Illinois 2023-2024 Regular Session

Illinois Senate Bill SB3073 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 SB3073 Introduced 2/2/2024, by Sen. Dan McConchie SYNOPSIS AS INTRODUCED: 5 ILCS 375/3 from Ch. 127, par. 5235 ILCS 375/10 from Ch. 127, par. 53040 ILCS 5/1-16040 ILCS 5/1-16140 ILCS 5/14-103.05 from Ch. 108 1/2, par. 14-103.0540 ILCS 5/14-103.4140 ILCS 5/14-152.140 ILCS 5/14-155.5 new40 ILCS 5/20-121 from Ch. 108 1/2, par. 20-12140 ILCS 5/20-123 from Ch. 108 1/2, par. 20-12340 ILCS 5/20-124 from Ch. 108 1/2, par. 20-12440 ILCS 5/20-125 from Ch. 108 1/2, par. 20-125 Amends the Illinois Pension Code. Requires the State Employees' Retirement System of Illinois to prepare and implement a defined contribution plan by July 1, 2026 that aggregates State and employee contributions in individual participant accounts that are used for payouts after retirement. Provides that a Tier 1 or Tier 2 participant may irrevocably elect to participate in the defined contribution plan instead of the defined benefit plan and may also elect to terminate all participation in the defined benefit plan and to have a specified amount credited to his or her account under the defined contribution plan. Provides that a person who first becomes an employee after the effective date of the amendatory Act is not required to participate in the System as a condition of employment. Provides that an employee may elect not to participate in the System by notifying the System in writing in a manner specified by the System. Provides that any benefit increase that results from the amendatory Act is excluded from the definition of "new benefit increase". Makes conforming and other changes. Makes related changes in the State Employees Group Insurance Act of 1971. Effective immediately. LRB103 37686 RPS 67813 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB3073 Introduced 2/2/2024, by Sen. Dan McConchie SYNOPSIS AS INTRODUCED: 5 ILCS 375/3 from Ch. 127, par. 5235 ILCS 375/10 from Ch. 127, par. 53040 ILCS 5/1-16040 ILCS 5/1-16140 ILCS 5/14-103.05 from Ch. 108 1/2, par. 14-103.0540 ILCS 5/14-103.4140 ILCS 5/14-152.140 ILCS 5/14-155.5 new40 ILCS 5/20-121 from Ch. 108 1/2, par. 20-12140 ILCS 5/20-123 from Ch. 108 1/2, par. 20-12340 ILCS 5/20-124 from Ch. 108 1/2, par. 20-12440 ILCS 5/20-125 from Ch. 108 1/2, par. 20-125 5 ILCS 375/3 from Ch. 127, par. 523 5 ILCS 375/10 from Ch. 127, par. 530 40 ILCS 5/1-160 40 ILCS 5/1-161 40 ILCS 5/14-103.05 from Ch. 108 1/2, par. 14-103.05 40 ILCS 5/14-103.41 40 ILCS 5/14-152.1 40 ILCS 5/14-155.5 new 40 ILCS 5/20-121 from Ch. 108 1/2, par. 20-121 40 ILCS 5/20-123 from Ch. 108 1/2, par. 20-123 40 ILCS 5/20-124 from Ch. 108 1/2, par. 20-124 40 ILCS 5/20-125 from Ch. 108 1/2, par. 20-125 Amends the Illinois Pension Code. Requires the State Employees' Retirement System of Illinois to prepare and implement a defined contribution plan by July 1, 2026 that aggregates State and employee contributions in individual participant accounts that are used for payouts after retirement. Provides that a Tier 1 or Tier 2 participant may irrevocably elect to participate in the defined contribution plan instead of the defined benefit plan and may also elect to terminate all participation in the defined benefit plan and to have a specified amount credited to his or her account under the defined contribution plan. Provides that a person who first becomes an employee after the effective date of the amendatory Act is not required to participate in the System as a condition of employment. Provides that an employee may elect not to participate in the System by notifying the System in writing in a manner specified by the System. Provides that any benefit increase that results from the amendatory Act is excluded from the definition of "new benefit increase". Makes conforming and other changes. Makes related changes in the State Employees Group Insurance Act of 1971. Effective immediately. LRB103 37686 RPS 67813 b LRB103 37686 RPS 67813 b A BILL FOR
2	2	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB3073 Introduced 2/2/2024, by Sen. Dan McConchie SYNOPSIS AS INTRODUCED:
3	3	5 ILCS 375/3 from Ch. 127, par. 5235 ILCS 375/10 from Ch. 127, par. 53040 ILCS 5/1-16040 ILCS 5/1-16140 ILCS 5/14-103.05 from Ch. 108 1/2, par. 14-103.0540 ILCS 5/14-103.4140 ILCS 5/14-152.140 ILCS 5/14-155.5 new40 ILCS 5/20-121 from Ch. 108 1/2, par. 20-12140 ILCS 5/20-123 from Ch. 108 1/2, par. 20-12340 ILCS 5/20-124 from Ch. 108 1/2, par. 20-12440 ILCS 5/20-125 from Ch. 108 1/2, par. 20-125 5 ILCS 375/3 from Ch. 127, par. 523 5 ILCS 375/10 from Ch. 127, par. 530 40 ILCS 5/1-160 40 ILCS 5/1-161 40 ILCS 5/14-103.05 from Ch. 108 1/2, par. 14-103.05 40 ILCS 5/14-103.41 40 ILCS 5/14-152.1 40 ILCS 5/14-155.5 new 40 ILCS 5/20-121 from Ch. 108 1/2, par. 20-121 40 ILCS 5/20-123 from Ch. 108 1/2, par. 20-123 40 ILCS 5/20-124 from Ch. 108 1/2, par. 20-124 40 ILCS 5/20-125 from Ch. 108 1/2, par. 20-125
4	4	5 ILCS 375/3 from Ch. 127, par. 523
5	5	5 ILCS 375/10 from Ch. 127, par. 530
6	6	40 ILCS 5/1-160
7	7	40 ILCS 5/1-161
8	8	40 ILCS 5/14-103.05 from Ch. 108 1/2, par. 14-103.05
9	9	40 ILCS 5/14-103.41
10	10	40 ILCS 5/14-152.1
11	11	40 ILCS 5/14-155.5 new
12	12	40 ILCS 5/20-121 from Ch. 108 1/2, par. 20-121
13	13	40 ILCS 5/20-123 from Ch. 108 1/2, par. 20-123
14	14	40 ILCS 5/20-124 from Ch. 108 1/2, par. 20-124
15	15	40 ILCS 5/20-125 from Ch. 108 1/2, par. 20-125
16	16	Amends the Illinois Pension Code. Requires the State Employees' Retirement System of Illinois to prepare and implement a defined contribution plan by July 1, 2026 that aggregates State and employee contributions in individual participant accounts that are used for payouts after retirement. Provides that a Tier 1 or Tier 2 participant may irrevocably elect to participate in the defined contribution plan instead of the defined benefit plan and may also elect to terminate all participation in the defined benefit plan and to have a specified amount credited to his or her account under the defined contribution plan. Provides that a person who first becomes an employee after the effective date of the amendatory Act is not required to participate in the System as a condition of employment. Provides that an employee may elect not to participate in the System by notifying the System in writing in a manner specified by the System. Provides that any benefit increase that results from the amendatory Act is excluded from the definition of "new benefit increase". Makes conforming and other changes. Makes related changes in the State Employees Group Insurance Act of 1971. Effective immediately.
17	17	LRB103 37686 RPS 67813 b LRB103 37686 RPS 67813 b
18	18	LRB103 37686 RPS 67813 b
19	19	A BILL FOR
20	20	SB3073LRB103 37686 RPS 67813 b SB3073 LRB103 37686 RPS 67813 b
21	21	SB3073 LRB103 37686 RPS 67813 b
22	22	1 AN ACT concerning public employee benefits.
23	23	2 Be it enacted by the People of the State of Illinois,
24	24	3 represented in the General Assembly:
25	25	4 Section 5. The State Employees Group Insurance Act of 1971
26	26	5 is amended by changing Sections 3 and 10 as follows:
27	27	6 (5 ILCS 375/3) (from Ch. 127, par. 523)
28	28	7 Sec. 3. Definitions. Unless the context otherwise
29	29	8 requires, the following words and phrases as used in this Act
30	30	9 shall have the following meanings. The Department may define
31	31	10 these and other words and phrases separately for the purpose
32	32	11 of implementing specific programs providing benefits under
33	33	12 this Act.
34	34	13 (a) "Administrative service organization" means any
35	35	14 person, firm or corporation experienced in the handling of
36	36	15 claims which is fully qualified, financially sound and capable
37	37	16 of meeting the service requirements of a contract of
38	38	17 administration executed with the Department.
39	39	18 (b) "Annuitant" means (1) an employee who retires, or has
40	40	19 retired, on or after January 1, 1966 on an immediate annuity
41	41	20 under the provisions of Article Articles 2, 14 (including an
42	42	21 employee who has elected to receive an alternative retirement
43	43	22 cancellation payment under Section 14-108.5 of the Illinois
44	44	23 Pension Code in lieu of an annuity; an employee who, in lieu of
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48	48	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB3073 Introduced 2/2/2024, by Sen. Dan McConchie SYNOPSIS AS INTRODUCED:
49	49	5 ILCS 375/3 from Ch. 127, par. 5235 ILCS 375/10 from Ch. 127, par. 53040 ILCS 5/1-16040 ILCS 5/1-16140 ILCS 5/14-103.05 from Ch. 108 1/2, par. 14-103.0540 ILCS 5/14-103.4140 ILCS 5/14-152.140 ILCS 5/14-155.5 new40 ILCS 5/20-121 from Ch. 108 1/2, par. 20-12140 ILCS 5/20-123 from Ch. 108 1/2, par. 20-12340 ILCS 5/20-124 from Ch. 108 1/2, par. 20-12440 ILCS 5/20-125 from Ch. 108 1/2, par. 20-125 5 ILCS 375/3 from Ch. 127, par. 523 5 ILCS 375/10 from Ch. 127, par. 530 40 ILCS 5/1-160 40 ILCS 5/1-161 40 ILCS 5/14-103.05 from Ch. 108 1/2, par. 14-103.05 40 ILCS 5/14-103.41 40 ILCS 5/14-152.1 40 ILCS 5/14-155.5 new 40 ILCS 5/20-121 from Ch. 108 1/2, par. 20-121 40 ILCS 5/20-123 from Ch. 108 1/2, par. 20-123 40 ILCS 5/20-124 from Ch. 108 1/2, par. 20-124 40 ILCS 5/20-125 from Ch. 108 1/2, par. 20-125
50	50	5 ILCS 375/3 from Ch. 127, par. 523
51	51	5 ILCS 375/10 from Ch. 127, par. 530
52	52	40 ILCS 5/1-160
53	53	40 ILCS 5/1-161
54	54	40 ILCS 5/14-103.05 from Ch. 108 1/2, par. 14-103.05
55	55	40 ILCS 5/14-103.41
56	56	40 ILCS 5/14-152.1
57	57	40 ILCS 5/14-155.5 new
58	58	40 ILCS 5/20-121 from Ch. 108 1/2, par. 20-121
59	59	40 ILCS 5/20-123 from Ch. 108 1/2, par. 20-123
60	60	40 ILCS 5/20-124 from Ch. 108 1/2, par. 20-124
61	61	40 ILCS 5/20-125 from Ch. 108 1/2, par. 20-125
62	62	Amends the Illinois Pension Code. Requires the State Employees' Retirement System of Illinois to prepare and implement a defined contribution plan by July 1, 2026 that aggregates State and employee contributions in individual participant accounts that are used for payouts after retirement. Provides that a Tier 1 or Tier 2 participant may irrevocably elect to participate in the defined contribution plan instead of the defined benefit plan and may also elect to terminate all participation in the defined benefit plan and to have a specified amount credited to his or her account under the defined contribution plan. Provides that a person who first becomes an employee after the effective date of the amendatory Act is not required to participate in the System as a condition of employment. Provides that an employee may elect not to participate in the System by notifying the System in writing in a manner specified by the System. Provides that any benefit increase that results from the amendatory Act is excluded from the definition of "new benefit increase". Makes conforming and other changes. Makes related changes in the State Employees Group Insurance Act of 1971. Effective immediately.
63	63	LRB103 37686 RPS 67813 b LRB103 37686 RPS 67813 b
64	64	LRB103 37686 RPS 67813 b
65	65	A BILL FOR
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71	71	5 ILCS 375/3 from Ch. 127, par. 523
72	72	5 ILCS 375/10 from Ch. 127, par. 530
73	73	40 ILCS 5/1-160
74	74	40 ILCS 5/1-161
75	75	40 ILCS 5/14-103.05 from Ch. 108 1/2, par. 14-103.05
76	76	40 ILCS 5/14-103.41
77	77	40 ILCS 5/14-152.1
78	78	40 ILCS 5/14-155.5 new
79	79	40 ILCS 5/20-121 from Ch. 108 1/2, par. 20-121
80	80	40 ILCS 5/20-123 from Ch. 108 1/2, par. 20-123
81	81	40 ILCS 5/20-124 from Ch. 108 1/2, par. 20-124
82	82	40 ILCS 5/20-125 from Ch. 108 1/2, par. 20-125
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101	101	1 receiving an annuity under that Article, has retired under the
102	102	2 defined contribution plan established under Section 14-155.5
103	103	3 of that Article; or an employee who meets the criteria for
104	104	4 retirement, but in lieu of receiving an annuity under that
105	105	5 Article has elected to receive an accelerated pension benefit
106	106	6 payment under Section 14-147.5 of that Article), or 15
107	107	7 (including an employee who has retired under the optional
108	108	8 retirement program established under Section 15-158.2 or who
109	109	9 meets the criteria for retirement but in lieu of receiving an
110	110	10 annuity under that Article has elected to receive an
111	111	11 accelerated pension benefit payment under Section 15-185.5 of
112	112	12 the Article), paragraph (2), (3), or (5) of Section 16-106
113	113	13 (including an employee who meets the criteria for retirement,
114	114	14 but in lieu of receiving an annuity under that Article has
115	115	15 elected to receive an accelerated pension benefit payment
116	116	16 under Section 16-190.5 of the Illinois Pension Code), or
117	117	17 Article 18 of the Illinois Pension Code; (2) any person who was
118	118	18 receiving group insurance coverage under this Act as of March
119	119	19 31, 1978 by reason of his status as an annuitant, even though
120	120	20 the annuity in relation to which such coverage was provided is
121	121	21 a proportional annuity based on less than the minimum period
122	122	22 of service required for a retirement annuity in the system
123	123	23 involved; (3) any person not otherwise covered by this Act who
124	124	24 has retired as a participating member under Article 2 of the
125	125	25 Illinois Pension Code but is ineligible for the retirement
126	126	26 annuity under Section 2-119 of the Illinois Pension Code; (4)
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137	137	1 the spouse of any person who is receiving a retirement annuity
138	138	2 under Article 18 of the Illinois Pension Code and who is
139	139	3 covered under a group health insurance program sponsored by a
140	140	4 governmental employer other than the State of Illinois and who
141	141	5 has irrevocably elected to waive his or her coverage under
142	142	6 this Act and to have his or her spouse considered as the
143	143	7 "annuitant" under this Act and not as a "dependent"; or (5) an
144	144	8 employee who retires, or has retired, from a qualified
145	145	9 position, as determined according to rules promulgated by the
146	146	10 Director, under a qualified local government, a qualified
147	147	11 rehabilitation facility, a qualified domestic violence shelter
148	148	12 or service, or a qualified child advocacy center. (For
149	149	13 definition of "retired employee", see (p) post).
150	150	14 (b-5) (Blank).
151	151	15 (b-6) (Blank).
152	152	16 (b-7) (Blank).
153	153	17 (c) "Carrier" means (1) an insurance company, a
154	154	18 corporation organized under the Limited Health Service
155	155	19 Organization Act or the Voluntary Health Services Plans Act, a
156	156	20 partnership, or other nongovernmental organization, which is
157	157	21 authorized to do group life or group health insurance business
158	158	22 in Illinois, or (2) the State of Illinois as a self-insurer.
159	159	23 (d) "Compensation" means salary or wages payable on a
160	160	24 regular payroll by the State Treasurer on a warrant of the
161	161	25 State Comptroller out of any State, trust or federal fund, or
162	162	26 by the Governor of the State through a disbursing officer of
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173	173	1 the State out of a trust or out of federal funds, or by any
174	174	2 Department out of State, trust, federal or other funds held by
175	175	3 the State Treasurer or the Department, to any person for
176	176	4 personal services currently performed, and ordinary or
177	177	5 accidental disability benefits under Articles 2, 14, or 15
178	178	6 (including ordinary or accidental disability benefits under
179	179	7 the optional retirement program established under Section
180	180	8 15-158.2), paragraph (2), (3), or (5) of Section 16-106, or
181	181	9 Article 18 of the Illinois Pension Code, for disability
182	182	10 incurred after January 1, 1966, or benefits payable under the
183	183	11 Workers' Compensation or Occupational Diseases Act or benefits
184	184	12 payable under a sick pay plan established in accordance with
185	185	13 Section 36 of the State Finance Act. "Compensation" also means
186	186	14 salary or wages paid to an employee of any qualified local
187	187	15 government, qualified rehabilitation facility, qualified
188	188	16 domestic violence shelter or service, or qualified child
189	189	17 advocacy center.
190	190	18 (e) "Commission" means the State Employees Group Insurance
191	191	19 Advisory Commission authorized by this Act. Commencing July 1,
192	192	20 1984, "Commission" as used in this Act means the Commission on
193	193	21 Government Forecasting and Accountability as established by
194	194	22 the Legislative Commission Reorganization Act of 1984.
195	195	23 (f) "Contributory", when referred to as contributory
196	196	24 coverage, shall mean optional coverages or benefits elected by
197	197	25 the member toward the cost of which such member makes
198	198	26 contribution, or which are funded in whole or in part through
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209	209	1 the acceptance of a reduction in earnings or the foregoing of
210	210	2 an increase in earnings by an employee, as distinguished from
211	211	3 noncontributory coverage or benefits which are paid entirely
212	212	4 by the State of Illinois without reduction of the member's
213	213	5 salary.
214	214	6 (g) "Department" means any department, institution, board,
215	215	7 commission, officer, court or any agency of the State
216	216	8 government receiving appropriations and having power to
217	217	9 certify payrolls to the Comptroller authorizing payments of
218	218	10 salary and wages against such appropriations as are made by
219	219	11 the General Assembly from any State fund, or against trust
220	220	12 funds held by the State Treasurer and includes boards of
221	221	13 trustees of the retirement systems created by Articles 2, 14,
222	222	14 15, 16, and 18 of the Illinois Pension Code. "Department" also
223	223	15 includes the Illinois Comprehensive Health Insurance Board,
224	224	16 the Board of Examiners established under the Illinois Public
225	225	17 Accounting Act, and the Illinois Finance Authority.
226	226	18 (h) "Dependent", when the term is used in the context of
227	227	19 the health and life plan, means a member's spouse and any child
228	228	20 (1) from birth to age 26 including an adopted child, a child
229	229	21 who lives with the member from the time of the placement for
230	230	22 adoption until entry of an order of adoption, a stepchild or
231	231	23 adjudicated child, or a child who lives with the member if such
232	232	24 member is a court appointed guardian of the child or (2) age 19
233	233	25 or over who has a mental or physical disability from a cause
234	234	26 originating prior to the age of 19 (age 26 if enrolled as an
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245	245	1 adult child dependent). For the health plan only, the term
246	246	2 "dependent" also includes (1) any person enrolled prior to the
247	247	3 effective date of this Section who is dependent upon the
248	248	4 member to the extent that the member may claim such person as a
249	249	5 dependent for income tax deduction purposes and (2) any person
250	250	6 who has received after June 30, 2000 an organ transplant and
251	251	7 who is financially dependent upon the member and eligible to
252	252	8 be claimed as a dependent for income tax purposes. A member
253	253	9 requesting to cover any dependent must provide documentation
254	254	10 as requested by the Department of Central Management Services
255	255	11 and file with the Department any and all forms required by the
256	256	12 Department.
257	257	13 (i) "Director" means the Director of the Illinois
258	258	14 Department of Central Management Services.
259	259	15 (j) "Eligibility period" means the period of time a member
260	260	16 has to elect enrollment in programs or to select benefits
261	261	17 without regard to age, sex or health.
262	262	18 (k) "Employee" means and includes each officer or employee
263	263	19 in the service of a department who (1) receives his
264	264	20 compensation for service rendered to the department on a
265	265	21 warrant issued pursuant to a payroll certified by a department
266	266	22 or on a warrant or check issued and drawn by a department upon
267	267	23 a trust, federal or other fund or on a warrant issued pursuant
268	268	24 to a payroll certified by an elected or duly appointed officer
269	269	25 of the State or who receives payment of the performance of
270	270	26 personal services on a warrant issued pursuant to a payroll
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281	281	1 certified by a Department and drawn by the Comptroller upon
282	282	2 the State Treasurer against appropriations made by the General
283	283	3 Assembly from any fund or against trust funds held by the State
284	284	4 Treasurer, and (2) is employed full-time or part-time in a
285	285	5 position normally requiring actual performance of duty during
286	286	6 not less than 1/2 of a normal work period, as established by
287	287	7 the Director in cooperation with each department, except that
288	288	8 persons elected by popular vote will be considered employees
289	289	9 during the entire term for which they are elected regardless
290	290	10 of hours devoted to the service of the State, and (3) except
291	291	11 that "employee" does not include any person who is not
292	292	12 eligible by reason of such person's employment to participate
293	293	13 in one of the State retirement systems under Articles 2, 14, 15
294	294	14 (either the regular Article 15 system or the optional
295	295	15 retirement program established under Section 15-158.2), or 18,
296	296	16 or under paragraph (2), (3), or (5) of Section 16-106, of the
297	297	17 Illinois Pension Code, but such term does include persons who
298	298	18 are employed during the 6-month qualifying period under
299	299	19 Article 14 of the Illinois Pension Code. Such term also
300	300	20 includes any person who (1) after January 1, 1966, is
301	301	21 receiving ordinary or accidental disability benefits under
302	302	22 Articles 2, 14, or 15 (including ordinary or accidental
303	303	23 disability benefits under the optional retirement program
304	304	24 established under Section 15-158.2), paragraph (2), (3), or
305	305	25 (5) of Section 16-106, or Article 18 of the Illinois Pension
306	306	26 Code, for disability incurred after January 1, 1966, (2)
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317	317	1 receives total permanent or total temporary disability under
318	318	2 the Workers' Compensation Act or Occupational Disease Act as a
319	319	3 result of injuries sustained or illness contracted in the
320	320	4 course of employment with the State of Illinois, or (3) is not
321	321	5 otherwise covered under this Act and has retired as a
322	322	6 participating member under Article 2 of the Illinois Pension
323	323	7 Code but is ineligible for the retirement annuity under
324	324	8 Section 2-119 of the Illinois Pension Code. However, a person
325	325	9 who satisfies the criteria of the foregoing definition of
326	326	10 "employee" except that such person is made ineligible to
327	327	11 participate in the State Universities Retirement System by
328	328	12 clause (4) of subsection (a) of Section 15-107 of the Illinois
329	329	13 Pension Code is also an "employee" for the purposes of this
330	330	14 Act. "Employee" also includes any person receiving or eligible
331	331	15 for benefits under a sick pay plan established in accordance
332	332	16 with Section 36 of the State Finance Act. "Employee" also
333	333	17 includes (i) each officer or employee in the service of a
334	334	18 qualified local government, including persons appointed as
335	335	19 trustees of sanitary districts regardless of hours devoted to
336	336	20 the service of the sanitary district, (ii) each employee in
337	337	21 the service of a qualified rehabilitation facility, (iii) each
338	338	22 full-time employee in the service of a qualified domestic
339	339	23 violence shelter or service, and (iv) each full-time employee
340	340	24 in the service of a qualified child advocacy center, as
341	341	25 determined according to rules promulgated by the Director.
342	342	26 (l) "Member" means an employee, annuitant, retired
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346	346
347	347
348	348	SB3073 - 8 - LRB103 37686 RPS 67813 b
349	349
350	350
351	351	SB3073- 9 -LRB103 37686 RPS 67813 b SB3073 - 9 - LRB103 37686 RPS 67813 b
352	352	SB3073 - 9 - LRB103 37686 RPS 67813 b
353	353	1 employee, or survivor. In the case of an annuitant or retired
354	354	2 employee who first becomes an annuitant or retired employee on
355	355	3 or after January 13, 2012 (the effective date of Public Act
356	356	4 97-668), the individual must meet the minimum vesting
357	357	5 requirements of the applicable retirement system in order to
358	358	6 be eligible for group insurance benefits under that system. In
359	359	7 the case of a survivor who is not entitled to occupational
360	360	8 death benefits pursuant to an applicable retirement system or
361	361	9 death benefits pursuant to the Illinois Workers' Compensation
362	362	10 Act, and who first becomes a survivor on or after January 13,
363	363	11 2012 (the effective date of Public Act 97-668), the deceased
364	364	12 employee, annuitant, or retired employee upon whom the annuity
365	365	13 is based must have been eligible to participate in the group
366	366	14 insurance system under the applicable retirement system in
367	367	15 order for the survivor to be eligible for group insurance
368	368	16 benefits under that system.
369	369	17 In the case of a survivor who is entitled to occupational
370	370	18 death benefits pursuant to the deceased employee's applicable
371	371	19 retirement system or death benefits pursuant to the Illinois
372	372	20 Workers' Compensation Act, and first becomes a survivor on or
373	373	21 after January 1, 2022, the survivor is eligible for group
374	374	22 health insurance benefits regardless of the deceased
375	375	23 employee's minimum vesting requirements under the applicable
376	376	24 retirement system, with a State contribution rate of 100%,
377	377	25 until an unmarried child dependent reaches the age of 18, or
378	378	26 the age of 22 if the dependent child is a full-time student, or
379	379
380	380
381	381
382	382
383	383
384	384	SB3073 - 9 - LRB103 37686 RPS 67813 b
385	385
386	386
387	387	SB3073- 10 -LRB103 37686 RPS 67813 b SB3073 - 10 - LRB103 37686 RPS 67813 b
388	388	SB3073 - 10 - LRB103 37686 RPS 67813 b
389	389	1 until the adult survivor becomes eligible for benefits under
390	390	2 the federal Medicare health insurance program (Title XVIII of
391	391	3 the Social Security Act, as added by Public Law 89-97). In the
392	392	4 case of a survivor currently receiving occupational death
393	393	5 benefits pursuant to the deceased employee's applicable
394	394	6 retirement system or has received death benefits pursuant to
395	395	7 the Illinois Workers' Compensation Act, who first became a
396	396	8 survivor prior to January 1, 2022, the survivor is eligible
397	397	9 for group health insurance benefits regardless of the deceased
398	398	10 employee's minimum vesting requirements under the applicable
399	399	11 retirement system, with a State contribution rate of 100%,
400	400	12 until an unmarried child dependent reaches the age of 18, or
401	401	13 the age of 22 if the dependent child is a full-time student, or
402	402	14 until the adult survivor becomes eligible for benefits under
403	403	15 the federal Medicare health insurance program (Title XVIII of
404	404	16 the Social Security Act, as added by Public Law 89-97). The
405	405	17 changes made by this amendatory Act of the 102nd General
406	406	18 Assembly with respect to survivors who first became survivors
407	407	19 prior to January 1, 2022 shall apply upon request of the
408	408	20 survivor on or after the effective date of this amendatory Act
409	409	21 of the 102nd General Assembly.
410	410	22 (m) "Optional coverages or benefits" means those coverages
411	411	23 or benefits available to the member on his or her voluntary
412	412	24 election, and at his or her own expense.
