Illinois 2025-2026 Regular Session

Illinois Senate Bill SB1934 Compare Versions

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

Old	New	Differences
1	1	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB1934 Introduced 2/6/2025, by Sen. Robert F. Martwick SYNOPSIS AS INTRODUCED: 40 ILCS 5/1-16030 ILCS 805/8.49 new Amends the General Provisions Article of the Illinois Pension Code. In provisions concerning Tier 2 benefits, provides that the initial survivor's or widow's benefit (instead of the initial benefit) shall be 66 2/3% of the earned annuity without a reduction due to age. Provides that a child's annuity of an otherwise eligible child shall be in the amount and using the formula prescribed under the applicable Article of the Code, and such formula shall be used for calculation of the child's annuity only. Provides that, if a benefit is paid to both a widow or survivor and a child or multiple children, the widow's portion shall be calculated in the amount of 66 2/3% and reduced by the pro rata portion of any child or children's portion as calculated in accordance with the terms of the Article of the Code that is applicable to the pension fund or retirement system that is providing the benefit using the method prescribed in the applicable Article of the Code. Adds child's annuities to provisions concerning automatic annual increases. Amends the State Mandates Act to require implementation without reimbursement. LRB104 10087 RPS 20159 b STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY A BILL FOR 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB1934 Introduced 2/6/2025, by Sen. Robert F. Martwick SYNOPSIS AS INTRODUCED: 40 ILCS 5/1-16030 ILCS 805/8.49 new 40 ILCS 5/1-160 30 ILCS 805/8.49 new Amends the General Provisions Article of the Illinois Pension Code. In provisions concerning Tier 2 benefits, provides that the initial survivor's or widow's benefit (instead of the initial benefit) shall be 66 2/3% of the earned annuity without a reduction due to age. Provides that a child's annuity of an otherwise eligible child shall be in the amount and using the formula prescribed under the applicable Article of the Code, and such formula shall be used for calculation of the child's annuity only. Provides that, if a benefit is paid to both a widow or survivor and a child or multiple children, the widow's portion shall be calculated in the amount of 66 2/3% and reduced by the pro rata portion of any child or children's portion as calculated in accordance with the terms of the Article of the Code that is applicable to the pension fund or retirement system that is providing the benefit using the method prescribed in the applicable Article of the Code. Adds child's annuities to provisions concerning automatic annual increases. Amends the State Mandates Act to require implementation without reimbursement. LRB104 10087 RPS 20159 b LRB104 10087 RPS 20159 b STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY A BILL FOR
2	2	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB1934 Introduced 2/6/2025, by Sen. Robert F. Martwick SYNOPSIS AS INTRODUCED:
3	3	40 ILCS 5/1-16030 ILCS 805/8.49 new 40 ILCS 5/1-160 30 ILCS 805/8.49 new
4	4	40 ILCS 5/1-160
5	5	30 ILCS 805/8.49 new
6	6	Amends the General Provisions Article of the Illinois Pension Code. In provisions concerning Tier 2 benefits, provides that the initial survivor's or widow's benefit (instead of the initial benefit) shall be 66 2/3% of the earned annuity without a reduction due to age. Provides that a child's annuity of an otherwise eligible child shall be in the amount and using the formula prescribed under the applicable Article of the Code, and such formula shall be used for calculation of the child's annuity only. Provides that, if a benefit is paid to both a widow or survivor and a child or multiple children, the widow's portion shall be calculated in the amount of 66 2/3% and reduced by the pro rata portion of any child or children's portion as calculated in accordance with the terms of the Article of the Code that is applicable to the pension fund or retirement system that is providing the benefit using the method prescribed in the applicable Article of the Code. Adds child's annuities to provisions concerning automatic annual increases. Amends the State Mandates Act to require implementation without reimbursement.
7	7	LRB104 10087 RPS 20159 b LRB104 10087 RPS 20159 b
8	8	LRB104 10087 RPS 20159 b
9	9	STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY
10	10	STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY
11	11	A BILL FOR
12	12	SB1934LRB104 10087 RPS 20159 b SB1934 LRB104 10087 RPS 20159 b
13	13	SB1934 LRB104 10087 RPS 20159 b
14	14	1 AN ACT concerning public employee benefits.
15	15	2 Be it enacted by the People of the State of Illinois,
16	16	3 represented in the General Assembly:
17	17	4 Section 5. The Illinois Pension Code is amended by
18	18	5 changing Section 1-160 as follows:
19	19	6 (40 ILCS 5/1-160)
20	20	7 (Text of Section from P.A. 102-719)
21	21	8 Sec. 1-160. Provisions applicable to new hires.
