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
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
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.
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A BILL FOR
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1 AN ACT concerning public employee benefits.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 5. The State Employees Group Insurance Act of 1971
5 is amended by changing Sections 3 and 10 as follows:
6 (5 ILCS 375/3) (from Ch. 127, par. 523)
7 Sec. 3. Definitions. Unless the context otherwise
8 requires, the following words and phrases as used in this Act
9 shall have the following meanings. The Department may define
10 these and other words and phrases separately for the purpose
11 of implementing specific programs providing benefits under
12 this Act.
13 (a) "Administrative service organization" means any
14 person, firm or corporation experienced in the handling of
15 claims which is fully qualified, financially sound and capable
16 of meeting the service requirements of a contract of
17 administration executed with the Department.
18 (b) "Annuitant" means (1) an employee who retires, or has
19 retired, on or after January 1, 1966 on an immediate annuity
20 under the provisions of Article Articles 2, 14 (including an
21 employee who has elected to receive an alternative retirement
22 cancellation payment under Section 14-108.5 of the Illinois
23 Pension Code in lieu of an annuity; an employee who, in lieu of
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
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.
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A BILL FOR
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
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1 receiving an annuity under that Article, has retired under the
2 defined contribution plan established under Section 14-155.5
3 of that Article; or an employee who meets the criteria for
4 retirement, but in lieu of receiving an annuity under that
5 Article has elected to receive an accelerated pension benefit
6 payment under Section 14-147.5 of that Article), or 15
7 (including an employee who has retired under the optional
8 retirement program established under Section 15-158.2 or who
9 meets the criteria for retirement but in lieu of receiving an
10 annuity under that Article has elected to receive an
11 accelerated pension benefit payment under Section 15-185.5 of
12 the Article), paragraph (2), (3), or (5) of Section 16-106
13 (including an employee who meets the criteria for retirement,
14 but in lieu of receiving an annuity under that Article has
15 elected to receive an accelerated pension benefit payment
16 under Section 16-190.5 of the Illinois Pension Code), or
17 Article 18 of the Illinois Pension Code; (2) any person who was
18 receiving group insurance coverage under this Act as of March
19 31, 1978 by reason of his status as an annuitant, even though
20 the annuity in relation to which such coverage was provided is
21 a proportional annuity based on less than the minimum period
22 of service required for a retirement annuity in the system
23 involved; (3) any person not otherwise covered by this Act who
24 has retired as a participating member under Article 2 of the
25 Illinois Pension Code but is ineligible for the retirement
26 annuity under Section 2-119 of the Illinois Pension Code; (4)
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1 the spouse of any person who is receiving a retirement annuity
2 under Article 18 of the Illinois Pension Code and who is
3 covered under a group health insurance program sponsored by a
4 governmental employer other than the State of Illinois and who
5 has irrevocably elected to waive his or her coverage under
6 this Act and to have his or her spouse considered as the
7 "annuitant" under this Act and not as a "dependent"; or (5) an
8 employee who retires, or has retired, from a qualified
9 position, as determined according to rules promulgated by the
10 Director, under a qualified local government, a qualified
11 rehabilitation facility, a qualified domestic violence shelter
12 or service, or a qualified child advocacy center. (For
13 definition of "retired employee", see (p) post).
14 (b-5) (Blank).
15 (b-6) (Blank).
16 (b-7) (Blank).
17 (c) "Carrier" means (1) an insurance company, a
18 corporation organized under the Limited Health Service
19 Organization Act or the Voluntary Health Services Plans Act, a
20 partnership, or other nongovernmental organization, which is
21 authorized to do group life or group health insurance business
22 in Illinois, or (2) the State of Illinois as a self-insurer.
23 (d) "Compensation" means salary or wages payable on a
24 regular payroll by the State Treasurer on a warrant of the
25 State Comptroller out of any State, trust or federal fund, or
26 by the Governor of the State through a disbursing officer of
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1 the State out of a trust or out of federal funds, or by any
2 Department out of State, trust, federal or other funds held by
3 the State Treasurer or the Department, to any person for
4 personal services currently performed, and ordinary or
5 accidental disability benefits under Articles 2, 14, or 15
6 (including ordinary or accidental disability benefits under
7 the optional retirement program established under Section
8 15-158.2), paragraph (2), (3), or (5) of Section 16-106, or
9 Article 18 of the Illinois Pension Code, for disability
10 incurred after January 1, 1966, or benefits payable under the
11 Workers' Compensation or Occupational Diseases Act or benefits
12 payable under a sick pay plan established in accordance with
13 Section 36 of the State Finance Act. "Compensation" also means
14 salary or wages paid to an employee of any qualified local
15 government, qualified rehabilitation facility, qualified
16 domestic violence shelter or service, or qualified child
17 advocacy center.
18 (e) "Commission" means the State Employees Group Insurance
19 Advisory Commission authorized by this Act. Commencing July 1,
20 1984, "Commission" as used in this Act means the Commission on
21 Government Forecasting and Accountability as established by
22 the Legislative Commission Reorganization Act of 1984.
23 (f) "Contributory", when referred to as contributory
24 coverage, shall mean optional coverages or benefits elected by
25 the member toward the cost of which such member makes
26 contribution, or which are funded in whole or in part through
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1 the acceptance of a reduction in earnings or the foregoing of
2 an increase in earnings by an employee, as distinguished from
3 noncontributory coverage or benefits which are paid entirely
4 by the State of Illinois without reduction of the member's
5 salary.
6 (g) "Department" means any department, institution, board,
7 commission, officer, court or any agency of the State
8 government receiving appropriations and having power to
9 certify payrolls to the Comptroller authorizing payments of
10 salary and wages against such appropriations as are made by
11 the General Assembly from any State fund, or against trust
12 funds held by the State Treasurer and includes boards of
13 trustees of the retirement systems created by Articles 2, 14,
14 15, 16, and 18 of the Illinois Pension Code. "Department" also
15 includes the Illinois Comprehensive Health Insurance Board,
16 the Board of Examiners established under the Illinois Public
17 Accounting Act, and the Illinois Finance Authority.
18 (h) "Dependent", when the term is used in the context of
19 the health and life plan, means a member's spouse and any child
20 (1) from birth to age 26 including an adopted child, a child
21 who lives with the member from the time of the placement for
22 adoption until entry of an order of adoption, a stepchild or
23 adjudicated child, or a child who lives with the member if such
24 member is a court appointed guardian of the child or (2) age 19
25 or over who has a mental or physical disability from a cause
26 originating prior to the age of 19 (age 26 if enrolled as an
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1 adult child dependent). For the health plan only, the term
2 "dependent" also includes (1) any person enrolled prior to the
3 effective date of this Section who is dependent upon the
4 member to the extent that the member may claim such person as a
5 dependent for income tax deduction purposes and (2) any person
6 who has received after June 30, 2000 an organ transplant and
7 who is financially dependent upon the member and eligible to
8 be claimed as a dependent for income tax purposes. A member
9 requesting to cover any dependent must provide documentation
10 as requested by the Department of Central Management Services
11 and file with the Department any and all forms required by the
12 Department.
13 (i) "Director" means the Director of the Illinois
14 Department of Central Management Services.
15 (j) "Eligibility period" means the period of time a member
16 has to elect enrollment in programs or to select benefits
17 without regard to age, sex or health.
18 (k) "Employee" means and includes each officer or employee
19 in the service of a department who (1) receives his
20 compensation for service rendered to the department on a
21 warrant issued pursuant to a payroll certified by a department
22 or on a warrant or check issued and drawn by a department upon
23 a trust, federal or other fund or on a warrant issued pursuant
24 to a payroll certified by an elected or duly appointed officer
25 of the State or who receives payment of the performance of
26 personal services on a warrant issued pursuant to a payroll
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1 certified by a Department and drawn by the Comptroller upon
2 the State Treasurer against appropriations made by the General
3 Assembly from any fund or against trust funds held by the State
4 Treasurer, and (2) is employed full-time or part-time in a
5 position normally requiring actual performance of duty during
6 not less than 1/2 of a normal work period, as established by
7 the Director in cooperation with each department, except that
8 persons elected by popular vote will be considered employees
9 during the entire term for which they are elected regardless
10 of hours devoted to the service of the State, and (3) except
11 that "employee" does not include any person who is not
12 eligible by reason of such person's employment to participate
13 in one of the State retirement systems under Articles 2, 14, 15
14 (either the regular Article 15 system or the optional
15 retirement program established under Section 15-158.2), or 18,
16 or under paragraph (2), (3), or (5) of Section 16-106, of the
17 Illinois Pension Code, but such term does include persons who
18 are employed during the 6-month qualifying period under
19 Article 14 of the Illinois Pension Code. Such term also
20 includes any person who (1) after January 1, 1966, is
21 receiving ordinary or accidental disability benefits under
22 Articles 2, 14, or 15 (including ordinary or accidental
23 disability benefits under the optional retirement program
24 established under Section 15-158.2), paragraph (2), (3), or
25 (5) of Section 16-106, or Article 18 of the Illinois Pension
26 Code, for disability incurred after January 1, 1966, (2)
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1 receives total permanent or total temporary disability under
2 the Workers' Compensation Act or Occupational Disease Act as a
3 result of injuries sustained or illness contracted in the
4 course of employment with the State of Illinois, or (3) is not
5 otherwise covered under this Act and has retired as a
6 participating member under Article 2 of the Illinois Pension
7 Code but is ineligible for the retirement annuity under
8 Section 2-119 of the Illinois Pension Code. However, a person
9 who satisfies the criteria of the foregoing definition of
10 "employee" except that such person is made ineligible to
11 participate in the State Universities Retirement System by
12 clause (4) of subsection (a) of Section 15-107 of the Illinois
13 Pension Code is also an "employee" for the purposes of this
14 Act. "Employee" also includes any person receiving or eligible
15 for benefits under a sick pay plan established in accordance
16 with Section 36 of the State Finance Act. "Employee" also
17 includes (i) each officer or employee in the service of a
18 qualified local government, including persons appointed as
19 trustees of sanitary districts regardless of hours devoted to
20 the service of the sanitary district, (ii) each employee in
21 the service of a qualified rehabilitation facility, (iii) each
22 full-time employee in the service of a qualified domestic
23 violence shelter or service, and (iv) each full-time employee
24 in the service of a qualified child advocacy center, as
25 determined according to rules promulgated by the Director.
26 (l) "Member" means an employee, annuitant, retired
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1 employee, or survivor. In the case of an annuitant or retired
2 employee who first becomes an annuitant or retired employee on
3 or after January 13, 2012 (the effective date of Public Act
4 97-668), the individual must meet the minimum vesting
5 requirements of the applicable retirement system in order to
6 be eligible for group insurance benefits under that system. In
7 the case of a survivor who is not entitled to occupational
8 death benefits pursuant to an applicable retirement system or
9 death benefits pursuant to the Illinois Workers' Compensation
10 Act, and who first becomes a survivor on or after January 13,
11 2012 (the effective date of Public Act 97-668), the deceased
12 employee, annuitant, or retired employee upon whom the annuity
13 is based must have been eligible to participate in the group
14 insurance system under the applicable retirement system in
15 order for the survivor to be eligible for group insurance
16 benefits under that system.
17 In the case of a survivor who is entitled to occupational
18 death benefits pursuant to the deceased employee's applicable
19 retirement system or death benefits pursuant to the Illinois
20 Workers' Compensation Act, and first becomes a survivor on or
21 after January 1, 2022, the survivor is eligible for group
22 health insurance benefits regardless of the deceased
23 employee's minimum vesting requirements under the applicable
24 retirement system, with a State contribution rate of 100%,
25 until an unmarried child dependent reaches the age of 18, or
26 the age of 22 if the dependent child is a full-time student, or
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1 until the adult survivor becomes eligible for benefits under
2 the federal Medicare health insurance program (Title XVIII of
3 the Social Security Act, as added by Public Law 89-97). In the
4 case of a survivor currently receiving occupational death
5 benefits pursuant to the deceased employee's applicable
6 retirement system or has received death benefits pursuant to
7 the Illinois Workers' Compensation Act, who first became a
8 survivor prior to January 1, 2022, the survivor is eligible
9 for group health insurance benefits regardless of the deceased
10 employee's minimum vesting requirements under the applicable
11 retirement system, with a State contribution rate of 100%,
12 until an unmarried child dependent reaches the age of 18, or
13 the age of 22 if the dependent child is a full-time student, or
14 until the adult survivor becomes eligible for benefits under
15 the federal Medicare health insurance program (Title XVIII of
16 the Social Security Act, as added by Public Law 89-97). The
17 changes made by this amendatory Act of the 102nd General
18 Assembly with respect to survivors who first became survivors
19 prior to January 1, 2022 shall apply upon request of the
20 survivor on or after the effective date of this amendatory Act
21 of the 102nd General Assembly.
22 (m) "Optional coverages or benefits" means those coverages
23 or benefits available to the member on his or her voluntary
24 election, and at his or her own expense.
25 (n) "Program" means the group life insurance, health
26 benefits and other employee benefits designed and contracted
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1 for by the Director under this Act.
2 (o) "Health plan" means a health benefits program offered
3 by the State of Illinois for persons eligible for the plan.
4 (p) "Retired employee" means any person who would be an
5 annuitant as that term is defined herein but for the fact that
6 such person retired prior to January 1, 1966. Such term also
7 includes any person formerly employed by the University of
8 Illinois in the Cooperative Extension Service who would be an
9 annuitant but for the fact that such person was made
10 ineligible to participate in the State Universities Retirement
11 System by clause (4) of subsection (a) of Section 15-107 of the
12 Illinois Pension Code.
13 (q) "Survivor" means a person receiving an annuity as a
14 survivor of an employee or of an annuitant. "Survivor" also
15 includes: (1) the surviving dependent of a person who
16 satisfies the definition of "employee" except that such person
17 is made ineligible to participate in the State Universities
18 Retirement System by clause (4) of subsection (a) of Section
19 15-107 of the Illinois Pension Code; (2) the surviving
20 dependent of any person formerly employed by the University of
21 Illinois in the Cooperative Extension Service who would be an
22 annuitant except for the fact that such person was made
23 ineligible to participate in the State Universities Retirement
24 System by clause (4) of subsection (a) of Section 15-107 of the
25 Illinois Pension Code; (3) the surviving dependent of a person
26 who was an annuitant under this Act by virtue of receiving an
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1 alternative retirement cancellation payment under Section
2 14-108.5 of the Illinois Pension Code; and (4) a person who
3 would be receiving an annuity as a survivor of an annuitant
4 except that the annuitant elected on or after June 4, 2018 to
5 receive an accelerated pension benefit payment under Section
6 14-147.5, 15-185.5, or 16-190.5 of the Illinois Pension Code
7 in lieu of receiving an annuity.
8 (q-2) "SERS" means the State Employees' Retirement System
9 of Illinois, created under Article 14 of the Illinois Pension
10 Code.
11 (q-3) "SURS" means the State Universities Retirement
12 System, created under Article 15 of the Illinois Pension Code.
13 (q-4) "TRS" means the Teachers' Retirement System of the
14 State of Illinois, created under Article 16 of the Illinois
15 Pension Code.
16 (q-5) (Blank).
17 (q-6) (Blank).
18 (q-7) (Blank).
19 (r) "Medical services" means the services provided within
20 the scope of their licenses by practitioners in all categories
21 licensed under the Medical Practice Act of 1987.
22 (s) "Unit of local government" means any county,
23 municipality, township, school district (including a
24 combination of school districts under the Intergovernmental
25 Cooperation Act), special district or other unit, designated
26 as a unit of local government by law, which exercises limited
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1 governmental powers or powers in respect to limited
2 governmental subjects, any not-for-profit association with a
3 membership that primarily includes townships and township
4 officials, that has duties that include provision of research
5 service, dissemination of information, and other acts for the
6 purpose of improving township government, and that is funded
7 wholly or partly in accordance with Section 85-15 of the
8 Township Code; any not-for-profit corporation or association,
9 with a membership consisting primarily of municipalities, that
10 operates its own utility system, and provides research,
11 training, dissemination of information, or other acts to
12 promote cooperation between and among municipalities that
13 provide utility services and for the advancement of the goals
14 and purposes of its membership; the Southern Illinois
15 Collegiate Common Market, which is a consortium of higher
16 education institutions in Southern Illinois; the Illinois
17 Association of Park Districts; and any hospital provider that
18 is owned by a county that has 100 or fewer hospital beds and
19 has not already joined the program. "Qualified local
20 government" means a unit of local government approved by the
21 Director and participating in a program created under
22 subsection (i) of Section 10 of this Act.
