971 b HB4873 - 408 - LRB103 35886 RPS 65971 b
14607	14607	HB4873 - 408 - LRB103 35886 RPS 65971 b
14608	14608	1 the Illinois Gaming Board, investigator for the Secretary of
14609	14609	2 State, or arson investigator may elect to convert service
14610	14610	3 credit earned under this Article to eligible creditable
14611	14611	4 service, as defined by this Section, by filing a written
14612	14612	5 election with the Board within 6 months after the effective
14613	14613	6 date of this amendatory Act of the 102nd General Assembly and
14614	14614	7 paying to the System an amount to be determined by the Board
14615	14615	8 equal to (i) the difference between the amount of employee
14616	14616	9 contributions originally paid for that service and the amounts
14617	14617	10 that would have been contributed had such contributions been
14618	14618	11 made at the rates applicable to investigators for the
14619	14619	12 Department of Revenue, investigators for the Illinois Gaming
14620	14620	13 Board, investigators for the Secretary of State, or arson
14621	14621	14 investigators, plus (ii) the difference between the employer's
14622	14622	15 normal cost of the credit prior to the conversion authorized
14623	14623	16 by this amendatory Act of the 102nd General Assembly and the
14624	14624	17 employer's normal cost of the credit converted in accordance
14625	14625	18 with this amendatory Act of the 102nd General Assembly, plus
14626	14626	19 (iii) interest thereon at the actuarially assumed rate for
14627	14627	20 each year, compounded annually, from the date of service to
14628	14628	21 the date of payment.
14629	14629	22 Subject to the limitation in subsection (i), a security
14630	14630	23 employee of the Department of Human Services who is subject to
14631	14631	24 subsection (g-1) of Section 1-160 may elect to convert up to 12
14632	14632	25 years of service credit established before the effective date
14633	14633	26 of this amendatory Act of the 103rd General Assembly as a
14634	14634
14635	14635
14636	14636
14637	14637
14638	14638
14639	14639	HB4873 - 408 - LRB103 35886 RPS 65971 b
14640	14640
14641	14641
14642	14642	HB4873- 409 -LRB103 35886 RPS 65971 b HB4873 - 409 - LRB103 35886 RPS 65971 b
14643	14643	HB4873 - 409 - LRB103 35886 RPS 65971 b
14644	14644	1 security employee of the Department of Human Services to
14645	14645	2 eligible creditable service by filing a written election with
14646	14646	3 the Board no later than 2 years after the effective date of
14647	14647	4 this amendatory Act of the 103rd General Assembly, accompanied
14648	14648	5 by payment of an amount, to be determined by the Board, equal
14649	14649	6 to (i) the difference between the amount of the employee
14650	14650	7 contributions actually paid for that service and the amount of
14651	14651	8 the employee contributions that would have been paid had the
14652	14652	9 employee contributions been made as a covered employee serving
14653	14653	10 in a position in which eligible creditable service, as defined
14654	14654	11 in this Section, may be earned, plus (ii) interest thereon at
14655	14655	12 the effective rate for each year, compounded annually, from
14656	14656	13 the date of service to the date of payment.
14657	14657	14 (i) The total amount of eligible creditable service
14658	14658	15 established by any person under subsections (g), (h), (j),
14659	14659	16 (k), (l), (l-5), and (o) of this Section shall not exceed 12
14660	14660	17 years.
14661	14661	18 (j) Subject to the limitation in subsection (i), an
14662	14662	19 investigator for the Office of the State's Attorneys Appellate
14663	14663	20 Prosecutor or a controlled substance inspector may elect to
14664	14664	21 establish eligible creditable service for up to 10 years of
14665	14665	22 his service as a policeman under Article 3 or a sheriff's law
14666	14666	23 enforcement employee under Article 7, by filing a written
14667	14667	24 election with the Board, accompanied by payment of an amount
14668	14668	25 to be determined by the Board, equal to (1) the difference
14669	14669	26 between the amount of employee and employer contributions
14670	14670
14671	14671
14672	14672
14673	14673
14674	14674
14675	14675	HB4873 - 409 - LRB103 35886 RPS 65971 b
14676	14676
14677	14677
14678	14678	HB4873- 410 -LRB103 35886 RPS 65971 b HB4873 - 410 - LRB103 35886 RPS 65971 b
14679	14679	HB4873 - 410 - LRB103 35886 RPS 65971 b
14680	14680	1 transferred to the System under Section 3-110.6 or 7-139.8,
14681	14681	2 and the amounts that would have been contributed had such
14682	14682	3 contributions been made at the rates applicable to State
14683	14683	4 policemen, plus (2) interest thereon at the effective rate for
14684	14684	5 each year, compounded annually, from the date of service to
14685	14685	6 the date of payment.
14686	14686	7 (k) Subject to the limitation in subsection (i) of this
14687	14687	8 Section, an alternative formula employee may elect to
14688	14688	9 establish eligible creditable service for periods spent as a
14689	14689	10 full-time law enforcement officer or full-time corrections
14690	14690	11 officer employed by the federal government or by a state or
14691	14691	12 local government located outside of Illinois, for which credit
14692	14692	13 is not held in any other public employee pension fund or
14693	14693	14 retirement system. To obtain this credit, the applicant must
14694	14694	15 file a written application with the Board by March 31, 1998,
14695	14695	16 accompanied by evidence of eligibility acceptable to the Board
14696	14696	17 and payment of an amount to be determined by the Board, equal
14697	14697	18 to (1) employee contributions for the credit being
14698	14698	19 established, based upon the applicant's salary on the first
14699	14699	20 day as an alternative formula employee after the employment
14700	14700	21 for which credit is being established and the rates then
14701	14701	22 applicable to alternative formula employees, plus (2) an
14702	14702	23 amount determined by the Board to be the employer's normal
14703	14703	24 cost of the benefits accrued for the credit being established,
14704	14704	25 plus (3) regular interest on the amounts in items (1) and (2)
14705	14705	26 from the first day as an alternative formula employee after
14706	14706
14707	14707
14708	14708
14709	14709
14710	14710
14711	14711	HB4873 - 410 - LRB103 35886 RPS 65971 b
14712	14712
14713	14713
14714	14714	HB4873- 411 -LRB103 35886 RPS 65971 b HB4873 - 411 - LRB103 35886 RPS 65971 b
14715	14715	HB4873 - 411 - LRB103 35886 RPS 65971 b
14716	14716	1 the employment for which credit is being established to the
14717	14717	2 date of payment.
14718	14718	3 (l) Subject to the limitation in subsection (i), a
14719	14719	4 security employee of the Department of Corrections may elect,
14720	14720	5 not later than July 1, 1998, to establish eligible creditable
14721	14721	6 service for up to 10 years of his or her service as a policeman
14722	14722	7 under Article 3, by filing a written election with the Board,
14723	14723	8 accompanied by payment of an amount to be determined by the
14724	14724	9 Board, equal to (i) the difference between the amount of
14725	14725	10 employee and employer contributions transferred to the System
14726	14726	11 under Section 3-110.5, and the amounts that would have been
14727	14727	12 contributed had such contributions been made at the rates
14728	14728	13 applicable to security employees of the Department of
14729	14729	14 Corrections, plus (ii) interest thereon at the effective rate
14730	14730	15 for each year, compounded annually, from the date of service
14731	14731	16 to the date of payment.
14732	14732	17 (l-5) Subject to the limitation in subsection (i) of this
14733	14733	18 Section, a State policeman may elect to establish eligible
14734	14734	19 creditable service for up to 5 years of service as a full-time
14735	14735	20 law enforcement officer employed by the federal government or
14736	14736	21 by a state or local government located outside of Illinois for
14737	14737	22 which credit is not held in any other public employee pension
14738	14738	23 fund or retirement system. To obtain this credit, the
14739	14739	24 applicant must file a written application with the Board no
14740	14740	25 later than 3 years after January 1, 2020 (the effective date of
14741	14741	26 Public Act 101-610), accompanied by evidence of eligibility
14742	14742
14743	14743
14744	14744
14745	14745
14746	14746
14747	14747	HB4873 - 411 - LRB103 35886 RPS 65971 b
14748	14748
14749	14749
14750	14750	HB4873- 412 -LRB103 35886 RPS 65971 b HB4873 - 412 - LRB103 35886 RPS 65971 b
14751	14751	HB4873 - 412 - LRB103 35886 RPS 65971 b
14752	14752	1 acceptable to the Board and payment of an amount to be
14753	14753	2 determined by the Board, equal to (1) employee contributions
14754	14754	3 for the credit being established, based upon the applicant's
14755	14755	4 salary on the first day as an alternative formula employee
14756	14756	5 after the employment for which credit is being established and
14757	14757	6 the rates then applicable to alternative formula employees,
14758	14758	7 plus (2) an amount determined by the Board to be the employer's
14759	14759	8 normal cost of the benefits accrued for the credit being
14760	14760	9 established, plus (3) regular interest on the amounts in items
14761	14761	10 (1) and (2) from the first day as an alternative formula
14762	14762	11 employee after the employment for which credit is being
14763	14763	12 established to the date of payment.
14764	14764	13 (m) The amendatory changes to this Section made by Public
14765	14765	14 Act 94-696 apply only to: (1) security employees of the
14766	14766	15 Department of Juvenile Justice employed by the Department of
14767	14767	16 Corrections before June 1, 2006 (the effective date of Public
14768	14768	17 Act 94-696) and transferred to the Department of Juvenile
14769	14769	18 Justice by Public Act 94-696; and (2) persons employed by the
14770	14770	19 Department of Juvenile Justice on or after June 1, 2006 (the
14771	14771	20 effective date of Public Act 94-696) who are required by
14772	14772	21 subsection (b) of Section 3-2.5-15 of the Unified Code of
14773	14773	22 Corrections to have any bachelor's or advanced degree from an
14774	14774	23 accredited college or university or, in the case of persons
14775	14775	24 who provide vocational training, who are required to have
14776	14776	25 adequate knowledge in the skill for which they are providing
14777	14777	26 the vocational training.
14778	14778
14779	14779
14780	14780
14781	14781
14782	14782
14783	14783	HB4873 - 412 - LRB103 35886 RPS 65971 b
14784	14784
14785	14785
14786	14786	HB4873- 413 -LRB103 35886 RPS 65971 b HB4873 - 413 - LRB103 35886 RPS 65971 b
14787	14787	HB4873 - 413 - LRB103 35886 RPS 65971 b
14788	14788	1 Beginning with the pay period that immediately follows the
14789	14789	2 effective date of this amendatory Act of the 103rd General
14790	14790	3 Assembly, the bachelor's or advanced degree requirement of
14791	14791	4 subsection (b) of Section 3-2.5-15 of the Unified Code of
14792	14792	5 Corrections shall no longer determine the eligibility to earn
14793	14793	6 eligible creditable service for a person employed by the
14794	14794	7 Department of Juvenile Justice.
14795	14795	8 An employee may elect to convert into eligible creditable
14796	14796	9 service his or her creditable service earned with the
14797	14797	10 Department of Juvenile Justice while employed in a position
14798	14798	11 that required the employee to do any one or more of the
14799	14799	12 following: (1) participate or assist in the rehabilitative and
14800	14800	13 vocational training of delinquent youths; (2) supervise the
14801	14801	14 daily activities and assume direct and continuing
14802	14802	15 responsibility for the youth's security, welfare, and
14803	14803	16 development; or (3) participate in the personal rehabilitation
14804	14804	17 of delinquent youth by training, supervising, and assisting
14805	14805	18 lower-level personnel. To convert that creditable service to
14806	14806	19 eligible creditable service, the employee must pay to the
14807	14807	20 System the difference between the employee contributions
14808	14808	21 actually paid for that service and the amounts that would have
14809	14809	22 been contributed if the applicant were contributing at the
14810	14810	23 rate applicable to persons with the same Social Security
14811	14811	24 status earning eligible creditable service on the date of
14812	14812	25 application.
14813	14813	26 (n) A person employed in a position under subsection (b)
14814	14814
14815	14815
14816	14816
14817	14817
14818	14818
14819	14819	HB4873 - 413 - LRB103 35886 RPS 65971 b
14820	14820
14821	14821
14822	14822	HB4873- 414 -LRB103 35886 RPS 65971 b HB4873 - 414 - LRB103 35886 RPS 65971 b
14823	14823	HB4873 - 414 - LRB103 35886 RPS 65971 b
14824	14824	1 of this Section who has purchased service credit under
14825	14825	2 subsection (j) of Section 14-104 or subsection (b) of Section
14826	14826	3 14-105 in any other capacity under this Article may convert up
14827	14827	4 to 5 years of that service credit into service credit covered
14828	14828	5 under this Section by paying to the Fund an amount equal to (1)
14829	14829	6 the additional employee contribution required under Section
14830	14830	7 14-133, plus (2) the additional employer contribution required
14831	14831	8 under Section 14-131, plus (3) interest on items (1) and (2) at
14832	14832	9 the actuarially assumed rate from the date of the service to
14833	14833	10 the date of payment.
14834	14834	11 (o) Subject to the limitation in subsection (i), a
14835	14835	12 conservation police officer, investigator for the Secretary of
14836	14836	13 State, Commerce Commission police officer, investigator for
14837	14837	14 the Department of Revenue or the Illinois Gaming Board, or
14838	14838	15 arson investigator subject to subsection (g) of Section 1-160
14839	14839	16 may elect to convert up to 8 years of service credit
14840	14840	17 established before January 1, 2020 (the effective date of
14841	14841	18 Public Act 101-610) as a conservation police officer,
14842	14842	19 investigator for the Secretary of State, Commerce Commission
14843	14843	20 police officer, investigator for the Department of Revenue or
14844	14844	21 the Illinois Gaming Board, or arson investigator under this
14845	14845	22 Article into eligible creditable service by filing a written
14846	14846	23 election with the Board no later than one year after January 1,
14847	14847	24 2020 (the effective date of Public Act 101-610), accompanied
14848	14848	25 by payment of an amount to be determined by the Board equal to
14849	14849	26 (i) the difference between the amount of the employee
14850	14850
14851	14851
14852	14852
14853	14853
14854	14854
14855	14855	HB4873 - 414 - LRB103 35886 RPS 65971 b
14856	14856
14857	14857
14858	14858	HB4873- 415 -LRB103 35886 RPS 65971 b HB4873 - 415 - LRB103 35886 RPS 65971 b
14859	14859	HB4873 - 415 - LRB103 35886 RPS 65971 b
14860	14860	1 contributions actually paid for that service and the amount of
14861	14861	2 the employee contributions that would have been paid had the
14862	14862	3 employee contributions been made as a noncovered employee
14863	14863	4 serving in a position in which eligible creditable service, as
14864	14864	5 defined in this Section, may be earned, plus (ii) interest
14865	14865	6 thereon at the effective rate for each year, compounded
14866	14866	7 annually, from the date of service to the date of payment.