413	413	25 (n) "Program" means the group life insurance, health
414	414	26 benefits and other employee benefits designed and contracted
415	415
416	416
417	417
418	418
419	419
420	420	SB3073 - 10 - LRB103 37686 RPS 67813 b
421	421
422	422
423	423	SB3073- 11 -LRB103 37686 RPS 67813 b SB3073 - 11 - LRB103 37686 RPS 67813 b
424	424	SB3073 - 11 - LRB103 37686 RPS 67813 b
425	425	1 for by the Director under this Act.
426	426	2 (o) "Health plan" means a health benefits program offered
427	427	3 by the State of Illinois for persons eligible for the plan.
428	428	4 (p) "Retired employee" means any person who would be an
429	429	5 annuitant as that term is defined herein but for the fact that
430	430	6 such person retired prior to January 1, 1966. Such term also
431	431	7 includes any person formerly employed by the University of
432	432	8 Illinois in the Cooperative Extension Service who would be an
433	433	9 annuitant but for the fact that such person was made
434	434	10 ineligible to participate in the State Universities Retirement
435	435	11 System by clause (4) of subsection (a) of Section 15-107 of the
436	436	12 Illinois Pension Code.
437	437	13 (q) "Survivor" means a person receiving an annuity as a
438	438	14 survivor of an employee or of an annuitant. "Survivor" also
439	439	15 includes: (1) the surviving dependent of a person who
440	440	16 satisfies the definition of "employee" except that such person
441	441	17 is made ineligible to participate in the State Universities
442	442	18 Retirement System by clause (4) of subsection (a) of Section
443	443	19 15-107 of the Illinois Pension Code; (2) the surviving
444	444	20 dependent of any person formerly employed by the University of
445	445	21 Illinois in the Cooperative Extension Service who would be an
446	446	22 annuitant except for the fact that such person was made
447	447	23 ineligible to participate in the State Universities Retirement
448	448	24 System by clause (4) of subsection (a) of Section 15-107 of the
449	449	25 Illinois Pension Code; (3) the surviving dependent of a person
450	450	26 who was an annuitant under this Act by virtue of receiving an
451	451
452	452
453	453
454	454
455	455
456	456	SB3073 - 11 - LRB103 37686 RPS 67813 b
457	457
458	458
459	459	SB3073- 12 -LRB103 37686 RPS 67813 b SB3073 - 12 - LRB103 37686 RPS 67813 b
460	460	SB3073 - 12 - LRB103 37686 RPS 67813 b
461	461	1 alternative retirement cancellation payment under Section
462	462	2 14-108.5 of the Illinois Pension Code; and (4) a person who
463	463	3 would be receiving an annuity as a survivor of an annuitant
464	464	4 except that the annuitant elected on or after June 4, 2018 to
465	465	5 receive an accelerated pension benefit payment under Section
466	466	6 14-147.5, 15-185.5, or 16-190.5 of the Illinois Pension Code
467	467	7 in lieu of receiving an annuity.
468	468	8 (q-2) "SERS" means the State Employees' Retirement System
469	469	9 of Illinois, created under Article 14 of the Illinois Pension
470	470	10 Code.
471	471	11 (q-3) "SURS" means the State Universities Retirement
472	472	12 System, created under Article 15 of the Illinois Pension Code.
473	473	13 (q-4) "TRS" means the Teachers' Retirement System of the
474	474	14 State of Illinois, created under Article 16 of the Illinois
475	475	15 Pension Code.
476	476	16 (q-5) (Blank).
477	477	17 (q-6) (Blank).
478	478	18 (q-7) (Blank).
479	479	19 (r) "Medical services" means the services provided within
480	480	20 the scope of their licenses by practitioners in all categories
481	481	21 licensed under the Medical Practice Act of 1987.
482	482	22 (s) "Unit of local government" means any county,
483	483	23 municipality, township, school district (including a
484	484	24 combination of school districts under the Intergovernmental
485	485	25 Cooperation Act), special district or other unit, designated
486	486	26 as a unit of local government by law, which exercises limited
487	487
488	488
489	489
490	490
491	491
492	492	SB3073 - 12 - LRB103 37686 RPS 67813 b
493	493
494	494
495	495	SB3073- 13 -LRB103 37686 RPS 67813 b SB3073 - 13 - LRB103 37686 RPS 67813 b
496	496	SB3073 - 13 - LRB103 37686 RPS 67813 b
497	497	1 governmental powers or powers in respect to limited
498	498	2 governmental subjects, any not-for-profit association with a
499	499	3 membership that primarily includes townships and township
500	500	4 officials, that has duties that include provision of research
501	501	5 service, dissemination of information, and other acts for the
502	502	6 purpose of improving township government, and that is funded
503	503	7 wholly or partly in accordance with Section 85-15 of the
504	504	8 Township Code; any not-for-profit corporation or association,
505	505	9 with a membership consisting primarily of municipalities, that
506	506	10 operates its own utility system, and provides research,
507	507	11 training, dissemination of information, or other acts to
508	508	12 promote cooperation between and among municipalities that
509	509	13 provide utility services and for the advancement of the goals
510	510	14 and purposes of its membership; the Southern Illinois
511	511	15 Collegiate Common Market, which is a consortium of higher
512	512	16 education institutions in Southern Illinois; the Illinois
513	513	17 Association of Park Districts; and any hospital provider that
514	514	18 is owned by a county that has 100 or fewer hospital beds and
515	515	19 has not already joined the program. "Qualified local
516	516	20 government" means a unit of local government approved by the
517	517	21 Director and participating in a program created under
518	518	22 subsection (i) of Section 10 of this Act.
519	519	23 (t) "Qualified rehabilitation facility" means any
520	520	24 not-for-profit organization that is accredited by the
521	521	25 Commission on Accreditation of Rehabilitation Facilities or
522	522	26 certified by the Department of Human Services (as successor to
523	523
524	524
525	525
526	526
527	527
528	528	SB3073 - 13 - LRB103 37686 RPS 67813 b
529	529
530	530
531	531	SB3073- 14 -LRB103 37686 RPS 67813 b SB3073 - 14 - LRB103 37686 RPS 67813 b
532	532	SB3073 - 14 - LRB103 37686 RPS 67813 b
533	533	1 the Department of Mental Health and Developmental
534	534	2 Disabilities) to provide services to persons with disabilities
535	535	3 and which receives funds from the State of Illinois for
536	536	4 providing those services, approved by the Director and
537	537	5 participating in a program created under subsection (j) of
538	538	6 Section 10 of this Act.
539	539	7 (u) "Qualified domestic violence shelter or service" means
540	540	8 any Illinois domestic violence shelter or service and its
541	541	9 administrative offices funded by the Department of Human
542	542	10 Services (as successor to the Illinois Department of Public
543	543	11 Aid), approved by the Director and participating in a program
544	544	12 created under subsection (k) of Section 10.
545	545	13 (v) "TRS benefit recipient" means a person who:
546	546	14 (1) is not a "member" as defined in this Section; and
547	547	15 (2) is receiving a monthly benefit or retirement
548	548	16 annuity under Article 16 of the Illinois Pension Code or
549	549	17 would be receiving such monthly benefit or retirement
550	550	18 annuity except that the benefit recipient elected on or
551	551	19 after June 4, 2018 to receive an accelerated pension
552	552	20 benefit payment under Section 16-190.5 of the Illinois
553	553	21 Pension Code in lieu of receiving an annuity; and
554	554	22 (3) either (i) has at least 8 years of creditable
555	555	23 service under Article 16 of the Illinois Pension Code, or
556	556	24 (ii) was enrolled in the health insurance program offered
557	557	25 under that Article on January 1, 1996, or (iii) is the
558	558	26 survivor of a benefit recipient who had at least 8 years of
559	559
560	560
561	561
562	562
563	563
564	564	SB3073 - 14 - LRB103 37686 RPS 67813 b
565	565
566	566
567	567	SB3073- 15 -LRB103 37686 RPS 67813 b SB3073 - 15 - LRB103 37686 RPS 67813 b
568	568	SB3073 - 15 - LRB103 37686 RPS 67813 b
569	569	1 creditable service under Article 16 of the Illinois
570	570	2 Pension Code or was enrolled in the health insurance
571	571	3 program offered under that Article on June 21, 1995 (the
572	572	4 effective date of Public Act 89-25), or (iv) is a
573	573	5 recipient or survivor of a recipient of a disability
574	574	6 benefit under Article 16 of the Illinois Pension Code.
575	575	7 (w) "TRS dependent beneficiary" means a person who:
576	576	8 (1) is not a "member" or "dependent" as defined in
577	577	9 this Section; and
578	578	10 (2) is a TRS benefit recipient's: (A) spouse, (B)
579	579	11 dependent parent who is receiving at least half of his or
580	580	12 her support from the TRS benefit recipient, or (C)
581	581	13 natural, step, adjudicated, or adopted child who is (i)
582	582	14 under age 26, (ii) was, on January 1, 1996, participating
583	583	15 as a dependent beneficiary in the health insurance program
584	584	16 offered under Article 16 of the Illinois Pension Code, or
585	585	17 (iii) age 19 or over who has a mental or physical
586	586	18 disability from a cause originating prior to the age of 19
587	587	19 (age 26 if enrolled as an adult child).
588	588	20 "TRS dependent beneficiary" does not include, as indicated
589	589	21 under paragraph (2) of this subsection (w), a dependent of the
590	590	22 survivor of a TRS benefit recipient who first becomes a
591	591	23 dependent of a survivor of a TRS benefit recipient on or after
592	592	24 January 13, 2012 (the effective date of Public Act 97-668)
593	593	25 unless that dependent would have been eligible for coverage as
594	594	26 a dependent of the deceased TRS benefit recipient upon whom
595	595
596	596
597	597
598	598
599	599
600	600	SB3073 - 15 - LRB103 37686 RPS 67813 b
601	601
602	602
603	603	SB3073- 16 -LRB103 37686 RPS 67813 b SB3073 - 16 - LRB103 37686 RPS 67813 b
604	604	SB3073 - 16 - LRB103 37686 RPS 67813 b
605	605	1 the survivor benefit is based.
606	606	2 (x) "Military leave" refers to individuals in basic
607	607	3 training for reserves, special/advanced training, annual
608	608	4 training, emergency call up, activation by the President of
609	609	5 the United States, or any other training or duty in service to
610	610	6 the United States Armed Forces.
611	611	7 (y) (Blank).
612	612	8 (z) "Community college benefit recipient" means a person
613	613	9 who:
614	614	10 (1) is not a "member" as defined in this Section; and
615	615	11 (2) is receiving a monthly survivor's annuity or
616	616	12 retirement annuity under Article 15 of the Illinois
617	617	13 Pension Code or would be receiving such monthly survivor's
618	618	14 annuity or retirement annuity except that the benefit
619	619	15 recipient elected on or after June 4, 2018 to receive an
620	620	16 accelerated pension benefit payment under Section 15-185.5
621	621	17 of the Illinois Pension Code in lieu of receiving an
622	622	18 annuity; and
623	623	19 (3) either (i) was a full-time employee of a community
624	624	20 college district or an association of community college
625	625	21 boards created under the Public Community College Act
626	626	22 (other than an employee whose last employer under Article
627	627	23 15 of the Illinois Pension Code was a community college
628	628	24 district subject to Article VII of the Public Community
629	629	25 College Act) and was eligible to participate in a group
630	630	26 health benefit plan as an employee during the time of
631	631
632	632
633	633
634	634
635	635
636	636	SB3073 - 16 - LRB103 37686 RPS 67813 b
637	637
638	638
639	639	SB3073- 17 -LRB103 37686 RPS 67813 b SB3073 - 17 - LRB103 37686 RPS 67813 b
640	640	SB3073 - 17 - LRB103 37686 RPS 67813 b
641	641	1 employment with a community college district (other than a
642	642	2 community college district subject to Article VII of the
643	643	3 Public Community College Act) or an association of
644	644	4 community college boards, or (ii) is the survivor of a
645	645	5 person described in item (i).
646	646	6 (aa) "Community college dependent beneficiary" means a
647	647	7 person who:
648	648	8 (1) is not a "member" or "dependent" as defined in
649	649	9 this Section; and
650	650	10 (2) is a community college benefit recipient's: (A)
651	651	11 spouse, (B) dependent parent who is receiving at least
652	652	12 half of his or her support from the community college
653	653	13 benefit recipient, or (C) natural, step, adjudicated, or
654	654	14 adopted child who is (i) under age 26, or (ii) age 19 or
655	655	15 over and has a mental or physical disability from a cause
656	656	16 originating prior to the age of 19 (age 26 if enrolled as
657	657	17 an adult child).
658	658	18 "Community college dependent beneficiary" does not
659	659	19 include, as indicated under paragraph (2) of this subsection
660	660	20 (aa), a dependent of the survivor of a community college
661	661	21 benefit recipient who first becomes a dependent of a survivor
662	662	22 of a community college benefit recipient on or after January
663	663	23 13, 2012 (the effective date of Public Act 97-668) unless that
664	664	24 dependent would have been eligible for coverage as a dependent
665	665	25 of the deceased community college benefit recipient upon whom
666	666	26 the survivor annuity is based.
667	667
668	668
669	669
670	670
671	671
672	672	SB3073 - 17 - LRB103 37686 RPS 67813 b
673	673
674	674
675	675	SB3073- 18 -LRB103 37686 RPS 67813 b SB3073 - 18 - LRB103 37686 RPS 67813 b
676	676	SB3073 - 18 - LRB103 37686 RPS 67813 b
677	677	1 (bb) "Qualified child advocacy center" means any Illinois
678	678	2 child advocacy center and its administrative offices funded by
679	679	3 the Department of Children and Family Services, as defined by
680	680	4 the Children's Advocacy Center Act (55 ILCS 80/), approved by
681	681	5 the Director and participating in a program created under
682	682	6 subsection (n) of Section 10.
683	683	7 (cc) "Placement for adoption" means the assumption and
684	684	8 retention by a member of a legal obligation for total or
685	685	9 partial support of a child in anticipation of adoption of the
686	686	10 child. The child's placement with the member terminates upon
687	687	11 the termination of such legal obligation.
688	688	12 (Source: P.A. 101-242, eff. 8-9-19; 102-558, eff. 8-20-21;
689	689	13 102-714, eff. 4-29-22; 102-813, eff 5-13-22.)
690	690	14 (5 ILCS 375/10) (from Ch. 127, par. 530)
691	691	15 Sec. 10. Contributions by the State and members.
692	692	16 (a) The State shall pay the cost of basic non-contributory
693	693	17 group life insurance and, subject to member paid contributions
694	694	18 set by the Department or required by this Section and except as
695	695	19 provided in this Section, the basic program of group health
696	696	20 benefits on each eligible member, except a member, not
697	697	21 otherwise covered by this Act, who has retired as a
698	698	22 participating member under Article 2 of the Illinois Pension
699	699	23 Code but is ineligible for the retirement annuity under
700	700	24 Section 2-119 of the Illinois Pension Code, and part of each
701	701	25 eligible member's and retired member's premiums for health
702	702
703	703
704	704
705	705
706	706
707	707	SB3073 - 18 - LRB103 37686 RPS 67813 b
708	708
709	709
710	710	SB3073- 19 -LRB103 37686 RPS 67813 b SB3073 - 19 - LRB103 37686 RPS 67813 b
711	711	SB3073 - 19 - LRB103 37686 RPS 67813 b
712	712	1 insurance coverage for enrolled dependents as provided by
713	713	2 Section 9. The State shall pay the cost of the basic program of
714	714	3 group health benefits only after benefits are reduced by the
715	715	4 amount of benefits covered by Medicare for all members and
716	716	5 dependents who are eligible for benefits under Social Security
717	717	6 or the Railroad Retirement system or who had sufficient
718	718	7 Medicare-covered government employment, except that such
719	719	8 reduction in benefits shall apply only to those members and
720	720	9 dependents who (1) first become eligible for such Medicare
721	721	10 coverage on or after July 1, 1992; or (2) are
722	722	11 Medicare-eligible members or dependents of a local government
723	723	12 unit which began participation in the program on or after July
724	724	13 1, 1992; or (3) remain eligible for, but no longer receive
725	725	14 Medicare coverage which they had been receiving on or after
726	726	15 July 1, 1992. The Department may determine the aggregate level
727	727	16 of the State's contribution on the basis of actual cost of
728	728	17 medical services adjusted for age, sex or geographic or other
729	729	18 demographic characteristics which affect the costs of such
730	730	19 programs.
731	731	20 The cost of participation in the basic program of group
732	732	21 health benefits for the dependent or survivor of a living or
733	733	22 deceased retired employee who was formerly employed by the
734	734	23 University of Illinois in the Cooperative Extension Service
735	735	24 and would be an annuitant but for the fact that he or she was
736	736	25 made ineligible to participate in the State Universities
737	737	26 Retirement System by clause (4) of subsection (a) of Section
738	738
739	739
740	740
741	741
742	742
743	743	SB3073 - 19 - LRB103 37686 RPS 67813 b
744	744
745	745
746	746	SB3073- 20 -LRB103 37686 RPS 67813 b SB3073 - 20 - LRB103 37686 RPS 67813 b
747	747	SB3073 - 20 - LRB103 37686 RPS 67813 b
748	748	1 15-107 of the Illinois Pension Code shall not be greater than
749	749	2 the cost of participation that would otherwise apply to that
750	750	3 dependent or survivor if he or she were the dependent or
751	751	4 survivor of an annuitant under the State Universities
752	752	5 Retirement System.
753	753	6 (a-1) (Blank).
754	754	7 (a-2) (Blank).
755	755	8 (a-3) (Blank).
756	756	9 (a-4) (Blank).
757	757	10 (a-5) (Blank).
758	758	11 (a-6) (Blank).
759	759	12 (a-7) (Blank).
760	760	13 (a-8) Any annuitant, survivor, or retired employee may
761	761	14 waive or terminate coverage in the program of group health
762	762	15 benefits. Any such annuitant, survivor, or retired employee
763	763	16 who has waived or terminated coverage may enroll or re-enroll
764	764	17 in the program of group health benefits only during the annual
765	765	18 benefit choice period, as determined by the Director; except
766	766	19 that in the event of termination of coverage due to nonpayment
767	767	20 of premiums, the annuitant, survivor, or retired employee may
768	768	21 not re-enroll in the program.
769	769	22 (a-8.5) Beginning on the effective date of this amendatory
770	770	23 Act of the 97th General Assembly, the Director of Central
771	771	24 Management Services shall, on an annual basis, determine the
772	772	25 amount that the State shall contribute toward the basic
773	773	26 program of group health benefits on behalf of annuitants
774	774
775	775
776	776
777	777
778	778
779	779	SB3073 - 20 - LRB103 37686 RPS 67813 b
780	780
781	781
782	782	SB3073- 21 -LRB103 37686 RPS 67813 b SB3073 - 21 - LRB103 37686 RPS 67813 b
783	783	SB3073 - 21 - LRB103 37686 RPS 67813 b
784	784	1 (including individuals who (i) participated in the General
785	785	2 Assembly Retirement System, the State Employees' Retirement
786	786	3 System of Illinois, the State Universities Retirement System,
787	787	4 the Teachers' Retirement System of the State of Illinois, or
788	788	5 the Judges Retirement System of Illinois and (ii) qualify as
789	789	6 annuitants under subsection (b) of Section 3 of this Act),
790	790	7 survivors (including individuals who (i) receive an annuity as
791	791	8 a survivor of an individual who participated in the General
792	792	9 Assembly Retirement System, the State Employees' Retirement
793	793	10 System of Illinois, the State Universities Retirement System,
794	794	11 the Teachers' Retirement System of the State of Illinois, or
795	795	12 the Judges Retirement System of Illinois and (ii) qualify as
796	796	13 survivors under subsection (q) of Section 3 of this Act), and
797	797	14 retired employees (as defined in subsection (p) of Section 3
798	798	15 of this Act). The remainder of the cost of coverage for each
799	799	16 annuitant, survivor, or retired employee, as determined by the
800	800	17 Director of Central Management Services, shall be the
801	801	18 responsibility of that annuitant, survivor, or retired
802	802	19 employee.
803	803	20 Contributions required of annuitants, survivors, and
804	804	21 retired employees shall be the same for all retirement systems
805	805	22 and shall also be based on whether an individual has made an
806	806	23 election under Section 15-135.1 of the Illinois Pension Code.
807	807	24 Contributions may be based on annuitants', survivors', or
808	808	25 retired employees' Medicare eligibility, but may not be based
809	809	26 on Social Security eligibility.
810	810
811	811
812	812
813	813
814	814
815	815	SB3073 - 21 - LRB103 37686 RPS 67813 b
816	816
817	817
818	818	SB3073- 22 -LRB103 37686 RPS 67813 b SB3073 - 22 - LRB103 37686 RPS 67813 b
819	819	SB3073 - 22 - LRB103 37686 RPS 67813 b
820	820	1 (a-9) No later than May 1 of each calendar year, the
821	821	2 Director of Central Management Services shall certify in
822	822	3 writing to the Executive Secretary of the State Employees'
823	823	4 Retirement System of Illinois the amounts of the Medicare
824	824	5 supplement health care premiums and the amounts of the health
825	825	6 care premiums for all other retirees who are not Medicare
826	826	7 eligible.
827	827	8 A separate calculation of the premiums based upon the
828	828	9 actual cost of each health care plan shall be so certified.
829	829	10 The Director of Central Management Services shall provide
830	830	11 to the Executive Secretary of the State Employees' Retirement
831	831	12 System of Illinois such information, statistics, and other
832	832	13 data as he or she may require to review the premium amounts
833	833	14 certified by the Director of Central Management Services.
834	834	15 The Department of Central Management Services, or any
835	835	16 successor agency designated to procure healthcare contracts
836	836	17 pursuant to this Act, is authorized to establish funds,
837	837	18 separate accounts provided by any bank or banks as defined by
838	838	19 the Illinois Banking Act, or separate accounts provided by any
839	839	20 savings and loan association or associations as defined by the
840	840	21 Illinois Savings and Loan Act of 1985 to be held by the
841	841	22 Director, outside the State treasury, for the purpose of
842	842	23 receiving the transfer of moneys from the Local Government
843	843	24 Health Insurance Reserve Fund. The Department may promulgate
844	844	25 rules further defining the methodology for the transfers. Any
845	845	26 interest earned by moneys in the funds or accounts shall inure
846	846
847	847
848	848
849	849
850	850
851	851	SB3073 - 22 - LRB103 37686 RPS 67813 b
852	852
853	853
854	854	SB3073- 23 -LRB103 37686 RPS 67813 b SB3073 - 23 - LRB103 37686 RPS 67813 b
855	855	SB3073 - 23 - LRB103 37686 RPS 67813 b
856	856	1 to the Local Government Health Insurance Reserve Fund. The
857	857	2 transferred moneys, and interest accrued thereon, shall be
858	858	3 used exclusively for transfers to administrative service
859	859	4 organizations or their financial institutions for payments of
860	860	5 claims to claimants and providers under the self-insurance
861	861	6 health plan. The transferred moneys, and interest accrued
862	862	7 thereon, shall not be used for any other purpose including,
863	863	8 but not limited to, reimbursement of administration fees due
864	864	9 the administrative service organization pursuant to its
865	865	10 contract or contracts with the Department.
866	866	11 (a-10) To the extent that participation, benefits, or
867	867	12 premiums under this Act are based on a person's service credit
868	868	13 under an Article of the Illinois Pension Code, service credit
869	869	14 terminated in exchange for an accelerated pension benefit
870	870	15 payment under Section 14-147.5, 15-185.5, or 16-190.5 of that
871	871	16 Code shall be included in determining a person's service
872	872	17 credit for the purposes of this Act.
873	873	18 (a-15) For purposes of determining State contributions
874	874	19 under this Section, service established under a defined
875	875	20 contribution plan under Section 14-155.5 of the Illinois
876	876	21 Pension Code shall be included in determining an employee's
877	877	22 creditable service. Any credit terminated as part of a
878	878	23 transfer of contributions to a defined contribution plan under
879	879	24 Section 14-155.5 of the Illinois Pension Code shall also be
880	880	25 included in determining an employee's creditable service.
881	881	26 (b) State employees who become eligible for this program
882	882
883	883
884	884
885	885
886	886
887	887	SB3073 - 23 - LRB103 37686 RPS 67813 b
888	888
889	889
890	890	SB3073- 24 -LRB103 37686 RPS 67813 b SB3073 - 24 - LRB103 37686 RPS 67813 b
891	891	SB3073 - 24 - LRB103 37686 RPS 67813 b
892	892	1 on or after January 1, 1980 in positions normally requiring
893	893	2 actual performance of duty not less than 1/2 of a normal work
894	894	3 period but not equal to that of a normal work period, shall be
895	895	4 given the option of participating in the available program. If
896	896	5 the employee elects coverage, the State shall contribute on
897	897	6 behalf of such employee to the cost of the employee's benefit
898	898	7 and any applicable dependent supplement, that sum which bears
899	899	8 the same percentage as that percentage of time the employee
900	900	9 regularly works when compared to normal work period.
901	901	10 (c) The basic non-contributory coverage from the basic
902	902	11 program of group health benefits shall be continued for each
903	903	12 employee not in pay status or on active service by reason of
904	904	13 (1) leave of absence due to illness or injury, (2) authorized
905	905	14 educational leave of absence or sabbatical leave, or (3)
906	906	15 military leave. This coverage shall continue until expiration
907	907	16 of authorized leave and return to active service, but not to
908	908	17 exceed 24 months for leaves under item (1) or (2). This
909	909	18 24-month limitation and the requirement of returning to active
910	910	19 service shall not apply to persons receiving ordinary or
911	911	20 accidental disability benefits or retirement benefits through
912	912	21 the appropriate State retirement system or benefits under the
913	913	22 Workers' Compensation or Occupational Disease Act.
914	914	23 (d) The basic group life insurance coverage shall
915	915	24 continue, with full State contribution, where such person is
916	916	25 (1) absent from active service by reason of disability arising
917	917	26 from any cause other than self-inflicted, (2) on authorized
918	918
919	919
920	920
921	921
922	922
923	923	SB3073 - 24 - LRB103 37686 RPS 67813 b
924	924
925	925
926	926	SB3073- 25 -LRB103 37686 RPS 67813 b SB3073 - 25 - LRB103 37686 RPS 67813 b
927	927	SB3073 - 25 - LRB103 37686 RPS 67813 b
928	928	1 educational leave of absence or sabbatical leave, or (3) on
929	929	2 military leave.
930	930	3 (e) Where the person is in non-pay status for a period in
931	931	4 excess of 30 days or on leave of absence, other than by reason
932	932	5 of disability, educational or sabbatical leave, or military
933	933	6 leave, such person may continue coverage only by making
934	934	7 personal payment equal to the amount normally contributed by
935	935	8 the State on such person's behalf. Such payments and coverage
936	936	9 may be continued: (1) until such time as the person returns to
937	937	10 a status eligible for coverage at State expense, but not to
938	938	11 exceed 24 months or (2) until such person's employment or
939	939	12 annuitant status with the State is terminated (exclusive of
940	940	13 any additional service imposed pursuant to law).
941	941	14 (f) The Department shall establish by rule the extent to
942	942	15 which other employee benefits will continue for persons in
943	943	16 non-pay status or who are not in active service.
944	944	17 (g) The State shall not pay the cost of the basic
945	945	18 non-contributory group life insurance, program of health
946	946	19 benefits and other employee benefits for members who are
947	947	20 survivors as defined by paragraphs (1) and (2) of subsection
948	948	21 (q) of Section 3 of this Act. The costs of benefits for these
949	949	22 survivors shall be paid by the survivors or by the University
950	950	23 of Illinois Cooperative Extension Service, or any combination
951	951	24 thereof. However, the State shall pay the amount of the
952	952	25 reduction in the cost of participation, if any, resulting from
953	953	26 the amendment to subsection (a) made by this amendatory Act of
954	954
955	955
956	956
957	957
958	958
959	959	SB3073 - 25 - LRB103 37686 RPS 67813 b
960	960
961	961
962	962	SB3073- 26 -LRB103 37686 RPS 67813 b SB3073 - 26 - LRB103 37686 RPS 67813 b
963	963	SB3073 - 26 - LRB103 37686 RPS 67813 b
964	964	1 the 91st General Assembly.
