Illinois 2023-2024 Regular Session

Illinois Senate Bill SB3628 Compare Versions

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

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1	1	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB3628 Introduced 2/9/2024, by Sen. Doris Turner SYNOPSIS AS INTRODUCED: See Index Amends the Illinois Pension Code. Provides that a security employee of the Department of Corrections or the Department of Juvenile Justice under the Tier 2 provisions is entitled to an annuity calculated under the alternative retirement formula, in lieu of the regular or minimum retirement annuity, only if the person has withdrawn from service with not less than 20 years of eligible creditable service and has attained age 55 (instead of age 60). With regard to Tier 2 members and participants under the Illinois Municipal Retirement Fund (IMRF), Chicago Municipal, Cook County, State Employees, and State Universities Article: changes the retirement age to age 60 with 20 years of service or age 67 with 10 years of service; changes the final average salary calculation to the total salary during the 60 months (instead of 96 months) of service within the last 120 months of service in which the total salary was the highest; rescinds an election for certain benefits for persons under the Chicago Municipal Article; provides that the automatic annual increase in retirement annuity shall be calculated at 3% or one-half the annual unadjusted increase in the consumer-price index-u, whichever is greater (instead of whichever is less) of the originally granted retirement annuity; and makes other changes. Provides that the changes made by the amendatory Act are intended to be retroactive to January 1, 2011 and are applicable without regard to whether a member or participant was in active service on or after the effective date. Amends the State Mandates Act to require implementation without reimbursement. LRB103 37668 RPS 67795 b STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB3628 Introduced 2/9/2024, by Sen. Doris Turner SYNOPSIS AS INTRODUCED: See Index See Index Amends the Illinois Pension Code. Provides that a security employee of the Department of Corrections or the Department of Juvenile Justice under the Tier 2 provisions is entitled to an annuity calculated under the alternative retirement formula, in lieu of the regular or minimum retirement annuity, only if the person has withdrawn from service with not less than 20 years of eligible creditable service and has attained age 55 (instead of age 60). With regard to Tier 2 members and participants under the Illinois Municipal Retirement Fund (IMRF), Chicago Municipal, Cook County, State Employees, and State Universities Article: changes the retirement age to age 60 with 20 years of service or age 67 with 10 years of service; changes the final average salary calculation to the total salary during the 60 months (instead of 96 months) of service within the last 120 months of service in which the total salary was the highest; rescinds an election for certain benefits for persons under the Chicago Municipal Article; provides that the automatic annual increase in retirement annuity shall be calculated at 3% or one-half the annual unadjusted increase in the consumer-price index-u, whichever is greater (instead of whichever is less) of the originally granted retirement annuity; and makes other changes. Provides that the changes made by the amendatory Act are intended to be retroactive to January 1, 2011 and are applicable without regard to whether a member or participant was in active service on or after the effective date. Amends the State Mandates Act to require implementation without reimbursement. LRB103 37668 RPS 67795 b LRB103 37668 RPS 67795 b STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY A BILL FOR
2	2	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB3628 Introduced 2/9/2024, by Sen. Doris Turner SYNOPSIS AS INTRODUCED:
3	3	See Index See Index
4	4	See Index
5	5	Amends the Illinois Pension Code. Provides that a security employee of the Department of Corrections or the Department of Juvenile Justice under the Tier 2 provisions is entitled to an annuity calculated under the alternative retirement formula, in lieu of the regular or minimum retirement annuity, only if the person has withdrawn from service with not less than 20 years of eligible creditable service and has attained age 55 (instead of age 60). With regard to Tier 2 members and participants under the Illinois Municipal Retirement Fund (IMRF), Chicago Municipal, Cook County, State Employees, and State Universities Article: changes the retirement age to age 60 with 20 years of service or age 67 with 10 years of service; changes the final average salary calculation to the total salary during the 60 months (instead of 96 months) of service within the last 120 months of service in which the total salary was the highest; rescinds an election for certain benefits for persons under the Chicago Municipal Article; provides that the automatic annual increase in retirement annuity shall be calculated at 3% or one-half the annual unadjusted increase in the consumer-price index-u, whichever is greater (instead of whichever is less) of the originally granted retirement annuity; and makes other changes. Provides that the changes made by the amendatory Act are intended to be retroactive to January 1, 2011 and are applicable without regard to whether a member or participant was in active service on or after the effective date. Amends the State Mandates Act to require implementation without reimbursement.
6	6	LRB103 37668 RPS 67795 b LRB103 37668 RPS 67795 b
7	7	LRB103 37668 RPS 67795 b
8	8	STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY
9	9	STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY
10	10	A BILL FOR
11	11	SB3628LRB103 37668 RPS 67795 b SB3628 LRB103 37668 RPS 67795 b
12	12	SB3628 LRB103 37668 RPS 67795 b
13	13	1 AN ACT concerning public employee benefits.
14	14	2 Be it enacted by the People of the State of Illinois,
15	15	3 represented in the General Assembly:
16	16	4 Section 5. The Illinois Pension Code is amended by
17	17	5 changing Sections 1-160, 14-152.1, and 15-198 and by adding
18	18	6 Sections 1-103.4, 1-163, 7-226, 8-251.5, 9-242, 14-157, and
19	19	7 15-203 as follows:
20	20	8 (40 ILCS 5/1-103.4 new)
21	21	9 Sec. 1-103.4. Application of this amendatory Act of the
22	22	10 103rd General Assembly. The changes made by this amendatory
23	23	11 Act of the 103rd General Assembly are intended to be
24	24	12 retroactive to January 1, 2011 and are applicable without
25	25	13 regard to whether a member or participant was in active
26	26	14 service on or after the effective date of this amendatory Act
27	27	15 of the 103rd General Assembly, notwithstanding Section
28	28	16 1-103.1.
29	29	17 (40 ILCS 5/1-160)
30	30	18 (Text of Section from P.A. 102-719)
31	31	19 Sec. 1-160. Provisions applicable to new hires.
32	32	20 (a) The provisions of this Section apply to a person who,
33	33	21 on or after January 1, 2011, first becomes a member or a
34	34	22 participant under any reciprocal retirement system or pension
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38	38	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB3628 Introduced 2/9/2024, by Sen. Doris Turner SYNOPSIS AS INTRODUCED:
39	39	See Index See Index
40	40	See Index
41	41	Amends the Illinois Pension Code. Provides that a security employee of the Department of Corrections or the Department of Juvenile Justice under the Tier 2 provisions is entitled to an annuity calculated under the alternative retirement formula, in lieu of the regular or minimum retirement annuity, only if the person has withdrawn from service with not less than 20 years of eligible creditable service and has attained age 55 (instead of age 60). With regard to Tier 2 members and participants under the Illinois Municipal Retirement Fund (IMRF), Chicago Municipal, Cook County, State Employees, and State Universities Article: changes the retirement age to age 60 with 20 years of service or age 67 with 10 years of service; changes the final average salary calculation to the total salary during the 60 months (instead of 96 months) of service within the last 120 months of service in which the total salary was the highest; rescinds an election for certain benefits for persons under the Chicago Municipal Article; provides that the automatic annual increase in retirement annuity shall be calculated at 3% or one-half the annual unadjusted increase in the consumer-price index-u, whichever is greater (instead of whichever is less) of the originally granted retirement annuity; and makes other changes. Provides that the changes made by the amendatory Act are intended to be retroactive to January 1, 2011 and are applicable without regard to whether a member or participant was in active service on or after the effective date. Amends the State Mandates Act to require implementation without reimbursement.
42	42	LRB103 37668 RPS 67795 b LRB103 37668 RPS 67795 b
43	43	LRB103 37668 RPS 67795 b
44	44	STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY
45	45	STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY
46	46	A BILL FOR
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52	52	See Index
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58	58	STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY
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75	75	1 fund established under this Code, other than a retirement
76	76	2 system or pension fund established under Article 2, 3, 4, 5, 6,
77	77	3 7, 15, or 18 of this Code, notwithstanding any other provision
78	78	4 of this Code to the contrary, but do not apply to any
79	79	5 self-managed plan established under this Code or to any
80	80	6 participant of the retirement plan established under Section
81	81	7 22-101; except that this Section applies to a person who
82	82	8 elected to establish alternative credits by electing in
83	83	9 writing after January 1, 2011, but before August 8, 2011,
84	84	10 under Section 7-145.1 of this Code. Notwithstanding anything
85	85	11 to the contrary in this Section, for purposes of this Section,
86	86	12 a person who is a Tier 1 regular employee as defined in Section
87	87	13 7-109.4 of this Code or who participated in a retirement
88	88	14 system under Article 15 prior to January 1, 2011 shall be
89	89	15 deemed a person who first became a member or participant prior
90	90	16 to January 1, 2011 under any retirement system or pension fund
91	91	17 subject to this Section. The changes made to this Section by
92	92	18 Public Act 98-596 are a clarification of existing law and are
93	93	19 intended to be retroactive to January 1, 2011 (the effective
94	94	20 date of Public Act 96-889), notwithstanding the provisions of
95	95	21 Section 1-103.1 of this Code.
96	96	22 This Section does not apply to a person who first becomes a
97	97	23 noncovered employee under Article 14 on or after the
98	98	24 implementation date of the plan created under Section 1-161
99	99	25 for that Article, unless that person elects under subsection
100	100	26 (b) of Section 1-161 to instead receive the benefits provided
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111	111	1 under this Section and the applicable provisions of that
112	112	2 Article.
113	113	3 This Section does not apply to a person who first becomes a
114	114	4 member or participant under Article 16 on or after the
115	115	5 implementation date of the plan created under Section 1-161
116	116	6 for that Article, unless that person elects under subsection
117	117	7 (b) of Section 1-161 to instead receive the benefits provided
118	118	8 under this Section and the applicable provisions of that
119	119	9 Article.
120	120	10 This Section does not apply to a person who elects under
121	121	11 subsection (c-5) of Section 1-161 to receive the benefits
122	122	12 under Section 1-161.
123	123	13 This Section does not apply to a person who first becomes a
124	124	14 member or participant of an affected pension fund on or after 6
125	125	15 months after the resolution or ordinance date, as defined in
126	126	16 Section 1-162, unless that person elects under subsection (c)
127	127	17 of Section 1-162 to receive the benefits provided under this
128	128	18 Section and the applicable provisions of the Article under
129	129	19 which he or she is a member or participant.
130	130	20 (b) "Final average salary" means, except as otherwise
131	131	21 provided in this subsection, the average monthly (or annual)
132	132	22 salary obtained by dividing the total salary or earnings
133	133	23 calculated under the Article applicable to the member or
134	134	24 participant during the 96 consecutive months (or 8 consecutive
135	135	25 years) of service within the last 120 months (or 10 years) of
136	136	26 service in which the total salary or earnings calculated under
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147	147	1 the applicable Article was the highest by the number of months
148	148	2 (or years) of service in that period. For the purposes of a
149	149	3 person who first becomes a member or participant of any
150	150	4 retirement system or pension fund to which this Section
151	151	5 applies on or after January 1, 2011, in this Code, "final
152	152	6 average salary" shall be substituted for the following:
153	153	7 (1) (Blank).
154	154	8 (2) In Articles 8, 9, 10, 11, and 12, "highest average
155	155	9 annual salary for any 4 consecutive years within the last
156	156	10 10 years of service immediately preceding the date of
157	157	11 withdrawal".
158	158	12 (3) In Article 13, "average final salary".
159	159	13 (4) In Article 14, "final average compensation".
160	160	14 (5) In Article 17, "average salary".
161	161	15 (6) In Section 22-207, "wages or salary received by
162	162	16 him at the date of retirement or discharge".
163	163	17 A member of the Teachers' Retirement System of the State
164	164	18 of Illinois who retires on or after June 1, 2021 and for whom
165	165	19 the 2020-2021 school year is used in the calculation of the
166	166	20 member's final average salary shall use the higher of the
167	167	21 following for the purpose of determining the member's final
168	168	22 average salary:
169	169	23 (A) the amount otherwise calculated under the first
170	170	24 paragraph of this subsection; or
171	171	25 (B) an amount calculated by the Teachers' Retirement
172	172	26 System of the State of Illinois using the average of the
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183	183	1 monthly (or annual) salary obtained by dividing the total
184	184	2 salary or earnings calculated under Article 16 applicable
185	185	3 to the member or participant during the 96 months (or 8
186	186	4 years) of service within the last 120 months (or 10 years)
187	187	5 of service in which the total salary or earnings
188	188	6 calculated under the Article was the highest by the number
189	189	7 of months (or years) of service in that period.
190	190	8 (b-5) Beginning on January 1, 2011, for all purposes under
191	191	9 this Code (including without limitation the calculation of
192	192	10 benefits and employee contributions), the annual earnings,
193	193	11 salary, or wages (based on the plan year) of a member or
194	194	12 participant to whom this Section applies shall not exceed
195	195	13 $106,800; however, that amount shall annually thereafter be
196	196	14 increased by the lesser of (i) 3% of that amount, including all
197	197	15 previous adjustments, or (ii) one-half the annual unadjusted
198	198	16 percentage increase (but not less than zero) in the consumer
199	199	17 price index-u for the 12 months ending with the September
200	200	18 preceding each November 1, including all previous adjustments.