14867	14867	8 (Source: P.A. 102-210, eff. 7-30-21; 102-538, eff. 8-20-21;
14868	14868	9 102-856, eff. 1-1-23; 103-34, eff. 1-1-24.)
14869	14869	10 (Text of Section from P.A. 102-956 and 103-34)
14870	14870	11 Sec. 14-110. Alternative retirement annuity.
14871	14871	12 (a) Any member who has withdrawn from service with not
14872	14872	13 less than 20 years of eligible creditable service and has
14873	14873	14 attained age 55, and any member who has withdrawn from service
14874	14874	15 with not less than 25 years of eligible creditable service and
14875	14875	16 has attained age 50, regardless of whether the attainment of
14876	14876	17 either of the specified ages occurs while the member is still
14877	14877	18 in service, shall be entitled to receive at the option of the
14878	14878	19 member, in lieu of the regular or minimum retirement annuity,
14879	14879	20 a retirement annuity computed as follows:
14880	14880	21 (i) for periods of service as a noncovered employee:
14881	14881	22 if retirement occurs on or after January 1, 2001, 3% of
14882	14882	23 final average compensation for each year of creditable
14883	14883	24 service; if retirement occurs before January 1, 2001, 2
14884	14884	25 1/4% of final average compensation for each of the first
14885	14885
14886	14886
14887	14887
14888	14888
14889	14889
14890	14890	HB4873 - 415 - LRB103 35886 RPS 65971 b
14891	14891
14892	14892
14893	14893	HB4873- 416 -LRB103 35886 RPS 65971 b HB4873 - 416 - LRB103 35886 RPS 65971 b
14894	14894	HB4873 - 416 - LRB103 35886 RPS 65971 b
14895	14895	1 10 years of creditable service, 2 1/2% for each year above
14896	14896	2 10 years to and including 20 years of creditable service,
14897	14897	3 and 2 3/4% for each year of creditable service above 20
14898	14898	4 years; and
14899	14899	5 (ii) for periods of eligible creditable service as a
14900	14900	6 covered employee: if retirement occurs on or after January
14901	14901	7 1, 2001, 2.5% of final average compensation for each year
14902	14902	8 of creditable service; if retirement occurs before January
14903	14903	9 1, 2001, 1.67% of final average compensation for each of
14904	14904	10 the first 10 years of such service, 1.90% for each of the
14905	14905	11 next 10 years of such service, 2.10% for each year of such
14906	14906	12 service in excess of 20 but not exceeding 30, and 2.30% for
14907	14907	13 each year in excess of 30.
14908	14908	14 Such annuity shall be subject to a maximum of 75% of final
14909	14909	15 average compensation if retirement occurs before January 1,
14910	14910	16 2001 or to a maximum of 80% of final average compensation if
14911	14911	17 retirement occurs on or after January 1, 2001.
14912	14912	18 These rates shall not be applicable to any service
14913	14913	19 performed by a member as a covered employee which is not
14914	14914	20 eligible creditable service. Service as a covered employee
14915	14915	21 which is not eligible creditable service shall be subject to
14916	14916	22 the rates and provisions of Section 14-108.
14917	14917	23 (b) For the purpose of this Section, "eligible creditable
14918	14918	24 service" means creditable service resulting from service in
14919	14919	25 one or more of the following positions:
14920	14920	26 (1) State policeman;
14921	14921
14922	14922
14923	14923
14924	14924
14925	14925
14926	14926	HB4873 - 416 - LRB103 35886 RPS 65971 b
14927	14927
14928	14928
14929	14929	HB4873- 417 -LRB103 35886 RPS 65971 b HB4873 - 417 - LRB103 35886 RPS 65971 b
14930	14930	HB4873 - 417 - LRB103 35886 RPS 65971 b
14931	14931	1 (2) fire fighter in the fire protection service of a
14932	14932	2 department;
14933	14933	3 (3) air pilot;
14934	14934	4 (4) special agent;
14935	14935	5 (5) investigator for the Secretary of State;
14936	14936	6 (6) conservation police officer;
14937	14937	7 (7) investigator for the Department of Revenue or the
14938	14938	8 Illinois Gaming Board;
14939	14939	9 (8) security employee of the Department of Human
14940	14940	10 Services;
14941	14941	11 (9) Central Management Services security police
14942	14942	12 officer;
14943	14943	13 (10) security employee of the Department of
14944	14944	14 Corrections or the Department of Juvenile Justice;
14945	14945	15 (11) dangerous drugs investigator;
14946	14946	16 (12) investigator for the Illinois State Police;
14947	14947	17 (13) investigator for the Office of the Attorney
14948	14948	18 General;
14949	14949	19 (14) controlled substance inspector;
14950	14950	20 (15) investigator for the Office of the State's
14951	14951	21 Attorneys Appellate Prosecutor;
14952	14952	22 (16) Commerce Commission police officer;
14953	14953	23 (17) arson investigator;
14954	14954	24 (18) State highway maintenance worker;
14955	14955	25 (19) security employee of the Department of Innovation
14956	14956	26 and Technology; or
14957	14957
14958	14958
14959	14959
14960	14960
14961	14961
14962	14962	HB4873 - 417 - LRB103 35886 RPS 65971 b
14963	14963
14964	14964
14965	14965	HB4873- 418 -LRB103 35886 RPS 65971 b HB4873 - 418 - LRB103 35886 RPS 65971 b
14966	14966	HB4873 - 418 - LRB103 35886 RPS 65971 b
14967	14967	1 (20) transferred employee; or .
14968	14968	2 (21) investigator for the Department of the Lottery.
14969	14969	3 A person employed in one of the positions specified in
14970	14970	4 this subsection is entitled to eligible creditable service for
14971	14971	5 service credit earned under this Article while undergoing the
14972	14972	6 basic police training course approved by the Illinois Law
14973	14973	7 Enforcement Training Standards Board, if completion of that
14974	14974	8 training is required of persons serving in that position. For
14975	14975	9 the purposes of this Code, service during the required basic
14976	14976	10 police training course shall be deemed performance of the
14977	14977	11 duties of the specified position, even though the person is
14978	14978	12 not a sworn peace officer at the time of the training.
14979	14979	13 A person under paragraph (20) is entitled to eligible
14980	14980	14 creditable service for service credit earned under this
14981	14981	15 Article on and after his or her transfer by Executive Order No.
14982	14982	16 2003-10, Executive Order No. 2004-2, or Executive Order No.
14983	14983	17 2016-1.
14984	14984	18 (c) For the purposes of this Section:
14985	14985	19 (1) The term "State policeman" includes any title or
14986	14986	20 position in the Illinois State Police that is held by an
14987	14987	21 individual employed under the Illinois State Police Act.
14988	14988	22 (2) The term "fire fighter in the fire protection
14989	14989	23 service of a department" includes all officers in such
14990	14990	24 fire protection service including fire chiefs and
14991	14991	25 assistant fire chiefs.
14992	14992	26 (3) The term "air pilot" includes any employee whose
14993	14993
14994	14994
14995	14995
14996	14996
14997	14997
14998	14998	HB4873 - 418 - LRB103 35886 RPS 65971 b
14999	14999
15000	15000
15001	15001	HB4873- 419 -LRB103 35886 RPS 65971 b HB4873 - 419 - LRB103 35886 RPS 65971 b
15002	15002	HB4873 - 419 - LRB103 35886 RPS 65971 b
15003	15003	1 official job description on file in the Department of
15004	15004	2 Central Management Services, or in the department by which
15005	15005	3 he is employed if that department is not covered by the
15006	15006	4 Personnel Code, states that his principal duty is the
15007	15007	5 operation of aircraft, and who possesses a pilot's
15008	15008	6 license; however, the change in this definition made by
15009	15009	7 Public Act 83-842 shall not operate to exclude any
15010	15010	8 noncovered employee who was an "air pilot" for the
15011	15011	9 purposes of this Section on January 1, 1984.
15012	15012	10 (4) The term "special agent" means any person who by
15013	15013	11 reason of employment by the Division of Narcotic Control,
15014	15014	12 the Bureau of Investigation or, after July 1, 1977, the
15015	15015	13 Division of Criminal Investigation, the Division of
15016	15016	14 Internal Investigation, the Division of Operations, the
15017	15017	15 Division of Patrol, or any other Division or
15018	15018	16 organizational entity in the Illinois State Police is
15019	15019	17 vested by law with duties to maintain public order,
15020	15020	18 investigate violations of the criminal law of this State,
15021	15021	19 enforce the laws of this State, make arrests and recover
15022	15022	20 property. The term "special agent" includes any title or
15023	15023	21 position in the Illinois State Police that is held by an
15024	15024	22 individual employed under the Illinois State Police Act.
15025	15025	23 (5) The term "investigator for the Secretary of State"
15026	15026	24 means any person employed by the Office of the Secretary
15027	15027	25 of State and vested with such investigative duties as
15028	15028	26 render him ineligible for coverage under the Social
15029	15029
15030	15030
15031	15031
15032	15032
15033	15033
15034	15034	HB4873 - 419 - LRB103 35886 RPS 65971 b
15035	15035
15036	15036
15037	15037	HB4873- 420 -LRB103 35886 RPS 65971 b HB4873 - 420 - LRB103 35886 RPS 65971 b
15038	15038	HB4873 - 420 - LRB103 35886 RPS 65971 b
15039	15039	1 Security Act by reason of Sections 218(d)(5)(A),
15040	15040	2 218(d)(8)(D) and 218(l)(1) of that Act.
15041	15041	3 A person who became employed as an investigator for
15042	15042	4 the Secretary of State between January 1, 1967 and
15043	15043	5 December 31, 1975, and who has served as such until
15044	15044	6 attainment of age 60, either continuously or with a single
15045	15045	7 break in service of not more than 3 years duration, which
15046	15046	8 break terminated before January 1, 1976, shall be entitled
15047	15047	9 to have his retirement annuity calculated in accordance
15048	15048	10 with subsection (a), notwithstanding that he has less than
15049	15049	11 20 years of credit for such service.
15050	15050	12 (6) The term "Conservation Police Officer" means any
15051	15051	13 person employed by the Division of Law Enforcement of the
15052	15052	14 Department of Natural Resources and vested with such law
15053	15053	15 enforcement duties as render him ineligible for coverage
15054	15054	16 under the Social Security Act by reason of Sections
15055	15055	17 218(d)(5)(A), 218(d)(8)(D), and 218(l)(1) of that Act. The
15056	15056	18 term "Conservation Police Officer" includes the positions
15057	15057	19 of Chief Conservation Police Administrator and Assistant
15058	15058	20 Conservation Police Administrator.
15059	15059	21 (7) The term "investigator for the Department of
15060	15060	22 Revenue" means any person employed by the Department of
15061	15061	23 Revenue and vested with such investigative duties as
15062	15062	24 render him ineligible for coverage under the Social
15063	15063	25 Security Act by reason of Sections 218(d)(5)(A),
15064	15064	26 218(d)(8)(D) and 218(l)(1) of that Act.
15065	15065
15066	15066
15067	15067
15068	15068
15069	15069
15070	15070	HB4873 - 420 - LRB103 35886 RPS 65971 b
15071	15071
15072	15072
15073	15073	HB4873- 421 -LRB103 35886 RPS 65971 b HB4873 - 421 - LRB103 35886 RPS 65971 b
15074	15074	HB4873 - 421 - LRB103 35886 RPS 65971 b
15075	15075	1 The term "investigator for the Illinois Gaming Board"
15076	15076	2 means any person employed as such by the Illinois Gaming
15077	15077	3 Board and vested with such peace officer duties as render
15078	15078	4 the person ineligible for coverage under the Social
15079	15079	5 Security Act by reason of Sections 218(d)(5)(A),
15080	15080	6 218(d)(8)(D), and 218(l)(1) of that Act.
15081	15081	7 (8) The term "security employee of the Department of
15082	15082	8 Human Services" means any person employed by the
15083	15083	9 Department of Human Services who (i) is employed at the
15084	15084	10 Chester Mental Health Center and has daily contact with
15085	15085	11 the residents thereof, (ii) is employed within a security
15086	15086	12 unit at a facility operated by the Department and has
15087	15087	13 daily contact with the residents of the security unit,
15088	15088	14 (iii) is employed at a facility operated by the Department
15089	15089	15 that includes a security unit and is regularly scheduled
15090	15090	16 to work at least 50% of his or her working hours within
15091	15091	17 that security unit, or (iv) is a mental health police
15092	15092	18 officer. "Mental health police officer" means any person
15093	15093	19 employed by the Department of Human Services in a position
15094	15094	20 pertaining to the Department's mental health and
15095	15095	21 developmental disabilities functions who is vested with
15096	15096	22 such law enforcement duties as render the person
15097	15097	23 ineligible for coverage under the Social Security Act by
15098	15098	24 reason of Sections 218(d)(5)(A), 218(d)(8)(D) and
15099	15099	25 218(l)(1) of that Act. "Security unit" means that portion
15100	15100	26 of a facility that is devoted to the care, containment,
15101	15101
15102	15102
15103	15103
15104	15104
15105	15105
15106	15106	HB4873 - 421 - LRB103 35886 RPS 65971 b
15107	15107
15108	15108
15109	15109	HB4873- 422 -LRB103 35886 RPS 65971 b HB4873 - 422 - LRB103 35886 RPS 65971 b
15110	15110	HB4873 - 422 - LRB103 35886 RPS 65971 b
15111	15111	1 and treatment of persons committed to the Department of
15112	15112	2 Human Services as sexually violent persons, persons unfit
15113	15113	3 to stand trial, or persons not guilty by reason of
15114	15114	4 insanity. With respect to past employment, references to
15115	15115	5 the Department of Human Services include its predecessor,
15116	15116	6 the Department of Mental Health and Developmental
15117	15117	7 Disabilities.