22	22	9 (a) The provisions of this Section apply to a person who,
23	23	10 on or after January 1, 2011, first becomes a member or a
24	24	11 participant under any reciprocal retirement system or pension
25	25	12 fund established under this Code, other than a retirement
26	26	13 system or pension fund established under Article 2, 3, 4, 5, 6,
27	27	14 7, 15, or 18 of this Code, notwithstanding any other provision
28	28	15 of this Code to the contrary, but do not apply to any
29	29	16 self-managed plan established under this Code or to any
30	30	17 participant of the retirement plan established under Section
31	31	18 22-101; except that this Section applies to a person who
32	32	19 elected to establish alternative credits by electing in
33	33	20 writing after January 1, 2011, but before August 8, 2011,
34	34	21 under Section 7-145.1 of this Code. Notwithstanding anything
35	35	22 to the contrary in this Section, for purposes of this Section,
36	36	23 a person who is a Tier 1 regular employee as defined in Section
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40	40	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB1934 Introduced 2/6/2025, by Sen. Robert F. Martwick SYNOPSIS AS INTRODUCED:
41	41	40 ILCS 5/1-16030 ILCS 805/8.49 new 40 ILCS 5/1-160 30 ILCS 805/8.49 new
42	42	40 ILCS 5/1-160
43	43	30 ILCS 805/8.49 new
44	44	Amends the General Provisions Article of the Illinois Pension Code. In provisions concerning Tier 2 benefits, provides that the initial survivor's or widow's benefit (instead of the initial benefit) shall be 66 2/3% of the earned annuity without a reduction due to age. Provides that a child's annuity of an otherwise eligible child shall be in the amount and using the formula prescribed under the applicable Article of the Code, and such formula shall be used for calculation of the child's annuity only. Provides that, if a benefit is paid to both a widow or survivor and a child or multiple children, the widow's portion shall be calculated in the amount of 66 2/3% and reduced by the pro rata portion of any child or children's portion as calculated in accordance with the terms of the Article of the Code that is applicable to the pension fund or retirement system that is providing the benefit using the method prescribed in the applicable Article of the Code. Adds child's annuities to provisions concerning automatic annual increases. Amends the State Mandates Act to require implementation without reimbursement.
45	45	LRB104 10087 RPS 20159 b LRB104 10087 RPS 20159 b
46	46	LRB104 10087 RPS 20159 b
47	47	STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY
48	48	STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY
49	49	A BILL FOR
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55	55	40 ILCS 5/1-160
56	56	30 ILCS 805/8.49 new
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62	62	STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY
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79	79	1 7-109.4 of this Code or who participated in a retirement
80	80	2 system under Article 15 prior to January 1, 2011 shall be
81	81	3 deemed a person who first became a member or participant prior
82	82	4 to January 1, 2011 under any retirement system or pension fund
83	83	5 subject to this Section. The changes made to this Section by
84	84	6 Public Act 98-596 are a clarification of existing law and are
85	85	7 intended to be retroactive to January 1, 2011 (the effective
86	86	8 date of Public Act 96-889), notwithstanding the provisions of
87	87	9 Section 1-103.1 of this Code.
88	88	10 This Section does not apply to a person who first becomes a
89	89	11 noncovered employee under Article 14 on or after the
90	90	12 implementation date of the plan created under Section 1-161
91	91	13 for that Article, unless that person elects under subsection
92	92	14 (b) of Section 1-161 to instead receive the benefits provided
93	93	15 under this Section and the applicable provisions of that
94	94	16 Article.
95	95	17 This Section does not apply to a person who first becomes a
96	96	18 member or participant under Article 16 on or after the
97	97	19 implementation date of the plan created under Section 1-161
98	98	20 for that Article, unless that person elects under subsection
99	99	21 (b) of Section 1-161 to instead receive the benefits provided
100	100	22 under this Section and the applicable provisions of that
101	101	23 Article.
102	102	24 This Section does not apply to a person who elects under
103	103	25 subsection (c-5) of Section 1-161 to receive the benefits
104	104	26 under Section 1-161.
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115	115	1 This Section does not apply to a person who first becomes a
116	116	2 member or participant of an affected pension fund on or after 6
117	117	3 months after the resolution or ordinance date, as defined in
118	118	4 Section 1-162, unless that person elects under subsection (c)
119	119	5 of Section 1-162 to receive the benefits provided under this
120	120	6 Section and the applicable provisions of the Article under
121	121	7 which he or she is a member or participant.
122	122	8 (b) "Final average salary" means, except as otherwise
123	123	9 provided in this subsection, the average monthly (or annual)
124	124	10 salary obtained by dividing the total salary or earnings
125	125	11 calculated under the Article applicable to the member or
126	126	12 participant during the 96 consecutive months (or 8 consecutive
127	127	13 years) of service within the last 120 months (or 10 years) of
128	128	14 service in which the total salary or earnings calculated under
129	129	15 the applicable Article was the highest by the number of months
130	130	16 (or years) of service in that period. For the purposes of a
131	131	17 person who first becomes a member or participant of any
132	132	18 retirement system or pension fund to which this Section
133	133	19 applies on or after January 1, 2011, in this Code, "final
134	134	20 average salary" shall be substituted for the following:
135	135	21 (1) (Blank).
136	136	22 (2) In Articles 8, 9, 10, 11, and 12, "highest average
137	137	23 annual salary for any 4 consecutive years within the last
138	138	24 10 years of service immediately preceding the date of
139	139	25 withdrawal".
140	140	26 (3) In Article 13, "average final salary".
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151	151	1 (4) In Article 14, "final average compensation".
152	152	2 (5) In Article 17, "average salary".
153	153	3 (6) In Section 22-207, "wages or salary received by
154	154	4 him at the date of retirement or discharge".
155	155	5 A member of the Teachers' Retirement System of the State
156	156	6 of Illinois who retires on or after June 1, 2021 and for whom
157	157	7 the 2020-2021 school year is used in the calculation of the
158	158	8 member's final average salary shall use the higher of the
159	159	9 following for the purpose of determining the member's final
160	160	10 average salary:
161	161	11 (A) the amount otherwise calculated under the first
162	162	12 paragraph of this subsection; or
163	163	13 (B) an amount calculated by the Teachers' Retirement
164	164	14 System of the State of Illinois using the average of the
165	165	15 monthly (or annual) salary obtained by dividing the total
166	166	16 salary or earnings calculated under Article 16 applicable
167	167	17 to the member or participant during the 96 months (or 8
168	168	18 years) of service within the last 120 months (or 10 years)
169	169	19 of service in which the total salary or earnings
170	170	20 calculated under the Article was the highest by the number
171	171	21 of months (or years) of service in that period.