201	201	19 For the purposes of this Section, "consumer price index-u"
202	202	20 means the index published by the Bureau of Labor Statistics of
203	203	21 the United States Department of Labor that measures the
204	204	22 average change in prices of goods and services purchased by
205	205	23 all urban consumers, United States city average, all items,
206	206	24 1982-84 = 100. The new amount resulting from each annual
207	207	25 adjustment shall be determined by the Public Pension Division
208	208	26 of the Department of Insurance and made available to the
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219	219	1 boards of the retirement systems and pension funds by November
220	220	2 1 of each year.
221	221	3 (b-10) Beginning on January 1, 2024, for all purposes
222	222	4 under this Code (including, without limitation, the
223	223	5 calculation of benefits and employee contributions), the
224	224	6 annual earnings, salary, or wages (based on the plan year) of a
225	225	7 member or participant under Article 9 to whom this Section
226	226	8 applies shall include an annual earnings, salary, or wage cap
227	227	9 that tracks the Social Security wage base. Maximum annual
228	228	10 earnings, wages, or salary shall be the annual contribution
229	229	11 and benefit base established for the applicable year by the
230	230	12 Commissioner of the Social Security Administration under the
231	231	13 federal Social Security Act.
232	232	14 However, in no event shall the annual earnings, salary, or
233	233	15 wages for the purposes of this Article and Article 9 exceed any
234	234	16 limitation imposed on annual earnings, salary, or wages under
235	235	17 Section 1-117. Under no circumstances shall the maximum amount
236	236	18 of annual earnings, salary, or wages be greater than the
237	237	19 amount set forth in this subsection (b-10) as a result of
238	238	20 reciprocal service or any provisions regarding reciprocal
239	239	21 services, nor shall the Fund under Article 9 be required to pay
240	240	22 any refund as a result of the application of this maximum
241	241	23 annual earnings, salary, and wage cap.
242	242	24 Nothing in this subsection (b-10) shall cause or otherwise
243	243	25 result in any retroactive adjustment of any employee
244	244	26 contributions. Nothing in this subsection (b-10) shall cause
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255	255	1 or otherwise result in any retroactive adjustment of
256	256	2 disability or other payments made between January 1, 2011 and
257	257	3 January 1, 2024.
258	258	4 (c) A member or participant is entitled to a retirement
259	259	5 annuity upon written application if he or she has attained age
260	260	6 67 (age 65, with respect to service under Article 12 that is
261	261	7 subject to this Section, for a member or participant under
262	262	8 Article 12 who first becomes a member or participant under
263	263	9 Article 12 on or after January 1, 2022 or who makes the
264	264	10 election under item (i) of subsection (d-15) of this Section)
265	265	11 and has at least 10 years of service credit and is otherwise
266	266	12 eligible under the requirements of the applicable Article.
267	267	13 A member or participant who has attained age 62 (age 60,
268	268	14 with respect to service under Article 12 that is subject to
269	269	15 this Section, for a member or participant under Article 12 who
270	270	16 first becomes a member or participant under Article 12 on or
271	271	17 after January 1, 2022 or who makes the election under item (i)
272	272	18 of subsection (d-15) of this Section) and has at least 10 years
273	273	19 of service credit and is otherwise eligible under the
274	274	20 requirements of the applicable Article may elect to receive
275	275	21 the lower retirement annuity provided in subsection (d) of
276	276	22 this Section.
277	277	23 (c-5) A person who first becomes a member or a participant
278	278	24 subject to this Section on or after July 6, 2017 (the effective
279	279	25 date of Public Act 100-23), notwithstanding any other
280	280	26 provision of this Code to the contrary, is entitled to a
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291	291	1 retirement annuity under Article 8 or Article 11 upon written
292	292	2 application if he or she has attained age 65 and has at least
293	293	3 10 years of service credit and is otherwise eligible under the
294	294	4 requirements of Article 8 or Article 11 of this Code,
295	295	5 whichever is applicable.
296	296	6 (d) The retirement annuity of a member or participant who
297	297	7 is retiring after attaining age 62 (age 60, with respect to
298	298	8 service under Article 12 that is subject to this Section, for a
299	299	9 member or participant under Article 12 who first becomes a
300	300	10 member or participant under Article 12 on or after January 1,
301	301	11 2022 or who makes the election under item (i) of subsection
302	302	12 (d-15) of this Section) with at least 10 years of service
303	303	13 credit shall be reduced by one-half of 1% for each full month
304	304	14 that the member's age is under age 67 (age 65, with respect to
305	305	15 service under Article 12 that is subject to this Section, for a
306	306	16 member or participant under Article 12 who first becomes a
307	307	17 member or participant under Article 12 on or after January 1,
308	308	18 2022 or who makes the election under item (i) of subsection
309	309	19 (d-15) of this Section).
310	310	20 (d-5) The retirement annuity payable under Article 8 or
311	311	21 Article 11 to an eligible person subject to subsection (c-5)
312	312	22 of this Section who is retiring at age 60 with at least 10
313	313	23 years of service credit shall be reduced by one-half of 1% for
314	314	24 each full month that the member's age is under age 65.
315	315	25 (d-10) Each person who first became a member or
316	316	26 participant under Article 8 or Article 11 of this Code on or
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327	327	1 after January 1, 2011 and prior to July 6, 2017 (the effective
328	328	2 date of Public Act 100-23) shall make an irrevocable election
329	329	3 either:
330	330	4 (i) to be eligible for the reduced retirement age
331	331	5 provided in subsections (c-5) and (d-5) of this Section,
332	332	6 the eligibility for which is conditioned upon the member
333	333	7 or participant agreeing to the increases in employee
334	334	8 contributions for age and service annuities provided in
335	335	9 subsection (a-5) of Section 8-174 of this Code (for
336	336	10 service under Article 8) or subsection (a-5) of Section
337	337	11 11-170 of this Code (for service under Article 11); or
338	338	12 (ii) to not agree to item (i) of this subsection
339	339	13 (d-10), in which case the member or participant shall
340	340	14 continue to be subject to the retirement age provisions in
341	341	15 subsections (c) and (d) of this Section and the employee
342	342	16 contributions for age and service annuity as provided in
343	343	17 subsection (a) of Section 8-174 of this Code (for service
344	344	18 under Article 8) or subsection (a) of Section 11-170 of
345	345	19 this Code (for service under Article 11).
346	346	20 The election provided for in this subsection shall be made
347	347	21 between October 1, 2017 and November 15, 2017. A person
348	348	22 subject to this subsection who makes the required election
349	349	23 shall remain bound by that election, except that an election
350	350	24 made under this subsection by a participant under Article 8 is
351	351	25 rescinded by operation of law and such person is subject to the
352	352	26 provisions otherwise applicable to a participant who first
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363	363	1 became a participant under Article 8 on or after January 1,
364	364	2 2011. A person subject to this subsection who fails for any
365	365	3 reason to make the required election within the time specified
366	366	4 in this subsection shall be deemed to have made the election
367	367	5 under item (ii).
368	368	6 (d-15) Each person who first becomes a member or
369	369	7 participant under Article 12 on or after January 1, 2011 and
370	370	8 prior to January 1, 2022 shall make an irrevocable election
371	371	9 either:
372	372	10 (i) to be eligible for the reduced retirement age
373	373	11 specified in subsections (c) and (d) of this Section, the
374	374	12 eligibility for which is conditioned upon the member or
375	375	13 participant agreeing to the increase in employee
376	376	14 contributions for service annuities specified in
377	377	15 subsection (b) of Section 12-150; or
378	378	16 (ii) to not agree to item (i) of this subsection
379	379	17 (d-15), in which case the member or participant shall not
380	380	18 be eligible for the reduced retirement age specified in
381	381	19 subsections (c) and (d) of this Section and shall not be
382	382	20 subject to the increase in employee contributions for
383	383	21 service annuities specified in subsection (b) of Section
384	384	22 12-150.
385	385	23 The election provided for in this subsection shall be made
386	386	24 between January 1, 2022 and April 1, 2022. A person subject to
387	387	25 this subsection who makes the required election shall remain
388	388	26 bound by that election. A person subject to this subsection
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399	399	1 who fails for any reason to make the required election within
400	400	2 the time specified in this subsection shall be deemed to have
401	401	3 made the election under item (ii).
402	402	4 (e) Any retirement annuity or supplemental annuity shall
403	403	5 be subject to annual increases on the January 1 occurring
404	404	6 either on or after the attainment of age 67 (age 65, with
405	405	7 respect to service under Article 12 that is subject to this
406	406	8 Section, for a member or participant under Article 12 who
407	407	9 first becomes a member or participant under Article 12 on or
408	408	10 after January 1, 2022 or who makes the election under item (i)
409	409	11 of subsection (d-15); and beginning on July 6, 2017 (the
410	410	12 effective date of Public Act 100-23), age 65 with respect to
411	411	13 service under Article 8 or Article 11 for eligible persons
412	412	14 who: (i) are subject to subsection (c-5) of this Section; or
413	413	15 (ii) made the election under item (i) of subsection (d-10) of
414	414	16 this Section) or the first anniversary of the annuity start
415	415	17 date, whichever is later. Each annual increase shall be
416	416	18 calculated at 3% or one-half the annual unadjusted percentage
417	417	19 increase (but not less than zero) in the consumer price
418	418	20 index-u for the 12 months ending with the September preceding
419	419	21 each November 1, whichever is less, of the originally granted
420	420	22 retirement annuity. If the annual unadjusted percentage change
421	421	23 in the consumer price index-u for the 12 months ending with the
422	422	24 September preceding each November 1 is zero or there is a
423	423	25 decrease, then the annuity shall not be increased.
424	424	26 For the purposes of Section 1-103.1 of this Code, the
425	425
426	426
427	427
428	428
429	429
430	430	SB3628 - 11 - LRB103 37668 RPS 67795 b
431	431
432	432
433	433	SB3628- 12 -LRB103 37668 RPS 67795 b SB3628 - 12 - LRB103 37668 RPS 67795 b
434	434	SB3628 - 12 - LRB103 37668 RPS 67795 b
435	435	1 changes made to this Section by Public Act 102-263 are
436	436	2 applicable without regard to whether the employee was in
437	437	3 active service on or after August 6, 2021 (the effective date
438	438	4 of Public Act 102-263).
439	439	5 For the purposes of Section 1-103.1 of this Code, the
440	440	6 changes made to this Section by Public Act 100-23 are
441	441	7 applicable without regard to whether the employee was in
442	442	8 active service on or after July 6, 2017 (the effective date of
443	443	9 Public Act 100-23).
444	444	10 (f) The initial survivor's or widow's annuity of an
445	445	11 otherwise eligible survivor or widow of a retired member or
446	446	12 participant who first became a member or participant on or
447	447	13 after January 1, 2011 shall be in the amount of 66 2/3% of the
448	448	14 retired member's or participant's retirement annuity at the
449	449	15 date of death. In the case of the death of a member or
450	450	16 participant who has not retired and who first became a member
451	451	17 or participant on or after January 1, 2011, eligibility for a
452	452	18 survivor's or widow's annuity shall be determined by the
453	453	19 applicable Article of this Code. The initial benefit shall be
454	454	20 66 2/3% of the earned annuity without a reduction due to age. A
455	455	21 child's annuity of an otherwise eligible child shall be in the
456	456	22 amount prescribed under each Article if applicable. Any
457	457	23 survivor's or widow's annuity shall be increased (1) on each
458	458	24 January 1 occurring on or after the commencement of the
459	459	25 annuity if the deceased member died while receiving a
460	460	26 retirement annuity or (2) in other cases, on each January 1
461	461
462	462
463	463
464	464
465	465
466	466	SB3628 - 12 - LRB103 37668 RPS 67795 b
467	467
468	468
469	469	SB3628- 13 -LRB103 37668 RPS 67795 b SB3628 - 13 - LRB103 37668 RPS 67795 b
470	470	SB3628 - 13 - LRB103 37668 RPS 67795 b
471	471	1 occurring after the first anniversary of the commencement of
472	472	2 the annuity. Each annual increase shall be calculated at 3% or
473	473	3 one-half the annual unadjusted percentage increase (but not
474	474	4 less than zero) in the consumer price index-u for the 12 months
475	475	5 ending with the September preceding each November 1, whichever
476	476	6 is less, of the originally granted survivor's annuity. If the
477	477	7 annual unadjusted percentage change in the consumer price
478	478	8 index-u for the 12 months ending with the September preceding
479	479	9 each November 1 is zero or there is a decrease, then the
480	480	10 annuity shall not be increased.
481	481	11 (g) The benefits in Section 14-110 apply if the person is a
482	482	12 fire fighter in the fire protection service of a department, a
483	483	13 security employee of the Department of Corrections or the
484	484	14 Department of Juvenile Justice, or a security employee of the
485	485	15 Department of Innovation and Technology, as those terms are
486	486	16 defined in subsection (b) and subsection (c) of Section
487	487	17 14-110. A person who meets the requirements of this Section is
488	488	18 entitled to an annuity calculated under the provisions of
489	489	19 Section 14-110, in lieu of the regular or minimum retirement
490	490	20 annuity, only if the person has withdrawn from service with
491	491	21 not less than 20 years of eligible creditable service and has
492	492	22 attained age 60, regardless of whether the attainment of age
493	493	23 60 occurs while the person is still in service.