965	965	2 (h) Those persons occupying positions with any department
966	966	3 as a result of emergency appointments pursuant to Section 8b.8
967	967	4 of the Personnel Code who are not considered employees under
968	968	5 this Act shall be given the option of participating in the
969	969	6 programs of group life insurance, health benefits and other
970	970	7 employee benefits. Such persons electing coverage may
971	971	8 participate only by making payment equal to the amount
972	972	9 normally contributed by the State for similarly situated
973	973	10 employees. Such amounts shall be determined by the Director.
974	974	11 Such payments and coverage may be continued until such time as
975	975	12 the person becomes an employee pursuant to this Act or such
976	976	13 person's appointment is terminated.
977	977	14 (i) Any unit of local government within the State of
978	978	15 Illinois may apply to the Director to have its employees,
979	979	16 annuitants, and their dependents provided group health
980	980	17 coverage under this Act on a non-insured basis. To
981	981	18 participate, a unit of local government must agree to enroll
982	982	19 all of its employees, who may select coverage under any group
983	983	20 health benefits plan made available by the Department under
984	984	21 the health benefits program established under this Section or
985	985	22 a health maintenance organization that has contracted with the
986	986	23 State to be available as a health care provider for employees
987	987	24 as defined in this Act. A unit of local government must remit
988	988	25 the entire cost of providing coverage under the health
989	989	26 benefits program established under this Section or, for
990	990
991	991
992	992
993	993
994	994
995	995	SB3073 - 26 - LRB103 37686 RPS 67813 b
996	996
997	997
998	998	SB3073- 27 -LRB103 37686 RPS 67813 b SB3073 - 27 - LRB103 37686 RPS 67813 b
999	999	SB3073 - 27 - LRB103 37686 RPS 67813 b
1000	1000	1 coverage under a health maintenance organization, an amount
1001	1001	2 determined by the Director based on an analysis of the sex,
1002	1002	3 age, geographic location, or other relevant demographic
1003	1003	4 variables for its employees, except that the unit of local
1004	1004	5 government shall not be required to enroll those of its
1005	1005	6 employees who are covered spouses or dependents under the
1006	1006	7 State group health benefits plan or another group policy or
1007	1007	8 plan providing health benefits as long as (1) an appropriate
1008	1008	9 official from the unit of local government attests that each
1009	1009	10 employee not enrolled is a covered spouse or dependent under
1010	1010	11 this plan or another group policy or plan, and (2) at least 50%
1011	1011	12 of the employees are enrolled and the unit of local government
1012	1012	13 remits the entire cost of providing coverage to those
1013	1013	14 employees, except that a participating school district must
1014	1014	15 have enrolled at least 50% of its full-time employees who have
1015	1015	16 not waived coverage under the district's group health plan by
1016	1016	17 participating in a component of the district's cafeteria plan.
1017	1017	18 A participating school district is not required to enroll a
1018	1018	19 full-time employee who has waived coverage under the
1019	1019	20 district's health plan, provided that an appropriate official
1020	1020	21 from the participating school district attests that the
1021	1021	22 full-time employee has waived coverage by participating in a
1022	1022	23 component of the district's cafeteria plan. For the purposes
1023	1023	24 of this subsection, "participating school district" includes a
1024	1024	25 unit of local government whose primary purpose is education as
1025	1025	26 defined by the Department's rules.
1026	1026
1027	1027
1028	1028
1029	1029
1030	1030
1031	1031	SB3073 - 27 - LRB103 37686 RPS 67813 b
1032	1032
1033	1033
1034	1034	SB3073- 28 -LRB103 37686 RPS 67813 b SB3073 - 28 - LRB103 37686 RPS 67813 b
1035	1035	SB3073 - 28 - LRB103 37686 RPS 67813 b
1036	1036	1 Employees of a participating unit of local government who
1037	1037	2 are not enrolled due to coverage under another group health
1038	1038	3 policy or plan may enroll in the event of a qualifying change
1039	1039	4 in status, special enrollment, special circumstance as defined
1040	1040	5 by the Director, or during the annual Benefit Choice Period. A
1041	1041	6 participating unit of local government may also elect to cover
1042	1042	7 its annuitants. Dependent coverage shall be offered on an
1043	1043	8 optional basis, with the costs paid by the unit of local
1044	1044	9 government, its employees, or some combination of the two as
1045	1045	10 determined by the unit of local government. The unit of local
1046	1046	11 government shall be responsible for timely collection and
1047	1047	12 transmission of dependent premiums.
1048	1048	13 The Director shall annually determine monthly rates of
1049	1049	14 payment, subject to the following constraints:
1050	1050	15 (1) In the first year of coverage, the rates shall be
1051	1051	16 equal to the amount normally charged to State employees
1052	1052	17 for elected optional coverages or for enrolled dependents
1053	1053	18 coverages or other contributory coverages, or contributed
1054	1054	19 by the State for basic insurance coverages on behalf of
1055	1055	20 its employees, adjusted for differences between State
1056	1056	21 employees and employees of the local government in age,
1057	1057	22 sex, geographic location or other relevant demographic
1058	1058	23 variables, plus an amount sufficient to pay for the
1059	1059	24 additional administrative costs of providing coverage to
1060	1060	25 employees of the unit of local government and their
1061	1061	26 dependents.
1062	1062
1063	1063
1064	1064
1065	1065
1066	1066
1067	1067	SB3073 - 28 - LRB103 37686 RPS 67813 b
1068	1068
1069	1069
1070	1070	SB3073- 29 -LRB103 37686 RPS 67813 b SB3073 - 29 - LRB103 37686 RPS 67813 b
1071	1071	SB3073 - 29 - LRB103 37686 RPS 67813 b
1072	1072	1 (2) In subsequent years, a further adjustment shall be
1073	1073	2 made to reflect the actual prior years' claims experience
1074	1074	3 of the employees of the unit of local government.
1075	1075	4 In the case of coverage of local government employees
1076	1076	5 under a health maintenance organization, the Director shall
1077	1077	6 annually determine for each participating unit of local
1078	1078	7 government the maximum monthly amount the unit may contribute
1079	1079	8 toward that coverage, based on an analysis of (i) the age, sex,
1080	1080	9 geographic location, and other relevant demographic variables
1081	1081	10 of the unit's employees and (ii) the cost to cover those
1082	1082	11 employees under the State group health benefits plan. The
1083	1083	12 Director may similarly determine the maximum monthly amount
1084	1084	13 each unit of local government may contribute toward coverage
1085	1085	14 of its employees' dependents under a health maintenance
1086	1086	15 organization.
1087	1087	16 Monthly payments by the unit of local government or its
1088	1088	17 employees for group health benefits plan or health maintenance
1089	1089	18 organization coverage shall be deposited in the Local
1090	1090	19 Government Health Insurance Reserve Fund.
1091	1091	20 The Local Government Health Insurance Reserve Fund is
1092	1092	21 hereby created as a nonappropriated trust fund to be held
1093	1093	22 outside the State Treasury, with the State Treasurer as
1094	1094	23 custodian. The Local Government Health Insurance Reserve Fund
1095	1095	24 shall be a continuing fund not subject to fiscal year
1096	1096	25 limitations. The Local Government Health Insurance Reserve
1097	1097	26 Fund is not subject to administrative charges or charge-backs,
1098	1098
1099	1099
1100	1100
1101	1101
1102	1102
1103	1103	SB3073 - 29 - LRB103 37686 RPS 67813 b
1104	1104
1105	1105
1106	1106	SB3073- 30 -LRB103 37686 RPS 67813 b SB3073 - 30 - LRB103 37686 RPS 67813 b
1107	1107	SB3073 - 30 - LRB103 37686 RPS 67813 b
1108	1108	1 including but not limited to those authorized under Section 8h
1109	1109	2 of the State Finance Act. All revenues arising from the
1110	1110	3 administration of the health benefits program established
1111	1111	4 under this Section shall be deposited into the Local
1112	1112	5 Government Health Insurance Reserve Fund. Any interest earned
1113	1113	6 on moneys in the Local Government Health Insurance Reserve
1114	1114	7 Fund shall be deposited into the Fund. All expenditures from
1115	1115	8 this Fund shall be used for payments for health care benefits
1116	1116	9 for local government and rehabilitation facility employees,
1117	1117	10 annuitants, and dependents, and to reimburse the Department or
1118	1118	11 its administrative service organization for all expenses
1119	1119	12 incurred in the administration of benefits. No other State
1120	1120	13 funds may be used for these purposes.
1121	1121	14 A local government employer's participation or desire to
1122	1122	15 participate in a program created under this subsection shall
1123	1123	16 not limit that employer's duty to bargain with the
1124	1124	17 representative of any collective bargaining unit of its
1125	1125	18 employees.
1126	1126	19 (j) Any rehabilitation facility within the State of
1127	1127	20 Illinois may apply to the Director to have its employees,
1128	1128	21 annuitants, and their eligible dependents provided group
1129	1129	22 health coverage under this Act on a non-insured basis. To
1130	1130	23 participate, a rehabilitation facility must agree to enroll
1131	1131	24 all of its employees and remit the entire cost of providing
1132	1132	25 such coverage for its employees, except that the
1133	1133	26 rehabilitation facility shall not be required to enroll those
1134	1134
1135	1135
1136	1136
1137	1137
1138	1138
1139	1139	SB3073 - 30 - LRB103 37686 RPS 67813 b
1140	1140
1141	1141
1142	1142	SB3073- 31 -LRB103 37686 RPS 67813 b SB3073 - 31 - LRB103 37686 RPS 67813 b
1143	1143	SB3073 - 31 - LRB103 37686 RPS 67813 b
1144	1144	1 of its employees who are covered spouses or dependents under
1145	1145	2 this plan or another group policy or plan providing health
1146	1146	3 benefits as long as (1) an appropriate official from the
1147	1147	4 rehabilitation facility attests that each employee not
1148	1148	5 enrolled is a covered spouse or dependent under this plan or
1149	1149	6 another group policy or plan, and (2) at least 50% of the
1150	1150	7 employees are enrolled and the rehabilitation facility remits
1151	1151	8 the entire cost of providing coverage to those employees.
1152	1152	9 Employees of a participating rehabilitation facility who are
1153	1153	10 not enrolled due to coverage under another group health policy
1154	1154	11 or plan may enroll in the event of a qualifying change in
1155	1155	12 status, special enrollment, special circumstance as defined by
1156	1156	13 the Director, or during the annual Benefit Choice Period. A
1157	1157	14 participating rehabilitation facility may also elect to cover
1158	1158	15 its annuitants. Dependent coverage shall be offered on an
1159	1159	16 optional basis, with the costs paid by the rehabilitation
1160	1160	17 facility, its employees, or some combination of the 2 as
1161	1161	18 determined by the rehabilitation facility. The rehabilitation
1162	1162	19 facility shall be responsible for timely collection and
1163	1163	20 transmission of dependent premiums.
1164	1164	21 The Director shall annually determine quarterly rates of
1165	1165	22 payment, subject to the following constraints:
1166	1166	23 (1) In the first year of coverage, the rates shall be
1167	1167	24 equal to the amount normally charged to State employees
1168	1168	25 for elected optional coverages or for enrolled dependents
1169	1169	26 coverages or other contributory coverages on behalf of its
1170	1170
1171	1171
1172	1172
1173	1173
1174	1174
1175	1175	SB3073 - 31 - LRB103 37686 RPS 67813 b
1176	1176
1177	1177
1178	1178	SB3073- 32 -LRB103 37686 RPS 67813 b SB3073 - 32 - LRB103 37686 RPS 67813 b
1179	1179	SB3073 - 32 - LRB103 37686 RPS 67813 b
1180	1180	1 employees, adjusted for differences between State
1181	1181	2 employees and employees of the rehabilitation facility in
1182	1182	3 age, sex, geographic location or other relevant
1183	1183	4 demographic variables, plus an amount sufficient to pay
1184	1184	5 for the additional administrative costs of providing
1185	1185	6 coverage to employees of the rehabilitation facility and
1186	1186	7 their dependents.
1187	1187	8 (2) In subsequent years, a further adjustment shall be
1188	1188	9 made to reflect the actual prior years' claims experience
1189	1189	10 of the employees of the rehabilitation facility.
1190	1190	11 Monthly payments by the rehabilitation facility or its
1191	1191	12 employees for group health benefits shall be deposited in the
1192	1192	13 Local Government Health Insurance Reserve Fund.
1193	1193	14 (k) Any domestic violence shelter or service within the
1194	1194	15 State of Illinois may apply to the Director to have its
1195	1195	16 employees, annuitants, and their dependents provided group
1196	1196	17 health coverage under this Act on a non-insured basis. To
1197	1197	18 participate, a domestic violence shelter or service must agree
1198	1198	19 to enroll all of its employees and pay the entire cost of
1199	1199	20 providing such coverage for its employees. The domestic
1200	1200	21 violence shelter shall not be required to enroll those of its
1201	1201	22 employees who are covered spouses or dependents under this
1202	1202	23 plan or another group policy or plan providing health benefits
1203	1203	24 as long as (1) an appropriate official from the domestic
1204	1204	25 violence shelter attests that each employee not enrolled is a
1205	1205	26 covered spouse or dependent under this plan or another group
1206	1206
1207	1207
1208	1208
1209	1209
1210	1210
1211	1211	SB3073 - 32 - LRB103 37686 RPS 67813 b
1212	1212
1213	1213
1214	1214	SB3073- 33 -LRB103 37686 RPS 67813 b SB3073 - 33 - LRB103 37686 RPS 67813 b
1215	1215	SB3073 - 33 - LRB103 37686 RPS 67813 b
1216	1216	1 policy or plan and (2) at least 50% of the employees are
1217	1217	2 enrolled and the domestic violence shelter remits the entire
1218	1218	3 cost of providing coverage to those employees. Employees of a
1219	1219	4 participating domestic violence shelter who are not enrolled
1220	1220	5 due to coverage under another group health policy or plan may
1221	1221	6 enroll in the event of a qualifying change in status, special
1222	1222	7 enrollment, or special circumstance as defined by the Director
1223	1223	8 or during the annual Benefit Choice Period. A participating
1224	1224	9 domestic violence shelter may also elect to cover its
1225	1225	10 annuitants. Dependent coverage shall be offered on an optional
1226	1226	11 basis, with employees, or some combination of the 2 as
1227	1227	12 determined by the domestic violence shelter or service. The
1228	1228	13 domestic violence shelter or service shall be responsible for
1229	1229	14 timely collection and transmission of dependent premiums.
1230	1230	15 The Director shall annually determine rates of payment,
1231	1231	16 subject to the following constraints:
1232	1232	17 (1) In the first year of coverage, the rates shall be
1233	1233	18 equal to the amount normally charged to State employees
1234	1234	19 for elected optional coverages or for enrolled dependents
1235	1235	20 coverages or other contributory coverages on behalf of its
1236	1236	21 employees, adjusted for differences between State
1237	1237	22 employees and employees of the domestic violence shelter
1238	1238	23 or service in age, sex, geographic location or other
1239	1239	24 relevant demographic variables, plus an amount sufficient
1240	1240	25 to pay for the additional administrative costs of
1241	1241	26 providing coverage to employees of the domestic violence
1242	1242
1243	1243
1244	1244
1245	1245
1246	1246
1247	1247	SB3073 - 33 - LRB103 37686 RPS 67813 b
1248	1248
1249	1249
1250	1250	SB3073- 34 -LRB103 37686 RPS 67813 b SB3073 - 34 - LRB103 37686 RPS 67813 b
1251	1251	SB3073 - 34 - LRB103 37686 RPS 67813 b
1252	1252	1 shelter or service and their dependents.
1253	1253	2 (2) In subsequent years, a further adjustment shall be
1254	1254	3 made to reflect the actual prior years' claims experience
1255	1255	4 of the employees of the domestic violence shelter or
1256	1256	5 service.
1257	1257	6 Monthly payments by the domestic violence shelter or
1258	1258	7 service or its employees for group health insurance shall be
1259	1259	8 deposited in the Local Government Health Insurance Reserve
1260	1260	9 Fund.
1261	1261	10 (l) A public community college or entity organized
1262	1262	11 pursuant to the Public Community College Act may apply to the
1263	1263	12 Director initially to have only annuitants not covered prior
1264	1264	13 to July 1, 1992 by the district's health plan provided health
1265	1265	14 coverage under this Act on a non-insured basis. The community
1266	1266	15 college must execute a 2-year contract to participate in the
1267	1267	16 Local Government Health Plan. Any annuitant may enroll in the
1268	1268	17 event of a qualifying change in status, special enrollment,
1269	1269	18 special circumstance as defined by the Director, or during the
1270	1270	19 annual Benefit Choice Period.
1271	1271	20 The Director shall annually determine monthly rates of
1272	1272	21 payment subject to the following constraints: for those
1273	1273	22 community colleges with annuitants only enrolled, first year
1274	1274	23 rates shall be equal to the average cost to cover claims for a
1275	1275	24 State member adjusted for demographics, Medicare
1276	1276	25 participation, and other factors; and in the second year, a
1277	1277	26 further adjustment of rates shall be made to reflect the
1278	1278
1279	1279
1280	1280
1281	1281
1282	1282
1283	1283	SB3073 - 34 - LRB103 37686 RPS 67813 b
1284	1284
1285	1285
1286	1286	SB3073- 35 -LRB103 37686 RPS 67813 b SB3073 - 35 - LRB103 37686 RPS 67813 b
1287	1287	SB3073 - 35 - LRB103 37686 RPS 67813 b
1288	1288	1 actual first year's claims experience of the covered
1289	1289	2 annuitants.
1290	1290	3 (l-5) The provisions of subsection (l) become inoperative
1291	1291	4 on July 1, 1999.
1292	1292	5 (m) The Director shall adopt any rules deemed necessary
1293	1293	6 for implementation of this amendatory Act of 1989 (Public Act
1294	1294	7 86-978).
1295	1295	8 (n) Any child advocacy center within the State of Illinois
1296	1296	9 may apply to the Director to have its employees, annuitants,
1297	1297	10 and their dependents provided group health coverage under this
1298	1298	11 Act on a non-insured basis. To participate, a child advocacy
1299	1299	12 center must agree to enroll all of its employees and pay the
1300	1300	13 entire cost of providing coverage for its employees. The child
1301	1301	14 advocacy center shall not be required to enroll those of its
1302	1302	15 employees who are covered spouses or dependents under this
1303	1303	16 plan or another group policy or plan providing health benefits
1304	1304	17 as long as (1) an appropriate official from the child advocacy
1305	1305	18 center attests that each employee not enrolled is a covered
1306	1306	19 spouse or dependent under this plan or another group policy or
1307	1307	20 plan and (2) at least 50% of the employees are enrolled and the
1308	1308	21 child advocacy center remits the entire cost of providing
1309	1309	22 coverage to those employees. Employees of a participating
1310	1310	23 child advocacy center who are not enrolled due to coverage
1311	1311	24 under another group health policy or plan may enroll in the
1312	1312	25 event of a qualifying change in status, special enrollment, or
1313	1313	26 special circumstance as defined by the Director or during the
1314	1314
1315	1315
1316	1316
1317	1317
1318	1318
1319	1319	SB3073 - 35 - LRB103 37686 RPS 67813 b
1320	1320
1321	1321
1322	1322	SB3073- 36 -LRB103 37686 RPS 67813 b SB3073 - 36 - LRB103 37686 RPS 67813 b
1323	1323	SB3073 - 36 - LRB103 37686 RPS 67813 b
1324	1324	1 annual Benefit Choice Period. A participating child advocacy
1325	1325	2 center may also elect to cover its annuitants. Dependent
1326	1326	3 coverage shall be offered on an optional basis, with the costs
1327	1327	4 paid by the child advocacy center, its employees, or some
1328	1328	5 combination of the 2 as determined by the child advocacy
1329	1329	6 center. The child advocacy center shall be responsible for
1330	1330	7 timely collection and transmission of dependent premiums.
1331	1331	8 The Director shall annually determine rates of payment,
1332	1332	9 subject to the following constraints:
1333	1333	10 (1) In the first year of coverage, the rates shall be
1334	1334	11 equal to the amount normally charged to State employees
1335	1335	12 for elected optional coverages or for enrolled dependents
1336	1336	13 coverages or other contributory coverages on behalf of its
1337	1337	14 employees, adjusted for differences between State
1338	1338	15 employees and employees of the child advocacy center in
1339	1339	16 age, sex, geographic location, or other relevant
1340	1340	17 demographic variables, plus an amount sufficient to pay
1341	1341	18 for the additional administrative costs of providing
1342	1342	19 coverage to employees of the child advocacy center and
1343	1343	20 their dependents.
1344	1344	21 (2) In subsequent years, a further adjustment shall be
1345	1345	22 made to reflect the actual prior years' claims experience
1346	1346	23 of the employees of the child advocacy center.
1347	1347	24 Monthly payments by the child advocacy center or its
1348	1348	25 employees for group health insurance shall be deposited into
1349	1349	26 the Local Government Health Insurance Reserve Fund.
1350	1350
1351	1351
1352	1352
1353	1353
1354	1354
1355	1355	SB3073 - 36 - LRB103 37686 RPS 67813 b
1356	1356
1357	1357
1358	1358	SB3073- 37 -LRB103 37686 RPS 67813 b SB3073 - 37 - LRB103 37686 RPS 67813 b
1359	1359	SB3073 - 37 - LRB103 37686 RPS 67813 b
1360	1360	1 (Source: P.A. 102-19, eff. 7-1-21.)
1361	1361	2 Section 10. The Illinois Pension Code is amended by
1362	1362	3 changing Sections 1-160, 1-161, 14-103.05, 14-103.41,
1363	1363	4 14-152.1, 20-121, 20-123, 20-124, and 20-125 and by adding
1364	1364	5 Section 14-155.5 as follows:
1365	1365	6 (40 ILCS 5/1-160)
1366	1366	7 (Text of Section from P.A. 102-719)
1367	1367	8 Sec. 1-160. Provisions applicable to new hires.
1368	1368	9 (a) The provisions of this Section apply to a person who,
1369	1369	10 on or after January 1, 2011, first becomes a member or a
1370	1370	11 participant under any reciprocal retirement system or pension
1371	1371	12 fund established under this Code, other than a retirement
1372	1372	13 system or pension fund established under Article 2, 3, 4, 5, 6,
1373	1373	14 7, 15, or 18 of this Code, notwithstanding any other provision
1374	1374	15 of this Code to the contrary, but do not apply to any
1375	1375	16 self-managed plan established under this Code or to any
1376	1376	17 participant of the retirement plan established under Section
1377	1377	18 22-101; except that this Section applies to a person who
1378	1378	19 elected to establish alternative credits by electing in
1379	1379	20 writing after January 1, 2011, but before August 8, 2011,
1380	1380	21 under Section 7-145.1 of this Code. Notwithstanding anything
1381	1381	22 to the contrary in this Section, for purposes of this Section,
1382	1382	23 a person who is a Tier 1 regular employee as defined in Section
1383	1383	24 7-109.4 of this Code or who participated in a retirement
1384	1384
1385	1385
1386	1386
1387	1387
1388	1388
1389	1389	SB3073 - 37 - LRB103 37686 RPS 67813 b
1390	1390
1391	1391
1392	1392	SB3073- 38 -LRB103 37686 RPS 67813 b SB3073 - 38 - LRB103 37686 RPS 67813 b
1393	1393	SB3073 - 38 - LRB103 37686 RPS 67813 b
1394	1394	1 system under Article 15 prior to January 1, 2011 shall be
1395	1395	2 deemed a person who first became a member or participant prior
1396	1396	3 to January 1, 2011 under any retirement system or pension fund
1397	1397	4 subject to this Section. The changes made to this Section by
1398	1398	5 Public Act 98-596 are a clarification of existing law and are
1399	1399	6 intended to be retroactive to January 1, 2011 (the effective
1400	1400	7 date of Public Act 96-889), notwithstanding the provisions of
1401	1401	8 Section 1-103.1 of this Code.
1402	1402	9 This Section does not apply to a person who first becomes a
1403	1403	10 noncovered employee under Article 14 on or after the
1404	1404	11 implementation date of the plan created under Section 1-161
1405	1405	12 for that Article, unless that person elects under subsection
1406	1406	13 (b) of Section 1-161 to instead receive the benefits provided
1407	1407	14 under this Section and the applicable provisions of that
1408	1408	15 Article.
1409	1409	16 This Section does not apply to a person who first becomes a
1410	1410	17 member or participant under Article 16 on or after the
1411	1411	18 implementation date of the plan created under Section 1-161
1412	1412	19 for that Article, unless that person elects under subsection
1413	1413	20 (b) of Section 1-161 to instead receive the benefits provided
1414	1414	21 under this Section and the applicable provisions of that
1415	1415	22 Article.
1416	1416	23 This Section does not apply to a person who elects under
1417	1417	24 subsection (c-5) of Section 1-161 to receive the benefits
1418	1418	25 under Section 1-161.
1419	1419	26 This Section does not apply to a person who first becomes a
1420	1420
1421	1421
1422	1422
1423	1423
1424	1424
1425	1425	SB3073 - 38 - LRB103 37686 RPS 67813 b
1426	1426
1427	1427
1428	1428	SB3073- 39 -LRB103 37686 RPS 67813 b SB3073 - 39 - LRB103 37686 RPS 67813 b
1429	1429	SB3073 - 39 - LRB103 37686 RPS 67813 b
1430	1430	1 member or participant of an affected pension fund on or after 6
1431	1431	2 months after the resolution or ordinance date, as defined in
1432	1432	3 Section 1-162, unless that person elects under subsection (c)
1433	1433	4 of Section 1-162 to receive the benefits provided under this
1434	1434	5 Section and the applicable provisions of the Article under
1435	1435	6 which he or she is a member or participant.
1436	1436	7 This Section does not apply to a person who participates
1437	1437	8 in a defined contribution plan established under Section
1438	1438	9 14-155.5.
1439	1439	10 (b) "Final average salary" means, except as otherwise
1440	1440	11 provided in this subsection, the average monthly (or annual)
1441	1441	12 salary obtained by dividing the total salary or earnings
1442	1442	13 calculated under the Article applicable to the member or
1443	1443	14 participant during the 96 consecutive months (or 8 consecutive
1444	1444	15 years) of service within the last 120 months (or 10 years) of
1445	1445	16 service in which the total salary or earnings calculated under
1446	1446	17 the applicable Article was the highest by the number of months
1447	1447	18 (or years) of service in that period. For the purposes of a
1448	1448	19 person who first becomes a member or participant of any
1449	1449	20 retirement system or pension fund to which this Section
1450	1450	21 applies on or after January 1, 2011, in this Code, "final
1451	1451	22 average salary" shall be substituted for the following:
1452	1452	23 (1) (Blank).
1453	1453	24 (2) In Articles 8, 9, 10, 11, and 12, "highest average
1454	1454	25 annual salary for any 4 consecutive years within the last
1455	1455	26 10 years of service immediately preceding the date of
1456	1456
1457	1457
1458	1458
1459	1459
1460	1460
1461	1461	SB3073 - 39 - LRB103 37686 RPS 67813 b
1462	1462
1463	1463
1464	1464	SB3073- 40 -LRB103 37686 RPS 67813 b SB3073 - 40 - LRB103 37686 RPS 67813 b
1465	1465	SB3073 - 40 - LRB103 37686 RPS 67813 b
1466	1466	1 withdrawal".
1467	1467	2 (3) In Article 13, "average final salary".
1468	1468	3 (4) In Article 14, "final average compensation".
1469	1469	4 (5) In Article 17, "average salary".