172	172	22 (b-5) Beginning on January 1, 2011, for all purposes under
173	173	23 this Code (including without limitation the calculation of
174	174	24 benefits and employee contributions), the annual earnings,
175	175	25 salary, or wages (based on the plan year) of a member or
176	176	26 participant to whom this Section applies shall not exceed
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187	187	1 $106,800; however, that amount shall annually thereafter be
188	188	2 increased by the lesser of (i) 3% of that amount, including all
189	189	3 previous adjustments, or (ii) one-half the annual unadjusted
190	190	4 percentage increase (but not less than zero) in the consumer
191	191	5 price index-u for the 12 months ending with the September
192	192	6 preceding each November 1, including all previous adjustments.
193	193	7 For the purposes of this Section, "consumer price index-u"
194	194	8 means the index published by the Bureau of Labor Statistics of
195	195	9 the United States Department of Labor that measures the
196	196	10 average change in prices of goods and services purchased by
197	197	11 all urban consumers, United States city average, all items,
198	198	12 1982-84 = 100. The new amount resulting from each annual
199	199	13 adjustment shall be determined by the Public Pension Division
200	200	14 of the Department of Insurance and made available to the
201	201	15 boards of the retirement systems and pension funds by November
202	202	16 1 of each year.
203	203	17 (b-10) Beginning on January 1, 2024, for all purposes
204	204	18 under this Code (including, without limitation, the
205	205	19 calculation of benefits and employee contributions), the
206	206	20 annual earnings, salary, or wages (based on the plan year) of a
207	207	21 member or participant under Article 9 to whom this Section
208	208	22 applies shall include an annual earnings, salary, or wage cap
209	209	23 that tracks the Social Security wage base. Maximum annual
210	210	24 earnings, wages, or salary shall be the annual contribution
211	211	25 and benefit base established for the applicable year by the
212	212	26 Commissioner of the Social Security Administration under the
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223	223	1 federal Social Security Act.
224	224	2 However, in no event shall the annual earnings, salary, or
225	225	3 wages for the purposes of this Article and Article 9 exceed any
226	226	4 limitation imposed on annual earnings, salary, or wages under
227	227	5 Section 1-117. Under no circumstances shall the maximum amount
228	228	6 of annual earnings, salary, or wages be greater than the
229	229	7 amount set forth in this subsection (b-10) as a result of
230	230	8 reciprocal service or any provisions regarding reciprocal
231	231	9 services, nor shall the Fund under Article 9 be required to pay
232	232	10 any refund as a result of the application of this maximum
233	233	11 annual earnings, salary, and wage cap.
234	234	12 Nothing in this subsection (b-10) shall cause or otherwise
235	235	13 result in any retroactive adjustment of any employee
236	236	14 contributions. Nothing in this subsection (b-10) shall cause
237	237	15 or otherwise result in any retroactive adjustment of
238	238	16 disability or other payments made between January 1, 2011 and
239	239	17 January 1, 2024.
240	240	18 (c) A member or participant is entitled to a retirement
241	241	19 annuity upon written application if he or she has attained age
242	242	20 67 (age 65, with respect to service under Article 12 that is
243	243	21 subject to this Section, for a member or participant under
244	244	22 Article 12 who first becomes a member or participant under
245	245	23 Article 12 on or after January 1, 2022 or who makes the
246	246	24 election under item (i) of subsection (d-15) of this Section)
247	247	25 and has at least 10 years of service credit and is otherwise
248	248	26 eligible under the requirements of the applicable Article.
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259	259	1 A member or participant who has attained age 62 (age 60,
260	260	2 with respect to service under Article 12 that is subject to
261	261	3 this Section, for a member or participant under Article 12 who
262	262	4 first becomes a member or participant under Article 12 on or
263	263	5 after January 1, 2022 or who makes the election under item (i)
264	264	6 of subsection (d-15) of this Section) and has at least 10 years
265	265	7 of service credit and is otherwise eligible under the
266	266	8 requirements of the applicable Article may elect to receive
267	267	9 the lower retirement annuity provided in subsection (d) of
268	268	10 this Section.
269	269	11 (c-5) A person who first becomes a member or a participant
270	270	12 subject to this Section on or after July 6, 2017 (the effective
271	271	13 date of Public Act 100-23), notwithstanding any other
272	272	14 provision of this Code to the contrary, is entitled to a
273	273	15 retirement annuity under Article 8 or Article 11 upon written
274	274	16 application if he or she has attained age 65 and has at least
275	275	17 10 years of service credit and is otherwise eligible under the
276	276	18 requirements of Article 8 or Article 11 of this Code,
277	277	19 whichever is applicable.
278	278	20 (d) The retirement annuity of a member or participant who
279	279	21 is retiring after attaining age 62 (age 60, with respect to
280	280	22 service under Article 12 that is subject to this Section, for a
281	281	23 member or participant under Article 12 who first becomes a
282	282	24 member or participant under Article 12 on or after January 1,
283	283	25 2022 or who makes the election under item (i) of subsection
284	284	26 (d-15) of this Section) with at least 10 years of service
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295	295	1 credit shall be reduced by one-half of 1% for each full month
296	296	2 that the member's age is under age 67 (age 65, with respect to
297	297	3 service under Article 12 that is subject to this Section, for a
298	298	4 member or participant under Article 12 who first becomes a
299	299	5 member or participant under Article 12 on or after January 1,
300	300	6 2022 or who makes the election under item (i) of subsection
301	301	7 (d-15) of this Section).