23 (t) "Qualified rehabilitation facility" means any
24 not-for-profit organization that is accredited by the
25 Commission on Accreditation of Rehabilitation Facilities or
26 certified by the Department of Human Services (as successor to
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1 the Department of Mental Health and Developmental
2 Disabilities) to provide services to persons with disabilities
3 and which receives funds from the State of Illinois for
4 providing those services, approved by the Director and
5 participating in a program created under subsection (j) of
6 Section 10 of this Act.
7 (u) "Qualified domestic violence shelter or service" means
8 any Illinois domestic violence shelter or service and its
9 administrative offices funded by the Department of Human
10 Services (as successor to the Illinois Department of Public
11 Aid), approved by the Director and participating in a program
12 created under subsection (k) of Section 10.
13 (v) "TRS benefit recipient" means a person who:
14 (1) is not a "member" as defined in this Section; and
15 (2) is receiving a monthly benefit or retirement
16 annuity under Article 16 of the Illinois Pension Code or
17 would be receiving such monthly benefit or retirement
18 annuity except that the benefit recipient elected on or
19 after June 4, 2018 to receive an accelerated pension
20 benefit payment under Section 16-190.5 of the Illinois
21 Pension Code in lieu of receiving an annuity; and
22 (3) either (i) has at least 8 years of creditable
23 service under Article 16 of the Illinois Pension Code, or
24 (ii) was enrolled in the health insurance program offered
25 under that Article on January 1, 1996, or (iii) is the
26 survivor of a benefit recipient who had at least 8 years of
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1 creditable service under Article 16 of the Illinois
2 Pension Code or was enrolled in the health insurance
3 program offered under that Article on June 21, 1995 (the
4 effective date of Public Act 89-25), or (iv) is a
5 recipient or survivor of a recipient of a disability
6 benefit under Article 16 of the Illinois Pension Code.
7 (w) "TRS dependent beneficiary" means a person who:
8 (1) is not a "member" or "dependent" as defined in
9 this Section; and
10 (2) is a TRS benefit recipient's: (A) spouse, (B)
11 dependent parent who is receiving at least half of his or
12 her support from the TRS benefit recipient, or (C)
13 natural, step, adjudicated, or adopted child who is (i)
14 under age 26, (ii) was, on January 1, 1996, participating
15 as a dependent beneficiary in the health insurance program
16 offered under Article 16 of the Illinois Pension Code, or
17 (iii) age 19 or over who has a mental or physical
18 disability from a cause originating prior to the age of 19
19 (age 26 if enrolled as an adult child).
20 "TRS dependent beneficiary" does not include, as indicated
21 under paragraph (2) of this subsection (w), a dependent of the
22 survivor of a TRS benefit recipient who first becomes a
23 dependent of a survivor of a TRS benefit recipient on or after
24 January 13, 2012 (the effective date of Public Act 97-668)
25 unless that dependent would have been eligible for coverage as
26 a dependent of the deceased TRS benefit recipient upon whom
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1 the survivor benefit is based.
2 (x) "Military leave" refers to individuals in basic
3 training for reserves, special/advanced training, annual
4 training, emergency call up, activation by the President of
5 the United States, or any other training or duty in service to
6 the United States Armed Forces.
7 (y) (Blank).
8 (z) "Community college benefit recipient" means a person
9 who:
10 (1) is not a "member" as defined in this Section; and
11 (2) is receiving a monthly survivor's annuity or
12 retirement annuity under Article 15 of the Illinois
13 Pension Code or would be receiving such monthly survivor's
14 annuity or retirement annuity except that the benefit
15 recipient elected on or after June 4, 2018 to receive an
16 accelerated pension benefit payment under Section 15-185.5
17 of the Illinois Pension Code in lieu of receiving an
18 annuity; and
19 (3) either (i) was a full-time employee of a community
20 college district or an association of community college
21 boards created under the Public Community College Act
22 (other than an employee whose last employer under Article
23 15 of the Illinois Pension Code was a community college
24 district subject to Article VII of the Public Community
25 College Act) and was eligible to participate in a group
26 health benefit plan as an employee during the time of
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1 employment with a community college district (other than a
2 community college district subject to Article VII of the
3 Public Community College Act) or an association of
4 community college boards, or (ii) is the survivor of a
5 person described in item (i).
6 (aa) "Community college dependent beneficiary" means a
7 person who:
8 (1) is not a "member" or "dependent" as defined in
9 this Section; and
10 (2) is a community college benefit recipient's: (A)
11 spouse, (B) dependent parent who is receiving at least
12 half of his or her support from the community college
13 benefit recipient, or (C) natural, step, adjudicated, or
14 adopted child who is (i) under age 26, or (ii) age 19 or
15 over and has a mental or physical disability from a cause
16 originating prior to the age of 19 (age 26 if enrolled as
17 an adult child).
18 "Community college dependent beneficiary" does not
19 include, as indicated under paragraph (2) of this subsection
20 (aa), a dependent of the survivor of a community college
21 benefit recipient who first becomes a dependent of a survivor
22 of a community college benefit recipient on or after January
23 13, 2012 (the effective date of Public Act 97-668) unless that
24 dependent would have been eligible for coverage as a dependent
25 of the deceased community college benefit recipient upon whom
26 the survivor annuity is based.
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1 (bb) "Qualified child advocacy center" means any Illinois
2 child advocacy center and its administrative offices funded by
3 the Department of Children and Family Services, as defined by
4 the Children's Advocacy Center Act (55 ILCS 80/), approved by
5 the Director and participating in a program created under
6 subsection (n) of Section 10.
7 (cc) "Placement for adoption" means the assumption and
8 retention by a member of a legal obligation for total or
9 partial support of a child in anticipation of adoption of the
10 child. The child's placement with the member terminates upon
11 the termination of such legal obligation.
12 (Source: P.A. 101-242, eff. 8-9-19; 102-558, eff. 8-20-21;
13 102-714, eff. 4-29-22; 102-813, eff 5-13-22.)
14 (5 ILCS 375/10) (from Ch. 127, par. 530)
15 Sec. 10. Contributions by the State and members.
16 (a) The State shall pay the cost of basic non-contributory
17 group life insurance and, subject to member paid contributions
18 set by the Department or required by this Section and except as
19 provided in this Section, the basic program of group health
20 benefits on each eligible member, except a member, not
21 otherwise covered by this Act, who has retired as a
22 participating member under Article 2 of the Illinois Pension
23 Code but is ineligible for the retirement annuity under
24 Section 2-119 of the Illinois Pension Code, and part of each
25 eligible member's and retired member's premiums for health
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1 insurance coverage for enrolled dependents as provided by
2 Section 9. The State shall pay the cost of the basic program of
3 group health benefits only after benefits are reduced by the
4 amount of benefits covered by Medicare for all members and
5 dependents who are eligible for benefits under Social Security
6 or the Railroad Retirement system or who had sufficient
7 Medicare-covered government employment, except that such
8 reduction in benefits shall apply only to those members and
9 dependents who (1) first become eligible for such Medicare
10 coverage on or after July 1, 1992; or (2) are
11 Medicare-eligible members or dependents of a local government
12 unit which began participation in the program on or after July
13 1, 1992; or (3) remain eligible for, but no longer receive
14 Medicare coverage which they had been receiving on or after
15 July 1, 1992. The Department may determine the aggregate level
16 of the State's contribution on the basis of actual cost of
17 medical services adjusted for age, sex or geographic or other
18 demographic characteristics which affect the costs of such
19 programs.
20 The cost of participation in the basic program of group
21 health benefits for the dependent or survivor of a living or
22 deceased retired employee who was formerly employed by the
23 University of Illinois in the Cooperative Extension Service
24 and would be an annuitant but for the fact that he or she was
25 made ineligible to participate in the State Universities
26 Retirement System by clause (4) of subsection (a) of Section
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1 15-107 of the Illinois Pension Code shall not be greater than
2 the cost of participation that would otherwise apply to that
3 dependent or survivor if he or she were the dependent or
4 survivor of an annuitant under the State Universities
5 Retirement System.
6 (a-1) (Blank).
7 (a-2) (Blank).
8 (a-3) (Blank).
9 (a-4) (Blank).
10 (a-5) (Blank).
11 (a-6) (Blank).
12 (a-7) (Blank).
13 (a-8) Any annuitant, survivor, or retired employee may
14 waive or terminate coverage in the program of group health
15 benefits. Any such annuitant, survivor, or retired employee
16 who has waived or terminated coverage may enroll or re-enroll
17 in the program of group health benefits only during the annual
18 benefit choice period, as determined by the Director; except
19 that in the event of termination of coverage due to nonpayment
20 of premiums, the annuitant, survivor, or retired employee may
21 not re-enroll in the program.
22 (a-8.5) Beginning on the effective date of this amendatory
23 Act of the 97th General Assembly, the Director of Central
24 Management Services shall, on an annual basis, determine the
25 amount that the State shall contribute toward the basic
26 program of group health benefits on behalf of annuitants
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1 (including individuals who (i) participated in the General
2 Assembly Retirement System, the State Employees' Retirement
3 System of Illinois, the State Universities Retirement System,
4 the Teachers' Retirement System of the State of Illinois, or
5 the Judges Retirement System of Illinois and (ii) qualify as
6 annuitants under subsection (b) of Section 3 of this Act),
7 survivors (including individuals who (i) receive an annuity as
8 a survivor of an individual who participated in the General
9 Assembly Retirement System, the State Employees' Retirement
10 System of Illinois, the State Universities Retirement System,
11 the Teachers' Retirement System of the State of Illinois, or
12 the Judges Retirement System of Illinois and (ii) qualify as
13 survivors under subsection (q) of Section 3 of this Act), and
14 retired employees (as defined in subsection (p) of Section 3
15 of this Act). The remainder of the cost of coverage for each
16 annuitant, survivor, or retired employee, as determined by the
17 Director of Central Management Services, shall be the
18 responsibility of that annuitant, survivor, or retired
19 employee.
20 Contributions required of annuitants, survivors, and
21 retired employees shall be the same for all retirement systems
22 and shall also be based on whether an individual has made an
23 election under Section 15-135.1 of the Illinois Pension Code.
24 Contributions may be based on annuitants', survivors', or
25 retired employees' Medicare eligibility, but may not be based
26 on Social Security eligibility.
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1 (a-9) No later than May 1 of each calendar year, the
2 Director of Central Management Services shall certify in
3 writing to the Executive Secretary of the State Employees'
4 Retirement System of Illinois the amounts of the Medicare
5 supplement health care premiums and the amounts of the health
6 care premiums for all other retirees who are not Medicare
7 eligible.
8 A separate calculation of the premiums based upon the
9 actual cost of each health care plan shall be so certified.
10 The Director of Central Management Services shall provide
11 to the Executive Secretary of the State Employees' Retirement
12 System of Illinois such information, statistics, and other
13 data as he or she may require to review the premium amounts
14 certified by the Director of Central Management Services.
15 The Department of Central Management Services, or any
16 successor agency designated to procure healthcare contracts
17 pursuant to this Act, is authorized to establish funds,
18 separate accounts provided by any bank or banks as defined by
19 the Illinois Banking Act, or separate accounts provided by any
20 savings and loan association or associations as defined by the
21 Illinois Savings and Loan Act of 1985 to be held by the
22 Director, outside the State treasury, for the purpose of
23 receiving the transfer of moneys from the Local Government
24 Health Insurance Reserve Fund. The Department may promulgate
25 rules further defining the methodology for the transfers. Any
26 interest earned by moneys in the funds or accounts shall inure
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1 to the Local Government Health Insurance Reserve Fund. The
2 transferred moneys, and interest accrued thereon, shall be
3 used exclusively for transfers to administrative service
4 organizations or their financial institutions for payments of
5 claims to claimants and providers under the self-insurance
6 health plan. The transferred moneys, and interest accrued
7 thereon, shall not be used for any other purpose including,
8 but not limited to, reimbursement of administration fees due
9 the administrative service organization pursuant to its
10 contract or contracts with the Department.
11 (a-10) To the extent that participation, benefits, or
12 premiums under this Act are based on a person's service credit
13 under an Article of the Illinois Pension Code, service credit
14 terminated in exchange for an accelerated pension benefit
15 payment under Section 14-147.5, 15-185.5, or 16-190.5 of that
16 Code shall be included in determining a person's service
17 credit for the purposes of this Act.
18 (a-15) For purposes of determining State contributions
19 under this Section, service established under a defined
20 contribution plan under Section 14-155.5 of the Illinois
21 Pension Code shall be included in determining an employee's
22 creditable service. Any credit terminated as part of a
23 transfer of contributions to a defined contribution plan under
24 Section 14-155.5 of the Illinois Pension Code shall also be
25 included in determining an employee's creditable service.
26 (b) State employees who become eligible for this program
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1 on or after January 1, 1980 in positions normally requiring
2 actual performance of duty not less than 1/2 of a normal work
3 period but not equal to that of a normal work period, shall be
4 given the option of participating in the available program. If
5 the employee elects coverage, the State shall contribute on
6 behalf of such employee to the cost of the employee's benefit
7 and any applicable dependent supplement, that sum which bears
8 the same percentage as that percentage of time the employee
9 regularly works when compared to normal work period.
10 (c) The basic non-contributory coverage from the basic
11 program of group health benefits shall be continued for each
12 employee not in pay status or on active service by reason of
13 (1) leave of absence due to illness or injury, (2) authorized
14 educational leave of absence or sabbatical leave, or (3)
15 military leave. This coverage shall continue until expiration
16 of authorized leave and return to active service, but not to
17 exceed 24 months for leaves under item (1) or (2). This
18 24-month limitation and the requirement of returning to active
19 service shall not apply to persons receiving ordinary or
20 accidental disability benefits or retirement benefits through
21 the appropriate State retirement system or benefits under the
22 Workers' Compensation or Occupational Disease Act.
23 (d) The basic group life insurance coverage shall
24 continue, with full State contribution, where such person is
25 (1) absent from active service by reason of disability arising
26 from any cause other than self-inflicted, (2) on authorized
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1 educational leave of absence or sabbatical leave, or (3) on
2 military leave.
3 (e) Where the person is in non-pay status for a period in
4 excess of 30 days or on leave of absence, other than by reason
5 of disability, educational or sabbatical leave, or military
6 leave, such person may continue coverage only by making
7 personal payment equal to the amount normally contributed by
8 the State on such person's behalf. Such payments and coverage
9 may be continued: (1) until such time as the person returns to
10 a status eligible for coverage at State expense, but not to
11 exceed 24 months or (2) until such person's employment or
12 annuitant status with the State is terminated (exclusive of
13 any additional service imposed pursuant to law).
14 (f) The Department shall establish by rule the extent to
15 which other employee benefits will continue for persons in
16 non-pay status or who are not in active service.
17 (g) The State shall not pay the cost of the basic
18 non-contributory group life insurance, program of health
19 benefits and other employee benefits for members who are
20 survivors as defined by paragraphs (1) and (2) of subsection
21 (q) of Section 3 of this Act. The costs of benefits for these
22 survivors shall be paid by the survivors or by the University
23 of Illinois Cooperative Extension Service, or any combination
24 thereof. However, the State shall pay the amount of the
25 reduction in the cost of participation, if any, resulting from
26 the amendment to subsection (a) made by this amendatory Act of
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1 the 91st General Assembly.
2 (h) Those persons occupying positions with any department
3 as a result of emergency appointments pursuant to Section 8b.8
4 of the Personnel Code who are not considered employees under
5 this Act shall be given the option of participating in the
6 programs of group life insurance, health benefits and other
7 employee benefits. Such persons electing coverage may
8 participate only by making payment equal to the amount
9 normally contributed by the State for similarly situated
10 employees. Such amounts shall be determined by the Director.
11 Such payments and coverage may be continued until such time as
12 the person becomes an employee pursuant to this Act or such
13 person's appointment is terminated.
14 (i) Any unit of local government within the State of
15 Illinois may apply to the Director to have its employees,
16 annuitants, and their dependents provided group health
17 coverage under this Act on a non-insured basis. To
18 participate, a unit of local government must agree to enroll
19 all of its employees, who may select coverage under any group
20 health benefits plan made available by the Department under
21 the health benefits program established under this Section or
22 a health maintenance organization that has contracted with the
23 State to be available as a health care provider for employees
24 as defined in this Act. A unit of local government must remit
25 the entire cost of providing coverage under the health
26 benefits program established under this Section or, for
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1 coverage under a health maintenance organization, an amount
2 determined by the Director based on an analysis of the sex,
3 age, geographic location, or other relevant demographic
4 variables for its employees, except that the unit of local
5 government shall not be required to enroll those of its
6 employees who are covered spouses or dependents under the
7 State group health benefits plan or another group policy or
8 plan providing health benefits as long as (1) an appropriate
9 official from the unit of local government attests that each
10 employee not enrolled is a covered spouse or dependent under
11 this plan or another group policy or plan, and (2) at least 50%
12 of the employees are enrolled and the unit of local government
13 remits the entire cost of providing coverage to those
14 employees, except that a participating school district must
15 have enrolled at least 50% of its full-time employees who have
16 not waived coverage under the district's group health plan by
17 participating in a component of the district's cafeteria plan.