1470	1470	5 (6) In Section 22-207, "wages or salary received by
1471	1471	6 him at the date of retirement or discharge".
1472	1472	7 A member of the Teachers' Retirement System of the State
1473	1473	8 of Illinois who retires on or after June 1, 2021 and for whom
1474	1474	9 the 2020-2021 school year is used in the calculation of the
1475	1475	10 member's final average salary shall use the higher of the
1476	1476	11 following for the purpose of determining the member's final
1477	1477	12 average salary:
1478	1478	13 (A) the amount otherwise calculated under the first
1479	1479	14 paragraph of this subsection; or
1480	1480	15 (B) an amount calculated by the Teachers' Retirement
1481	1481	16 System of the State of Illinois using the average of the
1482	1482	17 monthly (or annual) salary obtained by dividing the total
1483	1483	18 salary or earnings calculated under Article 16 applicable
1484	1484	19 to the member or participant during the 96 months (or 8
1485	1485	20 years) of service within the last 120 months (or 10 years)
1486	1486	21 of service in which the total salary or earnings
1487	1487	22 calculated under the Article was the highest by the number
1488	1488	23 of months (or years) of service in that period.
1489	1489	24 (b-5) Beginning on January 1, 2011, for all purposes under
1490	1490	25 this Code (including without limitation the calculation of
1491	1491	26 benefits and employee contributions), the annual earnings,
1492	1492
1493	1493
1494	1494
1495	1495
1496	1496
1497	1497	SB3073 - 40 - LRB103 37686 RPS 67813 b
1498	1498
1499	1499
1500	1500	SB3073- 41 -LRB103 37686 RPS 67813 b SB3073 - 41 - LRB103 37686 RPS 67813 b
1501	1501	SB3073 - 41 - LRB103 37686 RPS 67813 b
1502	1502	1 salary, or wages (based on the plan year) of a member or
1503	1503	2 participant to whom this Section applies shall not exceed
1504	1504	3 $106,800; however, that amount shall annually thereafter be
1505	1505	4 increased by the lesser of (i) 3% of that amount, including all
1506	1506	5 previous adjustments, or (ii) one-half the annual unadjusted
1507	1507	6 percentage increase (but not less than zero) in the consumer
1508	1508	7 price index-u for the 12 months ending with the September
1509	1509	8 preceding each November 1, including all previous adjustments.
1510	1510	9 For the purposes of this Section, "consumer price index-u"
1511	1511	10 means the index published by the Bureau of Labor Statistics of
1512	1512	11 the United States Department of Labor that measures the
1513	1513	12 average change in prices of goods and services purchased by
1514	1514	13 all urban consumers, United States city average, all items,
1515	1515	14 1982-84 = 100. The new amount resulting from each annual
1516	1516	15 adjustment shall be determined by the Public Pension Division
1517	1517	16 of the Department of Insurance and made available to the
1518	1518	17 boards of the retirement systems and pension funds by November
1519	1519	18 1 of each year.
1520	1520	19 (b-10) Beginning on January 1, 2024, for all purposes
1521	1521	20 under this Code (including, without limitation, the
1522	1522	21 calculation of benefits and employee contributions), the
1523	1523	22 annual earnings, salary, or wages (based on the plan year) of a
1524	1524	23 member or participant under Article 9 to whom this Section
1525	1525	24 applies shall include an annual earnings, salary, or wage cap
1526	1526	25 that tracks the Social Security wage base. Maximum annual
1527	1527	26 earnings, wages, or salary shall be the annual contribution
1528	1528
1529	1529
1530	1530
1531	1531
1532	1532
1533	1533	SB3073 - 41 - LRB103 37686 RPS 67813 b
1534	1534
1535	1535
1536	1536	SB3073- 42 -LRB103 37686 RPS 67813 b SB3073 - 42 - LRB103 37686 RPS 67813 b
1537	1537	SB3073 - 42 - LRB103 37686 RPS 67813 b
1538	1538	1 and benefit base established for the applicable year by the
1539	1539	2 Commissioner of the Social Security Administration under the
1540	1540	3 federal Social Security Act.
1541	1541	4 However, in no event shall the annual earnings, salary, or
1542	1542	5 wages for the purposes of this Article and Article 9 exceed any
1543	1543	6 limitation imposed on annual earnings, salary, or wages under
1544	1544	7 Section 1-117. Under no circumstances shall the maximum amount
1545	1545	8 of annual earnings, salary, or wages be greater than the
1546	1546	9 amount set forth in this subsection (b-10) as a result of
1547	1547	10 reciprocal service or any provisions regarding reciprocal
1548	1548	11 services, nor shall the Fund under Article 9 be required to pay
1549	1549	12 any refund as a result of the application of this maximum
1550	1550	13 annual earnings, salary, and wage cap.
1551	1551	14 Nothing in this subsection (b-10) shall cause or otherwise
1552	1552	15 result in any retroactive adjustment of any employee
1553	1553	16 contributions. Nothing in this subsection (b-10) shall cause
1554	1554	17 or otherwise result in any retroactive adjustment of
1555	1555	18 disability or other payments made between January 1, 2011 and
1556	1556	19 January 1, 2024.
1557	1557	20 (c) A member or participant is entitled to a retirement
1558	1558	21 annuity upon written application if he or she has attained age
1559	1559	22 67 (age 65, with respect to service under Article 12 that is
1560	1560	23 subject to this Section, for a member or participant under
1561	1561	24 Article 12 who first becomes a member or participant under
1562	1562	25 Article 12 on or after January 1, 2022 or who makes the
1563	1563	26 election under item (i) of subsection (d-15) of this Section)
1564	1564
1565	1565
1566	1566
1567	1567
1568	1568
1569	1569	SB3073 - 42 - LRB103 37686 RPS 67813 b
1570	1570
1571	1571
1572	1572	SB3073- 43 -LRB103 37686 RPS 67813 b SB3073 - 43 - LRB103 37686 RPS 67813 b
1573	1573	SB3073 - 43 - LRB103 37686 RPS 67813 b
1574	1574	1 and has at least 10 years of service credit and is otherwise
1575	1575	2 eligible under the requirements of the applicable Article.
1576	1576	3 A member or participant who has attained age 62 (age 60,
1577	1577	4 with respect to service under Article 12 that is subject to
1578	1578	5 this Section, for a member or participant under Article 12 who
1579	1579	6 first becomes a member or participant under Article 12 on or
1580	1580	7 after January 1, 2022 or who makes the election under item (i)
1581	1581	8 of subsection (d-15) of this Section) and has at least 10 years
1582	1582	9 of service credit and is otherwise eligible under the
1583	1583	10 requirements of the applicable Article may elect to receive
1584	1584	11 the lower retirement annuity provided in subsection (d) of
1585	1585	12 this Section.
1586	1586	13 (c-5) A person who first becomes a member or a participant
1587	1587	14 subject to this Section on or after July 6, 2017 (the effective
1588	1588	15 date of Public Act 100-23), notwithstanding any other
1589	1589	16 provision of this Code to the contrary, is entitled to a
1590	1590	17 retirement annuity under Article 8 or Article 11 upon written
1591	1591	18 application if he or she has attained age 65 and has at least
1592	1592	19 10 years of service credit and is otherwise eligible under the
1593	1593	20 requirements of Article 8 or Article 11 of this Code,
1594	1594	21 whichever is applicable.
1595	1595	22 (d) The retirement annuity of a member or participant who
1596	1596	23 is retiring after attaining age 62 (age 60, with respect to
1597	1597	24 service under Article 12 that is subject to this Section, for a
1598	1598	25 member or participant under Article 12 who first becomes a
1599	1599	26 member or participant under Article 12 on or after January 1,
1600	1600
1601	1601
1602	1602
1603	1603
1604	1604
1605	1605	SB3073 - 43 - LRB103 37686 RPS 67813 b
1606	1606
1607	1607
1608	1608	SB3073- 44 -LRB103 37686 RPS 67813 b SB3073 - 44 - LRB103 37686 RPS 67813 b
1609	1609	SB3073 - 44 - LRB103 37686 RPS 67813 b
1610	1610	1 2022 or who makes the election under item (i) of subsection
1611	1611	2 (d-15) of this Section) with at least 10 years of service
1612	1612	3 credit shall be reduced by one-half of 1% for each full month
1613	1613	4 that the member's age is under age 67 (age 65, with respect to
1614	1614	5 service under Article 12 that is subject to this Section, for a
1615	1615	6 member or participant under Article 12 who first becomes a
1616	1616	7 member or participant under Article 12 on or after January 1,
1617	1617	8 2022 or who makes the election under item (i) of subsection
1618	1618	9 (d-15) of this Section).
1619	1619	10 (d-5) The retirement annuity payable under Article 8 or
1620	1620	11 Article 11 to an eligible person subject to subsection (c-5)
1621	1621	12 of this Section who is retiring at age 60 with at least 10
1622	1622	13 years of service credit shall be reduced by one-half of 1% for
1623	1623	14 each full month that the member's age is under age 65.
1624	1624	15 (d-10) Each person who first became a member or
1625	1625	16 participant under Article 8 or Article 11 of this Code on or
1626	1626	17 after January 1, 2011 and prior to July 6, 2017 (the effective
1627	1627	18 date of Public Act 100-23) shall make an irrevocable election
1628	1628	19 either:
1629	1629	20 (i) to be eligible for the reduced retirement age
1630	1630	21 provided in subsections (c-5) and (d-5) of this Section,
1631	1631	22 the eligibility for which is conditioned upon the member
1632	1632	23 or participant agreeing to the increases in employee
1633	1633	24 contributions for age and service annuities provided in
1634	1634	25 subsection (a-5) of Section 8-174 of this Code (for
1635	1635	26 service under Article 8) or subsection (a-5) of Section
1636	1636
1637	1637
1638	1638
1639	1639
1640	1640
1641	1641	SB3073 - 44 - LRB103 37686 RPS 67813 b
1642	1642
1643	1643
1644	1644	SB3073- 45 -LRB103 37686 RPS 67813 b SB3073 - 45 - LRB103 37686 RPS 67813 b
1645	1645	SB3073 - 45 - LRB103 37686 RPS 67813 b
1646	1646	1 11-170 of this Code (for service under Article 11); or
1647	1647	2 (ii) to not agree to item (i) of this subsection
1648	1648	3 (d-10), in which case the member or participant shall
1649	1649	4 continue to be subject to the retirement age provisions in
1650	1650	5 subsections (c) and (d) of this Section and the employee
1651	1651	6 contributions for age and service annuity as provided in
1652	1652	7 subsection (a) of Section 8-174 of this Code (for service
1653	1653	8 under Article 8) or subsection (a) of Section 11-170 of
1654	1654	9 this Code (for service under Article 11).
1655	1655	10 The election provided for in this subsection shall be made
1656	1656	11 between October 1, 2017 and November 15, 2017. A person
1657	1657	12 subject to this subsection who makes the required election
1658	1658	13 shall remain bound by that election. A person subject to this
1659	1659	14 subsection who fails for any reason to make the required
1660	1660	15 election within the time specified in this subsection shall be
1661	1661	16 deemed to have made the election under item (ii).
1662	1662	17 (d-15) Each person who first becomes a member or
1663	1663	18 participant under Article 12 on or after January 1, 2011 and
1664	1664	19 prior to January 1, 2022 shall make an irrevocable election
1665	1665	20 either:
1666	1666	21 (i) to be eligible for the reduced retirement age
1667	1667	22 specified in subsections (c) and (d) of this Section, the
1668	1668	23 eligibility for which is conditioned upon the member or
1669	1669	24 participant agreeing to the increase in employee
1670	1670	25 contributions for service annuities specified in
1671	1671	26 subsection (b) of Section 12-150; or
1672	1672
1673	1673
1674	1674
1675	1675
1676	1676
1677	1677	SB3073 - 45 - LRB103 37686 RPS 67813 b
1678	1678
1679	1679
1680	1680	SB3073- 46 -LRB103 37686 RPS 67813 b SB3073 - 46 - LRB103 37686 RPS 67813 b
1681	1681	SB3073 - 46 - LRB103 37686 RPS 67813 b
1682	1682	1 (ii) to not agree to item (i) of this subsection
1683	1683	2 (d-15), in which case the member or participant shall not
1684	1684	3 be eligible for the reduced retirement age specified in
1685	1685	4 subsections (c) and (d) of this Section and shall not be
1686	1686	5 subject to the increase in employee contributions for
1687	1687	6 service annuities specified in subsection (b) of Section
1688	1688	7 12-150.
1689	1689	8 The election provided for in this subsection shall be made
1690	1690	9 between January 1, 2022 and April 1, 2022. A person subject to
1691	1691	10 this subsection who makes the required election shall remain
1692	1692	11 bound by that election. A person subject to this subsection
1693	1693	12 who fails for any reason to make the required election within
1694	1694	13 the time specified in this subsection shall be deemed to have
1695	1695	14 made the election under item (ii).
1696	1696	15 (e) Any retirement annuity or supplemental annuity shall
1697	1697	16 be subject to annual increases on the January 1 occurring
1698	1698	17 either on or after the attainment of age 67 (age 65, with
1699	1699	18 respect to service under Article 12 that is subject to this
1700	1700	19 Section, for a member or participant under Article 12 who
1701	1701	20 first becomes a member or participant under Article 12 on or
1702	1702	21 after January 1, 2022 or who makes the election under item (i)
1703	1703	22 of subsection (d-15); and beginning on July 6, 2017 (the
1704	1704	23 effective date of Public Act 100-23), age 65 with respect to
1705	1705	24 service under Article 8 or Article 11 for eligible persons
1706	1706	25 who: (i) are subject to subsection (c-5) of this Section; or
1707	1707	26 (ii) made the election under item (i) of subsection (d-10) of
1708	1708
1709	1709
1710	1710
1711	1711
1712	1712
1713	1713	SB3073 - 46 - LRB103 37686 RPS 67813 b
1714	1714
1715	1715
1716	1716	SB3073- 47 -LRB103 37686 RPS 67813 b SB3073 - 47 - LRB103 37686 RPS 67813 b
1717	1717	SB3073 - 47 - LRB103 37686 RPS 67813 b
1718	1718	1 this Section) or the first anniversary of the annuity start
1719	1719	2 date, whichever is later. Each annual increase shall be
1720	1720	3 calculated at 3% or one-half the annual unadjusted percentage
1721	1721	4 increase (but not less than zero) in the consumer price
1722	1722	5 index-u for the 12 months ending with the September preceding
1723	1723	6 each November 1, whichever is less, of the originally granted
1724	1724	7 retirement annuity. If the annual unadjusted percentage change
1725	1725	8 in the consumer price index-u for the 12 months ending with the
1726	1726	9 September preceding each November 1 is zero or there is a
1727	1727	10 decrease, then the annuity shall not be increased.
1728	1728	11 For the purposes of Section 1-103.1 of this Code, the
1729	1729	12 changes made to this Section by Public Act 102-263 are
1730	1730	13 applicable without regard to whether the employee was in
1731	1731	14 active service on or after August 6, 2021 (the effective date
1732	1732	15 of Public Act 102-263).
1733	1733	16 For the purposes of Section 1-103.1 of this Code, the
1734	1734	17 changes made to this Section by Public Act 100-23 are
1735	1735	18 applicable without regard to whether the employee was in
1736	1736	19 active service on or after July 6, 2017 (the effective date of
1737	1737	20 Public Act 100-23).
1738	1738	21 (f) The initial survivor's or widow's annuity of an
1739	1739	22 otherwise eligible survivor or widow of a retired member or
1740	1740	23 participant who first became a member or participant on or
1741	1741	24 after January 1, 2011 shall be in the amount of 66 2/3% of the
1742	1742	25 retired member's or participant's retirement annuity at the
1743	1743	26 date of death. In the case of the death of a member or
1744	1744
1745	1745
1746	1746
1747	1747
1748	1748
1749	1749	SB3073 - 47 - LRB103 37686 RPS 67813 b
1750	1750
1751	1751
1752	1752	SB3073- 48 -LRB103 37686 RPS 67813 b SB3073 - 48 - LRB103 37686 RPS 67813 b
1753	1753	SB3073 - 48 - LRB103 37686 RPS 67813 b
1754	1754	1 participant who has not retired and who first became a member
1755	1755	2 or participant on or after January 1, 2011, eligibility for a
1756	1756	3 survivor's or widow's annuity shall be determined by the
1757	1757	4 applicable Article of this Code. The initial benefit shall be
1758	1758	5 66 2/3% of the earned annuity without a reduction due to age. A
1759	1759	6 child's annuity of an otherwise eligible child shall be in the
1760	1760	7 amount prescribed under each Article if applicable. Any
1761	1761	8 survivor's or widow's annuity shall be increased (1) on each
1762	1762	9 January 1 occurring on or after the commencement of the
1763	1763	10 annuity if the deceased member died while receiving a
1764	1764	11 retirement annuity or (2) in other cases, on each January 1
1765	1765	12 occurring after the first anniversary of the commencement of
1766	1766	13 the annuity. Each annual increase shall be calculated at 3% or
1767	1767	14 one-half the annual unadjusted percentage increase (but not
1768	1768	15 less than zero) in the consumer price index-u for the 12 months
1769	1769	16 ending with the September preceding each November 1, whichever
1770	1770	17 is less, of the originally granted survivor's annuity. If the
1771	1771	18 annual unadjusted percentage change in the consumer price
1772	1772	19 index-u for the 12 months ending with the September preceding
1773	1773	20 each November 1 is zero or there is a decrease, then the
1774	1774	21 annuity shall not be increased.
1775	1775	22 (g) The benefits in Section 14-110 apply if the person is a
1776	1776	23 fire fighter in the fire protection service of a department, a
1777	1777	24 security employee of the Department of Corrections or the
1778	1778	25 Department of Juvenile Justice, or a security employee of the
1779	1779	26 Department of Innovation and Technology, as those terms are
1780	1780
1781	1781
1782	1782
1783	1783
1784	1784
1785	1785	SB3073 - 48 - LRB103 37686 RPS 67813 b
1786	1786
1787	1787
1788	1788	SB3073- 49 -LRB103 37686 RPS 67813 b SB3073 - 49 - LRB103 37686 RPS 67813 b
1789	1789	SB3073 - 49 - LRB103 37686 RPS 67813 b
1790	1790	1 defined in subsection (b) and subsection (c) of Section
1791	1791	2 14-110. A person who meets the requirements of this Section is
1792	1792	3 entitled to an annuity calculated under the provisions of
1793	1793	4 Section 14-110, in lieu of the regular or minimum retirement
1794	1794	5 annuity, only if the person has withdrawn from service with
1795	1795	6 not less than 20 years of eligible creditable service and has
1796	1796	7 attained age 60, regardless of whether the attainment of age
1797	1797	8 60 occurs while the person is still in service.
1798	1798	9 (g-5) The benefits in Section 14-110 apply if the person
1799	1799	10 is a State policeman, investigator for the Secretary of State,
1800	1800	11 conservation police officer, investigator for the Department
1801	1801	12 of Revenue or the Illinois Gaming Board, investigator for the
1802	1802	13 Office of the Attorney General, Commerce Commission police
1803	1803	14 officer, or arson investigator, as those terms are defined in
1804	1804	15 subsection (b) and subsection (c) of Section 14-110. A person
1805	1805	16 who meets the requirements of this Section is entitled to an
1806	1806	17 annuity calculated under the provisions of Section 14-110, in
1807	1807	18 lieu of the regular or minimum retirement annuity, only if the
1808	1808	19 person has withdrawn from service with not less than 20 years
1809	1809	20 of eligible creditable service and has attained age 55,
1810	1810	21 regardless of whether the attainment of age 55 occurs while
1811	1811	22 the person is still in service.
1812	1812	23 (h) If a person who first becomes a member or a participant
1813	1813	24 of a retirement system or pension fund subject to this Section
1814	1814	25 on or after January 1, 2011 is receiving a retirement annuity
1815	1815	26 or retirement pension under that system or fund and becomes a
1816	1816
1817	1817
1818	1818
1819	1819
1820	1820
1821	1821	SB3073 - 49 - LRB103 37686 RPS 67813 b
1822	1822
1823	1823
1824	1824	SB3073- 50 -LRB103 37686 RPS 67813 b SB3073 - 50 - LRB103 37686 RPS 67813 b
1825	1825	SB3073 - 50 - LRB103 37686 RPS 67813 b
1826	1826	1 member or participant under any other system or fund created
1827	1827	2 by this Code and is employed on a full-time basis, except for
1828	1828	3 those members or participants exempted from the provisions of
1829	1829	4 this Section under subsection (a) of this Section, then the
1830	1830	5 person's retirement annuity or retirement pension under that
1831	1831	6 system or fund shall be suspended during that employment. Upon
1832	1832	7 termination of that employment, the person's retirement
1833	1833	8 annuity or retirement pension payments shall resume and be
1834	1834	9 recalculated if recalculation is provided for under the
1835	1835	10 applicable Article of this Code.
1836	1836	11 If a person who first becomes a member of a retirement
1837	1837	12 system or pension fund subject to this Section on or after
1838	1838	13 January 1, 2012 and is receiving a retirement annuity or
1839	1839	14 retirement pension under that system or fund and accepts on a
1840	1840	15 contractual basis a position to provide services to a
1841	1841	16 governmental entity from which he or she has retired, then
1842	1842	17 that person's annuity or retirement pension earned as an
1843	1843	18 active employee of the employer shall be suspended during that
1844	1844	19 contractual service. A person receiving an annuity or
1845	1845	20 retirement pension under this Code shall notify the pension
1846	1846	21 fund or retirement system from which he or she is receiving an
1847	1847	22 annuity or retirement pension, as well as his or her
1848	1848	23 contractual employer, of his or her retirement status before
1849	1849	24 accepting contractual employment. A person who fails to submit
1850	1850	25 such notification shall be guilty of a Class A misdemeanor and
1851	1851	26 required to pay a fine of $1,000. Upon termination of that
1852	1852
1853	1853
1854	1854
1855	1855
1856	1856
1857	1857	SB3073 - 50 - LRB103 37686 RPS 67813 b
1858	1858
1859	1859
1860	1860	SB3073- 51 -LRB103 37686 RPS 67813 b SB3073 - 51 - LRB103 37686 RPS 67813 b
1861	1861	SB3073 - 51 - LRB103 37686 RPS 67813 b
1862	1862	1 contractual employment, the person's retirement annuity or
1863	1863	2 retirement pension payments shall resume and, if appropriate,
1864	1864	3 be recalculated under the applicable provisions of this Code.
1865	1865	4 (i) (Blank).
1866	1866	5 (j) In the case of a conflict between the provisions of
1867	1867	6 this Section and any other provision of this Code, the
1868	1868	7 provisions of this Section shall control.
1869	1869	8 (Source: P.A. 101-610, eff. 1-1-20; 102-16, eff. 6-17-21;
1870	1870	9 102-210, eff. 1-1-22; 102-263, eff. 8-6-21; 102-719, eff.
1871	1871	10 5-6-22.)
1872	1872	11 (Text of Section from P.A. 102-813)
1873	1873	12 Sec. 1-160. Provisions applicable to new hires.
1874	1874	13 (a) The provisions of this Section apply to a person who,
1875	1875	14 on or after January 1, 2011, first becomes a member or a
1876	1876	15 participant under any reciprocal retirement system or pension
1877	1877	16 fund established under this Code, other than a retirement
1878	1878	17 system or pension fund established under Article 2, 3, 4, 5, 6,
1879	1879	18 7, 15, or 18 of this Code, notwithstanding any other provision
1880	1880	19 of this Code to the contrary, but do not apply to any
1881	1881	20 self-managed plan established under this Code or to any
1882	1882	21 participant of the retirement plan established under Section
1883	1883	22 22-101; except that this Section applies to a person who
1884	1884	23 elected to establish alternative credits by electing in
1885	1885	24 writing after January 1, 2011, but before August 8, 2011,
1886	1886	25 under Section 7-145.1 of this Code. Notwithstanding anything
1887	1887
1888	1888
1889	1889
1890	1890
1891	1891
1892	1892	SB3073 - 51 - LRB103 37686 RPS 67813 b
1893	1893
1894	1894
1895	1895	SB3073- 52 -LRB103 37686 RPS 67813 b SB3073 - 52 - LRB103 37686 RPS 67813 b
1896	1896	SB3073 - 52 - LRB103 37686 RPS 67813 b
1897	1897	1 to the contrary in this Section, for purposes of this Section,
1898	1898	2 a person who is a Tier 1 regular employee as defined in Section
1899	1899	3 7-109.4 of this Code or who participated in a retirement
1900	1900	4 system under Article 15 prior to January 1, 2011 shall be
1901	1901	5 deemed a person who first became a member or participant prior
1902	1902	6 to January 1, 2011 under any retirement system or pension fund
1903	1903	7 subject to this Section. The changes made to this Section by
1904	1904	8 Public Act 98-596 are a clarification of existing law and are
1905	1905	9 intended to be retroactive to January 1, 2011 (the effective
1906	1906	10 date of Public Act 96-889), notwithstanding the provisions of
1907	1907	11 Section 1-103.1 of this Code.
1908	1908	12 This Section does not apply to a person who first becomes a
1909	1909	13 noncovered employee under Article 14 on or after the
1910	1910	14 implementation date of the plan created under Section 1-161
1911	1911	15 for that Article, unless that person elects under subsection
1912	1912	16 (b) of Section 1-161 to instead receive the benefits provided
1913	1913	17 under this Section and the applicable provisions of that
1914	1914	18 Article.
1915	1915	19 This Section does not apply to a person who first becomes a
1916	1916	20 member or participant under Article 16 on or after the
1917	1917	21 implementation date of the plan created under Section 1-161
1918	1918	22 for that Article, unless that person elects under subsection
1919	1919	23 (b) of Section 1-161 to instead receive the benefits provided
1920	1920	24 under this Section and the applicable provisions of that
1921	1921	25 Article.
1922	1922	26 This Section does not apply to a person who elects under
1923	1923
1924	1924
1925	1925
1926	1926
1927	1927
1928	1928	SB3073 - 52 - LRB103 37686 RPS 67813 b
1929	1929
1930	1930
1931	1931	SB3073- 53 -LRB103 37686 RPS 67813 b SB3073 - 53 - LRB103 37686 RPS 67813 b
1932	1932	SB3073 - 53 - LRB103 37686 RPS 67813 b
1933	1933	1 subsection (c-5) of Section 1-161 to receive the benefits
1934	1934	2 under Section 1-161.
1935	1935	3 This Section does not apply to a person who first becomes a
1936	1936	4 member or participant of an affected pension fund on or after 6
1937	1937	5 months after the resolution or ordinance date, as defined in
1938	1938	6 Section 1-162, unless that person elects under subsection (c)
1939	1939	7 of Section 1-162 to receive the benefits provided under this
1940	1940	8 Section and the applicable provisions of the Article under
1941	1941	9 which he or she is a member or participant.
1942	1942	10 This Section does not apply to a person who participates
1943	1943	11 in a defined contribution plan established under Section
1944	1944	12 14-155.5.
1945	1945	13 (b) "Final average salary" means, except as otherwise
1946	1946	14 provided in this subsection, the average monthly (or annual)
1947	1947	15 salary obtained by dividing the total salary or earnings
1948	1948	16 calculated under the Article applicable to the member or
1949	1949	17 participant during the 96 consecutive months (or 8 consecutive
1950	1950	18 years) of service within the last 120 months (or 10 years) of
1951	1951	19 service in which the total salary or earnings calculated under
1952	1952	20 the applicable Article was the highest by the number of months
1953	1953	21 (or years) of service in that period. For the purposes of a
1954	1954	22 person who first becomes a member or participant of any
1955	1955	23 retirement system or pension fund to which this Section
1956	1956	24 applies on or after January 1, 2011, in this Code, "final
1957	1957	25 average salary" shall be substituted for the following:
1958	1958	26 (1) (Blank).