15118	15118	8 The changes made to this subdivision (c)(8) by Public
15119	15119	9 Act 92-14 apply to persons who retire on or after January
15120	15120	10 1, 2001, notwithstanding Section 1-103.1.
15121	15121	11 (9) "Central Management Services security police
15122	15122	12 officer" means any person employed by the Department of
15123	15123	13 Central Management Services who is vested with such law
15124	15124	14 enforcement duties as render him ineligible for coverage
15125	15125	15 under the Social Security Act by reason of Sections
15126	15126	16 218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that Act.
15127	15127	17 (10) For a member who first became an employee under
15128	15128	18 this Article before July 1, 2005, the term "security
15129	15129	19 employee of the Department of Corrections or the
15130	15130	20 Department of Juvenile Justice" means any employee of the
15131	15131	21 Department of Corrections or the Department of Juvenile
15132	15132	22 Justice or the former Department of Personnel, and any
15133	15133	23 member or employee of the Prisoner Review Board, who has
15134	15134	24 daily contact with inmates or youth by working within a
15135	15135	25 correctional facility or Juvenile facility operated by the
15136	15136	26 Department of Juvenile Justice or who is a parole officer
15137	15137
15138	15138
15139	15139
15140	15140
15141	15141
15142	15142	HB4873 - 422 - LRB103 35886 RPS 65971 b
15143	15143
15144	15144
15145	15145	HB4873- 423 -LRB103 35886 RPS 65971 b HB4873 - 423 - LRB103 35886 RPS 65971 b
15146	15146	HB4873 - 423 - LRB103 35886 RPS 65971 b
15147	15147	1 or an employee who has direct contact with committed
15148	15148	2 persons in the performance of his or her job duties. For a
15149	15149	3 member who first becomes an employee under this Article on
15150	15150	4 or after July 1, 2005, the term means an employee of the
15151	15151	5 Department of Corrections or the Department of Juvenile
15152	15152	6 Justice who is any of the following: (i) officially
15153	15153	7 headquartered at a correctional facility or Juvenile
15154	15154	8 facility operated by the Department of Juvenile Justice,
15155	15155	9 (ii) a parole officer, (iii) a member of the apprehension
15156	15156	10 unit, (iv) a member of the intelligence unit, (v) a member
15157	15157	11 of the sort team, or (vi) an investigator.
15158	15158	12 (11) The term "dangerous drugs investigator" means any
15159	15159	13 person who is employed as such by the Department of Human
15160	15160	14 Services.
15161	15161	15 (12) The term "investigator for the Illinois State
15162	15162	16 Police" means a person employed by the Illinois State
15163	15163	17 Police who is vested under Section 4 of the Narcotic
15164	15164	18 Control Division Abolition Act with such law enforcement
15165	15165	19 powers as render him ineligible for coverage under the
15166	15166	20 Social Security Act by reason of Sections 218(d)(5)(A),
15167	15167	21 218(d)(8)(D) and 218(l)(1) of that Act.
15168	15168	22 (13) "Investigator for the Office of the Attorney
15169	15169	23 General" means any person who is employed as such by the
15170	15170	24 Office of the Attorney General and is vested with such
15171	15171	25 investigative duties as render him ineligible for coverage
15172	15172	26 under the Social Security Act by reason of Sections
15173	15173
15174	15174
15175	15175
15176	15176
15177	15177
15178	15178	HB4873 - 423 - LRB103 35886 RPS 65971 b
15179	15179
15180	15180
15181	15181	HB4873- 424 -LRB103 35886 RPS 65971 b HB4873 - 424 - LRB103 35886 RPS 65971 b
15182	15182	HB4873 - 424 - LRB103 35886 RPS 65971 b
15183	15183	1 218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that Act. For
15184	15184	2 the period before January 1, 1989, the term includes all
15185	15185	3 persons who were employed as investigators by the Office
15186	15186	4 of the Attorney General, without regard to social security
15187	15187	5 status.
15188	15188	6 (14) "Controlled substance inspector" means any person
15189	15189	7 who is employed as such by the Department of Professional
15190	15190	8 Regulation and is vested with such law enforcement duties
15191	15191	9 as render him ineligible for coverage under the Social
15192	15192	10 Security Act by reason of Sections 218(d)(5)(A),
15193	15193	11 218(d)(8)(D) and 218(l)(1) of that Act. The term
15194	15194	12 "controlled substance inspector" includes the Program
15195	15195	13 Executive of Enforcement and the Assistant Program
15196	15196	14 Executive of Enforcement.
15197	15197	15 (15) The term "investigator for the Office of the
15198	15198	16 State's Attorneys Appellate Prosecutor" means a person
15199	15199	17 employed in that capacity on a full-time basis under the
15200	15200	18 authority of Section 7.06 of the State's Attorneys
15201	15201	19 Appellate Prosecutor's Act.
15202	15202	20 (16) "Commerce Commission police officer" means any
15203	15203	21 person employed by the Illinois Commerce Commission who is
15204	15204	22 vested with such law enforcement duties as render him
15205	15205	23 ineligible for coverage under the Social Security Act by
15206	15206	24 reason of Sections 218(d)(5)(A), 218(d)(8)(D), and
15207	15207	25 218(l)(1) of that Act.
15208	15208	26 (17) "Arson investigator" means any person who is
15209	15209
15210	15210
15211	15211
15212	15212
15213	15213
15214	15214	HB4873 - 424 - LRB103 35886 RPS 65971 b
15215	15215
15216	15216
15217	15217	HB4873- 425 -LRB103 35886 RPS 65971 b HB4873 - 425 - LRB103 35886 RPS 65971 b
15218	15218	HB4873 - 425 - LRB103 35886 RPS 65971 b
15219	15219	1 employed as such by the Office of the State Fire Marshal
15220	15220	2 and is vested with such law enforcement duties as render
15221	15221	3 the person ineligible for coverage under the Social
15222	15222	4 Security Act by reason of Sections 218(d)(5)(A),
15223	15223	5 218(d)(8)(D), and 218(l)(1) of that Act. A person who was
15224	15224	6 employed as an arson investigator on January 1, 1995 and
15225	15225	7 is no longer in service but not yet receiving a retirement
15226	15226	8 annuity may convert his or her creditable service for
15227	15227	9 employment as an arson investigator into eligible
15228	15228	10 creditable service by paying to the System the difference
15229	15229	11 between the employee contributions actually paid for that
15230	15230	12 service and the amounts that would have been contributed
15231	15231	13 if the applicant were contributing at the rate applicable
15232	15232	14 to persons with the same social security status earning
15233	15233	15 eligible creditable service on the date of application.
15234	15234	16 (18) The term "State highway maintenance worker" means
15235	15235	17 a person who is either of the following:
15236	15236	18 (i) A person employed on a full-time basis by the
15237	15237	19 Illinois Department of Transportation in the position
15238	15238	20 of highway maintainer, highway maintenance lead
15239	15239	21 worker, highway maintenance lead/lead worker, heavy
15240	15240	22 construction equipment operator, power shovel
15241	15241	23 operator, or bridge mechanic; and whose principal
15242	15242	24 responsibility is to perform, on the roadway, the
15243	15243	25 actual maintenance necessary to keep the highways that
15244	15244	26 form a part of the State highway system in serviceable
15245	15245
15246	15246
15247	15247
15248	15248
15249	15249
15250	15250	HB4873 - 425 - LRB103 35886 RPS 65971 b
15251	15251
15252	15252
15253	15253	HB4873- 426 -LRB103 35886 RPS 65971 b HB4873 - 426 - LRB103 35886 RPS 65971 b
15254	15254	HB4873 - 426 - LRB103 35886 RPS 65971 b
15255	15255	1 condition for vehicular traffic.
15256	15256	2 (ii) A person employed on a full-time basis by the
15257	15257	3 Illinois State Toll Highway Authority in the position
15258	15258	4 of equipment operator/laborer H-4, equipment
15259	15259	5 operator/laborer H-6, welder H-4, welder H-6,
15260	15260	6 mechanical/electrical H-4, mechanical/electrical H-6,
15261	15261	7 water/sewer H-4, water/sewer H-6, sign maker/hanger
15262	15262	8 H-4, sign maker/hanger H-6, roadway lighting H-4,
15263	15263	9 roadway lighting H-6, structural H-4, structural H-6,
15264	15264	10 painter H-4, or painter H-6; and whose principal
15265	15265	11 responsibility is to perform, on the roadway, the
15266	15266	12 actual maintenance necessary to keep the Authority's
15267	15267	13 tollways in serviceable condition for vehicular
15268	15268	14 traffic.
15269	15269	15 (19) The term "security employee of the Department of
15270	15270	16 Innovation and Technology" means a person who was a
15271	15271	17 security employee of the Department of Corrections or the
15272	15272	18 Department of Juvenile Justice, was transferred to the
15273	15273	19 Department of Innovation and Technology pursuant to
15274	15274	20 Executive Order 2016-01, and continues to perform similar
15275	15275	21 job functions under that Department.
15276	15276	22 (20) "Transferred employee" means an employee who was
15277	15277	23 transferred to the Department of Central Management
15278	15278	24 Services by Executive Order No. 2003-10 or Executive Order
15279	15279	25 No. 2004-2 or transferred to the Department of Innovation
15280	15280	26 and Technology by Executive Order No. 2016-1, or both, and
15281	15281
15282	15282
15283	15283
15284	15284
15285	15285
15286	15286	HB4873 - 426 - LRB103 35886 RPS 65971 b
15287	15287
15288	15288
15289	15289	HB4873- 427 -LRB103 35886 RPS 65971 b HB4873 - 427 - LRB103 35886 RPS 65971 b
15290	15290	HB4873 - 427 - LRB103 35886 RPS 65971 b
15291	15291	1 was entitled to eligible creditable service for services
15292	15292	2 immediately preceding the transfer.
15293	15293	3 (21) The term "investigator for the Department of the
15294	15294	4 Lottery" means any person employed by the Department of
15295	15295	5 the Lottery and who is vested with such investigative
15296	15296	6 duties which render him or her ineligible for coverage
15297	15297	7 under the Social Security Act by reason of Sections
15298	15298	8 218(d)(5)(A), 218(d)(8)(D), and 218(l)(1) of that Act. An
15299	15299	9 investigator for the Department of the Lottery who
15300	15300	10 qualifies under this Section shall earn eligible
15301	15301	11 creditable service and be required to make contributions
15302	15302	12 at the rate specified in paragraph (3) of subsection (a)
15303	15303	13 of Section 14-133 for all periods of service as an
15304	15304	14 investigator for the Department of the Lottery.
15305	15305	15 (d) A security employee of the Department of Corrections
15306	15306	16 or the Department of Juvenile Justice, a security employee of
15307	15307	17 the Department of Human Services who is not a mental health
15308	15308	18 police officer, and a security employee of the Department of
15309	15309	19 Innovation and Technology shall not be eligible for the
15310	15310	20 alternative retirement annuity provided by this Section unless
15311	15311	21 he or she meets the following minimum age and service
15312	15312	22 requirements at the time of retirement:
15313	15313	23 (i) 25 years of eligible creditable service and age
15314	15314	24 55; or
15315	15315	25 (ii) beginning January 1, 1987, 25 years of eligible
15316	15316	26 creditable service and age 54, or 24 years of eligible
15317	15317
15318	15318
15319	15319
15320	15320
15321	15321
15322	15322	HB4873 - 427 - LRB103 35886 RPS 65971 b
15323	15323
15324	15324
15325	15325	HB4873- 428 -LRB103 35886 RPS 65971 b HB4873 - 428 - LRB103 35886 RPS 65971 b
15326	15326	HB4873 - 428 - LRB103 35886 RPS 65971 b
15327	15327	1 creditable service and age 55; or
15328	15328	2 (iii) beginning January 1, 1988, 25 years of eligible
15329	15329	3 creditable service and age 53, or 23 years of eligible
15330	15330	4 creditable service and age 55; or
15331	15331	5 (iv) beginning January 1, 1989, 25 years of eligible
15332	15332	6 creditable service and age 52, or 22 years of eligible
15333	15333	7 creditable service and age 55; or
15334	15334	8 (v) beginning January 1, 1990, 25 years of eligible
15335	15335	9 creditable service and age 51, or 21 years of eligible
15336	15336	10 creditable service and age 55; or
15337	15337	11 (vi) beginning January 1, 1991, 25 years of eligible
15338	15338	12 creditable service and age 50, or 20 years of eligible
15339	15339	13 creditable service and age 55.
15340	15340	14 Persons who have service credit under Article 16 of this
15341	15341	15 Code for service as a security employee of the Department of
15342	15342	16 Corrections or the Department of Juvenile Justice, or the
15343	15343	17 Department of Human Services in a position requiring
15344	15344	18 certification as a teacher may count such service toward
15345	15345	19 establishing their eligibility under the service requirements
15346	15346	20 of this Section; but such service may be used only for
15347	15347	21 establishing such eligibility, and not for the purpose of
15348	15348	22 increasing or calculating any benefit.
15349	15349	23 (e) If a member enters military service while working in a
15350	15350	24 position in which eligible creditable service may be earned,
15351	15351	25 and returns to State service in the same or another such
15352	15352	26 position, and fulfills in all other respects the conditions
15353	15353
15354	15354
15355	15355
15356	15356
15357	15357
15358	15358	HB4873 - 428 - LRB103 35886 RPS 65971 b
15359	15359
15360	15360
15361	15361	HB4873- 429 -LRB103 35886 RPS 65971 b HB4873 - 429 - LRB103 35886 RPS 65971 b
15362	15362	HB4873 - 429 - LRB103 35886 RPS 65971 b
15363	15363	1 prescribed in this Article for credit for military service,
15364	15364	2 such military service shall be credited as eligible creditable
15365	15365	3 service for the purposes of the retirement annuity prescribed
15366	15366	4 in this Section.