18 A participating school district is not required to enroll a
19 full-time employee who has waived coverage under the
20 district's health plan, provided that an appropriate official
21 from the participating school district attests that the
22 full-time employee has waived coverage by participating in a
23 component of the district's cafeteria plan. For the purposes
24 of this subsection, "participating school district" includes a
25 unit of local government whose primary purpose is education as
26 defined by the Department's rules.
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1 Employees of a participating unit of local government who
2 are not enrolled due to coverage under another group health
3 policy or plan may enroll in the event of a qualifying change
4 in status, special enrollment, special circumstance as defined
5 by the Director, or during the annual Benefit Choice Period. A
6 participating unit of local government may also elect to cover
7 its annuitants. Dependent coverage shall be offered on an
8 optional basis, with the costs paid by the unit of local
9 government, its employees, or some combination of the two as
10 determined by the unit of local government. The unit of local
11 government shall be responsible for timely collection and
12 transmission of dependent premiums.
13 The Director shall annually determine monthly rates of
14 payment, subject to the following constraints:
15 (1) In the first year of coverage, the rates shall be
16 equal to the amount normally charged to State employees
17 for elected optional coverages or for enrolled dependents
18 coverages or other contributory coverages, or contributed
19 by the State for basic insurance coverages on behalf of
20 its employees, adjusted for differences between State
21 employees and employees of the local government in age,
22 sex, geographic location or other relevant demographic
23 variables, plus an amount sufficient to pay for the
24 additional administrative costs of providing coverage to
25 employees of the unit of local government and their
26 dependents.
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1 (2) In subsequent years, a further adjustment shall be
2 made to reflect the actual prior years' claims experience
3 of the employees of the unit of local government.
4 In the case of coverage of local government employees
5 under a health maintenance organization, the Director shall
6 annually determine for each participating unit of local
7 government the maximum monthly amount the unit may contribute
8 toward that coverage, based on an analysis of (i) the age, sex,
9 geographic location, and other relevant demographic variables
10 of the unit's employees and (ii) the cost to cover those
11 employees under the State group health benefits plan. The
12 Director may similarly determine the maximum monthly amount
13 each unit of local government may contribute toward coverage
14 of its employees' dependents under a health maintenance
15 organization.
16 Monthly payments by the unit of local government or its
17 employees for group health benefits plan or health maintenance
18 organization coverage shall be deposited in the Local
19 Government Health Insurance Reserve Fund.
20 The Local Government Health Insurance Reserve Fund is
21 hereby created as a nonappropriated trust fund to be held
22 outside the State Treasury, with the State Treasurer as
23 custodian. The Local Government Health Insurance Reserve Fund
24 shall be a continuing fund not subject to fiscal year
25 limitations. The Local Government Health Insurance Reserve
26 Fund is not subject to administrative charges or charge-backs,
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1 including but not limited to those authorized under Section 8h
2 of the State Finance Act. All revenues arising from the
3 administration of the health benefits program established
4 under this Section shall be deposited into the Local
5 Government Health Insurance Reserve Fund. Any interest earned
6 on moneys in the Local Government Health Insurance Reserve
7 Fund shall be deposited into the Fund. All expenditures from
8 this Fund shall be used for payments for health care benefits
9 for local government and rehabilitation facility employees,
10 annuitants, and dependents, and to reimburse the Department or
11 its administrative service organization for all expenses
12 incurred in the administration of benefits. No other State
13 funds may be used for these purposes.
14 A local government employer's participation or desire to
15 participate in a program created under this subsection shall
16 not limit that employer's duty to bargain with the
17 representative of any collective bargaining unit of its
18 employees.
19 (j) Any rehabilitation facility within the State of
20 Illinois may apply to the Director to have its employees,
21 annuitants, and their eligible dependents provided group
22 health coverage under this Act on a non-insured basis. To
23 participate, a rehabilitation facility must agree to enroll
24 all of its employees and remit the entire cost of providing
25 such coverage for its employees, except that the
26 rehabilitation facility shall not be required to enroll those
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1 of its employees who are covered spouses or dependents under
2 this plan or another group policy or plan providing health
3 benefits as long as (1) an appropriate official from the
4 rehabilitation facility attests that each employee not
5 enrolled is a covered spouse or dependent under this plan or
6 another group policy or plan, and (2) at least 50% of the
7 employees are enrolled and the rehabilitation facility remits
8 the entire cost of providing coverage to those employees.
9 Employees of a participating rehabilitation facility who are
10 not enrolled due to coverage under another group health policy
11 or plan may enroll in the event of a qualifying change in
12 status, special enrollment, special circumstance as defined by
13 the Director, or during the annual Benefit Choice Period. A
14 participating rehabilitation facility may also elect to cover
15 its annuitants. Dependent coverage shall be offered on an
16 optional basis, with the costs paid by the rehabilitation
17 facility, its employees, or some combination of the 2 as
18 determined by the rehabilitation facility. The rehabilitation
19 facility shall be responsible for timely collection and
20 transmission of dependent premiums.
21 The Director shall annually determine quarterly rates of
22 payment, subject to the following constraints:
23 (1) In the first year of coverage, the rates shall be
24 equal to the amount normally charged to State employees
25 for elected optional coverages or for enrolled dependents
26 coverages or other contributory coverages on behalf of its
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1 employees, adjusted for differences between State
2 employees and employees of the rehabilitation facility in
3 age, sex, geographic location or other relevant
4 demographic variables, plus an amount sufficient to pay
5 for the additional administrative costs of providing
6 coverage to employees of the rehabilitation facility and
7 their dependents.
8 (2) In subsequent years, a further adjustment shall be
9 made to reflect the actual prior years' claims experience
10 of the employees of the rehabilitation facility.
11 Monthly payments by the rehabilitation facility or its
12 employees for group health benefits shall be deposited in the
13 Local Government Health Insurance Reserve Fund.
14 (k) Any domestic violence shelter or service within the
15 State of Illinois may apply to the Director to have its
16 employees, annuitants, and their dependents provided group
17 health coverage under this Act on a non-insured basis. To
18 participate, a domestic violence shelter or service must agree
19 to enroll all of its employees and pay the entire cost of
20 providing such coverage for its employees. The domestic
21 violence shelter shall not be required to enroll those of its
22 employees who are covered spouses or dependents under this
23 plan or another group policy or plan providing health benefits
24 as long as (1) an appropriate official from the domestic
25 violence shelter attests that each employee not enrolled is a
26 covered spouse or dependent under this plan or another group
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1 policy or plan and (2) at least 50% of the employees are
2 enrolled and the domestic violence shelter remits the entire
3 cost of providing coverage to those employees. Employees of a
4 participating domestic violence shelter who are not enrolled
5 due to coverage under another group health policy or plan may
6 enroll in the event of a qualifying change in status, special
7 enrollment, or special circumstance as defined by the Director
8 or during the annual Benefit Choice Period. A participating
9 domestic violence shelter may also elect to cover its
10 annuitants. Dependent coverage shall be offered on an optional
11 basis, with employees, or some combination of the 2 as
12 determined by the domestic violence shelter or service. The
13 domestic violence shelter or service shall be responsible for
14 timely collection and transmission of dependent premiums.
15 The Director shall annually determine rates of payment,
16 subject to the following constraints:
17 (1) In the first year of coverage, the rates shall be
18 equal to the amount normally charged to State employees
19 for elected optional coverages or for enrolled dependents
20 coverages or other contributory coverages on behalf of its
21 employees, adjusted for differences between State
22 employees and employees of the domestic violence shelter
23 or service in age, sex, geographic location or other
24 relevant demographic variables, plus an amount sufficient
25 to pay for the additional administrative costs of
26 providing coverage to employees of the domestic violence
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1 shelter or service and their dependents.
2 (2) In subsequent years, a further adjustment shall be
3 made to reflect the actual prior years' claims experience
4 of the employees of the domestic violence shelter or
5 service.
6 Monthly payments by the domestic violence shelter or
7 service or its employees for group health insurance shall be
8 deposited in the Local Government Health Insurance Reserve
9 Fund.
10 (l) A public community college or entity organized
11 pursuant to the Public Community College Act may apply to the
12 Director initially to have only annuitants not covered prior
13 to July 1, 1992 by the district's health plan provided health
14 coverage under this Act on a non-insured basis. The community
15 college must execute a 2-year contract to participate in the
16 Local Government Health Plan. Any annuitant may enroll in the
17 event of a qualifying change in status, special enrollment,
18 special circumstance as defined by the Director, or during the
19 annual Benefit Choice Period.
20 The Director shall annually determine monthly rates of
21 payment subject to the following constraints: for those
22 community colleges with annuitants only enrolled, first year
23 rates shall be equal to the average cost to cover claims for a
24 State member adjusted for demographics, Medicare
25 participation, and other factors; and in the second year, a
26 further adjustment of rates shall be made to reflect the
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1 actual first year's claims experience of the covered
2 annuitants.
3 (l-5) The provisions of subsection (l) become inoperative
4 on July 1, 1999.
5 (m) The Director shall adopt any rules deemed necessary
6 for implementation of this amendatory Act of 1989 (Public Act
7 86-978).
8 (n) Any child advocacy center within the State of Illinois
9 may apply to the Director to have its employees, annuitants,
10 and their dependents provided group health coverage under this
11 Act on a non-insured basis. To participate, a child advocacy
12 center must agree to enroll all of its employees and pay the
13 entire cost of providing coverage for its employees. The child
14 advocacy center shall not be required to enroll those of its
15 employees who are covered spouses or dependents under this
16 plan or another group policy or plan providing health benefits
17 as long as (1) an appropriate official from the child advocacy
18 center attests that each employee not enrolled is a covered
19 spouse or dependent under this plan or another group policy or
20 plan and (2) at least 50% of the employees are enrolled and the
21 child advocacy center remits the entire cost of providing
22 coverage to those employees. Employees of a participating
23 child advocacy center who are not enrolled due to coverage
24 under another group health policy or plan may enroll in the
25 event of a qualifying change in status, special enrollment, or
26 special circumstance as defined by the Director or during the
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1 annual Benefit Choice Period. A participating child advocacy
2 center may also elect to cover its annuitants. Dependent
3 coverage shall be offered on an optional basis, with the costs
4 paid by the child advocacy center, its employees, or some
5 combination of the 2 as determined by the child advocacy
6 center. The child advocacy center shall be responsible for
7 timely collection and transmission of dependent premiums.
8 The Director shall annually determine rates of payment,
9 subject to the following constraints:
10 (1) In the first year of coverage, the rates shall be
11 equal to the amount normally charged to State employees
12 for elected optional coverages or for enrolled dependents
13 coverages or other contributory coverages on behalf of its
14 employees, adjusted for differences between State
15 employees and employees of the child advocacy center in
16 age, sex, geographic location, or other relevant
17 demographic variables, plus an amount sufficient to pay
18 for the additional administrative costs of providing
19 coverage to employees of the child advocacy center and
20 their dependents.
21 (2) In subsequent years, a further adjustment shall be
22 made to reflect the actual prior years' claims experience
23 of the employees of the child advocacy center.
24 Monthly payments by the child advocacy center or its
25 employees for group health insurance shall be deposited into
26 the Local Government Health Insurance Reserve Fund.
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1 (Source: P.A. 102-19, eff. 7-1-21.)
2 Section 10. The Illinois Pension Code is amended by
3 changing Sections 1-160, 1-161, 14-103.05, 14-103.41,
4 14-152.1, 20-121, 20-123, 20-124, and 20-125 and by adding
5 Section 14-155.5 as follows:
6 (40 ILCS 5/1-160)
7 (Text of Section from P.A. 102-719)
8 Sec. 1-160. Provisions applicable to new hires.
9 (a) The provisions of this Section apply to a person who,
10 on or after January 1, 2011, first becomes a member or a
11 participant under any reciprocal retirement system or pension
12 fund established under this Code, other than a retirement
13 system or pension fund established under Article 2, 3, 4, 5, 6,
14 7, 15, or 18 of this Code, notwithstanding any other provision
15 of this Code to the contrary, but do not apply to any
16 self-managed plan established under this Code or to any
17 participant of the retirement plan established under Section
18 22-101; except that this Section applies to a person who
19 elected to establish alternative credits by electing in
20 writing after January 1, 2011, but before August 8, 2011,
21 under Section 7-145.1 of this Code. Notwithstanding anything
22 to the contrary in this Section, for purposes of this Section,
23 a person who is a Tier 1 regular employee as defined in Section
24 7-109.4 of this Code or who participated in a retirement
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1 system under Article 15 prior to January 1, 2011 shall be
2 deemed a person who first became a member or participant prior
3 to January 1, 2011 under any retirement system or pension fund
4 subject to this Section. The changes made to this Section by
5 Public Act 98-596 are a clarification of existing law and are
6 intended to be retroactive to January 1, 2011 (the effective
7 date of Public Act 96-889), notwithstanding the provisions of
8 Section 1-103.1 of this Code.
9 This Section does not apply to a person who first becomes a
10 noncovered employee under Article 14 on or after the
11 implementation date of the plan created under Section 1-161
12 for that Article, unless that person elects under subsection
13 (b) of Section 1-161 to instead receive the benefits provided
14 under this Section and the applicable provisions of that
15 Article.
16 This Section does not apply to a person who first becomes a
17 member or participant under Article 16 on or after the
18 implementation date of the plan created under Section 1-161
19 for that Article, unless that person elects under subsection
20 (b) of Section 1-161 to instead receive the benefits provided
21 under this Section and the applicable provisions of that
22 Article.
23 This Section does not apply to a person who elects under
24 subsection (c-5) of Section 1-161 to receive the benefits
25 under Section 1-161.
26 This Section does not apply to a person who first becomes a
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1 member or participant of an affected pension fund on or after 6
2 months after the resolution or ordinance date, as defined in
3 Section 1-162, unless that person elects under subsection (c)
4 of Section 1-162 to receive the benefits provided under this
5 Section and the applicable provisions of the Article under
6 which he or she is a member or participant.
7 This Section does not apply to a person who participates
8 in a defined contribution plan established under Section
9 14-155.5.
10 (b) "Final average salary" means, except as otherwise
11 provided in this subsection, the average monthly (or annual)
12 salary obtained by dividing the total salary or earnings
13 calculated under the Article applicable to the member or
14 participant during the 96 consecutive months (or 8 consecutive
15 years) of service within the last 120 months (or 10 years) of
16 service in which the total salary or earnings calculated under
17 the applicable Article was the highest by the number of months
18 (or years) of service in that period. For the purposes of a
19 person who first becomes a member or participant of any
20 retirement system or pension fund to which this Section
21 applies on or after January 1, 2011, in this Code, "final
22 average salary" shall be substituted for the following:
23 (1) (Blank).
24 (2) In Articles 8, 9, 10, 11, and 12, "highest average
25 annual salary for any 4 consecutive years within the last
26 10 years of service immediately preceding the date of
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1 withdrawal".
2 (3) In Article 13, "average final salary".
3 (4) In Article 14, "final average compensation".
4 (5) In Article 17, "average salary".
5 (6) In Section 22-207, "wages or salary received by
6 him at the date of retirement or discharge".
7 A member of the Teachers' Retirement System of the State
8 of Illinois who retires on or after June 1, 2021 and for whom
9 the 2020-2021 school year is used in the calculation of the
10 member's final average salary shall use the higher of the
11 following for the purpose of determining the member's final
12 average salary:
13 (A) the amount otherwise calculated under the first
14 paragraph of this subsection; or
15 (B) an amount calculated by the Teachers' Retirement
16 System of the State of Illinois using the average of the
17 monthly (or annual) salary obtained by dividing the total
18 salary or earnings calculated under Article 16 applicable
19 to the member or participant during the 96 months (or 8
20 years) of service within the last 120 months (or 10 years)
21 of service in which the total salary or earnings
22 calculated under the Article was the highest by the number
23 of months (or years) of service in that period.
24 (b-5) Beginning on January 1, 2011, for all purposes under
25 this Code (including without limitation the calculation of
26 benefits and employee contributions), the annual earnings,
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1 salary, or wages (based on the plan year) of a member or
2 participant to whom this Section applies shall not exceed
3 $106,800; however, that amount shall annually thereafter be
4 increased by the lesser of (i) 3% of that amount, including all
5 previous adjustments, or (ii) one-half the annual unadjusted
6 percentage increase (but not less than zero) in the consumer
7 price index-u for the 12 months ending with the September
8 preceding each November 1, including all previous adjustments.
