Illinois 2023-2024 Regular Session

Illinois Senate Bill SB1690 Compare Versions

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

Old	New	Differences
1	1	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB1690 Introduced 2/8/2023, by Sen. Robert F. Martwick SYNOPSIS AS INTRODUCED: See Index Amends the Illinois Pension Code. In the General Provisions Article, provides that beginning on January 1, 2024, the annual earnings, salary, or wages of a Tier 2 participant under the Cook County Article shall track with the Social Security wage base (rather than shall not exceed $106,800, adjusted annually). Makes conforming changes in the Cook County Article and provides that the county's contribution shall be paid through a tax levy and any other lawfully available funds. Provides that beginning on January 1, 2025, the Fund shall not use contributions received by the Fund for subsidy for an annuitant health care program. Deletes a restrictive date in a provision concerning establishing credit for military service. Beginning on December 1, 2023, provides that the president of the county shall appoint 2 additional members to the board of trustees. Requires the retirement board to retain an actuary who is a member in good standing of the American Academy of Actuaries to produce an annual actuarial report of the Fund and provides criteria for the report. Provides that the annual audit required of the Fund may include the preparation of the annual actuarial report. Provides that the annual report submitted to the county board shall include the annual actuarial report. Requires that the minimum required employer contribution shall be submitted annually by the county and provides the method of determining the minimum required employer contribution. Provides that the Fund shall (rather than may) pay for an annuitant health care program administered by the Fund (rather than any of the county's health care plans). Makes other changes. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately. LRB103 26358 RPS 52719 b STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB1690 Introduced 2/8/2023, by Sen. Robert F. Martwick SYNOPSIS AS INTRODUCED: See Index See Index Amends the Illinois Pension Code. In the General Provisions Article, provides that beginning on January 1, 2024, the annual earnings, salary, or wages of a Tier 2 participant under the Cook County Article shall track with the Social Security wage base (rather than shall not exceed $106,800, adjusted annually). Makes conforming changes in the Cook County Article and provides that the county's contribution shall be paid through a tax levy and any other lawfully available funds. Provides that beginning on January 1, 2025, the Fund shall not use contributions received by the Fund for subsidy for an annuitant health care program. Deletes a restrictive date in a provision concerning establishing credit for military service. Beginning on December 1, 2023, provides that the president of the county shall appoint 2 additional members to the board of trustees. Requires the retirement board to retain an actuary who is a member in good standing of the American Academy of Actuaries to produce an annual actuarial report of the Fund and provides criteria for the report. Provides that the annual audit required of the Fund may include the preparation of the annual actuarial report. Provides that the annual report submitted to the county board shall include the annual actuarial report. Requires that the minimum required employer contribution shall be submitted annually by the county and provides the method of determining the minimum required employer contribution. Provides that the Fund shall (rather than may) pay for an annuitant health care program administered by the Fund (rather than any of the county's health care plans). Makes other changes. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately. LRB103 26358 RPS 52719 b LRB103 26358 RPS 52719 b STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY A BILL FOR
2	2	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB1690 Introduced 2/8/2023, by Sen. Robert F. Martwick SYNOPSIS AS INTRODUCED:
3	3	See Index See Index
4	4	See Index
5	5	Amends the Illinois Pension Code. In the General Provisions Article, provides that beginning on January 1, 2024, the annual earnings, salary, or wages of a Tier 2 participant under the Cook County Article shall track with the Social Security wage base (rather than shall not exceed $106,800, adjusted annually). Makes conforming changes in the Cook County Article and provides that the county's contribution shall be paid through a tax levy and any other lawfully available funds. Provides that beginning on January 1, 2025, the Fund shall not use contributions received by the Fund for subsidy for an annuitant health care program. Deletes a restrictive date in a provision concerning establishing credit for military service. Beginning on December 1, 2023, provides that the president of the county shall appoint 2 additional members to the board of trustees. Requires the retirement board to retain an actuary who is a member in good standing of the American Academy of Actuaries to produce an annual actuarial report of the Fund and provides criteria for the report. Provides that the annual audit required of the Fund may include the preparation of the annual actuarial report. Provides that the annual report submitted to the county board shall include the annual actuarial report. Requires that the minimum required employer contribution shall be submitted annually by the county and provides the method of determining the minimum required employer contribution. Provides that the Fund shall (rather than may) pay for an annuitant health care program administered by the Fund (rather than any of the county's health care plans). Makes other changes. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.
6	6	LRB103 26358 RPS 52719 b LRB103 26358 RPS 52719 b
7	7	LRB103 26358 RPS 52719 b
8	8	STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY
9	9	STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY
10	10	A BILL FOR
11	11	SB1690LRB103 26358 RPS 52719 b SB1690 LRB103 26358 RPS 52719 b
12	12	SB1690 LRB103 26358 RPS 52719 b
13	13	1 AN ACT concerning public employee benefits.
14	14	2 Be it enacted by the People of the State of Illinois,
15	15	3 represented in the General Assembly:
16	16	4 Section 5. The Illinois Pension Code is amended by
17	17	5 changing Sections 1-160, 9-169, 9-179.1, 9-184, 9-185, 9-195,
18	18	6 9-199, and 9-239 and by adding Sections 9-169.1 and 9-169.2 as
19	19	7 follows:
20	20	8 (40 ILCS 5/1-160)
21	21	9 (Text of Section from P.A. 102-719)
22	22	10 Sec. 1-160. Provisions applicable to new hires.
23	23	11 (a) The provisions of this Section apply to a person who,
24	24	12 on or after January 1, 2011, first becomes a member or a
25	25	13 participant under any reciprocal retirement system or pension
26	26	14 fund established under this Code, other than a retirement
27	27	15 system or pension fund established under Article 2, 3, 4, 5, 6,
28	28	16 7, 15, or 18 of this Code, notwithstanding any other provision
29	29	17 of this Code to the contrary, but do not apply to any
30	30	18 self-managed plan established under this Code or to any
31	31	19 participant of the retirement plan established under Section
32	32	20 22-101; except that this Section applies to a person who
33	33	21 elected to establish alternative credits by electing in
34	34	22 writing after January 1, 2011, but before August 8, 2011,
35	35	23 under Section 7-145.1 of this Code. Notwithstanding anything
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39	39	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB1690 Introduced 2/8/2023, by Sen. Robert F. Martwick SYNOPSIS AS INTRODUCED:
40	40	See Index See Index
41	41	See Index
42	42	Amends the Illinois Pension Code. In the General Provisions Article, provides that beginning on January 1, 2024, the annual earnings, salary, or wages of a Tier 2 participant under the Cook County Article shall track with the Social Security wage base (rather than shall not exceed $106,800, adjusted annually). Makes conforming changes in the Cook County Article and provides that the county's contribution shall be paid through a tax levy and any other lawfully available funds. Provides that beginning on January 1, 2025, the Fund shall not use contributions received by the Fund for subsidy for an annuitant health care program. Deletes a restrictive date in a provision concerning establishing credit for military service. Beginning on December 1, 2023, provides that the president of the county shall appoint 2 additional members to the board of trustees. Requires the retirement board to retain an actuary who is a member in good standing of the American Academy of Actuaries to produce an annual actuarial report of the Fund and provides criteria for the report. Provides that the annual audit required of the Fund may include the preparation of the annual actuarial report. Provides that the annual report submitted to the county board shall include the annual actuarial report. Requires that the minimum required employer contribution shall be submitted annually by the county and provides the method of determining the minimum required employer contribution. Provides that the Fund shall (rather than may) pay for an annuitant health care program administered by the Fund (rather than any of the county's health care plans). Makes other changes. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.
43	43	LRB103 26358 RPS 52719 b LRB103 26358 RPS 52719 b
44	44	LRB103 26358 RPS 52719 b
45	45	STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY
46	46	STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY
47	47	A BILL FOR
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53	53	See Index
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59	59	STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY
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76	76	1 to the contrary in this Section, for purposes of this Section,
77	77	2 a person who is a Tier 1 regular employee as defined in Section
78	78	3 7-109.4 of this Code or who participated in a retirement
79	79	4 system under Article 15 prior to January 1, 2011 shall be
80	80	5 deemed a person who first became a member or participant prior
81	81	6 to January 1, 2011 under any retirement system or pension fund
82	82	7 subject to this Section. The changes made to this Section by
83	83	8 Public Act 98-596 are a clarification of existing law and are
84	84	9 intended to be retroactive to January 1, 2011 (the effective
85	85	10 date of Public Act 96-889), notwithstanding the provisions of
86	86	11 Section 1-103.1 of this Code.
87	87	12 This Section does not apply to a person who first becomes a
88	88	13 noncovered employee under Article 14 on or after the
89	89	14 implementation date of the plan created under Section 1-161
90	90	15 for that Article, unless that person elects under subsection
91	91	16 (b) of Section 1-161 to instead receive the benefits provided
92	92	17 under this Section and the applicable provisions of that
93	93	18 Article.
94	94	19 This Section does not apply to a person who first becomes a
95	95	20 member or participant under Article 16 on or after the
96	96	21 implementation date of the plan created under Section 1-161
97	97	22 for that Article, unless that person elects under subsection
98	98	23 (b) of Section 1-161 to instead receive the benefits provided
99	99	24 under this Section and the applicable provisions of that
100	100	25 Article.
101	101	26 This Section does not apply to a person who elects under
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112	112	1 subsection (c-5) of Section 1-161 to receive the benefits
113	113	2 under Section 1-161.
114	114	3 This Section does not apply to a person who first becomes a
115	115	4 member or participant of an affected pension fund on or after 6
116	116	5 months after the resolution or ordinance date, as defined in
117	117	6 Section 1-162, unless that person elects under subsection (c)
118	118	7 of Section 1-162 to receive the benefits provided under this
119	119	8 Section and the applicable provisions of the Article under
120	120	9 which he or she is a member or participant.
121	121	10 (b) "Final average salary" means, except as otherwise
122	122	11 provided in this subsection, the average monthly (or annual)
123	123	12 salary obtained by dividing the total salary or earnings
124	124	13 calculated under the Article applicable to the member or
125	125	14 participant during the 96 consecutive months (or 8 consecutive
126	126	15 years) of service within the last 120 months (or 10 years) of
127	127	16 service in which the total salary or earnings calculated under
128	128	17 the applicable Article was the highest by the number of months
129	129	18 (or years) of service in that period. For the purposes of a
130	130	19 person who first becomes a member or participant of any
131	131	20 retirement system or pension fund to which this Section
132	132	21 applies on or after January 1, 2011, in this Code, "final
133	133	22 average salary" shall be substituted for the following:
134	134	23 (1) (Blank).
135	135	24 (2) In Articles 8, 9, 10, 11, and 12, "highest average
136	136	25 annual salary for any 4 consecutive years within the last
137	137	26 10 years of service immediately preceding the date of
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148	148	1 withdrawal".
149	149	2 (3) In Article 13, "average final salary".
150	150	3 (4) In Article 14, "final average compensation".
151	151	4 (5) In Article 17, "average salary".
152	152	5 (6) In Section 22-207, "wages or salary received by
153	153	6 him at the date of retirement or discharge".
154	154	7 A member of the Teachers' Retirement System of the State
155	155	8 of Illinois who retires on or after June 1, 2021 and for whom
156	156	9 the 2020-2021 school year is used in the calculation of the
157	157	10 member's final average salary shall use the higher of the
158	158	11 following for the purpose of determining the member's final
159	159	12 average salary:
160	160	13 (A) the amount otherwise calculated under the first
161	161	14 paragraph of this subsection; or
162	162	15 (B) an amount calculated by the Teachers' Retirement
163	163	16 System of the State of Illinois using the average of the
164	164	17 monthly (or annual) salary obtained by dividing the total
165	165	18 salary or earnings calculated under Article 16 applicable
166	166	19 to the member or participant during the 96 months (or 8
167	167	20 years) of service within the last 120 months (or 10 years)
168	168	21 of service in which the total salary or earnings
169	169	22 calculated under the Article was the highest by the number
170	170	23 of months (or years) of service in that period.
171	171	24 (b-5) Beginning on January 1, 2011, for all purposes under
172	172	25 this Code (including without limitation the calculation of
173	173	26 benefits and employee contributions), the annual earnings,
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184	184	1 salary, or wages (based on the plan year) of a member or
185	185	2 participant to whom this Section applies shall not exceed
186	186	3 $106,800; however, that amount shall annually thereafter be
187	187	4 increased by the lesser of (i) 3% of that amount, including all
188	188	5 previous adjustments, or (ii) one-half the annual unadjusted
189	189	6 percentage increase (but not less than zero) in the consumer
190	190	7 price index-u for the 12 months ending with the September
191	191	8 preceding each November 1, including all previous adjustments.
192	192	9 For the purposes of this Section, "consumer price index-u"
193	193	10 means the index published by the Bureau of Labor Statistics of
194	194	11 the United States Department of Labor that measures the
195	195	12 average change in prices of goods and services purchased by
196	196	13 all urban consumers, United States city average, all items,
197	197	14 1982-84 = 100. The new amount resulting from each annual
198	198	15 adjustment shall be determined by the Public Pension Division
199	199	16 of the Department of Insurance and made available to the
200	200	17 boards of the retirement systems and pension funds by November
201	201	18 1 of each year.
202	202	19 (b-10) Beginning on January 1, 2024, for all purposes
203	203	20 under this Code (including, without limitation, the
204	204	21 calculation of benefits and employee contributions), the
205	205	22 annual earnings, salary, or wages (based on the plan year) of a
206	206	23 member or participant under Article 9 to whom this Section
207	207	24 applies shall include an annual earnings, salary, or wage cap
208	208	25 that tracks the Social Security wage base. Maximum annual
209	209	26 earnings, wages, or salary shall be the annual contribution
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220	220	1 and benefit base established for the applicable year by the
221	221	2 Commissioner of the Social Security Administration under the
222	222	3 federal Social Security Act.
223	223	4 However, in no event shall the annual earnings, salary, or
224	224	5 wages for the purposes of this Article and Article 9 exceed any
225	225	6 limitation imposed on annual earnings, salary, or wages under
226	226	7 Section 1-117. Under no circumstances shall the maximum amount
227	227	8 of annual earnings, salary, or wages be greater than the
228	228	9 amount set forth in this subsection (b-10) as a result of
229	229	10 reciprocal service or any provisions regarding reciprocal
230	230	11 services, nor shall the Fund under Article 9 be required to pay
231	231	12 any refund as a result of the application of this maximum
232	232	13 annual earnings, salary, and wage cap.
233	233	14 Nothing in this subsection (b-10) shall cause or otherwise
234	234	15 result in any retroactive adjustment of any employee
235	235	16 contributions. Nothing in this subsection (b-10) shall cause
236	236	17 or otherwise result in any retroactive adjustment of
237	237	18 disability or other payments made between January 1, 2011 and
238	238	19 January 1, 2024.