494	494	24 (g-1) The benefits in Section 14-110 apply if the person
495	495	25 is a security employee of the Department of Corrections or the
496	496	26 Department of Juvenile Justice, as those terms are defined in
497	497
498	498
499	499
500	500
501	501
502	502	SB3628 - 13 - LRB103 37668 RPS 67795 b
503	503
504	504
505	505	SB3628- 14 -LRB103 37668 RPS 67795 b SB3628 - 14 - LRB103 37668 RPS 67795 b
506	506	SB3628 - 14 - LRB103 37668 RPS 67795 b
507	507	1 subsection (b) and subsection (c) of Section 14-110. A person
508	508	2 who meets the requirements of this Section is entitled to an
509	509	3 annuity calculated under the provisions of Section 14-110, in
510	510	4 lieu of the regular or minimum retirement annuity, only if the
511	511	5 person has withdrawn from service with not less than 20 years
512	512	6 of eligible creditable service and has attained age 55,
513	513	7 regardless of whether the attainment of age 55 occurs while
514	514	8 the person is still in service.
515	515	9 (g-5) The benefits in Section 14-110 apply if the person
516	516	10 is a State policeman, investigator for the Secretary of State,
517	517	11 conservation police officer, investigator for the Department
518	518	12 of Revenue or the Illinois Gaming Board, investigator for the
519	519	13 Office of the Attorney General, Commerce Commission police
520	520	14 officer, or arson investigator, as those terms are defined in
521	521	15 subsection (b) and subsection (c) of Section 14-110. A person
522	522	16 who meets the requirements of this Section is entitled to an
523	523	17 annuity calculated under the provisions of Section 14-110, in
524	524	18 lieu of the regular or minimum retirement annuity, only if the
525	525	19 person has withdrawn from service with not less than 20 years
526	526	20 of eligible creditable service and has attained age 55,
527	527	21 regardless of whether the attainment of age 55 occurs while
528	528	22 the person is still in service.
529	529	23 (h) If a person who first becomes a member or a participant
530	530	24 of a retirement system or pension fund subject to this Section
531	531	25 on or after January 1, 2011 is receiving a retirement annuity
532	532	26 or retirement pension under that system or fund and becomes a
533	533
534	534
535	535
536	536
537	537
538	538	SB3628 - 14 - LRB103 37668 RPS 67795 b
539	539
540	540
541	541	SB3628- 15 -LRB103 37668 RPS 67795 b SB3628 - 15 - LRB103 37668 RPS 67795 b
542	542	SB3628 - 15 - LRB103 37668 RPS 67795 b
543	543	1 member or participant under any other system or fund created
544	544	2 by this Code and is employed on a full-time basis, except for
545	545	3 those members or participants exempted from the provisions of
546	546	4 this Section under subsection (a) of this Section, then the
547	547	5 person's retirement annuity or retirement pension under that
548	548	6 system or fund shall be suspended during that employment. Upon
549	549	7 termination of that employment, the person's retirement
550	550	8 annuity or retirement pension payments shall resume and be
551	551	9 recalculated if recalculation is provided for under the
552	552	10 applicable Article of this Code.
553	553	11 If a person who first becomes a member of a retirement
554	554	12 system or pension fund subject to this Section on or after
555	555	13 January 1, 2012 and is receiving a retirement annuity or
556	556	14 retirement pension under that system or fund and accepts on a
557	557	15 contractual basis a position to provide services to a
558	558	16 governmental entity from which he or she has retired, then
559	559	17 that person's annuity or retirement pension earned as an
560	560	18 active employee of the employer shall be suspended during that
561	561	19 contractual service. A person receiving an annuity or
562	562	20 retirement pension under this Code shall notify the pension
563	563	21 fund or retirement system from which he or she is receiving an
564	564	22 annuity or retirement pension, as well as his or her
565	565	23 contractual employer, of his or her retirement status before
566	566	24 accepting contractual employment. A person who fails to submit
567	567	25 such notification shall be guilty of a Class A misdemeanor and
568	568	26 required to pay a fine of $1,000. Upon termination of that
569	569
570	570
571	571
572	572
573	573
574	574	SB3628 - 15 - LRB103 37668 RPS 67795 b
575	575
576	576
577	577	SB3628- 16 -LRB103 37668 RPS 67795 b SB3628 - 16 - LRB103 37668 RPS 67795 b
578	578	SB3628 - 16 - LRB103 37668 RPS 67795 b
579	579	1 contractual employment, the person's retirement annuity or
580	580	2 retirement pension payments shall resume and, if appropriate,
581	581	3 be recalculated under the applicable provisions of this Code.
582	582	4 (i) (Blank).
583	583	5 (j) Except for conflicts between this Section and Section
584	584	6 1-163, in In the case of a conflict between the provisions of
585	585	7 this Section and any other provision of this Code, the
586	586	8 provisions of this Section shall control.
587	587	9 (Source: P.A. 101-610, eff. 1-1-20; 102-16, eff. 6-17-21;
588	588	10 102-210, eff. 1-1-22; 102-263, eff. 8-6-21; 102-719, eff.
589	589	11 5-6-22.)
590	590	12 (Text of Section from P.A. 102-813)
591	591	13 Sec. 1-160. Provisions applicable to new hires.
592	592	14 (a) The provisions of this Section apply to a person who,
593	593	15 on or after January 1, 2011, first becomes a member or a
594	594	16 participant under any reciprocal retirement system or pension
595	595	17 fund established under this Code, other than a retirement
596	596	18 system or pension fund established under Article 2, 3, 4, 5, 6,
597	597	19 7, 15, or 18 of this Code, notwithstanding any other provision
598	598	20 of this Code to the contrary, but do not apply to any
599	599	21 self-managed plan established under this Code or to any
600	600	22 participant of the retirement plan established under Section
601	601	23 22-101; except that this Section applies to a person who
602	602	24 elected to establish alternative credits by electing in
603	603	25 writing after January 1, 2011, but before August 8, 2011,
604	604
605	605
606	606
607	607
608	608
609	609	SB3628 - 16 - LRB103 37668 RPS 67795 b
610	610
611	611
612	612	SB3628- 17 -LRB103 37668 RPS 67795 b SB3628 - 17 - LRB103 37668 RPS 67795 b
613	613	SB3628 - 17 - LRB103 37668 RPS 67795 b
614	614	1 under Section 7-145.1 of this Code. Notwithstanding anything
615	615	2 to the contrary in this Section, for purposes of this Section,
616	616	3 a person who is a Tier 1 regular employee as defined in Section
617	617	4 7-109.4 of this Code or who participated in a retirement
618	618	5 system under Article 15 prior to January 1, 2011 shall be
619	619	6 deemed a person who first became a member or participant prior
620	620	7 to January 1, 2011 under any retirement system or pension fund
621	621	8 subject to this Section. The changes made to this Section by
622	622	9 Public Act 98-596 are a clarification of existing law and are
623	623	10 intended to be retroactive to January 1, 2011 (the effective
624	624	11 date of Public Act 96-889), notwithstanding the provisions of
625	625	12 Section 1-103.1 of this Code.
626	626	13 This Section does not apply to a person who first becomes a
627	627	14 noncovered employee under Article 14 on or after the
628	628	15 implementation date of the plan created under Section 1-161
629	629	16 for that Article, unless that person elects under subsection
630	630	17 (b) of Section 1-161 to instead receive the benefits provided
631	631	18 under this Section and the applicable provisions of that
632	632	19 Article.
633	633	20 This Section does not apply to a person who first becomes a
634	634	21 member or participant under Article 16 on or after the
635	635	22 implementation date of the plan created under Section 1-161
636	636	23 for that Article, unless that person elects under subsection
637	637	24 (b) of Section 1-161 to instead receive the benefits provided
638	638	25 under this Section and the applicable provisions of that
639	639	26 Article.
640	640
641	641
642	642
643	643
644	644
645	645	SB3628 - 17 - LRB103 37668 RPS 67795 b
646	646
647	647
648	648	SB3628- 18 -LRB103 37668 RPS 67795 b SB3628 - 18 - LRB103 37668 RPS 67795 b
649	649	SB3628 - 18 - LRB103 37668 RPS 67795 b
650	650	1 This Section does not apply to a person who elects under
651	651	2 subsection (c-5) of Section 1-161 to receive the benefits
652	652	3 under Section 1-161.
653	653	4 This Section does not apply to a person who first becomes a
654	654	5 member or participant of an affected pension fund on or after 6
655	655	6 months after the resolution or ordinance date, as defined in
656	656	7 Section 1-162, unless that person elects under subsection (c)
657	657	8 of Section 1-162 to receive the benefits provided under this
658	658	9 Section and the applicable provisions of the Article under
659	659	10 which he or she is a member or participant.
660	660	11 (b) "Final average salary" means, except as otherwise
661	661	12 provided in this subsection, the average monthly (or annual)
662	662	13 salary obtained by dividing the total salary or earnings
663	663	14 calculated under the Article applicable to the member or
664	664	15 participant during the 96 consecutive months (or 8 consecutive
665	665	16 years) of service within the last 120 months (or 10 years) of
666	666	17 service in which the total salary or earnings calculated under
667	667	18 the applicable Article was the highest by the number of months
668	668	19 (or years) of service in that period. For the purposes of a
669	669	20 person who first becomes a member or participant of any
670	670	21 retirement system or pension fund to which this Section
671	671	22 applies on or after January 1, 2011, in this Code, "final
672	672	23 average salary" shall be substituted for the following:
673	673	24 (1) (Blank).
674	674	25 (2) In Articles 8, 9, 10, 11, and 12, "highest average
675	675	26 annual salary for any 4 consecutive years within the last
676	676
677	677
678	678
679	679
680	680
681	681	SB3628 - 18 - LRB103 37668 RPS 67795 b
682	682
683	683
684	684	SB3628- 19 -LRB103 37668 RPS 67795 b SB3628 - 19 - LRB103 37668 RPS 67795 b
685	685	SB3628 - 19 - LRB103 37668 RPS 67795 b
686	686	1 10 years of service immediately preceding the date of
687	687	2 withdrawal".
688	688	3 (3) In Article 13, "average final salary".
689	689	4 (4) In Article 14, "final average compensation".
690	690	5 (5) In Article 17, "average salary".
691	691	6 (6) In Section 22-207, "wages or salary received by
692	692	7 him at the date of retirement or discharge".
693	693	8 A member of the Teachers' Retirement System of the State
694	694	9 of Illinois who retires on or after June 1, 2021 and for whom
695	695	10 the 2020-2021 school year is used in the calculation of the
696	696	11 member's final average salary shall use the higher of the
697	697	12 following for the purpose of determining the member's final
698	698	13 average salary:
699	699	14 (A) the amount otherwise calculated under the first
700	700	15 paragraph of this subsection; or
701	701	16 (B) an amount calculated by the Teachers' Retirement
702	702	17 System of the State of Illinois using the average of the
703	703	18 monthly (or annual) salary obtained by dividing the total
704	704	19 salary or earnings calculated under Article 16 applicable
705	705	20 to the member or participant during the 96 months (or 8
706	706	21 years) of service within the last 120 months (or 10 years)
707	707	22 of service in which the total salary or earnings
708	708	23 calculated under the Article was the highest by the number
709	709	24 of months (or years) of service in that period.
710	710	25 (b-5) Beginning on January 1, 2011, for all purposes under
711	711	26 this Code (including without limitation the calculation of
712	712
713	713
714	714
715	715
716	716
717	717	SB3628 - 19 - LRB103 37668 RPS 67795 b
718	718
719	719
720	720	SB3628- 20 -LRB103 37668 RPS 67795 b SB3628 - 20 - LRB103 37668 RPS 67795 b
721	721	SB3628 - 20 - LRB103 37668 RPS 67795 b
722	722	1 benefits and employee contributions), the annual earnings,
723	723	2 salary, or wages (based on the plan year) of a member or
724	724	3 participant to whom this Section applies shall not exceed
725	725	4 $106,800; however, that amount shall annually thereafter be
726	726	5 increased by the lesser of (i) 3% of that amount, including all
727	727	6 previous adjustments, or (ii) one-half the annual unadjusted
728	728	7 percentage increase (but not less than zero) in the consumer
729	729	8 price index-u for the 12 months ending with the September
730	730	9 preceding each November 1, including all previous adjustments.
731	731	10 For the purposes of this Section, "consumer price index-u"
732	732	11 means the index published by the Bureau of Labor Statistics of
733	733	12 the United States Department of Labor that measures the
734	734	13 average change in prices of goods and services purchased by
735	735	14 all urban consumers, United States city average, all items,
736	736	15 1982-84 = 100. The new amount resulting from each annual
737	737	16 adjustment shall be determined by the Public Pension Division
738	738	17 of the Department of Insurance and made available to the
739	739	18 boards of the retirement systems and pension funds by November
740	740	19 1 of each year.
741	741	20 (b-10) Beginning on January 1, 2024, for all purposes
742	742	21 under this Code (including, without limitation, the
743	743	22 calculation of benefits and employee contributions), the
744	744	23 annual earnings, salary, or wages (based on the plan year) of a
745	745	24 member or participant under Article 9 to whom this Section
746	746	25 applies shall include an annual earnings, salary, or wage cap
747	747	26 that tracks the Social Security wage base. Maximum annual
748	748
749	749
750	750
751	751
752	752
753	753	SB3628 - 20 - LRB103 37668 RPS 67795 b
754	754
755	755
756	756	SB3628- 21 -LRB103 37668 RPS 67795 b SB3628 - 21 - LRB103 37668 RPS 67795 b
757	757	SB3628 - 21 - LRB103 37668 RPS 67795 b
758	758	1 earnings, wages, or salary shall be the annual contribution
759	759	2 and benefit base established for the applicable year by the
760	760	3 Commissioner of the Social Security Administration under the
761	761	4 federal Social Security Act.