302	302	8 (d-5) The retirement annuity payable under Article 8 or
303	303	9 Article 11 to an eligible person subject to subsection (c-5)
304	304	10 of this Section who is retiring at age 60 with at least 10
305	305	11 years of service credit shall be reduced by one-half of 1% for
306	306	12 each full month that the member's age is under age 65.
307	307	13 (d-10) Each person who first became a member or
308	308	14 participant under Article 8 or Article 11 of this Code on or
309	309	15 after January 1, 2011 and prior to July 6, 2017 (the effective
310	310	16 date of Public Act 100-23) shall make an irrevocable election
311	311	17 either:
312	312	18 (i) to be eligible for the reduced retirement age
313	313	19 provided in subsections (c-5) and (d-5) of this Section,
314	314	20 the eligibility for which is conditioned upon the member
315	315	21 or participant agreeing to the increases in employee
316	316	22 contributions for age and service annuities provided in
317	317	23 subsection (a-5) of Section 8-174 of this Code (for
318	318	24 service under Article 8) or subsection (a-5) of Section
319	319	25 11-170 of this Code (for service under Article 11); or
320	320	26 (ii) to not agree to item (i) of this subsection
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331	331	1 (d-10), in which case the member or participant shall
332	332	2 continue to be subject to the retirement age provisions in
333	333	3 subsections (c) and (d) of this Section and the employee
334	334	4 contributions for age and service annuity as provided in
335	335	5 subsection (a) of Section 8-174 of this Code (for service
336	336	6 under Article 8) or subsection (a) of Section 11-170 of
337	337	7 this Code (for service under Article 11).
338	338	8 The election provided for in this subsection shall be made
339	339	9 between October 1, 2017 and November 15, 2017. A person
340	340	10 subject to this subsection who makes the required election
341	341	11 shall remain bound by that election. A person subject to this
342	342	12 subsection who fails for any reason to make the required
343	343	13 election within the time specified in this subsection shall be
344	344	14 deemed to have made the election under item (ii).
345	345	15 (d-15) Each person who first becomes a member or
346	346	16 participant under Article 12 on or after January 1, 2011 and
347	347	17 prior to January 1, 2022 shall make an irrevocable election
348	348	18 either:
349	349	19 (i) to be eligible for the reduced retirement age
350	350	20 specified in subsections (c) and (d) of this Section, the
351	351	21 eligibility for which is conditioned upon the member or
352	352	22 participant agreeing to the increase in employee
353	353	23 contributions for service annuities specified in
354	354	24 subsection (b) of Section 12-150; or
355	355	25 (ii) to not agree to item (i) of this subsection
356	356	26 (d-15), in which case the member or participant shall not
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367	367	1 be eligible for the reduced retirement age specified in
368	368	2 subsections (c) and (d) of this Section and shall not be
369	369	3 subject to the increase in employee contributions for
370	370	4 service annuities specified in subsection (b) of Section
371	371	5 12-150.
372	372	6 The election provided for in this subsection shall be made
373	373	7 between January 1, 2022 and April 1, 2022. A person subject to
374	374	8 this subsection who makes the required election shall remain
375	375	9 bound by that election. A person subject to this subsection
376	376	10 who fails for any reason to make the required election within
377	377	11 the time specified in this subsection shall be deemed to have
378	378	12 made the election under item (ii).
379	379	13 (e) Any retirement annuity or supplemental annuity shall
380	380	14 be subject to annual increases on the January 1 occurring
381	381	15 either on or after the attainment of age 67 (age 65, with
382	382	16 respect to service under Article 12 that is subject to this
383	383	17 Section, for a member or participant under Article 12 who
384	384	18 first becomes a member or participant under Article 12 on or
385	385	19 after January 1, 2022 or who makes the election under item (i)
386	386	20 of subsection (d-15); and beginning on July 6, 2017 (the
387	387	21 effective date of Public Act 100-23), age 65 with respect to
388	388	22 service under Article 8 or Article 11 for eligible persons
389	389	23 who: (i) are subject to subsection (c-5) of this Section; or
390	390	24 (ii) made the election under item (i) of subsection (d-10) of
391	391	25 this Section) or the first anniversary of the annuity start
392	392	26 date, whichever is later. Each annual increase shall be
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403	403	1 calculated at 3% or one-half the annual unadjusted percentage
404	404	2 increase (but not less than zero) in the consumer price
405	405	3 index-u for the 12 months ending with the September preceding
406	406	4 each November 1, whichever is less, of the originally granted
407	407	5 retirement annuity. If the annual unadjusted percentage change
408	408	6 in the consumer price index-u for the 12 months ending with the
409	409	7 September preceding each November 1 is zero or there is a
410	410	8 decrease, then the annuity shall not be increased.
411	411	9 For the purposes of Section 1-103.1 of this Code, the
412	412	10 changes made to this Section by Public Act 102-263 are
413	413	11 applicable without regard to whether the employee was in
414	414	12 active service on or after August 6, 2021 (the effective date
415	415	13 of Public Act 102-263).
416	416	14 For the purposes of Section 1-103.1 of this Code, the
417	417	15 changes made to this Section by Public Act 100-23 are
418	418	16 applicable without regard to whether the employee was in
419	419	17 active service on or after July 6, 2017 (the effective date of
420	420	18 Public Act 100-23).