9 For the purposes of this Section, "consumer price index-u"
10 means the index published by the Bureau of Labor Statistics of
11 the United States Department of Labor that measures the
12 average change in prices of goods and services purchased by
13 all urban consumers, United States city average, all items,
14 1982-84 = 100. The new amount resulting from each annual
15 adjustment shall be determined by the Public Pension Division
16 of the Department of Insurance and made available to the
17 boards of the retirement systems and pension funds by November
18 1 of each year.
19 (b-10) Beginning on January 1, 2024, for all purposes
20 under this Code (including, without limitation, the
21 calculation of benefits and employee contributions), the
22 annual earnings, salary, or wages (based on the plan year) of a
23 member or participant under Article 9 to whom this Section
24 applies shall include an annual earnings, salary, or wage cap
25 that tracks the Social Security wage base. Maximum annual
26 earnings, wages, or salary shall be the annual contribution
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1 and benefit base established for the applicable year by the
2 Commissioner of the Social Security Administration under the
3 federal Social Security Act.
4 However, in no event shall the annual earnings, salary, or
5 wages for the purposes of this Article and Article 9 exceed any
6 limitation imposed on annual earnings, salary, or wages under
7 Section 1-117. Under no circumstances shall the maximum amount
8 of annual earnings, salary, or wages be greater than the
9 amount set forth in this subsection (b-10) as a result of
10 reciprocal service or any provisions regarding reciprocal
11 services, nor shall the Fund under Article 9 be required to pay
12 any refund as a result of the application of this maximum
13 annual earnings, salary, and wage cap.
14 Nothing in this subsection (b-10) shall cause or otherwise
15 result in any retroactive adjustment of any employee
16 contributions. Nothing in this subsection (b-10) shall cause
17 or otherwise result in any retroactive adjustment of
18 disability or other payments made between January 1, 2011 and
19 January 1, 2024.
20 (c) A member or participant is entitled to a retirement
21 annuity upon written application if he or she has attained age
22 67 (age 65, with respect to service under Article 12 that is
23 subject to this Section, for a member or participant under
24 Article 12 who first becomes a member or participant under
25 Article 12 on or after January 1, 2022 or who makes the
26 election under item (i) of subsection (d-15) of this Section)
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1 and has at least 10 years of service credit and is otherwise
2 eligible under the requirements of the applicable Article.
3 A member or participant who has attained age 62 (age 60,
4 with respect to service under Article 12 that is subject to
5 this Section, for a member or participant under Article 12 who
6 first becomes a member or participant under Article 12 on or
7 after January 1, 2022 or who makes the election under item (i)
8 of subsection (d-15) of this Section) and has at least 10 years
9 of service credit and is otherwise eligible under the
10 requirements of the applicable Article may elect to receive
11 the lower retirement annuity provided in subsection (d) of
12 this Section.
13 (c-5) A person who first becomes a member or a participant
14 subject to this Section on or after July 6, 2017 (the effective
15 date of Public Act 100-23), notwithstanding any other
16 provision of this Code to the contrary, is entitled to a
17 retirement annuity under Article 8 or Article 11 upon written
18 application if he or she has attained age 65 and has at least
19 10 years of service credit and is otherwise eligible under the
20 requirements of Article 8 or Article 11 of this Code,
21 whichever is applicable.
22 (d) The retirement annuity of a member or participant who
23 is retiring after attaining age 62 (age 60, with respect to
24 service under Article 12 that is subject to this Section, for a
25 member or participant under Article 12 who first becomes a
26 member or participant under Article 12 on or after January 1,
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1 2022 or who makes the election under item (i) of subsection
2 (d-15) of this Section) with at least 10 years of service
3 credit shall be reduced by one-half of 1% for each full month
4 that the member's age is under age 67 (age 65, with respect to
5 service under Article 12 that is subject to this Section, for a
6 member or participant under Article 12 who first becomes a
7 member or participant under Article 12 on or after January 1,
8 2022 or who makes the election under item (i) of subsection
9 (d-15) of this Section).
10 (d-5) The retirement annuity payable under Article 8 or
11 Article 11 to an eligible person subject to subsection (c-5)
12 of this Section who is retiring at age 60 with at least 10
13 years of service credit shall be reduced by one-half of 1% for
14 each full month that the member's age is under age 65.
15 (d-10) Each person who first became a member or
16 participant under Article 8 or Article 11 of this Code on or
17 after January 1, 2011 and prior to July 6, 2017 (the effective
18 date of Public Act 100-23) shall make an irrevocable election
19 either:
20 (i) to be eligible for the reduced retirement age
21 provided in subsections (c-5) and (d-5) of this Section,
22 the eligibility for which is conditioned upon the member
23 or participant agreeing to the increases in employee
24 contributions for age and service annuities provided in
25 subsection (a-5) of Section 8-174 of this Code (for
26 service under Article 8) or subsection (a-5) of Section
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1 11-170 of this Code (for service under Article 11); or
2 (ii) to not agree to item (i) of this subsection
3 (d-10), in which case the member or participant shall
4 continue to be subject to the retirement age provisions in
5 subsections (c) and (d) of this Section and the employee
6 contributions for age and service annuity as provided in
7 subsection (a) of Section 8-174 of this Code (for service
8 under Article 8) or subsection (a) of Section 11-170 of
9 this Code (for service under Article 11).
10 The election provided for in this subsection shall be made
11 between October 1, 2017 and November 15, 2017. A person
12 subject to this subsection who makes the required election
13 shall remain bound by that election. A person subject to this
14 subsection who fails for any reason to make the required
15 election within the time specified in this subsection shall be
16 deemed to have made the election under item (ii).
17 (d-15) Each person who first becomes a member or
18 participant under Article 12 on or after January 1, 2011 and
19 prior to January 1, 2022 shall make an irrevocable election
20 either:
21 (i) to be eligible for the reduced retirement age
22 specified in subsections (c) and (d) of this Section, the
23 eligibility for which is conditioned upon the member or
24 participant agreeing to the increase in employee
25 contributions for service annuities specified in
26 subsection (b) of Section 12-150; or
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1 (ii) to not agree to item (i) of this subsection
2 (d-15), in which case the member or participant shall not
3 be eligible for the reduced retirement age specified in
4 subsections (c) and (d) of this Section and shall not be
5 subject to the increase in employee contributions for
6 service annuities specified in subsection (b) of Section
7 12-150.
8 The election provided for in this subsection shall be made
9 between January 1, 2022 and April 1, 2022. A person subject to
10 this subsection who makes the required election shall remain
11 bound by that election. A person subject to this subsection
12 who fails for any reason to make the required election within
13 the time specified in this subsection shall be deemed to have
14 made the election under item (ii).
15 (e) Any retirement annuity or supplemental annuity shall
16 be subject to annual increases on the January 1 occurring
17 either on or after the attainment of age 67 (age 65, with
18 respect to service under Article 12 that is subject to this
19 Section, for a member or participant under Article 12 who
20 first becomes a member or participant under Article 12 on or
21 after January 1, 2022 or who makes the election under item (i)
22 of subsection (d-15); and beginning on July 6, 2017 (the
23 effective date of Public Act 100-23), age 65 with respect to
24 service under Article 8 or Article 11 for eligible persons
25 who: (i) are subject to subsection (c-5) of this Section; or
26 (ii) made the election under item (i) of subsection (d-10) of
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1 this Section) or the first anniversary of the annuity start
2 date, whichever is later. Each annual increase shall be
3 calculated at 3% or one-half the annual unadjusted percentage
4 increase (but not less than zero) in the consumer price
5 index-u for the 12 months ending with the September preceding
6 each November 1, whichever is less, of the originally granted
7 retirement annuity. If the annual unadjusted percentage change
8 in the consumer price index-u for the 12 months ending with the
9 September preceding each November 1 is zero or there is a
10 decrease, then the annuity shall not be increased.
11 For the purposes of Section 1-103.1 of this Code, the
12 changes made to this Section by Public Act 102-263 are
13 applicable without regard to whether the employee was in
14 active service on or after August 6, 2021 (the effective date
15 of Public Act 102-263).
16 For the purposes of Section 1-103.1 of this Code, the
17 changes made to this Section by Public Act 100-23 are
18 applicable without regard to whether the employee was in
19 active service on or after July 6, 2017 (the effective date of
20 Public Act 100-23).
21 (f) The initial survivor's or widow's annuity of an
22 otherwise eligible survivor or widow of a retired member or
23 participant who first became a member or participant on or
24 after January 1, 2011 shall be in the amount of 66 2/3% of the
25 retired member's or participant's retirement annuity at the
26 date of death. In the case of the death of a member or
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1 participant who has not retired and who first became a member
2 or participant on or after January 1, 2011, eligibility for a
3 survivor's or widow's annuity shall be determined by the
4 applicable Article of this Code. The initial benefit shall be
5 66 2/3% of the earned annuity without a reduction due to age. A
6 child's annuity of an otherwise eligible child shall be in the
7 amount prescribed under each Article if applicable. Any
8 survivor's or widow's annuity shall be increased (1) on each
9 January 1 occurring on or after the commencement of the
10 annuity if the deceased member died while receiving a
11 retirement annuity or (2) in other cases, on each January 1
12 occurring after the first anniversary of the commencement of
13 the annuity. Each annual increase shall be calculated at 3% or
14 one-half the annual unadjusted percentage increase (but not
15 less than zero) in the consumer price index-u for the 12 months
16 ending with the September preceding each November 1, whichever
17 is less, of the originally granted survivor's annuity. If the
18 annual unadjusted percentage change in the consumer price
19 index-u for the 12 months ending with the September preceding
20 each November 1 is zero or there is a decrease, then the
21 annuity shall not be increased.
22 (g) The benefits in Section 14-110 apply if the person is a
23 fire fighter in the fire protection service of a department, a
24 security employee of the Department of Corrections or the
25 Department of Juvenile Justice, or a security employee of the
26 Department of Innovation and Technology, as those terms are
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1 defined in subsection (b) and subsection (c) of Section
2 14-110. A person who meets the requirements of this Section is
3 entitled to an annuity calculated under the provisions of
4 Section 14-110, in lieu of the regular or minimum retirement
5 annuity, only if the person has withdrawn from service with
6 not less than 20 years of eligible creditable service and has
7 attained age 60, regardless of whether the attainment of age
8 60 occurs while the person is still in service.
9 (g-5) The benefits in Section 14-110 apply if the person
10 is a State policeman, investigator for the Secretary of State,
11 conservation police officer, investigator for the Department
12 of Revenue or the Illinois Gaming Board, investigator for the
13 Office of the Attorney General, Commerce Commission police
14 officer, or arson investigator, as those terms are defined in
15 subsection (b) and subsection (c) of Section 14-110. A person
16 who meets the requirements of this Section is entitled to an
17 annuity calculated under the provisions of Section 14-110, in
18 lieu of the regular or minimum retirement annuity, only if the
19 person has withdrawn from service with not less than 20 years
20 of eligible creditable service and has attained age 55,
21 regardless of whether the attainment of age 55 occurs while
22 the person is still in service.
23 (h) If a person who first becomes a member or a participant
24 of a retirement system or pension fund subject to this Section
25 on or after January 1, 2011 is receiving a retirement annuity
26 or retirement pension under that system or fund and becomes a
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1 member or participant under any other system or fund created
2 by this Code and is employed on a full-time basis, except for
3 those members or participants exempted from the provisions of
4 this Section under subsection (a) of this Section, then the
5 person's retirement annuity or retirement pension under that
6 system or fund shall be suspended during that employment. Upon
7 termination of that employment, the person's retirement
8 annuity or retirement pension payments shall resume and be
9 recalculated if recalculation is provided for under the
10 applicable Article of this Code.
11 If a person who first becomes a member of a retirement
12 system or pension fund subject to this Section on or after
13 January 1, 2012 and is receiving a retirement annuity or
14 retirement pension under that system or fund and accepts on a
15 contractual basis a position to provide services to a
16 governmental entity from which he or she has retired, then
17 that person's annuity or retirement pension earned as an
18 active employee of the employer shall be suspended during that
19 contractual service. A person receiving an annuity or
20 retirement pension under this Code shall notify the pension
21 fund or retirement system from which he or she is receiving an
22 annuity or retirement pension, as well as his or her
23 contractual employer, of his or her retirement status before
24 accepting contractual employment. A person who fails to submit
25 such notification shall be guilty of a Class A misdemeanor and
26 required to pay a fine of $1,000. Upon termination of that
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1 contractual employment, the person's retirement annuity or
2 retirement pension payments shall resume and, if appropriate,
3 be recalculated under the applicable provisions of this Code.
4 (i) (Blank).
5 (j) In the case of a conflict between the provisions of
6 this Section and any other provision of this Code, the
7 provisions of this Section shall control.
8 (Source: P.A. 101-610, eff. 1-1-20; 102-16, eff. 6-17-21;
9 102-210, eff. 1-1-22; 102-263, eff. 8-6-21; 102-719, eff.
10 5-6-22.)
11 (Text of Section from P.A. 102-813)
12 Sec. 1-160. Provisions applicable to new hires.
13 (a) The provisions of this Section apply to a person who,
14 on or after January 1, 2011, first becomes a member or a
15 participant under any reciprocal retirement system or pension
16 fund established under this Code, other than a retirement
17 system or pension fund established under Article 2, 3, 4, 5, 6,
18 7, 15, or 18 of this Code, notwithstanding any other provision
19 of this Code to the contrary, but do not apply to any
20 self-managed plan established under this Code or to any
21 participant of the retirement plan established under Section
22 22-101; except that this Section applies to a person who
23 elected to establish alternative credits by electing in
24 writing after January 1, 2011, but before August 8, 2011,
25 under Section 7-145.1 of this Code. Notwithstanding anything
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1 to the contrary in this Section, for purposes of this Section,
2 a person who is a Tier 1 regular employee as defined in Section
3 7-109.4 of this Code or who participated in a retirement
4 system under Article 15 prior to January 1, 2011 shall be
5 deemed a person who first became a member or participant prior
6 to January 1, 2011 under any retirement system or pension fund
7 subject to this Section. The changes made to this Section by
8 Public Act 98-596 are a clarification of existing law and are
9 intended to be retroactive to January 1, 2011 (the effective
10 date of Public Act 96-889), notwithstanding the provisions of
11 Section 1-103.1 of this Code.
12 This Section does not apply to a person who first becomes a
13 noncovered employee under Article 14 on or after the
14 implementation date of the plan created under Section 1-161
15 for that Article, unless that person elects under subsection
16 (b) of Section 1-161 to instead receive the benefits provided
17 under this Section and the applicable provisions of that
18 Article.
19 This Section does not apply to a person who first becomes a
20 member or participant under Article 16 on or after the
21 implementation date of the plan created under Section 1-161
22 for that Article, unless that person elects under subsection
23 (b) of Section 1-161 to instead receive the benefits provided
24 under this Section and the applicable provisions of that
25 Article.
26 This Section does not apply to a person who elects under
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1 subsection (c-5) of Section 1-161 to receive the benefits
2 under Section 1-161.
3 This Section does not apply to a person who first becomes a
4 member or participant of an affected pension fund on or after 6
5 months after the resolution or ordinance date, as defined in
6 Section 1-162, unless that person elects under subsection (c)
7 of Section 1-162 to receive the benefits provided under this
8 Section and the applicable provisions of the Article under
9 which he or she is a member or participant.
10 This Section does not apply to a person who participates
11 in a defined contribution plan established under Section
12 14-155.5.
13 (b) "Final average salary" means, except as otherwise
14 provided in this subsection, the average monthly (or annual)
15 salary obtained by dividing the total salary or earnings
16 calculated under the Article applicable to the member or
17 participant during the 96 consecutive months (or 8 consecutive
18 years) of service within the last 120 months (or 10 years) of
19 service in which the total salary or earnings calculated under
20 the applicable Article was the highest by the number of months
21 (or years) of service in that period. For the purposes of a
22 person who first becomes a member or participant of any
23 retirement system or pension fund to which this Section
24 applies on or after January 1, 2011, in this Code, "final
25 average salary" shall be substituted for the following:
26 (1) (Blank).
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1 (2) In Articles 8, 9, 10, 11, and 12, "highest average
2 annual salary for any 4 consecutive years within the last
3 10 years of service immediately preceding the date of
4 withdrawal".
5 (3) In Article 13, "average final salary".
6 (4) In Article 14, "final average compensation".
7 (5) In Article 17, "average salary".
8 (6) In Section 22-207, "wages or salary received by
9 him at the date of retirement or discharge".
10 A member of the Teachers' Retirement System of the State
11 of Illinois who retires on or after June 1, 2021 and for whom
12 the 2020-2021 school year is used in the calculation of the
13 member's final average salary shall use the higher of the
14 following for the purpose of determining the member's final
15 average salary:
16 (A) the amount otherwise calculated under the first
17 paragraph of this subsection; or
18 (B) an amount calculated by the Teachers' Retirement
19 System of the State of Illinois using the average of the
20 monthly (or annual) salary obtained by dividing the total
21 salary or earnings calculated under Article 16 applicable
22 to the member or participant during the 96 months (or 8
23 years) of service within the last 120 months (or 10 years)
24 of service in which the total salary or earnings
25 calculated under the Article was the highest by the number
26 of months (or years) of service in that period.