762	762	5 However, in no event shall the annual earnings, salary, or
763	763	6 wages for the purposes of this Article and Article 9 exceed any
764	764	7 limitation imposed on annual earnings, salary, or wages under
765	765	8 Section 1-117. Under no circumstances shall the maximum amount
766	766	9 of annual earnings, salary, or wages be greater than the
767	767	10 amount set forth in this subsection (b-10) as a result of
768	768	11 reciprocal service or any provisions regarding reciprocal
769	769	12 services, nor shall the Fund under Article 9 be required to pay
770	770	13 any refund as a result of the application of this maximum
771	771	14 annual earnings, salary, and wage cap.
772	772	15 Nothing in this subsection (b-10) shall cause or otherwise
773	773	16 result in any retroactive adjustment of any employee
774	774	17 contributions. Nothing in this subsection (b-10) shall cause
775	775	18 or otherwise result in any retroactive adjustment of
776	776	19 disability or other payments made between January 1, 2011 and
777	777	20 January 1, 2024.
778	778	21 (c) A member or participant is entitled to a retirement
779	779	22 annuity upon written application if he or she has attained age
780	780	23 67 (age 65, with respect to service under Article 12 that is
781	781	24 subject to this Section, for a member or participant under
782	782	25 Article 12 who first becomes a member or participant under
783	783	26 Article 12 on or after January 1, 2022 or who makes the
784	784
785	785
786	786
787	787
788	788
789	789	SB3628 - 21 - LRB103 37668 RPS 67795 b
790	790
791	791
792	792	SB3628- 22 -LRB103 37668 RPS 67795 b SB3628 - 22 - LRB103 37668 RPS 67795 b
793	793	SB3628 - 22 - LRB103 37668 RPS 67795 b
794	794	1 election under item (i) of subsection (d-15) of this Section)
795	795	2 and has at least 10 years of service credit and is otherwise
796	796	3 eligible under the requirements of the applicable Article.
797	797	4 A member or participant who has attained age 62 (age 60,
798	798	5 with respect to service under Article 12 that is subject to
799	799	6 this Section, for a member or participant under Article 12 who
800	800	7 first becomes a member or participant under Article 12 on or
801	801	8 after January 1, 2022 or who makes the election under item (i)
802	802	9 of subsection (d-15) of this Section) and has at least 10 years
803	803	10 of service credit and is otherwise eligible under the
804	804	11 requirements of the applicable Article may elect to receive
805	805	12 the lower retirement annuity provided in subsection (d) of
806	806	13 this Section.
807	807	14 (c-5) A person who first becomes a member or a participant
808	808	15 subject to this Section on or after July 6, 2017 (the effective
809	809	16 date of Public Act 100-23), notwithstanding any other
810	810	17 provision of this Code to the contrary, is entitled to a
811	811	18 retirement annuity under Article 8 or Article 11 upon written
812	812	19 application if he or she has attained age 65 and has at least
813	813	20 10 years of service credit and is otherwise eligible under the
814	814	21 requirements of Article 8 or Article 11 of this Code,
815	815	22 whichever is applicable.
816	816	23 (d) The retirement annuity of a member or participant who
817	817	24 is retiring after attaining age 62 (age 60, with respect to
818	818	25 service under Article 12 that is subject to this Section, for a
819	819	26 member or participant under Article 12 who first becomes a
820	820
821	821
822	822
823	823
824	824
825	825	SB3628 - 22 - LRB103 37668 RPS 67795 b
826	826
827	827
828	828	SB3628- 23 -LRB103 37668 RPS 67795 b SB3628 - 23 - LRB103 37668 RPS 67795 b
829	829	SB3628 - 23 - LRB103 37668 RPS 67795 b
830	830	1 member or participant under Article 12 on or after January 1,
831	831	2 2022 or who makes the election under item (i) of subsection
832	832	3 (d-15) of this Section) with at least 10 years of service
833	833	4 credit shall be reduced by one-half of 1% for each full month
834	834	5 that the member's age is under age 67 (age 65, with respect to
835	835	6 service under Article 12 that is subject to this Section, for a
836	836	7 member or participant under Article 12 who first becomes a
837	837	8 member or participant under Article 12 on or after January 1,
838	838	9 2022 or who makes the election under item (i) of subsection
839	839	10 (d-15) of this Section).
840	840	11 (d-5) The retirement annuity payable under Article 8 or
841	841	12 Article 11 to an eligible person subject to subsection (c-5)
842	842	13 of this Section who is retiring at age 60 with at least 10
843	843	14 years of service credit shall be reduced by one-half of 1% for
844	844	15 each full month that the member's age is under age 65.
845	845	16 (d-10) Each person who first became a member or
846	846	17 participant under Article 8 or Article 11 of this Code on or
847	847	18 after January 1, 2011 and prior to July 6, 2017 (the effective
848	848	19 date of Public Act 100-23) shall make an irrevocable election
849	849	20 either:
850	850	21 (i) to be eligible for the reduced retirement age
851	851	22 provided in subsections (c-5) and (d-5) of this Section,
852	852	23 the eligibility for which is conditioned upon the member
853	853	24 or participant agreeing to the increases in employee
854	854	25 contributions for age and service annuities provided in
855	855	26 subsection (a-5) of Section 8-174 of this Code (for
856	856
857	857
858	858
859	859
860	860
861	861	SB3628 - 23 - LRB103 37668 RPS 67795 b
862	862
863	863
864	864	SB3628- 24 -LRB103 37668 RPS 67795 b SB3628 - 24 - LRB103 37668 RPS 67795 b
865	865	SB3628 - 24 - LRB103 37668 RPS 67795 b
866	866	1 service under Article 8) or subsection (a-5) of Section
867	867	2 11-170 of this Code (for service under Article 11); or
868	868	3 (ii) to not agree to item (i) of this subsection
869	869	4 (d-10), in which case the member or participant shall
870	870	5 continue to be subject to the retirement age provisions in
871	871	6 subsections (c) and (d) of this Section and the employee
872	872	7 contributions for age and service annuity as provided in
873	873	8 subsection (a) of Section 8-174 of this Code (for service
874	874	9 under Article 8) or subsection (a) of Section 11-170 of
875	875	10 this Code (for service under Article 11).
876	876	11 The election provided for in this subsection shall be made
877	877	12 between October 1, 2017 and November 15, 2017. A person
878	878	13 subject to this subsection who makes the required election
879	879	14 shall remain bound by that election, except that an election
880	880	15 made under this subsection by a participant under Article 8 is
881	881	16 rescinded by operation of law and such person is subject to the
882	882	17 provisions otherwise applicable to a participant who first
883	883	18 became a participant under Article 8 on or after January 1,
884	884	19 2011. A person subject to this subsection who fails for any
885	885	20 reason to make the required election within the time specified
886	886	21 in this subsection shall be deemed to have made the election
887	887	22 under item (ii).
888	888	23 (d-15) Each person who first becomes a member or
889	889	24 participant under Article 12 on or after January 1, 2011 and
890	890	25 prior to January 1, 2022 shall make an irrevocable election
891	891	26 either:
892	892
893	893
894	894
895	895
896	896
897	897	SB3628 - 24 - LRB103 37668 RPS 67795 b
898	898
899	899
900	900	SB3628- 25 -LRB103 37668 RPS 67795 b SB3628 - 25 - LRB103 37668 RPS 67795 b
901	901	SB3628 - 25 - LRB103 37668 RPS 67795 b
902	902	1 (i) to be eligible for the reduced retirement age
903	903	2 specified in subsections (c) and (d) of this Section, the
904	904	3 eligibility for which is conditioned upon the member or
905	905	4 participant agreeing to the increase in employee
906	906	5 contributions for service annuities specified in
907	907	6 subsection (b) of Section 12-150; or
908	908	7 (ii) to not agree to item (i) of this subsection
909	909	8 (d-15), in which case the member or participant shall not
910	910	9 be eligible for the reduced retirement age specified in
911	911	10 subsections (c) and (d) of this Section and shall not be
912	912	11 subject to the increase in employee contributions for
913	913	12 service annuities specified in subsection (b) of Section
914	914	13 12-150.
915	915	14 The election provided for in this subsection shall be made
916	916	15 between January 1, 2022 and April 1, 2022. A person subject to
917	917	16 this subsection who makes the required election shall remain
918	918	17 bound by that election. A person subject to this subsection
919	919	18 who fails for any reason to make the required election within
920	920	19 the time specified in this subsection shall be deemed to have
921	921	20 made the election under item (ii).
922	922	21 (e) Any retirement annuity or supplemental annuity shall
923	923	22 be subject to annual increases on the January 1 occurring
924	924	23 either on or after the attainment of age 67 (age 65, with
925	925	24 respect to service under Article 12 that is subject to this
926	926	25 Section, for a member or participant under Article 12 who
927	927	26 first becomes a member or participant under Article 12 on or
928	928
929	929
930	930
931	931
932	932
933	933	SB3628 - 25 - LRB103 37668 RPS 67795 b
934	934
935	935
936	936	SB3628- 26 -LRB103 37668 RPS 67795 b SB3628 - 26 - LRB103 37668 RPS 67795 b
937	937	SB3628 - 26 - LRB103 37668 RPS 67795 b
938	938	1 after January 1, 2022 or who makes the election under item (i)
939	939	2 of subsection (d-15); and beginning on July 6, 2017 (the
940	940	3 effective date of Public Act 100-23), age 65 with respect to
941	941	4 service under Article 8 or Article 11 for eligible persons
942	942	5 who: (i) are subject to subsection (c-5) of this Section; or
943	943	6 (ii) made the election under item (i) of subsection (d-10) of
944	944	7 this Section) or the first anniversary of the annuity start
945	945	8 date, whichever is later. Each annual increase shall be
946	946	9 calculated at 3% or one-half the annual unadjusted percentage
947	947	10 increase (but not less than zero) in the consumer price
948	948	11 index-u for the 12 months ending with the September preceding
949	949	12 each November 1, whichever is less, of the originally granted
950	950	13 retirement annuity. If the annual unadjusted percentage change
951	951	14 in the consumer price index-u for the 12 months ending with the
952	952	15 September preceding each November 1 is zero or there is a
953	953	16 decrease, then the annuity shall not be increased.
954	954	17 For the purposes of Section 1-103.1 of this Code, the
955	955	18 changes made to this Section by Public Act 102-263 are
956	956	19 applicable without regard to whether the employee was in
957	957	20 active service on or after August 6, 2021 (the effective date
958	958	21 of Public Act 102-263).
959	959	22 For the purposes of Section 1-103.1 of this Code, the
960	960	23 changes made to this Section by Public Act 100-23 are
961	961	24 applicable without regard to whether the employee was in
962	962	25 active service on or after July 6, 2017 (the effective date of
963	963	26 Public Act 100-23).
964	964
965	965
966	966
967	967
968	968
969	969	SB3628 - 26 - LRB103 37668 RPS 67795 b
970	970
971	971
972	972	SB3628- 27 -LRB103 37668 RPS 67795 b SB3628 - 27 - LRB103 37668 RPS 67795 b
973	973	SB3628 - 27 - LRB103 37668 RPS 67795 b
974	974	1 (f) The initial survivor's or widow's annuity of an
975	975	2 otherwise eligible survivor or widow of a retired member or
976	976	3 participant who first became a member or participant on or
977	977	4 after January 1, 2011 shall be in the amount of 66 2/3% of the
978	978	5 retired member's or participant's retirement annuity at the
979	979	6 date of death. In the case of the death of a member or
980	980	7 participant who has not retired and who first became a member
981	981	8 or participant on or after January 1, 2011, eligibility for a
982	982	9 survivor's or widow's annuity shall be determined by the
983	983	10 applicable Article of this Code. The initial benefit shall be
984	984	11 66 2/3% of the earned annuity without a reduction due to age. A
985	985	12 child's annuity of an otherwise eligible child shall be in the
986	986	13 amount prescribed under each Article if applicable. Any
987	987	14 survivor's or widow's annuity shall be increased (1) on each
988	988	15 January 1 occurring on or after the commencement of the
989	989	16 annuity if the deceased member died while receiving a
990	990	17 retirement annuity or (2) in other cases, on each January 1
991	991	18 occurring after the first anniversary of the commencement of
992	992	19 the annuity. Each annual increase shall be calculated at 3% or
993	993	20 one-half the annual unadjusted percentage increase (but not
994	994	21 less than zero) in the consumer price index-u for the 12 months
995	995	22 ending with the September preceding each November 1, whichever
996	996	23 is less, of the originally granted survivor's annuity. If the
997	997	24 annual unadjusted percentage change in the consumer price
998	998	25 index-u for the 12 months ending with the September preceding
999	999	26 each November 1 is zero or there is a decrease, then the
1000	1000
1001	1001
1002	1002
1003	1003
1004	1004
1005	1005	SB3628 - 27 - LRB103 37668 RPS 67795 b
1006	1006
1007	1007
1008	1008	SB3628- 28 -LRB103 37668 RPS 67795 b SB3628 - 28 - LRB103 37668 RPS 67795 b
1009	1009	SB3628 - 28 - LRB103 37668 RPS 67795 b
1010	1010	1 annuity shall not be increased.