239	239	20 (c) A member or participant is entitled to a retirement
240	240	21 annuity upon written application if he or she has attained age
241	241	22 67 (age 65, with respect to service under Article 12 that is
242	242	23 subject to this Section, for a member or participant under
243	243	24 Article 12 who first becomes a member or participant under
244	244	25 Article 12 on or after January 1, 2022 or who makes the
245	245	26 election under item (i) of subsection (d-15) of this Section)
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256	256	1 and has at least 10 years of service credit and is otherwise
257	257	2 eligible under the requirements of the applicable Article.
258	258	3 A member or participant who has attained age 62 (age 60,
259	259	4 with respect to service under Article 12 that is subject to
260	260	5 this Section, for a member or participant under Article 12 who
261	261	6 first becomes a member or participant under Article 12 on or
262	262	7 after January 1, 2022 or who makes the election under item (i)
263	263	8 of subsection (d-15) of this Section) and has at least 10 years
264	264	9 of service credit and is otherwise eligible under the
265	265	10 requirements of the applicable Article may elect to receive
266	266	11 the lower retirement annuity provided in subsection (d) of
267	267	12 this Section.
268	268	13 (c-5) A person who first becomes a member or a participant
269	269	14 subject to this Section on or after July 6, 2017 (the effective
270	270	15 date of Public Act 100-23), notwithstanding any other
271	271	16 provision of this Code to the contrary, is entitled to a
272	272	17 retirement annuity under Article 8 or Article 11 upon written
273	273	18 application if he or she has attained age 65 and has at least
274	274	19 10 years of service credit and is otherwise eligible under the
275	275	20 requirements of Article 8 or Article 11 of this Code,
276	276	21 whichever is applicable.
277	277	22 (d) The retirement annuity of a member or participant who
278	278	23 is retiring after attaining age 62 (age 60, with respect to
279	279	24 service under Article 12 that is subject to this Section, for a
280	280	25 member or participant under Article 12 who first becomes a
281	281	26 member or participant under Article 12 on or after January 1,
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292	292	1 2022 or who makes the election under item (i) of subsection
293	293	2 (d-15) of this Section) with at least 10 years of service
294	294	3 credit shall be reduced by one-half of 1% for each full month
295	295	4 that the member's age is under age 67 (age 65, with respect to
296	296	5 service under Article 12 that is subject to this Section, for a
297	297	6 member or participant under Article 12 who first becomes a
298	298	7 member or participant under Article 12 on or after January 1,
299	299	8 2022 or who makes the election under item (i) of subsection
300	300	9 (d-15) of this Section).
301	301	10 (d-5) The retirement annuity payable under Article 8 or
302	302	11 Article 11 to an eligible person subject to subsection (c-5)
303	303	12 of this Section who is retiring at age 60 with at least 10
304	304	13 years of service credit shall be reduced by one-half of 1% for
305	305	14 each full month that the member's age is under age 65.
306	306	15 (d-10) Each person who first became a member or
307	307	16 participant under Article 8 or Article 11 of this Code on or
308	308	17 after January 1, 2011 and prior to July 6, 2017 (the effective
309	309	18 date of Public Act 100-23) shall make an irrevocable election
310	310	19 either:
311	311	20 (i) to be eligible for the reduced retirement age
312	312	21 provided in subsections (c-5) and (d-5) of this Section,
313	313	22 the eligibility for which is conditioned upon the member
314	314	23 or participant agreeing to the increases in employee
315	315	24 contributions for age and service annuities provided in
316	316	25 subsection (a-5) of Section 8-174 of this Code (for
317	317	26 service under Article 8) or subsection (a-5) of Section
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328	328	1 11-170 of this Code (for service under Article 11); or
329	329	2 (ii) to not agree to item (i) of this subsection
330	330	3 (d-10), in which case the member or participant shall
331	331	4 continue to be subject to the retirement age provisions in
332	332	5 subsections (c) and (d) of this Section and the employee
333	333	6 contributions for age and service annuity as provided in
334	334	7 subsection (a) of Section 8-174 of this Code (for service
335	335	8 under Article 8) or subsection (a) of Section 11-170 of
336	336	9 this Code (for service under Article 11).
337	337	10 The election provided for in this subsection shall be made
338	338	11 between October 1, 2017 and November 15, 2017. A person
339	339	12 subject to this subsection who makes the required election
340	340	13 shall remain bound by that election. A person subject to this
341	341	14 subsection who fails for any reason to make the required
342	342	15 election within the time specified in this subsection shall be
343	343	16 deemed to have made the election under item (ii).
344	344	17 (d-15) Each person who first becomes a member or
345	345	18 participant under Article 12 on or after January 1, 2011 and
346	346	19 prior to January 1, 2022 shall make an irrevocable election
347	347	20 either:
348	348	21 (i) to be eligible for the reduced retirement age
349	349	22 specified in subsections (c) and (d) of this Section, the
350	350	23 eligibility for which is conditioned upon the member or
351	351	24 participant agreeing to the increase in employee
352	352	25 contributions for service annuities specified in
353	353	26 subsection (b) of Section 12-150; or
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364	364	1 (ii) to not agree to item (i) of this subsection
365	365	2 (d-15), in which case the member or participant shall not
366	366	3 be eligible for the reduced retirement age specified in
367	367	4 subsections (c) and (d) of this Section and shall not be
368	368	5 subject to the increase in employee contributions for
369	369	6 service annuities specified in subsection (b) of Section
370	370	7 12-150.
371	371	8 The election provided for in this subsection shall be made
372	372	9 between January 1, 2022 and April 1, 2022. A person subject to
373	373	10 this subsection who makes the required election shall remain
374	374	11 bound by that election. A person subject to this subsection
375	375	12 who fails for any reason to make the required election within
376	376	13 the time specified in this subsection shall be deemed to have
377	377	14 made the election under item (ii).
378	378	15 (e) Any retirement annuity or supplemental annuity shall
379	379	16 be subject to annual increases on the January 1 occurring
380	380	17 either on or after the attainment of age 67 (age 65, with
381	381	18 respect to service under Article 12 that is subject to this
382	382	19 Section, for a member or participant under Article 12 who
383	383	20 first becomes a member or participant under Article 12 on or
384	384	21 after January 1, 2022 or who makes the election under item (i)
385	385	22 of subsection (d-15); and beginning on July 6, 2017 (the
386	386	23 effective date of Public Act 100-23), age 65 with respect to
387	387	24 service under Article 8 or Article 11 for eligible persons
388	388	25 who: (i) are subject to subsection (c-5) of this Section; or
389	389	26 (ii) made the election under item (i) of subsection (d-10) of
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400	400	1 this Section) or the first anniversary of the annuity start
401	401	2 date, whichever is later. Each annual increase shall be
402	402	3 calculated at 3% or one-half the annual unadjusted percentage
403	403	4 increase (but not less than zero) in the consumer price
404	404	5 index-u for the 12 months ending with the September preceding
405	405	6 each November 1, whichever is less, of the originally granted
406	406	7 retirement annuity. If the annual unadjusted percentage change
407	407	8 in the consumer price index-u for the 12 months ending with the
408	408	9 September preceding each November 1 is zero or there is a
409	409	10 decrease, then the annuity shall not be increased.
410	410	11 For the purposes of Section 1-103.1 of this Code, the
411	411	12 changes made to this Section by Public Act 102-263 are
412	412	13 applicable without regard to whether the employee was in
413	413	14 active service on or after August 6, 2021 (the effective date
414	414	15 of Public Act 102-263).
415	415	16 For the purposes of Section 1-103.1 of this Code, the
416	416	17 changes made to this Section by Public Act 100-23 are
417	417	18 applicable without regard to whether the employee was in
418	418	19 active service on or after July 6, 2017 (the effective date of
419	419	20 Public Act 100-23).
420	420	21 (f) The initial survivor's or widow's annuity of an
421	421	22 otherwise eligible survivor or widow of a retired member or
422	422	23 participant who first became a member or participant on or
423	423	24 after January 1, 2011 shall be in the amount of 66 2/3% of the
424	424	25 retired member's or participant's retirement annuity at the
425	425	26 date of death. In the case of the death of a member or
426	426
427	427
428	428
429	429
430	430
431	431	SB1690 - 11 - LRB103 26358 RPS 52719 b
432	432
433	433
434	434	SB1690- 12 -LRB103 26358 RPS 52719 b SB1690 - 12 - LRB103 26358 RPS 52719 b
435	435	SB1690 - 12 - LRB103 26358 RPS 52719 b
436	436	1 participant who has not retired and who first became a member
437	437	2 or participant on or after January 1, 2011, eligibility for a
438	438	3 survivor's or widow's annuity shall be determined by the
439	439	4 applicable Article of this Code. The initial benefit shall be
440	440	5 66 2/3% of the earned annuity without a reduction due to age. A
441	441	6 child's annuity of an otherwise eligible child shall be in the
442	442	7 amount prescribed under each Article if applicable. Any
443	443	8 survivor's or widow's annuity shall be increased (1) on each
444	444	9 January 1 occurring on or after the commencement of the
445	445	10 annuity if the deceased member died while receiving a
446	446	11 retirement annuity or (2) in other cases, on each January 1
447	447	12 occurring after the first anniversary of the commencement of
448	448	13 the annuity. Each annual increase shall be calculated at 3% or
449	449	14 one-half the annual unadjusted percentage increase (but not
450	450	15 less than zero) in the consumer price index-u for the 12 months
451	451	16 ending with the September preceding each November 1, whichever
452	452	17 is less, of the originally granted survivor's annuity. If the
453	453	18 annual unadjusted percentage change in the consumer price
454	454	19 index-u for the 12 months ending with the September preceding
455	455	20 each November 1 is zero or there is a decrease, then the
456	456	21 annuity shall not be increased.
457	457	22 (g) The benefits in Section 14-110 apply if the person is a
458	458	23 fire fighter in the fire protection service of a department, a
459	459	24 security employee of the Department of Corrections or the
460	460	25 Department of Juvenile Justice, or a security employee of the
461	461	26 Department of Innovation and Technology, as those terms are
462	462
463	463
464	464
465	465
466	466
467	467	SB1690 - 12 - LRB103 26358 RPS 52719 b
468	468
469	469
470	470	SB1690- 13 -LRB103 26358 RPS 52719 b SB1690 - 13 - LRB103 26358 RPS 52719 b
471	471	SB1690 - 13 - LRB103 26358 RPS 52719 b
472	472	1 defined in subsection (b) and subsection (c) of Section
473	473	2 14-110. A person who meets the requirements of this Section is
474	474	3 entitled to an annuity calculated under the provisions of
475	475	4 Section 14-110, in lieu of the regular or minimum retirement
476	476	5 annuity, only if the person has withdrawn from service with
477	477	6 not less than 20 years of eligible creditable service and has
478	478	7 attained age 60, regardless of whether the attainment of age
479	479	8 60 occurs while the person is still in service.
480	480	9 (g-5) The benefits in Section 14-110 apply if the person
481	481	10 is a State policeman, investigator for the Secretary of State,
482	482	11 conservation police officer, investigator for the Department
483	483	12 of Revenue or the Illinois Gaming Board, investigator for the
484	484	13 Office of the Attorney General, Commerce Commission police
485	485	14 officer, or arson investigator, as those terms are defined in
486	486	15 subsection (b) and subsection (c) of Section 14-110. A person
487	487	16 who meets the requirements of this Section is entitled to an
488	488	17 annuity calculated under the provisions of Section 14-110, in
489	489	18 lieu of the regular or minimum retirement annuity, only if the
490	490	19 person has withdrawn from service with not less than 20 years
491	491	20 of eligible creditable service and has attained age 55,
492	492	21 regardless of whether the attainment of age 55 occurs while
493	493	22 the person is still in service.
494	494	23 (h) If a person who first becomes a member or a participant
495	495	24 of a retirement system or pension fund subject to this Section
496	496	25 on or after January 1, 2011 is receiving a retirement annuity
497	497	26 or retirement pension under that system or fund and becomes a
498	498
499	499
500	500
501	501
502	502
503	503	SB1690 - 13 - LRB103 26358 RPS 52719 b
504	504
505	505
506	506	SB1690- 14 -LRB103 26358 RPS 52719 b SB1690 - 14 - LRB103 26358 RPS 52719 b
507	507	SB1690 - 14 - LRB103 26358 RPS 52719 b
508	508	1 member or participant under any other system or fund created
509	509	2 by this Code and is employed on a full-time basis, except for
510	510	3 those members or participants exempted from the provisions of
511	511	4 this Section under subsection (a) of this Section, then the
512	512	5 person's retirement annuity or retirement pension under that
513	513	6 system or fund shall be suspended during that employment. Upon
514	514	7 termination of that employment, the person's retirement
515	515	8 annuity or retirement pension payments shall resume and be
516	516	9 recalculated if recalculation is provided for under the
517	517	10 applicable Article of this Code.
518	518	11 If a person who first becomes a member of a retirement
519	519	12 system or pension fund subject to this Section on or after
520	520	13 January 1, 2012 and is receiving a retirement annuity or
521	521	14 retirement pension under that system or fund and accepts on a
522	522	15 contractual basis a position to provide services to a
523	523	16 governmental entity from which he or she has retired, then
524	524	17 that person's annuity or retirement pension earned as an
525	525	18 active employee of the employer shall be suspended during that
526	526	19 contractual service. A person receiving an annuity or
527	527	20 retirement pension under this Code shall notify the pension
528	528	21 fund or retirement system from which he or she is receiving an
529	529	22 annuity or retirement pension, as well as his or her
530	530	23 contractual employer, of his or her retirement status before
531	531	24 accepting contractual employment. A person who fails to submit
532	532	25 such notification shall be guilty of a Class A misdemeanor and
533	533	26 required to pay a fine of $1,000. Upon termination of that
534	534
535	535
536	536
537	537
538	538
539	539	SB1690 - 14 - LRB103 26358 RPS 52719 b
540	540
541	541
542	542	SB1690- 15 -LRB103 26358 RPS 52719 b SB1690 - 15 - LRB103 26358 RPS 52719 b
543	543	SB1690 - 15 - LRB103 26358 RPS 52719 b
544	544	1 contractual employment, the person's retirement annuity or
545	545	2 retirement pension payments shall resume and, if appropriate,
546	546	3 be recalculated under the applicable provisions of this Code.
547	547	4 (i) (Blank).
548	548	5 (j) In the case of a conflict between the provisions of
549	549	6 this Section and any other provision of this Code, the
550	550	7 provisions of this Section shall control.
551	551	8 (Source: P.A. 101-610, eff. 1-1-20; 102-16, eff. 6-17-21;
552	552	9 102-210, eff. 1-1-22; 102-263, eff. 8-6-21; 102-719, eff.
553	553	10 5-6-22.)
554	554	11 (Text of Section from P.A. 102-813)
555	555	12 Sec. 1-160. Provisions applicable to new hires.