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1 (b-5) Beginning on January 1, 2011, for all purposes under
2 this Code (including without limitation the calculation of
3 benefits and employee contributions), the annual earnings,
4 salary, or wages (based on the plan year) of a member or
5 participant to whom this Section applies shall not exceed
6 $106,800; however, that amount shall annually thereafter be
7 increased by the lesser of (i) 3% of that amount, including all
8 previous adjustments, or (ii) one-half the annual unadjusted
9 percentage increase (but not less than zero) in the consumer
10 price index-u for the 12 months ending with the September
11 preceding each November 1, including all previous adjustments.
12 For the purposes of this Section, "consumer price index-u"
13 means the index published by the Bureau of Labor Statistics of
14 the United States Department of Labor that measures the
15 average change in prices of goods and services purchased by
16 all urban consumers, United States city average, all items,
17 1982-84 = 100. The new amount resulting from each annual
18 adjustment shall be determined by the Public Pension Division
19 of the Department of Insurance and made available to the
20 boards of the retirement systems and pension funds by November
21 1 of each year.
22 (b-10) Beginning on January 1, 2024, for all purposes
23 under this Code (including, without limitation, the
24 calculation of benefits and employee contributions), the
25 annual earnings, salary, or wages (based on the plan year) of a
26 member or participant under Article 9 to whom this Section
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1 applies shall include an annual earnings, salary, or wage cap
2 that tracks the Social Security wage base. Maximum annual
3 earnings, wages, or salary shall be the annual contribution
4 and benefit base established for the applicable year by the
5 Commissioner of the Social Security Administration under the
6 federal Social Security Act.
7 However, in no event shall the annual earnings, salary, or
8 wages for the purposes of this Article and Article 9 exceed any
9 limitation imposed on annual earnings, salary, or wages under
10 Section 1-117. Under no circumstances shall the maximum amount
11 of annual earnings, salary, or wages be greater than the
12 amount set forth in this subsection (b-10) as a result of
13 reciprocal service or any provisions regarding reciprocal
14 services, nor shall the Fund under Article 9 be required to pay
15 any refund as a result of the application of this maximum
16 annual earnings, salary, and wage cap.
17 Nothing in this subsection (b-10) shall cause or otherwise
18 result in any retroactive adjustment of any employee
19 contributions. Nothing in this subsection (b-10) shall cause
20 or otherwise result in any retroactive adjustment of
21 disability or other payments made between January 1, 2011 and
22 January 1, 2024.
23 (c) A member or participant is entitled to a retirement
24 annuity upon written application if he or she has attained age
25 67 (age 65, with respect to service under Article 12 that is
26 subject to this Section, for a member or participant under
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1 Article 12 who first becomes a member or participant under
2 Article 12 on or after January 1, 2022 or who makes the
3 election under item (i) of subsection (d-15) of this Section)
4 and has at least 10 years of service credit and is otherwise
5 eligible under the requirements of the applicable Article.
6 A member or participant who has attained age 62 (age 60,
7 with respect to service under Article 12 that is subject to
8 this Section, for a member or participant under Article 12 who
9 first becomes a member or participant under Article 12 on or
10 after January 1, 2022 or who makes the election under item (i)
11 of subsection (d-15) of this Section) and has at least 10 years
12 of service credit and is otherwise eligible under the
13 requirements of the applicable Article may elect to receive
14 the lower retirement annuity provided in subsection (d) of
15 this Section.
16 (c-5) A person who first becomes a member or a participant
17 subject to this Section on or after July 6, 2017 (the effective
18 date of Public Act 100-23), notwithstanding any other
19 provision of this Code to the contrary, is entitled to a
20 retirement annuity under Article 8 or Article 11 upon written
21 application if he or she has attained age 65 and has at least
22 10 years of service credit and is otherwise eligible under the
23 requirements of Article 8 or Article 11 of this Code,
24 whichever is applicable.
25 (d) The retirement annuity of a member or participant who
26 is retiring after attaining age 62 (age 60, with respect to
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1 service under Article 12 that is subject to this Section, for a
2 member or participant under Article 12 who first becomes a
3 member or participant under Article 12 on or after January 1,
4 2022 or who makes the election under item (i) of subsection
5 (d-15) of this Section) with at least 10 years of service
6 credit shall be reduced by one-half of 1% for each full month
7 that the member's age is under age 67 (age 65, with respect to
8 service under Article 12 that is subject to this Section, for a
9 member or participant under Article 12 who first becomes a
10 member or participant under Article 12 on or after January 1,
11 2022 or who makes the election under item (i) of subsection
12 (d-15) of this Section).
13 (d-5) The retirement annuity payable under Article 8 or
14 Article 11 to an eligible person subject to subsection (c-5)
15 of this Section who is retiring at age 60 with at least 10
16 years of service credit shall be reduced by one-half of 1% for
17 each full month that the member's age is under age 65.
18 (d-10) Each person who first became a member or
19 participant under Article 8 or Article 11 of this Code on or
20 after January 1, 2011 and prior to July 6, 2017 (the effective
21 date of Public Act 100-23) shall make an irrevocable election
22 either:
23 (i) to be eligible for the reduced retirement age
24 provided in subsections (c-5) and (d-5) of this Section,
25 the eligibility for which is conditioned upon the member
26 or participant agreeing to the increases in employee
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1 contributions for age and service annuities provided in
2 subsection (a-5) of Section 8-174 of this Code (for
3 service under Article 8) or subsection (a-5) of Section
4 11-170 of this Code (for service under Article 11); or
5 (ii) to not agree to item (i) of this subsection
6 (d-10), in which case the member or participant shall
7 continue to be subject to the retirement age provisions in
8 subsections (c) and (d) of this Section and the employee
9 contributions for age and service annuity as provided in
10 subsection (a) of Section 8-174 of this Code (for service
11 under Article 8) or subsection (a) of Section 11-170 of
12 this Code (for service under Article 11).
13 The election provided for in this subsection shall be made
14 between October 1, 2017 and November 15, 2017. A person
15 subject to this subsection who makes the required election
16 shall remain bound by that election. A person subject to this
17 subsection who fails for any reason to make the required
18 election within the time specified in this subsection shall be
19 deemed to have made the election under item (ii).
20 (d-15) Each person who first becomes a member or
21 participant under Article 12 on or after January 1, 2011 and
22 prior to January 1, 2022 shall make an irrevocable election
23 either:
24 (i) to be eligible for the reduced retirement age
25 specified in subsections (c) and (d) of this Section, the
26 eligibility for which is conditioned upon the member or
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1 participant agreeing to the increase in employee
2 contributions for service annuities specified in
3 subsection (b) of Section 12-150; or
4 (ii) to not agree to item (i) of this subsection
5 (d-15), in which case the member or participant shall not
6 be eligible for the reduced retirement age specified in
7 subsections (c) and (d) of this Section and shall not be
8 subject to the increase in employee contributions for
9 service annuities specified in subsection (b) of Section
10 12-150.
11 The election provided for in this subsection shall be made
12 between January 1, 2022 and April 1, 2022. A person subject to
13 this subsection who makes the required election shall remain
14 bound by that election. A person subject to this subsection
15 who fails for any reason to make the required election within
16 the time specified in this subsection shall be deemed to have
17 made the election under item (ii).
18 (e) Any retirement annuity or supplemental annuity shall
19 be subject to annual increases on the January 1 occurring
20 either on or after the attainment of age 67 (age 65, with
21 respect to service under Article 12 that is subject to this
22 Section, for a member or participant under Article 12 who
23 first becomes a member or participant under Article 12 on or
24 after January 1, 2022 or who makes the election under item (i)
25 of subsection (d-15); and beginning on July 6, 2017 (the
26 effective date of Public Act 100-23), age 65 with respect to
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1 service under Article 8 or Article 11 for eligible persons
2 who: (i) are subject to subsection (c-5) of this Section; or
3 (ii) made the election under item (i) of subsection (d-10) of
4 this Section) or the first anniversary of the annuity start
5 date, whichever is later. Each annual increase shall be
6 calculated at 3% or one-half the annual unadjusted percentage
7 increase (but not less than zero) in the consumer price
8 index-u for the 12 months ending with the September preceding
9 each November 1, whichever is less, of the originally granted
10 retirement annuity. If the annual unadjusted percentage change
11 in the consumer price index-u for the 12 months ending with the
12 September preceding each November 1 is zero or there is a
13 decrease, then the annuity shall not be increased.
14 For the purposes of Section 1-103.1 of this Code, the
15 changes made to this Section by Public Act 102-263 are
16 applicable without regard to whether the employee was in
17 active service on or after August 6, 2021 (the effective date
18 of Public Act 102-263).
19 For the purposes of Section 1-103.1 of this Code, the
20 changes made to this Section by Public Act 100-23 are
21 applicable without regard to whether the employee was in
22 active service on or after July 6, 2017 (the effective date of
23 Public Act 100-23).
24 (f) The initial survivor's or widow's annuity of an
25 otherwise eligible survivor or widow of a retired member or
26 participant who first became a member or participant on or
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1 after January 1, 2011 shall be in the amount of 66 2/3% of the
2 retired member's or participant's retirement annuity at the
3 date of death. In the case of the death of a member or
4 participant who has not retired and who first became a member
5 or participant on or after January 1, 2011, eligibility for a
6 survivor's or widow's annuity shall be determined by the
7 applicable Article of this Code. The initial benefit shall be
8 66 2/3% of the earned annuity without a reduction due to age. A
9 child's annuity of an otherwise eligible child shall be in the
10 amount prescribed under each Article if applicable. Any
11 survivor's or widow's annuity shall be increased (1) on each
12 January 1 occurring on or after the commencement of the
13 annuity if the deceased member died while receiving a
14 retirement annuity or (2) in other cases, on each January 1
15 occurring after the first anniversary of the commencement of
16 the annuity. Each annual increase shall be calculated at 3% or
17 one-half the annual unadjusted percentage increase (but not
18 less than zero) in the consumer price index-u for the 12 months
19 ending with the September preceding each November 1, whichever
20 is less, of the originally granted survivor's annuity. If the
21 annual unadjusted percentage change in the consumer price
22 index-u for the 12 months ending with the September preceding
23 each November 1 is zero or there is a decrease, then the
24 annuity shall not be increased.
25 (g) The benefits in Section 14-110 apply only if the
26 person is a State policeman, a fire fighter in the fire
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1 protection service of a department, a conservation police
2 officer, an investigator for the Secretary of State, an arson
3 investigator, a Commerce Commission police officer,
4 investigator for the Department of Revenue or the Illinois
5 Gaming Board, a security employee of the Department of
6 Corrections or the Department of Juvenile Justice, or a
7 security employee of the Department of Innovation and
8 Technology, as those terms are defined in subsection (b) and
9 subsection (c) of Section 14-110. A person who meets the
10 requirements of this Section is entitled to an annuity
11 calculated under the provisions of Section 14-110, in lieu of
12 the regular or minimum retirement annuity, only if the person
13 has withdrawn from service with not less than 20 years of
14 eligible creditable service and has attained age 60,
15 regardless of whether the attainment of age 60 occurs while
16 the person is still in service.
17 (h) If a person who first becomes a member or a participant
18 of a retirement system or pension fund subject to this Section
19 on or after January 1, 2011 is receiving a retirement annuity
20 or retirement pension under that system or fund and becomes a
21 member or participant under any other system or fund created
22 by this Code and is employed on a full-time basis, except for
23 those members or participants exempted from the provisions of
24 this Section under subsection (a) of this Section, then the
25 person's retirement annuity or retirement pension under that
26 system or fund shall be suspended during that employment. Upon
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1 termination of that employment, the person's retirement
2 annuity or retirement pension payments shall resume and be
3 recalculated if recalculation is provided for under the
4 applicable Article of this Code.
5 If a person who first becomes a member of a retirement
6 system or pension fund subject to this Section on or after
7 January 1, 2012 and is receiving a retirement annuity or
8 retirement pension under that system or fund and accepts on a
9 contractual basis a position to provide services to a
10 governmental entity from which he or she has retired, then
11 that person's annuity or retirement pension earned as an
12 active employee of the employer shall be suspended during that
13 contractual service. A person receiving an annuity or
14 retirement pension under this Code shall notify the pension
15 fund or retirement system from which he or she is receiving an
16 annuity or retirement pension, as well as his or her
17 contractual employer, of his or her retirement status before
18 accepting contractual employment. A person who fails to submit
19 such notification shall be guilty of a Class A misdemeanor and
20 required to pay a fine of $1,000. Upon termination of that
21 contractual employment, the person's retirement annuity or
22 retirement pension payments shall resume and, if appropriate,
23 be recalculated under the applicable provisions of this Code.
24 (i) (Blank).
25 (j) In the case of a conflict between the provisions of
26 this Section and any other provision of this Code, the
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1 provisions of this Section shall control.
2 (Source: P.A. 101-610, eff. 1-1-20; 102-16, eff. 6-17-21;
3 102-210, eff. 1-1-22; 102-263, eff. 8-6-21; 102-813, eff.
4 5-13-22.)
5 (Text of Section from P.A. 102-956)
6 Sec. 1-160. Provisions applicable to new hires.
7 (a) The provisions of this Section apply to a person who,
8 on or after January 1, 2011, first becomes a member or a
9 participant under any reciprocal retirement system or pension
10 fund established under this Code, other than a retirement
11 system or pension fund established under Article 2, 3, 4, 5, 6,
12 7, 15, or 18 of this Code, notwithstanding any other provision
13 of this Code to the contrary, but do not apply to any
14 self-managed plan established under this Code or to any
15 participant of the retirement plan established under Section
16 22-101; except that this Section applies to a person who
17 elected to establish alternative credits by electing in
18 writing after January 1, 2011, but before August 8, 2011,
19 under Section 7-145.1 of this Code. Notwithstanding anything
20 to the contrary in this Section, for purposes of this Section,
21 a person who is a Tier 1 regular employee as defined in Section
22 7-109.4 of this Code or who participated in a retirement
23 system under Article 15 prior to January 1, 2011 shall be
24 deemed a person who first became a member or participant prior
25 to January 1, 2011 under any retirement system or pension fund
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1 subject to this Section. The changes made to this Section by
2 Public Act 98-596 are a clarification of existing law and are
3 intended to be retroactive to January 1, 2011 (the effective
4 date of Public Act 96-889), notwithstanding the provisions of
5 Section 1-103.1 of this Code.
6 This Section does not apply to a person who first becomes a
7 noncovered employee under Article 14 on or after the
8 implementation date of the plan created under Section 1-161
9 for that Article, unless that person elects under subsection
10 (b) of Section 1-161 to instead receive the benefits provided
11 under this Section and the applicable provisions of that
12 Article.
13 This Section does not apply to a person who first becomes a
14 member or participant under Article 16 on or after the
15 implementation date of the plan created under Section 1-161
16 for that Article, unless that person elects under subsection
17 (b) of Section 1-161 to instead receive the benefits provided
18 under this Section and the applicable provisions of that
19 Article.
20 This Section does not apply to a person who elects under
21 subsection (c-5) of Section 1-161 to receive the benefits
22 under Section 1-161.
23 This Section does not apply to a person who first becomes a
24 member or participant of an affected pension fund on or after 6
25 months after the resolution or ordinance date, as defined in
26 Section 1-162, unless that person elects under subsection (c)
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1 of Section 1-162 to receive the benefits provided under this
2 Section and the applicable provisions of the Article under
3 which he or she is a member or participant.
4 This Section does not apply to a person who participates
5 in a defined contribution plan established under Section
6 14-155.5.
7 (b) "Final average salary" means, except as otherwise
8 provided in this subsection, the average monthly (or annual)
9 salary obtained by dividing the total salary or earnings
10 calculated under the Article applicable to the member or
11 participant during the 96 consecutive months (or 8 consecutive
12 years) of service within the last 120 months (or 10 years) of
13 service in which the total salary or earnings calculated under
14 the applicable Article was the highest by the number of months
15 (or years) of service in that period. For the purposes of a
16 person who first becomes a member or participant of any
17 retirement system or pension fund to which this Section
18 applies on or after January 1, 2011, in this Code, "final
19 average salary" shall be substituted for the following:
20 (1) (Blank).
21 (2) In Articles 8, 9, 10, 11, and 12, "highest average
22 annual salary for any 4 consecutive years within the last
23 10 years of service immediately preceding the date of
24 withdrawal".
25 (3) In Article 13, "average final salary".
26 (4) In Article 14, "final average compensation".
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1 (5) In Article 17, "average salary".