15367	15367	5 (f) For purposes of calculating retirement annuities under
15368	15368	6 this Section, periods of service rendered after December 31,
15369	15369	7 1968 and before October 1, 1975 as a covered employee in the
15370	15370	8 position of special agent, conservation police officer, mental
15371	15371	9 health police officer, or investigator for the Secretary of
15372	15372	10 State, shall be deemed to have been service as a noncovered
15373	15373	11 employee, provided that the employee pays to the System prior
15374	15374	12 to retirement an amount equal to (1) the difference between
15375	15375	13 the employee contributions that would have been required for
15376	15376	14 such service as a noncovered employee, and the amount of
15377	15377	15 employee contributions actually paid, plus (2) if payment is
15378	15378	16 made after July 31, 1987, regular interest on the amount
15379	15379	17 specified in item (1) from the date of service to the date of
15380	15380	18 payment.
15381	15381	19 For purposes of calculating retirement annuities under
15382	15382	20 this Section, periods of service rendered after December 31,
15383	15383	21 1968 and before January 1, 1982 as a covered employee in the
15384	15384	22 position of investigator for the Department of Revenue shall
15385	15385	23 be deemed to have been service as a noncovered employee,
15386	15386	24 provided that the employee pays to the System prior to
15387	15387	25 retirement an amount equal to (1) the difference between the
15388	15388	26 employee contributions that would have been required for such
15389	15389
15390	15390
15391	15391
15392	15392
15393	15393
15394	15394	HB4873 - 429 - LRB103 35886 RPS 65971 b
15395	15395
15396	15396
15397	15397	HB4873- 430 -LRB103 35886 RPS 65971 b HB4873 - 430 - LRB103 35886 RPS 65971 b
15398	15398	HB4873 - 430 - LRB103 35886 RPS 65971 b
15399	15399	1 service as a noncovered employee, and the amount of employee
15400	15400	2 contributions actually paid, plus (2) if payment is made after
15401	15401	3 January 1, 1990, regular interest on the amount specified in
15402	15402	4 item (1) from the date of service to the date of payment.
15403	15403	5 (g) A State policeman may elect, not later than January 1,
15404	15404	6 1990, to establish eligible creditable service for up to 10
15405	15405	7 years of his service as a policeman under Article 3, by filing
15406	15406	8 a written election with the Board, accompanied by payment of
15407	15407	9 an amount to be determined by the Board, equal to (i) the
15408	15408	10 difference between the amount of employee and employer
15409	15409	11 contributions transferred to the System under Section 3-110.5,
15410	15410	12 and the amounts that would have been contributed had such
15411	15411	13 contributions been made at the rates applicable to State
15412	15412	14 policemen, plus (ii) interest thereon at the effective rate
15413	15413	15 for each year, compounded annually, from the date of service
15414	15414	16 to the date of payment.
15415	15415	17 Subject to the limitation in subsection (i), a State
15416	15416	18 policeman may elect, not later than July 1, 1993, to establish
15417	15417	19 eligible creditable service for up to 10 years of his service
15418	15418	20 as a member of the County Police Department under Article 9, by
15419	15419	21 filing a written election with the Board, accompanied by
15420	15420	22 payment of an amount to be determined by the Board, equal to
15421	15421	23 (i) the difference between the amount of employee and employer
15422	15422	24 contributions transferred to the System under Section 9-121.10
15423	15423	25 and the amounts that would have been contributed had those
15424	15424	26 contributions been made at the rates applicable to State
15425	15425
15426	15426
15427	15427
15428	15428
15429	15429
15430	15430	HB4873 - 430 - LRB103 35886 RPS 65971 b
15431	15431
15432	15432
15433	15433	HB4873- 431 -LRB103 35886 RPS 65971 b HB4873 - 431 - LRB103 35886 RPS 65971 b
15434	15434	HB4873 - 431 - LRB103 35886 RPS 65971 b
15435	15435	1 policemen, plus (ii) interest thereon at the effective rate
15436	15436	2 for each year, compounded annually, from the date of service
15437	15437	3 to the date of payment.
15438	15438	4 (h) Subject to the limitation in subsection (i), a State
15439	15439	5 policeman or investigator for the Secretary of State may elect
15440	15440	6 to establish eligible creditable service for up to 12 years of
15441	15441	7 his service as a policeman under Article 5, by filing a written
15442	15442	8 election with the Board on or before January 31, 1992, and
15443	15443	9 paying to the System by January 31, 1994 an amount to be
15444	15444	10 determined by the Board, equal to (i) the difference between
15445	15445	11 the amount of employee and employer contributions transferred
15446	15446	12 to the System under Section 5-236, and the amounts that would
15447	15447	13 have been contributed had such contributions been made at the
15448	15448	14 rates applicable to State policemen, plus (ii) interest
15449	15449	15 thereon at the effective rate for each year, compounded
15450	15450	16 annually, from the date of service to the date of payment.
15451	15451	17 Subject to the limitation in subsection (i), a State
15452	15452	18 policeman, conservation police officer, or investigator for
15453	15453	19 the Secretary of State may elect to establish eligible
15454	15454	20 creditable service for up to 10 years of service as a sheriff's
15455	15455	21 law enforcement employee under Article 7, by filing a written
15456	15456	22 election with the Board on or before January 31, 1993, and
15457	15457	23 paying to the System by January 31, 1994 an amount to be
15458	15458	24 determined by the Board, equal to (i) the difference between
15459	15459	25 the amount of employee and employer contributions transferred
15460	15460	26 to the System under Section 7-139.7, and the amounts that
15461	15461
15462	15462
15463	15463
15464	15464
15465	15465
15466	15466	HB4873 - 431 - LRB103 35886 RPS 65971 b
15467	15467
15468	15468
15469	15469	HB4873- 432 -LRB103 35886 RPS 65971 b HB4873 - 432 - LRB103 35886 RPS 65971 b
15470	15470	HB4873 - 432 - LRB103 35886 RPS 65971 b
15471	15471	1 would have been contributed had such contributions been made
15472	15472	2 at the rates applicable to State policemen, plus (ii) interest
15473	15473	3 thereon at the effective rate for each year, compounded
15474	15474	4 annually, from the date of service to the date of payment.
15475	15475	5 Subject to the limitation in subsection (i), a State
15476	15476	6 policeman, conservation police officer, or investigator for
15477	15477	7 the Secretary of State may elect to establish eligible
15478	15478	8 creditable service for up to 5 years of service as a police
15479	15479	9 officer under Article 3, a policeman under Article 5, a
15480	15480	10 sheriff's law enforcement employee under Article 7, a member
15481	15481	11 of the county police department under Article 9, or a police
15482	15482	12 officer under Article 15 by filing a written election with the
15483	15483	13 Board and paying to the System an amount to be determined by
15484	15484	14 the Board, equal to (i) the difference between the amount of
15485	15485	15 employee and employer contributions transferred to the System
15486	15486	16 under Section 3-110.6, 5-236, 7-139.8, 9-121.10, or 15-134.4
15487	15487	17 and the amounts that would have been contributed had such
15488	15488	18 contributions been made at the rates applicable to State
15489	15489	19 policemen, plus (ii) interest thereon at the effective rate
15490	15490	20 for each year, compounded annually, from the date of service
15491	15491	21 to the date of payment.
15492	15492	22 Subject to the limitation in subsection (i), an
15493	15493	23 investigator for the Office of the Attorney General, or an
15494	15494	24 investigator for the Department of Revenue, may elect to
15495	15495	25 establish eligible creditable service for up to 5 years of
15496	15496	26 service as a police officer under Article 3, a policeman under
15497	15497
15498	15498
15499	15499
15500	15500
15501	15501
15502	15502	HB4873 - 432 - LRB103 35886 RPS 65971 b
15503	15503
15504	15504
15505	15505	HB4873- 433 -LRB103 35886 RPS 65971 b HB4873 - 433 - LRB103 35886 RPS 65971 b
15506	15506	HB4873 - 433 - LRB103 35886 RPS 65971 b
15507	15507	1 Article 5, a sheriff's law enforcement employee under Article
15508	15508	2 7, or a member of the county police department under Article 9
15509	15509	3 by filing a written election with the Board within 6 months
15510	15510	4 after August 25, 2009 (the effective date of Public Act
15511	15511	5 96-745) and paying to the System an amount to be determined by
15512	15512	6 the Board, equal to (i) the difference between the amount of
15513	15513	7 employee and employer contributions transferred to the System
15514	15514	8 under Section 3-110.6, 5-236, 7-139.8, or 9-121.10 and the
15515	15515	9 amounts that would have been contributed had such
15516	15516	10 contributions been made at the rates applicable to State
15517	15517	11 policemen, plus (ii) interest thereon at the actuarially
15518	15518	12 assumed rate for each year, compounded annually, from the date
15519	15519	13 of service to the date of payment.
15520	15520	14 Subject to the limitation in subsection (i), a State
15521	15521	15 policeman, conservation police officer, investigator for the
15522	15522	16 Office of the Attorney General, an investigator for the
15523	15523	17 Department of Revenue, or investigator for the Secretary of
15524	15524	18 State may elect to establish eligible creditable service for
15525	15525	19 up to 5 years of service as a person employed by a
15526	15526	20 participating municipality to perform police duties, or law
15527	15527	21 enforcement officer employed on a full-time basis by a forest
15528	15528	22 preserve district under Article 7, a county corrections
15529	15529	23 officer, or a court services officer under Article 9, by
15530	15530	24 filing a written election with the Board within 6 months after
15531	15531	25 August 25, 2009 (the effective date of Public Act 96-745) and
15532	15532	26 paying to the System an amount to be determined by the Board,
15533	15533
15534	15534
15535	15535
15536	15536
15537	15537
15538	15538	HB4873 - 433 - LRB103 35886 RPS 65971 b
15539	15539
15540	15540
15541	15541	HB4873- 434 -LRB103 35886 RPS 65971 b HB4873 - 434 - LRB103 35886 RPS 65971 b
15542	15542	HB4873 - 434 - LRB103 35886 RPS 65971 b
15543	15543	1 equal to (i) the difference between the amount of employee and
15544	15544	2 employer contributions transferred to the System under
15545	15545	3 Sections 7-139.8 and 9-121.10 and the amounts that would have
15546	15546	4 been contributed had such contributions been made at the rates
15547	15547	5 applicable to State policemen, plus (ii) interest thereon at
15548	15548	6 the actuarially assumed rate for each year, compounded
15549	15549	7 annually, from the date of service to the date of payment.
15550	15550	8 Subject to the limitation in subsection (i), a State
15551	15551	9 policeman, arson investigator, or Commerce Commission police
15552	15552	10 officer may elect to establish eligible creditable service for
15553	15553	11 up to 5 years of service as a person employed by a
15554	15554	12 participating municipality to perform police duties under
15555	15555	13 Article 7, a county corrections officer, a court services
15556	15556	14 officer under Article 9, or a firefighter under Article 4 by
15557	15557	15 filing a written election with the Board within 6 months after
15558	15558	16 July 30, 2021 (the effective date of Public Act 102-210) and
15559	15559	17 paying to the System an amount to be determined by the Board
15560	15560	18 equal to (i) the difference between the amount of employee and
15561	15561	19 employer contributions transferred to the System under
15562	15562	20 Sections 4-108.8, 7-139.8, and 9-121.10 and the amounts that
15563	15563	21 would have been contributed had such contributions been made
15564	15564	22 at the rates applicable to State policemen, plus (ii) interest
15565	15565	23 thereon at the actuarially assumed rate for each year,
15566	15566	24 compounded annually, from the date of service to the date of
15567	15567	25 payment.
15568	15568	26 Subject to the limitation in subsection (i), a
15569	15569
15570	15570
15571	15571
15572	15572
15573	15573
15574	15574	HB4873 - 434 - LRB103 35886 RPS 65971 b
15575	15575
15576	15576
15577	15577	HB4873- 435 -LRB103 35886 RPS 65971 b HB4873 - 435 - LRB103 35886 RPS 65971 b
15578	15578	HB4873 - 435 - LRB103 35886 RPS 65971 b
15579	15579	1 conservation police officer may elect to establish eligible
15580	15580	2 creditable service for up to 5 years of service as a person
15581	15581	3 employed by a participating municipality to perform police
15582	15582	4 duties under Article 7, a county corrections officer, or a
15583	15583	5 court services officer under Article 9 by filing a written
15584	15584	6 election with the Board within 6 months after July 30, 2021
15585	15585	7 (the effective date of Public Act 102-210) and paying to the
15586	15586	8 System an amount to be determined by the Board equal to (i) the
15587	15587	9 difference between the amount of employee and employer
15588	15588	10 contributions transferred to the System under Sections 7-139.8
15589	15589	11 and 9-121.10 and the amounts that would have been contributed
15590	15590	12 had such contributions been made at the rates applicable to
15591	15591	13 State policemen, plus (ii) interest thereon at the actuarially
15592	15592	14 assumed rate for each year, compounded annually, from the date
15593	15593	15 of service to the date of payment.
15594	15594	16 Notwithstanding the limitation in subsection (i), a State
15595	15595	17 policeman or conservation police officer may elect to convert
15596	15596	18 service credit earned under this Article to eligible
15597	15597	19 creditable service, as defined by this Section, by filing a
15598	15598	20 written election with the board within 6 months after July 30,
15599	15599	21 2021 (the effective date of Public Act 102-210) and paying to
15600	15600	22 the System an amount to be determined by the Board equal to (i)
15601	15601	23 the difference between the amount of employee contributions
15602	15602	24 originally paid for that service and the amounts that would
15603	15603	25 have been contributed had such contributions been made at the
15604	15604	26 rates applicable to State policemen, plus (ii) the difference
15605	15605
15606	15606
15607	15607
15608	15608
15609	15609
15610	15610	HB4873 - 435 - LRB103 35886 RPS 65971 b
15611	15611
15612	15612
15613	15613	HB4873- 436 -LRB103 35886 RPS 65971 b HB4873 - 436 - LRB103 35886 RPS 65971 b
15614	15614	HB4873 - 436 - LRB103 35886 RPS 65971 b
15615	15615	1 between the employer's normal cost of the credit prior to the
15616	15616	2 conversion authorized by Public Act 102-210 and the employer's
15617	15617	3 normal cost of the credit converted in accordance with Public
15618	15618	4 Act 102-210, plus (iii) interest thereon at the actuarially
15619	15619	5 assumed rate for each year, compounded annually, from the date
15620	15620	6 of service to the date of payment.
