Illinois 2023-2024 Regular Session

Illinois Senate Bill SB2162 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 SB2162 Introduced 2/10/2023, by Sen. Doris Turner SYNOPSIS AS INTRODUCED: 40 ILCS 5/1-160 40 ILCS 5/14-152.1 Amends the General Provisions and State Employee Articles of the Illinois Pension Code. Provides that a security employee of the Department of Corrections or the Department of Juvenile Justice under the Tier 2 provisions is entitled to an annuity calculated under the alternative retirement formula, in lieu of the regular or minimum retirement annuity, only if the person has withdrawn from service with not less than 20 years of eligible creditable service and has attained age 55 (instead of age 60), regardless of whether the attainment of age 55 (instead of age 60) occurs while the person is still in service. Provides that any benefit increase that results from the amendatory Act is excluded from the definition of "new benefit increase". Effective immediately. LRB103 27597 RPS 53973 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB2162 Introduced 2/10/2023, by Sen. Doris Turner SYNOPSIS AS INTRODUCED: 40 ILCS 5/1-160 40 ILCS 5/14-152.1 40 ILCS 5/1-160 40 ILCS 5/14-152.1 Amends the General Provisions and State Employee Articles of the Illinois Pension Code. Provides that a security employee of the Department of Corrections or the Department of Juvenile Justice under the Tier 2 provisions is entitled to an annuity calculated under the alternative retirement formula, in lieu of the regular or minimum retirement annuity, only if the person has withdrawn from service with not less than 20 years of eligible creditable service and has attained age 55 (instead of age 60), regardless of whether the attainment of age 55 (instead of age 60) occurs while the person is still in service. Provides that any benefit increase that results from the amendatory Act is excluded from the definition of "new benefit increase". Effective immediately. LRB103 27597 RPS 53973 b LRB103 27597 RPS 53973 b A BILL FOR
2	2	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB2162 Introduced 2/10/2023, by Sen. Doris Turner SYNOPSIS AS INTRODUCED:
3	3	40 ILCS 5/1-160 40 ILCS 5/14-152.1 40 ILCS 5/1-160 40 ILCS 5/14-152.1
4	4	40 ILCS 5/1-160
5	5	40 ILCS 5/14-152.1
6	6	Amends the General Provisions and State Employee Articles of the Illinois Pension Code. Provides that a security employee of the Department of Corrections or the Department of Juvenile Justice under the Tier 2 provisions is entitled to an annuity calculated under the alternative retirement formula, in lieu of the regular or minimum retirement annuity, only if the person has withdrawn from service with not less than 20 years of eligible creditable service and has attained age 55 (instead of age 60), regardless of whether the attainment of age 55 (instead of age 60) occurs while the person is still in service. Provides that any benefit increase that results from the amendatory Act is excluded from the definition of "new benefit increase". Effective immediately.
7	7	LRB103 27597 RPS 53973 b LRB103 27597 RPS 53973 b
8	8	LRB103 27597 RPS 53973 b
9	9	A BILL FOR
10	10	SB2162LRB103 27597 RPS 53973 b SB2162 LRB103 27597 RPS 53973 b
11	11	SB2162 LRB103 27597 RPS 53973 b
12	12	1 AN ACT concerning public employee benefits.
13	13	2 Be it enacted by the People of the State of Illinois,
14	14	3 represented in the General Assembly:
15	15	4 Section 5. The Illinois Pension Code is amended by
16	16	5 changing Sections 1-160 and 14-152.1 as follows:
17	17	6 (40 ILCS 5/1-160)
18	18	7 (Text of Section from P.A. 102-719)
19	19	8 Sec. 1-160. Provisions applicable to new hires.
20	20	9 (a) The provisions of this Section apply to a person who,
21	21	10 on or after January 1, 2011, first becomes a member or a
22	22	11 participant under any reciprocal retirement system or pension
23	23	12 fund established under this Code, other than a retirement
24	24	13 system or pension fund established under Article 2, 3, 4, 5, 6,
25	25	14 7, 15, or 18 of this Code, notwithstanding any other provision
26	26	15 of this Code to the contrary, but do not apply to any
27	27	16 self-managed plan established under this Code or to any
28	28	17 participant of the retirement plan established under Section
29	29	18 22-101; except that this Section applies to a person who
30	30	19 elected to establish alternative credits by electing in
31	31	20 writing after January 1, 2011, but before August 8, 2011,
32	32	21 under Section 7-145.1 of this Code. Notwithstanding anything
33	33	22 to the contrary in this Section, for purposes of this Section,
34	34	23 a person who is a Tier 1 regular employee as defined in Section
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38	38	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB2162 Introduced 2/10/2023, by Sen. Doris Turner SYNOPSIS AS INTRODUCED:
39	39	40 ILCS 5/1-160 40 ILCS 5/14-152.1 40 ILCS 5/1-160 40 ILCS 5/14-152.1
40	40	40 ILCS 5/1-160
41	41	40 ILCS 5/14-152.1
42	42	Amends the General Provisions and State Employee Articles of the Illinois Pension Code. Provides that a security employee of the Department of Corrections or the Department of Juvenile Justice under the Tier 2 provisions is entitled to an annuity calculated under the alternative retirement formula, in lieu of the regular or minimum retirement annuity, only if the person has withdrawn from service with not less than 20 years of eligible creditable service and has attained age 55 (instead of age 60), regardless of whether the attainment of age 55 (instead of age 60) occurs while the person is still in service. Provides that any benefit increase that results from the amendatory Act is excluded from the definition of "new benefit increase". Effective immediately.
43	43	LRB103 27597 RPS 53973 b LRB103 27597 RPS 53973 b
44	44	LRB103 27597 RPS 53973 b
45	45	A BILL FOR
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51	51	40 ILCS 5/1-160
52	52	40 ILCS 5/14-152.1
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71	71	1 7-109.4 of this Code or who participated in a retirement
72	72	2 system under Article 15 prior to January 1, 2011 shall be
73	73	3 deemed a person who first became a member or participant prior
74	74	4 to January 1, 2011 under any retirement system or pension fund
75	75	5 subject to this Section. The changes made to this Section by
76	76	6 Public Act 98-596 are a clarification of existing law and are
77	77	7 intended to be retroactive to January 1, 2011 (the effective
78	78	8 date of Public Act 96-889), notwithstanding the provisions of
79	79	9 Section 1-103.1 of this Code.
80	80	10 This Section does not apply to a person who first becomes a
81	81	11 noncovered employee under Article 14 on or after the
82	82	12 implementation date of the plan created under Section 1-161
83	83	13 for that Article, unless that person elects under subsection
84	84	14 (b) of Section 1-161 to instead receive the benefits provided
85	85	15 under this Section and the applicable provisions of that
86	86	16 Article.
87	87	17 This Section does not apply to a person who first becomes a
88	88	18 member or participant under Article 16 on or after the
89	89	19 implementation date of the plan created under Section 1-161
90	90	20 for that Article, unless that person elects under subsection
91	91	21 (b) of Section 1-161 to instead receive the benefits provided
92	92	22 under this Section and the applicable provisions of that
93	93	23 Article.
94	94	24 This Section does not apply to a person who elects under
95	95	25 subsection (c-5) of Section 1-161 to receive the benefits
96	96	26 under Section 1-161.
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107	107	1 This Section does not apply to a person who first becomes a
108	108	2 member or participant of an affected pension fund on or after 6
109	109	3 months after the resolution or ordinance date, as defined in
110	110	4 Section 1-162, unless that person elects under subsection (c)
111	111	5 of Section 1-162 to receive the benefits provided under this
112	112	6 Section and the applicable provisions of the Article under
113	113	7 which he or she is a member or participant.
114	114	8 (b) "Final average salary" means, except as otherwise
115	115	9 provided in this subsection, the average monthly (or annual)
116	116	10 salary obtained by dividing the total salary or earnings
117	117	11 calculated under the Article applicable to the member or
118	118	12 participant during the 96 consecutive months (or 8 consecutive
119	119	13 years) of service within the last 120 months (or 10 years) of
120	120	14 service in which the total salary or earnings calculated under
121	121	15 the applicable Article was the highest by the number of months
122	122	16 (or years) of service in that period. For the purposes of a
123	123	17 person who first becomes a member or participant of any
124	124	18 retirement system or pension fund to which this Section
125	125	19 applies on or after January 1, 2011, in this Code, "final
126	126	20 average salary" shall be substituted for the following:
127	127	21 (1) (Blank).
128	128	22 (2) In Articles 8, 9, 10, 11, and 12, "highest average
129	129	23 annual salary for any 4 consecutive years within the last
130	130	24 10 years of service immediately preceding the date of
131	131	25 withdrawal".
132	132	26 (3) In Article 13, "average final salary".
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143	143	1 (4) In Article 14, "final average compensation".
144	144	2 (5) In Article 17, "average salary".
145	145	3 (6) In Section 22-207, "wages or salary received by
146	146	4 him at the date of retirement or discharge".
147	147	5 A member of the Teachers' Retirement System of the State
148	148	6 of Illinois who retires on or after June 1, 2021 and for whom
149	149	7 the 2020-2021 school year is used in the calculation of the
150	150	8 member's final average salary shall use the higher of the
151	151	9 following for the purpose of determining the member's final
152	152	10 average salary:
153	153	11 (A) the amount otherwise calculated under the first
154	154	12 paragraph of this subsection; or
155	155	13 (B) an amount calculated by the Teachers' Retirement
156	156	14 System of the State of Illinois using the average of the
157	157	15 monthly (or annual) salary obtained by dividing the total
158	158	16 salary or earnings calculated under Article 16 applicable
159	159	17 to the member or participant during the 96 months (or 8
160	160	18 years) of service within the last 120 months (or 10 years)
161	161	19 of service in which the total salary or earnings
162	162	20 calculated under the Article was the highest by the number
163	163	21 of months (or years) of service in that period.