556	556	13 (a) The provisions of this Section apply to a person who,
557	557	14 on or after January 1, 2011, first becomes a member or a
558	558	15 participant under any reciprocal retirement system or pension
559	559	16 fund established under this Code, other than a retirement
560	560	17 system or pension fund established under Article 2, 3, 4, 5, 6,
561	561	18 7, 15, or 18 of this Code, notwithstanding any other provision
562	562	19 of this Code to the contrary, but do not apply to any
563	563	20 self-managed plan established under this Code or to any
564	564	21 participant of the retirement plan established under Section
565	565	22 22-101; except that this Section applies to a person who
566	566	23 elected to establish alternative credits by electing in
567	567	24 writing after January 1, 2011, but before August 8, 2011,
568	568	25 under Section 7-145.1 of this Code. Notwithstanding anything
569	569
570	570
571	571
572	572
573	573
574	574	SB1690 - 15 - LRB103 26358 RPS 52719 b
575	575
576	576
577	577	SB1690- 16 -LRB103 26358 RPS 52719 b SB1690 - 16 - LRB103 26358 RPS 52719 b
578	578	SB1690 - 16 - LRB103 26358 RPS 52719 b
579	579	1 to the contrary in this Section, for purposes of this Section,
580	580	2 a person who is a Tier 1 regular employee as defined in Section
581	581	3 7-109.4 of this Code or who participated in a retirement
582	582	4 system under Article 15 prior to January 1, 2011 shall be
583	583	5 deemed a person who first became a member or participant prior
584	584	6 to January 1, 2011 under any retirement system or pension fund
585	585	7 subject to this Section. The changes made to this Section by
586	586	8 Public Act 98-596 are a clarification of existing law and are
587	587	9 intended to be retroactive to January 1, 2011 (the effective
588	588	10 date of Public Act 96-889), notwithstanding the provisions of
589	589	11 Section 1-103.1 of this Code.
590	590	12 This Section does not apply to a person who first becomes a
591	591	13 noncovered employee under Article 14 on or after the
592	592	14 implementation date of the plan created under Section 1-161
593	593	15 for that Article, unless that person elects under subsection
594	594	16 (b) of Section 1-161 to instead receive the benefits provided
595	595	17 under this Section and the applicable provisions of that
596	596	18 Article.
597	597	19 This Section does not apply to a person who first becomes a
598	598	20 member or participant under Article 16 on or after the
599	599	21 implementation date of the plan created under Section 1-161
600	600	22 for that Article, unless that person elects under subsection
601	601	23 (b) of Section 1-161 to instead receive the benefits provided
602	602	24 under this Section and the applicable provisions of that
603	603	25 Article.
604	604	26 This Section does not apply to a person who elects under
605	605
606	606
607	607
608	608
609	609
610	610	SB1690 - 16 - LRB103 26358 RPS 52719 b
611	611
612	612
613	613	SB1690- 17 -LRB103 26358 RPS 52719 b SB1690 - 17 - LRB103 26358 RPS 52719 b
614	614	SB1690 - 17 - LRB103 26358 RPS 52719 b
615	615	1 subsection (c-5) of Section 1-161 to receive the benefits
616	616	2 under Section 1-161.
617	617	3 This Section does not apply to a person who first becomes a
618	618	4 member or participant of an affected pension fund on or after 6
619	619	5 months after the resolution or ordinance date, as defined in
620	620	6 Section 1-162, unless that person elects under subsection (c)
621	621	7 of Section 1-162 to receive the benefits provided under this
622	622	8 Section and the applicable provisions of the Article under
623	623	9 which he or she is a member or participant.
624	624	10 (b) "Final average salary" means, except as otherwise
625	625	11 provided in this subsection, the average monthly (or annual)
626	626	12 salary obtained by dividing the total salary or earnings
627	627	13 calculated under the Article applicable to the member or
628	628	14 participant during the 96 consecutive months (or 8 consecutive
629	629	15 years) of service within the last 120 months (or 10 years) of
630	630	16 service in which the total salary or earnings calculated under
631	631	17 the applicable Article was the highest by the number of months
632	632	18 (or years) of service in that period. For the purposes of a
633	633	19 person who first becomes a member or participant of any
634	634	20 retirement system or pension fund to which this Section
635	635	21 applies on or after January 1, 2011, in this Code, "final
636	636	22 average salary" shall be substituted for the following:
637	637	23 (1) (Blank).
638	638	24 (2) In Articles 8, 9, 10, 11, and 12, "highest average
639	639	25 annual salary for any 4 consecutive years within the last
640	640	26 10 years of service immediately preceding the date of
641	641
642	642
643	643
644	644
645	645
646	646	SB1690 - 17 - LRB103 26358 RPS 52719 b
647	647
648	648
649	649	SB1690- 18 -LRB103 26358 RPS 52719 b SB1690 - 18 - LRB103 26358 RPS 52719 b
650	650	SB1690 - 18 - LRB103 26358 RPS 52719 b
651	651	1 withdrawal".
652	652	2 (3) In Article 13, "average final salary".
653	653	3 (4) In Article 14, "final average compensation".
654	654	4 (5) In Article 17, "average salary".
655	655	5 (6) In Section 22-207, "wages or salary received by
656	656	6 him at the date of retirement or discharge".
657	657	7 A member of the Teachers' Retirement System of the State
658	658	8 of Illinois who retires on or after June 1, 2021 and for whom
659	659	9 the 2020-2021 school year is used in the calculation of the
660	660	10 member's final average salary shall use the higher of the
661	661	11 following for the purpose of determining the member's final
662	662	12 average salary:
663	663	13 (A) the amount otherwise calculated under the first
664	664	14 paragraph of this subsection; or
665	665	15 (B) an amount calculated by the Teachers' Retirement
666	666	16 System of the State of Illinois using the average of the
667	667	17 monthly (or annual) salary obtained by dividing the total
668	668	18 salary or earnings calculated under Article 16 applicable
669	669	19 to the member or participant during the 96 months (or 8
670	670	20 years) of service within the last 120 months (or 10 years)
671	671	21 of service in which the total salary or earnings
672	672	22 calculated under the Article was the highest by the number
673	673	23 of months (or years) of service in that period.
674	674	24 (b-5) Beginning on January 1, 2011, for all purposes under
675	675	25 this Code (including without limitation the calculation of
676	676	26 benefits and employee contributions), the annual earnings,
677	677
678	678
679	679
680	680
681	681
682	682	SB1690 - 18 - LRB103 26358 RPS 52719 b
683	683
684	684
685	685	SB1690- 19 -LRB103 26358 RPS 52719 b SB1690 - 19 - LRB103 26358 RPS 52719 b
686	686	SB1690 - 19 - LRB103 26358 RPS 52719 b
687	687	1 salary, or wages (based on the plan year) of a member or
688	688	2 participant to whom this Section applies shall not exceed
689	689	3 $106,800; however, that amount shall annually thereafter be
690	690	4 increased by the lesser of (i) 3% of that amount, including all
691	691	5 previous adjustments, or (ii) one-half the annual unadjusted
692	692	6 percentage increase (but not less than zero) in the consumer
693	693	7 price index-u for the 12 months ending with the September
694	694	8 preceding each November 1, including all previous adjustments.
695	695	9 For the purposes of this Section, "consumer price index-u"
696	696	10 means the index published by the Bureau of Labor Statistics of
697	697	11 the United States Department of Labor that measures the
698	698	12 average change in prices of goods and services purchased by
699	699	13 all urban consumers, United States city average, all items,
700	700	14 1982-84 = 100. The new amount resulting from each annual
701	701	15 adjustment shall be determined by the Public Pension Division
702	702	16 of the Department of Insurance and made available to the
703	703	17 boards of the retirement systems and pension funds by November
704	704	18 1 of each year.
705	705	19 (b-10) Beginning on January 1, 2024, for all purposes
706	706	20 under this Code (including, without limitation, the
707	707	21 calculation of benefits and employee contributions), the
708	708	22 annual earnings, salary, or wages (based on the plan year) of a
709	709	23 member or participant under Article 9 to whom this Section
710	710	24 applies shall include an annual earnings, salary, or wage cap
711	711	25 that tracks the Social Security wage base. Maximum annual
712	712	26 earnings, wages, or salary shall be the annual contribution
713	713
714	714
715	715
716	716
717	717
718	718	SB1690 - 19 - LRB103 26358 RPS 52719 b
719	719
720	720
721	721	SB1690- 20 -LRB103 26358 RPS 52719 b SB1690 - 20 - LRB103 26358 RPS 52719 b
722	722	SB1690 - 20 - LRB103 26358 RPS 52719 b
723	723	1 and benefit base established for the applicable year by the
724	724	2 Commissioner of the Social Security Administration under the
725	725	3 federal Social Security Act.
726	726	4 However, in no event shall the annual earnings, salary, or
727	727	5 wages for the purposes of this Article and Article 9 exceed any
728	728	6 limitation imposed on annual earnings, salary, or wages under
729	729	7 Section 1-117. Under no circumstances shall the maximum amount
730	730	8 of annual earnings, salary, or wages be greater than the
731	731	9 amount set forth in this subsection (b-10) as a result of
732	732	10 reciprocal service or any provisions regarding reciprocal
733	733	11 services, nor shall the Fund under Article 9 be required to pay
734	734	12 any refund as a result of the application of this maximum
735	735	13 annual earnings, salary, and wage cap.
736	736	14 Nothing in this subsection (b-10) shall cause or otherwise
737	737	15 result in any retroactive adjustment of any employee
738	738	16 contributions. Nothing in this subsection (b-10) shall cause
739	739	17 or otherwise result in any retroactive adjustment of
740	740	18 disability or other payments made between January 1, 2011 and
741	741	19 January 1, 2024.
742	742	20 (c) A member or participant is entitled to a retirement
743	743	21 annuity upon written application if he or she has attained age
744	744	22 67 (age 65, with respect to service under Article 12 that is
745	745	23 subject to this Section, for a member or participant under
746	746	24 Article 12 who first becomes a member or participant under
747	747	25 Article 12 on or after January 1, 2022 or who makes the
748	748	26 election under item (i) of subsection (d-15) of this Section)
749	749
750	750
751	751
752	752
753	753
754	754	SB1690 - 20 - LRB103 26358 RPS 52719 b
755	755
756	756
757	757	SB1690- 21 -LRB103 26358 RPS 52719 b SB1690 - 21 - LRB103 26358 RPS 52719 b
758	758	SB1690 - 21 - LRB103 26358 RPS 52719 b
759	759	1 and has at least 10 years of service credit and is otherwise
760	760	2 eligible under the requirements of the applicable Article.
761	761	3 A member or participant who has attained age 62 (age 60,
762	762	4 with respect to service under Article 12 that is subject to
763	763	5 this Section, for a member or participant under Article 12 who
764	764	6 first becomes a member or participant under Article 12 on or
765	765	7 after January 1, 2022 or who makes the election under item (i)
766	766	8 of subsection (d-15) of this Section) and has at least 10 years
767	767	9 of service credit and is otherwise eligible under the
768	768	10 requirements of the applicable Article may elect to receive
769	769	11 the lower retirement annuity provided in subsection (d) of
770	770	12 this Section.
771	771	13 (c-5) A person who first becomes a member or a participant
772	772	14 subject to this Section on or after July 6, 2017 (the effective
773	773	15 date of Public Act 100-23), notwithstanding any other
774	774	16 provision of this Code to the contrary, is entitled to a
775	775	17 retirement annuity under Article 8 or Article 11 upon written
776	776	18 application if he or she has attained age 65 and has at least
777	777	19 10 years of service credit and is otherwise eligible under the
778	778	20 requirements of Article 8 or Article 11 of this Code,
779	779	21 whichever is applicable.
780	780	22 (d) The retirement annuity of a member or participant who
781	781	23 is retiring after attaining age 62 (age 60, with respect to
782	782	24 service under Article 12 that is subject to this Section, for a
783	783	25 member or participant under Article 12 who first becomes a
784	784	26 member or participant under Article 12 on or after January 1,
785	785
786	786
787	787
788	788
789	789
790	790	SB1690 - 21 - LRB103 26358 RPS 52719 b
791	791
792	792
793	793	SB1690- 22 -LRB103 26358 RPS 52719 b SB1690 - 22 - LRB103 26358 RPS 52719 b
794	794	SB1690 - 22 - LRB103 26358 RPS 52719 b
795	795	1 2022 or who makes the election under item (i) of subsection
796	796	2 (d-15) of this Section) with at least 10 years of service
797	797	3 credit shall be reduced by one-half of 1% for each full month
798	798	4 that the member's age is under age 67 (age 65, with respect to
799	799	5 service under Article 12 that is subject to this Section, for a
800	800	6 member or participant under Article 12 who first becomes a
801	801	7 member or participant under Article 12 on or after January 1,
802	802	8 2022 or who makes the election under item (i) of subsection
803	803	9 (d-15) of this Section).
804	804	10 (d-5) The retirement annuity payable under Article 8 or
805	805	11 Article 11 to an eligible person subject to subsection (c-5)
806	806	12 of this Section who is retiring at age 60 with at least 10
807	807	13 years of service credit shall be reduced by one-half of 1% for
808	808	14 each full month that the member's age is under age 65.
809	809	15 (d-10) Each person who first became a member or
810	810	16 participant under Article 8 or Article 11 of this Code on or
811	811	17 after January 1, 2011 and prior to July 6, 2017 (the effective
812	812	18 date of Public Act 100-23) shall make an irrevocable election
813	813	19 either:
814	814	20 (i) to be eligible for the reduced retirement age
815	815	21 provided in subsections (c-5) and (d-5) of this Section,
816	816	22 the eligibility for which is conditioned upon the member
817	817	23 or participant agreeing to the increases in employee
818	818	24 contributions for age and service annuities provided in
819	819	25 subsection (a-5) of Section 8-174 of this Code (for
820	820	26 service under Article 8) or subsection (a-5) of Section
821	821
822	822
823	823
824	824
825	825
826	826	SB1690 - 22 - LRB103 26358 RPS 52719 b
827	827
828	828
829	829	SB1690- 23 -LRB103 26358 RPS 52719 b SB1690 - 23 - LRB103 26358 RPS 52719 b
830	830	SB1690 - 23 - LRB103 26358 RPS 52719 b
831	831	1 11-170 of this Code (for service under Article 11); or
832	832	2 (ii) to not agree to item (i) of this subsection
833	833	3 (d-10), in which case the member or participant shall
834	834	4 continue to be subject to the retirement age provisions in
835	835	5 subsections (c) and (d) of this Section and the employee
836	836	6 contributions for age and service annuity as provided in
837	837	7 subsection (a) of Section 8-174 of this Code (for service
838	838	8 under Article 8) or subsection (a) of Section 11-170 of
839	839	9 this Code (for service under Article 11).
840	840	10 The election provided for in this subsection shall be made
841	841	11 between October 1, 2017 and November 15, 2017. A person
842	842	12 subject to this subsection who makes the required election
843	843	13 shall remain bound by that election. A person subject to this
844	844	14 subsection who fails for any reason to make the required
845	845	15 election within the time specified in this subsection shall be
846	846	16 deemed to have made the election under item (ii).