1011	1011	2 (g) The benefits in Section 14-110 apply only if the
1012	1012	3 person is a State policeman, a fire fighter in the fire
1013	1013	4 protection service of a department, a conservation police
1014	1014	5 officer, an investigator for the Secretary of State, an arson
1015	1015	6 investigator, a Commerce Commission police officer,
1016	1016	7 investigator for the Department of Revenue or the Illinois
1017	1017	8 Gaming Board, a security employee of the Department of
1018	1018	9 Corrections or the Department of Juvenile Justice, or a
1019	1019	10 security employee of the Department of Innovation and
1020	1020	11 Technology, as those terms are defined in subsection (b) and
1021	1021	12 subsection (c) of Section 14-110. A person who meets the
1022	1022	13 requirements of this Section is entitled to an annuity
1023	1023	14 calculated under the provisions of Section 14-110, in lieu of
1024	1024	15 the regular or minimum retirement annuity, only if the person
1025	1025	16 has withdrawn from service with not less than 20 years of
1026	1026	17 eligible creditable service and has attained age 60,
1027	1027	18 regardless of whether the attainment of age 60 occurs while
1028	1028	19 the person is still in service.
1029	1029	20 (g-1) The benefits in Section 14-110 apply if the person
1030	1030	21 is a security employee of the Department of Corrections or the
1031	1031	22 Department of Juvenile Justice, as those terms are defined in
1032	1032	23 subsection (b) and subsection (c) of Section 14-110. A person
1033	1033	24 who meets the requirements of this Section is entitled to an
1034	1034	25 annuity calculated under the provisions of Section 14-110, in
1035	1035	26 lieu of the regular or minimum retirement annuity, only if the
1036	1036
1037	1037
1038	1038
1039	1039
1040	1040
1041	1041	SB3628 - 28 - LRB103 37668 RPS 67795 b
1042	1042
1043	1043
1044	1044	SB3628- 29 -LRB103 37668 RPS 67795 b SB3628 - 29 - LRB103 37668 RPS 67795 b
1045	1045	SB3628 - 29 - LRB103 37668 RPS 67795 b
1046	1046	1 person has withdrawn from service with not less than 20 years
1047	1047	2 of eligible creditable service and has attained age 55,
1048	1048	3 regardless of whether the attainment of age 55 occurs while
1049	1049	4 the person is still in service.
1050	1050	5 (h) If a person who first becomes a member or a participant
1051	1051	6 of a retirement system or pension fund subject to this Section
1052	1052	7 on or after January 1, 2011 is receiving a retirement annuity
1053	1053	8 or retirement pension under that system or fund and becomes a
1054	1054	9 member or participant under any other system or fund created
1055	1055	10 by this Code and is employed on a full-time basis, except for
1056	1056	11 those members or participants exempted from the provisions of
1057	1057	12 this Section under subsection (a) of this Section, then the
1058	1058	13 person's retirement annuity or retirement pension under that
1059	1059	14 system or fund shall be suspended during that employment. Upon
1060	1060	15 termination of that employment, the person's retirement
1061	1061	16 annuity or retirement pension payments shall resume and be
1062	1062	17 recalculated if recalculation is provided for under the
1063	1063	18 applicable Article of this Code.
1064	1064	19 If a person who first becomes a member of a retirement
1065	1065	20 system or pension fund subject to this Section on or after
1066	1066	21 January 1, 2012 and is receiving a retirement annuity or
1067	1067	22 retirement pension under that system or fund and accepts on a
1068	1068	23 contractual basis a position to provide services to a
1069	1069	24 governmental entity from which he or she has retired, then
1070	1070	25 that person's annuity or retirement pension earned as an
1071	1071	26 active employee of the employer shall be suspended during that
1072	1072
1073	1073
1074	1074
1075	1075
1076	1076
1077	1077	SB3628 - 29 - LRB103 37668 RPS 67795 b
1078	1078
1079	1079
1080	1080	SB3628- 30 -LRB103 37668 RPS 67795 b SB3628 - 30 - LRB103 37668 RPS 67795 b
1081	1081	SB3628 - 30 - LRB103 37668 RPS 67795 b
1082	1082	1 contractual service. A person receiving an annuity or
1083	1083	2 retirement pension under this Code shall notify the pension
1084	1084	3 fund or retirement system from which he or she is receiving an
1085	1085	4 annuity or retirement pension, as well as his or her
1086	1086	5 contractual employer, of his or her retirement status before
1087	1087	6 accepting contractual employment. A person who fails to submit
1088	1088	7 such notification shall be guilty of a Class A misdemeanor and
1089	1089	8 required to pay a fine of $1,000. Upon termination of that
1090	1090	9 contractual employment, the person's retirement annuity or
1091	1091	10 retirement pension payments shall resume and, if appropriate,
1092	1092	11 be recalculated under the applicable provisions of this Code.
1093	1093	12 (i) (Blank).
1094	1094	13 (j) Except for conflicts between this Section and Section
1095	1095	14 1-163, in In the case of a conflict between the provisions of
1096	1096	15 this Section and any other provision of this Code, the
1097	1097	16 provisions of this Section shall control.
1098	1098	17 (Source: P.A. 101-610, eff. 1-1-20; 102-16, eff. 6-17-21;
1099	1099	18 102-210, eff. 1-1-22; 102-263, eff. 8-6-21; 102-813, eff.
1100	1100	19 5-13-22.)
1101	1101	20 (Text of Section from P.A. 102-956)
1102	1102	21 Sec. 1-160. Provisions applicable to new hires.
1103	1103	22 (a) The provisions of this Section apply to a person who,
1104	1104	23 on or after January 1, 2011, first becomes a member or a
1105	1105	24 participant under any reciprocal retirement system or pension
1106	1106	25 fund established under this Code, other than a retirement
1107	1107
1108	1108
1109	1109
1110	1110
1111	1111
1112	1112	SB3628 - 30 - LRB103 37668 RPS 67795 b
1113	1113
1114	1114
1115	1115	SB3628- 31 -LRB103 37668 RPS 67795 b SB3628 - 31 - LRB103 37668 RPS 67795 b
1116	1116	SB3628 - 31 - LRB103 37668 RPS 67795 b
1117	1117	1 system or pension fund established under Article 2, 3, 4, 5, 6,
1118	1118	2 7, 15, or 18 of this Code, notwithstanding any other provision
1119	1119	3 of this Code to the contrary, but do not apply to any
1120	1120	4 self-managed plan established under this Code or to any
1121	1121	5 participant of the retirement plan established under Section
1122	1122	6 22-101; except that this Section applies to a person who
1123	1123	7 elected to establish alternative credits by electing in
1124	1124	8 writing after January 1, 2011, but before August 8, 2011,
1125	1125	9 under Section 7-145.1 of this Code. Notwithstanding anything
1126	1126	10 to the contrary in this Section, for purposes of this Section,
1127	1127	11 a person who is a Tier 1 regular employee as defined in Section
1128	1128	12 7-109.4 of this Code or who participated in a retirement
1129	1129	13 system under Article 15 prior to January 1, 2011 shall be
1130	1130	14 deemed a person who first became a member or participant prior
1131	1131	15 to January 1, 2011 under any retirement system or pension fund
1132	1132	16 subject to this Section. The changes made to this Section by
1133	1133	17 Public Act 98-596 are a clarification of existing law and are
1134	1134	18 intended to be retroactive to January 1, 2011 (the effective
1135	1135	19 date of Public Act 96-889), notwithstanding the provisions of
1136	1136	20 Section 1-103.1 of this Code.
1137	1137	21 This Section does not apply to a person who first becomes a
1138	1138	22 noncovered employee under Article 14 on or after the
1139	1139	23 implementation date of the plan created under Section 1-161
1140	1140	24 for that Article, unless that person elects under subsection
1141	1141	25 (b) of Section 1-161 to instead receive the benefits provided
1142	1142	26 under this Section and the applicable provisions of that
1143	1143
1144	1144
1145	1145
1146	1146
1147	1147
1148	1148	SB3628 - 31 - LRB103 37668 RPS 67795 b
1149	1149
1150	1150
1151	1151	SB3628- 32 -LRB103 37668 RPS 67795 b SB3628 - 32 - LRB103 37668 RPS 67795 b
1152	1152	SB3628 - 32 - LRB103 37668 RPS 67795 b
1153	1153	1 Article.
1154	1154	2 This Section does not apply to a person who first becomes a
1155	1155	3 member or participant under Article 16 on or after the
1156	1156	4 implementation date of the plan created under Section 1-161
1157	1157	5 for that Article, unless that person elects under subsection
1158	1158	6 (b) of Section 1-161 to instead receive the benefits provided
1159	1159	7 under this Section and the applicable provisions of that
1160	1160	8 Article.
1161	1161	9 This Section does not apply to a person who elects under
1162	1162	10 subsection (c-5) of Section 1-161 to receive the benefits
1163	1163	11 under Section 1-161.
1164	1164	12 This Section does not apply to a person who first becomes a
1165	1165	13 member or participant of an affected pension fund on or after 6
1166	1166	14 months after the resolution or ordinance date, as defined in
1167	1167	15 Section 1-162, unless that person elects under subsection (c)
1168	1168	16 of Section 1-162 to receive the benefits provided under this
1169	1169	17 Section and the applicable provisions of the Article under
1170	1170	18 which he or she is a member or participant.
1171	1171	19 (b) "Final average salary" means, except as otherwise
1172	1172	20 provided in this subsection, the average monthly (or annual)
1173	1173	21 salary obtained by dividing the total salary or earnings
1174	1174	22 calculated under the Article applicable to the member or
1175	1175	23 participant during the 96 consecutive months (or 8 consecutive
1176	1176	24 years) of service within the last 120 months (or 10 years) of
1177	1177	25 service in which the total salary or earnings calculated under
1178	1178	26 the applicable Article was the highest by the number of months
1179	1179
1180	1180
1181	1181
1182	1182
1183	1183
1184	1184	SB3628 - 32 - LRB103 37668 RPS 67795 b
1185	1185
1186	1186
1187	1187	SB3628- 33 -LRB103 37668 RPS 67795 b SB3628 - 33 - LRB103 37668 RPS 67795 b
1188	1188	SB3628 - 33 - LRB103 37668 RPS 67795 b
1189	1189	1 (or years) of service in that period. For the purposes of a
1190	1190	2 person who first becomes a member or participant of any
1191	1191	3 retirement system or pension fund to which this Section
1192	1192	4 applies on or after January 1, 2011, in this Code, "final
1193	1193	5 average salary" shall be substituted for the following:
1194	1194	6 (1) (Blank).
1195	1195	7 (2) In Articles 8, 9, 10, 11, and 12, "highest average
1196	1196	8 annual salary for any 4 consecutive years within the last
1197	1197	9 10 years of service immediately preceding the date of
1198	1198	10 withdrawal".
1199	1199	11 (3) In Article 13, "average final salary".
1200	1200	12 (4) In Article 14, "final average compensation".
1201	1201	13 (5) In Article 17, "average salary".
1202	1202	14 (6) In Section 22-207, "wages or salary received by
1203	1203	15 him at the date of retirement or discharge".
1204	1204	16 A member of the Teachers' Retirement System of the State
1205	1205	17 of Illinois who retires on or after June 1, 2021 and for whom
1206	1206	18 the 2020-2021 school year is used in the calculation of the
1207	1207	19 member's final average salary shall use the higher of the
1208	1208	20 following for the purpose of determining the member's final
1209	1209	21 average salary:
1210	1210	22 (A) the amount otherwise calculated under the first
1211	1211	23 paragraph of this subsection; or
1212	1212	24 (B) an amount calculated by the Teachers' Retirement
1213	1213	25 System of the State of Illinois using the average of the
1214	1214	26 monthly (or annual) salary obtained by dividing the total
1215	1215
1216	1216
1217	1217
1218	1218
1219	1219
1220	1220	SB3628 - 33 - LRB103 37668 RPS 67795 b
1221	1221
1222	1222
1223	1223	SB3628- 34 -LRB103 37668 RPS 67795 b SB3628 - 34 - LRB103 37668 RPS 67795 b
1224	1224	SB3628 - 34 - LRB103 37668 RPS 67795 b
1225	1225	1 salary or earnings calculated under Article 16 applicable
1226	1226	2 to the member or participant during the 96 months (or 8
1227	1227	3 years) of service within the last 120 months (or 10 years)
1228	1228	4 of service in which the total salary or earnings
1229	1229	5 calculated under the Article was the highest by the number
1230	1230	6 of months (or years) of service in that period.
1231	1231	7 (b-5) Beginning on January 1, 2011, for all purposes under
1232	1232	8 this Code (including without limitation the calculation of
1233	1233	9 benefits and employee contributions), the annual earnings,
1234	1234	10 salary, or wages (based on the plan year) of a member or
1235	1235	11 participant to whom this Section applies shall not exceed
1236	1236	12 $106,800; however, that amount shall annually thereafter be
1237	1237	13 increased by the lesser of (i) 3% of that amount, including all
1238	1238	14 previous adjustments, or (ii) one-half the annual unadjusted
1239	1239	15 percentage increase (but not less than zero) in the consumer
1240	1240	16 price index-u for the 12 months ending with the September
1241	1241	17 preceding each November 1, including all previous adjustments.