2 (6) In Section 22-207, "wages or salary received by
3 him at the date of retirement or discharge".
4 A member of the Teachers' Retirement System of the State
5 of Illinois who retires on or after June 1, 2021 and for whom
6 the 2020-2021 school year is used in the calculation of the
7 member's final average salary shall use the higher of the
8 following for the purpose of determining the member's final
9 average salary:
10 (A) the amount otherwise calculated under the first
11 paragraph of this subsection; or
12 (B) an amount calculated by the Teachers' Retirement
13 System of the State of Illinois using the average of the
14 monthly (or annual) salary obtained by dividing the total
15 salary or earnings calculated under Article 16 applicable
16 to the member or participant during the 96 months (or 8
17 years) of service within the last 120 months (or 10 years)
18 of service in which the total salary or earnings
19 calculated under the Article was the highest by the number
20 of months (or years) of service in that period.
21 (b-5) Beginning on January 1, 2011, for all purposes under
22 this Code (including without limitation the calculation of
23 benefits and employee contributions), the annual earnings,
24 salary, or wages (based on the plan year) of a member or
25 participant to whom this Section applies shall not exceed
26 $106,800; however, that amount shall annually thereafter be
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1 increased by the lesser of (i) 3% of that amount, including all
2 previous adjustments, or (ii) one-half the annual unadjusted
3 percentage increase (but not less than zero) in the consumer
4 price index-u for the 12 months ending with the September
5 preceding each November 1, including all previous adjustments.
6 For the purposes of this Section, "consumer price index-u"
7 means the index published by the Bureau of Labor Statistics of
8 the United States Department of Labor that measures the
9 average change in prices of goods and services purchased by
10 all urban consumers, United States city average, all items,
11 1982-84 = 100. The new amount resulting from each annual
12 adjustment shall be determined by the Public Pension Division
13 of the Department of Insurance and made available to the
14 boards of the retirement systems and pension funds by November
15 1 of each year.
16 (b-10) Beginning on January 1, 2024, for all purposes
17 under this Code (including, without limitation, the
18 calculation of benefits and employee contributions), the
19 annual earnings, salary, or wages (based on the plan year) of a
20 member or participant under Article 9 to whom this Section
21 applies shall include an annual earnings, salary, or wage cap
22 that tracks the Social Security wage base. Maximum annual
23 earnings, wages, or salary shall be the annual contribution
24 and benefit base established for the applicable year by the
25 Commissioner of the Social Security Administration under the
26 federal Social Security Act.
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1 However, in no event shall the annual earnings, salary, or
2 wages for the purposes of this Article and Article 9 exceed any
3 limitation imposed on annual earnings, salary, or wages under
4 Section 1-117. Under no circumstances shall the maximum amount
5 of annual earnings, salary, or wages be greater than the
6 amount set forth in this subsection (b-10) as a result of
7 reciprocal service or any provisions regarding reciprocal
8 services, nor shall the Fund under Article 9 be required to pay
9 any refund as a result of the application of this maximum
10 annual earnings, salary, and wage cap.
11 Nothing in this subsection (b-10) shall cause or otherwise
12 result in any retroactive adjustment of any employee
13 contributions. Nothing in this subsection (b-10) shall cause
14 or otherwise result in any retroactive adjustment of
15 disability or other payments made between January 1, 2011 and
16 January 1, 2024.
17 (c) A member or participant is entitled to a retirement
18 annuity upon written application if he or she has attained age
19 67 (age 65, with respect to service under Article 12 that is
20 subject to this Section, for a member or participant under
21 Article 12 who first becomes a member or participant under
22 Article 12 on or after January 1, 2022 or who makes the
23 election under item (i) of subsection (d-15) of this Section)
24 and has at least 10 years of service credit and is otherwise
25 eligible under the requirements of the applicable Article.
26 A member or participant who has attained age 62 (age 60,
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1 with respect to service under Article 12 that is subject to
2 this Section, for a member or participant under Article 12 who
3 first becomes a member or participant under Article 12 on or
4 after January 1, 2022 or who makes the election under item (i)
5 of subsection (d-15) of this Section) and has at least 10 years
6 of service credit and is otherwise eligible under the
7 requirements of the applicable Article may elect to receive
8 the lower retirement annuity provided in subsection (d) of
9 this Section.
10 (c-5) A person who first becomes a member or a participant
11 subject to this Section on or after July 6, 2017 (the effective
12 date of Public Act 100-23), notwithstanding any other
13 provision of this Code to the contrary, is entitled to a
14 retirement annuity under Article 8 or Article 11 upon written
15 application if he or she has attained age 65 and has at least
16 10 years of service credit and is otherwise eligible under the
17 requirements of Article 8 or Article 11 of this Code,
18 whichever is applicable.
19 (d) The retirement annuity of a member or participant who
20 is retiring after attaining age 62 (age 60, with respect to
21 service under Article 12 that is subject to this Section, for a
22 member or participant under Article 12 who first becomes a
23 member or participant under Article 12 on or after January 1,
24 2022 or who makes the election under item (i) of subsection
25 (d-15) of this Section) with at least 10 years of service
26 credit shall be reduced by one-half of 1% for each full month
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1 that the member's age is under age 67 (age 65, with respect to
2 service under Article 12 that is subject to this Section, for a
3 member or participant under Article 12 who first becomes a
4 member or participant under Article 12 on or after January 1,
5 2022 or who makes the election under item (i) of subsection
6 (d-15) of this Section).
7 (d-5) The retirement annuity payable under Article 8 or
8 Article 11 to an eligible person subject to subsection (c-5)
9 of this Section who is retiring at age 60 with at least 10
10 years of service credit shall be reduced by one-half of 1% for
11 each full month that the member's age is under age 65.
12 (d-10) Each person who first became a member or
13 participant under Article 8 or Article 11 of this Code on or
14 after January 1, 2011 and prior to July 6, 2017 (the effective
15 date of Public Act 100-23) shall make an irrevocable election
16 either:
17 (i) to be eligible for the reduced retirement age
18 provided in subsections (c-5) and (d-5) of this Section,
19 the eligibility for which is conditioned upon the member
20 or participant agreeing to the increases in employee
21 contributions for age and service annuities provided in
22 subsection (a-5) of Section 8-174 of this Code (for
23 service under Article 8) or subsection (a-5) of Section
24 11-170 of this Code (for service under Article 11); or
25 (ii) to not agree to item (i) of this subsection
26 (d-10), in which case the member or participant shall
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1 continue to be subject to the retirement age provisions in
2 subsections (c) and (d) of this Section and the employee
3 contributions for age and service annuity as provided in
4 subsection (a) of Section 8-174 of this Code (for service
5 under Article 8) or subsection (a) of Section 11-170 of
6 this Code (for service under Article 11).
7 The election provided for in this subsection shall be made
8 between October 1, 2017 and November 15, 2017. A person
9 subject to this subsection who makes the required election
10 shall remain bound by that election. A person subject to this
11 subsection who fails for any reason to make the required
12 election within the time specified in this subsection shall be
13 deemed to have made the election under item (ii).
14 (d-15) Each person who first becomes a member or
15 participant under Article 12 on or after January 1, 2011 and
16 prior to January 1, 2022 shall make an irrevocable election
17 either:
18 (i) to be eligible for the reduced retirement age
19 specified in subsections (c) and (d) of this Section, the
20 eligibility for which is conditioned upon the member or
21 participant agreeing to the increase in employee
22 contributions for service annuities specified in
23 subsection (b) of Section 12-150; or
24 (ii) to not agree to item (i) of this subsection
25 (d-15), in which case the member or participant shall not
26 be eligible for the reduced retirement age specified in
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1 subsections (c) and (d) of this Section and shall not be
2 subject to the increase in employee contributions for
3 service annuities specified in subsection (b) of Section
4 12-150.
5 The election provided for in this subsection shall be made
6 between January 1, 2022 and April 1, 2022. A person subject to
7 this subsection who makes the required election shall remain
8 bound by that election. A person subject to this subsection
9 who fails for any reason to make the required election within
10 the time specified in this subsection shall be deemed to have
11 made the election under item (ii).
12 (e) Any retirement annuity or supplemental annuity shall
13 be subject to annual increases on the January 1 occurring
14 either on or after the attainment of age 67 (age 65, with
15 respect to service under Article 12 that is subject to this
16 Section, for a member or participant under Article 12 who
17 first becomes a member or participant under Article 12 on or
18 after January 1, 2022 or who makes the election under item (i)
19 of subsection (d-15); and beginning on July 6, 2017 (the
20 effective date of Public Act 100-23), age 65 with respect to
21 service under Article 8 or Article 11 for eligible persons
22 who: (i) are subject to subsection (c-5) of this Section; or
23 (ii) made the election under item (i) of subsection (d-10) of
24 this Section) or the first anniversary of the annuity start
25 date, whichever is later. Each annual increase shall be
26 calculated at 3% or one-half the annual unadjusted percentage
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1 increase (but not less than zero) in the consumer price
2 index-u for the 12 months ending with the September preceding
3 each November 1, whichever is less, of the originally granted
4 retirement annuity. If the annual unadjusted percentage change
5 in the consumer price index-u for the 12 months ending with the
6 September preceding each November 1 is zero or there is a
7 decrease, then the annuity shall not be increased.
8 For the purposes of Section 1-103.1 of this Code, the
9 changes made to this Section by Public Act 102-263 are
10 applicable without regard to whether the employee was in
11 active service on or after August 6, 2021 (the effective date
12 of Public Act 102-263).
13 For the purposes of Section 1-103.1 of this Code, the
14 changes made to this Section by Public Act 100-23 are
15 applicable without regard to whether the employee was in
16 active service on or after July 6, 2017 (the effective date of
17 Public Act 100-23).
18 (f) The initial survivor's or widow's annuity of an
19 otherwise eligible survivor or widow of a retired member or
20 participant who first became a member or participant on or
21 after January 1, 2011 shall be in the amount of 66 2/3% of the
22 retired member's or participant's retirement annuity at the
23 date of death. In the case of the death of a member or
24 participant who has not retired and who first became a member
25 or participant on or after January 1, 2011, eligibility for a
26 survivor's or widow's annuity shall be determined by the
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1 applicable Article of this Code. The initial benefit shall be
2 66 2/3% of the earned annuity without a reduction due to age. A
3 child's annuity of an otherwise eligible child shall be in the
4 amount prescribed under each Article if applicable. Any
5 survivor's or widow's annuity shall be increased (1) on each
6 January 1 occurring on or after the commencement of the
7 annuity if the deceased member died while receiving a
8 retirement annuity or (2) in other cases, on each January 1
9 occurring after the first anniversary of the commencement of
10 the annuity. Each annual increase shall be calculated at 3% or
11 one-half the annual unadjusted percentage increase (but not
12 less than zero) in the consumer price index-u for the 12 months
13 ending with the September preceding each November 1, whichever
14 is less, of the originally granted survivor's annuity. If the
15 annual unadjusted percentage change in the consumer price
16 index-u for the 12 months ending with the September preceding
17 each November 1 is zero or there is a decrease, then the
18 annuity shall not be increased.
19 (g) The benefits in Section 14-110 apply only if the
20 person is a State policeman, a fire fighter in the fire
21 protection service of a department, a conservation police
22 officer, an investigator for the Secretary of State, an
23 investigator for the Office of the Attorney General, an arson
24 investigator, a Commerce Commission police officer,
25 investigator for the Department of Revenue or the Illinois
26 Gaming Board, a security employee of the Department of
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1 Corrections or the Department of Juvenile Justice, or a
2 security employee of the Department of Innovation and
3 Technology, as those terms are defined in subsection (b) and
4 subsection (c) of Section 14-110. A person who meets the
5 requirements of this Section is entitled to an annuity
6 calculated under the provisions of Section 14-110, in lieu of
7 the regular or minimum retirement annuity, only if the person
8 has withdrawn from service with not less than 20 years of
9 eligible creditable service and has attained age 60,
10 regardless of whether the attainment of age 60 occurs while
11 the person is still in service.
12 (h) If a person who first becomes a member or a participant
13 of a retirement system or pension fund subject to this Section
14 on or after January 1, 2011 is receiving a retirement annuity
15 or retirement pension under that system or fund and becomes a
16 member or participant under any other system or fund created
17 by this Code and is employed on a full-time basis, except for
18 those members or participants exempted from the provisions of
19 this Section under subsection (a) of this Section, then the
20 person's retirement annuity or retirement pension under that
21 system or fund shall be suspended during that employment. Upon
22 termination of that employment, the person's retirement
23 annuity or retirement pension payments shall resume and be
24 recalculated if recalculation is provided for under the
25 applicable Article of this Code.
26 If a person who first becomes a member of a retirement
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1 system or pension fund subject to this Section on or after
2 January 1, 2012 and is receiving a retirement annuity or
3 retirement pension under that system or fund and accepts on a
4 contractual basis a position to provide services to a
5 governmental entity from which he or she has retired, then
6 that person's annuity or retirement pension earned as an
7 active employee of the employer shall be suspended during that
8 contractual service. A person receiving an annuity or
9 retirement pension under this Code shall notify the pension
10 fund or retirement system from which he or she is receiving an
11 annuity or retirement pension, as well as his or her
12 contractual employer, of his or her retirement status before
13 accepting contractual employment. A person who fails to submit
14 such notification shall be guilty of a Class A misdemeanor and
15 required to pay a fine of $1,000. Upon termination of that
16 contractual employment, the person's retirement annuity or
17 retirement pension payments shall resume and, if appropriate,
18 be recalculated under the applicable provisions of this Code.
19 (i) (Blank).
20 (j) In the case of a conflict between the provisions of
21 this Section and any other provision of this Code, the
22 provisions of this Section shall control.
23 (Source: P.A. 102-16, eff. 6-17-21; 102-210, eff. 1-1-22;
24 102-263, eff. 8-6-21; 102-956, eff. 5-27-22; 103-529, eff.
25 8-11-23.)
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1 (40 ILCS 5/1-161)
2 Sec. 1-161. Optional benefits for certain Tier 2 members
3 under Articles 14, 15, and 16.
4 (a) Notwithstanding any other provision of this Code to
5 the contrary, the provisions of this Section apply to a person
6 who first becomes a member or a participant under Article 14,
7 15, or 16 on or after the implementation date under this
8 Section for the applicable Article and who does not make the
9 election under subsection (b) or (c), whichever applies. The
10 provisions of this Section also apply to a person who makes the
11 election under subsection (c-5). However, the provisions of
12 this Section do not apply to any participant in a self-managed
13 plan or a defined contribution plan established under Section
14 14-155.5, nor to a covered employee under Article 14.
15 As used in this Section and Section 1-160, the
16 "implementation date" under this Section means the earliest
17 date upon which the board of a retirement system authorizes
18 members of that system to begin participating in accordance
19 with this Section, as determined by the board of that
20 retirement system. Each of the retirement systems subject to
21 this Section shall endeavor to make such participation
22 available as soon as possible after the effective date of this
23 Section and shall establish an implementation date by board
24 resolution.
25 (b) In lieu of the benefits provided under this Section, a
26 member or participant, except for a participant under Article
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1 15, may irrevocably elect the benefits under Section 1-160 and
2 the benefits otherwise applicable to that member or
3 participant. The election must be made within 30 days after
4 becoming a member or participant. Each retirement system shall
5 establish procedures for making this election.
6 (c) A participant under Article 15 may irrevocably elect
7 the benefits otherwise provided to a Tier 2 member under
8 Article 15. The election must be made within 30 days after
9 becoming a member. The retirement system under Article 15
10 shall establish procedures for making this election.
11 (c-5) A non-covered participant under Article 14 to whom
12 Section 1-160 applies, a Tier 2 member under Article 15, or a
13 participant under Article 16 to whom Section 1-160 applies may
14 irrevocably elect to receive the benefits under this Section
15 in lieu of the benefits under Section 1-160 or the benefits
16 otherwise available to a Tier 2 member under Article 15,
17 whichever is applicable. Each retirement System shall
18 establish procedures for making this election.
19 (d) "Final average salary" means the average monthly (or
20 annual) salary obtained by dividing the total salary or
21 earnings calculated under the Article applicable to the member
22 or participant during the last 120 months (or 10 years) of
23 service in which the total salary or earnings calculated under
24 the applicable Article was the highest by the number of months
25 (or years) of service in that period. For the purposes of a
26 person to whom this Section applies, in this Code, "final
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1 average salary" shall be substituted for "final average
2 compensation" in Article 14.
3 (e) Beginning on the implementation date, for all purposes
4 under this Code (including without limitation the calculation
5 of benefits and employee contributions), the annual earnings,
6 salary, compensation, or wages (based on the plan year) of a
7 member or participant to whom this Section applies shall not
8 at any time exceed the federal Social Security Wage Base then
9 in effect.