164	164	22 (b-5) Beginning on January 1, 2011, for all purposes under
165	165	23 this Code (including without limitation the calculation of
166	166	24 benefits and employee contributions), the annual earnings,
167	167	25 salary, or wages (based on the plan year) of a member or
168	168	26 participant to whom this Section applies shall not exceed
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179	179	1 $106,800; however, that amount shall annually thereafter be
180	180	2 increased by the lesser of (i) 3% of that amount, including all
181	181	3 previous adjustments, or (ii) one-half the annual unadjusted
182	182	4 percentage increase (but not less than zero) in the consumer
183	183	5 price index-u for the 12 months ending with the September
184	184	6 preceding each November 1, including all previous adjustments.
185	185	7 For the purposes of this Section, "consumer price index-u"
186	186	8 means the index published by the Bureau of Labor Statistics of
187	187	9 the United States Department of Labor that measures the
188	188	10 average change in prices of goods and services purchased by
189	189	11 all urban consumers, United States city average, all items,
190	190	12 1982-84 = 100. The new amount resulting from each annual
191	191	13 adjustment shall be determined by the Public Pension Division
192	192	14 of the Department of Insurance and made available to the
193	193	15 boards of the retirement systems and pension funds by November
194	194	16 1 of each year.
195	195	17 (c) A member or participant is entitled to a retirement
196	196	18 annuity upon written application if he or she has attained age
197	197	19 67 (age 65, with respect to service under Article 12 that is
198	198	20 subject to this Section, for a member or participant under
199	199	21 Article 12 who first becomes a member or participant under
200	200	22 Article 12 on or after January 1, 2022 or who makes the
201	201	23 election under item (i) of subsection (d-15) of this Section)
202	202	24 and has at least 10 years of service credit and is otherwise
203	203	25 eligible under the requirements of the applicable Article.
204	204	26 A member or participant who has attained age 62 (age 60,
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215	215	1 with respect to service under Article 12 that is subject to
216	216	2 this Section, for a member or participant under Article 12 who
217	217	3 first becomes a member or participant under Article 12 on or
218	218	4 after January 1, 2022 or who makes the election under item (i)
219	219	5 of subsection (d-15) of this Section) and has at least 10 years
220	220	6 of service credit and is otherwise eligible under the
221	221	7 requirements of the applicable Article may elect to receive
222	222	8 the lower retirement annuity provided in subsection (d) of
223	223	9 this Section.
224	224	10 (c-5) A person who first becomes a member or a participant
225	225	11 subject to this Section on or after July 6, 2017 (the effective
226	226	12 date of Public Act 100-23), notwithstanding any other
227	227	13 provision of this Code to the contrary, is entitled to a
228	228	14 retirement annuity under Article 8 or Article 11 upon written
229	229	15 application if he or she has attained age 65 and has at least
230	230	16 10 years of service credit and is otherwise eligible under the
231	231	17 requirements of Article 8 or Article 11 of this Code,
232	232	18 whichever is applicable.
233	233	19 (d) The retirement annuity of a member or participant who
234	234	20 is retiring after attaining age 62 (age 60, with respect to
235	235	21 service under Article 12 that is subject to this Section, for a
236	236	22 member or participant under Article 12 who first becomes a
237	237	23 member or participant under Article 12 on or after January 1,
238	238	24 2022 or who makes the election under item (i) of subsection
239	239	25 (d-15) of this Section) with at least 10 years of service
240	240	26 credit shall be reduced by one-half of 1% for each full month
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251	251	1 that the member's age is under age 67 (age 65, with respect to
252	252	2 service under Article 12 that is subject to this Section, for a
253	253	3 member or participant under Article 12 who first becomes a
254	254	4 member or participant under Article 12 on or after January 1,
255	255	5 2022 or who makes the election under item (i) of subsection
256	256	6 (d-15) of this Section).
257	257	7 (d-5) The retirement annuity payable under Article 8 or
258	258	8 Article 11 to an eligible person subject to subsection (c-5)
259	259	9 of this Section who is retiring at age 60 with at least 10
260	260	10 years of service credit shall be reduced by one-half of 1% for
261	261	11 each full month that the member's age is under age 65.
262	262	12 (d-10) Each person who first became a member or
263	263	13 participant under Article 8 or Article 11 of this Code on or
264	264	14 after January 1, 2011 and prior to July 6, 2017 (the effective
265	265	15 date of Public Act 100-23) shall make an irrevocable election
266	266	16 either:
267	267	17 (i) to be eligible for the reduced retirement age
268	268	18 provided in subsections (c-5) and (d-5) of this Section,
269	269	19 the eligibility for which is conditioned upon the member
270	270	20 or participant agreeing to the increases in employee
271	271	21 contributions for age and service annuities provided in
272	272	22 subsection (a-5) of Section 8-174 of this Code (for
273	273	23 service under Article 8) or subsection (a-5) of Section
274	274	24 11-170 of this Code (for service under Article 11); or
275	275	25 (ii) to not agree to item (i) of this subsection
276	276	26 (d-10), in which case the member or participant shall
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287	287	1 continue to be subject to the retirement age provisions in
288	288	2 subsections (c) and (d) of this Section and the employee
289	289	3 contributions for age and service annuity as provided in
290	290	4 subsection (a) of Section 8-174 of this Code (for service
291	291	5 under Article 8) or subsection (a) of Section 11-170 of
292	292	6 this Code (for service under Article 11).
293	293	7 The election provided for in this subsection shall be made
294	294	8 between October 1, 2017 and November 15, 2017. A person
295	295	9 subject to this subsection who makes the required election
296	296	10 shall remain bound by that election. A person subject to this
297	297	11 subsection who fails for any reason to make the required
298	298	12 election within the time specified in this subsection shall be
299	299	13 deemed to have made the election under item (ii).
300	300	14 (d-15) Each person who first becomes a member or
301	301	15 participant under Article 12 on or after January 1, 2011 and
302	302	16 prior to January 1, 2022 shall make an irrevocable election
303	303	17 either:
304	304	18 (i) to be eligible for the reduced retirement age
305	305	19 specified in subsections (c) and (d) of this Section, the
306	306	20 eligibility for which is conditioned upon the member or
307	307	21 participant agreeing to the increase in employee
308	308	22 contributions for service annuities specified in
309	309	23 subsection (b) of Section 12-150; or
310	310	24 (ii) to not agree to item (i) of this subsection
311	311	25 (d-15), in which case the member or participant shall not
312	312	26 be eligible for the reduced retirement age specified in
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323	323	1 subsections (c) and (d) of this Section and shall not be
324	324	2 subject to the increase in employee contributions for
325	325	3 service annuities specified in subsection (b) of Section
326	326	4 12-150.
327	327	5 The election provided for in this subsection shall be made
328	328	6 between January 1, 2022 and April 1, 2022. A person subject to
329	329	7 this subsection who makes the required election shall remain
330	330	8 bound by that election. A person subject to this subsection
331	331	9 who fails for any reason to make the required election within
332	332	10 the time specified in this subsection shall be deemed to have
333	333	11 made the election under item (ii).
334	334	12 (e) Any retirement annuity or supplemental annuity shall
335	335	13 be subject to annual increases on the January 1 occurring
336	336	14 either on or after the attainment of age 67 (age 65, with
337	337	15 respect to service under Article 12 that is subject to this
338	338	16 Section, for a member or participant under Article 12 who
339	339	17 first becomes a member or participant under Article 12 on or
340	340	18 after January 1, 2022 or who makes the election under item (i)
341	341	19 of subsection (d-15); and beginning on July 6, 2017 (the
342	342	20 effective date of Public Act 100-23), age 65 with respect to
343	343	21 service under Article 8 or Article 11 for eligible persons
344	344	22 who: (i) are subject to subsection (c-5) of this Section; or
345	345	23 (ii) made the election under item (i) of subsection (d-10) of
346	346	24 this Section) or the first anniversary of the annuity start
347	347	25 date, whichever is later. Each annual increase shall be
348	348	26 calculated at 3% or one-half the annual unadjusted percentage
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359	359	1 increase (but not less than zero) in the consumer price
360	360	2 index-u for the 12 months ending with the September preceding
361	361	3 each November 1, whichever is less, of the originally granted
362	362	4 retirement annuity. If the annual unadjusted percentage change
363	363	5 in the consumer price index-u for the 12 months ending with the
364	364	6 September preceding each November 1 is zero or there is a
365	365	7 decrease, then the annuity shall not be increased.
366	366	8 For the purposes of Section 1-103.1 of this Code, the
367	367	9 changes made to this Section by Public Act 102-263 are
368	368	10 applicable without regard to whether the employee was in
369	369	11 active service on or after August 6, 2021 (the effective date
370	370	12 of Public Act 102-263).
371	371	13 For the purposes of Section 1-103.1 of this Code, the
372	372	14 changes made to this Section by Public Act 100-23 are
373	373	15 applicable without regard to whether the employee was in
374	374	16 active service on or after July 6, 2017 (the effective date of
375	375	17 Public Act 100-23).
376	376	18 (f) The initial survivor's or widow's annuity of an
377	377	19 otherwise eligible survivor or widow of a retired member or
378	378	20 participant who first became a member or participant on or
379	379	21 after January 1, 2011 shall be in the amount of 66 2/3% of the
380	380	22 retired member's or participant's retirement annuity at the
381	381	23 date of death. In the case of the death of a member or
382	382	24 participant who has not retired and who first became a member
383	383	25 or participant on or after January 1, 2011, eligibility for a
384	384	26 survivor's or widow's annuity shall be determined by the
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395	395	1 applicable Article of this Code. The initial benefit shall be
396	396	2 66 2/3% of the earned annuity without a reduction due to age. A
397	397	3 child's annuity of an otherwise eligible child shall be in the
398	398	4 amount prescribed under each Article if applicable. Any
399	399	5 survivor's or widow's annuity shall be increased (1) on each
400	400	6 January 1 occurring on or after the commencement of the
401	401	7 annuity if the deceased member died while receiving a
402	402	8 retirement annuity or (2) in other cases, on each January 1
403	403	9 occurring after the first anniversary of the commencement of
404	404	10 the annuity. Each annual increase shall be calculated at 3% or
405	405	11 one-half the annual unadjusted percentage increase (but not
406	406	12 less than zero) in the consumer price index-u for the 12 months
407	407	13 ending with the September preceding each November 1, whichever
408	408	14 is less, of the originally granted survivor's annuity. If the
409	409	15 annual unadjusted percentage change in the consumer price
410	410	16 index-u for the 12 months ending with the September preceding
411	411	17 each November 1 is zero or there is a decrease, then the
412	412	18 annuity shall not be increased.