847	847	17 (d-15) Each person who first becomes a member or
848	848	18 participant under Article 12 on or after January 1, 2011 and
849	849	19 prior to January 1, 2022 shall make an irrevocable election
850	850	20 either:
851	851	21 (i) to be eligible for the reduced retirement age
852	852	22 specified in subsections (c) and (d) of this Section, the
853	853	23 eligibility for which is conditioned upon the member or
854	854	24 participant agreeing to the increase in employee
855	855	25 contributions for service annuities specified in
856	856	26 subsection (b) of Section 12-150; or
857	857
858	858
859	859
860	860
861	861
862	862	SB1690 - 23 - LRB103 26358 RPS 52719 b
863	863
864	864
865	865	SB1690- 24 -LRB103 26358 RPS 52719 b SB1690 - 24 - LRB103 26358 RPS 52719 b
866	866	SB1690 - 24 - LRB103 26358 RPS 52719 b
867	867	1 (ii) to not agree to item (i) of this subsection
868	868	2 (d-15), in which case the member or participant shall not
869	869	3 be eligible for the reduced retirement age specified in
870	870	4 subsections (c) and (d) of this Section and shall not be
871	871	5 subject to the increase in employee contributions for
872	872	6 service annuities specified in subsection (b) of Section
873	873	7 12-150.
874	874	8 The election provided for in this subsection shall be made
875	875	9 between January 1, 2022 and April 1, 2022. A person subject to
876	876	10 this subsection who makes the required election shall remain
877	877	11 bound by that election. A person subject to this subsection
878	878	12 who fails for any reason to make the required election within
879	879	13 the time specified in this subsection shall be deemed to have
880	880	14 made the election under item (ii).
881	881	15 (e) Any retirement annuity or supplemental annuity shall
882	882	16 be subject to annual increases on the January 1 occurring
883	883	17 either on or after the attainment of age 67 (age 65, with
884	884	18 respect to service under Article 12 that is subject to this
885	885	19 Section, for a member or participant under Article 12 who
886	886	20 first becomes a member or participant under Article 12 on or
887	887	21 after January 1, 2022 or who makes the election under item (i)
888	888	22 of subsection (d-15); and beginning on July 6, 2017 (the
889	889	23 effective date of Public Act 100-23), age 65 with respect to
890	890	24 service under Article 8 or Article 11 for eligible persons
891	891	25 who: (i) are subject to subsection (c-5) of this Section; or
892	892	26 (ii) made the election under item (i) of subsection (d-10) of
893	893
894	894
895	895
896	896
897	897
898	898	SB1690 - 24 - LRB103 26358 RPS 52719 b
899	899
900	900
901	901	SB1690- 25 -LRB103 26358 RPS 52719 b SB1690 - 25 - LRB103 26358 RPS 52719 b
902	902	SB1690 - 25 - LRB103 26358 RPS 52719 b
903	903	1 this Section) or the first anniversary of the annuity start
904	904	2 date, whichever is later. Each annual increase shall be
905	905	3 calculated at 3% or one-half the annual unadjusted percentage
906	906	4 increase (but not less than zero) in the consumer price
907	907	5 index-u for the 12 months ending with the September preceding
908	908	6 each November 1, whichever is less, of the originally granted
909	909	7 retirement annuity. If the annual unadjusted percentage change
910	910	8 in the consumer price index-u for the 12 months ending with the
911	911	9 September preceding each November 1 is zero or there is a
912	912	10 decrease, then the annuity shall not be increased.
913	913	11 For the purposes of Section 1-103.1 of this Code, the
914	914	12 changes made to this Section by Public Act 102-263 are
915	915	13 applicable without regard to whether the employee was in
916	916	14 active service on or after August 6, 2021 (the effective date
917	917	15 of Public Act 102-263).
918	918	16 For the purposes of Section 1-103.1 of this Code, the
919	919	17 changes made to this Section by Public Act 100-23 are
920	920	18 applicable without regard to whether the employee was in
921	921	19 active service on or after July 6, 2017 (the effective date of
922	922	20 Public Act 100-23).
923	923	21 (f) The initial survivor's or widow's annuity of an
924	924	22 otherwise eligible survivor or widow of a retired member or
925	925	23 participant who first became a member or participant on or
926	926	24 after January 1, 2011 shall be in the amount of 66 2/3% of the
927	927	25 retired member's or participant's retirement annuity at the
928	928	26 date of death. In the case of the death of a member or
929	929
930	930
931	931
932	932
933	933
934	934	SB1690 - 25 - LRB103 26358 RPS 52719 b
935	935
936	936
937	937	SB1690- 26 -LRB103 26358 RPS 52719 b SB1690 - 26 - LRB103 26358 RPS 52719 b
938	938	SB1690 - 26 - LRB103 26358 RPS 52719 b
939	939	1 participant who has not retired and who first became a member
940	940	2 or participant on or after January 1, 2011, eligibility for a
941	941	3 survivor's or widow's annuity shall be determined by the
942	942	4 applicable Article of this Code. The initial benefit shall be
943	943	5 66 2/3% of the earned annuity without a reduction due to age. A
944	944	6 child's annuity of an otherwise eligible child shall be in the
945	945	7 amount prescribed under each Article if applicable. Any
946	946	8 survivor's or widow's annuity shall be increased (1) on each
947	947	9 January 1 occurring on or after the commencement of the
948	948	10 annuity if the deceased member died while receiving a
949	949	11 retirement annuity or (2) in other cases, on each January 1
950	950	12 occurring after the first anniversary of the commencement of
951	951	13 the annuity. Each annual increase shall be calculated at 3% or
952	952	14 one-half the annual unadjusted percentage increase (but not
953	953	15 less than zero) in the consumer price index-u for the 12 months
954	954	16 ending with the September preceding each November 1, whichever
955	955	17 is less, of the originally granted survivor's annuity. If the
956	956	18 annual unadjusted percentage change in the consumer price
957	957	19 index-u for the 12 months ending with the September preceding
958	958	20 each November 1 is zero or there is a decrease, then the
959	959	21 annuity shall not be increased.
960	960	22 (g) The benefits in Section 14-110 apply only if the
961	961	23 person is a State policeman, a fire fighter in the fire
962	962	24 protection service of a department, a conservation police
963	963	25 officer, an investigator for the Secretary of State, an arson
964	964	26 investigator, a Commerce Commission police officer,
965	965
966	966
967	967
968	968
969	969
970	970	SB1690 - 26 - LRB103 26358 RPS 52719 b
971	971
972	972
973	973	SB1690- 27 -LRB103 26358 RPS 52719 b SB1690 - 27 - LRB103 26358 RPS 52719 b
974	974	SB1690 - 27 - LRB103 26358 RPS 52719 b
975	975	1 investigator for the Department of Revenue or the Illinois
976	976	2 Gaming Board, a security employee of the Department of
977	977	3 Corrections or the Department of Juvenile Justice, or a
978	978	4 security employee of the Department of Innovation and
979	979	5 Technology, as those terms are defined in subsection (b) and
980	980	6 subsection (c) of Section 14-110. A person who meets the
981	981	7 requirements of this Section is entitled to an annuity
982	982	8 calculated under the provisions of Section 14-110, in lieu of
983	983	9 the regular or minimum retirement annuity, only if the person
984	984	10 has withdrawn from service with not less than 20 years of
985	985	11 eligible creditable service and has attained age 60,
986	986	12 regardless of whether the attainment of age 60 occurs while
987	987	13 the person is still in service.
988	988	14 (h) If a person who first becomes a member or a participant
989	989	15 of a retirement system or pension fund subject to this Section
990	990	16 on or after January 1, 2011 is receiving a retirement annuity
991	991	17 or retirement pension under that system or fund and becomes a
992	992	18 member or participant under any other system or fund created
993	993	19 by this Code and is employed on a full-time basis, except for
994	994	20 those members or participants exempted from the provisions of
995	995	21 this Section under subsection (a) of this Section, then the
996	996	22 person's retirement annuity or retirement pension under that
997	997	23 system or fund shall be suspended during that employment. Upon
998	998	24 termination of that employment, the person's retirement
999	999	25 annuity or retirement pension payments shall resume and be
1000	1000	26 recalculated if recalculation is provided for under the
1001	1001
1002	1002
1003	1003
1004	1004
1005	1005
1006	1006	SB1690 - 27 - LRB103 26358 RPS 52719 b
1007	1007
1008	1008
1009	1009	SB1690- 28 -LRB103 26358 RPS 52719 b SB1690 - 28 - LRB103 26358 RPS 52719 b
1010	1010	SB1690 - 28 - LRB103 26358 RPS 52719 b
1011	1011	1 applicable Article of this Code.
1012	1012	2 If a person who first becomes a member of a retirement
1013	1013	3 system or pension fund subject to this Section on or after
1014	1014	4 January 1, 2012 and is receiving a retirement annuity or
1015	1015	5 retirement pension under that system or fund and accepts on a
1016	1016	6 contractual basis a position to provide services to a
1017	1017	7 governmental entity from which he or she has retired, then
1018	1018	8 that person's annuity or retirement pension earned as an
1019	1019	9 active employee of the employer shall be suspended during that
1020	1020	10 contractual service. A person receiving an annuity or
1021	1021	11 retirement pension under this Code shall notify the pension
1022	1022	12 fund or retirement system from which he or she is receiving an
1023	1023	13 annuity or retirement pension, as well as his or her
1024	1024	14 contractual employer, of his or her retirement status before
1025	1025	15 accepting contractual employment. A person who fails to submit
1026	1026	16 such notification shall be guilty of a Class A misdemeanor and
1027	1027	17 required to pay a fine of $1,000. Upon termination of that
1028	1028	18 contractual employment, the person's retirement annuity or
1029	1029	19 retirement pension payments shall resume and, if appropriate,
1030	1030	20 be recalculated under the applicable provisions of this Code.
1031	1031	21 (i) (Blank).
1032	1032	22 (j) In the case of a conflict between the provisions of
1033	1033	23 this Section and any other provision of this Code, the
1034	1034	24 provisions of this Section shall control.
1035	1035	25 (Source: P.A. 101-610, eff. 1-1-20; 102-16, eff. 6-17-21;
1036	1036	26 102-210, eff. 1-1-22; 102-263, eff. 8-6-21; 102-813, eff.
1037	1037
1038	1038
1039	1039
1040	1040
1041	1041
1042	1042	SB1690 - 28 - LRB103 26358 RPS 52719 b
1043	1043
1044	1044
1045	1045	SB1690- 29 -LRB103 26358 RPS 52719 b SB1690 - 29 - LRB103 26358 RPS 52719 b
1046	1046	SB1690 - 29 - LRB103 26358 RPS 52719 b
1047	1047	1 5-13-22.)
1048	1048	2 (Text of Section from P.A. 102-956)
1049	1049	3 Sec. 1-160. Provisions applicable to new hires.
1050	1050	4 (a) The provisions of this Section apply to a person who,
1051	1051	5 on or after January 1, 2011, first becomes a member or a
1052	1052	6 participant under any reciprocal retirement system or pension
1053	1053	7 fund established under this Code, other than a retirement
1054	1054	8 system or pension fund established under Article 2, 3, 4, 5, 6,
1055	1055	9 7, 15, or 18 of this Code, notwithstanding any other provision
1056	1056	10 of this Code to the contrary, but do not apply to any
1057	1057	11 self-managed plan established under this Code or to any
1058	1058	12 participant of the retirement plan established under Section
1059	1059	13 22-101; except that this Section applies to a person who
1060	1060	14 elected to establish alternative credits by electing in
1061	1061	15 writing after January 1, 2011, but before August 8, 2011,
1062	1062	16 under Section 7-145.1 of this Code. Notwithstanding anything
1063	1063	17 to the contrary in this Section, for purposes of this Section,
1064	1064	18 a person who is a Tier 1 regular employee as defined in Section
1065	1065	19 7-109.4 of this Code or who participated in a retirement
1066	1066	20 system under Article 15 prior to January 1, 2011 shall be
1067	1067	21 deemed a person who first became a member or participant prior
1068	1068	22 to January 1, 2011 under any retirement system or pension fund
1069	1069	23 subject to this Section. The changes made to this Section by
1070	1070	24 Public Act 98-596 are a clarification of existing law and are
1071	1071	25 intended to be retroactive to January 1, 2011 (the effective
1072	1072
1073	1073
1074	1074
1075	1075
1076	1076
1077	1077	SB1690 - 29 - LRB103 26358 RPS 52719 b
1078	1078
1079	1079
1080	1080	SB1690- 30 -LRB103 26358 RPS 52719 b SB1690 - 30 - LRB103 26358 RPS 52719 b
1081	1081	SB1690 - 30 - LRB103 26358 RPS 52719 b
1082	1082	1 date of Public Act 96-889), notwithstanding the provisions of
1083	1083	2 Section 1-103.1 of this Code.
1084	1084	3 This Section does not apply to a person who first becomes a
1085	1085	4 noncovered employee under Article 14 on or after the
1086	1086	5 implementation date of the plan created under Section 1-161
1087	1087	6 for that Article, unless that person elects under subsection
1088	1088	7 (b) of Section 1-161 to instead receive the benefits provided
1089	1089	8 under this Section and the applicable provisions of that
1090	1090	9 Article.
1091	1091	10 This Section does not apply to a person who first becomes a
1092	1092	11 member or participant under Article 16 on or after the
1093	1093	12 implementation date of the plan created under Section 1-161
1094	1094	13 for that Article, unless that person elects under subsection
1095	1095	14 (b) of Section 1-161 to instead receive the benefits provided
1096	1096	15 under this Section and the applicable provisions of that
1097	1097	16 Article.
1098	1098	17 This Section does not apply to a person who elects under
1099	1099	18 subsection (c-5) of Section 1-161 to receive the benefits
1100	1100	19 under Section 1-161.
1101	1101	20 This Section does not apply to a person who first becomes a
1102	1102	21 member or participant of an affected pension fund on or after 6
1103	1103	22 months after the resolution or ordinance date, as defined in
1104	1104	23 Section 1-162, unless that person elects under subsection (c)
1105	1105	24 of Section 1-162 to receive the benefits provided under this
1106	1106	25 Section and the applicable provisions of the Article under
1107	1107	26 which he or she is a member or participant.
1108	1108
1109	1109
1110	1110
1111	1111
1112	1112
1113	1113	SB1690 - 30 - LRB103 26358 RPS 52719 b
1114	1114
1115	1115
1116	1116	SB1690- 31 -LRB103 26358 RPS 52719 b SB1690 - 31 - LRB103 26358 RPS 52719 b
1117	1117	SB1690 - 31 - LRB103 26358 RPS 52719 b
1118	1118	1 (b) "Final average salary" means, except as otherwise
1119	1119	2 provided in this subsection, the average monthly (or annual)
1120	1120	3 salary obtained by dividing the total salary or earnings
1121	1121	4 calculated under the Article applicable to the member or
1122	1122	5 participant during the 96 consecutive months (or 8 consecutive
1123	1123	6 years) of service within the last 120 months (or 10 years) of
1124	1124	7 service in which the total salary or earnings calculated under
1125	1125	8 the applicable Article was the highest by the number of months
1126	1126	9 (or years) of service in that period. For the purposes of a
1127	1127	10 person who first becomes a member or participant of any
1128	1128	11 retirement system or pension fund to which this Section
1129	1129	12 applies on or after January 1, 2011, in this Code, "final
1130	1130	13 average salary" shall be substituted for the following:
1131	1131	14 (1) (Blank).