1959	1959
1960	1960
1961	1961
1962	1962
1963	1963
1964	1964	SB3073 - 53 - LRB103 37686 RPS 67813 b
1965	1965
1966	1966
1967	1967	SB3073- 54 -LRB103 37686 RPS 67813 b SB3073 - 54 - LRB103 37686 RPS 67813 b
1968	1968	SB3073 - 54 - LRB103 37686 RPS 67813 b
1969	1969	1 (2) In Articles 8, 9, 10, 11, and 12, "highest average
1970	1970	2 annual salary for any 4 consecutive years within the last
1971	1971	3 10 years of service immediately preceding the date of
1972	1972	4 withdrawal".
1973	1973	5 (3) In Article 13, "average final salary".
1974	1974	6 (4) In Article 14, "final average compensation".
1975	1975	7 (5) In Article 17, "average salary".
1976	1976	8 (6) In Section 22-207, "wages or salary received by
1977	1977	9 him at the date of retirement or discharge".
1978	1978	10 A member of the Teachers' Retirement System of the State
1979	1979	11 of Illinois who retires on or after June 1, 2021 and for whom
1980	1980	12 the 2020-2021 school year is used in the calculation of the
1981	1981	13 member's final average salary shall use the higher of the
1982	1982	14 following for the purpose of determining the member's final
1983	1983	15 average salary:
1984	1984	16 (A) the amount otherwise calculated under the first
1985	1985	17 paragraph of this subsection; or
1986	1986	18 (B) an amount calculated by the Teachers' Retirement
1987	1987	19 System of the State of Illinois using the average of the
1988	1988	20 monthly (or annual) salary obtained by dividing the total
1989	1989	21 salary or earnings calculated under Article 16 applicable
1990	1990	22 to the member or participant during the 96 months (or 8
1991	1991	23 years) of service within the last 120 months (or 10 years)
1992	1992	24 of service in which the total salary or earnings
1993	1993	25 calculated under the Article was the highest by the number
1994	1994	26 of months (or years) of service in that period.
1995	1995
1996	1996
1997	1997
1998	1998
1999	1999
2000	2000	SB3073 - 54 - LRB103 37686 RPS 67813 b
2001	2001
2002	2002
2003	2003	SB3073- 55 -LRB103 37686 RPS 67813 b SB3073 - 55 - LRB103 37686 RPS 67813 b
2004	2004	SB3073 - 55 - LRB103 37686 RPS 67813 b
2005	2005	1 (b-5) Beginning on January 1, 2011, for all purposes under
2006	2006	2 this Code (including without limitation the calculation of
2007	2007	3 benefits and employee contributions), the annual earnings,
2008	2008	4 salary, or wages (based on the plan year) of a member or
2009	2009	5 participant to whom this Section applies shall not exceed
2010	2010	6 $106,800; however, that amount shall annually thereafter be
2011	2011	7 increased by the lesser of (i) 3% of that amount, including all
2012	2012	8 previous adjustments, or (ii) one-half the annual unadjusted
2013	2013	9 percentage increase (but not less than zero) in the consumer
2014	2014	10 price index-u for the 12 months ending with the September
2015	2015	11 preceding each November 1, including all previous adjustments.
2016	2016	12 For the purposes of this Section, "consumer price index-u"
2017	2017	13 means the index published by the Bureau of Labor Statistics of
2018	2018	14 the United States Department of Labor that measures the
2019	2019	15 average change in prices of goods and services purchased by
2020	2020	16 all urban consumers, United States city average, all items,
2021	2021	17 1982-84 = 100. The new amount resulting from each annual
2022	2022	18 adjustment shall be determined by the Public Pension Division
2023	2023	19 of the Department of Insurance and made available to the
2024	2024	20 boards of the retirement systems and pension funds by November
2025	2025	21 1 of each year.
2026	2026	22 (b-10) Beginning on January 1, 2024, for all purposes
2027	2027	23 under this Code (including, without limitation, the
2028	2028	24 calculation of benefits and employee contributions), the
2029	2029	25 annual earnings, salary, or wages (based on the plan year) of a
2030	2030	26 member or participant under Article 9 to whom this Section
2031	2031
2032	2032
2033	2033
2034	2034
2035	2035
2036	2036	SB3073 - 55 - LRB103 37686 RPS 67813 b
2037	2037
2038	2038
2039	2039	SB3073- 56 -LRB103 37686 RPS 67813 b SB3073 - 56 - LRB103 37686 RPS 67813 b
2040	2040	SB3073 - 56 - LRB103 37686 RPS 67813 b
2041	2041	1 applies shall include an annual earnings, salary, or wage cap
2042	2042	2 that tracks the Social Security wage base. Maximum annual
2043	2043	3 earnings, wages, or salary shall be the annual contribution
2044	2044	4 and benefit base established for the applicable year by the
2045	2045	5 Commissioner of the Social Security Administration under the
2046	2046	6 federal Social Security Act.
2047	2047	7 However, in no event shall the annual earnings, salary, or
2048	2048	8 wages for the purposes of this Article and Article 9 exceed any
2049	2049	9 limitation imposed on annual earnings, salary, or wages under
2050	2050	10 Section 1-117. Under no circumstances shall the maximum amount
2051	2051	11 of annual earnings, salary, or wages be greater than the
2052	2052	12 amount set forth in this subsection (b-10) as a result of
2053	2053	13 reciprocal service or any provisions regarding reciprocal
2054	2054	14 services, nor shall the Fund under Article 9 be required to pay
2055	2055	15 any refund as a result of the application of this maximum
2056	2056	16 annual earnings, salary, and wage cap.
2057	2057	17 Nothing in this subsection (b-10) shall cause or otherwise
2058	2058	18 result in any retroactive adjustment of any employee
2059	2059	19 contributions. Nothing in this subsection (b-10) shall cause
2060	2060	20 or otherwise result in any retroactive adjustment of
2061	2061	21 disability or other payments made between January 1, 2011 and
2062	2062	22 January 1, 2024.
2063	2063	23 (c) A member or participant is entitled to a retirement
2064	2064	24 annuity upon written application if he or she has attained age
2065	2065	25 67 (age 65, with respect to service under Article 12 that is
2066	2066	26 subject to this Section, for a member or participant under
2067	2067
2068	2068
2069	2069
2070	2070
2071	2071
2072	2072	SB3073 - 56 - LRB103 37686 RPS 67813 b
2073	2073
2074	2074
2075	2075	SB3073- 57 -LRB103 37686 RPS 67813 b SB3073 - 57 - LRB103 37686 RPS 67813 b
2076	2076	SB3073 - 57 - LRB103 37686 RPS 67813 b
2077	2077	1 Article 12 who first becomes a member or participant under
2078	2078	2 Article 12 on or after January 1, 2022 or who makes the
2079	2079	3 election under item (i) of subsection (d-15) of this Section)
2080	2080	4 and has at least 10 years of service credit and is otherwise
2081	2081	5 eligible under the requirements of the applicable Article.
2082	2082	6 A member or participant who has attained age 62 (age 60,
2083	2083	7 with respect to service under Article 12 that is subject to
2084	2084	8 this Section, for a member or participant under Article 12 who
2085	2085	9 first becomes a member or participant under Article 12 on or
2086	2086	10 after January 1, 2022 or who makes the election under item (i)
2087	2087	11 of subsection (d-15) of this Section) and has at least 10 years
2088	2088	12 of service credit and is otherwise eligible under the
2089	2089	13 requirements of the applicable Article may elect to receive
2090	2090	14 the lower retirement annuity provided in subsection (d) of
2091	2091	15 this Section.
2092	2092	16 (c-5) A person who first becomes a member or a participant
2093	2093	17 subject to this Section on or after July 6, 2017 (the effective
2094	2094	18 date of Public Act 100-23), notwithstanding any other
2095	2095	19 provision of this Code to the contrary, is entitled to a
2096	2096	20 retirement annuity under Article 8 or Article 11 upon written
2097	2097	21 application if he or she has attained age 65 and has at least
2098	2098	22 10 years of service credit and is otherwise eligible under the
2099	2099	23 requirements of Article 8 or Article 11 of this Code,
2100	2100	24 whichever is applicable.
2101	2101	25 (d) The retirement annuity of a member or participant who
2102	2102	26 is retiring after attaining age 62 (age 60, with respect to
2103	2103
2104	2104
2105	2105
2106	2106
2107	2107
2108	2108	SB3073 - 57 - LRB103 37686 RPS 67813 b
2109	2109
2110	2110
2111	2111	SB3073- 58 -LRB103 37686 RPS 67813 b SB3073 - 58 - LRB103 37686 RPS 67813 b
2112	2112	SB3073 - 58 - LRB103 37686 RPS 67813 b
2113	2113	1 service under Article 12 that is subject to this Section, for a
2114	2114	2 member or participant under Article 12 who first becomes a
2115	2115	3 member or participant under Article 12 on or after January 1,
2116	2116	4 2022 or who makes the election under item (i) of subsection
2117	2117	5 (d-15) of this Section) with at least 10 years of service
2118	2118	6 credit shall be reduced by one-half of 1% for each full month
2119	2119	7 that the member's age is under age 67 (age 65, with respect to
2120	2120	8 service under Article 12 that is subject to this Section, for a
2121	2121	9 member or participant under Article 12 who first becomes a
2122	2122	10 member or participant under Article 12 on or after January 1,
2123	2123	11 2022 or who makes the election under item (i) of subsection
2124	2124	12 (d-15) of this Section).
2125	2125	13 (d-5) The retirement annuity payable under Article 8 or
2126	2126	14 Article 11 to an eligible person subject to subsection (c-5)
2127	2127	15 of this Section who is retiring at age 60 with at least 10
2128	2128	16 years of service credit shall be reduced by one-half of 1% for
2129	2129	17 each full month that the member's age is under age 65.
2130	2130	18 (d-10) Each person who first became a member or
2131	2131	19 participant under Article 8 or Article 11 of this Code on or
2132	2132	20 after January 1, 2011 and prior to July 6, 2017 (the effective
2133	2133	21 date of Public Act 100-23) shall make an irrevocable election
2134	2134	22 either:
2135	2135	23 (i) to be eligible for the reduced retirement age
2136	2136	24 provided in subsections (c-5) and (d-5) of this Section,
2137	2137	25 the eligibility for which is conditioned upon the member
2138	2138	26 or participant agreeing to the increases in employee
2139	2139
2140	2140
2141	2141
2142	2142
2143	2143
2144	2144	SB3073 - 58 - LRB103 37686 RPS 67813 b
2145	2145
2146	2146
2147	2147	SB3073- 59 -LRB103 37686 RPS 67813 b SB3073 - 59 - LRB103 37686 RPS 67813 b
2148	2148	SB3073 - 59 - LRB103 37686 RPS 67813 b
2149	2149	1 contributions for age and service annuities provided in
2150	2150	2 subsection (a-5) of Section 8-174 of this Code (for
2151	2151	3 service under Article 8) or subsection (a-5) of Section
2152	2152	4 11-170 of this Code (for service under Article 11); or
2153	2153	5 (ii) to not agree to item (i) of this subsection
2154	2154	6 (d-10), in which case the member or participant shall
2155	2155	7 continue to be subject to the retirement age provisions in
2156	2156	8 subsections (c) and (d) of this Section and the employee
2157	2157	9 contributions for age and service annuity as provided in
2158	2158	10 subsection (a) of Section 8-174 of this Code (for service
2159	2159	11 under Article 8) or subsection (a) of Section 11-170 of
2160	2160	12 this Code (for service under Article 11).
2161	2161	13 The election provided for in this subsection shall be made
2162	2162	14 between October 1, 2017 and November 15, 2017. A person
2163	2163	15 subject to this subsection who makes the required election
2164	2164	16 shall remain bound by that election. A person subject to this
2165	2165	17 subsection who fails for any reason to make the required
2166	2166	18 election within the time specified in this subsection shall be
2167	2167	19 deemed to have made the election under item (ii).
2168	2168	20 (d-15) Each person who first becomes a member or
2169	2169	21 participant under Article 12 on or after January 1, 2011 and
2170	2170	22 prior to January 1, 2022 shall make an irrevocable election
2171	2171	23 either:
2172	2172	24 (i) to be eligible for the reduced retirement age
2173	2173	25 specified in subsections (c) and (d) of this Section, the
2174	2174	26 eligibility for which is conditioned upon the member or
2175	2175
2176	2176
2177	2177
2178	2178
2179	2179
2180	2180	SB3073 - 59 - LRB103 37686 RPS 67813 b
2181	2181
2182	2182
2183	2183	SB3073- 60 -LRB103 37686 RPS 67813 b SB3073 - 60 - LRB103 37686 RPS 67813 b
2184	2184	SB3073 - 60 - LRB103 37686 RPS 67813 b
2185	2185	1 participant agreeing to the increase in employee
2186	2186	2 contributions for service annuities specified in
2187	2187	3 subsection (b) of Section 12-150; or
2188	2188	4 (ii) to not agree to item (i) of this subsection
2189	2189	5 (d-15), in which case the member or participant shall not
2190	2190	6 be eligible for the reduced retirement age specified in
2191	2191	7 subsections (c) and (d) of this Section and shall not be
2192	2192	8 subject to the increase in employee contributions for
2193	2193	9 service annuities specified in subsection (b) of Section
2194	2194	10 12-150.
2195	2195	11 The election provided for in this subsection shall be made
2196	2196	12 between January 1, 2022 and April 1, 2022. A person subject to
2197	2197	13 this subsection who makes the required election shall remain
2198	2198	14 bound by that election. A person subject to this subsection
2199	2199	15 who fails for any reason to make the required election within
2200	2200	16 the time specified in this subsection shall be deemed to have
2201	2201	17 made the election under item (ii).
2202	2202	18 (e) Any retirement annuity or supplemental annuity shall
2203	2203	19 be subject to annual increases on the January 1 occurring
2204	2204	20 either on or after the attainment of age 67 (age 65, with
2205	2205	21 respect to service under Article 12 that is subject to this
2206	2206	22 Section, for a member or participant under Article 12 who
2207	2207	23 first becomes a member or participant under Article 12 on or
2208	2208	24 after January 1, 2022 or who makes the election under item (i)
2209	2209	25 of subsection (d-15); and beginning on July 6, 2017 (the
2210	2210	26 effective date of Public Act 100-23), age 65 with respect to
2211	2211
2212	2212
2213	2213
2214	2214
2215	2215
2216	2216	SB3073 - 60 - LRB103 37686 RPS 67813 b
2217	2217
2218	2218
2219	2219	SB3073- 61 -LRB103 37686 RPS 67813 b SB3073 - 61 - LRB103 37686 RPS 67813 b
2220	2220	SB3073 - 61 - LRB103 37686 RPS 67813 b
2221	2221	1 service under Article 8 or Article 11 for eligible persons
2222	2222	2 who: (i) are subject to subsection (c-5) of this Section; or
2223	2223	3 (ii) made the election under item (i) of subsection (d-10) of
2224	2224	4 this Section) or the first anniversary of the annuity start
2225	2225	5 date, whichever is later. Each annual increase shall be
2226	2226	6 calculated at 3% or one-half the annual unadjusted percentage
2227	2227	7 increase (but not less than zero) in the consumer price
2228	2228	8 index-u for the 12 months ending with the September preceding
2229	2229	9 each November 1, whichever is less, of the originally granted
2230	2230	10 retirement annuity. If the annual unadjusted percentage change
2231	2231	11 in the consumer price index-u for the 12 months ending with the
2232	2232	12 September preceding each November 1 is zero or there is a
2233	2233	13 decrease, then the annuity shall not be increased.
2234	2234	14 For the purposes of Section 1-103.1 of this Code, the
2235	2235	15 changes made to this Section by Public Act 102-263 are
2236	2236	16 applicable without regard to whether the employee was in
2237	2237	17 active service on or after August 6, 2021 (the effective date
2238	2238	18 of Public Act 102-263).
2239	2239	19 For the purposes of Section 1-103.1 of this Code, the
2240	2240	20 changes made to this Section by Public Act 100-23 are
2241	2241	21 applicable without regard to whether the employee was in
2242	2242	22 active service on or after July 6, 2017 (the effective date of
2243	2243	23 Public Act 100-23).
2244	2244	24 (f) The initial survivor's or widow's annuity of an
2245	2245	25 otherwise eligible survivor or widow of a retired member or
2246	2246	26 participant who first became a member or participant on or
2247	2247
2248	2248
2249	2249
2250	2250
2251	2251
2252	2252	SB3073 - 61 - LRB103 37686 RPS 67813 b
2253	2253
2254	2254
2255	2255	SB3073- 62 -LRB103 37686 RPS 67813 b SB3073 - 62 - LRB103 37686 RPS 67813 b
2256	2256	SB3073 - 62 - LRB103 37686 RPS 67813 b
2257	2257	1 after January 1, 2011 shall be in the amount of 66 2/3% of the
2258	2258	2 retired member's or participant's retirement annuity at the
2259	2259	3 date of death. In the case of the death of a member or
2260	2260	4 participant who has not retired and who first became a member
2261	2261	5 or participant on or after January 1, 2011, eligibility for a
2262	2262	6 survivor's or widow's annuity shall be determined by the
2263	2263	7 applicable Article of this Code. The initial benefit shall be
2264	2264	8 66 2/3% of the earned annuity without a reduction due to age. A
2265	2265	9 child's annuity of an otherwise eligible child shall be in the
2266	2266	10 amount prescribed under each Article if applicable. Any
2267	2267	11 survivor's or widow's annuity shall be increased (1) on each
2268	2268	12 January 1 occurring on or after the commencement of the
2269	2269	13 annuity if the deceased member died while receiving a
2270	2270	14 retirement annuity or (2) in other cases, on each January 1
2271	2271	15 occurring after the first anniversary of the commencement of
2272	2272	16 the annuity. Each annual increase shall be calculated at 3% or
2273	2273	17 one-half the annual unadjusted percentage increase (but not
2274	2274	18 less than zero) in the consumer price index-u for the 12 months
2275	2275	19 ending with the September preceding each November 1, whichever
2276	2276	20 is less, of the originally granted survivor's annuity. If the
2277	2277	21 annual unadjusted percentage change in the consumer price
2278	2278	22 index-u for the 12 months ending with the September preceding
2279	2279	23 each November 1 is zero or there is a decrease, then the
2280	2280	24 annuity shall not be increased.
2281	2281	25 (g) The benefits in Section 14-110 apply only if the
2282	2282	26 person is a State policeman, a fire fighter in the fire
2283	2283
2284	2284
2285	2285
2286	2286
2287	2287
2288	2288	SB3073 - 62 - LRB103 37686 RPS 67813 b
2289	2289
2290	2290
2291	2291	SB3073- 63 -LRB103 37686 RPS 67813 b SB3073 - 63 - LRB103 37686 RPS 67813 b
2292	2292	SB3073 - 63 - LRB103 37686 RPS 67813 b
2293	2293	1 protection service of a department, a conservation police
2294	2294	2 officer, an investigator for the Secretary of State, an arson
2295	2295	3 investigator, a Commerce Commission police officer,
2296	2296	4 investigator for the Department of Revenue or the Illinois
2297	2297	5 Gaming Board, a security employee of the Department of
2298	2298	6 Corrections or the Department of Juvenile Justice, or a
2299	2299	7 security employee of the Department of Innovation and
2300	2300	8 Technology, as those terms are defined in subsection (b) and
2301	2301	9 subsection (c) of Section 14-110. A person who meets the
2302	2302	10 requirements of this Section is entitled to an annuity
2303	2303	11 calculated under the provisions of Section 14-110, in lieu of
2304	2304	12 the regular or minimum retirement annuity, only if the person
2305	2305	13 has withdrawn from service with not less than 20 years of
2306	2306	14 eligible creditable service and has attained age 60,
2307	2307	15 regardless of whether the attainment of age 60 occurs while
2308	2308	16 the person is still in service.
2309	2309	17 (h) If a person who first becomes a member or a participant
2310	2310	18 of a retirement system or pension fund subject to this Section
2311	2311	19 on or after January 1, 2011 is receiving a retirement annuity
2312	2312	20 or retirement pension under that system or fund and becomes a
2313	2313	21 member or participant under any other system or fund created
2314	2314	22 by this Code and is employed on a full-time basis, except for
2315	2315	23 those members or participants exempted from the provisions of
2316	2316	24 this Section under subsection (a) of this Section, then the
2317	2317	25 person's retirement annuity or retirement pension under that
2318	2318	26 system or fund shall be suspended during that employment. Upon
2319	2319
2320	2320
2321	2321
2322	2322
2323	2323
2324	2324	SB3073 - 63 - LRB103 37686 RPS 67813 b
2325	2325
2326	2326
2327	2327	SB3073- 64 -LRB103 37686 RPS 67813 b SB3073 - 64 - LRB103 37686 RPS 67813 b
2328	2328	SB3073 - 64 - LRB103 37686 RPS 67813 b
2329	2329	1 termination of that employment, the person's retirement
2330	2330	2 annuity or retirement pension payments shall resume and be
2331	2331	3 recalculated if recalculation is provided for under the
2332	2332	4 applicable Article of this Code.
2333	2333	5 If a person who first becomes a member of a retirement
2334	2334	6 system or pension fund subject to this Section on or after
2335	2335	7 January 1, 2012 and is receiving a retirement annuity or
2336	2336	8 retirement pension under that system or fund and accepts on a
2337	2337	9 contractual basis a position to provide services to a
2338	2338	10 governmental entity from which he or she has retired, then
2339	2339	11 that person's annuity or retirement pension earned as an
2340	2340	12 active employee of the employer shall be suspended during that
2341	2341	13 contractual service. A person receiving an annuity or
2342	2342	14 retirement pension under this Code shall notify the pension
2343	2343	15 fund or retirement system from which he or she is receiving an
2344	2344	16 annuity or retirement pension, as well as his or her
2345	2345	17 contractual employer, of his or her retirement status before
2346	2346	18 accepting contractual employment. A person who fails to submit
2347	2347	19 such notification shall be guilty of a Class A misdemeanor and
2348	2348	20 required to pay a fine of $1,000. Upon termination of that
2349	2349	21 contractual employment, the person's retirement annuity or
2350	2350	22 retirement pension payments shall resume and, if appropriate,
2351	2351	23 be recalculated under the applicable provisions of this Code.
2352	2352	24 (i) (Blank).
2353	2353	25 (j) In the case of a conflict between the provisions of
2354	2354	26 this Section and any other provision of this Code, the
2355	2355
2356	2356
2357	2357
2358	2358
2359	2359
2360	2360	SB3073 - 64 - LRB103 37686 RPS 67813 b
2361	2361
2362	2362
2363	2363	SB3073- 65 -LRB103 37686 RPS 67813 b SB3073 - 65 - LRB103 37686 RPS 67813 b
2364	2364	SB3073 - 65 - LRB103 37686 RPS 67813 b
2365	2365	1 provisions of this Section shall control.
2366	2366	2 (Source: P.A. 101-610, eff. 1-1-20; 102-16, eff. 6-17-21;
2367	2367	3 102-210, eff. 1-1-22; 102-263, eff. 8-6-21; 102-813, eff.
2368	2368	4 5-13-22.)
2369	2369	5 (Text of Section from P.A. 102-956)
2370	2370	6 Sec. 1-160. Provisions applicable to new hires.
2371	2371	7 (a) The provisions of this Section apply to a person who,
2372	2372	8 on or after January 1, 2011, first becomes a member or a
2373	2373	9 participant under any reciprocal retirement system or pension
2374	2374	10 fund established under this Code, other than a retirement
2375	2375	11 system or pension fund established under Article 2, 3, 4, 5, 6,
2376	2376	12 7, 15, or 18 of this Code, notwithstanding any other provision
2377	2377	13 of this Code to the contrary, but do not apply to any
2378	2378	14 self-managed plan established under this Code or to any
2379	2379	15 participant of the retirement plan established under Section
2380	2380	16 22-101; except that this Section applies to a person who
2381	2381	17 elected to establish alternative credits by electing in
2382	2382	18 writing after January 1, 2011, but before August 8, 2011,
2383	2383	19 under Section 7-145.1 of this Code. Notwithstanding anything
2384	2384	20 to the contrary in this Section, for purposes of this Section,
2385	2385	21 a person who is a Tier 1 regular employee as defined in Section
2386	2386	22 7-109.4 of this Code or who participated in a retirement
2387	2387	23 system under Article 15 prior to January 1, 2011 shall be
2388	2388	24 deemed a person who first became a member or participant prior
2389	2389	25 to January 1, 2011 under any retirement system or pension fund
2390	2390
2391	2391
2392	2392
2393	2393
2394	2394
2395	2395	SB3073 - 65 - LRB103 37686 RPS 67813 b
2396	2396
2397	2397
2398	2398	SB3073- 66 -LRB103 37686 RPS 67813 b SB3073 - 66 - LRB103 37686 RPS 67813 b
2399	2399	SB3073 - 66 - LRB103 37686 RPS 67813 b
2400	2400	1 subject to this Section. The changes made to this Section by
2401	2401	2 Public Act 98-596 are a clarification of existing law and are
2402	2402	3 intended to be retroactive to January 1, 2011 (the effective
2403	2403	4 date of Public Act 96-889), notwithstanding the provisions of
2404	2404	5 Section 1-103.1 of this Code.
2405	2405	6 This Section does not apply to a person who first becomes a
2406	2406	7 noncovered employee under Article 14 on or after the
2407	2407	8 implementation date of the plan created under Section 1-161
2408	2408	9 for that Article, unless that person elects under subsection
2409	2409	10 (b) of Section 1-161 to instead receive the benefits provided
2410	2410	11 under this Section and the applicable provisions of that
2411	2411	12 Article.
2412	2412	13 This Section does not apply to a person who first becomes a
2413	2413	14 member or participant under Article 16 on or after the
2414	2414	15 implementation date of the plan created under Section 1-161
2415	2415	16 for that Article, unless that person elects under subsection
2416	2416	17 (b) of Section 1-161 to instead receive the benefits provided
2417	2417	18 under this Section and the applicable provisions of that
2418	2418	19 Article.
2419	2419	20 This Section does not apply to a person who elects under
2420	2420	21 subsection (c-5) of Section 1-161 to receive the benefits
2421	2421	22 under Section 1-161.
2422	2422	23 This Section does not apply to a person who first becomes a
2423	2423	24 member or participant of an affected pension fund on or after 6
2424	2424	25 months after the resolution or ordinance date, as defined in
2425	2425	26 Section 1-162, unless that person elects under subsection (c)
2426	2426
2427	2427
2428	2428
2429	2429
2430	2430
2431	2431	SB3073 - 66 - LRB103 37686 RPS 67813 b
2432	2432
2433	2433
2434	2434	SB3073- 67 -LRB103 37686 RPS 67813 b SB3073 - 67 - LRB103 37686 RPS 67813 b
2435	2435	SB3073 - 67 - LRB103 37686 RPS 67813 b
2436	2436	1 of Section 1-162 to receive the benefits provided under this
2437	2437	2 Section and the applicable provisions of the Article under
2438	2438	3 which he or she is a member or participant.
2439	2439	4 This Section does not apply to a person who participates
2440	2440	5 in a defined contribution plan established under Section
2441	2441	6 14-155.5.
2442	2442	7 (b) "Final average salary" means, except as otherwise
2443	2443	8 provided in this subsection, the average monthly (or annual)
2444	2444	9 salary obtained by dividing the total salary or earnings
2445	2445	10 calculated under the Article applicable to the member or
2446	2446	11 participant during the 96 consecutive months (or 8 consecutive
2447	2447	12 years) of service within the last 120 months (or 10 years) of
2448	2448	13 service in which the total salary or earnings calculated under
2449	2449	14 the applicable Article was the highest by the number of months
2450	2450	15 (or years) of service in that period. For the purposes of a
2451	2451	16 person who first becomes a member or participant of any
2452	2452	17 retirement system or pension fund to which this Section
2453	2453	18 applies on or after January 1, 2011, in this Code, "final
2454	2454	19 average salary" shall be substituted for the following:
2455	2455	20 (1) (Blank).