413	413	19 (g) The benefits in Section 14-110 apply if the person is a
414	414	20 fire fighter in the fire protection service of a department, a
415	415	21 security employee of the Department of Corrections or the
416	416	22 Department of Juvenile Justice, or a security employee of the
417	417	23 Department of Innovation and Technology, as those terms are
418	418	24 defined in subsection (b) and subsection (c) of Section
419	419	25 14-110. A person who meets the requirements of this Section is
420	420	26 entitled to an annuity calculated under the provisions of
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431	431	1 Section 14-110, in lieu of the regular or minimum retirement
432	432	2 annuity, only if the person has withdrawn from service with
433	433	3 not less than 20 years of eligible creditable service and has
434	434	4 attained age 60, regardless of whether the attainment of age
435	435	5 60 occurs while the person is still in service.
436	436	6 (g-1) The benefits in Section 14-110 apply if the person
437	437	7 is a security employee of the Department of Corrections or the
438	438	8 Department of Juvenile Justice, as those terms are defined in
439	439	9 subsection (b) and subsection (c) of Section 14-110. A person
440	440	10 who meets the requirements of this Section is entitled to an
441	441	11 annuity calculated under the provisions of Section 14-110, in
442	442	12 lieu of the regular or minimum retirement annuity, only if the
443	443	13 person has withdrawn from service with not less than 20 years
444	444	14 of eligible creditable service and has attained age 55,
445	445	15 regardless of whether the attainment of age 55 occurs while
446	446	16 the person is still in service.
447	447	17 (g-5) The benefits in Section 14-110 apply if the person
448	448	18 is a State policeman, investigator for the Secretary of State,
449	449	19 conservation police officer, investigator for the Department
450	450	20 of Revenue or the Illinois Gaming Board, investigator for the
451	451	21 Office of the Attorney General, Commerce Commission police
452	452	22 officer, or arson investigator, as those terms are defined in
453	453	23 subsection (b) and subsection (c) of Section 14-110. A person
454	454	24 who meets the requirements of this Section is entitled to an
455	455	25 annuity calculated under the provisions of Section 14-110, in
456	456	26 lieu of the regular or minimum retirement annuity, only if the
457	457
458	458
459	459
460	460
461	461
462	462	SB2162 - 12 - LRB103 27597 RPS 53973 b
463	463
464	464
465	465	SB2162- 13 -LRB103 27597 RPS 53973 b SB2162 - 13 - LRB103 27597 RPS 53973 b
466	466	SB2162 - 13 - LRB103 27597 RPS 53973 b
467	467	1 person has withdrawn from service with not less than 20 years
468	468	2 of eligible creditable service and has attained age 55,
469	469	3 regardless of whether the attainment of age 55 occurs while
470	470	4 the person is still in service.
471	471	5 (h) If a person who first becomes a member or a participant
472	472	6 of a retirement system or pension fund subject to this Section
473	473	7 on or after January 1, 2011 is receiving a retirement annuity
474	474	8 or retirement pension under that system or fund and becomes a
475	475	9 member or participant under any other system or fund created
476	476	10 by this Code and is employed on a full-time basis, except for
477	477	11 those members or participants exempted from the provisions of
478	478	12 this Section under subsection (a) of this Section, then the
479	479	13 person's retirement annuity or retirement pension under that
480	480	14 system or fund shall be suspended during that employment. Upon
481	481	15 termination of that employment, the person's retirement
482	482	16 annuity or retirement pension payments shall resume and be
483	483	17 recalculated if recalculation is provided for under the
484	484	18 applicable Article of this Code.
485	485	19 If a person who first becomes a member of a retirement
486	486	20 system or pension fund subject to this Section on or after
487	487	21 January 1, 2012 and is receiving a retirement annuity or
488	488	22 retirement pension under that system or fund and accepts on a
489	489	23 contractual basis a position to provide services to a
490	490	24 governmental entity from which he or she has retired, then
491	491	25 that person's annuity or retirement pension earned as an
492	492	26 active employee of the employer shall be suspended during that
493	493
494	494
495	495
496	496
497	497
498	498	SB2162 - 13 - LRB103 27597 RPS 53973 b
499	499
500	500
501	501	SB2162- 14 -LRB103 27597 RPS 53973 b SB2162 - 14 - LRB103 27597 RPS 53973 b
502	502	SB2162 - 14 - LRB103 27597 RPS 53973 b
503	503	1 contractual service. A person receiving an annuity or
504	504	2 retirement pension under this Code shall notify the pension
505	505	3 fund or retirement system from which he or she is receiving an
506	506	4 annuity or retirement pension, as well as his or her
507	507	5 contractual employer, of his or her retirement status before
508	508	6 accepting contractual employment. A person who fails to submit
509	509	7 such notification shall be guilty of a Class A misdemeanor and
510	510	8 required to pay a fine of $1,000. Upon termination of that
511	511	9 contractual employment, the person's retirement annuity or
512	512	10 retirement pension payments shall resume and, if appropriate,
513	513	11 be recalculated under the applicable provisions of this Code.
514	514	12 (i) (Blank).
515	515	13 (j) In the case of a conflict between the provisions of
516	516	14 this Section and any other provision of this Code, the
517	517	15 provisions of this Section shall control.
518	518	16 (Source: P.A. 101-610, eff. 1-1-20; 102-16, eff. 6-17-21;
519	519	17 102-210, eff. 1-1-22; 102-263, eff. 8-6-21; 102-719, eff.
520	520	18 5-6-22.)
521	521	19 (Text of Section from P.A. 102-813)
522	522	20 Sec. 1-160. Provisions applicable to new hires.
523	523	21 (a) The provisions of this Section apply to a person who,
524	524	22 on or after January 1, 2011, first becomes a member or a
525	525	23 participant under any reciprocal retirement system or pension
526	526	24 fund established under this Code, other than a retirement
527	527	25 system or pension fund established under Article 2, 3, 4, 5, 6,
528	528
529	529
530	530
531	531
532	532
533	533	SB2162 - 14 - LRB103 27597 RPS 53973 b
534	534
535	535
536	536	SB2162- 15 -LRB103 27597 RPS 53973 b SB2162 - 15 - LRB103 27597 RPS 53973 b
537	537	SB2162 - 15 - LRB103 27597 RPS 53973 b
538	538	1 7, 15, or 18 of this Code, notwithstanding any other provision
539	539	2 of this Code to the contrary, but do not apply to any
540	540	3 self-managed plan established under this Code or to any
541	541	4 participant of the retirement plan established under Section
542	542	5 22-101; except that this Section applies to a person who
543	543	6 elected to establish alternative credits by electing in
544	544	7 writing after January 1, 2011, but before August 8, 2011,
545	545	8 under Section 7-145.1 of this Code. Notwithstanding anything
546	546	9 to the contrary in this Section, for purposes of this Section,
547	547	10 a person who is a Tier 1 regular employee as defined in Section
548	548	11 7-109.4 of this Code or who participated in a retirement
549	549	12 system under Article 15 prior to January 1, 2011 shall be
550	550	13 deemed a person who first became a member or participant prior
551	551	14 to January 1, 2011 under any retirement system or pension fund
552	552	15 subject to this Section. The changes made to this Section by
553	553	16 Public Act 98-596 are a clarification of existing law and are
554	554	17 intended to be retroactive to January 1, 2011 (the effective
555	555	18 date of Public Act 96-889), notwithstanding the provisions of
556	556	19 Section 1-103.1 of this Code.
557	557	20 This Section does not apply to a person who first becomes a
558	558	21 noncovered employee under Article 14 on or after the
559	559	22 implementation date of the plan created under Section 1-161
560	560	23 for that Article, unless that person elects under subsection
561	561	24 (b) of Section 1-161 to instead receive the benefits provided
562	562	25 under this Section and the applicable provisions of that
563	563	26 Article.
564	564
565	565
566	566
567	567
568	568
569	569	SB2162 - 15 - LRB103 27597 RPS 53973 b
570	570
571	571
572	572	SB2162- 16 -LRB103 27597 RPS 53973 b SB2162 - 16 - LRB103 27597 RPS 53973 b
573	573	SB2162 - 16 - LRB103 27597 RPS 53973 b
574	574	1 This Section does not apply to a person who first becomes a
575	575	2 member or participant under Article 16 on or after the
576	576	3 implementation date of the plan created under Section 1-161
577	577	4 for that Article, unless that person elects under subsection
578	578	5 (b) of Section 1-161 to instead receive the benefits provided
579	579	6 under this Section and the applicable provisions of that
580	580	7 Article.
581	581	8 This Section does not apply to a person who elects under
582	582	9 subsection (c-5) of Section 1-161 to receive the benefits
583	583	10 under Section 1-161.
584	584	11 This Section does not apply to a person who first becomes a
585	585	12 member or participant of an affected pension fund on or after 6
586	586	13 months after the resolution or ordinance date, as defined in
587	587	14 Section 1-162, unless that person elects under subsection (c)
588	588	15 of Section 1-162 to receive the benefits provided under this
589	589	16 Section and the applicable provisions of the Article under
590	590	17 which he or she is a member or participant.
591	591	18 (b) "Final average salary" means, except as otherwise
592	592	19 provided in this subsection, the average monthly (or annual)
593	593	20 salary obtained by dividing the total salary or earnings
594	594	21 calculated under the Article applicable to the member or
595	595	22 participant during the 96 consecutive months (or 8 consecutive
596	596	23 years) of service within the last 120 months (or 10 years) of
597	597	24 service in which the total salary or earnings calculated under
598	598	25 the applicable Article was the highest by the number of months
599	599	26 (or years) of service in that period. For the purposes of a
600	600
601	601
602	602
603	603
604	604
605	605	SB2162 - 16 - LRB103 27597 RPS 53973 b
606	606
607	607
608	608	SB2162- 17 -LRB103 27597 RPS 53973 b SB2162 - 17 - LRB103 27597 RPS 53973 b
609	609	SB2162 - 17 - LRB103 27597 RPS 53973 b
610	610	1 person who first becomes a member or participant of any
611	611	2 retirement system or pension fund to which this Section
612	612	3 applies on or after January 1, 2011, in this Code, "final
613	613	4 average salary" shall be substituted for the following:
614	614	5 (1) (Blank).