421	421	19 (f) The initial survivor's or widow's annuity of an
422	422	20 otherwise eligible survivor or widow of a retired member or
423	423	21 participant who first became a member or participant on or
424	424	22 after January 1, 2011 shall be in the amount of 66 2/3% of the
425	425	23 retired member's or participant's retirement annuity at the
426	426	24 date of death. In the case of the death of a member or
427	427	25 participant who has not retired and who first became a member
428	428	26 or participant on or after January 1, 2011, eligibility for a
429	429
430	430
431	431
432	432
433	433
434	434	SB1934 - 11 - LRB104 10087 RPS 20159 b
435	435
436	436
437	437	SB1934- 12 -LRB104 10087 RPS 20159 b SB1934 - 12 - LRB104 10087 RPS 20159 b
438	438	SB1934 - 12 - LRB104 10087 RPS 20159 b
439	439	1 survivor's or widow's annuity shall be determined by the
440	440	2 applicable Article of this Code. The initial survivor's or
441	441	3 widow's benefit shall be 66 2/3% of the earned annuity without
442	442	4 a reduction due to age. A child's annuity of an otherwise
443	443	5 eligible child shall be in the amount and using the formula
444	444	6 prescribed under the applicable each Article of this Code, and
445	445	7 such formula shall be used for calculation of the child's
446	446	8 annuity only if applicable. If a benefit is paid to both a
447	447	9 widow or survivor and a child or multiple children, the
448	448	10 widow's portion shall be calculated in the amount of 66 2/3%
449	449	11 and reduced by the pro rata portion of any child or children's
450	450	12 portion as calculated in accordance with the terms of the
451	451	13 Article of this Code that is applicable to the pension fund or
452	452	14 retirement system that is providing the benefit using the
453	453	15 method prescribed in the applicable Article of this Code. Any
454	454	16 survivor's, or widow's or child's annuity shall be increased
455	455	17 (1) on each January 1 occurring on or after the commencement of
456	456	18 the annuity if the deceased member died while receiving a
457	457	19 retirement annuity or (2) in other cases, on each January 1
458	458	20 occurring after the first anniversary of the commencement of
459	459	21 the annuity. Each annual increase shall be calculated at 3% or
460	460	22 one-half the annual unadjusted percentage increase (but not
461	461	23 less than zero) in the consumer price index-u for the 12 months
462	462	24 ending with the September preceding each November 1, whichever
463	463	25 is less, of the originally granted survivor's widow's, or
464	464	26 child's annuity. If the annual unadjusted percentage change in
465	465
466	466
467	467
468	468
469	469
470	470	SB1934 - 12 - LRB104 10087 RPS 20159 b
471	471
472	472
473	473	SB1934- 13 -LRB104 10087 RPS 20159 b SB1934 - 13 - LRB104 10087 RPS 20159 b
474	474	SB1934 - 13 - LRB104 10087 RPS 20159 b
475	475	1 the consumer price index-u for the 12 months ending with the
476	476	2 September preceding each November 1 is zero or there is a
477	477	3 decrease, then the annuity shall not be increased.
478	478	4 (g) The benefits in Section 14-110 apply if the person is a
479	479	5 fire fighter in the fire protection service of a department, a
480	480	6 security employee of the Department of Corrections or the
481	481	7 Department of Juvenile Justice, or a security employee of the
482	482	8 Department of Innovation and Technology, as those terms are
483	483	9 defined in subsection (b) and subsection (c) of Section
484	484	10 14-110. A person who meets the requirements of this Section is
485	485	11 entitled to an annuity calculated under the provisions of
486	486	12 Section 14-110, in lieu of the regular or minimum retirement
487	487	13 annuity, only if the person has withdrawn from service with
488	488	14 not less than 20 years of eligible creditable service and has
489	489	15 attained age 60, regardless of whether the attainment of age
490	490	16 60 occurs while the person is still in service.
491	491	17 (g-5) The benefits in Section 14-110 apply if the person
492	492	18 is a State policeman, investigator for the Secretary of State,
493	493	19 conservation police officer, investigator for the Department
494	494	20 of Revenue or the Illinois Gaming Board, investigator for the
495	495	21 Office of the Attorney General, Commerce Commission police
496	496	22 officer, or arson investigator, as those terms are defined in
497	497	23 subsection (b) and subsection (c) of Section 14-110. A person
498	498	24 who meets the requirements of this Section is entitled to an
499	499	25 annuity calculated under the provisions of Section 14-110, in
500	500	26 lieu of the regular or minimum retirement annuity, only if the
501	501
502	502
503	503
504	504
505	505
506	506	SB1934 - 13 - LRB104 10087 RPS 20159 b
507	507
508	508
509	509	SB1934- 14 -LRB104 10087 RPS 20159 b SB1934 - 14 - LRB104 10087 RPS 20159 b
510	510	SB1934 - 14 - LRB104 10087 RPS 20159 b
511	511	1 person has withdrawn from service with not less than 20 years
512	512	2 of eligible creditable service and has attained age 55,
513	513	3 regardless of whether the attainment of age 55 occurs while
514	514	4 the person is still in service.
515	515	5 (h) If a person who first becomes a member or a participant
516	516	6 of a retirement system or pension fund subject to this Section
517	517	7 on or after January 1, 2011 is receiving a retirement annuity
518	518	8 or retirement pension under that system or fund and becomes a
519	519	9 member or participant under any other system or fund created
520	520	10 by this Code and is employed on a full-time basis, except for
521	521	11 those members or participants exempted from the provisions of
522	522	12 this Section under subsection (a) of this Section, then the
523	523	13 person's retirement annuity or retirement pension under that
524	524	14 system or fund shall be suspended during that employment. Upon
525	525	15 termination of that employment, the person's retirement
526	526	16 annuity or retirement pension payments shall resume and be
527	527	17 recalculated if recalculation is provided for under the
528	528	18 applicable Article of this Code.