1132	1132	15 (2) In Articles 8, 9, 10, 11, and 12, "highest average
1133	1133	16 annual salary for any 4 consecutive years within the last
1134	1134	17 10 years of service immediately preceding the date of
1135	1135	18 withdrawal".
1136	1136	19 (3) In Article 13, "average final salary".
1137	1137	20 (4) In Article 14, "final average compensation".
1138	1138	21 (5) In Article 17, "average salary".
1139	1139	22 (6) In Section 22-207, "wages or salary received by
1140	1140	23 him at the date of retirement or discharge".
1141	1141	24 A member of the Teachers' Retirement System of the State
1142	1142	25 of Illinois who retires on or after June 1, 2021 and for whom
1143	1143	26 the 2020-2021 school year is used in the calculation of the
1144	1144
1145	1145
1146	1146
1147	1147
1148	1148
1149	1149	SB1690 - 31 - LRB103 26358 RPS 52719 b
1150	1150
1151	1151
1152	1152	SB1690- 32 -LRB103 26358 RPS 52719 b SB1690 - 32 - LRB103 26358 RPS 52719 b
1153	1153	SB1690 - 32 - LRB103 26358 RPS 52719 b
1154	1154	1 member's final average salary shall use the higher of the
1155	1155	2 following for the purpose of determining the member's final
1156	1156	3 average salary:
1157	1157	4 (A) the amount otherwise calculated under the first
1158	1158	5 paragraph of this subsection; or
1159	1159	6 (B) an amount calculated by the Teachers' Retirement
1160	1160	7 System of the State of Illinois using the average of the
1161	1161	8 monthly (or annual) salary obtained by dividing the total
1162	1162	9 salary or earnings calculated under Article 16 applicable
1163	1163	10 to the member or participant during the 96 months (or 8
1164	1164	11 years) of service within the last 120 months (or 10 years)
1165	1165	12 of service in which the total salary or earnings
1166	1166	13 calculated under the Article was the highest by the number
1167	1167	14 of months (or years) of service in that period.
1168	1168	15 (b-5) Beginning on January 1, 2011, for all purposes under
1169	1169	16 this Code (including without limitation the calculation of
1170	1170	17 benefits and employee contributions), the annual earnings,
1171	1171	18 salary, or wages (based on the plan year) of a member or
1172	1172	19 participant to whom this Section applies shall not exceed
1173	1173	20 $106,800; however, that amount shall annually thereafter be
1174	1174	21 increased by the lesser of (i) 3% of that amount, including all
1175	1175	22 previous adjustments, or (ii) one-half the annual unadjusted
1176	1176	23 percentage increase (but not less than zero) in the consumer
1177	1177	24 price index-u for the 12 months ending with the September
1178	1178	25 preceding each November 1, including all previous adjustments.
1179	1179	26 For the purposes of this Section, "consumer price index-u"
1180	1180
1181	1181
1182	1182
1183	1183
1184	1184
1185	1185	SB1690 - 32 - LRB103 26358 RPS 52719 b
1186	1186
1187	1187
1188	1188	SB1690- 33 -LRB103 26358 RPS 52719 b SB1690 - 33 - LRB103 26358 RPS 52719 b
1189	1189	SB1690 - 33 - LRB103 26358 RPS 52719 b
1190	1190	1 means the index published by the Bureau of Labor Statistics of
1191	1191	2 the United States Department of Labor that measures the
1192	1192	3 average change in prices of goods and services purchased by
1193	1193	4 all urban consumers, United States city average, all items,
1194	1194	5 1982-84 = 100. The new amount resulting from each annual
1195	1195	6 adjustment shall be determined by the Public Pension Division
1196	1196	7 of the Department of Insurance and made available to the
1197	1197	8 boards of the retirement systems and pension funds by November
1198	1198	9 1 of each year.
1199	1199	10 (b-10) Beginning on January 1, 2024, for all purposes
1200	1200	11 under this Code (including, without limitation, the
1201	1201	12 calculation of benefits and employee contributions), the
1202	1202	13 annual earnings, salary, or wages (based on the plan year) of a
1203	1203	14 member or participant under Article 9 to whom this Section
1204	1204	15 applies shall include an annual earnings, salary, or wage cap
1205	1205	16 that tracks the Social Security wage base. Maximum annual
1206	1206	17 earnings, wages, or salary shall be the annual contribution
1207	1207	18 and benefit base established for the applicable year by the
1208	1208	19 Commissioner of the Social Security Administration under the
1209	1209	20 federal Social Security Act.
1210	1210	21 However, in no event shall the annual earnings, salary, or
1211	1211	22 wages for the purposes of this Article and Article 9 exceed any
1212	1212	23 limitation imposed on annual earnings, salary, or wages under
1213	1213	24 Section 1-117. Under no circumstances shall the maximum amount
1214	1214	25 of annual earnings, salary, or wages be greater than the
1215	1215	26 amount set forth in this subsection (b-10) as a result of
1216	1216
1217	1217
1218	1218
1219	1219
1220	1220
1221	1221	SB1690 - 33 - LRB103 26358 RPS 52719 b
1222	1222
1223	1223
1224	1224	SB1690- 34 -LRB103 26358 RPS 52719 b SB1690 - 34 - LRB103 26358 RPS 52719 b
1225	1225	SB1690 - 34 - LRB103 26358 RPS 52719 b
1226	1226	1 reciprocal service or any provisions regarding reciprocal
1227	1227	2 services, nor shall the Fund under Article 9 be required to pay
1228	1228	3 any refund as a result of the application of this maximum
1229	1229	4 annual earnings, salary, and wage cap.
1230	1230	5 Nothing in this subsection (b-10) shall cause or otherwise
1231	1231	6 result in any retroactive adjustment of any employee
1232	1232	7 contributions. Nothing in this subsection (b-10) shall cause
1233	1233	8 or otherwise result in any retroactive adjustment of
1234	1234	9 disability or other payments made between January 1, 2011 and
1235	1235	10 January 1, 2024.
1236	1236	11 (c) A member or participant is entitled to a retirement
1237	1237	12 annuity upon written application if he or she has attained age
1238	1238	13 67 (age 65, with respect to service under Article 12 that is
1239	1239	14 subject to this Section, for a member or participant under
1240	1240	15 Article 12 who first becomes a member or participant under
1241	1241	16 Article 12 on or after January 1, 2022 or who makes the
1242	1242	17 election under item (i) of subsection (d-15) of this Section)
1243	1243	18 and has at least 10 years of service credit and is otherwise
1244	1244	19 eligible under the requirements of the applicable Article.
1245	1245	20 A member or participant who has attained age 62 (age 60,
1246	1246	21 with respect to service under Article 12 that is subject to
1247	1247	22 this Section, for a member or participant under Article 12 who
1248	1248	23 first becomes a member or participant under Article 12 on or
1249	1249	24 after January 1, 2022 or who makes the election under item (i)
1250	1250	25 of subsection (d-15) of this Section) and has at least 10 years
1251	1251	26 of service credit and is otherwise eligible under the
1252	1252
1253	1253
1254	1254
1255	1255
1256	1256
1257	1257	SB1690 - 34 - LRB103 26358 RPS 52719 b
1258	1258
1259	1259
1260	1260	SB1690- 35 -LRB103 26358 RPS 52719 b SB1690 - 35 - LRB103 26358 RPS 52719 b
1261	1261	SB1690 - 35 - LRB103 26358 RPS 52719 b
1262	1262	1 requirements of the applicable Article may elect to receive
1263	1263	2 the lower retirement annuity provided in subsection (d) of
1264	1264	3 this Section.
1265	1265	4 (c-5) A person who first becomes a member or a participant
1266	1266	5 subject to this Section on or after July 6, 2017 (the effective
1267	1267	6 date of Public Act 100-23), notwithstanding any other
1268	1268	7 provision of this Code to the contrary, is entitled to a
1269	1269	8 retirement annuity under Article 8 or Article 11 upon written
1270	1270	9 application if he or she has attained age 65 and has at least
1271	1271	10 10 years of service credit and is otherwise eligible under the
1272	1272	11 requirements of Article 8 or Article 11 of this Code,
1273	1273	12 whichever is applicable.
1274	1274	13 (d) The retirement annuity of a member or participant who
1275	1275	14 is retiring after attaining age 62 (age 60, with respect to
1276	1276	15 service under Article 12 that is subject to this Section, for a
1277	1277	16 member or participant under Article 12 who first becomes a
1278	1278	17 member or participant under Article 12 on or after January 1,
1279	1279	18 2022 or who makes the election under item (i) of subsection
1280	1280	19 (d-15) of this Section) with at least 10 years of service
1281	1281	20 credit shall be reduced by one-half of 1% for each full month
1282	1282	21 that the member's age is under age 67 (age 65, with respect to
1283	1283	22 service under Article 12 that is subject to this Section, for a
1284	1284	23 member or participant under Article 12 who first becomes a
1285	1285	24 member or participant under Article 12 on or after January 1,
1286	1286	25 2022 or who makes the election under item (i) of subsection
1287	1287	26 (d-15) of this Section).
1288	1288
1289	1289
1290	1290
1291	1291
1292	1292
1293	1293	SB1690 - 35 - LRB103 26358 RPS 52719 b
1294	1294
1295	1295
1296	1296	SB1690- 36 -LRB103 26358 RPS 52719 b SB1690 - 36 - LRB103 26358 RPS 52719 b
1297	1297	SB1690 - 36 - LRB103 26358 RPS 52719 b
1298	1298	1 (d-5) The retirement annuity payable under Article 8 or
1299	1299	2 Article 11 to an eligible person subject to subsection (c-5)
1300	1300	3 of this Section who is retiring at age 60 with at least 10
1301	1301	4 years of service credit shall be reduced by one-half of 1% for
1302	1302	5 each full month that the member's age is under age 65.
1303	1303	6 (d-10) Each person who first became a member or
1304	1304	7 participant under Article 8 or Article 11 of this Code on or
1305	1305	8 after January 1, 2011 and prior to July 6, 2017 (the effective
1306	1306	9 date of Public Act 100-23) shall make an irrevocable election
1307	1307	10 either:
1308	1308	11 (i) to be eligible for the reduced retirement age
1309	1309	12 provided in subsections (c-5) and (d-5) of this Section,
1310	1310	13 the eligibility for which is conditioned upon the member
1311	1311	14 or participant agreeing to the increases in employee
1312	1312	15 contributions for age and service annuities provided in
1313	1313	16 subsection (a-5) of Section 8-174 of this Code (for
1314	1314	17 service under Article 8) or subsection (a-5) of Section
1315	1315	18 11-170 of this Code (for service under Article 11); or
1316	1316	19 (ii) to not agree to item (i) of this subsection
1317	1317	20 (d-10), in which case the member or participant shall
1318	1318	21 continue to be subject to the retirement age provisions in
1319	1319	22 subsections (c) and (d) of this Section and the employee
1320	1320	23 contributions for age and service annuity as provided in
1321	1321	24 subsection (a) of Section 8-174 of this Code (for service
1322	1322	25 under Article 8) or subsection (a) of Section 11-170 of
1323	1323	26 this Code (for service under Article 11).
1324	1324
1325	1325
1326	1326
1327	1327
1328	1328
1329	1329	SB1690 - 36 - LRB103 26358 RPS 52719 b
1330	1330
1331	1331
1332	1332	SB1690- 37 -LRB103 26358 RPS 52719 b SB1690 - 37 - LRB103 26358 RPS 52719 b
1333	1333	SB1690 - 37 - LRB103 26358 RPS 52719 b
1334	1334	1 The election provided for in this subsection shall be made
1335	1335	2 between October 1, 2017 and November 15, 2017. A person
1336	1336	3 subject to this subsection who makes the required election
1337	1337	4 shall remain bound by that election. A person subject to this
1338	1338	5 subsection who fails for any reason to make the required
1339	1339	6 election within the time specified in this subsection shall be
1340	1340	7 deemed to have made the election under item (ii).
1341	1341	8 (d-15) Each person who first becomes a member or
1342	1342	9 participant under Article 12 on or after January 1, 2011 and
1343	1343	10 prior to January 1, 2022 shall make an irrevocable election
1344	1344	11 either:
1345	1345	12 (i) to be eligible for the reduced retirement age
1346	1346	13 specified in subsections (c) and (d) of this Section, the
1347	1347	14 eligibility for which is conditioned upon the member or
1348	1348	15 participant agreeing to the increase in employee
1349	1349	16 contributions for service annuities specified in
1350	1350	17 subsection (b) of Section 12-150; or
1351	1351	18 (ii) to not agree to item (i) of this subsection
1352	1352	19 (d-15), in which case the member or participant shall not
1353	1353	20 be eligible for the reduced retirement age specified in
1354	1354	21 subsections (c) and (d) of this Section and shall not be
1355	1355	22 subject to the increase in employee contributions for
1356	1356	23 service annuities specified in subsection (b) of Section
1357	1357	24 12-150.
1358	1358	25 The election provided for in this subsection shall be made
1359	1359	26 between January 1, 2022 and April 1, 2022. A person subject to
1360	1360
1361	1361
1362	1362
1363	1363
1364	1364
1365	1365	SB1690 - 37 - LRB103 26358 RPS 52719 b
1366	1366
1367	1367
1368	1368	SB1690- 38 -LRB103 26358 RPS 52719 b SB1690 - 38 - LRB103 26358 RPS 52719 b
1369	1369	SB1690 - 38 - LRB103 26358 RPS 52719 b
1370	1370	1 this subsection who makes the required election shall remain
1371	1371	2 bound by that election. A person subject to this subsection
1372	1372	3 who fails for any reason to make the required election within
1373	1373	4 the time specified in this subsection shall be deemed to have
1374	1374	5 made the election under item (ii).