615	615	6 (2) In Articles 8, 9, 10, 11, and 12, "highest average
616	616	7 annual salary for any 4 consecutive years within the last
617	617	8 10 years of service immediately preceding the date of
618	618	9 withdrawal".
619	619	10 (3) In Article 13, "average final salary".
620	620	11 (4) In Article 14, "final average compensation".
621	621	12 (5) In Article 17, "average salary".
622	622	13 (6) In Section 22-207, "wages or salary received by
623	623	14 him at the date of retirement or discharge".
624	624	15 A member of the Teachers' Retirement System of the State
625	625	16 of Illinois who retires on or after June 1, 2021 and for whom
626	626	17 the 2020-2021 school year is used in the calculation of the
627	627	18 member's final average salary shall use the higher of the
628	628	19 following for the purpose of determining the member's final
629	629	20 average salary:
630	630	21 (A) the amount otherwise calculated under the first
631	631	22 paragraph of this subsection; or
632	632	23 (B) an amount calculated by the Teachers' Retirement
633	633	24 System of the State of Illinois using the average of the
634	634	25 monthly (or annual) salary obtained by dividing the total
635	635	26 salary or earnings calculated under Article 16 applicable
636	636
637	637
638	638
639	639
640	640
641	641	SB2162 - 17 - LRB103 27597 RPS 53973 b
642	642
643	643
644	644	SB2162- 18 -LRB103 27597 RPS 53973 b SB2162 - 18 - LRB103 27597 RPS 53973 b
645	645	SB2162 - 18 - LRB103 27597 RPS 53973 b
646	646	1 to the member or participant during the 96 months (or 8
647	647	2 years) of service within the last 120 months (or 10 years)
648	648	3 of service in which the total salary or earnings
649	649	4 calculated under the Article was the highest by the number
650	650	5 of months (or years) of service in that period.
651	651	6 (b-5) Beginning on January 1, 2011, for all purposes under
652	652	7 this Code (including without limitation the calculation of
653	653	8 benefits and employee contributions), the annual earnings,
654	654	9 salary, or wages (based on the plan year) of a member or
655	655	10 participant to whom this Section applies shall not exceed
656	656	11 $106,800; however, that amount shall annually thereafter be
657	657	12 increased by the lesser of (i) 3% of that amount, including all
658	658	13 previous adjustments, or (ii) one-half the annual unadjusted
659	659	14 percentage increase (but not less than zero) in the consumer
660	660	15 price index-u for the 12 months ending with the September
661	661	16 preceding each November 1, including all previous adjustments.
662	662	17 For the purposes of this Section, "consumer price index-u"
663	663	18 means the index published by the Bureau of Labor Statistics of
664	664	19 the United States Department of Labor that measures the
665	665	20 average change in prices of goods and services purchased by
666	666	21 all urban consumers, United States city average, all items,
667	667	22 1982-84 = 100. The new amount resulting from each annual
668	668	23 adjustment shall be determined by the Public Pension Division
669	669	24 of the Department of Insurance and made available to the
670	670	25 boards of the retirement systems and pension funds by November
671	671	26 1 of each year.
672	672
673	673
674	674
675	675
676	676
677	677	SB2162 - 18 - LRB103 27597 RPS 53973 b
678	678
679	679
680	680	SB2162- 19 -LRB103 27597 RPS 53973 b SB2162 - 19 - LRB103 27597 RPS 53973 b
681	681	SB2162 - 19 - LRB103 27597 RPS 53973 b
682	682	1 (c) A member or participant is entitled to a retirement
683	683	2 annuity upon written application if he or she has attained age
684	684	3 67 (age 65, with respect to service under Article 12 that is
685	685	4 subject to this Section, for a member or participant under
686	686	5 Article 12 who first becomes a member or participant under
687	687	6 Article 12 on or after January 1, 2022 or who makes the
688	688	7 election under item (i) of subsection (d-15) of this Section)
689	689	8 and has at least 10 years of service credit and is otherwise
690	690	9 eligible under the requirements of the applicable Article.
691	691	10 A member or participant who has attained age 62 (age 60,
692	692	11 with respect to service under Article 12 that is subject to
693	693	12 this Section, for a member or participant under Article 12 who
694	694	13 first becomes a member or participant under Article 12 on or
695	695	14 after January 1, 2022 or who makes the election under item (i)
696	696	15 of subsection (d-15) of this Section) and has at least 10 years
697	697	16 of service credit and is otherwise eligible under the
698	698	17 requirements of the applicable Article may elect to receive
699	699	18 the lower retirement annuity provided in subsection (d) of
700	700	19 this Section.
701	701	20 (c-5) A person who first becomes a member or a participant
702	702	21 subject to this Section on or after July 6, 2017 (the effective
703	703	22 date of Public Act 100-23), notwithstanding any other
704	704	23 provision of this Code to the contrary, is entitled to a
705	705	24 retirement annuity under Article 8 or Article 11 upon written
706	706	25 application if he or she has attained age 65 and has at least
707	707	26 10 years of service credit and is otherwise eligible under the
708	708
709	709
710	710
711	711
712	712
713	713	SB2162 - 19 - LRB103 27597 RPS 53973 b
714	714
715	715
716	716	SB2162- 20 -LRB103 27597 RPS 53973 b SB2162 - 20 - LRB103 27597 RPS 53973 b
717	717	SB2162 - 20 - LRB103 27597 RPS 53973 b
718	718	1 requirements of Article 8 or Article 11 of this Code,
719	719	2 whichever is applicable.
720	720	3 (d) The retirement annuity of a member or participant who
721	721	4 is retiring after attaining age 62 (age 60, with respect to
722	722	5 service under Article 12 that is subject to this Section, for a
723	723	6 member or participant under Article 12 who first becomes a
724	724	7 member or participant under Article 12 on or after January 1,
725	725	8 2022 or who makes the election under item (i) of subsection
726	726	9 (d-15) of this Section) with at least 10 years of service
727	727	10 credit shall be reduced by one-half of 1% for each full month
728	728	11 that the member's age is under age 67 (age 65, with respect to
729	729	12 service under Article 12 that is subject to this Section, for a
730	730	13 member or participant under Article 12 who first becomes a
731	731	14 member or participant under Article 12 on or after January 1,
732	732	15 2022 or who makes the election under item (i) of subsection
733	733	16 (d-15) of this Section).
734	734	17 (d-5) The retirement annuity payable under Article 8 or
735	735	18 Article 11 to an eligible person subject to subsection (c-5)
736	736	19 of this Section who is retiring at age 60 with at least 10
737	737	20 years of service credit shall be reduced by one-half of 1% for
738	738	21 each full month that the member's age is under age 65.
739	739	22 (d-10) Each person who first became a member or
740	740	23 participant under Article 8 or Article 11 of this Code on or
741	741	24 after January 1, 2011 and prior to July 6, 2017 (the effective
742	742	25 date of Public Act 100-23) shall make an irrevocable election
743	743	26 either:
744	744
745	745
746	746
747	747
748	748
749	749	SB2162 - 20 - LRB103 27597 RPS 53973 b
750	750
751	751
752	752	SB2162- 21 -LRB103 27597 RPS 53973 b SB2162 - 21 - LRB103 27597 RPS 53973 b
753	753	SB2162 - 21 - LRB103 27597 RPS 53973 b
754	754	1 (i) to be eligible for the reduced retirement age
755	755	2 provided in subsections (c-5) and (d-5) of this Section,
756	756	3 the eligibility for which is conditioned upon the member
757	757	4 or participant agreeing to the increases in employee
758	758	5 contributions for age and service annuities provided in
759	759	6 subsection (a-5) of Section 8-174 of this Code (for
760	760	7 service under Article 8) or subsection (a-5) of Section
761	761	8 11-170 of this Code (for service under Article 11); or
762	762	9 (ii) to not agree to item (i) of this subsection
763	763	10 (d-10), in which case the member or participant shall
764	764	11 continue to be subject to the retirement age provisions in
765	765	12 subsections (c) and (d) of this Section and the employee
766	766	13 contributions for age and service annuity as provided in
767	767	14 subsection (a) of Section 8-174 of this Code (for service
768	768	15 under Article 8) or subsection (a) of Section 11-170 of
769	769	16 this Code (for service under Article 11).
770	770	17 The election provided for in this subsection shall be made
771	771	18 between October 1, 2017 and November 15, 2017. A person
772	772	19 subject to this subsection who makes the required election
773	773	20 shall remain bound by that election. A person subject to this
774	774	21 subsection who fails for any reason to make the required
775	775	22 election within the time specified in this subsection shall be
776	776	23 deemed to have made the election under item (ii).
777	777	24 (d-15) Each person who first becomes a member or
778	778	25 participant under Article 12 on or after January 1, 2011 and
779	779	26 prior to January 1, 2022 shall make an irrevocable election
780	780
781	781
782	782
783	783
784	784
785	785	SB2162 - 21 - LRB103 27597 RPS 53973 b
786	786
787	787
788	788	SB2162- 22 -LRB103 27597 RPS 53973 b SB2162 - 22 - LRB103 27597 RPS 53973 b
789	789	SB2162 - 22 - LRB103 27597 RPS 53973 b
790	790	1 either:
791	791	2 (i) to be eligible for the reduced retirement age
792	792	3 specified in subsections (c) and (d) of this Section, the
793	793	4 eligibility for which is conditioned upon the member or
794	794	5 participant agreeing to the increase in employee
795	795	6 contributions for service annuities specified in
796	796	7 subsection (b) of Section 12-150; or
797	797	8 (ii) to not agree to item (i) of this subsection
798	798	9 (d-15), in which case the member or participant shall not
799	799	10 be eligible for the reduced retirement age specified in
800	800	11 subsections (c) and (d) of this Section and shall not be
801	801	12 subject to the increase in employee contributions for
802	802	13 service annuities specified in subsection (b) of Section
803	803	14 12-150.