10 (f) A member or participant is entitled to a retirement
11 annuity upon written application if he or she has attained the
12 normal retirement age determined by the Social Security
13 Administration for that member or participant's year of birth,
14 but no earlier than 67 years of age, and has at least 10 years
15 of service credit and is otherwise eligible under the
16 requirements of the applicable Article.
17 (g) The amount of the retirement annuity to which a member
18 or participant is entitled shall be computed by multiplying
19 1.25% for each year of service credit by his or her final
20 average salary.
21 (h) Any retirement annuity or supplemental annuity shall
22 be subject to annual increases on the first anniversary of the
23 annuity start date. Each annual increase shall be one-half the
24 annual unadjusted percentage increase (but not less than zero)
25 in the consumer price index-w for the 12 months ending with the
26 September preceding each November 1 of the originally granted
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1 retirement annuity. If the annual unadjusted percentage change
2 in the consumer price index-w for the 12 months ending with the
3 September preceding each November 1 is zero or there is a
4 decrease, then the annuity shall not be increased.
5 For the purposes of this Section, "consumer price index-w"
6 means the index published by the Bureau of Labor Statistics of
7 the United States Department of Labor that measures the
8 average change in prices of goods and services purchased by
9 Urban Wage Earners and Clerical Workers, United States city
10 average, all items, 1982-84 = 100. The new amount resulting
11 from each annual adjustment shall be determined by the Public
12 Pension Division of the Department of Insurance and made
13 available to the boards of the retirement systems and pension
14 funds by November 1 of each year.
15 (i) The initial survivor's or widow's annuity of an
16 otherwise eligible survivor or widow of a retired member or
17 participant to whom this Section applies shall be in the
18 amount of 66 2/3% of the retired member's or participant's
19 retirement annuity at the date of death. In the case of the
20 death of a member or participant who has not retired and to
21 whom this Section applies, eligibility for a survivor's or
22 widow's annuity shall be determined by the applicable Article
23 of this Code. The benefit shall be 66 2/3% of the earned
24 annuity without a reduction due to age. A child's annuity of an
25 otherwise eligible child shall be in the amount prescribed
26 under each Article if applicable.
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1 (j) In lieu of any other employee contributions, except
2 for the contribution to the defined contribution plan under
3 subsection (k) of this Section, each employee shall contribute
4 6.2% of his her or salary to the retirement system. However,
5 the employee contribution under this subsection shall not
6 exceed the amount of the total normal cost of the benefits for
7 all members making contributions under this Section (except
8 for the defined contribution plan under subsection (k) of this
9 Section), expressed as a percentage of payroll and certified
10 on or before January 15 of each year by the board of trustees
11 of the retirement system. If the board of trustees of the
12 retirement system certifies that the 6.2% employee
13 contribution rate exceeds the normal cost of the benefits
14 under this Section (except for the defined contribution plan
15 under subsection (k) of this Section), then on or before
16 December 1 of that year, the board of trustees shall certify
17 the amount of the normal cost of the benefits under this
18 Section (except for the defined contribution plan under
19 subsection (k) of this Section), expressed as a percentage of
20 payroll, to the State Actuary and the Commission on Government
21 Forecasting and Accountability, and the employee contribution
22 under this subsection shall be reduced to that amount
23 beginning July 1 of that year. Thereafter, if the normal cost
24 of the benefits under this Section (except for the defined
25 contribution plan under subsection (k) of this Section),
26 expressed as a percentage of payroll and certified on or
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1 before January 1 of each year by the board of trustees of the
2 retirement system, exceeds 6.2% of salary, then on or before
3 January 15 of that year, the board of trustees shall certify
4 the normal cost to the State Actuary and the Commission on
5 Government Forecasting and Accountability, and the employee
6 contributions shall revert back to 6.2% of salary beginning
7 January 1 of the following year.
8 (k) In accordance with each retirement system's
9 implementation date, each retirement system under Article 14,
10 15, or 16 shall prepare and implement a defined contribution
11 plan for members or participants who are subject to this
12 Section. The defined contribution plan developed under this
13 subsection shall be a plan that aggregates employer and
14 employee contributions in individual participant accounts
15 which, after meeting any other requirements, are used for
16 payouts after retirement in accordance with this subsection
17 and any other applicable laws.
18 (1) Each member or participant shall contribute a
19 minimum of 4% of his or her salary to the defined
20 contribution plan.
21 (2) For each participant in the defined contribution
22 plan who has been employed with the same employer for at
23 least one year, employer contributions shall be paid into
24 that participant's accounts at a rate expressed as a
25 percentage of salary. This rate may be set for individual
26 employees, but shall be no higher than 6% of salary and
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1 shall be no lower than 2% of salary.
2 (3) Employer contributions shall vest when those
3 contributions are paid into a member's or participant's
4 account.
5 (4) The defined contribution plan shall provide a
6 variety of options for investments. These options shall
7 include investments handled by the Illinois State Board of
8 Investment as well as private sector investment options.
9 (5) The defined contribution plan shall provide a
10 variety of options for payouts to retirees and their
11 survivors.
12 (6) To the extent authorized under federal law and as
13 authorized by the retirement system, the defined
14 contribution plan shall allow former participants in the
15 plan to transfer or roll over employee and employer
16 contributions, and the earnings thereon, into other
17 qualified retirement plans.
18 (7) Each retirement system shall reduce the employee
19 contributions credited to the member's defined
20 contribution plan account by an amount determined by that
21 retirement system to cover the cost of offering the
22 benefits under this subsection and any applicable
23 administrative fees.
24 (8) No person shall begin participating in the defined
25 contribution plan until it has attained qualified plan
26 status and received all necessary approvals from the U.S.
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1 Internal Revenue Service.
2 (l) In the case of a conflict between the provisions of
3 this Section and any other provision of this Code, the
4 provisions of this Section shall control.
5 (Source: P.A. 100-23, eff. 7-6-17.)
6 (40 ILCS 5/14-103.05) (from Ch. 108 1/2, par. 14-103.05)
7 Sec. 14-103.05. Employee.
8 (a) Except as provided in subsection (e), any Any person
9 employed by a Department who receives salary for personal
10 services rendered to the Department on a warrant issued
11 pursuant to a payroll voucher certified by a Department and
12 drawn by the State Comptroller upon the State Treasurer,
13 including an elected official described in subparagraph (d) of
14 Section 14-104, shall become an employee for purpose of
15 membership in the Retirement System on the first day of such
16 employment.
17 A person entering service on or after January 1, 1972 and
18 prior to January 1, 1984 shall become a member as a condition
19 of employment and shall begin making contributions as of the
20 first day of employment.
21 A person entering service on or after January 1, 1984
22 shall, upon completion of 6 months of continuous service which
23 is not interrupted by a break of more than 2 months, become a
24 member as a condition of employment. Contributions shall begin
25 the first of the month after completion of the qualifying
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1 period.
2 A person employed by the Chicago Metropolitan Agency for
3 Planning on the effective date of this amendatory Act of the
4 95th General Assembly who was a member of this System as an
5 employee of the Chicago Area Transportation Study and makes an
6 election under Section 14-104.13 to participate in this System
7 for his or her employment with the Chicago Metropolitan Agency
8 for Planning.
9 The qualifying period of 6 months of service is not
10 applicable to: (1) a person who has been granted credit for
11 service in a position covered by the State Universities
12 Retirement System, the Teachers' Retirement System of the
13 State of Illinois, the General Assembly Retirement System, or
14 the Judges Retirement System of Illinois unless that service
15 has been forfeited under the laws of those systems; (2) a
16 person entering service on or after July 1, 1991 in a
17 noncovered position; (3) a person to whom Section 14-108.2a or
18 14-108.2b applies; or (4) a person to whom subsection (a-5) of
19 this Section applies.
20 (a-5) Except as provided in subsection (e), a A person
21 entering service on or after December 1, 2010 and before the
22 effective date of this amendatory Act of the 103rd General
23 Assembly shall become a member as a condition of employment
24 and shall begin making contributions as of the first day of
25 employment. A person serving in the qualifying period on
26 December 1, 2010 will become a member on December 1, 2010 and
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1 shall begin making contributions as of December 1, 2010.
2 (b) The term "employee" does not include the following:
3 (1) members of the State Legislature, and persons
4 electing to become members of the General Assembly
5 Retirement System pursuant to Section 2-105;
6 (2) incumbents of offices normally filled by vote of
7 the people;
8 (3) except as otherwise provided in this Section, any
9 person appointed by the Governor with the advice and
10 consent of the Senate unless that person elects to
11 participate in this system;
12 (3.1) any person serving as a commissioner of an
13 ethics commission created under the State Officials and
14 Employees Ethics Act unless that person elects to
15 participate in this system with respect to that service as
16 a commissioner;
17 (3.2) any person serving as a part-time employee in
18 any of the following positions: Legislative Inspector
19 General, Special Legislative Inspector General, employee
20 of the Office of the Legislative Inspector General,
21 Executive Director of the Legislative Ethics Commission,
22 or staff of the Legislative Ethics Commission, regardless
23 of whether he or she is in active service on or after July
24 8, 2004 (the effective date of Public Act 93-685), unless
25 that person elects to participate in this System with
26 respect to that service; in this item (3.2), a "part-time
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1 employee" is a person who is not required to work at least
2 35 hours per week;
3 (3.3) any person who has made an election under
4 Section 1-123 and who is serving either as legal counsel
5 in the Office of the Governor or as Chief Deputy Attorney
6 General;
7 (4) except as provided in Section 14-108.2 or
8 14-108.2c, any person who is covered or eligible to be
9 covered by the Teachers' Retirement System of the State of
10 Illinois, the State Universities Retirement System, or the
11 Judges Retirement System of Illinois;
12 (5) an employee of a municipality or any other
13 political subdivision of the State;
14 (6) any person who becomes an employee after June 30,
15 1979 as a public service employment program participant
16 under the Federal Comprehensive Employment and Training
17 Act and whose wages or fringe benefits are paid in whole or
18 in part by funds provided under such Act;
19 (7) enrollees of the Illinois Young Adult Conservation
20 Corps program, administered by the Department of Natural
21 Resources, authorized grantee pursuant to Title VIII of
22 the "Comprehensive Employment and Training Act of 1973",
23 29 USC 993, as now or hereafter amended;
24 (8) enrollees and temporary staff of programs
25 administered by the Department of Natural Resources under
26 the Youth Conservation Corps Act of 1970;
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1 (9) any person who is a member of any professional
2 licensing or disciplinary board created under an Act
3 administered by the Department of Professional Regulation
4 or a successor agency or created or re-created after the
5 effective date of this amendatory Act of 1997, and who
6 receives per diem compensation rather than a salary,
7 notwithstanding that such per diem compensation is paid by
8 warrant issued pursuant to a payroll voucher; such persons
9 have never been included in the membership of this System,
10 and this amendatory Act of 1987 (P.A. 84-1472) is not
11 intended to effect any change in the status of such
12 persons;
13 (10) any person who is a member of the Illinois Health
14 Care Cost Containment Council, and receives per diem
15 compensation rather than a salary, notwithstanding that
16 such per diem compensation is paid by warrant issued
17 pursuant to a payroll voucher; such persons have never
18 been included in the membership of this System, and this
19 amendatory Act of 1987 is not intended to effect any
20 change in the status of such persons;
21 (11) any person who is a member of the Oil and Gas
22 Board created by Section 1.2 of the Illinois Oil and Gas
23 Act, and receives per diem compensation rather than a
24 salary, notwithstanding that such per diem compensation is
25 paid by warrant issued pursuant to a payroll voucher;
26 (12) a person employed by the State Board of Higher
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1 Education in a position with the Illinois Century Network
2 as of June 30, 2004, who remains continuously employed
3 after that date by the Department of Central Management
4 Services in a position with the Illinois Century Network
5 and participates in the Article 15 system with respect to
6 that employment;
7 (13) any person who first becomes a member of the
8 Civil Service Commission on or after January 1, 2012;
9 (14) any person, other than the Director of Employment
10 Security, who first becomes a member of the Board of
11 Review of the Department of Employment Security on or
12 after January 1, 2012;
13 (15) any person who first becomes a member of the
14 Civil Service Commission on or after January 1, 2012;
15 (16) any person who first becomes a member of the
16 Illinois Liquor Control Commission on or after January 1,
17 2012;
18 (17) any person who first becomes a member of the
19 Secretary of State Merit Commission on or after January 1,
20 2012;
21 (18) any person who first becomes a member of the
22 Human Rights Commission on or after January 1, 2012 unless
23 he or she is eligible to participate in accordance with
24 subsection (d) of this Section;
25 (19) any person who first becomes a member of the
26 State Mining Board on or after January 1, 2012;
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1 (20) any person who first becomes a member of the
2 Property Tax Appeal Board on or after January 1, 2012;
3 (21) any person who first becomes a member of the
4 Illinois Racing Board on or after January 1, 2012;
5 (22) any person who first becomes a member of the
6 Illinois State Police Merit Board on or after January 1,
7 2012;
8 (23) any person who first becomes a member of the
9 Illinois State Toll Highway Authority on or after January
10 1, 2012; or
11 (24) any person who first becomes a member of the
12 Illinois State Board of Elections on or after January 1,
13 2012.
14 (c) An individual who represents or is employed as an
15 officer or employee of a statewide labor organization that
16 represents members of this System may participate in the
17 System and shall be deemed an employee, provided that (1) the
18 individual has previously earned creditable service under this
19 Article, (2) the individual files with the System an
20 irrevocable election to become a participant within 6 months
21 after the effective date of this amendatory Act of the 94th
22 General Assembly, and (3) the individual does not receive
23 credit for that employment under any other provisions of this
24 Code. An employee under this subsection (c) is responsible for
25 paying to the System both (i) employee contributions based on
26 the actual compensation received for service with the labor
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1 organization and (ii) employer contributions based on the
2 percentage of payroll certified by the board; all or any part
3 of these contributions may be paid on the employee's behalf or
4 picked up for tax purposes (if authorized under federal law)
5 by the labor organization.
6 A person who is an employee as defined in this subsection
7 (c) may establish service credit for similar employment prior
8 to becoming an employee under this subsection by paying to the
9 System for that employment the contributions specified in this
10 subsection, plus interest at the effective rate from the date
11 of service to the date of payment. However, credit shall not be
12 granted under this subsection (c) for any such prior
13 employment for which the applicant received credit under any
14 other provision of this Code or during which the applicant was
15 on a leave of absence.
16 (d) A person appointed as a member of the Human Rights
17 Commission on or after June 1, 2019 may elect to participate in
18 the System and shall be deemed an employee. Service and
19 contributions shall begin on the first payroll period
20 immediately following the employee's election to participate
21 in the System.
22 A person who is an employee as described in this
23 subsection (d) may establish service credit for employment as
24 a Human Rights Commissioner that occurred on or after June 1,
25 2019 and before establishing service under this subsection by
26 paying to the System for that employment the contributions
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1 specified in paragraph (1) of subsection (a) of Section
2 14-133, plus regular interest from the date of service to the
3 date of payment.
4 (e) Notwithstanding any other provision of this Article, a
5 person who first becomes an employee after the effective date
6 of this amendatory Act of the 103rd General Assembly is not
7 required, as a condition of employment or otherwise, to
8 participate in this System. An employee may elect not to
9 participate in this System by notifying the System in a manner
10 specified by the System.
11 (Source: P.A. 101-10, eff. 6-5-19; 102-538, eff. 8-20-21.)
12 (40 ILCS 5/14-103.41)
13 Sec. 14-103.41. Tier 1 member; Tier 2 member; defined
14 contribution plan member. "Tier 1 member": A member of this
15 System who first became a member or participant before January
16 1, 2011 under any reciprocal retirement system or pension fund
17 established under this Code other than a retirement system or
18 pension fund established under Article 2, 3, 4, 5, 6, or 18 of
19 this Code.
20 In the case of a Tier 1 member who elects to participate in
21 the defined contribution plan under Section 14-155.5 of this
22 Code, that Tier 1 member shall be deemed a Tier 1 member only
23 with respect to service performed or established before the
24 effective date of that election.
25 "Tier 2 member": A member of this System who first becomes
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1 a member under this Article on or after January 1, 2011 and who
2 is not a Tier 1 member.
3 In the case of a Tier 2 member who elects to participate in
4 the defined contribution plan under Section 14-155.5 of this
5 Code, that Tier 2 member shall be deemed a Tier 2 member only
6 with respect to service performed or established before the
7 effective date of that election.
8 "Defined contribution plan member": A Tier 1 or Tier 2
9 member who elects to participate in the defined contribution
10 plan under Section 14-155.5 of this Code, but only with
11 respect to service performed on or after the effective date of
12 that election.
13 (Source: P.A. 100-587, eff. 6-4-18.)