1375	1375	6 (e) Any retirement annuity or supplemental annuity shall
1376	1376	7 be subject to annual increases on the January 1 occurring
1377	1377	8 either on or after the attainment of age 67 (age 65, with
1378	1378	9 respect to service under Article 12 that is subject to this
1379	1379	10 Section, for a member or participant under Article 12 who
1380	1380	11 first becomes a member or participant under Article 12 on or
1381	1381	12 after January 1, 2022 or who makes the election under item (i)
1382	1382	13 of subsection (d-15); and beginning on July 6, 2017 (the
1383	1383	14 effective date of Public Act 100-23), age 65 with respect to
1384	1384	15 service under Article 8 or Article 11 for eligible persons
1385	1385	16 who: (i) are subject to subsection (c-5) of this Section; or
1386	1386	17 (ii) made the election under item (i) of subsection (d-10) of
1387	1387	18 this Section) or the first anniversary of the annuity start
1388	1388	19 date, whichever is later. Each annual increase shall be
1389	1389	20 calculated at 3% or one-half the annual unadjusted percentage
1390	1390	21 increase (but not less than zero) in the consumer price
1391	1391	22 index-u for the 12 months ending with the September preceding
1392	1392	23 each November 1, whichever is less, of the originally granted
1393	1393	24 retirement annuity. If the annual unadjusted percentage change
1394	1394	25 in the consumer price index-u for the 12 months ending with the
1395	1395	26 September preceding each November 1 is zero or there is a
1396	1396
1397	1397
1398	1398
1399	1399
1400	1400
1401	1401	SB1690 - 38 - LRB103 26358 RPS 52719 b
1402	1402
1403	1403
1404	1404	SB1690- 39 -LRB103 26358 RPS 52719 b SB1690 - 39 - LRB103 26358 RPS 52719 b
1405	1405	SB1690 - 39 - LRB103 26358 RPS 52719 b
1406	1406	1 decrease, then the annuity shall not be increased.
1407	1407	2 For the purposes of Section 1-103.1 of this Code, the
1408	1408	3 changes made to this Section by Public Act 102-263 are
1409	1409	4 applicable without regard to whether the employee was in
1410	1410	5 active service on or after August 6, 2021 (the effective date
1411	1411	6 of Public Act 102-263).
1412	1412	7 For the purposes of Section 1-103.1 of this Code, the
1413	1413	8 changes made to this Section by Public Act 100-23 are
1414	1414	9 applicable without regard to whether the employee was in
1415	1415	10 active service on or after July 6, 2017 (the effective date of
1416	1416	11 Public Act 100-23).
1417	1417	12 (f) The initial survivor's or widow's annuity of an
1418	1418	13 otherwise eligible survivor or widow of a retired member or
1419	1419	14 participant who first became a member or participant on or
1420	1420	15 after January 1, 2011 shall be in the amount of 66 2/3% of the
1421	1421	16 retired member's or participant's retirement annuity at the
1422	1422	17 date of death. In the case of the death of a member or
1423	1423	18 participant who has not retired and who first became a member
1424	1424	19 or participant on or after January 1, 2011, eligibility for a
1425	1425	20 survivor's or widow's annuity shall be determined by the
1426	1426	21 applicable Article of this Code. The initial benefit shall be
1427	1427	22 66 2/3% of the earned annuity without a reduction due to age. A
1428	1428	23 child's annuity of an otherwise eligible child shall be in the
1429	1429	24 amount prescribed under each Article if applicable. Any
1430	1430	25 survivor's or widow's annuity shall be increased (1) on each
1431	1431	26 January 1 occurring on or after the commencement of the
1432	1432
1433	1433
1434	1434
1435	1435
1436	1436
1437	1437	SB1690 - 39 - LRB103 26358 RPS 52719 b
1438	1438
1439	1439
1440	1440	SB1690- 40 -LRB103 26358 RPS 52719 b SB1690 - 40 - LRB103 26358 RPS 52719 b
1441	1441	SB1690 - 40 - LRB103 26358 RPS 52719 b
1442	1442	1 annuity if the deceased member died while receiving a
1443	1443	2 retirement annuity or (2) in other cases, on each January 1
1444	1444	3 occurring after the first anniversary of the commencement of
1445	1445	4 the annuity. Each annual increase shall be calculated at 3% or
1446	1446	5 one-half the annual unadjusted percentage increase (but not
1447	1447	6 less than zero) in the consumer price index-u for the 12 months
1448	1448	7 ending with the September preceding each November 1, whichever
1449	1449	8 is less, of the originally granted survivor's annuity. If the
1450	1450	9 annual unadjusted percentage change in the consumer price
1451	1451	10 index-u for the 12 months ending with the September preceding
1452	1452	11 each November 1 is zero or there is a decrease, then the
1453	1453	12 annuity shall not be increased.
1454	1454	13 (g) The benefits in Section 14-110 apply only if the
1455	1455	14 person is a State policeman, a fire fighter in the fire
1456	1456	15 protection service of a department, a conservation police
1457	1457	16 officer, an investigator for the Secretary of State, an
1458	1458	17 investigator for the Office of the Attorney General, an arson
1459	1459	18 investigator, a Commerce Commission police officer,
1460	1460	19 investigator for the Department of Revenue or the Illinois
1461	1461	20 Gaming Board, a security employee of the Department of
1462	1462	21 Corrections or the Department of Juvenile Justice, or a
1463	1463	22 security employee of the Department of Innovation and
1464	1464	23 Technology, as those terms are defined in subsection (b) and
1465	1465	24 subsection (c) of Section 14-110. A person who meets the
1466	1466	25 requirements of this Section is entitled to an annuity
1467	1467	26 calculated under the provisions of Section 14-110, in lieu of
1468	1468
1469	1469
1470	1470
1471	1471
1472	1472
1473	1473	SB1690 - 40 - LRB103 26358 RPS 52719 b
1474	1474
1475	1475
1476	1476	SB1690- 41 -LRB103 26358 RPS 52719 b SB1690 - 41 - LRB103 26358 RPS 52719 b
1477	1477	SB1690 - 41 - LRB103 26358 RPS 52719 b
1478	1478	1 the regular or minimum retirement annuity, only if the person
1479	1479	2 has withdrawn from service with not less than 20 years of
1480	1480	3 eligible creditable service and has attained age 60,
1481	1481	4 regardless of whether the attainment of age 60 occurs while
1482	1482	5 the person is still in service.
1483	1483	6 (h) If a person who first becomes a member or a participant
1484	1484	7 of a retirement system or pension fund subject to this Section
1485	1485	8 on or after January 1, 2011 is receiving a retirement annuity
1486	1486	9 or retirement pension under that system or fund and becomes a
1487	1487	10 member or participant under any other system or fund created
1488	1488	11 by this Code and is employed on a full-time basis, except for
1489	1489	12 those members or participants exempted from the provisions of
1490	1490	13 this Section under subsection (a) of this Section, then the
1491	1491	14 person's retirement annuity or retirement pension under that
1492	1492	15 system or fund shall be suspended during that employment. Upon
1493	1493	16 termination of that employment, the person's retirement
1494	1494	17 annuity or retirement pension payments shall resume and be
1495	1495	18 recalculated if recalculation is provided for under the
1496	1496	19 applicable Article of this Code.
1497	1497	20 If a person who first becomes a member of a retirement
1498	1498	21 system or pension fund subject to this Section on or after
1499	1499	22 January 1, 2012 and is receiving a retirement annuity or
1500	1500	23 retirement pension under that system or fund and accepts on a
1501	1501	24 contractual basis a position to provide services to a
1502	1502	25 governmental entity from which he or she has retired, then
1503	1503	26 that person's annuity or retirement pension earned as an
1504	1504
1505	1505
1506	1506
1507	1507
1508	1508
1509	1509	SB1690 - 41 - LRB103 26358 RPS 52719 b
1510	1510
1511	1511
1512	1512	SB1690- 42 -LRB103 26358 RPS 52719 b SB1690 - 42 - LRB103 26358 RPS 52719 b
1513	1513	SB1690 - 42 - LRB103 26358 RPS 52719 b
1514	1514	1 active employee of the employer shall be suspended during that
1515	1515	2 contractual service. A person receiving an annuity or
1516	1516	3 retirement pension under this Code shall notify the pension
1517	1517	4 fund or retirement system from which he or she is receiving an
1518	1518	5 annuity or retirement pension, as well as his or her
1519	1519	6 contractual employer, of his or her retirement status before
1520	1520	7 accepting contractual employment. A person who fails to submit
1521	1521	8 such notification shall be guilty of a Class A misdemeanor and
1522	1522	9 required to pay a fine of $1,000. Upon termination of that
1523	1523	10 contractual employment, the person's retirement annuity or
1524	1524	11 retirement pension payments shall resume and, if appropriate,
1525	1525	12 be recalculated under the applicable provisions of this Code.
1526	1526	13 (i) (Blank).
1527	1527	14 (j) In the case of a conflict between the provisions of
1528	1528	15 this Section and any other provision of this Code, the
1529	1529	16 provisions of this Section shall control.
1530	1530	17 (Source: P.A. 101-610, eff. 1-1-20; 102-16, eff. 6-17-21;
1531	1531	18 102-210, eff. 1-1-22; 102-263, eff. 8-6-21; 102-956, eff.
1532	1532	19 5-27-22.)
1533	1533	20 (40 ILCS 5/9-169) (from Ch. 108 1/2, par. 9-169)
1534	1534	21 Sec. 9-169. Financing; tax Financing - Tax levy and other
1535	1535	22 funding sources.
1536	1536	23 (a) The county board shall levy a tax annually upon all
1537	1537	24 taxable property in the county at the rate that will produce a
1538	1538	25 sum which, when added to the amounts deducted from the
1539	1539
1540	1540
1541	1541
1542	1542
1543	1543
1544	1544	SB1690 - 42 - LRB103 26358 RPS 52719 b
1545	1545
1546	1546
1547	1547	SB1690- 43 -LRB103 26358 RPS 52719 b SB1690 - 43 - LRB103 26358 RPS 52719 b
1548	1548	SB1690 - 43 - LRB103 26358 RPS 52719 b
1549	1549	1 salaries of the employees or otherwise contributed by them is
1550	1550	2 sufficient for the requirements of this Article.
1551	1551	3 For the years before 1962 the tax rate shall be as provided
1552	1552	4 in "The 1925 Act". For the years 1962 and 1963 the tax rate
1553	1553	5 shall be not more than .0200 per cent; for the years 1964 and
1554	1554	6 1965 the tax rate shall be not more than .0202 per cent; for
1555	1555	7 the years 1966 and 1967 the tax rate shall be not more than
1556	1556	8 .0207 per cent; for the year 1968 the tax rate shall be not
1557	1557	9 more than .0220 per cent; for the year 1969 the tax rate shall
1558	1558	10 be not more than .0233 per cent; for the year 1970 the tax rate
1559	1559	11 shall be not more than .0255 per cent; for the year 1971 the
1560	1560	12 tax rate shall be not more than .0268 per cent of the value, as
1561	1561	13 equalized or assessed by the Department of Revenue upon all
1562	1562	14 taxable property in the county. Beginning with the year 1972
1563	1563	15 and for each year thereafter the county shall levy a tax
1564	1564	16 annually at a rate on the dollar of the value, as equalized or
1565	1565	17 assessed by the Department of Revenue of all taxable property
1566	1566	18 within the county that will produce, when extended, not to
1567	1567	19 exceed an amount equal to the total amount of contributions
1568	1568	20 made by the employees to the fund in the calendar year 2 years
1569	1569	21 prior to the year for which the annual applicable tax is levied
1570	1570	22 multiplied by .8 for the years 1972 through 1976; by .8 for the
1571	1571	23 year 1977; by .87 for the year 1978; by .94 for the year 1979;
1572	1572	24 by 1.02 for the year 1980 and by 1.10 for the year 1981 and by
1573	1573	25 1.18 for the year 1982 and by 1.36 for the year 1983 and by
1574	1574	26 1.54 for the year 1984 and for each year thereafter.
1575	1575
1576	1576
1577	1577
1578	1578
1579	1579
1580	1580	SB1690 - 43 - LRB103 26358 RPS 52719 b
1581	1581
1582	1582
1583	1583	SB1690- 44 -LRB103 26358 RPS 52719 b SB1690 - 44 - LRB103 26358 RPS 52719 b
1584	1584	SB1690 - 44 - LRB103 26358 RPS 52719 b
1585	1585	1 This tax shall be levied and collected in like manner with
1586	1586	2 the general taxes of the county, and shall be in addition to
1587	1587	3 all other taxes which the county is authorized to levy upon the
1588	1588	4 aggregate valuation of all taxable property within the county
1589	1589	5 and shall be exclusive of and in addition to the amount of tax
1590	1590	6 the county is authorized to levy for general purposes under
1591	1591	7 any laws which may limit the amount of tax which the county may
1592	1592	8 levy for general purposes. The county clerk, in reducing tax
1593	1593	9 levies under any Act concerning the levy and extension of
1594	1594	10 taxes, shall not consider this tax as a part of the general tax
1595	1595	11 levy for county purposes, and shall not include it within any
1596	1596	12 limitation of the per cent of the assessed valuation upon
1597	1597	13 which taxes are required to be extended for the county. It is
1598	1598	14 lawful to extend this tax in addition to the general county
1599	1599	15 rate fixed by statute, without being authorized as additional
1600	1600	16 by a vote of the people of the county.
1601	1601	17 Revenues derived from this tax shall be paid to the
1602	1602	18 treasurer of the county and held by the treasurer him for the
1603	1603	19 benefit of the fund.
1604	1604	20 If the payments on account of taxes are insufficient
1605	1605	21 during any year to meet the requirements of this Article, the
1606	1606	22 county may issue tax anticipation warrants against the current
1607	1607	23 tax levy.
1608	1608	24 (b) By January 10, annually, the board shall notify the
1609	1609	25 county board of the requirement of this Article that this tax
1610	1610	26 shall be levied. The board shall make an annual determination
1611	1611
1612	1612
1613	1613
1614	1614
1615	1615
1616	1616	SB1690 - 44 - LRB103 26358 RPS 52719 b
1617	1617
1618	1618
1619	1619	SB1690- 45 -LRB103 26358 RPS 52719 b SB1690 - 45 - LRB103 26358 RPS 52719 b
1620	1620	SB1690 - 45 - LRB103 26358 RPS 52719 b
1621	1621	1 of the required county contributions, and shall certify the
1622	1622	2 results thereof to the county board.