804	804	15 The election provided for in this subsection shall be made
805	805	16 between January 1, 2022 and April 1, 2022. A person subject to
806	806	17 this subsection who makes the required election shall remain
807	807	18 bound by that election. A person subject to this subsection
808	808	19 who fails for any reason to make the required election within
809	809	20 the time specified in this subsection shall be deemed to have
810	810	21 made the election under item (ii).
811	811	22 (e) Any retirement annuity or supplemental annuity shall
812	812	23 be subject to annual increases on the January 1 occurring
813	813	24 either on or after the attainment of age 67 (age 65, with
814	814	25 respect to service under Article 12 that is subject to this
815	815	26 Section, for a member or participant under Article 12 who
816	816
817	817
818	818
819	819
820	820
821	821	SB2162 - 22 - LRB103 27597 RPS 53973 b
822	822
823	823
824	824	SB2162- 23 -LRB103 27597 RPS 53973 b SB2162 - 23 - LRB103 27597 RPS 53973 b
825	825	SB2162 - 23 - LRB103 27597 RPS 53973 b
826	826	1 first becomes a member or participant under Article 12 on or
827	827	2 after January 1, 2022 or who makes the election under item (i)
828	828	3 of subsection (d-15); and beginning on July 6, 2017 (the
829	829	4 effective date of Public Act 100-23), age 65 with respect to
830	830	5 service under Article 8 or Article 11 for eligible persons
831	831	6 who: (i) are subject to subsection (c-5) of this Section; or
832	832	7 (ii) made the election under item (i) of subsection (d-10) of
833	833	8 this Section) or the first anniversary of the annuity start
834	834	9 date, whichever is later. Each annual increase shall be
835	835	10 calculated at 3% or one-half the annual unadjusted percentage
836	836	11 increase (but not less than zero) in the consumer price
837	837	12 index-u for the 12 months ending with the September preceding
838	838	13 each November 1, whichever is less, of the originally granted
839	839	14 retirement annuity. If the annual unadjusted percentage change
840	840	15 in the consumer price index-u for the 12 months ending with the
841	841	16 September preceding each November 1 is zero or there is a
842	842	17 decrease, then the annuity shall not be increased.
843	843	18 For the purposes of Section 1-103.1 of this Code, the
844	844	19 changes made to this Section by Public Act 102-263 are
845	845	20 applicable without regard to whether the employee was in
846	846	21 active service on or after August 6, 2021 (the effective date
847	847	22 of Public Act 102-263).
848	848	23 For the purposes of Section 1-103.1 of this Code, the
849	849	24 changes made to this Section by Public Act 100-23 are
850	850	25 applicable without regard to whether the employee was in
851	851	26 active service on or after July 6, 2017 (the effective date of
852	852
853	853
854	854
855	855
856	856
857	857	SB2162 - 23 - LRB103 27597 RPS 53973 b
858	858
859	859
860	860	SB2162- 24 -LRB103 27597 RPS 53973 b SB2162 - 24 - LRB103 27597 RPS 53973 b
861	861	SB2162 - 24 - LRB103 27597 RPS 53973 b
862	862	1 Public Act 100-23).
863	863	2 (f) The initial survivor's or widow's annuity of an
864	864	3 otherwise eligible survivor or widow of a retired member or
865	865	4 participant who first became a member or participant on or
866	866	5 after January 1, 2011 shall be in the amount of 66 2/3% of the
867	867	6 retired member's or participant's retirement annuity at the
868	868	7 date of death. In the case of the death of a member or
869	869	8 participant who has not retired and who first became a member
870	870	9 or participant on or after January 1, 2011, eligibility for a
871	871	10 survivor's or widow's annuity shall be determined by the
872	872	11 applicable Article of this Code. The initial benefit shall be
873	873	12 66 2/3% of the earned annuity without a reduction due to age. A
874	874	13 child's annuity of an otherwise eligible child shall be in the
875	875	14 amount prescribed under each Article if applicable. Any
876	876	15 survivor's or widow's annuity shall be increased (1) on each
877	877	16 January 1 occurring on or after the commencement of the
878	878	17 annuity if the deceased member died while receiving a
879	879	18 retirement annuity or (2) in other cases, on each January 1
880	880	19 occurring after the first anniversary of the commencement of
881	881	20 the annuity. Each annual increase shall be calculated at 3% or
882	882	21 one-half the annual unadjusted percentage increase (but not
883	883	22 less than zero) in the consumer price index-u for the 12 months
884	884	23 ending with the September preceding each November 1, whichever
885	885	24 is less, of the originally granted survivor's annuity. If the
886	886	25 annual unadjusted percentage change in the consumer price
887	887	26 index-u for the 12 months ending with the September preceding
888	888
889	889
890	890
891	891
892	892
893	893	SB2162 - 24 - LRB103 27597 RPS 53973 b
894	894
895	895
896	896	SB2162- 25 -LRB103 27597 RPS 53973 b SB2162 - 25 - LRB103 27597 RPS 53973 b
897	897	SB2162 - 25 - LRB103 27597 RPS 53973 b
898	898	1 each November 1 is zero or there is a decrease, then the
899	899	2 annuity shall not be increased.
900	900	3 (g) The benefits in Section 14-110 apply only if the
901	901	4 person is a State policeman, a fire fighter in the fire
902	902	5 protection service of a department, a conservation police
903	903	6 officer, an investigator for the Secretary of State, an arson
904	904	7 investigator, a Commerce Commission police officer,
905	905	8 investigator for the Department of Revenue or the Illinois
906	906	9 Gaming Board, a security employee of the Department of
907	907	10 Corrections or the Department of Juvenile Justice, or a
908	908	11 security employee of the Department of Innovation and
909	909	12 Technology, as those terms are defined in subsection (b) and
910	910	13 subsection (c) of Section 14-110. A person who meets the
911	911	14 requirements of this Section is entitled to an annuity
912	912	15 calculated under the provisions of Section 14-110, in lieu of
913	913	16 the regular or minimum retirement annuity, only if the person
914	914	17 has withdrawn from service with not less than 20 years of
915	915	18 eligible creditable service and has attained age 60,
916	916	19 regardless of whether the attainment of age 60 occurs while
917	917	20 the person is still in service.
918	918	21 (g-1) The benefits in Section 14-110 apply if the person
919	919	22 is a security employee of the Department of Corrections or the
920	920	23 Department of Juvenile Justice, as those terms are defined in
921	921	24 subsection (b) and subsection (c) of Section 14-110. A person
922	922	25 who meets the requirements of this Section is entitled to an
923	923	26 annuity calculated under the provisions of Section 14-110, in
924	924
925	925
926	926
927	927
928	928
929	929	SB2162 - 25 - LRB103 27597 RPS 53973 b
930	930
931	931
932	932	SB2162- 26 -LRB103 27597 RPS 53973 b SB2162 - 26 - LRB103 27597 RPS 53973 b
933	933	SB2162 - 26 - LRB103 27597 RPS 53973 b
934	934	1 lieu of the regular or minimum retirement annuity, only if the
935	935	2 person has withdrawn from service with not less than 20 years
936	936	3 of eligible creditable service and has attained age 55,
937	937	4 regardless of whether the attainment of age 55 occurs while
938	938	5 the person is still in service.
939	939	6 (h) If a person who first becomes a member or a participant
940	940	7 of a retirement system or pension fund subject to this Section
941	941	8 on or after January 1, 2011 is receiving a retirement annuity
942	942	9 or retirement pension under that system or fund and becomes a
943	943	10 member or participant under any other system or fund created
944	944	11 by this Code and is employed on a full-time basis, except for
945	945	12 those members or participants exempted from the provisions of
946	946	13 this Section under subsection (a) of this Section, then the
947	947	14 person's retirement annuity or retirement pension under that
948	948	15 system or fund shall be suspended during that employment. Upon
949	949	16 termination of that employment, the person's retirement
950	950	17 annuity or retirement pension payments shall resume and be
951	951	18 recalculated if recalculation is provided for under the
952	952	19 applicable Article of this Code.
953	953	20 If a person who first becomes a member of a retirement
954	954	21 system or pension fund subject to this Section on or after
955	955	22 January 1, 2012 and is receiving a retirement annuity or
956	956	23 retirement pension under that system or fund and accepts on a
957	957	24 contractual basis a position to provide services to a
958	958	25 governmental entity from which he or she has retired, then
959	959	26 that person's annuity or retirement pension earned as an
960	960
961	961
962	962
963	963
964	964
965	965	SB2162 - 26 - LRB103 27597 RPS 53973 b
966	966
967	967
968	968	SB2162- 27 -LRB103 27597 RPS 53973 b SB2162 - 27 - LRB103 27597 RPS 53973 b
969	969	SB2162 - 27 - LRB103 27597 RPS 53973 b
970	970	1 active employee of the employer shall be suspended during that
971	971	2 contractual service. A person receiving an annuity or
972	972	3 retirement pension under this Code shall notify the pension
973	973	4 fund or retirement system from which he or she is receiving an
974	974	5 annuity or retirement pension, as well as his or her
975	975	6 contractual employer, of his or her retirement status before
976	976	7 accepting contractual employment. A person who fails to submit
977	977	8 such notification shall be guilty of a Class A misdemeanor and
978	978	9 required to pay a fine of $1,000. Upon termination of that
979	979	10 contractual employment, the person's retirement annuity or
980	980	11 retirement pension payments shall resume and, if appropriate,
981	981	12 be recalculated under the applicable provisions of this Code.
982	982	13 (i) (Blank).
983	983	14 (j) In the case of a conflict between the provisions of
984	984	15 this Section and any other provision of this Code, the
985	985	16 provisions of this Section shall control.