1242	1242	18 For the purposes of this Section, "consumer price index-u"
1243	1243	19 means the index published by the Bureau of Labor Statistics of
1244	1244	20 the United States Department of Labor that measures the
1245	1245	21 average change in prices of goods and services purchased by
1246	1246	22 all urban consumers, United States city average, all items,
1247	1247	23 1982-84 = 100. The new amount resulting from each annual
1248	1248	24 adjustment shall be determined by the Public Pension Division
1249	1249	25 of the Department of Insurance and made available to the
1250	1250	26 boards of the retirement systems and pension funds by November
1251	1251
1252	1252
1253	1253
1254	1254
1255	1255
1256	1256	SB3628 - 34 - LRB103 37668 RPS 67795 b
1257	1257
1258	1258
1259	1259	SB3628- 35 -LRB103 37668 RPS 67795 b SB3628 - 35 - LRB103 37668 RPS 67795 b
1260	1260	SB3628 - 35 - LRB103 37668 RPS 67795 b
1261	1261	1 1 of each year.
1262	1262	2 (b-10) Beginning on January 1, 2024, for all purposes
1263	1263	3 under this Code (including, without limitation, the
1264	1264	4 calculation of benefits and employee contributions), the
1265	1265	5 annual earnings, salary, or wages (based on the plan year) of a
1266	1266	6 member or participant under Article 9 to whom this Section
1267	1267	7 applies shall include an annual earnings, salary, or wage cap
1268	1268	8 that tracks the Social Security wage base. Maximum annual
1269	1269	9 earnings, wages, or salary shall be the annual contribution
1270	1270	10 and benefit base established for the applicable year by the
1271	1271	11 Commissioner of the Social Security Administration under the
1272	1272	12 federal Social Security Act.
1273	1273	13 However, in no event shall the annual earnings, salary, or
1274	1274	14 wages for the purposes of this Article and Article 9 exceed any
1275	1275	15 limitation imposed on annual earnings, salary, or wages under
1276	1276	16 Section 1-117. Under no circumstances shall the maximum amount
1277	1277	17 of annual earnings, salary, or wages be greater than the
1278	1278	18 amount set forth in this subsection (b-10) as a result of
1279	1279	19 reciprocal service or any provisions regarding reciprocal
1280	1280	20 services, nor shall the Fund under Article 9 be required to pay
1281	1281	21 any refund as a result of the application of this maximum
1282	1282	22 annual earnings, salary, and wage cap.
1283	1283	23 Nothing in this subsection (b-10) shall cause or otherwise
1284	1284	24 result in any retroactive adjustment of any employee
1285	1285	25 contributions. Nothing in this subsection (b-10) shall cause
1286	1286	26 or otherwise result in any retroactive adjustment of
1287	1287
1288	1288
1289	1289
1290	1290
1291	1291
1292	1292	SB3628 - 35 - LRB103 37668 RPS 67795 b
1293	1293
1294	1294
1295	1295	SB3628- 36 -LRB103 37668 RPS 67795 b SB3628 - 36 - LRB103 37668 RPS 67795 b
1296	1296	SB3628 - 36 - LRB103 37668 RPS 67795 b
1297	1297	1 disability or other payments made between January 1, 2011 and
1298	1298	2 January 1, 2024.
1299	1299	3 (c) A member or participant is entitled to a retirement
1300	1300	4 annuity upon written application if he or she has attained age
1301	1301	5 67 (age 65, with respect to service under Article 12 that is
1302	1302	6 subject to this Section, for a member or participant under
1303	1303	7 Article 12 who first becomes a member or participant under
1304	1304	8 Article 12 on or after January 1, 2022 or who makes the
1305	1305	9 election under item (i) of subsection (d-15) of this Section)
1306	1306	10 and has at least 10 years of service credit and is otherwise
1307	1307	11 eligible under the requirements of the applicable Article.
1308	1308	12 A member or participant who has attained age 62 (age 60,
1309	1309	13 with respect to service under Article 12 that is subject to
1310	1310	14 this Section, for a member or participant under Article 12 who
1311	1311	15 first becomes a member or participant under Article 12 on or
1312	1312	16 after January 1, 2022 or who makes the election under item (i)
1313	1313	17 of subsection (d-15) of this Section) and has at least 10 years
1314	1314	18 of service credit and is otherwise eligible under the
1315	1315	19 requirements of the applicable Article may elect to receive
1316	1316	20 the lower retirement annuity provided in subsection (d) of
1317	1317	21 this Section.
1318	1318	22 (c-5) A person who first becomes a member or a participant
1319	1319	23 subject to this Section on or after July 6, 2017 (the effective
1320	1320	24 date of Public Act 100-23), notwithstanding any other
1321	1321	25 provision of this Code to the contrary, is entitled to a
1322	1322	26 retirement annuity under Article 8 or Article 11 upon written
1323	1323
1324	1324
1325	1325
1326	1326
1327	1327
1328	1328	SB3628 - 36 - LRB103 37668 RPS 67795 b
1329	1329
1330	1330
1331	1331	SB3628- 37 -LRB103 37668 RPS 67795 b SB3628 - 37 - LRB103 37668 RPS 67795 b
1332	1332	SB3628 - 37 - LRB103 37668 RPS 67795 b
1333	1333	1 application if he or she has attained age 65 and has at least
1334	1334	2 10 years of service credit and is otherwise eligible under the
1335	1335	3 requirements of Article 8 or Article 11 of this Code,
1336	1336	4 whichever is applicable.
1337	1337	5 (d) The retirement annuity of a member or participant who
1338	1338	6 is retiring after attaining age 62 (age 60, with respect to
1339	1339	7 service under Article 12 that is subject to this Section, for a
1340	1340	8 member or participant under Article 12 who first becomes a
1341	1341	9 member or participant under Article 12 on or after January 1,
1342	1342	10 2022 or who makes the election under item (i) of subsection
1343	1343	11 (d-15) of this Section) with at least 10 years of service
1344	1344	12 credit shall be reduced by one-half of 1% for each full month
1345	1345	13 that the member's age is under age 67 (age 65, with respect to
1346	1346	14 service under Article 12 that is subject to this Section, for a
1347	1347	15 member or participant under Article 12 who first becomes a
1348	1348	16 member or participant under Article 12 on or after January 1,
1349	1349	17 2022 or who makes the election under item (i) of subsection
1350	1350	18 (d-15) of this Section).
1351	1351	19 (d-5) The retirement annuity payable under Article 8 or
1352	1352	20 Article 11 to an eligible person subject to subsection (c-5)
1353	1353	21 of this Section who is retiring at age 60 with at least 10
1354	1354	22 years of service credit shall be reduced by one-half of 1% for
1355	1355	23 each full month that the member's age is under age 65.
1356	1356	24 (d-10) Each person who first became a member or
1357	1357	25 participant under Article 8 or Article 11 of this Code on or
1358	1358	26 after January 1, 2011 and prior to July 6, 2017 (the effective
1359	1359
1360	1360
1361	1361
1362	1362
1363	1363
1364	1364	SB3628 - 37 - LRB103 37668 RPS 67795 b
1365	1365
1366	1366
1367	1367	SB3628- 38 -LRB103 37668 RPS 67795 b SB3628 - 38 - LRB103 37668 RPS 67795 b
1368	1368	SB3628 - 38 - LRB103 37668 RPS 67795 b
1369	1369	1 date of Public Act 100-23) shall make an irrevocable election
1370	1370	2 either:
1371	1371	3 (i) to be eligible for the reduced retirement age
1372	1372	4 provided in subsections (c-5) and (d-5) of this Section,
1373	1373	5 the eligibility for which is conditioned upon the member
1374	1374	6 or participant agreeing to the increases in employee
1375	1375	7 contributions for age and service annuities provided in
1376	1376	8 subsection (a-5) of Section 8-174 of this Code (for
1377	1377	9 service under Article 8) or subsection (a-5) of Section
1378	1378	10 11-170 of this Code (for service under Article 11); or
1379	1379	11 (ii) to not agree to item (i) of this subsection
1380	1380	12 (d-10), in which case the member or participant shall
1381	1381	13 continue to be subject to the retirement age provisions in
1382	1382	14 subsections (c) and (d) of this Section and the employee
1383	1383	15 contributions for age and service annuity as provided in
1384	1384	16 subsection (a) of Section 8-174 of this Code (for service
1385	1385	17 under Article 8) or subsection (a) of Section 11-170 of
1386	1386	18 this Code (for service under Article 11).
1387	1387	19 The election provided for in this subsection shall be made
1388	1388	20 between October 1, 2017 and November 15, 2017. A person
1389	1389	21 subject to this subsection who makes the required election
1390	1390	22 shall remain bound by that election, except that an election
1391	1391	23 made under this subsection by a participant under Article 8 is
1392	1392	24 rescinded by operation of law and such person is subject to the
1393	1393	25 provisions otherwise applicable to a participant who first
1394	1394	26 became a participant under Article 8 on or after January 1,
1395	1395
1396	1396
1397	1397
1398	1398
1399	1399
1400	1400	SB3628 - 38 - LRB103 37668 RPS 67795 b
1401	1401
1402	1402
1403	1403	SB3628- 39 -LRB103 37668 RPS 67795 b SB3628 - 39 - LRB103 37668 RPS 67795 b
1404	1404	SB3628 - 39 - LRB103 37668 RPS 67795 b
1405	1405	1 2011. A person subject to this subsection who fails for any
1406	1406	2 reason to make the required election within the time specified
1407	1407	3 in this subsection shall be deemed to have made the election
1408	1408	4 under item (ii).
1409	1409	5 (d-15) Each person who first becomes a member or
1410	1410	6 participant under Article 12 on or after January 1, 2011 and
1411	1411	7 prior to January 1, 2022 shall make an irrevocable election
1412	1412	8 either:
1413	1413	9 (i) to be eligible for the reduced retirement age
1414	1414	10 specified in subsections (c) and (d) of this Section, the
1415	1415	11 eligibility for which is conditioned upon the member or
1416	1416	12 participant agreeing to the increase in employee
1417	1417	13 contributions for service annuities specified in
1418	1418	14 subsection (b) of Section 12-150; or
1419	1419	15 (ii) to not agree to item (i) of this subsection
1420	1420	16 (d-15), in which case the member or participant shall not
1421	1421	17 be eligible for the reduced retirement age specified in
1422	1422	18 subsections (c) and (d) of this Section and shall not be
1423	1423	19 subject to the increase in employee contributions for
1424	1424	20 service annuities specified in subsection (b) of Section
1425	1425	21 12-150.
1426	1426	22 The election provided for in this subsection shall be made
1427	1427	23 between January 1, 2022 and April 1, 2022. A person subject to
1428	1428	24 this subsection who makes the required election shall remain
1429	1429	25 bound by that election. A person subject to this subsection
1430	1430	26 who fails for any reason to make the required election within
1431	1431
1432	1432
1433	1433
1434	1434
1435	1435
1436	1436	SB3628 - 39 - LRB103 37668 RPS 67795 b
1437	1437
1438	1438
1439	1439	SB3628- 40 -LRB103 37668 RPS 67795 b SB3628 - 40 - LRB103 37668 RPS 67795 b
1440	1440	SB3628 - 40 - LRB103 37668 RPS 67795 b
1441	1441	1 the time specified in this subsection shall be deemed to have
1442	1442	2 made the election under item (ii).
1443	1443	3 (e) Any retirement annuity or supplemental annuity shall
1444	1444	4 be subject to annual increases on the January 1 occurring
1445	1445	5 either on or after the attainment of age 67 (age 65, with
1446	1446	6 respect to service under Article 12 that is subject to this
1447	1447	7 Section, for a member or participant under Article 12 who
1448	1448	8 first becomes a member or participant under Article 12 on or
1449	1449	9 after January 1, 2022 or who makes the election under item (i)
1450	1450	10 of subsection (d-15); and beginning on July 6, 2017 (the
1451	1451	11 effective date of Public Act 100-23), age 65 with respect to
1452	1452	12 service under Article 8 or Article 11 for eligible persons
1453	1453	13 who: (i) are subject to subsection (c-5) of this Section; or
1454	1454	14 (ii) made the election under item (i) of subsection (d-10) of
1455	1455	15 this Section) or the first anniversary of the annuity start
1456	1456	16 date, whichever is later. Each annual increase shall be
1457	1457	17 calculated at 3% or one-half the annual unadjusted percentage
1458	1458	18 increase (but not less than zero) in the consumer price
1459	1459	19 index-u for the 12 months ending with the September preceding
1460	1460	20 each November 1, whichever is less, of the originally granted
1461	1461	21 retirement annuity. If the annual unadjusted percentage change
1462	1462	22 in the consumer price index-u for the 12 months ending with the
1463	1463	23 September preceding each November 1 is zero or there is a
1464	1464	24 decrease, then the annuity shall not be increased.
1465	1465	25 For the purposes of Section 1-103.1 of this Code, the
1466	1466	26 changes made to this Section by Public Act 102-263 are
1467	1467
1468	1468
1469	1469
1470	1470
1471	1471
1472	1472	SB3628 - 40 - LRB103 37668 RPS 67795 b
1473	1473
1474	1474
1475	1475	SB3628- 41 -LRB103 37668 RPS 67795 b SB3628 - 41 - LRB103 37668 RPS 67795 b
1476	1476	SB3628 - 41 - LRB103 37668 RPS 67795 b
1477	1477	1 applicable without regard to whether the employee was in
1478	1478	2 active service on or after August 6, 2021 (the effective date
1479	1479	3 of Public Act 102-263).