2456	2456	21 (2) In Articles 8, 9, 10, 11, and 12, "highest average
2457	2457	22 annual salary for any 4 consecutive years within the last
2458	2458	23 10 years of service immediately preceding the date of
2459	2459	24 withdrawal".
2460	2460	25 (3) In Article 13, "average final salary".
2461	2461	26 (4) In Article 14, "final average compensation".
2462	2462
2463	2463
2464	2464
2465	2465
2466	2466
2467	2467	SB3073 - 67 - LRB103 37686 RPS 67813 b
2468	2468
2469	2469
2470	2470	SB3073- 68 -LRB103 37686 RPS 67813 b SB3073 - 68 - LRB103 37686 RPS 67813 b
2471	2471	SB3073 - 68 - LRB103 37686 RPS 67813 b
2472	2472	1 (5) In Article 17, "average salary".
2473	2473	2 (6) In Section 22-207, "wages or salary received by
2474	2474	3 him at the date of retirement or discharge".
2475	2475	4 A member of the Teachers' Retirement System of the State
2476	2476	5 of Illinois who retires on or after June 1, 2021 and for whom
2477	2477	6 the 2020-2021 school year is used in the calculation of the
2478	2478	7 member's final average salary shall use the higher of the
2479	2479	8 following for the purpose of determining the member's final
2480	2480	9 average salary:
2481	2481	10 (A) the amount otherwise calculated under the first
2482	2482	11 paragraph of this subsection; or
2483	2483	12 (B) an amount calculated by the Teachers' Retirement
2484	2484	13 System of the State of Illinois using the average of the
2485	2485	14 monthly (or annual) salary obtained by dividing the total
2486	2486	15 salary or earnings calculated under Article 16 applicable
2487	2487	16 to the member or participant during the 96 months (or 8
2488	2488	17 years) of service within the last 120 months (or 10 years)
2489	2489	18 of service in which the total salary or earnings
2490	2490	19 calculated under the Article was the highest by the number
2491	2491	20 of months (or years) of service in that period.
2492	2492	21 (b-5) Beginning on January 1, 2011, for all purposes under
2493	2493	22 this Code (including without limitation the calculation of
2494	2494	23 benefits and employee contributions), the annual earnings,
2495	2495	24 salary, or wages (based on the plan year) of a member or
2496	2496	25 participant to whom this Section applies shall not exceed
2497	2497	26 $106,800; however, that amount shall annually thereafter be
2498	2498
2499	2499
2500	2500
2501	2501
2502	2502
2503	2503	SB3073 - 68 - LRB103 37686 RPS 67813 b
2504	2504
2505	2505
2506	2506	SB3073- 69 -LRB103 37686 RPS 67813 b SB3073 - 69 - LRB103 37686 RPS 67813 b
2507	2507	SB3073 - 69 - LRB103 37686 RPS 67813 b
2508	2508	1 increased by the lesser of (i) 3% of that amount, including all
2509	2509	2 previous adjustments, or (ii) one-half the annual unadjusted
2510	2510	3 percentage increase (but not less than zero) in the consumer
2511	2511	4 price index-u for the 12 months ending with the September
2512	2512	5 preceding each November 1, including all previous adjustments.
2513	2513	6 For the purposes of this Section, "consumer price index-u"
2514	2514	7 means the index published by the Bureau of Labor Statistics of
2515	2515	8 the United States Department of Labor that measures the
2516	2516	9 average change in prices of goods and services purchased by
2517	2517	10 all urban consumers, United States city average, all items,
2518	2518	11 1982-84 = 100. The new amount resulting from each annual
2519	2519	12 adjustment shall be determined by the Public Pension Division
2520	2520	13 of the Department of Insurance and made available to the
2521	2521	14 boards of the retirement systems and pension funds by November
2522	2522	15 1 of each year.
2523	2523	16 (b-10) Beginning on January 1, 2024, for all purposes
2524	2524	17 under this Code (including, without limitation, the
2525	2525	18 calculation of benefits and employee contributions), the
2526	2526	19 annual earnings, salary, or wages (based on the plan year) of a
2527	2527	20 member or participant under Article 9 to whom this Section
2528	2528	21 applies shall include an annual earnings, salary, or wage cap
2529	2529	22 that tracks the Social Security wage base. Maximum annual
2530	2530	23 earnings, wages, or salary shall be the annual contribution
2531	2531	24 and benefit base established for the applicable year by the
2532	2532	25 Commissioner of the Social Security Administration under the
2533	2533	26 federal Social Security Act.
2534	2534
2535	2535
2536	2536
2537	2537
2538	2538
2539	2539	SB3073 - 69 - LRB103 37686 RPS 67813 b
2540	2540
2541	2541
2542	2542	SB3073- 70 -LRB103 37686 RPS 67813 b SB3073 - 70 - LRB103 37686 RPS 67813 b
2543	2543	SB3073 - 70 - LRB103 37686 RPS 67813 b
2544	2544	1 However, in no event shall the annual earnings, salary, or
2545	2545	2 wages for the purposes of this Article and Article 9 exceed any
2546	2546	3 limitation imposed on annual earnings, salary, or wages under
2547	2547	4 Section 1-117. Under no circumstances shall the maximum amount
2548	2548	5 of annual earnings, salary, or wages be greater than the
2549	2549	6 amount set forth in this subsection (b-10) as a result of
2550	2550	7 reciprocal service or any provisions regarding reciprocal
2551	2551	8 services, nor shall the Fund under Article 9 be required to pay
2552	2552	9 any refund as a result of the application of this maximum
2553	2553	10 annual earnings, salary, and wage cap.
2554	2554	11 Nothing in this subsection (b-10) shall cause or otherwise
2555	2555	12 result in any retroactive adjustment of any employee
2556	2556	13 contributions. Nothing in this subsection (b-10) shall cause
2557	2557	14 or otherwise result in any retroactive adjustment of
2558	2558	15 disability or other payments made between January 1, 2011 and
2559	2559	16 January 1, 2024.
2560	2560	17 (c) A member or participant is entitled to a retirement
2561	2561	18 annuity upon written application if he or she has attained age
2562	2562	19 67 (age 65, with respect to service under Article 12 that is
2563	2563	20 subject to this Section, for a member or participant under
2564	2564	21 Article 12 who first becomes a member or participant under
2565	2565	22 Article 12 on or after January 1, 2022 or who makes the
2566	2566	23 election under item (i) of subsection (d-15) of this Section)
2567	2567	24 and has at least 10 years of service credit and is otherwise
2568	2568	25 eligible under the requirements of the applicable Article.
2569	2569	26 A member or participant who has attained age 62 (age 60,
2570	2570
2571	2571
2572	2572
2573	2573
2574	2574
2575	2575	SB3073 - 70 - LRB103 37686 RPS 67813 b
2576	2576
2577	2577
2578	2578	SB3073- 71 -LRB103 37686 RPS 67813 b SB3073 - 71 - LRB103 37686 RPS 67813 b
2579	2579	SB3073 - 71 - LRB103 37686 RPS 67813 b
2580	2580	1 with respect to service under Article 12 that is subject to
2581	2581	2 this Section, for a member or participant under Article 12 who
2582	2582	3 first becomes a member or participant under Article 12 on or
2583	2583	4 after January 1, 2022 or who makes the election under item (i)
2584	2584	5 of subsection (d-15) of this Section) and has at least 10 years
2585	2585	6 of service credit and is otherwise eligible under the
2586	2586	7 requirements of the applicable Article may elect to receive
2587	2587	8 the lower retirement annuity provided in subsection (d) of
2588	2588	9 this Section.
2589	2589	10 (c-5) A person who first becomes a member or a participant
2590	2590	11 subject to this Section on or after July 6, 2017 (the effective
2591	2591	12 date of Public Act 100-23), notwithstanding any other
2592	2592	13 provision of this Code to the contrary, is entitled to a
2593	2593	14 retirement annuity under Article 8 or Article 11 upon written
2594	2594	15 application if he or she has attained age 65 and has at least
2595	2595	16 10 years of service credit and is otherwise eligible under the
2596	2596	17 requirements of Article 8 or Article 11 of this Code,
2597	2597	18 whichever is applicable.
2598	2598	19 (d) The retirement annuity of a member or participant who
2599	2599	20 is retiring after attaining age 62 (age 60, with respect to
2600	2600	21 service under Article 12 that is subject to this Section, for a
2601	2601	22 member or participant under Article 12 who first becomes a
2602	2602	23 member or participant under Article 12 on or after January 1,
2603	2603	24 2022 or who makes the election under item (i) of subsection
2604	2604	25 (d-15) of this Section) with at least 10 years of service
2605	2605	26 credit shall be reduced by one-half of 1% for each full month
2606	2606
2607	2607
2608	2608
2609	2609
2610	2610
2611	2611	SB3073 - 71 - LRB103 37686 RPS 67813 b
2612	2612
2613	2613
2614	2614	SB3073- 72 -LRB103 37686 RPS 67813 b SB3073 - 72 - LRB103 37686 RPS 67813 b
2615	2615	SB3073 - 72 - LRB103 37686 RPS 67813 b
2616	2616	1 that the member's age is under age 67 (age 65, with respect to
2617	2617	2 service under Article 12 that is subject to this Section, for a
2618	2618	3 member or participant under Article 12 who first becomes a
2619	2619	4 member or participant under Article 12 on or after January 1,
2620	2620	5 2022 or who makes the election under item (i) of subsection
2621	2621	6 (d-15) of this Section).
2622	2622	7 (d-5) The retirement annuity payable under Article 8 or
2623	2623	8 Article 11 to an eligible person subject to subsection (c-5)
2624	2624	9 of this Section who is retiring at age 60 with at least 10
2625	2625	10 years of service credit shall be reduced by one-half of 1% for
2626	2626	11 each full month that the member's age is under age 65.
2627	2627	12 (d-10) Each person who first became a member or
2628	2628	13 participant under Article 8 or Article 11 of this Code on or
2629	2629	14 after January 1, 2011 and prior to July 6, 2017 (the effective
2630	2630	15 date of Public Act 100-23) shall make an irrevocable election
2631	2631	16 either:
2632	2632	17 (i) to be eligible for the reduced retirement age
2633	2633	18 provided in subsections (c-5) and (d-5) of this Section,
2634	2634	19 the eligibility for which is conditioned upon the member
2635	2635	20 or participant agreeing to the increases in employee
2636	2636	21 contributions for age and service annuities provided in
2637	2637	22 subsection (a-5) of Section 8-174 of this Code (for
2638	2638	23 service under Article 8) or subsection (a-5) of Section
2639	2639	24 11-170 of this Code (for service under Article 11); or
2640	2640	25 (ii) to not agree to item (i) of this subsection
2641	2641	26 (d-10), in which case the member or participant shall
2642	2642
2643	2643
2644	2644
2645	2645
2646	2646
2647	2647	SB3073 - 72 - LRB103 37686 RPS 67813 b
2648	2648
2649	2649
2650	2650	SB3073- 73 -LRB103 37686 RPS 67813 b SB3073 - 73 - LRB103 37686 RPS 67813 b
2651	2651	SB3073 - 73 - LRB103 37686 RPS 67813 b
2652	2652	1 continue to be subject to the retirement age provisions in
2653	2653	2 subsections (c) and (d) of this Section and the employee
2654	2654	3 contributions for age and service annuity as provided in
2655	2655	4 subsection (a) of Section 8-174 of this Code (for service
2656	2656	5 under Article 8) or subsection (a) of Section 11-170 of
2657	2657	6 this Code (for service under Article 11).
2658	2658	7 The election provided for in this subsection shall be made
2659	2659	8 between October 1, 2017 and November 15, 2017. A person
2660	2660	9 subject to this subsection who makes the required election
2661	2661	10 shall remain bound by that election. A person subject to this
2662	2662	11 subsection who fails for any reason to make the required
2663	2663	12 election within the time specified in this subsection shall be
2664	2664	13 deemed to have made the election under item (ii).
2665	2665	14 (d-15) Each person who first becomes a member or
2666	2666	15 participant under Article 12 on or after January 1, 2011 and
2667	2667	16 prior to January 1, 2022 shall make an irrevocable election
2668	2668	17 either:
2669	2669	18 (i) to be eligible for the reduced retirement age
2670	2670	19 specified in subsections (c) and (d) of this Section, the
2671	2671	20 eligibility for which is conditioned upon the member or
2672	2672	21 participant agreeing to the increase in employee
2673	2673	22 contributions for service annuities specified in
2674	2674	23 subsection (b) of Section 12-150; or
2675	2675	24 (ii) to not agree to item (i) of this subsection
2676	2676	25 (d-15), in which case the member or participant shall not
2677	2677	26 be eligible for the reduced retirement age specified in
2678	2678
2679	2679
2680	2680
2681	2681
2682	2682
2683	2683	SB3073 - 73 - LRB103 37686 RPS 67813 b
2684	2684
2685	2685
2686	2686	SB3073- 74 -LRB103 37686 RPS 67813 b SB3073 - 74 - LRB103 37686 RPS 67813 b
2687	2687	SB3073 - 74 - LRB103 37686 RPS 67813 b
2688	2688	1 subsections (c) and (d) of this Section and shall not be
2689	2689	2 subject to the increase in employee contributions for
2690	2690	3 service annuities specified in subsection (b) of Section
2691	2691	4 12-150.
2692	2692	5 The election provided for in this subsection shall be made
2693	2693	6 between January 1, 2022 and April 1, 2022. A person subject to
2694	2694	7 this subsection who makes the required election shall remain
2695	2695	8 bound by that election. A person subject to this subsection
2696	2696	9 who fails for any reason to make the required election within
2697	2697	10 the time specified in this subsection shall be deemed to have
2698	2698	11 made the election under item (ii).
2699	2699	12 (e) Any retirement annuity or supplemental annuity shall
2700	2700	13 be subject to annual increases on the January 1 occurring
2701	2701	14 either on or after the attainment of age 67 (age 65, with
2702	2702	15 respect to service under Article 12 that is subject to this
2703	2703	16 Section, for a member or participant under Article 12 who
2704	2704	17 first becomes a member or participant under Article 12 on or
2705	2705	18 after January 1, 2022 or who makes the election under item (i)
2706	2706	19 of subsection (d-15); and beginning on July 6, 2017 (the
2707	2707	20 effective date of Public Act 100-23), age 65 with respect to
2708	2708	21 service under Article 8 or Article 11 for eligible persons
2709	2709	22 who: (i) are subject to subsection (c-5) of this Section; or
2710	2710	23 (ii) made the election under item (i) of subsection (d-10) of
2711	2711	24 this Section) or the first anniversary of the annuity start
2712	2712	25 date, whichever is later. Each annual increase shall be
2713	2713	26 calculated at 3% or one-half the annual unadjusted percentage
2714	2714
2715	2715
2716	2716
2717	2717
2718	2718
2719	2719	SB3073 - 74 - LRB103 37686 RPS 67813 b
2720	2720
2721	2721
2722	2722	SB3073- 75 -LRB103 37686 RPS 67813 b SB3073 - 75 - LRB103 37686 RPS 67813 b
2723	2723	SB3073 - 75 - LRB103 37686 RPS 67813 b
2724	2724	1 increase (but not less than zero) in the consumer price
2725	2725	2 index-u for the 12 months ending with the September preceding
2726	2726	3 each November 1, whichever is less, of the originally granted
2727	2727	4 retirement annuity. If the annual unadjusted percentage change
2728	2728	5 in the consumer price index-u for the 12 months ending with the
2729	2729	6 September preceding each November 1 is zero or there is a
2730	2730	7 decrease, then the annuity shall not be increased.
2731	2731	8 For the purposes of Section 1-103.1 of this Code, the
2732	2732	9 changes made to this Section by Public Act 102-263 are
2733	2733	10 applicable without regard to whether the employee was in
2734	2734	11 active service on or after August 6, 2021 (the effective date
2735	2735	12 of Public Act 102-263).
2736	2736	13 For the purposes of Section 1-103.1 of this Code, the
2737	2737	14 changes made to this Section by Public Act 100-23 are
2738	2738	15 applicable without regard to whether the employee was in
2739	2739	16 active service on or after July 6, 2017 (the effective date of
2740	2740	17 Public Act 100-23).
2741	2741	18 (f) The initial survivor's or widow's annuity of an
2742	2742	19 otherwise eligible survivor or widow of a retired member or
2743	2743	20 participant who first became a member or participant on or
2744	2744	21 after January 1, 2011 shall be in the amount of 66 2/3% of the
2745	2745	22 retired member's or participant's retirement annuity at the
2746	2746	23 date of death. In the case of the death of a member or
2747	2747	24 participant who has not retired and who first became a member
2748	2748	25 or participant on or after January 1, 2011, eligibility for a
2749	2749	26 survivor's or widow's annuity shall be determined by the
2750	2750
2751	2751
2752	2752
2753	2753
2754	2754
2755	2755	SB3073 - 75 - LRB103 37686 RPS 67813 b
2756	2756
2757	2757
2758	2758	SB3073- 76 -LRB103 37686 RPS 67813 b SB3073 - 76 - LRB103 37686 RPS 67813 b
2759	2759	SB3073 - 76 - LRB103 37686 RPS 67813 b
2760	2760	1 applicable Article of this Code. The initial benefit shall be
2761	2761	2 66 2/3% of the earned annuity without a reduction due to age. A
2762	2762	3 child's annuity of an otherwise eligible child shall be in the
2763	2763	4 amount prescribed under each Article if applicable. Any
2764	2764	5 survivor's or widow's annuity shall be increased (1) on each
2765	2765	6 January 1 occurring on or after the commencement of the
2766	2766	7 annuity if the deceased member died while receiving a
2767	2767	8 retirement annuity or (2) in other cases, on each January 1
2768	2768	9 occurring after the first anniversary of the commencement of
2769	2769	10 the annuity. Each annual increase shall be calculated at 3% or
2770	2770	11 one-half the annual unadjusted percentage increase (but not
2771	2771	12 less than zero) in the consumer price index-u for the 12 months
2772	2772	13 ending with the September preceding each November 1, whichever
2773	2773	14 is less, of the originally granted survivor's annuity. If the
2774	2774	15 annual unadjusted percentage change in the consumer price
2775	2775	16 index-u for the 12 months ending with the September preceding
2776	2776	17 each November 1 is zero or there is a decrease, then the
2777	2777	18 annuity shall not be increased.
2778	2778	19 (g) The benefits in Section 14-110 apply only if the
2779	2779	20 person is a State policeman, a fire fighter in the fire
2780	2780	21 protection service of a department, a conservation police
2781	2781	22 officer, an investigator for the Secretary of State, an
2782	2782	23 investigator for the Office of the Attorney General, an arson
2783	2783	24 investigator, a Commerce Commission police officer,
2784	2784	25 investigator for the Department of Revenue or the Illinois
2785	2785	26 Gaming Board, a security employee of the Department of
2786	2786
2787	2787
2788	2788
2789	2789
2790	2790
2791	2791	SB3073 - 76 - LRB103 37686 RPS 67813 b
2792	2792
2793	2793
2794	2794	SB3073- 77 -LRB103 37686 RPS 67813 b SB3073 - 77 - LRB103 37686 RPS 67813 b
2795	2795	SB3073 - 77 - LRB103 37686 RPS 67813 b
2796	2796	1 Corrections or the Department of Juvenile Justice, or a
2797	2797	2 security employee of the Department of Innovation and
2798	2798	3 Technology, as those terms are defined in subsection (b) and
2799	2799	4 subsection (c) of Section 14-110. A person who meets the
2800	2800	5 requirements of this Section is entitled to an annuity
2801	2801	6 calculated under the provisions of Section 14-110, in lieu of
2802	2802	7 the regular or minimum retirement annuity, only if the person
2803	2803	8 has withdrawn from service with not less than 20 years of
2804	2804	9 eligible creditable service and has attained age 60,
2805	2805	10 regardless of whether the attainment of age 60 occurs while
2806	2806	11 the person is still in service.
2807	2807	12 (h) If a person who first becomes a member or a participant
2808	2808	13 of a retirement system or pension fund subject to this Section
2809	2809	14 on or after January 1, 2011 is receiving a retirement annuity
2810	2810	15 or retirement pension under that system or fund and becomes a
2811	2811	16 member or participant under any other system or fund created
2812	2812	17 by this Code and is employed on a full-time basis, except for
2813	2813	18 those members or participants exempted from the provisions of
2814	2814	19 this Section under subsection (a) of this Section, then the
2815	2815	20 person's retirement annuity or retirement pension under that
2816	2816	21 system or fund shall be suspended during that employment. Upon
2817	2817	22 termination of that employment, the person's retirement
2818	2818	23 annuity or retirement pension payments shall resume and be
2819	2819	24 recalculated if recalculation is provided for under the
2820	2820	25 applicable Article of this Code.
2821	2821	26 If a person who first becomes a member of a retirement
2822	2822
2823	2823
2824	2824
2825	2825
2826	2826
2827	2827	SB3073 - 77 - LRB103 37686 RPS 67813 b
2828	2828
2829	2829
2830	2830	SB3073- 78 -LRB103 37686 RPS 67813 b SB3073 - 78 - LRB103 37686 RPS 67813 b
2831	2831	SB3073 - 78 - LRB103 37686 RPS 67813 b
2832	2832	1 system or pension fund subject to this Section on or after
2833	2833	2 January 1, 2012 and is receiving a retirement annuity or
2834	2834	3 retirement pension under that system or fund and accepts on a
2835	2835	4 contractual basis a position to provide services to a
2836	2836	5 governmental entity from which he or she has retired, then
2837	2837	6 that person's annuity or retirement pension earned as an
2838	2838	7 active employee of the employer shall be suspended during that
2839	2839	8 contractual service. A person receiving an annuity or
2840	2840	9 retirement pension under this Code shall notify the pension
2841	2841	10 fund or retirement system from which he or she is receiving an
2842	2842	11 annuity or retirement pension, as well as his or her
2843	2843	12 contractual employer, of his or her retirement status before
2844	2844	13 accepting contractual employment. A person who fails to submit
2845	2845	14 such notification shall be guilty of a Class A misdemeanor and
2846	2846	15 required to pay a fine of $1,000. Upon termination of that
2847	2847	16 contractual employment, the person's retirement annuity or
2848	2848	17 retirement pension payments shall resume and, if appropriate,
2849	2849	18 be recalculated under the applicable provisions of this Code.
2850	2850	19 (i) (Blank).
2851	2851	20 (j) In the case of a conflict between the provisions of
2852	2852	21 this Section and any other provision of this Code, the
2853	2853	22 provisions of this Section shall control.
2854	2854	23 (Source: P.A. 102-16, eff. 6-17-21; 102-210, eff. 1-1-22;
2855	2855	24 102-263, eff. 8-6-21; 102-956, eff. 5-27-22; 103-529, eff.
2856	2856	25 8-11-23.)
2857	2857
2858	2858
2859	2859
2860	2860
2861	2861
2862	2862	SB3073 - 78 - LRB103 37686 RPS 67813 b
2863	2863
2864	2864
2865	2865	SB3073- 79 -LRB103 37686 RPS 67813 b SB3073 - 79 - LRB103 37686 RPS 67813 b
2866	2866	SB3073 - 79 - LRB103 37686 RPS 67813 b
2867	2867	1 (40 ILCS 5/1-161)
2868	2868	2 Sec. 1-161. Optional benefits for certain Tier 2 members
2869	2869	3 under Articles 14, 15, and 16.
2870	2870	4 (a) Notwithstanding any other provision of this Code to
2871	2871	5 the contrary, the provisions of this Section apply to a person
2872	2872	6 who first becomes a member or a participant under Article 14,
2873	2873	7 15, or 16 on or after the implementation date under this
2874	2874	8 Section for the applicable Article and who does not make the
2875	2875	9 election under subsection (b) or (c), whichever applies. The
2876	2876	10 provisions of this Section also apply to a person who makes the
2877	2877	11 election under subsection (c-5). However, the provisions of
2878	2878	12 this Section do not apply to any participant in a self-managed
2879	2879	13 plan or a defined contribution plan established under Section
2880	2880	14 14-155.5, nor to a covered employee under Article 14.
2881	2881	15 As used in this Section and Section 1-160, the
2882	2882	16 "implementation date" under this Section means the earliest
2883	2883	17 date upon which the board of a retirement system authorizes
2884	2884	18 members of that system to begin participating in accordance
2885	2885	19 with this Section, as determined by the board of that
2886	2886	20 retirement system. Each of the retirement systems subject to
2887	2887	21 this Section shall endeavor to make such participation
2888	2888	22 available as soon as possible after the effective date of this
2889	2889	23 Section and shall establish an implementation date by board
2890	2890	24 resolution.
2891	2891	25 (b) In lieu of the benefits provided under this Section, a
2892	2892	26 member or participant, except for a participant under Article
2893	2893
2894	2894
2895	2895
2896	2896
2897	2897
2898	2898	SB3073 - 79 - LRB103 37686 RPS 67813 b
2899	2899
2900	2900
2901	2901	SB3073- 80 -LRB103 37686 RPS 67813 b SB3073 - 80 - LRB103 37686 RPS 67813 b
2902	2902	SB3073 - 80 - LRB103 37686 RPS 67813 b
2903	2903	1 15, may irrevocably elect the benefits under Section 1-160 and
2904	2904	2 the benefits otherwise applicable to that member or
2905	2905	3 participant. The election must be made within 30 days after
2906	2906	4 becoming a member or participant. Each retirement system shall
2907	2907	5 establish procedures for making this election.
2908	2908	6 (c) A participant under Article 15 may irrevocably elect
2909	2909	7 the benefits otherwise provided to a Tier 2 member under
2910	2910	8 Article 15. The election must be made within 30 days after
2911	2911	9 becoming a member. The retirement system under Article 15
2912	2912	10 shall establish procedures for making this election.
2913	2913	11 (c-5) A non-covered participant under Article 14 to whom
2914	2914	12 Section 1-160 applies, a Tier 2 member under Article 15, or a
2915	2915	13 participant under Article 16 to whom Section 1-160 applies may
2916	2916	14 irrevocably elect to receive the benefits under this Section
2917	2917	15 in lieu of the benefits under Section 1-160 or the benefits
2918	2918	16 otherwise available to a Tier 2 member under Article 15,
2919	2919	17 whichever is applicable. Each retirement System shall
2920	2920	18 establish procedures for making this election.
2921	2921	19 (d) "Final average salary" means the average monthly (or
2922	2922	20 annual) salary obtained by dividing the total salary or
2923	2923	21 earnings calculated under the Article applicable to the member
2924	2924	22 or participant during the last 120 months (or 10 years) of
2925	2925	23 service in which the total salary or earnings calculated under
2926	2926	24 the applicable Article was the highest by the number of months
2927	2927	25 (or years) of service in that period. For the purposes of a
2928	2928	26 person to whom this Section applies, in this Code, "final
2929	2929
2930	2930
2931	2931
2932	2932
2933	2933
2934	2934	SB3073 - 80 - LRB103 37686 RPS 67813 b
2935	2935
2936	2936
2937	2937	SB3073- 81 -LRB103 37686 RPS 67813 b SB3073 - 81 - LRB103 37686 RPS 67813 b
2938	2938	SB3073 - 81 - LRB103 37686 RPS 67813 b
2939	2939	1 average salary" shall be substituted for "final average
2940	2940	2 compensation" in Article 14.
2941	2941	3 (e) Beginning on the implementation date, for all purposes
2942	2942	4 under this Code (including without limitation the calculation
2943	2943	5 of benefits and employee contributions), the annual earnings,
2944	2944	6 salary, compensation, or wages (based on the plan year) of a
2945	2945	7 member or participant to whom this Section applies shall not
2946	2946	8 at any time exceed the federal Social Security Wage Base then
2947	2947	9 in effect.