15621	15621	7 Subject to the limitation in subsection (i), a security
15622	15622	8 employee of the Department of Human Services who is subject to
15623	15623	9 subsection (g-1) of Section 1-160 may elect to convert up to 12
15624	15624	10 years of service credit established before the effective date
15625	15625	11 of this amendatory Act of the 103rd General Assembly as a
15626	15626	12 security employee of the Department of Human Services to
15627	15627	13 eligible creditable service by filing a written election with
15628	15628	14 the Board no later than 2 years after the effective date of
15629	15629	15 this amendatory Act of the 103rd General Assembly, accompanied
15630	15630	16 by payment of an amount, to be determined by the Board, equal
15631	15631	17 to (i) the difference between the amount of the employee
15632	15632	18 contributions actually paid for that service and the amount of
15633	15633	19 the employee contributions that would have been paid had the
15634	15634	20 employee contributions been made as a covered employee serving
15635	15635	21 in a position in which eligible creditable service, as defined
15636	15636	22 in this Section, may be earned, plus (ii) interest thereon at
15637	15637	23 the effective rate for each year, compounded annually, from
15638	15638	24 the date of service to the date of payment.
15639	15639	25 (i) The total amount of eligible creditable service
15640	15640	26 established by any person under subsections (g), (h), (j),
15641	15641
15642	15642
15643	15643
15644	15644
15645	15645
15646	15646	HB4873 - 436 - LRB103 35886 RPS 65971 b
15647	15647
15648	15648
15649	15649	HB4873- 437 -LRB103 35886 RPS 65971 b HB4873 - 437 - LRB103 35886 RPS 65971 b
15650	15650	HB4873 - 437 - LRB103 35886 RPS 65971 b
15651	15651	1 (k), (l), (l-5), (o), and (p) of this Section shall not exceed
15652	15652	2 12 years.
15653	15653	3 (j) Subject to the limitation in subsection (i), an
15654	15654	4 investigator for the Office of the State's Attorneys Appellate
15655	15655	5 Prosecutor or a controlled substance inspector may elect to
15656	15656	6 establish eligible creditable service for up to 10 years of
15657	15657	7 his service as a policeman under Article 3 or a sheriff's law
15658	15658	8 enforcement employee under Article 7, by filing a written
15659	15659	9 election with the Board, accompanied by payment of an amount
15660	15660	10 to be determined by the Board, equal to (1) the difference
15661	15661	11 between the amount of employee and employer contributions
15662	15662	12 transferred to the System under Section 3-110.6 or 7-139.8,
15663	15663	13 and the amounts that would have been contributed had such
15664	15664	14 contributions been made at the rates applicable to State
15665	15665	15 policemen, plus (2) interest thereon at the effective rate for
15666	15666	16 each year, compounded annually, from the date of service to
15667	15667	17 the date of payment.
15668	15668	18 (k) Subject to the limitation in subsection (i) of this
15669	15669	19 Section, an alternative formula employee may elect to
15670	15670	20 establish eligible creditable service for periods spent as a
15671	15671	21 full-time law enforcement officer or full-time corrections
15672	15672	22 officer employed by the federal government or by a state or
15673	15673	23 local government located outside of Illinois, for which credit
15674	15674	24 is not held in any other public employee pension fund or
15675	15675	25 retirement system. To obtain this credit, the applicant must
15676	15676	26 file a written application with the Board by March 31, 1998,
15677	15677
15678	15678
15679	15679
15680	15680
15681	15681
15682	15682	HB4873 - 437 - LRB103 35886 RPS 65971 b
15683	15683
15684	15684
15685	15685	HB4873- 438 -LRB103 35886 RPS 65971 b HB4873 - 438 - LRB103 35886 RPS 65971 b
15686	15686	HB4873 - 438 - LRB103 35886 RPS 65971 b
15687	15687	1 accompanied by evidence of eligibility acceptable to the Board
15688	15688	2 and payment of an amount to be determined by the Board, equal
15689	15689	3 to (1) employee contributions for the credit being
15690	15690	4 established, based upon the applicant's salary on the first
15691	15691	5 day as an alternative formula employee after the employment
15692	15692	6 for which credit is being established and the rates then
15693	15693	7 applicable to alternative formula employees, plus (2) an
15694	15694	8 amount determined by the Board to be the employer's normal
15695	15695	9 cost of the benefits accrued for the credit being established,
15696	15696	10 plus (3) regular interest on the amounts in items (1) and (2)
15697	15697	11 from the first day as an alternative formula employee after
15698	15698	12 the employment for which credit is being established to the
15699	15699	13 date of payment.
15700	15700	14 (l) Subject to the limitation in subsection (i), a
15701	15701	15 security employee of the Department of Corrections may elect,
15702	15702	16 not later than July 1, 1998, to establish eligible creditable
15703	15703	17 service for up to 10 years of his or her service as a policeman
15704	15704	18 under Article 3, by filing a written election with the Board,
15705	15705	19 accompanied by payment of an amount to be determined by the
15706	15706	20 Board, equal to (i) the difference between the amount of
15707	15707	21 employee and employer contributions transferred to the System
15708	15708	22 under Section 3-110.5, and the amounts that would have been
15709	15709	23 contributed had such contributions been made at the rates
15710	15710	24 applicable to security employees of the Department of
15711	15711	25 Corrections, plus (ii) interest thereon at the effective rate
15712	15712	26 for each year, compounded annually, from the date of service
15713	15713
15714	15714
15715	15715
15716	15716
15717	15717
15718	15718	HB4873 - 438 - LRB103 35886 RPS 65971 b
15719	15719
15720	15720
15721	15721	HB4873- 439 -LRB103 35886 RPS 65971 b HB4873 - 439 - LRB103 35886 RPS 65971 b
15722	15722	HB4873 - 439 - LRB103 35886 RPS 65971 b
15723	15723	1 to the date of payment.
15724	15724	2 (l-5) Subject to the limitation in subsection (i) of this
15725	15725	3 Section, a State policeman may elect to establish eligible
15726	15726	4 creditable service for up to 5 years of service as a full-time
15727	15727	5 law enforcement officer employed by the federal government or
15728	15728	6 by a state or local government located outside of Illinois for
15729	15729	7 which credit is not held in any other public employee pension
15730	15730	8 fund or retirement system. To obtain this credit, the
15731	15731	9 applicant must file a written application with the Board no
15732	15732	10 later than 3 years after January 1, 2020 (the effective date of
15733	15733	11 Public Act 101-610), accompanied by evidence of eligibility
15734	15734	12 acceptable to the Board and payment of an amount to be
15735	15735	13 determined by the Board, equal to (1) employee contributions
15736	15736	14 for the credit being established, based upon the applicant's
15737	15737	15 salary on the first day as an alternative formula employee
15738	15738	16 after the employment for which credit is being established and
15739	15739	17 the rates then applicable to alternative formula employees,
15740	15740	18 plus (2) an amount determined by the Board to be the employer's
15741	15741	19 normal cost of the benefits accrued for the credit being
15742	15742	20 established, plus (3) regular interest on the amounts in items
15743	15743	21 (1) and (2) from the first day as an alternative formula
15744	15744	22 employee after the employment for which credit is being
15745	15745	23 established to the date of payment.
15746	15746	24 (m) The amendatory changes to this Section made by Public
15747	15747	25 Act 94-696 apply only to: (1) security employees of the
15748	15748	26 Department of Juvenile Justice employed by the Department of
15749	15749
15750	15750
15751	15751
15752	15752
15753	15753
15754	15754	HB4873 - 439 - LRB103 35886 RPS 65971 b
15755	15755
15756	15756
15757	15757	HB4873- 440 -LRB103 35886 RPS 65971 b HB4873 - 440 - LRB103 35886 RPS 65971 b
15758	15758	HB4873 - 440 - LRB103 35886 RPS 65971 b
15759	15759	1 Corrections before June 1, 2006 (the effective date of Public
15760	15760	2 Act 94-696) and transferred to the Department of Juvenile
15761	15761	3 Justice by Public Act 94-696; and (2) persons employed by the
15762	15762	4 Department of Juvenile Justice on or after June 1, 2006 (the
15763	15763	5 effective date of Public Act 94-696) who are required by
15764	15764	6 subsection (b) of Section 3-2.5-15 of the Unified Code of
15765	15765	7 Corrections to have any bachelor's or advanced degree from an
15766	15766	8 accredited college or university or, in the case of persons
15767	15767	9 who provide vocational training, who are required to have
15768	15768	10 adequate knowledge in the skill for which they are providing
15769	15769	11 the vocational training.
15770	15770	12 Beginning with the pay period that immediately follows the
15771	15771	13 effective date of this amendatory Act of the 103rd General
15772	15772	14 Assembly, the bachelor's or advanced degree requirement of
15773	15773	15 subsection (b) of Section 3-2.5-15 of the Unified Code of
15774	15774	16 Corrections shall no longer determine the eligibility to earn
15775	15775	17 eligible creditable service for a person employed by the
15776	15776	18 Department of Juvenile Justice.
15777	15777	19 An employee may elect to convert into eligible creditable
15778	15778	20 service his or her creditable service earned with the
15779	15779	21 Department of Juvenile Justice while employed in a position
15780	15780	22 that required the employee to do any one or more of the
15781	15781	23 following: (1) participate or assist in the rehabilitative and
15782	15782	24 vocational training of delinquent youths; (2) supervise the
15783	15783	25 daily activities and assume direct and continuing
15784	15784	26 responsibility for the youth's security, welfare, and
15785	15785
15786	15786
15787	15787
15788	15788
15789	15789
15790	15790	HB4873 - 440 - LRB103 35886 RPS 65971 b
15791	15791
15792	15792
15793	15793	HB4873- 441 -LRB103 35886 RPS 65971 b HB4873 - 441 - LRB103 35886 RPS 65971 b
15794	15794	HB4873 - 441 - LRB103 35886 RPS 65971 b
15795	15795	1 development; or (3) participate in the personal rehabilitation
15796	15796	2 of delinquent youth by training, supervising, and assisting
15797	15797	3 lower-level personnel. To convert that creditable service to
15798	15798	4 eligible creditable service, the employee must pay to the
15799	15799	5 System the difference between the employee contributions
15800	15800	6 actually paid for that service and the amounts that would have
15801	15801	7 been contributed if the applicant were contributing at the
15802	15802	8 rate applicable to persons with the same Social Security
15803	15803	9 status earning eligible creditable service on the date of
15804	15804	10 application.
15805	15805	11 (n) A person employed in a position under subsection (b)
15806	15806	12 of this Section who has purchased service credit under
15807	15807	13 subsection (j) of Section 14-104 or subsection (b) of Section
15808	15808	14 14-105 in any other capacity under this Article may convert up
15809	15809	15 to 5 years of that service credit into service credit covered
15810	15810	16 under this Section by paying to the Fund an amount equal to (1)
15811	15811	17 the additional employee contribution required under Section
15812	15812	18 14-133, plus (2) the additional employer contribution required
15813	15813	19 under Section 14-131, plus (3) interest on items (1) and (2) at
15814	15814	20 the actuarially assumed rate from the date of the service to
15815	15815	21 the date of payment.
15816	15816	22 (o) Subject to the limitation in subsection (i), a
15817	15817	23 conservation police officer, investigator for the Secretary of
15818	15818	24 State, Commerce Commission police officer, investigator for
15819	15819	25 the Department of Revenue or the Illinois Gaming Board, or
15820	15820	26 arson investigator subject to subsection (g) of Section 1-160
15821	15821
15822	15822
15823	15823
15824	15824
15825	15825
15826	15826	HB4873 - 441 - LRB103 35886 RPS 65971 b
15827	15827
15828	15828
15829	15829	HB4873- 442 -LRB103 35886 RPS 65971 b HB4873 - 442 - LRB103 35886 RPS 65971 b
15830	15830	HB4873 - 442 - LRB103 35886 RPS 65971 b
15831	15831	1 may elect to convert up to 8 years of service credit
15832	15832	2 established before January 1, 2020 (the effective date of
15833	15833	3 Public Act 101-610) as a conservation police officer,
15834	15834	4 investigator for the Secretary of State, Commerce Commission
15835	15835	5 police officer, investigator for the Department of Revenue or
15836	15836	6 the Illinois Gaming Board, or arson investigator under this
15837	15837	7 Article into eligible creditable service by filing a written
15838	15838	8 election with the Board no later than one year after January 1,
15839	15839	9 2020 (the effective date of Public Act 101-610), accompanied
15840	15840	10 by payment of an amount to be determined by the Board equal to
15841	15841	11 (i) the difference between the amount of the employee
15842	15842	12 contributions actually paid for that service and the amount of
15843	15843	13 the employee contributions that would have been paid had the
15844	15844	14 employee contributions been made as a noncovered employee
15845	15845	15 serving in a position in which eligible creditable service, as
15846	15846	16 defined in this Section, may be earned, plus (ii) interest
15847	15847	17 thereon at the effective rate for each year, compounded
15848	15848	18 annually, from the date of service to the date of payment.
15849	15849	19 (p) Subject to the limitation in subsection (i), an
15850	15850	20 investigator for the Office of the Attorney General subject to
15851	15851	21 subsection (g) of Section 1-160 may elect to convert up to 8
15852	15852	22 years of service credit established before the effective date
15853	15853	23 of this amendatory Act of the 102nd General Assembly as an
15854	15854	24 investigator for the Office of the Attorney General under this
15855	15855	25 Article into eligible creditable service by filing a written
15856	15856	26 election with the Board no later than one year after the
15857	15857
15858	15858
15859	15859
15860	15860
15861	15861
15862	15862	HB4873 - 442 - LRB103 35886 RPS 65971 b
15863	15863
15864	15864
15865	15865	HB4873- 443 -LRB103 35886 RPS 65971 b HB4873 - 443 - LRB103 35886 RPS 65971 b
15866	15866	HB4873 - 443 - LRB103 35886 RPS 65971 b
15867	15867	1 effective date of this amendatory Act of the 102nd General
15868	15868	2 Assembly, accompanied by payment of an amount to be determined
15869	15869	3 by the Board equal to (i) the difference between the amount of
15870	15870	4 the employee contributions actually paid for that service and
15871	15871	5 the amount of the employee contributions that would have been
15872	15872	6 paid had the employee contributions been made as a noncovered
15873	15873	7 employee serving in a position in which eligible creditable
15874	15874	8 service, as defined in this Section, may be earned, plus (ii)
15875	15875	9 interest thereon at the effective rate for each year,
15876	15876	10 compounded annually, from the date of service to the date of
15877	15877	11 payment.