529	529	19 If a person who first becomes a member of a retirement
530	530	20 system or pension fund subject to this Section on or after
531	531	21 January 1, 2012 and is receiving a retirement annuity or
532	532	22 retirement pension under that system or fund and accepts on a
533	533	23 contractual basis a position to provide services to a
534	534	24 governmental entity from which he or she has retired, then
535	535	25 that person's annuity or retirement pension earned as an
536	536	26 active employee of the employer shall be suspended during that
537	537
538	538
539	539
540	540
541	541
542	542	SB1934 - 14 - LRB104 10087 RPS 20159 b
543	543
544	544
545	545	SB1934- 15 -LRB104 10087 RPS 20159 b SB1934 - 15 - LRB104 10087 RPS 20159 b
546	546	SB1934 - 15 - LRB104 10087 RPS 20159 b
547	547	1 contractual service. A person receiving an annuity or
548	548	2 retirement pension under this Code shall notify the pension
549	549	3 fund or retirement system from which he or she is receiving an
550	550	4 annuity or retirement pension, as well as his or her
551	551	5 contractual employer, of his or her retirement status before
552	552	6 accepting contractual employment. A person who fails to submit
553	553	7 such notification shall be guilty of a Class A misdemeanor and
554	554	8 required to pay a fine of $1,000. Upon termination of that
555	555	9 contractual employment, the person's retirement annuity or
556	556	10 retirement pension payments shall resume and, if appropriate,
557	557	11 be recalculated under the applicable provisions of this Code.
558	558	12 (i) (Blank).
559	559	13 (j) In the case of a conflict between the provisions of
560	560	14 this Section and any other provision of this Code, the
561	561	15 provisions of this Section shall control.
562	562	16 (Source: P.A. 101-610, eff. 1-1-20; 102-16, eff. 6-17-21;
563	563	17 102-210, eff. 1-1-22; 102-263, eff. 8-6-21; 102-719, eff.
564	564	18 5-6-22; 103-529, eff. 8-11-23.)
565	565	19 (Text of Section from P.A. 102-813)
566	566	20 Sec. 1-160. Provisions applicable to new hires.
567	567	21 (a) The provisions of this Section apply to a person who,
568	568	22 on or after January 1, 2011, first becomes a member or a
569	569	23 participant under any reciprocal retirement system or pension
570	570	24 fund established under this Code, other than a retirement
571	571	25 system or pension fund established under Article 2, 3, 4, 5, 6,
572	572
573	573
574	574
575	575
576	576
577	577	SB1934 - 15 - LRB104 10087 RPS 20159 b
578	578
579	579
580	580	SB1934- 16 -LRB104 10087 RPS 20159 b SB1934 - 16 - LRB104 10087 RPS 20159 b
581	581	SB1934 - 16 - LRB104 10087 RPS 20159 b
582	582	1 7, 15, or 18 of this Code, notwithstanding any other provision
583	583	2 of this Code to the contrary, but do not apply to any
584	584	3 self-managed plan established under this Code or to any
585	585	4 participant of the retirement plan established under Section
586	586	5 22-101; except that this Section applies to a person who
587	587	6 elected to establish alternative credits by electing in
588	588	7 writing after January 1, 2011, but before August 8, 2011,
589	589	8 under Section 7-145.1 of this Code. Notwithstanding anything
590	590	9 to the contrary in this Section, for purposes of this Section,
591	591	10 a person who is a Tier 1 regular employee as defined in Section
592	592	11 7-109.4 of this Code or who participated in a retirement
593	593	12 system under Article 15 prior to January 1, 2011 shall be
594	594	13 deemed a person who first became a member or participant prior
595	595	14 to January 1, 2011 under any retirement system or pension fund
596	596	15 subject to this Section. The changes made to this Section by
597	597	16 Public Act 98-596 are a clarification of existing law and are
598	598	17 intended to be retroactive to January 1, 2011 (the effective
599	599	18 date of Public Act 96-889), notwithstanding the provisions of
600	600	19 Section 1-103.1 of this Code.
601	601	20 This Section does not apply to a person who first becomes a
602	602	21 noncovered employee under Article 14 on or after the
603	603	22 implementation date of the plan created under Section 1-161
604	604	23 for that Article, unless that person elects under subsection
605	605	24 (b) of Section 1-161 to instead receive the benefits provided
606	606	25 under this Section and the applicable provisions of that
607	607	26 Article.
608	608
609	609
610	610
611	611
612	612
613	613	SB1934 - 16 - LRB104 10087 RPS 20159 b
614	614
615	615
616	616	SB1934- 17 -LRB104 10087 RPS 20159 b SB1934 - 17 - LRB104 10087 RPS 20159 b
617	617	SB1934 - 17 - LRB104 10087 RPS 20159 b
618	618	1 This Section does not apply to a person who first becomes a
619	619	2 member or participant under Article 16 on or after the
620	620	3 implementation date of the plan created under Section 1-161
621	621	4 for that Article, unless that person elects under subsection
622	622	5 (b) of Section 1-161 to instead receive the benefits provided
623	623	6 under this Section and the applicable provisions of that
624	624	7 Article.
625	625	8 This Section does not apply to a person who elects under
626	626	9 subsection (c-5) of Section 1-161 to receive the benefits
627	627	10 under Section 1-161.