2948	2948	10 (f) A member or participant is entitled to a retirement
2949	2949	11 annuity upon written application if he or she has attained the
2950	2950	12 normal retirement age determined by the Social Security
2951	2951	13 Administration for that member or participant's year of birth,
2952	2952	14 but no earlier than 67 years of age, and has at least 10 years
2953	2953	15 of service credit and is otherwise eligible under the
2954	2954	16 requirements of the applicable Article.
2955	2955	17 (g) The amount of the retirement annuity to which a member
2956	2956	18 or participant is entitled shall be computed by multiplying
2957	2957	19 1.25% for each year of service credit by his or her final
2958	2958	20 average salary.
2959	2959	21 (h) Any retirement annuity or supplemental annuity shall
2960	2960	22 be subject to annual increases on the first anniversary of the
2961	2961	23 annuity start date. Each annual increase shall be one-half the
2962	2962	24 annual unadjusted percentage increase (but not less than zero)
2963	2963	25 in the consumer price index-w for the 12 months ending with the
2964	2964	26 September preceding each November 1 of the originally granted
2965	2965
2966	2966
2967	2967
2968	2968
2969	2969
2970	2970	SB3073 - 81 - LRB103 37686 RPS 67813 b
2971	2971
2972	2972
2973	2973	SB3073- 82 -LRB103 37686 RPS 67813 b SB3073 - 82 - LRB103 37686 RPS 67813 b
2974	2974	SB3073 - 82 - LRB103 37686 RPS 67813 b
2975	2975	1 retirement annuity. If the annual unadjusted percentage change
2976	2976	2 in the consumer price index-w for the 12 months ending with the
2977	2977	3 September preceding each November 1 is zero or there is a
2978	2978	4 decrease, then the annuity shall not be increased.
2979	2979	5 For the purposes of this Section, "consumer price index-w"
2980	2980	6 means the index published by the Bureau of Labor Statistics of
2981	2981	7 the United States Department of Labor that measures the
2982	2982	8 average change in prices of goods and services purchased by
2983	2983	9 Urban Wage Earners and Clerical Workers, United States city
2984	2984	10 average, all items, 1982-84 = 100. The new amount resulting
2985	2985	11 from each annual adjustment shall be determined by the Public
2986	2986	12 Pension Division of the Department of Insurance and made
2987	2987	13 available to the boards of the retirement systems and pension
2988	2988	14 funds by November 1 of each year.
2989	2989	15 (i) The initial survivor's or widow's annuity of an
2990	2990	16 otherwise eligible survivor or widow of a retired member or
2991	2991	17 participant to whom this Section applies shall be in the
2992	2992	18 amount of 66 2/3% of the retired member's or participant's
2993	2993	19 retirement annuity at the date of death. In the case of the
2994	2994	20 death of a member or participant who has not retired and to
2995	2995	21 whom this Section applies, eligibility for a survivor's or
2996	2996	22 widow's annuity shall be determined by the applicable Article
2997	2997	23 of this Code. The benefit shall be 66 2/3% of the earned
2998	2998	24 annuity without a reduction due to age. A child's annuity of an
2999	2999	25 otherwise eligible child shall be in the amount prescribed
3000	3000	26 under each Article if applicable.
3001	3001
3002	3002
3003	3003
3004	3004
3005	3005
3006	3006	SB3073 - 82 - LRB103 37686 RPS 67813 b
3007	3007
3008	3008
3009	3009	SB3073- 83 -LRB103 37686 RPS 67813 b SB3073 - 83 - LRB103 37686 RPS 67813 b
3010	3010	SB3073 - 83 - LRB103 37686 RPS 67813 b
3011	3011	1 (j) In lieu of any other employee contributions, except
3012	3012	2 for the contribution to the defined contribution plan under
3013	3013	3 subsection (k) of this Section, each employee shall contribute
3014	3014	4 6.2% of his her or salary to the retirement system. However,
3015	3015	5 the employee contribution under this subsection shall not
3016	3016	6 exceed the amount of the total normal cost of the benefits for
3017	3017	7 all members making contributions under this Section (except
3018	3018	8 for the defined contribution plan under subsection (k) of this
3019	3019	9 Section), expressed as a percentage of payroll and certified
3020	3020	10 on or before January 15 of each year by the board of trustees
3021	3021	11 of the retirement system. If the board of trustees of the
3022	3022	12 retirement system certifies that the 6.2% employee
3023	3023	13 contribution rate exceeds the normal cost of the benefits
3024	3024	14 under this Section (except for the defined contribution plan
3025	3025	15 under subsection (k) of this Section), then on or before
3026	3026	16 December 1 of that year, the board of trustees shall certify
3027	3027	17 the amount of the normal cost of the benefits under this
3028	3028	18 Section (except for the defined contribution plan under
3029	3029	19 subsection (k) of this Section), expressed as a percentage of
3030	3030	20 payroll, to the State Actuary and the Commission on Government
3031	3031	21 Forecasting and Accountability, and the employee contribution
3032	3032	22 under this subsection shall be reduced to that amount
3033	3033	23 beginning July 1 of that year. Thereafter, if the normal cost
3034	3034	24 of the benefits under this Section (except for the defined
3035	3035	25 contribution plan under subsection (k) of this Section),
3036	3036	26 expressed as a percentage of payroll and certified on or
3037	3037
3038	3038
3039	3039
3040	3040
3041	3041
3042	3042	SB3073 - 83 - LRB103 37686 RPS 67813 b
3043	3043
3044	3044
3045	3045	SB3073- 84 -LRB103 37686 RPS 67813 b SB3073 - 84 - LRB103 37686 RPS 67813 b
3046	3046	SB3073 - 84 - LRB103 37686 RPS 67813 b
3047	3047	1 before January 1 of each year by the board of trustees of the
3048	3048	2 retirement system, exceeds 6.2% of salary, then on or before
3049	3049	3 January 15 of that year, the board of trustees shall certify
3050	3050	4 the normal cost to the State Actuary and the Commission on
3051	3051	5 Government Forecasting and Accountability, and the employee
3052	3052	6 contributions shall revert back to 6.2% of salary beginning
3053	3053	7 January 1 of the following year.
3054	3054	8 (k) In accordance with each retirement system's
3055	3055	9 implementation date, each retirement system under Article 14,
3056	3056	10 15, or 16 shall prepare and implement a defined contribution
3057	3057	11 plan for members or participants who are subject to this
3058	3058	12 Section. The defined contribution plan developed under this
3059	3059	13 subsection shall be a plan that aggregates employer and
3060	3060	14 employee contributions in individual participant accounts
3061	3061	15 which, after meeting any other requirements, are used for
3062	3062	16 payouts after retirement in accordance with this subsection
3063	3063	17 and any other applicable laws.
3064	3064	18 (1) Each member or participant shall contribute a
3065	3065	19 minimum of 4% of his or her salary to the defined
3066	3066	20 contribution plan.
3067	3067	21 (2) For each participant in the defined contribution
3068	3068	22 plan who has been employed with the same employer for at
3069	3069	23 least one year, employer contributions shall be paid into
3070	3070	24 that participant's accounts at a rate expressed as a
3071	3071	25 percentage of salary. This rate may be set for individual
3072	3072	26 employees, but shall be no higher than 6% of salary and
3073	3073
3074	3074
3075	3075
3076	3076
3077	3077
3078	3078	SB3073 - 84 - LRB103 37686 RPS 67813 b
3079	3079
3080	3080
3081	3081	SB3073- 85 -LRB103 37686 RPS 67813 b SB3073 - 85 - LRB103 37686 RPS 67813 b
3082	3082	SB3073 - 85 - LRB103 37686 RPS 67813 b
3083	3083	1 shall be no lower than 2% of salary.
3084	3084	2 (3) Employer contributions shall vest when those
3085	3085	3 contributions are paid into a member's or participant's
3086	3086	4 account.
3087	3087	5 (4) The defined contribution plan shall provide a
3088	3088	6 variety of options for investments. These options shall
3089	3089	7 include investments handled by the Illinois State Board of
3090	3090	8 Investment as well as private sector investment options.
3091	3091	9 (5) The defined contribution plan shall provide a
3092	3092	10 variety of options for payouts to retirees and their
3093	3093	11 survivors.
3094	3094	12 (6) To the extent authorized under federal law and as
3095	3095	13 authorized by the retirement system, the defined
3096	3096	14 contribution plan shall allow former participants in the
3097	3097	15 plan to transfer or roll over employee and employer
3098	3098	16 contributions, and the earnings thereon, into other
3099	3099	17 qualified retirement plans.
3100	3100	18 (7) Each retirement system shall reduce the employee
3101	3101	19 contributions credited to the member's defined
3102	3102	20 contribution plan account by an amount determined by that
3103	3103	21 retirement system to cover the cost of offering the
3104	3104	22 benefits under this subsection and any applicable
3105	3105	23 administrative fees.
3106	3106	24 (8) No person shall begin participating in the defined
3107	3107	25 contribution plan until it has attained qualified plan
3108	3108	26 status and received all necessary approvals from the U.S.
3109	3109
3110	3110
3111	3111
3112	3112
3113	3113
3114	3114	SB3073 - 85 - LRB103 37686 RPS 67813 b
3115	3115
3116	3116
3117	3117	SB3073- 86 -LRB103 37686 RPS 67813 b SB3073 - 86 - LRB103 37686 RPS 67813 b
3118	3118	SB3073 - 86 - LRB103 37686 RPS 67813 b
3119	3119	1 Internal Revenue Service.
3120	3120	2 (l) In the case of a conflict between the provisions of
3121	3121	3 this Section and any other provision of this Code, the
3122	3122	4 provisions of this Section shall control.
3123	3123	5 (Source: P.A. 100-23, eff. 7-6-17.)
3124	3124	6 (40 ILCS 5/14-103.05) (from Ch. 108 1/2, par. 14-103.05)
3125	3125	7 Sec. 14-103.05. Employee.
3126	3126	8 (a) Except as provided in subsection (e), any Any person
3127	3127	9 employed by a Department who receives salary for personal
3128	3128	10 services rendered to the Department on a warrant issued
3129	3129	11 pursuant to a payroll voucher certified by a Department and
3130	3130	12 drawn by the State Comptroller upon the State Treasurer,
3131	3131	13 including an elected official described in subparagraph (d) of
3132	3132	14 Section 14-104, shall become an employee for purpose of
3133	3133	15 membership in the Retirement System on the first day of such
3134	3134	16 employment.
3135	3135	17 A person entering service on or after January 1, 1972 and
3136	3136	18 prior to January 1, 1984 shall become a member as a condition
3137	3137	19 of employment and shall begin making contributions as of the
3138	3138	20 first day of employment.
3139	3139	21 A person entering service on or after January 1, 1984
3140	3140	22 shall, upon completion of 6 months of continuous service which
3141	3141	23 is not interrupted by a break of more than 2 months, become a
3142	3142	24 member as a condition of employment. Contributions shall begin
3143	3143	25 the first of the month after completion of the qualifying
3144	3144
3145	3145
3146	3146
3147	3147
3148	3148
3149	3149	SB3073 - 86 - LRB103 37686 RPS 67813 b
3150	3150
3151	3151
3152	3152	SB3073- 87 -LRB103 37686 RPS 67813 b SB3073 - 87 - LRB103 37686 RPS 67813 b
3153	3153	SB3073 - 87 - LRB103 37686 RPS 67813 b
3154	3154	1 period.
3155	3155	2 A person employed by the Chicago Metropolitan Agency for
3156	3156	3 Planning on the effective date of this amendatory Act of the
3157	3157	4 95th General Assembly who was a member of this System as an
3158	3158	5 employee of the Chicago Area Transportation Study and makes an
3159	3159	6 election under Section 14-104.13 to participate in this System
3160	3160	7 for his or her employment with the Chicago Metropolitan Agency
3161	3161	8 for Planning.
3162	3162	9 The qualifying period of 6 months of service is not
3163	3163	10 applicable to: (1) a person who has been granted credit for
3164	3164	11 service in a position covered by the State Universities
3165	3165	12 Retirement System, the Teachers' Retirement System of the
3166	3166	13 State of Illinois, the General Assembly Retirement System, or
3167	3167	14 the Judges Retirement System of Illinois unless that service
3168	3168	15 has been forfeited under the laws of those systems; (2) a
3169	3169	16 person entering service on or after July 1, 1991 in a
3170	3170	17 noncovered position; (3) a person to whom Section 14-108.2a or
3171	3171	18 14-108.2b applies; or (4) a person to whom subsection (a-5) of
3172	3172	19 this Section applies.
3173	3173	20 (a-5) Except as provided in subsection (e), a A person
3174	3174	21 entering service on or after December 1, 2010 and before the
3175	3175	22 effective date of this amendatory Act of the 103rd General
3176	3176	23 Assembly shall become a member as a condition of employment
3177	3177	24 and shall begin making contributions as of the first day of
3178	3178	25 employment. A person serving in the qualifying period on
3179	3179	26 December 1, 2010 will become a member on December 1, 2010 and
3180	3180
3181	3181
3182	3182
3183	3183
3184	3184
3185	3185	SB3073 - 87 - LRB103 37686 RPS 67813 b
3186	3186
3187	3187
3188	3188	SB3073- 88 -LRB103 37686 RPS 67813 b SB3073 - 88 - LRB103 37686 RPS 67813 b
3189	3189	SB3073 - 88 - LRB103 37686 RPS 67813 b
3190	3190	1 shall begin making contributions as of December 1, 2010.
3191	3191	2 (b) The term "employee" does not include the following:
3192	3192	3 (1) members of the State Legislature, and persons
3193	3193	4 electing to become members of the General Assembly
3194	3194	5 Retirement System pursuant to Section 2-105;
3195	3195	6 (2) incumbents of offices normally filled by vote of
3196	3196	7 the people;
3197	3197	8 (3) except as otherwise provided in this Section, any
3198	3198	9 person appointed by the Governor with the advice and
3199	3199	10 consent of the Senate unless that person elects to
3200	3200	11 participate in this system;
3201	3201	12 (3.1) any person serving as a commissioner of an
3202	3202	13 ethics commission created under the State Officials and
3203	3203	14 Employees Ethics Act unless that person elects to
3204	3204	15 participate in this system with respect to that service as
3205	3205	16 a commissioner;
3206	3206	17 (3.2) any person serving as a part-time employee in
3207	3207	18 any of the following positions: Legislative Inspector
3208	3208	19 General, Special Legislative Inspector General, employee
3209	3209	20 of the Office of the Legislative Inspector General,
3210	3210	21 Executive Director of the Legislative Ethics Commission,
3211	3211	22 or staff of the Legislative Ethics Commission, regardless
3212	3212	23 of whether he or she is in active service on or after July
3213	3213	24 8, 2004 (the effective date of Public Act 93-685), unless
3214	3214	25 that person elects to participate in this System with
3215	3215	26 respect to that service; in this item (3.2), a "part-time
3216	3216
3217	3217
3218	3218
3219	3219
3220	3220
3221	3221	SB3073 - 88 - LRB103 37686 RPS 67813 b
3222	3222
3223	3223
3224	3224	SB3073- 89 -LRB103 37686 RPS 67813 b SB3073 - 89 - LRB103 37686 RPS 67813 b
3225	3225	SB3073 - 89 - LRB103 37686 RPS 67813 b
3226	3226	1 employee" is a person who is not required to work at least
3227	3227	2 35 hours per week;
3228	3228	3 (3.3) any person who has made an election under
3229	3229	4 Section 1-123 and who is serving either as legal counsel
3230	3230	5 in the Office of the Governor or as Chief Deputy Attorney
3231	3231	6 General;
3232	3232	7 (4) except as provided in Section 14-108.2 or
3233	3233	8 14-108.2c, any person who is covered or eligible to be
3234	3234	9 covered by the Teachers' Retirement System of the State of
3235	3235	10 Illinois, the State Universities Retirement System, or the
3236	3236	11 Judges Retirement System of Illinois;
3237	3237	12 (5) an employee of a municipality or any other
3238	3238	13 political subdivision of the State;
3239	3239	14 (6) any person who becomes an employee after June 30,
3240	3240	15 1979 as a public service employment program participant
3241	3241	16 under the Federal Comprehensive Employment and Training
3242	3242	17 Act and whose wages or fringe benefits are paid in whole or
3243	3243	18 in part by funds provided under such Act;
3244	3244	19 (7) enrollees of the Illinois Young Adult Conservation
3245	3245	20 Corps program, administered by the Department of Natural
3246	3246	21 Resources, authorized grantee pursuant to Title VIII of
3247	3247	22 the "Comprehensive Employment and Training Act of 1973",
3248	3248	23 29 USC 993, as now or hereafter amended;
3249	3249	24 (8) enrollees and temporary staff of programs
3250	3250	25 administered by the Department of Natural Resources under
3251	3251	26 the Youth Conservation Corps Act of 1970;
3252	3252
3253	3253
3254	3254
3255	3255
3256	3256
3257	3257	SB3073 - 89 - LRB103 37686 RPS 67813 b
3258	3258
3259	3259
3260	3260	SB3073- 90 -LRB103 37686 RPS 67813 b SB3073 - 90 - LRB103 37686 RPS 67813 b
3261	3261	SB3073 - 90 - LRB103 37686 RPS 67813 b
3262	3262	1 (9) any person who is a member of any professional
3263	3263	2 licensing or disciplinary board created under an Act
3264	3264	3 administered by the Department of Professional Regulation
3265	3265	4 or a successor agency or created or re-created after the
3266	3266	5 effective date of this amendatory Act of 1997, and who
3267	3267	6 receives per diem compensation rather than a salary,
3268	3268	7 notwithstanding that such per diem compensation is paid by
3269	3269	8 warrant issued pursuant to a payroll voucher; such persons
3270	3270	9 have never been included in the membership of this System,
3271	3271	10 and this amendatory Act of 1987 (P.A. 84-1472) is not
3272	3272	11 intended to effect any change in the status of such
3273	3273	12 persons;
3274	3274	13 (10) any person who is a member of the Illinois Health
3275	3275	14 Care Cost Containment Council, and receives per diem
3276	3276	15 compensation rather than a salary, notwithstanding that
3277	3277	16 such per diem compensation is paid by warrant issued
3278	3278	17 pursuant to a payroll voucher; such persons have never
3279	3279	18 been included in the membership of this System, and this
3280	3280	19 amendatory Act of 1987 is not intended to effect any
3281	3281	20 change in the status of such persons;
3282	3282	21 (11) any person who is a member of the Oil and Gas
3283	3283	22 Board created by Section 1.2 of the Illinois Oil and Gas
3284	3284	23 Act, and receives per diem compensation rather than a
3285	3285	24 salary, notwithstanding that such per diem compensation is
3286	3286	25 paid by warrant issued pursuant to a payroll voucher;
3287	3287	26 (12) a person employed by the State Board of Higher
3288	3288
3289	3289
3290	3290
3291	3291
3292	3292
3293	3293	SB3073 - 90 - LRB103 37686 RPS 67813 b
3294	3294
3295	3295
3296	3296	SB3073- 91 -LRB103 37686 RPS 67813 b SB3073 - 91 - LRB103 37686 RPS 67813 b
3297	3297	SB3073 - 91 - LRB103 37686 RPS 67813 b
3298	3298	1 Education in a position with the Illinois Century Network
3299	3299	2 as of June 30, 2004, who remains continuously employed
3300	3300	3 after that date by the Department of Central Management
3301	3301	4 Services in a position with the Illinois Century Network
3302	3302	5 and participates in the Article 15 system with respect to
3303	3303	6 that employment;
3304	3304	7 (13) any person who first becomes a member of the
3305	3305	8 Civil Service Commission on or after January 1, 2012;
3306	3306	9 (14) any person, other than the Director of Employment
3307	3307	10 Security, who first becomes a member of the Board of
3308	3308	11 Review of the Department of Employment Security on or
3309	3309	12 after January 1, 2012;
3310	3310	13 (15) any person who first becomes a member of the
3311	3311	14 Civil Service Commission on or after January 1, 2012;
3312	3312	15 (16) any person who first becomes a member of the
3313	3313	16 Illinois Liquor Control Commission on or after January 1,
3314	3314	17 2012;
3315	3315	18 (17) any person who first becomes a member of the
3316	3316	19 Secretary of State Merit Commission on or after January 1,
3317	3317	20 2012;
3318	3318	21 (18) any person who first becomes a member of the
3319	3319	22 Human Rights Commission on or after January 1, 2012 unless
3320	3320	23 he or she is eligible to participate in accordance with
3321	3321	24 subsection (d) of this Section;
3322	3322	25 (19) any person who first becomes a member of the
3323	3323	26 State Mining Board on or after January 1, 2012;
3324	3324
3325	3325
3326	3326
3327	3327
3328	3328
3329	3329	SB3073 - 91 - LRB103 37686 RPS 67813 b
3330	3330
3331	3331
3332	3332	SB3073- 92 -LRB103 37686 RPS 67813 b SB3073 - 92 - LRB103 37686 RPS 67813 b
3333	3333	SB3073 - 92 - LRB103 37686 RPS 67813 b
3334	3334	1 (20) any person who first becomes a member of the
3335	3335	2 Property Tax Appeal Board on or after January 1, 2012;
3336	3336	3 (21) any person who first becomes a member of the
3337	3337	4 Illinois Racing Board on or after January 1, 2012;
3338	3338	5 (22) any person who first becomes a member of the
3339	3339	6 Illinois State Police Merit Board on or after January 1,
3340	3340	7 2012;
3341	3341	8 (23) any person who first becomes a member of the
3342	3342	9 Illinois State Toll Highway Authority on or after January
3343	3343	10 1, 2012; or
3344	3344	11 (24) any person who first becomes a member of the
3345	3345	12 Illinois State Board of Elections on or after January 1,
3346	3346	13 2012.
3347	3347	14 (c) An individual who represents or is employed as an
3348	3348	15 officer or employee of a statewide labor organization that
3349	3349	16 represents members of this System may participate in the
3350	3350	17 System and shall be deemed an employee, provided that (1) the
3351	3351	18 individual has previously earned creditable service under this
3352	3352	19 Article, (2) the individual files with the System an
3353	3353	20 irrevocable election to become a participant within 6 months
3354	3354	21 after the effective date of this amendatory Act of the 94th
3355	3355	22 General Assembly, and (3) the individual does not receive
3356	3356	23 credit for that employment under any other provisions of this
3357	3357	24 Code. An employee under this subsection (c) is responsible for
3358	3358	25 paying to the System both (i) employee contributions based on
3359	3359	26 the actual compensation received for service with the labor
3360	3360
3361	3361
3362	3362
3363	3363
3364	3364
3365	3365	SB3073 - 92 - LRB103 37686 RPS 67813 b
3366	3366
3367	3367
3368	3368	SB3073- 93 -LRB103 37686 RPS 67813 b SB3073 - 93 - LRB103 37686 RPS 67813 b
3369	3369	SB3073 - 93 - LRB103 37686 RPS 67813 b
3370	3370	1 organization and (ii) employer contributions based on the
3371	3371	2 percentage of payroll certified by the board; all or any part
3372	3372	3 of these contributions may be paid on the employee's behalf or
3373	3373	4 picked up for tax purposes (if authorized under federal law)
3374	3374	5 by the labor organization.
3375	3375	6 A person who is an employee as defined in this subsection
3376	3376	7 (c) may establish service credit for similar employment prior
3377	3377	8 to becoming an employee under this subsection by paying to the
3378	3378	9 System for that employment the contributions specified in this
3379	3379	10 subsection, plus interest at the effective rate from the date
3380	3380	11 of service to the date of payment. However, credit shall not be
3381	3381	12 granted under this subsection (c) for any such prior
3382	3382	13 employment for which the applicant received credit under any
3383	3383	14 other provision of this Code or during which the applicant was
3384	3384	15 on a leave of absence.
3385	3385	16 (d) A person appointed as a member of the Human Rights
3386	3386	17 Commission on or after June 1, 2019 may elect to participate in
3387	3387	18 the System and shall be deemed an employee. Service and
3388	3388	19 contributions shall begin on the first payroll period
3389	3389	20 immediately following the employee's election to participate
3390	3390	21 in the System.
3391	3391	22 A person who is an employee as described in this
3392	3392	23 subsection (d) may establish service credit for employment as
3393	3393	24 a Human Rights Commissioner that occurred on or after June 1,
3394	3394	25 2019 and before establishing service under this subsection by
3395	3395	26 paying to the System for that employment the contributions
3396	3396
3397	3397
3398	3398
3399	3399
3400	3400
3401	3401	SB3073 - 93 - LRB103 37686 RPS 67813 b
3402	3402
3403	3403
3404	3404	SB3073- 94 -LRB103 37686 RPS 67813 b SB3073 - 94 - LRB103 37686 RPS 67813 b
3405	3405	SB3073 - 94 - LRB103 37686 RPS 67813 b
3406	3406	1 specified in paragraph (1) of subsection (a) of Section
3407	3407	2 14-133, plus regular interest from the date of service to the
3408	3408	3 date of payment.
3409	3409	4 (e) Notwithstanding any other provision of this Article, a
3410	3410	5 person who first becomes an employee after the effective date
3411	3411	6 of this amendatory Act of the 103rd General Assembly is not
3412	3412	7 required, as a condition of employment or otherwise, to
3413	3413	8 participate in this System. An employee may elect not to
3414	3414	9 participate in this System by notifying the System in a manner
3415	3415	10 specified by the System.
3416	3416	11 (Source: P.A. 101-10, eff. 6-5-19; 102-538, eff. 8-20-21.)
3417	3417	12 (40 ILCS 5/14-103.41)
3418	3418	13 Sec. 14-103.41. Tier 1 member; Tier 2 member; defined
3419	3419	14 contribution plan member. "Tier 1 member": A member of this
3420	3420	15 System who first became a member or participant before January
3421	3421	16 1, 2011 under any reciprocal retirement system or pension fund
3422	3422	17 established under this Code other than a retirement system or
3423	3423	18 pension fund established under Article 2, 3, 4, 5, 6, or 18 of
3424	3424	19 this Code.
3425	3425	20 In the case of a Tier 1 member who elects to participate in
3426	3426	21 the defined contribution plan under Section 14-155.5 of this
3427	3427	22 Code, that Tier 1 member shall be deemed a Tier 1 member only
3428	3428	23 with respect to service performed or established before the
3429	3429	24 effective date of that election.
3430	3430	25 "Tier 2 member": A member of this System who first becomes
3431	3431
3432	3432
3433	3433
3434	3434
3435	3435
3436	3436	SB3073 - 94 - LRB103 37686 RPS 67813 b
3437	3437
3438	3438
3439	3439	SB3073- 95 -LRB103 37686 RPS 67813 b SB3073 - 95 - LRB103 37686 RPS 67813 b
3440	3440	SB3073 - 95 - LRB103 37686 RPS 67813 b
3441	3441	1 a member under this Article on or after January 1, 2011 and who
3442	3442	2 is not a Tier 1 member.
3443	3443	3 In the case of a Tier 2 member who elects to participate in
3444	3444	4 the defined contribution plan under Section 14-155.5 of this
3445	3445	5 Code, that Tier 2 member shall be deemed a Tier 2 member only
3446	3446	6 with respect to service performed or established before the
3447	3447	7 effective date of that election.
3448	3448	8 "Defined contribution plan member": A Tier 1 or Tier 2
3449	3449	9 member who elects to participate in the defined contribution
3450	3450	10 plan under Section 14-155.5 of this Code, but only with
3451	3451	11 respect to service performed on or after the effective date of
3452	3452	12 that election.
3453	3453	13 (Source: P.A. 100-587, eff. 6-4-18.)
3454	3454	14 (40 ILCS 5/14-152.1)
3455	3455	15 Sec. 14-152.1. Application and expiration of new benefit
3456	3456	16 increases.