14 (40 ILCS 5/14-152.1)
15 Sec. 14-152.1. Application and expiration of new benefit
16 increases.
17 (a) As used in this Section, "new benefit increase" means
18 an increase in the amount of any benefit provided under this
19 Article, or an expansion of the conditions of eligibility for
20 any benefit under this Article, that results from an amendment
21 to this Code that takes effect after June 1, 2005 (the
22 effective date of Public Act 94-4). "New benefit increase",
23 however, does not include any benefit increase resulting from
24 the changes made to Article 1 or this Article by Public Act
25 96-37, Public Act 100-23, Public Act 100-587, Public Act
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1 100-611, Public Act 101-10, Public Act 101-610, Public Act
2 102-210, Public Act 102-856, Public Act 102-956, or this
3 amendatory Act of the 103rd General Assembly or this
4 amendatory Act of the 102nd General Assembly.
5 (b) Notwithstanding any other provision of this Code or
6 any subsequent amendment to this Code, every new benefit
7 increase is subject to this Section and shall be deemed to be
8 granted only in conformance with and contingent upon
9 compliance with the provisions of this Section.
10 (c) The Public Act enacting a new benefit increase must
11 identify and provide for payment to the System of additional
12 funding at least sufficient to fund the resulting annual
13 increase in cost to the System as it accrues.
14 Every new benefit increase is contingent upon the General
15 Assembly providing the additional funding required under this
16 subsection. The Commission on Government Forecasting and
17 Accountability shall analyze whether adequate additional
18 funding has been provided for the new benefit increase and
19 shall report its analysis to the Public Pension Division of
20 the Department of Insurance. A new benefit increase created by
21 a Public Act that does not include the additional funding
22 required under this subsection is null and void. If the Public
23 Pension Division determines that the additional funding
24 provided for a new benefit increase under this subsection is
25 or has become inadequate, it may so certify to the Governor and
26 the State Comptroller and, in the absence of corrective action
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1 by the General Assembly, the new benefit increase shall expire
2 at the end of the fiscal year in which the certification is
3 made.
4 (d) Every new benefit increase shall expire 5 years after
5 its effective date or on such earlier date as may be specified
6 in the language enacting the new benefit increase or provided
7 under subsection (c). This does not prevent the General
8 Assembly from extending or re-creating a new benefit increase
9 by law.
10 (e) Except as otherwise provided in the language creating
11 the new benefit increase, a new benefit increase that expires
12 under this Section continues to apply to persons who applied
13 and qualified for the affected benefit while the new benefit
14 increase was in effect and to the affected beneficiaries and
15 alternate payees of such persons, but does not apply to any
16 other person, including, without limitation, a person who
17 continues in service after the expiration date and did not
18 apply and qualify for the affected benefit while the new
19 benefit increase was in effect.
20 (Source: P.A. 101-10, eff. 6-5-19; 101-81, eff. 7-12-19;
21 101-610, eff. 1-1-20; 102-210, eff. 7-30-21; 102-856, eff.
22 1-1-23; 102-956, eff. 5-27-22.)
23 (40 ILCS 5/14-155.5 new)
24 Sec. 14-155.5. Defined contribution plan.
25 (a) As used in this Section, "defined benefit plan" means
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1 the retirement plan available under this Article to Tier 1 or
2 Tier 2 members who have not made the election authorized under
3 this Section.
4 (b) By July 1, 2026, the System shall prepare and
5 implement a defined contribution plan. The defined
6 contribution plan developed under this Section shall be a plan
7 that aggregates State and employee contributions in individual
8 participant accounts that, after meeting any other
9 requirements, are used for payouts after retirement in
10 accordance with this Section and any other applicable laws.
11 (1) Participation in the defined contribution plan for
12 persons who elect to participate shall begin on July 1,
13 2026. For persons who elect to participate on or after
14 July 1, 2026, participation in the defined contribution
15 plan shall begin as soon as practical after the election
16 is made.
17 (2) A participant in the defined contribution plan
18 shall pay employee contributions at a rate determined by
19 the participant, but not less than 3% of compensation and
20 not more than a percentage of compensation determined by
21 the board in accordance with the requirements of State and
22 federal law.
23 (3) State contributions shall be paid into the
24 accounts of all participants in the defined contribution
25 plan at a uniform rate, expressed as a percentage of
26 compensation and determined for each year. This rate shall
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1 be no higher than 7.6% of compensation and shall be no
2 lower than 3% of compensation. The State shall adjust this
3 rate annually.
4 (4) The defined contribution plan shall require 5
5 years of participation in the defined contribution plan
6 before vesting in State contributions. If the participant
7 fails to vest in them, the State contributions, and the
8 earnings thereon, shall be forfeited.
9 (5) The defined contribution plan may provide for
10 participants in the plan to be eligible for the defined
11 disability benefits available to other participants under
12 this Article. If it does, the System shall reduce the
13 employee contributions credited to the member's defined
14 contribution plan account by an amount determined by the
15 System to cover the cost of offering such benefits.
16 (6) The defined contribution plan shall provide a
17 variety of options for investments. These options shall
18 include investments handled by the Illinois State Board of
19 Investment as well as private sector investment options.
20 (7) The defined contribution plan shall provide a
21 variety of options for payouts to participants in the
22 defined contribution plan who are no longer active in the
23 System and their survivors.
24 (8) To the extent authorized under federal law and as
25 authorized by the System, the plan shall allow former
26 participants in the plan to transfer or roll over employee
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1 and vested State contributions, and the earnings thereon,
2 from the defined contribution plan into other qualified
3 retirement plans.
4 (9) The System shall reduce the employee contributions
5 credited to the member's defined contribution plan account
6 by an amount determined by the System to cover the cost of
7 offering these benefits and any applicable administrative
8 fees.
9 (b) Under the defined contribution plan, an active Tier 1
10 or Tier 2 member of this System may elect, in writing, to cease
11 accruing benefits in the defined benefit plan and begin
12 accruing benefits for future service in the defined
13 contribution plan. The election to participate in the defined
14 contribution plan is voluntary and irrevocable.
15 (1) Service credit under the defined contribution plan
16 may be used for determining retirement eligibility under
17 the defined benefit plan.
18 (2) On or before December 31, 2025, the System shall
19 notify all active Tier 1 and Tier 2 members who are
20 eligible to participate in the defined contribution plan.
21 The System shall mail information describing the option to
22 join the defined contribution plan to each of these
23 employees to his or her last known address on file with the
24 System. If the employee is not responsive to other means
25 of contact, it is sufficient for the System to publish the
26 details of the option on its website. Active Tier 1 and
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1 Tier 2 members who are notified by the System under this
2 paragraph must make the election to participate in the
3 defined contribution plan on or before December 31, 2025.
4 (3) If a person becomes an active participant of this
5 System on or after January 1, 2026, the System shall
6 notify the participant within one month after he or she
7 became an active participant that he or she is eligible to
8 participate in the defined contribution plan. The notice
9 shall be provided in the manner specified in paragraph (2)
10 of this subsection. The election to participate in the
11 defined contribution plan must be made as soon as
12 practical after the active participant is notified under
13 this paragraph.
14 (4) Upon request for further information describing
15 the option, the System shall provide employees with
16 information from the System before exercising the option
17 to join the plan, including information on the impact to
18 their benefits and service. The individual consultation
19 shall include projections of the member's defined benefits
20 at retirement or earlier termination of service and the
21 value of the member's account at retirement or earlier
22 termination of service. The System shall not provide
23 advice or counseling with respect to whether the employee
24 should exercise the option. The System shall inform Tier 1
25 and Tier 2 members who are eligible to participate in the
26 defined contribution plan that they may also wish to
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1 obtain information and counsel relating to their option
2 from any other available source, including but not limited
3 to labor organizations, private counsel, and financial
4 advisors.
5 (c) A Tier 1 or Tier 2 member who elects to participate in
6 the defined contribution plan may irrevocably elect to
7 terminate all participation in the defined benefit plan. Upon
8 that election, the System shall transfer to the member's
9 individual account an amount equal to the amount of
10 contribution refund that the member would be eligible to
11 receive if the member terminated employment on that date and
12 elected a refund of contributions, including regular interest
13 for the respective years. The System shall make the transfer
14 as a tax-free transfer in accordance with Internal Revenue
15 Service guidelines, for purposes of funding the amount
16 credited to the member's individual account.
17 (d) In no event shall the System, its staff, its
18 authorized representatives, or the Board be liable for any
19 information given to an employee under this Section. The
20 System may coordinate with the Department of Central
21 Management Services in accordance with this amendatory Act of
22 the 103rd General Assembly to provide information concerning
23 the impact of the defined contribution plan set forth in this
24 Section.
25 (e) Notwithstanding any other provision of this Section,
26 no person shall begin participating in the defined
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1 contribution plan until it has attained qualified plan status
2 and received all necessary approvals from the U.S. Internal
3 Revenue Service.
4 (f) The System shall report on its progress under this
5 Section, including the available details of the defined
6 contribution plan and the System's plans for informing
7 eligible Tier 1 and Tier 2 members about the plan, to the
8 Governor and the General Assembly on or before January 15,
9 2025.
10 (g) The Illinois State Board of Investment shall be the
11 plan sponsor for the defined contribution plan established
12 under this Section.
13 (h) The intent of this amendatory Act of the 103rd General
14 Assembly is to ensure that the State's normal cost of
15 participation in the defined contribution plan is similar, and
16 if possible equal, to the State's normal cost of participation
17 in the defined benefit plan, unless a lower State's normal
18 cost is necessary to ensure cost neutrality.
19 (40 ILCS 5/20-121) (from Ch. 108 1/2, par. 20-121)
20 (Text of Section WITHOUT the changes made by P.A. 98-599,
21 which has been held unconstitutional)
22 Sec. 20-121. Calculation of proportional retirement
23 annuities.
24 (a) Upon retirement of the employee, a proportional
25 retirement annuity shall be computed by each participating
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1 system in which pension credit has been established on the
2 basis of pension credits under each system. The computation
3 shall be in accordance with the formula or method prescribed
4 by each participating system which is in effect at the date of
5 the employee's latest withdrawal from service covered by any
6 of the systems in which he has pension credits which he elects
7 to have considered under this Article. However, the amount of
8 any retirement annuity payable under the self-managed plan
9 established under Section 15-158.2 of this Code depends solely
10 on the value of the participant's vested account balances and
11 is not subject to any proportional adjustment under this
12 Section.
13 (a-5) For persons who participate in a defined
14 contribution plan established under Article 14 of this Code to
15 whom the provisions of this Article apply, the pension credits
16 established under the defined contribution plan may be
17 considered in determining eligibility for or the amount of the
18 defined benefit retirement annuity that is payable by any
19 other participating system.
20 (b) Combined pension credit under all retirement systems
21 subject to this Article shall be considered in determining
22 whether the minimum qualification has been met and the formula
23 or method of computation which shall be applied, except as may
24 be otherwise provided with respect to vesting in State or
25 employer contributions in a defined contribution plan. If a
26 system has a step-rate formula for calculation of the
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1 retirement annuity, pension credits covering previous service
2 which have been established under another system shall be
3 considered in determining which range or ranges of the
4 step-rate formula are to be applicable to the employee.
5 (c) Interest on pension credit shall continue to
6 accumulate in accordance with the provisions of the law
7 governing the retirement system in which the same has been
8 established during the time an employee is in the service of
9 another employer, on the assumption such employee, for
10 interest purposes for pension credit, is continuing in the
11 service covered by such retirement system.
12 (Source: P.A. 91-887, eff. 7-6-00.)
13 (40 ILCS 5/20-123) (from Ch. 108 1/2, par. 20-123)
14 (Text of Section WITHOUT the changes made by P.A. 98-599,
15 which has been held unconstitutional)
16 Sec. 20-123. Survivor's annuity. The provisions governing
17 a retirement annuity shall be applicable to a survivor's
18 annuity. Appropriate credits shall be established for
19 survivor's annuity purposes in those participating systems
20 which provide survivor's annuities, according to the same
21 conditions and subject to the same limitations and
22 restrictions herein prescribed for a retirement annuity. If a
23 participating system has no survivor's annuity benefit, or if
24 the survivor's annuity benefit under that system is waived,
25 pension credit established in that system shall not be
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1 considered in determining eligibility for or the amount of the
2 survivor's annuity which may be payable by any other
3 participating system.
4 For persons who participate in the self-managed plan
5 established under Section 15-158.2 or the portable benefit
6 package established under Section 15-136.4, pension credit
7 established under Article 15 may be considered in determining
8 eligibility for or the amount of the survivor's annuity that
9 is payable by any other participating system, but pension
10 credit established in any other system shall not result in any
11 right to a survivor's annuity under the Article 15 system.
12 For persons who participate in a defined contribution plan
13 established under Article 14 of this Code to whom the
14 provisions of this Article apply, the pension credits
15 established under the defined contribution plan may be
16 considered in determining eligibility for or the amount of the
17 defined benefit survivor's annuity that is payable by any
18 other participating system, but pension credits established in
19 any other system shall not result in any right to or increase
20 in the value of a survivor's annuity under the defined
21 contribution plan, which depends solely on the options chosen
22 and the value of the participant's vested account balances and
23 is not subject to any proportional adjustment under this
24 Section.
25 (Source: P.A. 91-887, eff. 7-6-00.)
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1 (40 ILCS 5/20-124) (from Ch. 108 1/2, par. 20-124)
2 (Text of Section WITHOUT the changes made by P.A. 98-599,
3 which has been held unconstitutional)
4 Sec. 20-124. Maximum benefits.
5 (a) In no event shall the combined retirement or survivors
6 annuities exceed the highest annuity which would have been
7 payable by any participating system in which the employee has
8 pension credits, if all of his pension credits had been
9 validated in that system.
10 If the combined annuities should exceed the highest
11 maximum as determined in accordance with this Section, the
12 respective annuities shall be reduced proportionately
13 according to the ratio which the amount of each proportional
14 annuity bears to the aggregate of all such annuities.
15 (b) In the case of a participant in the self-managed plan
16 established under Section 15-158.2 of this Code to whom the
17 provisions of this Article apply:
18 (i) For purposes of calculating the combined
19 retirement annuity and the proportionate reduction, if
20 any, in a retirement annuity other than one payable under
21 the self-managed plan, the amount of the Article 15
22 retirement annuity shall be deemed to be the highest
23 annuity to which the annuitant would have been entitled if
24 he or she had participated in the traditional benefit
25 package as defined in Section 15-103.1 rather than the
26 self-managed plan.
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1 (ii) For purposes of calculating the combined
2 survivor's annuity and the proportionate reduction, if
3 any, in a survivor's annuity other than one payable under
4 the self-managed plan, the amount of the Article 15
5 survivor's annuity shall be deemed to be the highest
6 survivor's annuity to which the survivor would have been
7 entitled if the deceased employee had participated in the
8 traditional benefit package as defined in Section 15-103.1
9 rather than the self-managed plan.
10 (iii) Benefits payable under the self-managed plan are
11 not subject to proportionate reduction under this Section.
12 (c) In the case of a participant in a defined contribution
13 plan established under Article 14 of this Code to whom the
14 provisions of this Article apply:
15 (i) For purposes of calculating the combined
16 retirement annuity and the proportionate reduction, if
17 any, in a defined benefit retirement annuity, any benefit
18 payable under the defined contribution plan shall not be
19 considered.
20 (ii) For purposes of calculating the combined
21 survivor's annuity and the proportionate reduction, if
22 any, in a defined benefit survivor's annuity, any benefit
23 payable under the defined contribution plan shall not be
24 considered.
25 (iii) Benefits payable under a defined contribution
26 plan established under Article 14 of this Code are not
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1 subject to proportionate reduction under this Section.
2 (Source: P.A. 91-887, eff. 7-6-00.)
3 (40 ILCS 5/20-125) (from Ch. 108 1/2, par. 20-125)
4 (Text of Section WITHOUT the changes made by P.A. 98-599,
5 which has been held unconstitutional)
6 Sec. 20-125. Return to employment - suspension of
7 benefits. If a retired employee returns to employment which is
8 covered by a system from which he is receiving a proportional
9 annuity under this Article, his proportional annuity from all
10 participating systems shall be suspended during the period of
11 re-employment, except that this suspension does not apply to
12 any distributions payable under the self-managed plan
13 established under Section 15-158.2 of this Code or under a
14 defined contribution plan established under Article 14 of this
15 Code.
16 The provisions of the Article under which such employment
17 would be covered shall govern the determination of whether the
18 employee has returned to employment, and if applicable the
19 exemption of temporary employment or employment not exceeding
20 a specified duration or frequency, for all participating
21 systems from which the retired employee is receiving a
22 proportional annuity under this Article, notwithstanding any
23 contrary provisions in the other Articles governing such
24 systems.
25 (Source: P.A. 91-887, eff. 7-6-00.)
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