1480	1480	4 For the purposes of Section 1-103.1 of this Code, the
1481	1481	5 changes made to this Section by Public Act 100-23 are
1482	1482	6 applicable without regard to whether the employee was in
1483	1483	7 active service on or after July 6, 2017 (the effective date of
1484	1484	8 Public Act 100-23).
1485	1485	9 (f) The initial survivor's or widow's annuity of an
1486	1486	10 otherwise eligible survivor or widow of a retired member or
1487	1487	11 participant who first became a member or participant on or
1488	1488	12 after January 1, 2011 shall be in the amount of 66 2/3% of the
1489	1489	13 retired member's or participant's retirement annuity at the
1490	1490	14 date of death. In the case of the death of a member or
1491	1491	15 participant who has not retired and who first became a member
1492	1492	16 or participant on or after January 1, 2011, eligibility for a
1493	1493	17 survivor's or widow's annuity shall be determined by the
1494	1494	18 applicable Article of this Code. The initial benefit shall be
1495	1495	19 66 2/3% of the earned annuity without a reduction due to age. A
1496	1496	20 child's annuity of an otherwise eligible child shall be in the
1497	1497	21 amount prescribed under each Article if applicable. Any
1498	1498	22 survivor's or widow's annuity shall be increased (1) on each
1499	1499	23 January 1 occurring on or after the commencement of the
1500	1500	24 annuity if the deceased member died while receiving a
1501	1501	25 retirement annuity or (2) in other cases, on each January 1
1502	1502	26 occurring after the first anniversary of the commencement of
1503	1503
1504	1504
1505	1505
1506	1506
1507	1507
1508	1508	SB3628 - 41 - LRB103 37668 RPS 67795 b
1509	1509
1510	1510
1511	1511	SB3628- 42 -LRB103 37668 RPS 67795 b SB3628 - 42 - LRB103 37668 RPS 67795 b
1512	1512	SB3628 - 42 - LRB103 37668 RPS 67795 b
1513	1513	1 the annuity. Each annual increase shall be calculated at 3% or
1514	1514	2 one-half the annual unadjusted percentage increase (but not
1515	1515	3 less than zero) in the consumer price index-u for the 12 months
1516	1516	4 ending with the September preceding each November 1, whichever
1517	1517	5 is less, of the originally granted survivor's annuity. If the
1518	1518	6 annual unadjusted percentage change in the consumer price
1519	1519	7 index-u for the 12 months ending with the September preceding
1520	1520	8 each November 1 is zero or there is a decrease, then the
1521	1521	9 annuity shall not be increased.
1522	1522	10 (g) The benefits in Section 14-110 apply only if the
1523	1523	11 person is a State policeman, a fire fighter in the fire
1524	1524	12 protection service of a department, a conservation police
1525	1525	13 officer, an investigator for the Secretary of State, an
1526	1526	14 investigator for the Office of the Attorney General, an arson
1527	1527	15 investigator, a Commerce Commission police officer,
1528	1528	16 investigator for the Department of Revenue or the Illinois
1529	1529	17 Gaming Board, a security employee of the Department of
1530	1530	18 Corrections or the Department of Juvenile Justice, or a
1531	1531	19 security employee of the Department of Innovation and
1532	1532	20 Technology, as those terms are defined in subsection (b) and
1533	1533	21 subsection (c) of Section 14-110. A person who meets the
1534	1534	22 requirements of this Section is entitled to an annuity
1535	1535	23 calculated under the provisions of Section 14-110, in lieu of
1536	1536	24 the regular or minimum retirement annuity, only if the person
1537	1537	25 has withdrawn from service with not less than 20 years of
1538	1538	26 eligible creditable service and has attained age 60,
1539	1539
1540	1540
1541	1541
1542	1542
1543	1543
1544	1544	SB3628 - 42 - LRB103 37668 RPS 67795 b
1545	1545
1546	1546
1547	1547	SB3628- 43 -LRB103 37668 RPS 67795 b SB3628 - 43 - LRB103 37668 RPS 67795 b
1548	1548	SB3628 - 43 - LRB103 37668 RPS 67795 b
1549	1549	1 regardless of whether the attainment of age 60 occurs while
1550	1550	2 the person is still in service.
1551	1551	3 (g-1) The benefits in Section 14-110 apply if the person
1552	1552	4 is a security employee of the Department of Corrections or the
1553	1553	5 Department of Juvenile Justice, as those terms are defined in
1554	1554	6 subsection (b) and subsection (c) of Section 14-110. A person
1555	1555	7 who meets the requirements of this Section is entitled to an
1556	1556	8 annuity calculated under the provisions of Section 14-110, in
1557	1557	9 lieu of the regular or minimum retirement annuity, only if the
1558	1558	10 person has withdrawn from service with not less than 20 years
1559	1559	11 of eligible creditable service and has attained age 55,
1560	1560	12 regardless of whether the attainment of age 55 occurs while
1561	1561	13 the person is still in service.
1562	1562	14 (h) If a person who first becomes a member or a participant
1563	1563	15 of a retirement system or pension fund subject to this Section
1564	1564	16 on or after January 1, 2011 is receiving a retirement annuity
1565	1565	17 or retirement pension under that system or fund and becomes a
1566	1566	18 member or participant under any other system or fund created
1567	1567	19 by this Code and is employed on a full-time basis, except for
1568	1568	20 those members or participants exempted from the provisions of
1569	1569	21 this Section under subsection (a) of this Section, then the
1570	1570	22 person's retirement annuity or retirement pension under that
1571	1571	23 system or fund shall be suspended during that employment. Upon
1572	1572	24 termination of that employment, the person's retirement
1573	1573	25 annuity or retirement pension payments shall resume and be
1574	1574	26 recalculated if recalculation is provided for under the
1575	1575
1576	1576
1577	1577
1578	1578
1579	1579
1580	1580	SB3628 - 43 - LRB103 37668 RPS 67795 b
1581	1581
1582	1582
1583	1583	SB3628- 44 -LRB103 37668 RPS 67795 b SB3628 - 44 - LRB103 37668 RPS 67795 b
1584	1584	SB3628 - 44 - LRB103 37668 RPS 67795 b
1585	1585	1 applicable Article of this Code.
1586	1586	2 If a person who first becomes a member of a retirement
1587	1587	3 system or pension fund subject to this Section on or after
1588	1588	4 January 1, 2012 and is receiving a retirement annuity or
1589	1589	5 retirement pension under that system or fund and accepts on a
1590	1590	6 contractual basis a position to provide services to a
1591	1591	7 governmental entity from which he or she has retired, then
1592	1592	8 that person's annuity or retirement pension earned as an
1593	1593	9 active employee of the employer shall be suspended during that
1594	1594	10 contractual service. A person receiving an annuity or
1595	1595	11 retirement pension under this Code shall notify the pension
1596	1596	12 fund or retirement system from which he or she is receiving an
1597	1597	13 annuity or retirement pension, as well as his or her
1598	1598	14 contractual employer, of his or her retirement status before
1599	1599	15 accepting contractual employment. A person who fails to submit
1600	1600	16 such notification shall be guilty of a Class A misdemeanor and
1601	1601	17 required to pay a fine of $1,000. Upon termination of that
1602	1602	18 contractual employment, the person's retirement annuity or
1603	1603	19 retirement pension payments shall resume and, if appropriate,
1604	1604	20 be recalculated under the applicable provisions of this Code.
1605	1605	21 (i) (Blank).
1606	1606	22 (j) Except for conflicts between this Section and Section
1607	1607	23 1-163, in In the case of a conflict between the provisions of
1608	1608	24 this Section and any other provision of this Code, the
1609	1609	25 provisions of this Section shall control.
1610	1610	26 (Source: P.A. 102-16, eff. 6-17-21; 102-210, eff. 1-1-22;
1611	1611
1612	1612
1613	1613
1614	1614
1615	1615
1616	1616	SB3628 - 44 - LRB103 37668 RPS 67795 b
1617	1617
1618	1618
1619	1619	SB3628- 45 -LRB103 37668 RPS 67795 b SB3628 - 45 - LRB103 37668 RPS 67795 b
1620	1620	SB3628 - 45 - LRB103 37668 RPS 67795 b
1621	1621	1 102-263, eff. 8-6-21; 102-956, eff. 5-27-22; 103-529, eff.
1622	1622	2 8-11-23.)
1623	1623	3 (40 ILCS 5/1-163 new)
1624	1624	4 Sec. 1-163. Benefits for certain Tier 2 members.
1625	1625	5 (a) Notwithstanding any provision of law to the contrary,
1626	1626	6 including Section 1-160, this Section applies to a person who
1627	1627	7 first becomes a member or participant of a pension fund or
1628	1628	8 retirement system established under Article 7, 8, 9, 14, or 15
1629	1629	9 on or after January 1, 2011. To the extent that any provision
1630	1630	10 of this Section conflicts with a provision under those
1631	1631	11 Articles or Section 1-160, this Section controls.
1632	1632	12 (b) "Final average salary" means, except as otherwise
1633	1633	13 provided in this subsection, the average monthly (or annual)
1634	1634	14 salary obtained by dividing the total salary or earnings
1635	1635	15 calculated under the Article applicable to the member or
1636	1636	16 participant during the 60 consecutive months (or 5 consecutive
1637	1637	17 years) of service within the last 120 months (or 10 years) of
1638	1638	18 service in which the total salary or earnings calculated under
1639	1639	19 the applicable Article was the highest by the number of months
1640	1640	20 (or years) of service in that period. For the purposes of a
1641	1641	21 person who first becomes a member or participant of any
1642	1642	22 retirement system or pension fund to which this Section
1643	1643	23 applies on or after January 1, 2011, in this Code, "final
1644	1644	24 average salary" shall be substituted for the following:
1645	1645	25 (1) In Article 7 (except for service as sheriff's law
1646	1646
1647	1647
1648	1648
1649	1649
1650	1650
1651	1651	SB3628 - 45 - LRB103 37668 RPS 67795 b
1652	1652
1653	1653
1654	1654	SB3628- 46 -LRB103 37668 RPS 67795 b SB3628 - 46 - LRB103 37668 RPS 67795 b
1655	1655	SB3628 - 46 - LRB103 37668 RPS 67795 b
1656	1656	1 enforcement employees), "final rate of earnings".
1657	1657	2 (2) In Articles 8 and 9, "highest average annual
1658	1658	3 salary for any 4 consecutive years within the last 10
1659	1659	4 years of service immediately preceding the date of
1660	1660	5 withdrawal".
1661	1661	6 (3) In Article 14, "final average compensation".
1662	1662	7 (c) Beginning on January 1, 2011, for all purposes under
1663	1663	8 this Code (including without limitation the calculation of
1664	1664	9 benefits and employee contributions), the annual earnings,
1665	1665	10 salary, or wages (based on the plan year) of a member or
1666	1666	11 participant to whom this Section applies shall not exceed the
1667	1667	12 federal Social Security Wage Base then in effect.
1668	1668	13 (d) A member or participant is entitled to a retirement
1669	1669	14 annuity upon written application if he or she has attained age
1670	1670	15 60, has at least 20 years of service credit, and is otherwise
1671	1671	16 eligible under the requirements of the applicable Article.
1672	1672	17 A member or participant is entitled to a retirement
1673	1673	18 annuity upon written application if he or she has attained age
1674	1674	19 67, has at least 10 years of service credit, and is otherwise
1675	1675	20 eligible under the requirements of the applicable Article.
1676	1676	21 If the Article under which a member or participant
1677	1677	22 participates provides for a retirement age of under 60 with a
1678	1678	23 reduction in the amount of the annuity for persons who first
1679	1679	24 became members before January 1, 2011, then that provision
1680	1680	25 shall apply to the member or participant with the same age,
1681	1681	26 service, and other eligibility requirements and in the same
1682	1682
1683	1683
1684	1684
1685	1685
1686	1686
1687	1687	SB3628 - 46 - LRB103 37668 RPS 67795 b
1688	1688
1689	1689
1690	1690	SB3628- 47 -LRB103 37668 RPS 67795 b SB3628 - 47 - LRB103 37668 RPS 67795 b
1691	1691	SB3628 - 47 - LRB103 37668 RPS 67795 b
1692	1692	1 amount, including any reduction due to age, as provided in the
1693	1693	2 applicable Article.
1694	1694	3 (e) Any retirement annuity or supplemental annuity shall
1695	1695	4 be subject to annual increases on January 1 in the manner and
1696	1696	5 with the same eligibility requirements provided for members or
1697	1697	6 participants under the applicable Article who first became
1698	1698	7 members or participants in that Article before January 1,
1699	1699	8 2011, except that each annual increase shall be calculated at
1700	1700	9 3% or one-half the annual unadjusted percentage increase (but
1701	1701	10 not less than zero) in the consumer price index-u for the 12
1702	1702	11 months ending with the September preceding each November 1,
1703	1703	12 whichever is greater, of the originally granted retirement
1704	1704	13 annuity. If the annual unadjusted percentage change in the
1705	1705	14 consumer price index-u for the 12 months ending with the
1706	1706	15 September preceding each November 1 is zero or there is a
1707	1707	16 decrease, then the annuity shall not be increased.