3457	3457	17 (a) As used in this Section, "new benefit increase" means
3458	3458	18 an increase in the amount of any benefit provided under this
3459	3459	19 Article, or an expansion of the conditions of eligibility for
3460	3460	20 any benefit under this Article, that results from an amendment
3461	3461	21 to this Code that takes effect after June 1, 2005 (the
3462	3462	22 effective date of Public Act 94-4). "New benefit increase",
3463	3463	23 however, does not include any benefit increase resulting from
3464	3464	24 the changes made to Article 1 or this Article by Public Act
3465	3465	25 96-37, Public Act 100-23, Public Act 100-587, Public Act
3466	3466
3467	3467
3468	3468
3469	3469
3470	3470
3471	3471	SB3073 - 95 - LRB103 37686 RPS 67813 b
3472	3472
3473	3473
3474	3474	SB3073- 96 -LRB103 37686 RPS 67813 b SB3073 - 96 - LRB103 37686 RPS 67813 b
3475	3475	SB3073 - 96 - LRB103 37686 RPS 67813 b
3476	3476	1 100-611, Public Act 101-10, Public Act 101-610, Public Act
3477	3477	2 102-210, Public Act 102-856, Public Act 102-956, or this
3478	3478	3 amendatory Act of the 103rd General Assembly or this
3479	3479	4 amendatory Act of the 102nd General Assembly.
3480	3480	5 (b) Notwithstanding any other provision of this Code or
3481	3481	6 any subsequent amendment to this Code, every new benefit
3482	3482	7 increase is subject to this Section and shall be deemed to be
3483	3483	8 granted only in conformance with and contingent upon
3484	3484	9 compliance with the provisions of this Section.
3485	3485	10 (c) The Public Act enacting a new benefit increase must
3486	3486	11 identify and provide for payment to the System of additional
3487	3487	12 funding at least sufficient to fund the resulting annual
3488	3488	13 increase in cost to the System as it accrues.
3489	3489	14 Every new benefit increase is contingent upon the General
3490	3490	15 Assembly providing the additional funding required under this
3491	3491	16 subsection. The Commission on Government Forecasting and
3492	3492	17 Accountability shall analyze whether adequate additional
3493	3493	18 funding has been provided for the new benefit increase and
3494	3494	19 shall report its analysis to the Public Pension Division of
3495	3495	20 the Department of Insurance. A new benefit increase created by
3496	3496	21 a Public Act that does not include the additional funding
3497	3497	22 required under this subsection is null and void. If the Public
3498	3498	23 Pension Division determines that the additional funding
3499	3499	24 provided for a new benefit increase under this subsection is
3500	3500	25 or has become inadequate, it may so certify to the Governor and
3501	3501	26 the State Comptroller and, in the absence of corrective action
3502	3502
3503	3503
3504	3504
3505	3505
3506	3506
3507	3507	SB3073 - 96 - LRB103 37686 RPS 67813 b
3508	3508
3509	3509
3510	3510	SB3073- 97 -LRB103 37686 RPS 67813 b SB3073 - 97 - LRB103 37686 RPS 67813 b
3511	3511	SB3073 - 97 - LRB103 37686 RPS 67813 b
3512	3512	1 by the General Assembly, the new benefit increase shall expire
3513	3513	2 at the end of the fiscal year in which the certification is
3514	3514	3 made.
3515	3515	4 (d) Every new benefit increase shall expire 5 years after
3516	3516	5 its effective date or on such earlier date as may be specified
3517	3517	6 in the language enacting the new benefit increase or provided
3518	3518	7 under subsection (c). This does not prevent the General
3519	3519	8 Assembly from extending or re-creating a new benefit increase
3520	3520	9 by law.
3521	3521	10 (e) Except as otherwise provided in the language creating
3522	3522	11 the new benefit increase, a new benefit increase that expires
3523	3523	12 under this Section continues to apply to persons who applied
3524	3524	13 and qualified for the affected benefit while the new benefit
3525	3525	14 increase was in effect and to the affected beneficiaries and
3526	3526	15 alternate payees of such persons, but does not apply to any
3527	3527	16 other person, including, without limitation, a person who
3528	3528	17 continues in service after the expiration date and did not
3529	3529	18 apply and qualify for the affected benefit while the new
3530	3530	19 benefit increase was in effect.
3531	3531	20 (Source: P.A. 101-10, eff. 6-5-19; 101-81, eff. 7-12-19;
3532	3532	21 101-610, eff. 1-1-20; 102-210, eff. 7-30-21; 102-856, eff.
3533	3533	22 1-1-23; 102-956, eff. 5-27-22.)
3534	3534	23 (40 ILCS 5/14-155.5 new)
3535	3535	24 Sec. 14-155.5. Defined contribution plan.
3536	3536	25 (a) As used in this Section, "defined benefit plan" means
3537	3537
3538	3538
3539	3539
3540	3540
3541	3541
3542	3542	SB3073 - 97 - LRB103 37686 RPS 67813 b
3543	3543
3544	3544
3545	3545	SB3073- 98 -LRB103 37686 RPS 67813 b SB3073 - 98 - LRB103 37686 RPS 67813 b
3546	3546	SB3073 - 98 - LRB103 37686 RPS 67813 b
3547	3547	1 the retirement plan available under this Article to Tier 1 or
3548	3548	2 Tier 2 members who have not made the election authorized under
3549	3549	3 this Section.
3550	3550	4 (b) By July 1, 2026, the System shall prepare and
3551	3551	5 implement a defined contribution plan. The defined
3552	3552	6 contribution plan developed under this Section shall be a plan
3553	3553	7 that aggregates State and employee contributions in individual
3554	3554	8 participant accounts that, after meeting any other
3555	3555	9 requirements, are used for payouts after retirement in
3556	3556	10 accordance with this Section and any other applicable laws.
3557	3557	11 (1) Participation in the defined contribution plan for
3558	3558	12 persons who elect to participate shall begin on July 1,
3559	3559	13 2026. For persons who elect to participate on or after
3560	3560	14 July 1, 2026, participation in the defined contribution
3561	3561	15 plan shall begin as soon as practical after the election
3562	3562	16 is made.
3563	3563	17 (2) A participant in the defined contribution plan
3564	3564	18 shall pay employee contributions at a rate determined by
3565	3565	19 the participant, but not less than 3% of compensation and
3566	3566	20 not more than a percentage of compensation determined by
3567	3567	21 the board in accordance with the requirements of State and
3568	3568	22 federal law.
3569	3569	23 (3) State contributions shall be paid into the
3570	3570	24 accounts of all participants in the defined contribution
3571	3571	25 plan at a uniform rate, expressed as a percentage of
3572	3572	26 compensation and determined for each year. This rate shall
3573	3573
3574	3574
3575	3575
3576	3576
3577	3577
3578	3578	SB3073 - 98 - LRB103 37686 RPS 67813 b
3579	3579
3580	3580
3581	3581	SB3073- 99 -LRB103 37686 RPS 67813 b SB3073 - 99 - LRB103 37686 RPS 67813 b
3582	3582	SB3073 - 99 - LRB103 37686 RPS 67813 b
3583	3583	1 be no higher than 7.6% of compensation and shall be no
3584	3584	2 lower than 3% of compensation. The State shall adjust this
3585	3585	3 rate annually.
3586	3586	4 (4) The defined contribution plan shall require 5
3587	3587	5 years of participation in the defined contribution plan
3588	3588	6 before vesting in State contributions. If the participant
3589	3589	7 fails to vest in them, the State contributions, and the
3590	3590	8 earnings thereon, shall be forfeited.
3591	3591	9 (5) The defined contribution plan may provide for
3592	3592	10 participants in the plan to be eligible for the defined
3593	3593	11 disability benefits available to other participants under
3594	3594	12 this Article. If it does, the System shall reduce the
3595	3595	13 employee contributions credited to the member's defined
3596	3596	14 contribution plan account by an amount determined by the
3597	3597	15 System to cover the cost of offering such benefits.
3598	3598	16 (6) The defined contribution plan shall provide a
3599	3599	17 variety of options for investments. These options shall
3600	3600	18 include investments handled by the Illinois State Board of
3601	3601	19 Investment as well as private sector investment options.
3602	3602	20 (7) The defined contribution plan shall provide a
3603	3603	21 variety of options for payouts to participants in the
3604	3604	22 defined contribution plan who are no longer active in the
3605	3605	23 System and their survivors.
3606	3606	24 (8) To the extent authorized under federal law and as
3607	3607	25 authorized by the System, the plan shall allow former
3608	3608	26 participants in the plan to transfer or roll over employee
3609	3609
3610	3610
3611	3611
3612	3612
3613	3613
3614	3614	SB3073 - 99 - LRB103 37686 RPS 67813 b
3615	3615
3616	3616
3617	3617	SB3073- 100 -LRB103 37686 RPS 67813 b SB3073 - 100 - LRB103 37686 RPS 67813 b
3618	3618	SB3073 - 100 - LRB103 37686 RPS 67813 b
3619	3619	1 and vested State contributions, and the earnings thereon,
3620	3620	2 from the defined contribution plan into other qualified
3621	3621	3 retirement plans.
3622	3622	4 (9) The System shall reduce the employee contributions
3623	3623	5 credited to the member's defined contribution plan account
3624	3624	6 by an amount determined by the System to cover the cost of
3625	3625	7 offering these benefits and any applicable administrative
3626	3626	8 fees.
3627	3627	9 (b) Under the defined contribution plan, an active Tier 1
3628	3628	10 or Tier 2 member of this System may elect, in writing, to cease
3629	3629	11 accruing benefits in the defined benefit plan and begin
3630	3630	12 accruing benefits for future service in the defined
3631	3631	13 contribution plan. The election to participate in the defined
3632	3632	14 contribution plan is voluntary and irrevocable.
3633	3633	15 (1) Service credit under the defined contribution plan
3634	3634	16 may be used for determining retirement eligibility under
3635	3635	17 the defined benefit plan.
3636	3636	18 (2) On or before December 31, 2025, the System shall
3637	3637	19 notify all active Tier 1 and Tier 2 members who are
3638	3638	20 eligible to participate in the defined contribution plan.
3639	3639	21 The System shall mail information describing the option to
3640	3640	22 join the defined contribution plan to each of these
3641	3641	23 employees to his or her last known address on file with the
3642	3642	24 System. If the employee is not responsive to other means
3643	3643	25 of contact, it is sufficient for the System to publish the
3644	3644	26 details of the option on its website. Active Tier 1 and
3645	3645
3646	3646
3647	3647
3648	3648
3649	3649
3650	3650	SB3073 - 100 - LRB103 37686 RPS 67813 b
3651	3651
3652	3652
3653	3653	SB3073- 101 -LRB103 37686 RPS 67813 b SB3073 - 101 - LRB103 37686 RPS 67813 b
3654	3654	SB3073 - 101 - LRB103 37686 RPS 67813 b
3655	3655	1 Tier 2 members who are notified by the System under this
3656	3656	2 paragraph must make the election to participate in the
3657	3657	3 defined contribution plan on or before December 31, 2025.
3658	3658	4 (3) If a person becomes an active participant of this
3659	3659	5 System on or after January 1, 2026, the System shall
3660	3660	6 notify the participant within one month after he or she
3661	3661	7 became an active participant that he or she is eligible to
3662	3662	8 participate in the defined contribution plan. The notice
3663	3663	9 shall be provided in the manner specified in paragraph (2)
3664	3664	10 of this subsection. The election to participate in the
3665	3665	11 defined contribution plan must be made as soon as
3666	3666	12 practical after the active participant is notified under
3667	3667	13 this paragraph.
3668	3668	14 (4) Upon request for further information describing
3669	3669	15 the option, the System shall provide employees with
3670	3670	16 information from the System before exercising the option
3671	3671	17 to join the plan, including information on the impact to
3672	3672	18 their benefits and service. The individual consultation
3673	3673	19 shall include projections of the member's defined benefits
3674	3674	20 at retirement or earlier termination of service and the
3675	3675	21 value of the member's account at retirement or earlier
3676	3676	22 termination of service. The System shall not provide
3677	3677	23 advice or counseling with respect to whether the employee
3678	3678	24 should exercise the option. The System shall inform Tier 1
3679	3679	25 and Tier 2 members who are eligible to participate in the
3680	3680	26 defined contribution plan that they may also wish to
3681	3681
3682	3682
3683	3683
3684	3684
3685	3685
3686	3686	SB3073 - 101 - LRB103 37686 RPS 67813 b
3687	3687
3688	3688
3689	3689	SB3073- 102 -LRB103 37686 RPS 67813 b SB3073 - 102 - LRB103 37686 RPS 67813 b
3690	3690	SB3073 - 102 - LRB103 37686 RPS 67813 b
3691	3691	1 obtain information and counsel relating to their option
3692	3692	2 from any other available source, including but not limited
3693	3693	3 to labor organizations, private counsel, and financial
3694	3694	4 advisors.
3695	3695	5 (c) A Tier 1 or Tier 2 member who elects to participate in
3696	3696	6 the defined contribution plan may irrevocably elect to
3697	3697	7 terminate all participation in the defined benefit plan. Upon
3698	3698	8 that election, the System shall transfer to the member's
3699	3699	9 individual account an amount equal to the amount of
3700	3700	10 contribution refund that the member would be eligible to
3701	3701	11 receive if the member terminated employment on that date and
3702	3702	12 elected a refund of contributions, including regular interest
3703	3703	13 for the respective years. The System shall make the transfer
3704	3704	14 as a tax-free transfer in accordance with Internal Revenue
3705	3705	15 Service guidelines, for purposes of funding the amount
3706	3706	16 credited to the member's individual account.
3707	3707	17 (d) In no event shall the System, its staff, its
3708	3708	18 authorized representatives, or the Board be liable for any
3709	3709	19 information given to an employee under this Section. The
3710	3710	20 System may coordinate with the Department of Central
3711	3711	21 Management Services in accordance with this amendatory Act of
3712	3712	22 the 103rd General Assembly to provide information concerning
3713	3713	23 the impact of the defined contribution plan set forth in this
3714	3714	24 Section.
3715	3715	25 (e) Notwithstanding any other provision of this Section,
3716	3716	26 no person shall begin participating in the defined
3717	3717
3718	3718
3719	3719
3720	3720
3721	3721
3722	3722	SB3073 - 102 - LRB103 37686 RPS 67813 b
3723	3723
3724	3724
3725	3725	SB3073- 103 -LRB103 37686 RPS 67813 b SB3073 - 103 - LRB103 37686 RPS 67813 b
3726	3726	SB3073 - 103 - LRB103 37686 RPS 67813 b
3727	3727	1 contribution plan until it has attained qualified plan status
3728	3728	2 and received all necessary approvals from the U.S. Internal
3729	3729	3 Revenue Service.
3730	3730	4 (f) The System shall report on its progress under this
3731	3731	5 Section, including the available details of the defined
3732	3732	6 contribution plan and the System's plans for informing
3733	3733	7 eligible Tier 1 and Tier 2 members about the plan, to the
3734	3734	8 Governor and the General Assembly on or before January 15,
3735	3735	9 2025.
3736	3736	10 (g) The Illinois State Board of Investment shall be the
3737	3737	11 plan sponsor for the defined contribution plan established
3738	3738	12 under this Section.
3739	3739	13 (h) The intent of this amendatory Act of the 103rd General
3740	3740	14 Assembly is to ensure that the State's normal cost of
3741	3741	15 participation in the defined contribution plan is similar, and
3742	3742	16 if possible equal, to the State's normal cost of participation
3743	3743	17 in the defined benefit plan, unless a lower State's normal
3744	3744	18 cost is necessary to ensure cost neutrality.
3745	3745	19 (40 ILCS 5/20-121) (from Ch. 108 1/2, par. 20-121)
3746	3746	20 (Text of Section WITHOUT the changes made by P.A. 98-599,
3747	3747	21 which has been held unconstitutional)
3748	3748	22 Sec. 20-121. Calculation of proportional retirement
3749	3749	23 annuities.
3750	3750	24 (a) Upon retirement of the employee, a proportional
3751	3751	25 retirement annuity shall be computed by each participating
3752	3752
3753	3753
3754	3754
3755	3755
3756	3756
3757	3757	SB3073 - 103 - LRB103 37686 RPS 67813 b
3758	3758
3759	3759
3760	3760	SB3073- 104 -LRB103 37686 RPS 67813 b SB3073 - 104 - LRB103 37686 RPS 67813 b
3761	3761	SB3073 - 104 - LRB103 37686 RPS 67813 b
3762	3762	1 system in which pension credit has been established on the
3763	3763	2 basis of pension credits under each system. The computation
3764	3764	3 shall be in accordance with the formula or method prescribed
3765	3765	4 by each participating system which is in effect at the date of
3766	3766	5 the employee's latest withdrawal from service covered by any
3767	3767	6 of the systems in which he has pension credits which he elects
3768	3768	7 to have considered under this Article. However, the amount of
3769	3769	8 any retirement annuity payable under the self-managed plan
3770	3770	9 established under Section 15-158.2 of this Code depends solely
3771	3771	10 on the value of the participant's vested account balances and
3772	3772	11 is not subject to any proportional adjustment under this
3773	3773	12 Section.
3774	3774	13 (a-5) For persons who participate in a defined
3775	3775	14 contribution plan established under Article 14 of this Code to
3776	3776	15 whom the provisions of this Article apply, the pension credits
3777	3777	16 established under the defined contribution plan may be
3778	3778	17 considered in determining eligibility for or the amount of the
3779	3779	18 defined benefit retirement annuity that is payable by any
3780	3780	19 other participating system.
3781	3781	20 (b) Combined pension credit under all retirement systems
3782	3782	21 subject to this Article shall be considered in determining
3783	3783	22 whether the minimum qualification has been met and the formula
3784	3784	23 or method of computation which shall be applied, except as may
3785	3785	24 be otherwise provided with respect to vesting in State or
3786	3786	25 employer contributions in a defined contribution plan. If a
3787	3787	26 system has a step-rate formula for calculation of the
3788	3788
3789	3789
3790	3790
3791	3791
3792	3792
3793	3793	SB3073 - 104 - LRB103 37686 RPS 67813 b
3794	3794
3795	3795
3796	3796	SB3073- 105 -LRB103 37686 RPS 67813 b SB3073 - 105 - LRB103 37686 RPS 67813 b
3797	3797	SB3073 - 105 - LRB103 37686 RPS 67813 b
3798	3798	1 retirement annuity, pension credits covering previous service
3799	3799	2 which have been established under another system shall be
3800	3800	3 considered in determining which range or ranges of the
3801	3801	4 step-rate formula are to be applicable to the employee.
3802	3802	5 (c) Interest on pension credit shall continue to
3803	3803	6 accumulate in accordance with the provisions of the law
3804	3804	7 governing the retirement system in which the same has been
3805	3805	8 established during the time an employee is in the service of
3806	3806	9 another employer, on the assumption such employee, for
3807	3807	10 interest purposes for pension credit, is continuing in the
3808	3808	11 service covered by such retirement system.
3809	3809	12 (Source: P.A. 91-887, eff. 7-6-00.)
3810	3810	13 (40 ILCS 5/20-123) (from Ch. 108 1/2, par. 20-123)
3811	3811	14 (Text of Section WITHOUT the changes made by P.A. 98-599,
3812	3812	15 which has been held unconstitutional)
3813	3813	16 Sec. 20-123. Survivor's annuity. The provisions governing
3814	3814	17 a retirement annuity shall be applicable to a survivor's
3815	3815	18 annuity. Appropriate credits shall be established for
3816	3816	19 survivor's annuity purposes in those participating systems
3817	3817	20 which provide survivor's annuities, according to the same
3818	3818	21 conditions and subject to the same limitations and
3819	3819	22 restrictions herein prescribed for a retirement annuity. If a
3820	3820	23 participating system has no survivor's annuity benefit, or if
3821	3821	24 the survivor's annuity benefit under that system is waived,
3822	3822	25 pension credit established in that system shall not be
3823	3823
3824	3824
3825	3825
3826	3826
3827	3827
3828	3828	SB3073 - 105 - LRB103 37686 RPS 67813 b
3829	3829
3830	3830
3831	3831	SB3073- 106 -LRB103 37686 RPS 67813 b SB3073 - 106 - LRB103 37686 RPS 67813 b
3832	3832	SB3073 - 106 - LRB103 37686 RPS 67813 b
3833	3833	1 considered in determining eligibility for or the amount of the
3834	3834	2 survivor's annuity which may be payable by any other
3835	3835	3 participating system.
3836	3836	4 For persons who participate in the self-managed plan
3837	3837	5 established under Section 15-158.2 or the portable benefit
3838	3838	6 package established under Section 15-136.4, pension credit
3839	3839	7 established under Article 15 may be considered in determining
3840	3840	8 eligibility for or the amount of the survivor's annuity that
3841	3841	9 is payable by any other participating system, but pension
3842	3842	10 credit established in any other system shall not result in any
3843	3843	11 right to a survivor's annuity under the Article 15 system.
3844	3844	12 For persons who participate in a defined contribution plan
3845	3845	13 established under Article 14 of this Code to whom the
3846	3846	14 provisions of this Article apply, the pension credits
3847	3847	15 established under the defined contribution plan may be
3848	3848	16 considered in determining eligibility for or the amount of the
3849	3849	17 defined benefit survivor's annuity that is payable by any
3850	3850	18 other participating system, but pension credits established in
3851	3851	19 any other system shall not result in any right to or increase
3852	3852	20 in the value of a survivor's annuity under the defined
3853	3853	21 contribution plan, which depends solely on the options chosen
3854	3854	22 and the value of the participant's vested account balances and
3855	3855	23 is not subject to any proportional adjustment under this
3856	3856	24 Section.
3857	3857	25 (Source: P.A. 91-887, eff. 7-6-00.)
3858	3858
3859	3859
3860	3860
3861	3861
3862	3862
3863	3863	SB3073 - 106 - LRB103 37686 RPS 67813 b
3864	3864
3865	3865
3866	3866	SB3073- 107 -LRB103 37686 RPS 67813 b SB3073 - 107 - LRB103 37686 RPS 67813 b
3867	3867	SB3073 - 107 - LRB103 37686 RPS 67813 b
3868	3868	1 (40 ILCS 5/20-124) (from Ch. 108 1/2, par. 20-124)
3869	3869	2 (Text of Section WITHOUT the changes made by P.A. 98-599,
3870	3870	3 which has been held unconstitutional)
3871	3871	4 Sec. 20-124. Maximum benefits.
3872	3872	5 (a) In no event shall the combined retirement or survivors
3873	3873	6 annuities exceed the highest annuity which would have been
3874	3874	7 payable by any participating system in which the employee has
3875	3875	8 pension credits, if all of his pension credits had been
3876	3876	9 validated in that system.
3877	3877	10 If the combined annuities should exceed the highest
3878	3878	11 maximum as determined in accordance with this Section, the
3879	3879	12 respective annuities shall be reduced proportionately
3880	3880	13 according to the ratio which the amount of each proportional
3881	3881	14 annuity bears to the aggregate of all such annuities.
3882	3882	15 (b) In the case of a participant in the self-managed plan
3883	3883	16 established under Section 15-158.2 of this Code to whom the
3884	3884	17 provisions of this Article apply:
3885	3885	18 (i) For purposes of calculating the combined
3886	3886	19 retirement annuity and the proportionate reduction, if
3887	3887	20 any, in a retirement annuity other than one payable under
3888	3888	21 the self-managed plan, the amount of the Article 15
3889	3889	22 retirement annuity shall be deemed to be the highest
3890	3890	23 annuity to which the annuitant would have been entitled if
3891	3891	24 he or she had participated in the traditional benefit
3892	3892	25 package as defined in Section 15-103.1 rather than the
3893	3893	26 self-managed plan.
3894	3894
3895	3895
3896	3896
3897	3897
3898	3898
3899	3899	SB3073 - 107 - LRB103 37686 RPS 67813 b
3900	3900
3901	3901
3902	3902	SB3073- 108 -LRB103 37686 RPS 67813 b SB3073 - 108 - LRB103 37686 RPS 67813 b
3903	3903	SB3073 - 108 - LRB103 37686 RPS 67813 b
3904	3904	1 (ii) For purposes of calculating the combined
3905	3905	2 survivor's annuity and the proportionate reduction, if
3906	3906	3 any, in a survivor's annuity other than one payable under
3907	3907	4 the self-managed plan, the amount of the Article 15
3908	3908	5 survivor's annuity shall be deemed to be the highest
3909	3909	6 survivor's annuity to which the survivor would have been
3910	3910	7 entitled if the deceased employee had participated in the
3911	3911	8 traditional benefit package as defined in Section 15-103.1
3912	3912	9 rather than the self-managed plan.
3913	3913	10 (iii) Benefits payable under the self-managed plan are
3914	3914	11 not subject to proportionate reduction under this Section.
3915	3915	12 (c) In the case of a participant in a defined contribution
3916	3916	13 plan established under Article 14 of this Code to whom the
3917	3917	14 provisions of this Article apply:
3918	3918	15 (i) For purposes of calculating the combined
3919	3919	16 retirement annuity and the proportionate reduction, if
3920	3920	17 any, in a defined benefit retirement annuity, any benefit
3921	3921	18 payable under the defined contribution plan shall not be
3922	3922	19 considered.
3923	3923	20 (ii) For purposes of calculating the combined
3924	3924	21 survivor's annuity and the proportionate reduction, if
3925	3925	22 any, in a defined benefit survivor's annuity, any benefit
3926	3926	23 payable under the defined contribution plan shall not be
3927	3927	24 considered.
3928	3928	25 (iii) Benefits payable under a defined contribution
3929	3929	26 plan established under Article 14 of this Code are not
3930	3930
3931	3931
3932	3932
3933	3933
3934	3934
3935	3935	SB3073 - 108 - LRB103 37686 RPS 67813 b
3936	3936
3937	3937
3938	3938	SB3073- 109 -LRB103 37686 RPS 67813 b SB3073 - 109 - LRB103 37686 RPS 67813 b
3939	3939	SB3073 - 109 - LRB103 37686 RPS 67813 b
3940	3940	1 subject to proportionate reduction under this Section.
3941	3941	2 (Source: P.A. 91-887, eff. 7-6-00.)
3942	3942	3 (40 ILCS 5/20-125) (from Ch. 108 1/2, par. 20-125)
3943	3943	4 (Text of Section WITHOUT the changes made by P.A. 98-599,
3944	3944	5 which has been held unconstitutional)
3945	3945	6 Sec. 20-125. Return to employment - suspension of
3946	3946	7 benefits. If a retired employee returns to employment which is
3947	3947	8 covered by a system from which he is receiving a proportional
3948	3948	9 annuity under this Article, his proportional annuity from all
3949	3949	10 participating systems shall be suspended during the period of
3950	3950	11 re-employment, except that this suspension does not apply to
3951	3951	12 any distributions payable under the self-managed plan
3952	3952	13 established under Section 15-158.2 of this Code or under a
3953	3953	14 defined contribution plan established under Article 14 of this
3954	3954	15 Code.
3955	3955	16 The provisions of the Article under which such employment
3956	3956	17 would be covered shall govern the determination of whether the
3957	3957	18 employee has returned to employment, and if applicable the
3958	3958	19 exemption of temporary employment or employment not exceeding
3959	3959	20 a specified duration or frequency, for all participating
3960	3960	21 systems from which the retired employee is receiving a
3961	3961	22 proportional annuity under this Article, notwithstanding any
3962	3962	23 contrary provisions in the other Articles governing such
3963	3963	24 systems.
3964	3964	25 (Source: P.A. 91-887, eff. 7-6-00.)
3965	3965
3966	3966
3967	3967
3968	3968
3969	3969
3970	3970	SB3073 - 109 - LRB103 37686 RPS 67813 b
3971	3971
3972	3972
3973	3973	SB3073- 110 -LRB103 37686 RPS 67813 b SB3073 - 110 - LRB103 37686 RPS 67813 b
3974	3974	SB3073 - 110 - LRB103 37686 RPS 67813 b
3975	3975
3976	3976
3977	3977
3978	3978
3979	3979
3980	3980	SB3073 - 110 - LRB103 37686 RPS 67813 b