986	986	17 (Source: P.A. 101-610, eff. 1-1-20; 102-16, eff. 6-17-21;
987	987	18 102-210, eff. 1-1-22; 102-263, eff. 8-6-21; 102-813, eff.
988	988	19 5-13-22.)
989	989	20 (Text of Section from P.A. 102-956)
990	990	21 Sec. 1-160. Provisions applicable to new hires.
991	991	22 (a) The provisions of this Section apply to a person who,
992	992	23 on or after January 1, 2011, first becomes a member or a
993	993	24 participant under any reciprocal retirement system or pension
994	994	25 fund established under this Code, other than a retirement
995	995
996	996
997	997
998	998
999	999
1000	1000	SB2162 - 27 - LRB103 27597 RPS 53973 b
1001	1001
1002	1002
1003	1003	SB2162- 28 -LRB103 27597 RPS 53973 b SB2162 - 28 - LRB103 27597 RPS 53973 b
1004	1004	SB2162 - 28 - LRB103 27597 RPS 53973 b
1005	1005	1 system or pension fund established under Article 2, 3, 4, 5, 6,
1006	1006	2 7, 15, or 18 of this Code, notwithstanding any other provision
1007	1007	3 of this Code to the contrary, but do not apply to any
1008	1008	4 self-managed plan established under this Code or to any
1009	1009	5 participant of the retirement plan established under Section
1010	1010	6 22-101; except that this Section applies to a person who
1011	1011	7 elected to establish alternative credits by electing in
1012	1012	8 writing after January 1, 2011, but before August 8, 2011,
1013	1013	9 under Section 7-145.1 of this Code. Notwithstanding anything
1014	1014	10 to the contrary in this Section, for purposes of this Section,
1015	1015	11 a person who is a Tier 1 regular employee as defined in Section
1016	1016	12 7-109.4 of this Code or who participated in a retirement
1017	1017	13 system under Article 15 prior to January 1, 2011 shall be
1018	1018	14 deemed a person who first became a member or participant prior
1019	1019	15 to January 1, 2011 under any retirement system or pension fund
1020	1020	16 subject to this Section. The changes made to this Section by
1021	1021	17 Public Act 98-596 are a clarification of existing law and are
1022	1022	18 intended to be retroactive to January 1, 2011 (the effective
1023	1023	19 date of Public Act 96-889), notwithstanding the provisions of
1024	1024	20 Section 1-103.1 of this Code.
1025	1025	21 This Section does not apply to a person who first becomes a
1026	1026	22 noncovered employee under Article 14 on or after the
1027	1027	23 implementation date of the plan created under Section 1-161
1028	1028	24 for that Article, unless that person elects under subsection
1029	1029	25 (b) of Section 1-161 to instead receive the benefits provided
1030	1030	26 under this Section and the applicable provisions of that
1031	1031
1032	1032
1033	1033
1034	1034
1035	1035
1036	1036	SB2162 - 28 - LRB103 27597 RPS 53973 b
1037	1037
1038	1038
1039	1039	SB2162- 29 -LRB103 27597 RPS 53973 b SB2162 - 29 - LRB103 27597 RPS 53973 b
1040	1040	SB2162 - 29 - LRB103 27597 RPS 53973 b
1041	1041	1 Article.
1042	1042	2 This Section does not apply to a person who first becomes a
1043	1043	3 member or participant under Article 16 on or after the
1044	1044	4 implementation date of the plan created under Section 1-161
1045	1045	5 for that Article, unless that person elects under subsection
1046	1046	6 (b) of Section 1-161 to instead receive the benefits provided
1047	1047	7 under this Section and the applicable provisions of that
1048	1048	8 Article.
1049	1049	9 This Section does not apply to a person who elects under
1050	1050	10 subsection (c-5) of Section 1-161 to receive the benefits
1051	1051	11 under Section 1-161.
1052	1052	12 This Section does not apply to a person who first becomes a
1053	1053	13 member or participant of an affected pension fund on or after 6
1054	1054	14 months after the resolution or ordinance date, as defined in
1055	1055	15 Section 1-162, unless that person elects under subsection (c)
1056	1056	16 of Section 1-162 to receive the benefits provided under this
1057	1057	17 Section and the applicable provisions of the Article under
1058	1058	18 which he or she is a member or participant.
1059	1059	19 (b) "Final average salary" means, except as otherwise
1060	1060	20 provided in this subsection, the average monthly (or annual)
1061	1061	21 salary obtained by dividing the total salary or earnings
1062	1062	22 calculated under the Article applicable to the member or
1063	1063	23 participant during the 96 consecutive months (or 8 consecutive
1064	1064	24 years) of service within the last 120 months (or 10 years) of
1065	1065	25 service in which the total salary or earnings calculated under
1066	1066	26 the applicable Article was the highest by the number of months
1067	1067
1068	1068
1069	1069
1070	1070
1071	1071
1072	1072	SB2162 - 29 - LRB103 27597 RPS 53973 b
1073	1073
1074	1074
1075	1075	SB2162- 30 -LRB103 27597 RPS 53973 b SB2162 - 30 - LRB103 27597 RPS 53973 b
1076	1076	SB2162 - 30 - LRB103 27597 RPS 53973 b
1077	1077	1 (or years) of service in that period. For the purposes of a
1078	1078	2 person who first becomes a member or participant of any
1079	1079	3 retirement system or pension fund to which this Section
1080	1080	4 applies on or after January 1, 2011, in this Code, "final
1081	1081	5 average salary" shall be substituted for the following:
1082	1082	6 (1) (Blank).
1083	1083	7 (2) In Articles 8, 9, 10, 11, and 12, "highest average
1084	1084	8 annual salary for any 4 consecutive years within the last
1085	1085	9 10 years of service immediately preceding the date of
1086	1086	10 withdrawal".
1087	1087	11 (3) In Article 13, "average final salary".
1088	1088	12 (4) In Article 14, "final average compensation".
1089	1089	13 (5) In Article 17, "average salary".
1090	1090	14 (6) In Section 22-207, "wages or salary received by
1091	1091	15 him at the date of retirement or discharge".
1092	1092	16 A member of the Teachers' Retirement System of the State
1093	1093	17 of Illinois who retires on or after June 1, 2021 and for whom
1094	1094	18 the 2020-2021 school year is used in the calculation of the
1095	1095	19 member's final average salary shall use the higher of the
1096	1096	20 following for the purpose of determining the member's final
1097	1097	21 average salary:
1098	1098	22 (A) the amount otherwise calculated under the first
1099	1099	23 paragraph of this subsection; or
1100	1100	24 (B) an amount calculated by the Teachers' Retirement
1101	1101	25 System of the State of Illinois using the average of the
1102	1102	26 monthly (or annual) salary obtained by dividing the total
1103	1103
1104	1104
1105	1105
1106	1106
1107	1107
1108	1108	SB2162 - 30 - LRB103 27597 RPS 53973 b
1109	1109
1110	1110
1111	1111	SB2162- 31 -LRB103 27597 RPS 53973 b SB2162 - 31 - LRB103 27597 RPS 53973 b
1112	1112	SB2162 - 31 - LRB103 27597 RPS 53973 b
1113	1113	1 salary or earnings calculated under Article 16 applicable
1114	1114	2 to the member or participant during the 96 months (or 8
1115	1115	3 years) of service within the last 120 months (or 10 years)
1116	1116	4 of service in which the total salary or earnings
1117	1117	5 calculated under the Article was the highest by the number
1118	1118	6 of months (or years) of service in that period.
1119	1119	7 (b-5) Beginning on January 1, 2011, for all purposes under
1120	1120	8 this Code (including without limitation the calculation of
1121	1121	9 benefits and employee contributions), the annual earnings,
1122	1122	10 salary, or wages (based on the plan year) of a member or
1123	1123	11 participant to whom this Section applies shall not exceed
1124	1124	12 $106,800; however, that amount shall annually thereafter be
1125	1125	13 increased by the lesser of (i) 3% of that amount, including all
1126	1126	14 previous adjustments, or (ii) one-half the annual unadjusted
1127	1127	15 percentage increase (but not less than zero) in the consumer
1128	1128	16 price index-u for the 12 months ending with the September
1129	1129	17 preceding each November 1, including all previous adjustments.
1130	1130	18 For the purposes of this Section, "consumer price index-u"
1131	1131	19 means the index published by the Bureau of Labor Statistics of
1132	1132	20 the United States Department of Labor that measures the
1133	1133	21 average change in prices of goods and services purchased by
1134	1134	22 all urban consumers, United States city average, all items,
1135	1135	23 1982-84 = 100. The new amount resulting from each annual
1136	1136	24 adjustment shall be determined by the Public Pension Division
1137	1137	25 of the Department of Insurance and made available to the
1138	1138	26 boards of the retirement systems and pension funds by November
1139	1139
1140	1140
1141	1141
1142	1142
1143	1143
1144	1144	SB2162 - 31 - LRB103 27597 RPS 53973 b
1145	1145
1146	1146
1147	1147	SB2162- 32 -LRB103 27597 RPS 53973 b SB2162 - 32 - LRB103 27597 RPS 53973 b
1148	1148	SB2162 - 32 - LRB103 27597 RPS 53973 b
1149	1149	1 1 of each year.
1150	1150	2 (c) A member or participant is entitled to a retirement
1151	1151	3 annuity upon written application if he or she has attained age
1152	1152	4 67 (age 65, with respect to service under Article 12 that is
1153	1153	5 subject to this Section, for a member or participant under
1154	1154	6 Article 12 who first becomes a member or participant under
1155	1155	7 Article 12 on or after January 1, 2022 or who makes the
1156	1156	8 election under item (i) of subsection (d-15) of this Section)
1157	1157	9 and has at least 10 years of service credit and is otherwise
1158	1158	10 eligible under the requirements of the applicable Article.
1159	1159	11 A member or participant who has attained age 62 (age 60,
1160	1160	12 with respect to service under Article 12 that is subject to
1161	1161	13 this Section, for a member or participant under Article 12 who
1162	1162	14 first becomes a member or participant under Article 12 on or
1163	1163	15 after January 1, 2022 or who makes the election under item (i)
1164	1164	16 of subsection (d-15) of this Section) and has at least 10 years
1165	1165	17 of service credit and is otherwise eligible under the
1166	1166	18 requirements of the applicable Article may elect to receive
1167	1167	19 the lower retirement annuity provided in subsection (d) of
1168	1168	20 this Section.