628	628	11 This Section does not apply to a person who first becomes a
629	629	12 member or participant of an affected pension fund on or after 6
630	630	13 months after the resolution or ordinance date, as defined in
631	631	14 Section 1-162, unless that person elects under subsection (c)
632	632	15 of Section 1-162 to receive the benefits provided under this
633	633	16 Section and the applicable provisions of the Article under
634	634	17 which he or she is a member or participant.
635	635	18 (b) "Final average salary" means, except as otherwise
636	636	19 provided in this subsection, the average monthly (or annual)
637	637	20 salary obtained by dividing the total salary or earnings
638	638	21 calculated under the Article applicable to the member or
639	639	22 participant during the 96 consecutive months (or 8 consecutive
640	640	23 years) of service within the last 120 months (or 10 years) of
641	641	24 service in which the total salary or earnings calculated under
642	642	25 the applicable Article was the highest by the number of months
643	643	26 (or years) of service in that period. For the purposes of a
644	644
645	645
646	646
647	647
648	648
649	649	SB1934 - 17 - LRB104 10087 RPS 20159 b
650	650
651	651
652	652	SB1934- 18 -LRB104 10087 RPS 20159 b SB1934 - 18 - LRB104 10087 RPS 20159 b
653	653	SB1934 - 18 - LRB104 10087 RPS 20159 b
654	654	1 person who first becomes a member or participant of any
655	655	2 retirement system or pension fund to which this Section
656	656	3 applies on or after January 1, 2011, in this Code, "final
657	657	4 average salary" shall be substituted for the following:
658	658	5 (1) (Blank).
659	659	6 (2) In Articles 8, 9, 10, 11, and 12, "highest average
660	660	7 annual salary for any 4 consecutive years within the last
661	661	8 10 years of service immediately preceding the date of
662	662	9 withdrawal".
663	663	10 (3) In Article 13, "average final salary".
664	664	11 (4) In Article 14, "final average compensation".
665	665	12 (5) In Article 17, "average salary".
666	666	13 (6) In Section 22-207, "wages or salary received by
667	667	14 him at the date of retirement or discharge".
668	668	15 A member of the Teachers' Retirement System of the State
669	669	16 of Illinois who retires on or after June 1, 2021 and for whom
670	670	17 the 2020-2021 school year is used in the calculation of the
671	671	18 member's final average salary shall use the higher of the
672	672	19 following for the purpose of determining the member's final
673	673	20 average salary:
674	674	21 (A) the amount otherwise calculated under the first
675	675	22 paragraph of this subsection; or
676	676	23 (B) an amount calculated by the Teachers' Retirement
677	677	24 System of the State of Illinois using the average of the
678	678	25 monthly (or annual) salary obtained by dividing the total
679	679	26 salary or earnings calculated under Article 16 applicable
680	680
681	681
682	682
683	683
684	684
685	685	SB1934 - 18 - LRB104 10087 RPS 20159 b
686	686
687	687
688	688	SB1934- 19 -LRB104 10087 RPS 20159 b SB1934 - 19 - LRB104 10087 RPS 20159 b
689	689	SB1934 - 19 - LRB104 10087 RPS 20159 b
690	690	1 to the member or participant during the 96 months (or 8
691	691	2 years) of service within the last 120 months (or 10 years)
692	692	3 of service in which the total salary or earnings
693	693	4 calculated under the Article was the highest by the number
694	694	5 of months (or years) of service in that period.
695	695	6 (b-5) Beginning on January 1, 2011, for all purposes under
696	696	7 this Code (including without limitation the calculation of
697	697	8 benefits and employee contributions), the annual earnings,
698	698	9 salary, or wages (based on the plan year) of a member or
699	699	10 participant to whom this Section applies shall not exceed
700	700	11 $106,800; however, that amount shall annually thereafter be
701	701	12 increased by the lesser of (i) 3% of that amount, including all
702	702	13 previous adjustments, or (ii) one-half the annual unadjusted
703	703	14 percentage increase (but not less than zero) in the consumer
704	704	15 price index-u for the 12 months ending with the September
705	705	16 preceding each November 1, including all previous adjustments.
706	706	17 For the purposes of this Section, "consumer price index-u"
707	707	18 means the index published by the Bureau of Labor Statistics of
708	708	19 the United States Department of Labor that measures the
709	709	20 average change in prices of goods and services purchased by
710	710	21 all urban consumers, United States city average, all items,
711	711	22 1982-84 = 100. The new amount resulting from each annual
712	712	23 adjustment shall be determined by the Public Pension Division
713	713	24 of the Department of Insurance and made available to the
714	714	25 boards of the retirement systems and pension funds by November
715	715	26 1 of each year.
716	716
717	717
718	718
719	719
720	720
721	721	SB1934 - 19 - LRB104 10087 RPS 20159 b
722	722
723	723
724	724	SB1934- 20 -LRB104 10087 RPS 20159 b SB1934 - 20 - LRB104 10087 RPS 20159 b
725	725	SB1934 - 20 - LRB104 10087 RPS 20159 b
726	726	1 (b-10) Beginning on January 1, 2024, for all purposes
727	727	2 under this Code (including, without limitation, the
728	728	3 calculation of benefits and employee contributions), the
729	729	4 annual earnings, salary, or wages (based on the plan year) of a
730	730	5 member or participant under Article 9 to whom this Section
731	731	6 applies shall include an annual earnings, salary, or wage cap
732	732	7 that tracks the Social Security wage base. Maximum annual
733	733	8 earnings, wages, or salary shall be the annual contribution
734	734	9 and benefit base established for the applicable year by the
735	735	10 Commissioner of the Social Security Administration under the
736	736	11 federal Social Security Act.