1623	1623	3 (c) Beginning in the year 2024, the county's minimum
1624	1624	4 required employer contribution as provided in Section 9-169.2
1625	1625	5 shall be paid with the portion of the tax levy as provided in
1626	1626	6 subsection (a) of this Section and any other lawfully
1627	1627	7 available funds of the county. The county shall, through its
1628	1628	8 appropriation bill, disburse to and deposit with the county
1629	1629	9 treasurer no later than the final day of the fiscal year that
1630	1630	10 corresponds to said appropriation bill, for the benefit of the
1631	1631	11 Fund, to be held in accordance with this Article, an amount
1632	1632	12 that, together with such real estate taxes as are specifically
1633	1633	13 levied under this Section for that year, is not less than the
1634	1634	14 amount of the required minimum required employer contribution
1635	1635	15 for that year as certified by the Fund to the county board. The
1636	1636	16 deposit may be derived from any source otherwise legally
1637	1637	17 available to the county for that purpose, including, but not
1638	1638	18 limited to, home rule taxes. The making of a deposit shall
1639	1639	19 satisfy fully the requirements of this Section for that year
1640	1640	20 to the extent of the amounts so deposited. Amounts deposited
1641	1641	21 under this subsection may be used by the Fund for any of the
1642	1642	22 purposes for which the proceeds of real estate taxes levied by
1643	1643	23 the county under this Section may otherwise be used, including
1644	1644	24 the payment of any amount that is otherwise required by this
1645	1645	25 Article to be paid from the proceeds of that tax. However,
1646	1646	26 beginning January 1, 2025, the Fund shall not use any
1647	1647
1648	1648
1649	1649
1650	1650
1651	1651
1652	1652	SB1690 - 45 - LRB103 26358 RPS 52719 b
1653	1653
1654	1654
1655	1655	SB1690- 46 -LRB103 26358 RPS 52719 b SB1690 - 46 - LRB103 26358 RPS 52719 b
1656	1656	SB1690 - 46 - LRB103 26358 RPS 52719 b
1657	1657	1 contributions received by the Fund under this Section to
1658	1658	2 provide a subsidy for the cost of participation in an
1659	1659	3 annuitant health care program. If the county, before the
1660	1660	4 effective date of this amendatory Act of the 103rd General
1661	1661	5 Assembly, made a contribution or agreed to make a contribution
1662	1662	6 to the Fund from sources other than real estate taxes, this
1663	1663	7 paragraph confirms the validity of or ratifies such
1664	1664	8 contribution or agreement, and neither the county nor any of
1665	1665	9 its officers or employees shall be required to answer for such
1666	1666	10 contribution or agreement in any court. The various sums to be
1667	1667	11 contributed by the county board and allocated for the purposes
1668	1668	12 of this Article and any interest to be contributed by the
1669	1669	13 county shall be taken from the revenue derived from this tax
1670	1670	14 and no money of the county derived from any source other than
1671	1671	15 the levy and collection of this tax or the sale of tax
1672	1672	16 anticipation warrants, except state or federal funds
1673	1673	17 contributed for annuity and benefit purposes for employees of
1674	1674	18 a county department of public aid under "The Illinois Public
1675	1675	19 Aid Code", approved April 11, 1967, as now or hereafter
1676	1676	20 amended, may be used to provide revenue for the fund.
1677	1677	21 If it is not possible or practicable for the county to make
1678	1678	22 contributions for age and service annuity and widow's annuity
1679	1679	23 concurrently with the employee contributions made for such
1680	1680	24 purposes, such county shall make such contributions as soon as
1681	1681	25 possible and practicable thereafter with interest thereon at
1682	1682	26 the effective rate until the time it shall be made.
1683	1683
1684	1684
1685	1685
1686	1686
1687	1687
1688	1688	SB1690 - 46 - LRB103 26358 RPS 52719 b
1689	1689
1690	1690
1691	1691	SB1690- 47 -LRB103 26358 RPS 52719 b SB1690 - 47 - LRB103 26358 RPS 52719 b
1692	1692	SB1690 - 47 - LRB103 26358 RPS 52719 b
1693	1693	1 (d) With respect to employees whose wages are funded as
1694	1694	2 participants under the Comprehensive Employment and Training
1695	1695	3 Act of 1973, as amended (P.L. 93-203, 87 Stat. 839, P.L.
1696	1696	4 93-567, 88 Stat. 1845), hereinafter referred to as CETA,
1697	1697	5 subsequent to October 1, 1978, and in instances where the
1698	1698	6 board has elected to establish a manpower program reserve, the
1699	1699	7 board shall compute the amounts necessary to be credited to
1700	1700	8 the manpower program reserves established and maintained as
1701	1701	9 herein provided, and shall make a periodic determination of
1702	1702	10 the amount of required contributions from the County to the
1703	1703	11 reserve to be reimbursed by the federal government in
1704	1704	12 accordance with rules and regulations established by the
1705	1705	13 Secretary of the United States Department of Labor or his
1706	1706	14 designee, and certify the results thereof to the County Board.
1707	1707	15 Any such amounts shall become a credit to the County and will
1708	1708	16 be used to reduce the amount which the County would otherwise
1709	1709	17 contribute during succeeding years for all employees.
1710	1710	18 (e) In lieu of establishing a manpower program reserve
1711	1711	19 with respect to employees whose wages are funded as
1712	1712	20 participants under the Comprehensive Employment and Training
1713	1713	21 Act of 1973, as authorized by subsection (d), the board may
1714	1714	22 elect to establish a special County contribution rate for all
1715	1715	23 such employees. If this option is elected, the County shall
1716	1716	24 contribute to the Fund from federal funds provided under the
1717	1717	25 Comprehensive Employment and Training Act program at the
1718	1718	26 special rate so established and such contributions shall
1719	1719
1720	1720
1721	1721
1722	1722
1723	1723
1724	1724	SB1690 - 47 - LRB103 26358 RPS 52719 b
1725	1725
1726	1726
1727	1727	SB1690- 48 -LRB103 26358 RPS 52719 b SB1690 - 48 - LRB103 26358 RPS 52719 b
1728	1728	SB1690 - 48 - LRB103 26358 RPS 52719 b
1729	1729	1 become a credit to the County and be used to reduce the amount
1730	1730	2 which the County would otherwise contribute during succeeding
1731	1731	3 years for all employees.
1732	1732	4 (Source: P.A. 95-369, eff. 8-23-07.)
1733	1733	5 (40 ILCS 5/9-169.1 new)
1734	1734	6 Sec. 9-169.1. Annual actuarial report. The retirement
1735	1735	7 board shall retain an actuary who is a member in good standing
1736	1736	8 of the American Academy of Actuaries to produce an annual
1737	1737	9 actuarial report of the Fund. The annual actuarial report
1738	1738	10 shall include, but not be limited to: (1) a statement of the
1739	1739	11 minimum required contribution, the actuarial value of the
1740	1740	12 Fund's assets as projected over at least 30 years' time, and
1741	1741	13 the actuarial value of the Fund's liabilities as projected
1742	1742	14 over the same period of time; and (2) the minimum required
1743	1743	15 employer contribution, as determined under Section 9-169.2,
1744	1744	16 for the second year immediately following the year ending on
1745	1745	17 the valuation date upon which the annual actuarial report is
1746	1746	18 based.
1747	1747	19 The annual actuarial report may be prepared as part of the
1748	1748	20 annual audit required under Section 9-195. The annual
1749	1749	21 actuarial report shall be reviewed and formally adopted by the
1750	1750	22 retirement board and shall be included in the annual report
1751	1751	23 that is required to be submitted to the county in July of each
1752	1752	24 year under Section 9-199.
1753	1753	25 In this Section, "valuation date" means the date that the
1754	1754
1755	1755
1756	1756
1757	1757
1758	1758
1759	1759	SB1690 - 48 - LRB103 26358 RPS 52719 b
1760	1760
1761	1761
1762	1762	SB1690- 49 -LRB103 26358 RPS 52719 b SB1690 - 49 - LRB103 26358 RPS 52719 b
1763	1763	SB1690 - 49 - LRB103 26358 RPS 52719 b
1764	1764	1 value of the assets and liabilities of the Fund is based on in
1765	1765	2 the annual actuarial report.
1766	1766	3 (40 ILCS 5/9-169.2 new)
1767	1767	4 Sec. 9-169.2. Minimum required employer contribution. The
1768	1768	5 minimum required employer contribution for a specified year,
1769	1769	6 as set forth in the annual actuarial report required under
1770	1770	7 Section 9-169.1, shall be the amount determined by the Fund's
1771	1771	8 actuary to be equal to the sum of: (i) the projected normal
1772	1772	9 cost for pensions for that fiscal year based on the entry age
1773	1773	10 actuarial cost method, plus (ii) a projected unfunded
1774	1774	11 actuarial accrued liability amortization payment for pensions
1775	1775	12 for the fiscal year, plus (iii) projected expenses for that
1776	1776	13 fiscal year, plus (iv) interest to adjust for payment pattern
1777	1777	14 during the fiscal year, less (v) projected employee
1778	1778	15 contributions for that fiscal year.
1779	1779	16 The minimum required employer contribution for the next
1780	1780	17 year shall be submitted annually by the county on or before
1781	1781	18 June 14 of each year unless another time frame is agreed upon
1782	1782	19 by the county and the Fund. Beginning January 1, 2030, the
1783	1783	20 methods provided in this Section may be amended as recommended
1784	1784	21 by an independent actuary engaged by the Fund and in
1785	1785	22 compliance with actuarial standards of practice and as adopted
1786	1786	23 by an affirmative vote of a majority of the retirement board
1787	1787	24 and the Cook County Board of Commissioners. Any new methods to
1788	1788	25 calculate the minimum required employer contribution adopted
1789	1789
1790	1790
1791	1791
1792	1792
1793	1793
1794	1794	SB1690 - 49 - LRB103 26358 RPS 52719 b
1795	1795
1796	1796
1797	1797	SB1690- 50 -LRB103 26358 RPS 52719 b SB1690 - 50 - LRB103 26358 RPS 52719 b
1798	1798	SB1690 - 50 - LRB103 26358 RPS 52719 b
1799	1799	1 under this Section shall be used in the annual actuarial
1800	1800	2 report and any other required financial reporting.
1801	1801	3 For the purposes of this Section:
1802	1802	4 "5-Year smoothed actuarial value of assets" means the
1803	1803	5 value of assets as determined by a method that spreads the
1804	1804	6 effect of each year's investment return in excess of or below
1805	1805	7 the expected return.
1806	1806	8 "Actuarial standards" means standards for appropriate
1807	1807	9 actuarial practice in the United States as defined by the
1808	1808	10 Actuarial Standards Board.
1809	1809	11 "Entry age actuarial cost method" means a method of
1810	1810	12 determining the normal cost and is determined as a level
1811	1811	13 percentage of pay that, if paid from entry age to the assumed
1812	1812	14 retirement age, assuming all the actuarial assumptions are
1813	1813	15 exactly met by experience and no changes in assumptions or
1814	1814	16 benefit provisions, would accumulate to a fund sufficient to
1815	1815	17 pay all benefits provided by the Fund.
1816	1816	18 "Layered amortization" means a technique that separately
1817	1817	19 layers the different components of the unfunded actuarial
1818	1818	20 accrued liabilities to be amortized over a fixed period not to
1819	1819	21 exceed 30 years.
1820	1820	22 "Projected expenses" means the projected administrative
1821	1821	23 expenses for the cost of administrating the Fund.
1822	1822	24 "Projected normal costs for pensions" means the cost of
1823	1823	25 the benefits that accrue during the year for active members
1824	1824	26 under the entry age actuarial cost method.
1825	1825
1826	1826
1827	1827
1828	1828
1829	1829
1830	1830	SB1690 - 50 - LRB103 26358 RPS 52719 b
1831	1831
1832	1832
1833	1833	SB1690- 51 -LRB103 26358 RPS 52719 b SB1690 - 51 - LRB103 26358 RPS 52719 b
1834	1834	SB1690 - 51 - LRB103 26358 RPS 52719 b
1835	1835	1 "Unfunded actuarial accrued liability amortization
1836	1836	2 payment" means the annual contribution to the difference
1837	1837	3 between the values of assets and the accrued liabilities of
1838	1838	4 the plan, calculated by an actuary, needed to amortize the
1839	1839	5 Fund's liabilities over a period of 30 years starting in 2017,
1840	1840	6 with layered amortization of the Fund's unexpected unfunded
1841	1841	7 actuarial accrued liability amortization payment following
1842	1842	8 2017 in periods of 30 years, with amortization payments
1843	1843	9 increasing 2% per year, and reflecting a discount rate for all
1844	1844	10 liabilities consistent with the assumed investment rate of
1845	1845	11 return on fund assets and a 5-year smoothed actuarial value of
1846	1846	12 assets.
1847	1847	13 (40 ILCS 5/9-179.1) (from Ch. 108 1/2, par. 9-179.1)
1848	1848	14 Sec. 9-179.1. Military service. A contributing employee as
1849	1849	15 of January 1, 1993 with at least 25 years of service credit may
1850	1850	16 apply for creditable service for up to 2 years of military
1851	1851	17 service whether or not the military service followed service
1852	1852	18 as a county employee. The military service need not have been
1853	1853	19 served in wartime, but the employee must not have been
1854	1854	20 dishonorably discharged. To establish this creditable service
1855	1855	21 the applicant must pay to the Fund, while in the service of the
1856	1856	22 county, an amount determined by the Fund to represent the
1857	1857	23 employee contributions for the creditable service established,
1858	1858	24 based on the employee's rate of compensation on his or her last
1859	1859	25 day as a contributor before the military service, or on his or
1860	1860
1861	1861
1862	1862
1863	1863
1864	1864
1865	1865	SB1690 - 51 - LRB103 26358 RPS 52719 b
1866	1866
1867	1867
1868	1868	SB1690- 52 -LRB103 26358 RPS 52719 b SB1690 - 52 - LRB103 26358 RPS 52719 b
1869	1869	SB1690 - 52 - LRB103 26358 RPS 52719 b
1870	1870	1 her first day as a contributor after the military service,
1871	1871	2 whichever is greater, plus interest at the effective rate from
1872	1872	3 the date of discharge to the date of payment. If a person who
1873	1873	4 has established any credit under this Section applies for or
1874	1874	5 receives any early retirement incentive under Section 9-134.2,
1875	1875	6 the credit under this Section shall be forfeited and the
1876	1876	7 amount paid to the Fund under this Section shall be refunded.
1877	1877	8 (Source: P.A. 87-1265.)
1878	1878	9 (40 ILCS 5/9-184) (from Ch. 108 1/2, par. 9-184)
1879	1879	10 Sec. 9-184. Estimates of sums required for certain
1880	1880	11 annuities and benefits. The board shall estimate and itemize
1881	1881	12 the amounts required each year to pay for all annuities, each
1882	1882	13 benefit, and benefits and administrative expenses associated
1883	1883	14 with this Article, by way of a written report and request to
1884	1884	15 the County Board of Commissioners. The amounts shall be paid
1885	1885	16 into the fund annually by the county as provided in Section
1886	1886	17 9-169 from the prescribed tax levy.
1887	1887	18 (Source: Laws 1963, p. 161.)
1888	1888	19 (40 ILCS 5/9-185) (from Ch. 108 1/2, par. 9-185)
1889	1889	20 Sec. 9-185. Board created.
1890	1890	21 (a) A board of 9 members shall constitute the board of
1891	1891	22 trustees authorized to carry out the provisions of this
1892	1892	23 Article. The board of trustees shall be known as "The
1893	1893	24 Retirement Board of the County Employees' Annuity and Benefit
1894	1894
1895	1895
1896	1896
1897	1897
1898	1898
1899	1899	SB1690 - 52 - LRB103 26358 RPS 52719 b
1900	1900
1901	1901
1902	1902	SB1690- 53 -LRB103 26358 RPS 52719 b SB1690 - 53 - LRB103 26358 RPS 52719 b
1903	1903	SB1690 - 53 - LRB103 26358 RPS 52719 b
1904	1904	1 Fund of .... County". The board shall consist of 2 members
1905	1905	2 appointed and 7 members elected as hereinafter prescribed.