1169	1169	21 (c-5) A person who first becomes a member or a participant
1170	1170	22 subject to this Section on or after July 6, 2017 (the effective
1171	1171	23 date of Public Act 100-23), notwithstanding any other
1172	1172	24 provision of this Code to the contrary, is entitled to a
1173	1173	25 retirement annuity under Article 8 or Article 11 upon written
1174	1174	26 application if he or she has attained age 65 and has at least
1175	1175
1176	1176
1177	1177
1178	1178
1179	1179
1180	1180	SB2162 - 32 - LRB103 27597 RPS 53973 b
1181	1181
1182	1182
1183	1183	SB2162- 33 -LRB103 27597 RPS 53973 b SB2162 - 33 - LRB103 27597 RPS 53973 b
1184	1184	SB2162 - 33 - LRB103 27597 RPS 53973 b
1185	1185	1 10 years of service credit and is otherwise eligible under the
1186	1186	2 requirements of Article 8 or Article 11 of this Code,
1187	1187	3 whichever is applicable.
1188	1188	4 (d) The retirement annuity of a member or participant who
1189	1189	5 is retiring after attaining age 62 (age 60, with respect to
1190	1190	6 service under Article 12 that is subject to this Section, for a
1191	1191	7 member or participant under Article 12 who first becomes a
1192	1192	8 member or participant under Article 12 on or after January 1,
1193	1193	9 2022 or who makes the election under item (i) of subsection
1194	1194	10 (d-15) of this Section) with at least 10 years of service
1195	1195	11 credit shall be reduced by one-half of 1% for each full month
1196	1196	12 that the member's age is under age 67 (age 65, with respect to
1197	1197	13 service under Article 12 that is subject to this Section, for a
1198	1198	14 member or participant under Article 12 who first becomes a
1199	1199	15 member or participant under Article 12 on or after January 1,
1200	1200	16 2022 or who makes the election under item (i) of subsection
1201	1201	17 (d-15) of this Section).
1202	1202	18 (d-5) The retirement annuity payable under Article 8 or
1203	1203	19 Article 11 to an eligible person subject to subsection (c-5)
1204	1204	20 of this Section who is retiring at age 60 with at least 10
1205	1205	21 years of service credit shall be reduced by one-half of 1% for
1206	1206	22 each full month that the member's age is under age 65.
1207	1207	23 (d-10) Each person who first became a member or
1208	1208	24 participant under Article 8 or Article 11 of this Code on or
1209	1209	25 after January 1, 2011 and prior to July 6, 2017 (the effective
1210	1210	26 date of Public Act 100-23) shall make an irrevocable election
1211	1211
1212	1212
1213	1213
1214	1214
1215	1215
1216	1216	SB2162 - 33 - LRB103 27597 RPS 53973 b
1217	1217
1218	1218
1219	1219	SB2162- 34 -LRB103 27597 RPS 53973 b SB2162 - 34 - LRB103 27597 RPS 53973 b
1220	1220	SB2162 - 34 - LRB103 27597 RPS 53973 b
1221	1221	1 either:
1222	1222	2 (i) to be eligible for the reduced retirement age
1223	1223	3 provided in subsections (c-5) and (d-5) of this Section,
1224	1224	4 the eligibility for which is conditioned upon the member
1225	1225	5 or participant agreeing to the increases in employee
1226	1226	6 contributions for age and service annuities provided in
1227	1227	7 subsection (a-5) of Section 8-174 of this Code (for
1228	1228	8 service under Article 8) or subsection (a-5) of Section
1229	1229	9 11-170 of this Code (for service under Article 11); or
1230	1230	10 (ii) to not agree to item (i) of this subsection
1231	1231	11 (d-10), in which case the member or participant shall
1232	1232	12 continue to be subject to the retirement age provisions in
1233	1233	13 subsections (c) and (d) of this Section and the employee
1234	1234	14 contributions for age and service annuity as provided in
1235	1235	15 subsection (a) of Section 8-174 of this Code (for service
1236	1236	16 under Article 8) or subsection (a) of Section 11-170 of
1237	1237	17 this Code (for service under Article 11).
1238	1238	18 The election provided for in this subsection shall be made
1239	1239	19 between October 1, 2017 and November 15, 2017. A person
1240	1240	20 subject to this subsection who makes the required election
1241	1241	21 shall remain bound by that election. A person subject to this
1242	1242	22 subsection who fails for any reason to make the required
1243	1243	23 election within the time specified in this subsection shall be
1244	1244	24 deemed to have made the election under item (ii).
1245	1245	25 (d-15) Each person who first becomes a member or
1246	1246	26 participant under Article 12 on or after January 1, 2011 and
1247	1247
1248	1248
1249	1249
1250	1250
1251	1251
1252	1252	SB2162 - 34 - LRB103 27597 RPS 53973 b
1253	1253
1254	1254
1255	1255	SB2162- 35 -LRB103 27597 RPS 53973 b SB2162 - 35 - LRB103 27597 RPS 53973 b
1256	1256	SB2162 - 35 - LRB103 27597 RPS 53973 b
1257	1257	1 prior to January 1, 2022 shall make an irrevocable election
1258	1258	2 either:
1259	1259	3 (i) to be eligible for the reduced retirement age
1260	1260	4 specified in subsections (c) and (d) of this Section, the
1261	1261	5 eligibility for which is conditioned upon the member or
1262	1262	6 participant agreeing to the increase in employee
1263	1263	7 contributions for service annuities specified in
1264	1264	8 subsection (b) of Section 12-150; or
1265	1265	9 (ii) to not agree to item (i) of this subsection
1266	1266	10 (d-15), in which case the member or participant shall not
1267	1267	11 be eligible for the reduced retirement age specified in
1268	1268	12 subsections (c) and (d) of this Section and shall not be
1269	1269	13 subject to the increase in employee contributions for
1270	1270	14 service annuities specified in subsection (b) of Section
1271	1271	15 12-150.
1272	1272	16 The election provided for in this subsection shall be made
1273	1273	17 between January 1, 2022 and April 1, 2022. A person subject to
1274	1274	18 this subsection who makes the required election shall remain
1275	1275	19 bound by that election. A person subject to this subsection
1276	1276	20 who fails for any reason to make the required election within
1277	1277	21 the time specified in this subsection shall be deemed to have
1278	1278	22 made the election under item (ii).
1279	1279	23 (e) Any retirement annuity or supplemental annuity shall
1280	1280	24 be subject to annual increases on the January 1 occurring
1281	1281	25 either on or after the attainment of age 67 (age 65, with
1282	1282	26 respect to service under Article 12 that is subject to this
1283	1283
1284	1284
1285	1285
1286	1286
1287	1287
1288	1288	SB2162 - 35 - LRB103 27597 RPS 53973 b
1289	1289
1290	1290
1291	1291	SB2162- 36 -LRB103 27597 RPS 53973 b SB2162 - 36 - LRB103 27597 RPS 53973 b
1292	1292	SB2162 - 36 - LRB103 27597 RPS 53973 b
1293	1293	1 Section, for a member or participant under Article 12 who
1294	1294	2 first becomes a member or participant under Article 12 on or
1295	1295	3 after January 1, 2022 or who makes the election under item (i)
1296	1296	4 of subsection (d-15); and beginning on July 6, 2017 (the
1297	1297	5 effective date of Public Act 100-23), age 65 with respect to
1298	1298	6 service under Article 8 or Article 11 for eligible persons
1299	1299	7 who: (i) are subject to subsection (c-5) of this Section; or
1300	1300	8 (ii) made the election under item (i) of subsection (d-10) of
1301	1301	9 this Section) or the first anniversary of the annuity start
1302	1302	10 date, whichever is later. Each annual increase shall be
1303	1303	11 calculated at 3% or one-half the annual unadjusted percentage
1304	1304	12 increase (but not less than zero) in the consumer price
1305	1305	13 index-u for the 12 months ending with the September preceding
1306	1306	14 each November 1, whichever is less, of the originally granted
1307	1307	15 retirement annuity. If the annual unadjusted percentage change
1308	1308	16 in the consumer price index-u for the 12 months ending with the
1309	1309	17 September preceding each November 1 is zero or there is a
1310	1310	18 decrease, then the annuity shall not be increased.
1311	1311	19 For the purposes of Section 1-103.1 of this Code, the
1312	1312	20 changes made to this Section by Public Act 102-263 are
1313	1313	21 applicable without regard to whether the employee was in
1314	1314	22 active service on or after August 6, 2021 (the effective date
1315	1315	23 of Public Act 102-263).
1316	1316	24 For the purposes of Section 1-103.1 of this Code, the
1317	1317	25 changes made to this Section by Public Act 100-23 are
1318	1318	26 applicable without regard to whether the employee was in
1319	1319
1320	1320
1321	1321
1322	1322
1323	1323
1324	1324	SB2162 - 36 - LRB103 27597 RPS 53973 b
1325	1325
1326	1326
1327	1327	SB2162- 37 -LRB103 27597 RPS 53973 b SB2162 - 37 - LRB103 27597 RPS 53973 b
1328	1328	SB2162 - 37 - LRB103 27597 RPS 53973 b
1329	1329	1 active service on or after July 6, 2017 (the effective date of
1330	1330	2 Public Act 100-23).