15878	15878	12 (Source: P.A. 102-210, eff. 7-30-21; 102-538, eff. 8-20-21;
15879	15879	13 102-956, eff. 5-27-22; 103-34, eff. 1-1-24.)
15880	15880	14 Article 12.
15881	15881	15 Section 12-5. The Illinois Pension Code is amended by
15882	15882	16 adding Sections 3-144.3 and 4-138.15 as follows:
15883	15883	17 (40 ILCS 5/3-144.3 new)
15884	15884	18 Sec. 3-144.3. Retirement Systems Reciprocal Act. The
15885	15885	19 Retirement Systems Reciprocal Act, Article 20 of this Code, is
15886	15886	20 adopted and made a part of this Article, but only with respect
15887	15887	21 to a person who, on or after the effective date of this
15888	15888	22 amendatory Act of the 103rd General Assembly, is entitled
15889	15889	23 under this Article or through a participating system under the
15890	15890
15891	15891
15892	15892
15893	15893
15894	15894
15895	15895	HB4873 - 443 - LRB103 35886 RPS 65971 b
15896	15896
15897	15897
15898	15898	HB4873- 444 -LRB103 35886 RPS 65971 b HB4873 - 444 - LRB103 35886 RPS 65971 b
15899	15899	HB4873 - 444 - LRB103 35886 RPS 65971 b
15900	15900	1 Retirement Systems Reciprocal Act, as defined in Section
15901	15901	2 20-108, to begin receiving a retirement annuity or survivor's
15902	15902	3 annuity (as those terms are defined in Article 20) and who
15903	15903	4 elects to proceed under the Retirement Systems Reciprocal Act.
15904	15904	5 (40 ILCS 5/4-138.15 new)
15905	15905	6 Sec. 4-138.15. Retirement Systems Reciprocal Act. The
15906	15906	7 Retirement Systems Reciprocal Act, Article 20 of this Code, is
15907	15907	8 adopted and made a part of this Article, but only with respect
15908	15908	9 to a person who, on or after the effective date of this
15909	15909	10 amendatory Act of the 103rd General Assembly, is entitled
15910	15910	11 under this Article or through a participating system under the
15911	15911	12 Retirement Systems Reciprocal Act, as defined in Section
15912	15912	13 20-108, to begin receiving a retirement annuity or survivor's
15913	15913	14 annuity (as those terms are defined in Article 20) and who
15914	15914	15 elects to proceed under the Retirement Systems Reciprocal Act.
15915	15915	16 Article 90.
15916	15916	17 Section 90-5. The Illinois Pension Code is amended by
15917	15917	18 changing Sections 2-162, 14-152.1, 15-198, 16-203, and 18-169
15918	15918	19 as follows:
15919	15919	20 (40 ILCS 5/2-162)
15920	15920	21 Sec. 2-162. Application and expiration of new benefit
15921	15921	22 increases.
15922	15922
15923	15923
15924	15924
15925	15925
15926	15926
15927	15927	HB4873 - 444 - LRB103 35886 RPS 65971 b
15928	15928
15929	15929
15930	15930	HB4873- 445 -LRB103 35886 RPS 65971 b HB4873 - 445 - LRB103 35886 RPS 65971 b
15931	15931	HB4873 - 445 - LRB103 35886 RPS 65971 b
15932	15932	1 (a) As used in this Section, "new benefit increase" means
15933	15933	2 an increase in the amount of any benefit provided under this
15934	15934	3 Article, or an expansion of the conditions of eligibility for
15935	15935	4 any benefit under this Article, that results from an amendment
15936	15936	5 to this Code that takes effect after the effective date of this
15937	15937	6 amendatory Act of the 94th General Assembly. "New benefit
15938	15938	7 increase", however, does not include any benefit increase
15939	15939	8 resulting from the changes made to this Article by this
15940	15940	9 amendatory Act of the 103rd General Assembly.
15941	15941	10 (b) Notwithstanding any other provision of this Code or
15942	15942	11 any subsequent amendment to this Code, every new benefit
15943	15943	12 increase is subject to this Section and shall be deemed to be
15944	15944	13 granted only in conformance with and contingent upon
15945	15945	14 compliance with the provisions of this Section.
15946	15946	15 (c) The Public Act enacting a new benefit increase must
15947	15947	16 identify and provide for payment to the System of additional
15948	15948	17 funding at least sufficient to fund the resulting annual
15949	15949	18 increase in cost to the System as it accrues.
15950	15950	19 Every new benefit increase is contingent upon the General
15951	15951	20 Assembly providing the additional funding required under this
15952	15952	21 subsection. The Commission on Government Forecasting and
15953	15953	22 Accountability shall analyze whether adequate additional
15954	15954	23 funding has been provided for the new benefit increase and
15955	15955	24 shall report its analysis to the Public Pension Division of
15956	15956	25 the Department of Insurance. A new benefit increase created by
15957	15957	26 a Public Act that does not include the additional funding
15958	15958
15959	15959
15960	15960
15961	15961
15962	15962
15963	15963	HB4873 - 445 - LRB103 35886 RPS 65971 b
15964	15964
15965	15965
15966	15966	HB4873- 446 -LRB103 35886 RPS 65971 b HB4873 - 446 - LRB103 35886 RPS 65971 b
15967	15967	HB4873 - 446 - LRB103 35886 RPS 65971 b
15968	15968	1 required under this subsection is null and void. If the Public
15969	15969	2 Pension Division determines that the additional funding
15970	15970	3 provided for a new benefit increase under this subsection is
15971	15971	4 or has become inadequate, it may so certify to the Governor and
15972	15972	5 the State Comptroller and, in the absence of corrective action
15973	15973	6 by the General Assembly, the new benefit increase shall expire
15974	15974	7 at the end of the fiscal year in which the certification is
15975	15975	8 made.
15976	15976	9 (d) Every new benefit increase shall expire 5 years after
15977	15977	10 its effective date or on such earlier date as may be specified
15978	15978	11 in the language enacting the new benefit increase or provided
15979	15979	12 under subsection (c). This does not prevent the General
15980	15980	13 Assembly from extending or re-creating a new benefit increase
15981	15981	14 by law.
15982	15982	15 (e) Except as otherwise provided in the language creating
15983	15983	16 the new benefit increase, a new benefit increase that expires
15984	15984	17 under this Section continues to apply to persons who applied
15985	15985	18 and qualified for the affected benefit while the new benefit
15986	15986	19 increase was in effect and to the affected beneficiaries and
15987	15987	20 alternate payees of such persons, but does not apply to any
15988	15988	21 other person, including without limitation a person who
15989	15989	22 continues in service after the expiration date and did not
15990	15990	23 apply and qualify for the affected benefit while the new
15991	15991	24 benefit increase was in effect.
15992	15992	25 (Source: P.A. 103-426, eff. 8-4-23.)
15993	15993
15994	15994
15995	15995
15996	15996
15997	15997
15998	15998	HB4873 - 446 - LRB103 35886 RPS 65971 b
15999	15999
16000	16000
16001	16001	HB4873- 447 -LRB103 35886 RPS 65971 b HB4873 - 447 - LRB103 35886 RPS 65971 b
16002	16002	HB4873 - 447 - LRB103 35886 RPS 65971 b
16003	16003	1 (40 ILCS 5/14-152.1)
16004	16004	2 Sec. 14-152.1. Application and expiration of new benefit
16005	16005	3 increases.
16006	16006	4 (a) As used in this Section, "new benefit increase" means
16007	16007	5 an increase in the amount of any benefit provided under this
16008	16008	6 Article, or an expansion of the conditions of eligibility for
16009	16009	7 any benefit under this Article, that results from an amendment
16010	16010	8 to this Code that takes effect after June 1, 2005 (the
16011	16011	9 effective date of Public Act 94-4). "New benefit increase",
16012	16012	10 however, does not include any benefit increase resulting from
16013	16013	11 the changes made to Article 1 or this Article by Public Act
16014	16014	12 96-37, Public Act 100-23, Public Act 100-587, Public Act
16015	16015	13 100-611, Public Act 101-10, Public Act 101-610, Public Act
16016	16016	14 102-210, Public Act 102-856, Public Act 102-956, or this
16017	16017	15 amendatory Act of the 103rd General Assembly this amendatory
16018	16018	16 Act of the 102nd General Assembly.
16019	16019	17 (b) Notwithstanding any other provision of this Code or
16020	16020	18 any subsequent amendment to this Code, every new benefit
16021	16021	19 increase is subject to this Section and shall be deemed to be
16022	16022	20 granted only in conformance with and contingent upon
16023	16023	21 compliance with the provisions of this Section.
16024	16024	22 (c) The Public Act enacting a new benefit increase must
16025	16025	23 identify and provide for payment to the System of additional
16026	16026	24 funding at least sufficient to fund the resulting annual
16027	16027	25 increase in cost to the System as it accrues.
16028	16028	26 Every new benefit increase is contingent upon the General
16029	16029
16030	16030
16031	16031
16032	16032
16033	16033
16034	16034	HB4873 - 447 - LRB103 35886 RPS 65971 b
16035	16035
16036	16036
16037	16037	HB4873- 448 -LRB103 35886 RPS 65971 b HB4873 - 448 - LRB103 35886 RPS 65971 b
16038	16038	HB4873 - 448 - LRB103 35886 RPS 65971 b
16039	16039	1 Assembly providing the additional funding required under this
16040	16040	2 subsection. The Commission on Government Forecasting and
16041	16041	3 Accountability shall analyze whether adequate additional
16042	16042	4 funding has been provided for the new benefit increase and
16043	16043	5 shall report its analysis to the Public Pension Division of
16044	16044	6 the Department of Insurance. A new benefit increase created by
16045	16045	7 a Public Act that does not include the additional funding
16046	16046	8 required under this subsection is null and void. If the Public
16047	16047	9 Pension Division determines that the additional funding
16048	16048	10 provided for a new benefit increase under this subsection is
16049	16049	11 or has become inadequate, it may so certify to the Governor and
16050	16050	12 the State Comptroller and, in the absence of corrective action
16051	16051	13 by the General Assembly, the new benefit increase shall expire
16052	16052	14 at the end of the fiscal year in which the certification is
16053	16053	15 made.
16054	16054	16 (d) Every new benefit increase shall expire 5 years after
16055	16055	17 its effective date or on such earlier date as may be specified
16056	16056	18 in the language enacting the new benefit increase or provided
16057	16057	19 under subsection (c). This does not prevent the General
16058	16058	20 Assembly from extending or re-creating a new benefit increase
16059	16059	21 by law.
16060	16060	22 (e) Except as otherwise provided in the language creating
16061	16061	23 the new benefit increase, a new benefit increase that expires
16062	16062	24 under this Section continues to apply to persons who applied
16063	16063	25 and qualified for the affected benefit while the new benefit
16064	16064	26 increase was in effect and to the affected beneficiaries and
16065	16065
16066	16066
16067	16067
16068	16068
16069	16069
16070	16070	HB4873 - 448 - LRB103 35886 RPS 65971 b
16071	16071
16072	16072
16073	16073	HB4873- 449 -LRB103 35886 RPS 65971 b HB4873 - 449 - LRB103 35886 RPS 65971 b
16074	16074	HB4873 - 449 - LRB103 35886 RPS 65971 b
16075	16075	1 alternate payees of such persons, but does not apply to any
16076	16076	2 other person, including, without limitation, a person who
16077	16077	3 continues in service after the expiration date and did not
16078	16078	4 apply and qualify for the affected benefit while the new
16079	16079	5 benefit increase was in effect.
16080	16080	6 (Source: P.A. 101-10, eff. 6-5-19; 101-81, eff. 7-12-19;
16081	16081	7 101-610, eff. 1-1-20; 102-210, eff. 7-30-21; 102-856, eff.
16082	16082	8 1-1-23; 102-956, eff. 5-27-22.)
16083	16083	9 (40 ILCS 5/15-198)
16084	16084	10 Sec. 15-198. Application and expiration of new benefit
16085	16085	11 increases.
16086	16086	12 (a) As used in this Section, "new benefit increase" means
16087	16087	13 an increase in the amount of any benefit provided under this
16088	16088	14 Article, or an expansion of the conditions of eligibility for
16089	16089	15 any benefit under this Article, that results from an amendment
16090	16090	16 to this Code that takes effect after June 1, 2005 (the
16091	16091	17 effective date of Public Act 94-4). "New benefit increase",
16092	16092	18 however, does not include any benefit increase resulting from
16093	16093	19 the changes made to Article 1 or this Article by Public Act
16094	16094	20 100-23, Public Act 100-587, Public Act 100-769, Public Act
16095	16095	21 101-10, Public Act 101-610, Public Act 102-16, Public Act
16096	16096	22 103-80, Public Act 103-548, or this amendatory Act of the
16097	16097	23 103rd General Assembly or this amendatory Act of the 103rd
16098	16098	24 General Assembly.
16099	16099	25 (b) Notwithstanding any other provision of this Code or
16100	16100
16101	16101
16102	16102
16103	16103
16104	16104
16105	16105	HB4873 - 449 - LRB103 35886 RPS 65971 b
16106	16106
16107	16107
16108	16108	HB4873- 450 -LRB103 35886 RPS 65971 b HB4873 - 450 - LRB103 35886 RPS 65971 b
16109	16109	HB4873 - 450 - LRB103 35886 RPS 65971 b
16110	16110	1 any subsequent amendment to this Code, every new benefit
16111	16111	2 increase is subject to this Section and shall be deemed to be
16112	16112	3 granted only in conformance with and contingent upon
16113	16113	4 compliance with the provisions of this Section.
16114	16114	5 (c) The Public Act enacting a new benefit increase must
16115	16115	6 identify and provide for payment to the System of additional
16116	16116	7 funding at least sufficient to fund the resulting annual
16117	16117	8 increase in cost to the System as it accrues.