1906	1906	3 Beginning on December 1, 2023, the board shall increase to an
1907	1907	4 11-member board with the president of the county having 2
1908	1908	5 appointments as provided in subsection (b).
1909	1909	6 (b) The appointed members shall be appointed as follows:
1910	1910	7 One member shall be appointed by the comptroller of such
1911	1911	8 county, who may be the comptroller or some person chosen by the
1912	1912	9 comptroller him from among employees of the county, who are
1913	1913	10 versed in the affairs of the comptroller's office; and one
1914	1914	11 member shall be appointed by the treasurer of such county, who
1915	1915	12 may be the treasurer or some person chosen by the treasurer him
1916	1916	13 from among employees of the County who are versed in the
1917	1917	14 affairs of the treasurer's office. The president of such
1918	1918	15 county shall appoint 2 members who shall have experience and
1919	1919	16 expertise directly related to the operations, affairs, or
1920	1920	17 fiscal condition of pensions; health care benefits management;
1921	1921	18 public investments; or actuarial practice.
1922	1922	19 The member appointed by the comptroller shall hold office
1923	1923	20 for a term ending on December 1st of the first year following
1924	1924	21 the year of appointment. The member appointed by the county
1925	1925	22 treasurer shall hold office for a term ending on December 1st
1926	1926	23 of the second year following the year of appointment. The
1927	1927	24 members appointed by the president of the county shall hold
1928	1928	25 office for a term ending on December 1 of the second year
1929	1929	26 following the appointment.
1930	1930
1931	1931
1932	1932
1933	1933
1934	1934
1935	1935	SB1690 - 53 - LRB103 26358 RPS 52719 b
1936	1936
1937	1937
1938	1938	SB1690- 54 -LRB103 26358 RPS 52719 b SB1690 - 54 - LRB103 26358 RPS 52719 b
1939	1939	SB1690 - 54 - LRB103 26358 RPS 52719 b
1940	1940	1 Thereafter, each appointed member shall be appointed by
1941	1941	2 the officer that appointed the his predecessor for a term of 2
1942	1942	3 years.
1943	1943	4 (c) Three county employee members of the board shall be
1944	1944	5 elected as follows: within 30 days from and after the date upon
1945	1945	6 which this Article comes into effect in the county, the clerk
1946	1946	7 of the county shall arrange for and hold an election. One
1947	1947	8 employee shall be elected for a term ending on the first day in
1948	1948	9 the month of December of the first year next following the
1949	1949	10 effective date; one for a term ending on December 1st of the
1950	1950	11 following year; and one for a term ending December 1st of the
1951	1951	12 second following year.
1952	1952	13 (d) Beginning December 1, 1988, and every 3 years
1953	1953	14 thereafter, an annuitant member of the board shall be elected
1954	1954	15 as follows: the board shall arrange for and hold an election in
1955	1955	16 which only those participants who are currently receiving
1956	1956	17 retirement benefits under this Article shall be eligible to
1957	1957	18 vote and be elected. Each such member shall be elected to a
1958	1958	19 term ending on the first day in the month of December of the
1959	1959	20 third following year.
1960	1960	21 (d-1) Beginning December 1, 2001, and every 3 years
1961	1961	22 thereafter, an annuitant member of the board shall be elected
1962	1962	23 as follows: the board shall arrange for and hold an election in
1963	1963	24 which only those participants who are currently receiving
1964	1964	25 retirement benefits under this Article shall be eligible to
1965	1965	26 vote and be elected. Each such member shall be elected to a
1966	1966
1967	1967
1968	1968
1969	1969
1970	1970
1971	1971	SB1690 - 54 - LRB103 26358 RPS 52719 b
1972	1972
1973	1973
1974	1974	SB1690- 55 -LRB103 26358 RPS 52719 b SB1690 - 55 - LRB103 26358 RPS 52719 b
1975	1975	SB1690 - 55 - LRB103 26358 RPS 52719 b
1976	1976	1 term ending on the first day in the month of December of the
1977	1977	2 third following year. Until December 1, 2001, the position
1978	1978	3 created under this subsection (d-1) may be filled by the board
1979	1979	4 as in the case of a vacancy.
1980	1980	5 (e) Beginning December 1, 1988, if a Forest Preserve
1981	1981	6 District Employees' Annuity and Benefit Fund shall be in force
1982	1982	7 in such county and the board of this fund is charged with
1983	1983	8 administering the affairs of such annuity and benefit fund for
1984	1984	9 employees of such forest preserve district, a forest preserve
1985	1985	10 district member of the board shall be elected as of December 1,
1986	1986	11 1988, and every 3 years thereafter as follows: the board shall
1987	1987	12 arrange for and hold an election in which only those employees
1988	1988	13 of such forest preserve district who are contributors to the
1989	1989	14 annuity and benefit fund for employees of such forest preserve
1990	1990	15 district shall be eligible to vote and be elected. Each such
1991	1991	16 member shall be elected to a term ending on the first day in
1992	1992	17 the month of December of the third following year.
1993	1993	18 (f) Beginning December 1, 2001, and every 3 years
1994	1994	19 thereafter, if a Forest Preserve District Employees' Annuity
1995	1995	20 and Benefit Fund is in force in the county and the board of
1996	1996	21 this Fund is charged with administering the affairs of that
1997	1997	22 annuity and benefit fund for employees of the forest preserve
1998	1998	23 district, a forest preserve district annuitant member of the
1999	1999	24 board shall be elected as follows: the board shall arrange for
2000	2000	25 and hold an election in which only those participants who are
2001	2001	26 currently receiving retirement benefits under Article 10 shall
2002	2002
2003	2003
2004	2004
2005	2005
2006	2006
2007	2007	SB1690 - 55 - LRB103 26358 RPS 52719 b
2008	2008
2009	2009
2010	2010	SB1690- 56 -LRB103 26358 RPS 52719 b SB1690 - 56 - LRB103 26358 RPS 52719 b
2011	2011	SB1690 - 56 - LRB103 26358 RPS 52719 b
2012	2012	1 be eligible to vote and be elected. Each such member shall be
2013	2013	2 elected to a term ending on the first day in the month of
2014	2014	3 December of the third following year. Until December 1, 2001,
2015	2015	4 the position created under this subsection (f) may be filled
2016	2016	5 by the board as in the case of a vacancy.
2017	2017	6 (Source: P.A. 92-66, eff. 7-12-01.)
2018	2018	7 (40 ILCS 5/9-195) (from Ch. 108 1/2, par. 9-195)
2019	2019	8 Sec. 9-195. To have an audit. To have an audit of the
2020	2020	9 accounts of the fund made at least once each year by certified
2021	2021	10 public accountants. The audit may include the preparation of
2022	2022	11 the annual actuarial report required under Section 9-169.1.
2023	2023	12 (Source: Laws 1963, p. 161.)
2024	2024	13 (40 ILCS 5/9-199) (from Ch. 108 1/2, par. 9-199)
2025	2025	14 Sec. 9-199. To submit an annual report. To submit a report
2026	2026	15 in July of each year to the county board of the county as of
2027	2027	16 the close of business on December 31st of the preceding year.
2028	2028	17 The report shall contain a detailed statement of the affairs
2029	2029	18 of the fund, its income and expenditures, and assets and
2030	2030	19 liabilities, and it shall include the annual actuarial report
2031	2031	20 required under Section 9-169.1. The county board shall have
2032	2032	21 power to require and compel the retirement board to prepare
2033	2033	22 and submit such reports.
2034	2034	23 (Source: P.A. 95-369, eff. 8-23-07.)
2035	2035
2036	2036
2037	2037
2038	2038
2039	2039
2040	2040	SB1690 - 56 - LRB103 26358 RPS 52719 b
2041	2041
2042	2042
2043	2043	SB1690- 57 -LRB103 26358 RPS 52719 b SB1690 - 57 - LRB103 26358 RPS 52719 b
2044	2044	SB1690 - 57 - LRB103 26358 RPS 52719 b
2045	2045	1 (40 ILCS 5/9-239) (from Ch. 108 1/2, par. 9-239)
2046	2046	2 Sec. 9-239. Group Health Benefit.
2047	2047	3 (a) For the purposes of this Section, "annuitant" means a
2048	2048	4 person receiving an age and service annuity, a prior service
2049	2049	5 annuity, a widow's annuity, a widow's prior service annuity, a
2050	2050	6 minimum annuity, or a child's annuity on or after January 1,
2051	2051	7 1990, under Article 9 or 10 by reason of previous employment by
2052	2052	8 Cook County or the Forest Preserve District of Cook County
2053	2053	9 (hereinafter, in this Section, "the County").
2054	2054	10 (b) Beginning on the effective date of this amendatory Act
2055	2055	11 of the 103rd General Assembly December 1, 1991, the Fund shall
2056	2056	12 may pay, on behalf of each of the Fund's annuitants who chooses
2057	2057	13 to participate in an annuitant health care program
2058	2058	14 administered by the Fund any of the county's health care
2059	2059	15 plans, all or any portion of the total health care premium
2060	2060	16 (including coverage for other family members) due from each
2061	2061	17 such annuitant.
2062	2062	18 (c) The difference between the required monthly premiums
2063	2063	19 for such coverage and the amount paid by the Fund may be
2064	2064	20 deducted from the annuitant's annuity if the annuitant so
2065	2065	21 elects; otherwise such coverage shall terminate and the
2066	2066	22 obligation of the Fund shall also terminate.
2067	2067	23 (d) Beginning January 1, 2025, the Fund shall not use any
2068	2068	24 contributions received by the Fund under Section 9-169 to
2069	2069	25 provide a subsidy for the cost of participation in a group
2070	2070	26 coverage plan administered by the Fund. Beginning January 10,
2071	2071
2072	2072
2073	2073
2074	2074
2075	2075
2076	2076	SB1690 - 57 - LRB103 26358 RPS 52719 b
2077	2077
2078	2078
2079	2079	SB1690- 58 -LRB103 26358 RPS 52719 b SB1690 - 58 - LRB103 26358 RPS 52719 b
2080	2080	SB1690 - 58 - LRB103 26358 RPS 52719 b
2081	2081	1 2025, the county shall contribute $50,000,000 to the Fund for
2082	2082	2 the provision of health care for annuitants. This contribution
2083	2083	3 shall be made in 2 installments with the first payment
2084	2084	4 occurring on or before January 15, 2025 and the second payment
2085	2085	5 on or before June 15, 2025. Thereafter, the county and the Fund
2086	2086	6 shall annually negotiate the subsidy by intergovernmental
2087	2087	7 agreement, which shall continue to be made by the county
2088	2088	8 annually in 2 installments. The annual subsidy shall not be
2089	2089	9 less than the Fund's previous year's cost for the provision of
2090	2090	10 the annuitant health care program plus the increase in the
2091	2091	11 consumer price index-u for the 12 months ending with the
2092	2092	12 September preceding each November 1, including all previous
2093	2093	13 adjustments or 4%, whichever is less, based on benefit levels
2094	2094	14 provided through the annuitant health care program as of
2095	2095	15 January 1, 2023. If the county's contribution, as specified in
2096	2096	16 this Section, is greater than the current year's cost for the
2097	2097	17 provision of health care for annuitants, the balance shall be
2098	2098	18 used to offset the unfunded liability attributable to the
2099	2099	19 group coverage plan administered by the Fund. Any such future
2100	2100	20 subsidy negotiations, including increases to annuitant health
2101	2101	21 care program benefits, must be completed by June 1 of the
2102	2102	22 preceding year in order to be included in the county's annual
2103	2103	23 appropriation bill Amounts contributed by the county as
2104	2104	24 authorized under Section 9-182 for the benefits set forth in
2105	2105	25 this Section shall be credited to the reserve for group
2106	2106	26 hospital care and all such premiums shall be charged to it.
2107	2107
2108	2108
2109	2109
2110	2110
2111	2111
2112	2112	SB1690 - 58 - LRB103 26358 RPS 52719 b
2113	2113
2114	2114
2115	2115	SB1690- 59 -LRB103 26358 RPS 52719 b SB1690 - 59 - LRB103 26358 RPS 52719 b
2116	2116	SB1690 - 59 - LRB103 26358 RPS 52719 b
2117	2117	1 For the purposes of this Section, "consumer price index-u"
2118	2118	2 means the index published by the Bureau of Labor Statistics of
2119	2119	3 the United States Department of Labor that measures the
2120	2120	4 average change in prices of goods and services purchased by
2121	2121	5 all urban consumers. The new amount resulting from each annual
2122	2122	6 adjustment shall be determined by the Public Pension Division
2123	2123	7 of the Department of Insurance and made available to the
2124	2124	8 boards of the retirement systems and pension.
2125	2125	9 (e) The group coverage plan and benefits described in this
2126	2126	10 Section are not and shall not be construed to be pension or
2127	2127	11 retirement benefits for purposes of Section 5 of Article XIII
2128	2128	12 of the Illinois Constitution of 1970.
2129	2129	13 (Source: P.A. 86-1025; 87-794.)
2130	2130	14 Section 90. The State Mandates Act is amended by adding
2131	2131	15 Section 8.47 as follows:
2132	2132	16 (30 ILCS 805/8.47 new)
2133	2133	17 Sec. 8.47. Exempt mandate. Notwithstanding Sections 6 and
2134	2134	18 8 of this Act, no reimbursement by the State is required for
2135	2135	19 the implementation of any mandate created by this amendatory
2136	2136	20 Act of the 103rd General Assembly.
2137	2137	21 Section 99. Effective date. This Act takes effect upon
2138	2138	22 becoming law.
2139	2139	SB1690- 60 -LRB103 26358 RPS 52719 b 1 INDEX 2 Statutes amended in order of appearance SB1690- 60 -LRB103 26358 RPS 52719 b SB1690 - 60 - LRB103 26358 RPS 52719 b 1 INDEX 2 Statutes amended in order of appearance
2140	2140	SB1690- 60 -LRB103 26358 RPS 52719 b SB1690 - 60 - LRB103 26358 RPS 52719 b
2141	2141	SB1690 - 60 - LRB103 26358 RPS 52719 b
2142	2142	1 INDEX
2143	2143	2 Statutes amended in order of appearance
2144	2144
2145	2145
2146	2146
2147	2147
2148	2148
2149	2149	SB1690 - 59 - LRB103 26358 RPS 52719 b
2150	2150
2151	2151
2152	2152
2153	2153	SB1690- 60 -LRB103 26358 RPS 52719 b SB1690 - 60 - LRB103 26358 RPS 52719 b
2154	2154	SB1690 - 60 - LRB103 26358 RPS 52719 b
2155	2155	1 INDEX
2156	2156	2 Statutes amended in order of appearance
2157	2157
2158	2158
2159	2159
2160	2160
2161	2161
2162	2162	SB1690 - 60 - LRB103 26358 RPS 52719 b