1331	1331	3 (f) The initial survivor's or widow's annuity of an
1332	1332	4 otherwise eligible survivor or widow of a retired member or
1333	1333	5 participant who first became a member or participant on or
1334	1334	6 after January 1, 2011 shall be in the amount of 66 2/3% of the
1335	1335	7 retired member's or participant's retirement annuity at the
1336	1336	8 date of death. In the case of the death of a member or
1337	1337	9 participant who has not retired and who first became a member
1338	1338	10 or participant on or after January 1, 2011, eligibility for a
1339	1339	11 survivor's or widow's annuity shall be determined by the
1340	1340	12 applicable Article of this Code. The initial benefit shall be
1341	1341	13 66 2/3% of the earned annuity without a reduction due to age. A
1342	1342	14 child's annuity of an otherwise eligible child shall be in the
1343	1343	15 amount prescribed under each Article if applicable. Any
1344	1344	16 survivor's or widow's annuity shall be increased (1) on each
1345	1345	17 January 1 occurring on or after the commencement of the
1346	1346	18 annuity if the deceased member died while receiving a
1347	1347	19 retirement annuity or (2) in other cases, on each January 1
1348	1348	20 occurring after the first anniversary of the commencement of
1349	1349	21 the annuity. Each annual increase shall be calculated at 3% or
1350	1350	22 one-half the annual unadjusted percentage increase (but not
1351	1351	23 less than zero) in the consumer price index-u for the 12 months
1352	1352	24 ending with the September preceding each November 1, whichever
1353	1353	25 is less, of the originally granted survivor's annuity. If the
1354	1354	26 annual unadjusted percentage change in the consumer price
1355	1355
1356	1356
1357	1357
1358	1358
1359	1359
1360	1360	SB2162 - 37 - LRB103 27597 RPS 53973 b
1361	1361
1362	1362
1363	1363	SB2162- 38 -LRB103 27597 RPS 53973 b SB2162 - 38 - LRB103 27597 RPS 53973 b
1364	1364	SB2162 - 38 - LRB103 27597 RPS 53973 b
1365	1365	1 index-u for the 12 months ending with the September preceding
1366	1366	2 each November 1 is zero or there is a decrease, then the
1367	1367	3 annuity shall not be increased.
1368	1368	4 (g) The benefits in Section 14-110 apply only if the
1369	1369	5 person is a State policeman, a fire fighter in the fire
1370	1370	6 protection service of a department, a conservation police
1371	1371	7 officer, an investigator for the Secretary of State, an
1372	1372	8 investigator for the Office of the Attorney General, an arson
1373	1373	9 investigator, a Commerce Commission police officer,
1374	1374	10 investigator for the Department of Revenue or the Illinois
1375	1375	11 Gaming Board, a security employee of the Department of
1376	1376	12 Corrections or the Department of Juvenile Justice, or a
1377	1377	13 security employee of the Department of Innovation and
1378	1378	14 Technology, as those terms are defined in subsection (b) and
1379	1379	15 subsection (c) of Section 14-110. A person who meets the
1380	1380	16 requirements of this Section is entitled to an annuity
1381	1381	17 calculated under the provisions of Section 14-110, in lieu of
1382	1382	18 the regular or minimum retirement annuity, only if the person
1383	1383	19 has withdrawn from service with not less than 20 years of
1384	1384	20 eligible creditable service and has attained age 60,
1385	1385	21 regardless of whether the attainment of age 60 occurs while
1386	1386	22 the person is still in service.
1387	1387	23 (g-1) The benefits in Section 14-110 apply if the person
1388	1388	24 is a security employee of the Department of Corrections or the
1389	1389	25 Department of Juvenile Justice, as those terms are defined in
1390	1390	26 subsection (b) and subsection (c) of Section 14-110. A person
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1401	1401	1 who meets the requirements of this Section is entitled to an
1402	1402	2 annuity calculated under the provisions of Section 14-110, in
1403	1403	3 lieu of the regular or minimum retirement annuity, only if the
1404	1404	4 person has withdrawn from service with not less than 20 years
1405	1405	5 of eligible creditable service and has attained age 55,
1406	1406	6 regardless of whether the attainment of age 55 occurs while
1407	1407	7 the person is still in service.
1408	1408	8 (h) If a person who first becomes a member or a participant
1409	1409	9 of a retirement system or pension fund subject to this Section
1410	1410	10 on or after January 1, 2011 is receiving a retirement annuity
1411	1411	11 or retirement pension under that system or fund and becomes a
1412	1412	12 member or participant under any other system or fund created
1413	1413	13 by this Code and is employed on a full-time basis, except for
1414	1414	14 those members or participants exempted from the provisions of
1415	1415	15 this Section under subsection (a) of this Section, then the
1416	1416	16 person's retirement annuity or retirement pension under that
1417	1417	17 system or fund shall be suspended during that employment. Upon
1418	1418	18 termination of that employment, the person's retirement
1419	1419	19 annuity or retirement pension payments shall resume and be
1420	1420	20 recalculated if recalculation is provided for under the
1421	1421	21 applicable Article of this Code.
1422	1422	22 If a person who first becomes a member of a retirement
1423	1423	23 system or pension fund subject to this Section on or after
1424	1424	24 January 1, 2012 and is receiving a retirement annuity or
1425	1425	25 retirement pension under that system or fund and accepts on a
1426	1426	26 contractual basis a position to provide services to a
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1437	1437	1 governmental entity from which he or she has retired, then
1438	1438	2 that person's annuity or retirement pension earned as an
1439	1439	3 active employee of the employer shall be suspended during that
1440	1440	4 contractual service. A person receiving an annuity or
1441	1441	5 retirement pension under this Code shall notify the pension
1442	1442	6 fund or retirement system from which he or she is receiving an
1443	1443	7 annuity or retirement pension, as well as his or her
1444	1444	8 contractual employer, of his or her retirement status before
1445	1445	9 accepting contractual employment. A person who fails to submit
1446	1446	10 such notification shall be guilty of a Class A misdemeanor and
1447	1447	11 required to pay a fine of $1,000. Upon termination of that
1448	1448	12 contractual employment, the person's retirement annuity or
1449	1449	13 retirement pension payments shall resume and, if appropriate,
1450	1450	14 be recalculated under the applicable provisions of this Code.
1451	1451	15 (i) (Blank).
1452	1452	16 (j) In the case of a conflict between the provisions of
1453	1453	17 this Section and any other provision of this Code, the
1454	1454	18 provisions of this Section shall control.
1455	1455	19 (Source: P.A. 101-610, eff. 1-1-20; 102-16, eff. 6-17-21;
1456	1456	20 102-210, eff. 1-1-22; 102-263, eff. 8-6-21; 102-956, eff.
1457	1457	21 5-27-22.)
1458	1458	22 (40 ILCS 5/14-152.1)
1459	1459	23 Sec. 14-152.1. Application and expiration of new benefit
1460	1460	24 increases.
1461	1461	25 (a) As used in this Section, "new benefit increase" means
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1472	1472	1 an increase in the amount of any benefit provided under this
1473	1473	2 Article, or an expansion of the conditions of eligibility for
1474	1474	3 any benefit under this Article, that results from an amendment
1475	1475	4 to this Code that takes effect after June 1, 2005 (the
1476	1476	5 effective date of Public Act 94-4). "New benefit increase",
1477	1477	6 however, does not include any benefit increase resulting from
1478	1478	7 the changes made to Article 1 or this Article by Public Act
1479	1479	8 96-37, Public Act 100-23, Public Act 100-587, Public Act
1480	1480	9 100-611, Public Act 101-10, Public Act 101-610, Public Act
1481	1481	10 102-210, Public Act 102-856, Public Act 102-956, or this
1482	1482	11 amendatory Act of the 103rd General Assembly this amendatory
1483	1483	12 Act of the 102nd General Assembly.
1484	1484	13 (b) Notwithstanding any other provision of this Code or
1485	1485	14 any subsequent amendment to this Code, every new benefit
1486	1486	15 increase is subject to this Section and shall be deemed to be
1487	1487	16 granted only in conformance with and contingent upon
1488	1488	17 compliance with the provisions of this Section.
1489	1489	18 (c) The Public Act enacting a new benefit increase must
1490	1490	19 identify and provide for payment to the System of additional
1491	1491	20 funding at least sufficient to fund the resulting annual
1492	1492	21 increase in cost to the System as it accrues.
1493	1493	22 Every new benefit increase is contingent upon the General
1494	1494	23 Assembly providing the additional funding required under this
1495	1495	24 subsection. The Commission on Government Forecasting and
1496	1496	25 Accountability shall analyze whether adequate additional
1497	1497	26 funding has been provided for the new benefit increase and
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1508	1508	1 shall report its analysis to the Public Pension Division of
1509	1509	2 the Department of Insurance. A new benefit increase created by
1510	1510	3 a Public Act that does not include the additional funding
1511	1511	4 required under this subsection is null and void. If the Public
1512	1512	5 Pension Division determines that the additional funding
1513	1513	6 provided for a new benefit increase under this subsection is
1514	1514	7 or has become inadequate, it may so certify to the Governor and
1515	1515	8 the State Comptroller and, in the absence of corrective action
1516	1516	9 by the General Assembly, the new benefit increase shall expire
1517	1517	10 at the end of the fiscal year in which the certification is
1518	1518	11 made.
1519	1519	12 (d) Every new benefit increase shall expire 5 years after
1520	1520	13 its effective date or on such earlier date as may be specified
1521	1521	14 in the language enacting the new benefit increase or provided
1522	1522	15 under subsection (c). This does not prevent the General
1523	1523	16 Assembly from extending or re-creating a new benefit increase
1524	1524	17 by law.
1525	1525	18 (e) Except as otherwise provided in the language creating
1526	1526	19 the new benefit increase, a new benefit increase that expires
1527	1527	20 under this Section continues to apply to persons who applied
1528	1528	21 and qualified for the affected benefit while the new benefit
1529	1529	22 increase was in effect and to the affected beneficiaries and
1530	1530	23 alternate payees of such persons, but does not apply to any
1531	1531	24 other person, including, without limitation, a person who
1532	1532	25 continues in service after the expiration date and did not
1533	1533	26 apply and qualify for the affected benefit while the new
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1544	1544	1 benefit increase was in effect.
1545	1545	2 (Source: P.A. 101-10, eff. 6-5-19; 101-81, eff. 7-12-19;
1546	1546	3 101-610, eff. 1-1-20; 102-210, eff. 7-30-21; 102-856, eff.
1547	1547	4 1-1-23; 102-956, eff. 5-27-22.)
1548	1548	5 Section 99. Effective date. This Act takes effect upon
1549	1549	6 becoming law.
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