16118	16118	9 Every new benefit increase is contingent upon the General
16119	16119	10 Assembly providing the additional funding required under this
16120	16120	11 subsection. The Commission on Government Forecasting and
16121	16121	12 Accountability shall analyze whether adequate additional
16122	16122	13 funding has been provided for the new benefit increase and
16123	16123	14 shall report its analysis to the Public Pension Division of
16124	16124	15 the Department of Insurance. A new benefit increase created by
16125	16125	16 a Public Act that does not include the additional funding
16126	16126	17 required under this subsection is null and void. If the Public
16127	16127	18 Pension Division determines that the additional funding
16128	16128	19 provided for a new benefit increase under this subsection is
16129	16129	20 or has become inadequate, it may so certify to the Governor and
16130	16130	21 the State Comptroller and, in the absence of corrective action
16131	16131	22 by the General Assembly, the new benefit increase shall expire
16132	16132	23 at the end of the fiscal year in which the certification is
16133	16133	24 made.
16134	16134	25 (d) Every new benefit increase shall expire 5 years after
16135	16135	26 its effective date or on such earlier date as may be specified
16136	16136
16137	16137
16138	16138
16139	16139
16140	16140
16141	16141	HB4873 - 450 - LRB103 35886 RPS 65971 b
16142	16142
16143	16143
16144	16144	HB4873- 451 -LRB103 35886 RPS 65971 b HB4873 - 451 - LRB103 35886 RPS 65971 b
16145	16145	HB4873 - 451 - LRB103 35886 RPS 65971 b
16146	16146	1 in the language enacting the new benefit increase or provided
16147	16147	2 under subsection (c). This does not prevent the General
16148	16148	3 Assembly from extending or re-creating a new benefit increase
16149	16149	4 by law.
16150	16150	5 (e) Except as otherwise provided in the language creating
16151	16151	6 the new benefit increase, a new benefit increase that expires
16152	16152	7 under this Section continues to apply to persons who applied
16153	16153	8 and qualified for the affected benefit while the new benefit
16154	16154	9 increase was in effect and to the affected beneficiaries and
16155	16155	10 alternate payees of such persons, but does not apply to any
16156	16156	11 other person, including, without limitation, a person who
16157	16157	12 continues in service after the expiration date and did not
16158	16158	13 apply and qualify for the affected benefit while the new
16159	16159	14 benefit increase was in effect.
16160	16160	15 (Source: P.A. 102-16, eff. 6-17-21; 103-80, eff. 6-9-23;
16161	16161	16 103-548, eff. 8-11-23; revised 8-31-23.)
16162	16162	17 (40 ILCS 5/16-203)
16163	16163	18 Sec. 16-203. Application and expiration of new benefit
16164	16164	19 increases.
16165	16165	20 (a) As used in this Section, "new benefit increase" means
16166	16166	21 an increase in the amount of any benefit provided under this
16167	16167	22 Article, or an expansion of the conditions of eligibility for
16168	16168	23 any benefit under this Article, that results from an amendment
16169	16169	24 to this Code that takes effect after June 1, 2005 (the
16170	16170	25 effective date of Public Act 94-4). "New benefit increase",
16171	16171
16172	16172
16173	16173
16174	16174
16175	16175
16176	16176	HB4873 - 451 - LRB103 35886 RPS 65971 b
16177	16177
16178	16178
16179	16179	HB4873- 452 -LRB103 35886 RPS 65971 b HB4873 - 452 - LRB103 35886 RPS 65971 b
16180	16180	HB4873 - 452 - LRB103 35886 RPS 65971 b
16181	16181	1 however, does not include any benefit increase resulting from
16182	16182	2 the changes made to Article 1 or this Article by Public Act
16183	16183	3 95-910, Public Act 100-23, Public Act 100-587, Public Act
16184	16184	4 100-743, Public Act 100-769, Public Act 101-10, Public Act
16185	16185	5 101-49, Public Act 102-16, or Public Act 102-871, or this
16186	16186	6 amendatory Act of the 103rd General Assembly.
16187	16187	7 (b) Notwithstanding any other provision of this Code or
16188	16188	8 any subsequent amendment to this Code, every new benefit
16189	16189	9 increase is subject to this Section and shall be deemed to be
16190	16190	10 granted only in conformance with and contingent upon
16191	16191	11 compliance with the provisions of this Section.
16192	16192	12 (c) The Public Act enacting a new benefit increase must
16193	16193	13 identify and provide for payment to the System of additional
16194	16194	14 funding at least sufficient to fund the resulting annual
16195	16195	15 increase in cost to the System as it accrues.
16196	16196	16 Every new benefit increase is contingent upon the General
16197	16197	17 Assembly providing the additional funding required under this
16198	16198	18 subsection. The Commission on Government Forecasting and
16199	16199	19 Accountability shall analyze whether adequate additional
16200	16200	20 funding has been provided for the new benefit increase and
16201	16201	21 shall report its analysis to the Public Pension Division of
16202	16202	22 the Department of Insurance. A new benefit increase created by
16203	16203	23 a Public Act that does not include the additional funding
16204	16204	24 required under this subsection is null and void. If the Public
16205	16205	25 Pension Division determines that the additional funding
16206	16206	26 provided for a new benefit increase under this subsection is
16207	16207
16208	16208
16209	16209
16210	16210
16211	16211
16212	16212	HB4873 - 452 - LRB103 35886 RPS 65971 b
16213	16213
16214	16214
16215	16215	HB4873- 453 -LRB103 35886 RPS 65971 b HB4873 - 453 - LRB103 35886 RPS 65971 b
16216	16216	HB4873 - 453 - LRB103 35886 RPS 65971 b
16217	16217	1 or has become inadequate, it may so certify to the Governor and
16218	16218	2 the State Comptroller and, in the absence of corrective action
16219	16219	3 by the General Assembly, the new benefit increase shall expire
16220	16220	4 at the end of the fiscal year in which the certification is
16221	16221	5 made.
16222	16222	6 (d) Every new benefit increase shall expire 5 years after
16223	16223	7 its effective date or on such earlier date as may be specified
16224	16224	8 in the language enacting the new benefit increase or provided
16225	16225	9 under subsection (c). This does not prevent the General
16226	16226	10 Assembly from extending or re-creating a new benefit increase
16227	16227	11 by law.
16228	16228	12 (e) Except as otherwise provided in the language creating
16229	16229	13 the new benefit increase, a new benefit increase that expires
16230	16230	14 under this Section continues to apply to persons who applied
16231	16231	15 and qualified for the affected benefit while the new benefit
16232	16232	16 increase was in effect and to the affected beneficiaries and
16233	16233	17 alternate payees of such persons, but does not apply to any
16234	16234	18 other person, including, without limitation, a person who
16235	16235	19 continues in service after the expiration date and did not
16236	16236	20 apply and qualify for the affected benefit while the new
16237	16237	21 benefit increase was in effect.
16238	16238	22 (Source: P.A. 102-16, eff. 6-17-21; 102-558, eff. 8-20-21;
16239	16239	23 102-813, eff. 5-13-22; 102-871, eff. 5-13-22; 103-154, eff.
16240	16240	24 6-30-23.)
16241	16241	25 (40 ILCS 5/18-169)
16242	16242
16243	16243
16244	16244
16245	16245
16246	16246
16247	16247	HB4873 - 453 - LRB103 35886 RPS 65971 b
16248	16248
16249	16249
16250	16250	HB4873- 454 -LRB103 35886 RPS 65971 b HB4873 - 454 - LRB103 35886 RPS 65971 b
16251	16251	HB4873 - 454 - LRB103 35886 RPS 65971 b
16252	16252	1 Sec. 18-169. Application and expiration of new benefit
16253	16253	2 increases.
16254	16254	3 (a) As used in this Section, "new benefit increase" means
16255	16255	4 an increase in the amount of any benefit provided under this
16256	16256	5 Article, or an expansion of the conditions of eligibility for
16257	16257	6 any benefit under this Article, that results from an amendment
16258	16258	7 to this Code that takes effect after the effective date of this
16259	16259	8 amendatory Act of the 94th General Assembly. "New benefit
16260	16260	9 increase", however, does not include any benefit increase
16261	16261	10 resulting from the changes made to this Article by this
16262	16262	11 amendatory Act of the 103rd General Assembly.
16263	16263	12 (b) Notwithstanding any other provision of this Code or
16264	16264	13 any subsequent amendment to this Code, every new benefit
16265	16265	14 increase is subject to this Section and shall be deemed to be
16266	16266	15 granted only in conformance with and contingent upon
16267	16267	16 compliance with the provisions of this Section.
16268	16268	17 (c) The Public Act enacting a new benefit increase must
16269	16269	18 identify and provide for payment to the System of additional
16270	16270	19 funding at least sufficient to fund the resulting annual
16271	16271	20 increase in cost to the System as it accrues.
16272	16272	21 Every new benefit increase is contingent upon the General
16273	16273	22 Assembly providing the additional funding required under this
16274	16274	23 subsection. The Commission on Government Forecasting and
16275	16275	24 Accountability shall analyze whether adequate additional
16276	16276	25 funding has been provided for the new benefit increase and
16277	16277	26 shall report its analysis to the Public Pension Division of
16278	16278
16279	16279
16280	16280
16281	16281
16282	16282
16283	16283	HB4873 - 454 - LRB103 35886 RPS 65971 b
16284	16284
16285	16285
16286	16286	HB4873- 455 -LRB103 35886 RPS 65971 b HB4873 - 455 - LRB103 35886 RPS 65971 b
16287	16287	HB4873 - 455 - LRB103 35886 RPS 65971 b
16288	16288	1 the Department of Insurance. A new benefit increase created by
16289	16289	2 a Public Act that does not include the additional funding
16290	16290	3 required under this subsection is null and void. If the Public
16291	16291	4 Pension Division determines that the additional funding
16292	16292	5 provided for a new benefit increase under this subsection is
16293	16293	6 or has become inadequate, it may so certify to the Governor and
16294	16294	7 the State Comptroller and, in the absence of corrective action
16295	16295	8 by the General Assembly, the new benefit increase shall expire
16296	16296	9 at the end of the fiscal year in which the certification is
16297	16297	10 made.
16298	16298	11 (d) Every new benefit increase shall expire 5 years after
16299	16299	12 its effective date or on such earlier date as may be specified
16300	16300	13 in the language enacting the new benefit increase or provided
16301	16301	14 under subsection (c). This does not prevent the General
16302	16302	15 Assembly from extending or re-creating a new benefit increase
16303	16303	16 by law.
16304	16304	17 (e) Except as otherwise provided in the language creating
16305	16305	18 the new benefit increase, a new benefit increase that expires
16306	16306	19 under this Section continues to apply to persons who applied
16307	16307	20 and qualified for the affected benefit while the new benefit
16308	16308	21 increase was in effect and to the affected beneficiaries and
16309	16309	22 alternate payees of such persons, but does not apply to any
16310	16310	23 other person, including without limitation a person who
16311	16311	24 continues in service after the expiration date and did not
16312	16312	25 apply and qualify for the affected benefit while the new
16313	16313	26 benefit increase was in effect.
16314	16314
16315	16315
16316	16316
16317	16317
16318	16318
16319	16319	HB4873 - 455 - LRB103 35886 RPS 65971 b
16320	16320
16321	16321
16322	16322	HB4873- 456 -LRB103 35886 RPS 65971 b HB4873 - 456 - LRB103 35886 RPS 65971 b
16323	16323	HB4873 - 456 - LRB103 35886 RPS 65971 b
16324	16324	1 (Source: P.A. 103-426, eff. 8-4-23.)
16325	16325	2 Section 90-90. The State Mandates Act is amended by adding
16326	16326	3 Section 8.48 as follows:
16327	16327	4 (30 ILCS 805/8.48 new)
16328	16328	5 Sec. 8.48. Exempt mandate. Notwithstanding Sections 6 and
16329	16329	6 8 of this Act, no reimbursement by the State is required for
16330	16330	7 the implementation of any mandate created by this amendatory
16331	16331	8 Act of the 103rd General Assembly.
16332	16332	9 Article 99.
16333	16333	10 Section 99-99. Effective date. This Act takes effect July
16334	16334	11 1, 2025.