1708	1708	17 For the purposes of this Section, "consumer price index-u"
1709	1709	18 means the index published by the Bureau of Labor Statistics of
1710	1710	19 the United States Department of Labor that measures the
1711	1711	20 average change in prices of goods and services purchased by
1712	1712	21 all urban consumers, United States city average, all items,
1713	1713	22 1982-84 = 100. The new amount resulting from each annual
1714	1714	23 adjustment shall be determined by the Public Pension Division
1715	1715	24 of the Department of Insurance and made available to the
1716	1716	25 boards of the retirement systems and pension funds by November
1717	1717	26 1 of each year.
1718	1718
1719	1719
1720	1720
1721	1721
1722	1722
1723	1723	SB3628 - 47 - LRB103 37668 RPS 67795 b
1724	1724
1725	1725
1726	1726	SB3628- 48 -LRB103 37668 RPS 67795 b SB3628 - 48 - LRB103 37668 RPS 67795 b
1727	1727	SB3628 - 48 - LRB103 37668 RPS 67795 b
1728	1728	1 (40 ILCS 5/7-226 new)
1729	1729	2 Sec. 7-226. Application of Section 1-163. To the extent
1730	1730	3 that any provision of this Article conflicts with Section
1731	1731	4 1-163, Section 1-163 controls.
1732	1732	5 (40 ILCS 5/8-251.5 new)
1733	1733	6 Sec. 8-251.5. Application of Section 1-163. To the extent
1734	1734	7 that any provision of this Article conflicts with Section
1735	1735	8 1-163, Section 1-163 controls.
1736	1736	9 (40 ILCS 5/9-242 new)
1737	1737	10 Sec. 9-242. Application of Section 1-163. To the extent
1738	1738	11 that any provision of this Article conflicts with Section
1739	1739	12 1-163, Section 1-163 controls.
1740	1740	13 (40 ILCS 5/14-152.1)
1741	1741	14 Sec. 14-152.1. Application and expiration of new benefit
1742	1742	15 increases.
1743	1743	16 (a) As used in this Section, "new benefit increase" means
1744	1744	17 an increase in the amount of any benefit provided under this
1745	1745	18 Article, or an expansion of the conditions of eligibility for
1746	1746	19 any benefit under this Article, that results from an amendment
1747	1747	20 to this Code that takes effect after June 1, 2005 (the
1748	1748	21 effective date of Public Act 94-4). "New benefit increase",
1749	1749	22 however, does not include any benefit increase resulting from
1750	1750
1751	1751
1752	1752
1753	1753
1754	1754
1755	1755	SB3628 - 48 - LRB103 37668 RPS 67795 b
1756	1756
1757	1757
1758	1758	SB3628- 49 -LRB103 37668 RPS 67795 b SB3628 - 49 - LRB103 37668 RPS 67795 b
1759	1759	SB3628 - 49 - LRB103 37668 RPS 67795 b
1760	1760	1 the changes made to Article 1 or this Article by Public Act
1761	1761	2 96-37, Public Act 100-23, Public Act 100-587, Public Act
1762	1762	3 100-611, Public Act 101-10, Public Act 101-610, Public Act
1763	1763	4 102-210, Public Act 102-856, Public Act 102-956, or this
1764	1764	5 amendatory Act of the 103rd General Assembly this amendatory
1765	1765	6 Act of the 102nd General Assembly.
1766	1766	7 (b) Notwithstanding any other provision of this Code or
1767	1767	8 any subsequent amendment to this Code, every new benefit
1768	1768	9 increase is subject to this Section and shall be deemed to be
1769	1769	10 granted only in conformance with and contingent upon
1770	1770	11 compliance with the provisions of this Section.
1771	1771	12 (c) The Public Act enacting a new benefit increase must
1772	1772	13 identify and provide for payment to the System of additional
1773	1773	14 funding at least sufficient to fund the resulting annual
1774	1774	15 increase in cost to the System as it accrues.
1775	1775	16 Every new benefit increase is contingent upon the General
1776	1776	17 Assembly providing the additional funding required under this
1777	1777	18 subsection. The Commission on Government Forecasting and
1778	1778	19 Accountability shall analyze whether adequate additional
1779	1779	20 funding has been provided for the new benefit increase and
1780	1780	21 shall report its analysis to the Public Pension Division of
1781	1781	22 the Department of Insurance. A new benefit increase created by
1782	1782	23 a Public Act that does not include the additional funding
1783	1783	24 required under this subsection is null and void. If the Public
1784	1784	25 Pension Division determines that the additional funding
1785	1785	26 provided for a new benefit increase under this subsection is
1786	1786
1787	1787
1788	1788
1789	1789
1790	1790
1791	1791	SB3628 - 49 - LRB103 37668 RPS 67795 b
1792	1792
1793	1793
1794	1794	SB3628- 50 -LRB103 37668 RPS 67795 b SB3628 - 50 - LRB103 37668 RPS 67795 b
1795	1795	SB3628 - 50 - LRB103 37668 RPS 67795 b
1796	1796	1 or has become inadequate, it may so certify to the Governor and
1797	1797	2 the State Comptroller and, in the absence of corrective action
1798	1798	3 by the General Assembly, the new benefit increase shall expire
1799	1799	4 at the end of the fiscal year in which the certification is
1800	1800	5 made.
1801	1801	6 (d) Every new benefit increase shall expire 5 years after
1802	1802	7 its effective date or on such earlier date as may be specified
1803	1803	8 in the language enacting the new benefit increase or provided
1804	1804	9 under subsection (c). This does not prevent the General
1805	1805	10 Assembly from extending or re-creating a new benefit increase
1806	1806	11 by law.
1807	1807	12 (e) Except as otherwise provided in the language creating
1808	1808	13 the new benefit increase, a new benefit increase that expires
1809	1809	14 under this Section continues to apply to persons who applied
1810	1810	15 and qualified for the affected benefit while the new benefit
1811	1811	16 increase was in effect and to the affected beneficiaries and
1812	1812	17 alternate payees of such persons, but does not apply to any
1813	1813	18 other person, including, without limitation, a person who
1814	1814	19 continues in service after the expiration date and did not
1815	1815	20 apply and qualify for the affected benefit while the new
1816	1816	21 benefit increase was in effect.
1817	1817	22 (Source: P.A. 101-10, eff. 6-5-19; 101-81, eff. 7-12-19;
1818	1818	23 101-610, eff. 1-1-20; 102-210, eff. 7-30-21; 102-856, eff.
1819	1819	24 1-1-23; 102-956, eff. 5-27-22.)
1820	1820	25 (40 ILCS 5/14-157 new)
1821	1821
1822	1822
1823	1823
1824	1824
1825	1825
1826	1826	SB3628 - 50 - LRB103 37668 RPS 67795 b
1827	1827
1828	1828
1829	1829	SB3628- 51 -LRB103 37668 RPS 67795 b SB3628 - 51 - LRB103 37668 RPS 67795 b
1830	1830	SB3628 - 51 - LRB103 37668 RPS 67795 b
1831	1831	1 Sec. 14-157. Application of Section 1-163. To the extent
1832	1832	2 that any provision of this Article conflicts with Section
1833	1833	3 1-163, Section 1-163 controls.
1834	1834	4 (40 ILCS 5/15-198)
1835	1835	5 Sec. 15-198. Application and expiration of new benefit
1836	1836	6 increases.
1837	1837	7 (a) As used in this Section, "new benefit increase" means
1838	1838	8 an increase in the amount of any benefit provided under this
1839	1839	9 Article, or an expansion of the conditions of eligibility for
1840	1840	10 any benefit under this Article, that results from an amendment
1841	1841	11 to this Code that takes effect after June 1, 2005 (the
1842	1842	12 effective date of Public Act 94-4). "New benefit increase",
1843	1843	13 however, does not include any benefit increase resulting from
1844	1844	14 the changes made to Article 1 or this Article by Public Act
1845	1845	15 100-23, Public Act 100-587, Public Act 100-769, Public Act
1846	1846	16 101-10, Public Act 101-610, Public Act 102-16, Public Act
1847	1847	17 103-80, Public Act 103-548, or this amendatory Act of the
1848	1848	18 103rd General Assembly or this amendatory Act of the 103rd
1849	1849	19 General Assembly.
1850	1850	20 (b) Notwithstanding any other provision of this Code or
1851	1851	21 any subsequent amendment to this Code, every new benefit
1852	1852	22 increase is subject to this Section and shall be deemed to be
1853	1853	23 granted only in conformance with and contingent upon
1854	1854	24 compliance with the provisions of this Section.
1855	1855	25 (c) The Public Act enacting a new benefit increase must
1856	1856
1857	1857
1858	1858
1859	1859
1860	1860
1861	1861	SB3628 - 51 - LRB103 37668 RPS 67795 b
1862	1862
1863	1863
1864	1864	SB3628- 52 -LRB103 37668 RPS 67795 b SB3628 - 52 - LRB103 37668 RPS 67795 b
1865	1865	SB3628 - 52 - LRB103 37668 RPS 67795 b
1866	1866	1 identify and provide for payment to the System of additional
1867	1867	2 funding at least sufficient to fund the resulting annual
1868	1868	3 increase in cost to the System as it accrues.
1869	1869	4 Every new benefit increase is contingent upon the General
1870	1870	5 Assembly providing the additional funding required under this
1871	1871	6 subsection. The Commission on Government Forecasting and
1872	1872	7 Accountability shall analyze whether adequate additional
1873	1873	8 funding has been provided for the new benefit increase and
1874	1874	9 shall report its analysis to the Public Pension Division of
1875	1875	10 the Department of Insurance. A new benefit increase created by
1876	1876	11 a Public Act that does not include the additional funding
1877	1877	12 required under this subsection is null and void. If the Public
1878	1878	13 Pension Division determines that the additional funding
1879	1879	14 provided for a new benefit increase under this subsection is
1880	1880	15 or has become inadequate, it may so certify to the Governor and
1881	1881	16 the State Comptroller and, in the absence of corrective action
1882	1882	17 by the General Assembly, the new benefit increase shall expire
1883	1883	18 at the end of the fiscal year in which the certification is
1884	1884	19 made.
1885	1885	20 (d) Every new benefit increase shall expire 5 years after
1886	1886	21 its effective date or on such earlier date as may be specified
1887	1887	22 in the language enacting the new benefit increase or provided
1888	1888	23 under subsection (c). This does not prevent the General
1889	1889	24 Assembly from extending or re-creating a new benefit increase
1890	1890	25 by law.
1891	1891	26 (e) Except as otherwise provided in the language creating
1892	1892
1893	1893
1894	1894
1895	1895
1896	1896
1897	1897	SB3628 - 52 - LRB103 37668 RPS 67795 b
1898	1898
1899	1899
1900	1900	SB3628- 53 -LRB103 37668 RPS 67795 b SB3628 - 53 - LRB103 37668 RPS 67795 b
1901	1901	SB3628 - 53 - LRB103 37668 RPS 67795 b
1902	1902	1 the new benefit increase, a new benefit increase that expires
1903	1903	2 under this Section continues to apply to persons who applied
1904	1904	3 and qualified for the affected benefit while the new benefit
1905	1905	4 increase was in effect and to the affected beneficiaries and
1906	1906	5 alternate payees of such persons, but does not apply to any
1907	1907	6 other person, including, without limitation, a person who
1908	1908	7 continues in service after the expiration date and did not
1909	1909	8 apply and qualify for the affected benefit while the new
1910	1910	9 benefit increase was in effect.
1911	1911	10 (Source: P.A. 102-16, eff. 6-17-21; 103-80, eff. 6-9-23;
1912	1912	11 103-548, eff. 8-11-23; revised 8-31-23.)
1913	1913	12 (40 ILCS 5/15-203 new)
1914	1914	13 Sec. 15-203. Application of Section 1-163. To the extent
1915	1915	14 that any provision of this Article conflicts with Section
1916	1916	15 1-163, Section 1-163 controls.
1917	1917	16 Section 90. The State Mandates Act is amended by adding
1918	1918	17 Section 8.48 as follows:
1919	1919	18 (30 ILCS 805/8.48 new)
1920	1920	19 Sec. 8.48. Exempt mandate. Notwithstanding Sections 6 and
1921	1921	20 8 of this Act, no reimbursement by the State is required for
1922	1922	21 the implementation of any mandate created by this amendatory
1923	1923	22 Act of the 103rd General Assembly.
1924	1924	SB3628- 54 -LRB103 37668 RPS 67795 b 1 INDEX 2 Statutes amended in order of appearance SB3628- 54 -LRB103 37668 RPS 67795 b SB3628 - 54 - LRB103 37668 RPS 67795 b 1 INDEX 2 Statutes amended in order of appearance
1925	1925	SB3628- 54 -LRB103 37668 RPS 67795 b SB3628 - 54 - LRB103 37668 RPS 67795 b
1926	1926	SB3628 - 54 - LRB103 37668 RPS 67795 b
1927	1927	1 INDEX
1928	1928	2 Statutes amended in order of appearance
1929	1929
1930	1930
1931	1931
1932	1932
1933	1933
1934	1934	SB3628 - 53 - LRB103 37668 RPS 67795 b
1935	1935
1936	1936
1937	1937
1938	1938	SB3628- 54 -LRB103 37668 RPS 67795 b SB3628 - 54 - LRB103 37668 RPS 67795 b
1939	1939	SB3628 - 54 - LRB103 37668 RPS 67795 b
1940	1940	1 INDEX
1941	1941	2 Statutes amended in order of appearance
1942	1942
1943	1943
1944	1944
1945	1945
1946	1946
1947	1947	SB3628 - 54 - LRB103 37668 RPS 67795 b