16335	16335	HB4873- 457 -LRB103 35886 RPS 65971 b 1 INDEX 2 Statutes amended in order of appearance 3 40 ILCS 5/1-1604 40 ILCS 5/2-108.1from Ch. 108 1/2, par. 2-108.15 40 ILCS 5/2-119.1from Ch. 108 1/2, par. 2-119.16 40 ILCS 5/14-103.10from Ch. 108 1/2, par. 14-103.107 40 ILCS 5/15-111from Ch. 108 1/2, par. 15-1118 40 ILCS 5/18-125from Ch. 108 1/2, par. 18-1259 40 ILCS 5/18-128.01from Ch. 108 1/2, par. 18-128.0110 40 ILCS 5/1-16011 40 ILCS 5/2-119.1from Ch. 108 1/2, par. 2-119.112 40 ILCS 5/15-136from Ch. 108 1/2, par. 15-13613 40 ILCS 5/18-125.1from Ch. 108 1/2, par. 18-125.114 5 ILCS 100/5-45.55 new15 40 ILCS 5/2-154.5 new16 40 ILCS 5/2-154.6 new17 40 ILCS 5/17-156.10 new18 40 ILCS 5/17-156.11 new19 40 ILCS 5/18-161.5 new20 40 ILCS 5/18-161.6 new21 40 ILCS 5/1-168 new22 40 ILCS 5/3-118 new23 40 ILCS 5/4-136 new24 40 ILCS 5/7-142.2 new25 30 ILCS 330/7.2 HB4873- 458 -LRB103 35886 RPS 65971 b 1 30 ILCS 330/7.62 30 ILCS 105/8s new3 40 ILCS 5/2-101from Ch. 108 1/2, par. 2-1014 40 ILCS 5/2-105from Ch. 108 1/2, par. 2-1055 40 ILCS 5/2-107from Ch. 108 1/2, par. 2-1076 40 ILCS 5/2-117from Ch. 108 1/2, par. 2-1177 40 ILCS 5/14-103.05from Ch. 108 1/2, par. 14-103.058 40 ILCS 5/14-104from Ch. 108 1/2, par. 14-1049 40 ILCS 5/14-104.14 new10 40 ILCS 5/14-105.4from Ch. 108 1/2, par. 14-105.411 40 ILCS 5/18-101from Ch. 108 1/2, par. 18-10112 40 ILCS 5/18-108from Ch. 108 1/2, par. 18-10813 40 ILCS 5/18-109from Ch. 108 1/2, par. 18-10914 40 ILCS 5/18-110from Ch. 108 1/2, par. 18-11015 40 ILCS 5/18-120from Ch. 108 1/2, par. 18-12016 40 ILCS 5/1-16017 40 ILCS 5/15-135from Ch. 108 1/2, par. 15-13518 40 ILCS 5/1-16019 40 ILCS 5/15-108.220 40 ILCS 5/15-155from Ch. 108 1/2, par. 15-15521 40 ILCS 5/16-158.322 40 ILCS 5/1-161 rep.23 40 ILCS 5/1-162 rep.24 40 ILCS 5/15-155.2 rep.25 40 ILCS 5/1-16026 40 ILCS 5/14-110from Ch. 108 1/2, par. 14-110 HB4873- 459 -LRB103 35886 RPS 65971 b HB4873- 457 -LRB103 35886 RPS 65971 b HB4873 - 457 - LRB103 35886 RPS 65971 b 1 INDEX 2 Statutes amended in order of appearance 3 40 ILCS 5/1-160 4 40 ILCS 5/2-108.1 from Ch. 108 1/2, par. 2-108.1 5 40 ILCS 5/2-119.1 from Ch. 108 1/2, par. 2-119.1 6 40 ILCS 5/14-103.10 from Ch. 108 1/2, par. 14-103.10 7 40 ILCS 5/15-111 from Ch. 108 1/2, par. 15-111 8 40 ILCS 5/18-125 from Ch. 108 1/2, par. 18-125 9 40 ILCS 5/18-128.01 from Ch. 108 1/2, par. 18-128.01 10 40 ILCS 5/1-160 11 40 ILCS 5/2-119.1 from Ch. 108 1/2, par. 2-119.1 12 40 ILCS 5/15-136 from Ch. 108 1/2, par. 15-136 13 40 ILCS 5/18-125.1 from Ch. 108 1/2, par. 18-125.1 14 5 ILCS 100/5-45.55 new 15 40 ILCS 5/2-154.5 new 16 40 ILCS 5/2-154.6 new 17 40 ILCS 5/17-156.10 new 18 40 ILCS 5/17-156.11 new 19 40 ILCS 5/18-161.5 new 20 40 ILCS 5/18-161.6 new 21 40 ILCS 5/1-168 new 22 40 ILCS 5/3-118 new 23 40 ILCS 5/4-136 new 24 40 ILCS 5/7-142.2 new 25 30 ILCS 330/7.2 HB4873- 458 -LRB103 35886 RPS 65971 b HB4873 - 458 - LRB103 35886 RPS 65971 b 1 30 ILCS 330/7.6 2 30 ILCS 105/8s new 3 40 ILCS 5/2-101 from Ch. 108 1/2, par. 2-101 4 40 ILCS 5/2-105 from Ch. 108 1/2, par. 2-105 5 40 ILCS 5/2-107 from Ch. 108 1/2, par. 2-107 6 40 ILCS 5/2-117 from Ch. 108 1/2, par. 2-117 7 40 ILCS 5/14-103.05 from Ch. 108 1/2, par. 14-103.05 8 40 ILCS 5/14-104 from Ch. 108 1/2, par. 14-104 9 40 ILCS 5/14-104.14 new 10 40 ILCS 5/14-105.4 from Ch. 108 1/2, par. 14-105.4 11 40 ILCS 5/18-101 from Ch. 108 1/2, par. 18-101 12 40 ILCS 5/18-108 from Ch. 108 1/2, par. 18-108 13 40 ILCS 5/18-109 from Ch. 108 1/2, par. 18-109 14 40 ILCS 5/18-110 from Ch. 108 1/2, par. 18-110 15 40 ILCS 5/18-120 from Ch. 108 1/2, par. 18-120 16 40 ILCS 5/1-160 17 40 ILCS 5/15-135 from Ch. 108 1/2, par. 15-135 18 40 ILCS 5/1-160 19 40 ILCS 5/15-108.2 20 40 ILCS 5/15-155 from Ch. 108 1/2, par. 15-155 21 40 ILCS 5/16-158.3 22 40 ILCS 5/1-161 rep. 23 40 ILCS 5/1-162 rep. 24 40 ILCS 5/15-155.2 rep. 25 40 ILCS 5/1-160 26 40 ILCS 5/14-110 from Ch. 108 1/2, par. 14-110 HB4873- 459 -LRB103 35886 RPS 65971 b HB4873 - 459 - LRB103 35886 RPS 65971 b
16336	16336	HB4873- 457 -LRB103 35886 RPS 65971 b HB4873 - 457 - LRB103 35886 RPS 65971 b
16337	16337	HB4873 - 457 - LRB103 35886 RPS 65971 b
16338	16338	1 INDEX
16339	16339	2 Statutes amended in order of appearance
16340	16340	3 40 ILCS 5/1-160
16341	16341	4 40 ILCS 5/2-108.1 from Ch. 108 1/2, par. 2-108.1
16342	16342	5 40 ILCS 5/2-119.1 from Ch. 108 1/2, par. 2-119.1
16343	16343	6 40 ILCS 5/14-103.10 from Ch. 108 1/2, par. 14-103.10
16344	16344	7 40 ILCS 5/15-111 from Ch. 108 1/2, par. 15-111
16345	16345	8 40 ILCS 5/18-125 from Ch. 108 1/2, par. 18-125
16346	16346	9 40 ILCS 5/18-128.01 from Ch. 108 1/2, par. 18-128.01
16347	16347	10 40 ILCS 5/1-160
16348	16348	11 40 ILCS 5/2-119.1 from Ch. 108 1/2, par. 2-119.1
16349	16349	12 40 ILCS 5/15-136 from Ch. 108 1/2, par. 15-136
16350	16350	13 40 ILCS 5/18-125.1 from Ch. 108 1/2, par. 18-125.1
16351	16351	14 5 ILCS 100/5-45.55 new
16352	16352	15 40 ILCS 5/2-154.5 new
16353	16353	16 40 ILCS 5/2-154.6 new
16354	16354	17 40 ILCS 5/17-156.10 new
16355	16355	18 40 ILCS 5/17-156.11 new
16356	16356	19 40 ILCS 5/18-161.5 new
16357	16357	20 40 ILCS 5/18-161.6 new
16358	16358	21 40 ILCS 5/1-168 new
16359	16359	22 40 ILCS 5/3-118 new
16360	16360	23 40 ILCS 5/4-136 new
16361	16361	24 40 ILCS 5/7-142.2 new
16362	16362	25 30 ILCS 330/7.2
16363	16363	HB4873- 458 -LRB103 35886 RPS 65971 b HB4873 - 458 - LRB103 35886 RPS 65971 b
16364	16364	HB4873 - 458 - LRB103 35886 RPS 65971 b
16365	16365	1 30 ILCS 330/7.6
16366	16366	2 30 ILCS 105/8s new
16367	16367	3 40 ILCS 5/2-101 from Ch. 108 1/2, par. 2-101
16368	16368	4 40 ILCS 5/2-105 from Ch. 108 1/2, par. 2-105
16369	16369	5 40 ILCS 5/2-107 from Ch. 108 1/2, par. 2-107
16370	16370	6 40 ILCS 5/2-117 from Ch. 108 1/2, par. 2-117
16371	16371	7 40 ILCS 5/14-103.05 from Ch. 108 1/2, par. 14-103.05
16372	16372	8 40 ILCS 5/14-104 from Ch. 108 1/2, par. 14-104
16373	16373	9 40 ILCS 5/14-104.14 new
16374	16374	10 40 ILCS 5/14-105.4 from Ch. 108 1/2, par. 14-105.4
16375	16375	11 40 ILCS 5/18-101 from Ch. 108 1/2, par. 18-101
16376	16376	12 40 ILCS 5/18-108 from Ch. 108 1/2, par. 18-108
16377	16377	13 40 ILCS 5/18-109 from Ch. 108 1/2, par. 18-109
16378	16378	14 40 ILCS 5/18-110 from Ch. 108 1/2, par. 18-110
16379	16379	15 40 ILCS 5/18-120 from Ch. 108 1/2, par. 18-120
16380	16380	16 40 ILCS 5/1-160
16381	16381	17 40 ILCS 5/15-135 from Ch. 108 1/2, par. 15-135
16382	16382	18 40 ILCS 5/1-160
16383	16383	19 40 ILCS 5/15-108.2
16384	16384	20 40 ILCS 5/15-155 from Ch. 108 1/2, par. 15-155
16385	16385	21 40 ILCS 5/16-158.3
16386	16386	22 40 ILCS 5/1-161 rep.
16387	16387	23 40 ILCS 5/1-162 rep.
16388	16388	24 40 ILCS 5/15-155.2 rep.
16389	16389	25 40 ILCS 5/1-160
16390	16390	26 40 ILCS 5/14-110 from Ch. 108 1/2, par. 14-110
16391	16391	HB4873- 459 -LRB103 35886 RPS 65971 b HB4873 - 459 - LRB103 35886 RPS 65971 b
16392	16392	HB4873 - 459 - LRB103 35886 RPS 65971 b
16393	16393
16394	16394
16395	16395
16396	16396
16397	16397
16398	16398	HB4873 - 456 - LRB103 35886 RPS 65971 b
16399	16399
16400	16400
16401	16401
16402	16402	HB4873- 457 -LRB103 35886 RPS 65971 b HB4873 - 457 - LRB103 35886 RPS 65971 b
16403	16403	HB4873 - 457 - LRB103 35886 RPS 65971 b
16404	16404	1 INDEX
16405	16405	2 Statutes amended in order of appearance
16406	16406	3 40 ILCS 5/1-160
16407	16407	4 40 ILCS 5/2-108.1 from Ch. 108 1/2, par. 2-108.1
16408	16408	5 40 ILCS 5/2-119.1 from Ch. 108 1/2, par. 2-119.1
16409	16409	6 40 ILCS 5/14-103.10 from Ch. 108 1/2, par. 14-103.10
16410	16410	7 40 ILCS 5/15-111 from Ch. 108 1/2, par. 15-111
16411	16411	8 40 ILCS 5/18-125 from Ch. 108 1/2, par. 18-125
16412	16412	9 40 ILCS 5/18-128.01 from Ch. 108 1/2, par. 18-128.01
16413	16413	10 40 ILCS 5/1-160
16414	16414	11 40 ILCS 5/2-119.1 from Ch. 108 1/2, par. 2-119.1
16415	16415	12 40 ILCS 5/15-136 from Ch. 108 1/2, par. 15-136
16416	16416	13 40 ILCS 5/18-125.1 from Ch. 108 1/2, par. 18-125.1
16417	16417	14 5 ILCS 100/5-45.55 new
16418	16418	15 40 ILCS 5/2-154.5 new
16419	16419	16 40 ILCS 5/2-154.6 new
16420	16420	17 40 ILCS 5/17-156.10 new
16421	16421	18 40 ILCS 5/17-156.11 new
16422	16422	19 40 ILCS 5/18-161.5 new
16423	16423	20 40 ILCS 5/18-161.6 new
16424	16424	21 40 ILCS 5/1-168 new
16425	16425	22 40 ILCS 5/3-118 new
16426	16426	23 40 ILCS 5/4-136 new
16427	16427	24 40 ILCS 5/7-142.2 new
16428	16428	25 30 ILCS 330/7.2
16429	16429
16430	16430
16431	16431
16432	16432
16433	16433
16434	16434	HB4873 - 457 - LRB103 35886 RPS 65971 b
16435	16435
16436	16436
16437	16437	HB4873- 458 -LRB103 35886 RPS 65971 b HB4873 - 458 - LRB103 35886 RPS 65971 b
16438	16438	HB4873 - 458 - LRB103 35886 RPS 65971 b
16439	16439	1 30 ILCS 330/7.6
16440	16440	2 30 ILCS 105/8s new
16441	16441	3 40 ILCS 5/2-101 from Ch. 108 1/2, par. 2-101
16442	16442	4 40 ILCS 5/2-105 from Ch. 108 1/2, par. 2-105
16443	16443	5 40 ILCS 5/2-107 from Ch. 108 1/2, par. 2-107
16444	16444	6 40 ILCS 5/2-117 from Ch. 108 1/2, par. 2-117
16445	16445	7 40 ILCS 5/14-103.05 from Ch. 108 1/2, par. 14-103.05
16446	16446	8 40 ILCS 5/14-104 from Ch. 108 1/2, par. 14-104
16447	16447	9 40 ILCS 5/14-104.14 new
16448	16448	10 40 ILCS 5/14-105.4 from Ch. 108 1/2, par. 14-105.4
16449	16449	11 40 ILCS 5/18-101 from Ch. 108 1/2, par. 18-101
16450	16450	12 40 ILCS 5/18-108 from Ch. 108 1/2, par. 18-108
16451	16451	13 40 ILCS 5/18-109 from Ch. 108 1/2, par. 18-109
16452	16452	14 40 ILCS 5/18-110 from Ch. 108 1/2, par. 18-110
16453	16453	15 40 ILCS 5/18-120 from Ch. 108 1/2, par. 18-120
16454	16454	16 40 ILCS 5/1-160
16455	16455	17 40 ILCS 5/15-135 from Ch. 108 1/2, par. 15-135
16456	16456	18 40 ILCS 5/1-160
16457	16457	19 40 ILCS 5/15-108.2
16458	16458	20 40 ILCS 5/15-155 from Ch. 108 1/2, par. 15-155
16459	16459	21 40 ILCS 5/16-158.3
16460	16460	22 40 ILCS 5/1-161 rep.
16461	16461	23 40 ILCS 5/1-162 rep.
16462	16462	24 40 ILCS 5/15-155.2 rep.
16463	16463	25 40 ILCS 5/1-160
16464	16464	26 40 ILCS 5/14-110 from Ch. 108 1/2, par. 14-110
16465	16465
16466	16466
16467	16467
16468	16468
16469	16469
16470	16470	HB4873 - 458 - LRB103 35886 RPS 65971 b
16471	16471
16472	16472
16473	16473	HB4873- 459 -LRB103 35886 RPS 65971 b HB4873 - 459 - LRB103 35886 RPS 65971 b
16474	16474	HB4873 - 459 - LRB103 35886 RPS 65971 b
16475	16475
16476	16476
16477	16477
16478	16478
16479	16479
16480	16480	HB4873 - 459 - LRB103 35886 RPS 65971 b