737	737	12 However, in no event shall the annual earnings, salary, or
738	738	13 wages for the purposes of this Article and Article 9 exceed any
739	739	14 limitation imposed on annual earnings, salary, or wages under
740	740	15 Section 1-117. Under no circumstances shall the maximum amount
741	741	16 of annual earnings, salary, or wages be greater than the
742	742	17 amount set forth in this subsection (b-10) as a result of
743	743	18 reciprocal service or any provisions regarding reciprocal
744	744	19 services, nor shall the Fund under Article 9 be required to pay
745	745	20 any refund as a result of the application of this maximum
746	746	21 annual earnings, salary, and wage cap.
747	747	22 Nothing in this subsection (b-10) shall cause or otherwise
748	748	23 result in any retroactive adjustment of any employee
749	749	24 contributions. Nothing in this subsection (b-10) shall cause
750	750	25 or otherwise result in any retroactive adjustment of
751	751	26 disability or other payments made between January 1, 2011 and
752	752
753	753
754	754
755	755
756	756
757	757	SB1934 - 20 - LRB104 10087 RPS 20159 b
758	758
759	759
760	760	SB1934- 21 -LRB104 10087 RPS 20159 b SB1934 - 21 - LRB104 10087 RPS 20159 b
761	761	SB1934 - 21 - LRB104 10087 RPS 20159 b
762	762	1 January 1, 2024.
763	763	2 (c) A member or participant is entitled to a retirement
764	764	3 annuity upon written application if he or she has attained age
765	765	4 67 (age 65, with respect to service under Article 12 that is
766	766	5 subject to this Section, for a member or participant under
767	767	6 Article 12 who first becomes a member or participant under
768	768	7 Article 12 on or after January 1, 2022 or who makes the
769	769	8 election under item (i) of subsection (d-15) of this Section)
770	770	9 and has at least 10 years of service credit and is otherwise
771	771	10 eligible under the requirements of the applicable Article.
772	772	11 A member or participant who has attained age 62 (age 60,
773	773	12 with respect to service under Article 12 that is subject to
774	774	13 this Section, for a member or participant under Article 12 who
775	775	14 first becomes a member or participant under Article 12 on or
776	776	15 after January 1, 2022 or who makes the election under item (i)
777	777	16 of subsection (d-15) of this Section) and has at least 10 years
778	778	17 of service credit and is otherwise eligible under the
779	779	18 requirements of the applicable Article may elect to receive
780	780	19 the lower retirement annuity provided in subsection (d) of
781	781	20 this Section.
782	782	21 (c-5) A person who first becomes a member or a participant
783	783	22 subject to this Section on or after July 6, 2017 (the effective
784	784	23 date of Public Act 100-23), notwithstanding any other
785	785	24 provision of this Code to the contrary, is entitled to a
786	786	25 retirement annuity under Article 8 or Article 11 upon written
787	787	26 application if he or she has attained age 65 and has at least
788	788
789	789
790	790
791	791
792	792
793	793	SB1934 - 21 - LRB104 10087 RPS 20159 b
794	794
795	795
796	796	SB1934- 22 -LRB104 10087 RPS 20159 b SB1934 - 22 - LRB104 10087 RPS 20159 b
797	797	SB1934 - 22 - LRB104 10087 RPS 20159 b
798	798	1 10 years of service credit and is otherwise eligible under the
799	799	2 requirements of Article 8 or Article 11 of this Code,
800	800	3 whichever is applicable.
801	801	4 (d) The retirement annuity of a member or participant who
802	802	5 is retiring after attaining age 62 (age 60, with respect to
803	803	6 service under Article 12 that is subject to this Section, for a
804	804	7 member or participant under Article 12 who first becomes a
805	805	8 member or participant under Article 12 on or after January 1,
806	806	9 2022 or who makes the election under item (i) of subsection
807	807	10 (d-15) of this Section) with at least 10 years of service
808	808	11 credit shall be reduced by one-half of 1% for each full month
809	809	12 that the member's age is under age 67 (age 65, with respect to
810	810	13 service under Article 12 that is subject to this Section, for a
811	811	14 member or participant under Article 12 who first becomes a
812	812	15 member or participant under Article 12 on or after January 1,
813	813	16 2022 or who makes the election under item (i) of subsection
814	814	17 (d-15) of this Section).
815	815	18 (d-5) The retirement annuity payable under Article 8 or
816	816	19 Article 11 to an eligible person subject to subsection (c-5)
817	817	20 of this Section who is retiring at age 60 with at least 10
818	818	21 years of service credit shall be reduced by one-half of 1% for
819	819	22 each full month that the member's age is under age 65.
820	820	23 (d-10) Each person who first became a member or
821	821	24 participant under Article 8 or Article 11 of this Code on or
822	822	25 after January 1, 2011 and prior to July 6, 2017 (the effective
823	823	26 date of Public Act 100-23) shall make an irrevocable election
824	824
825	825
826	826
827	827
828	828
829	829	SB1934 - 22 - LRB104 10087 RPS 20159 b
830	830
831	831
832	832	SB1934- 23 -LRB104 10087 RPS 20159 b SB1934 - 23 - LRB104 10087 RPS 20159 b
833	833	SB1934 - 23 - LRB104 10087 RPS 20159 b
834	834	1 either:
835	835	2 (i) to be eligible for the reduced retirement age
836	836	3 provided in subsections (c-5) and (d-5) of this Section,
837	837	4 the eligibility for which is conditioned upon the member
838	838	5 or participant agreeing to the increases in employee
839	839	6 contributions for age and service annuities provided in
840	840	7 subsection (a-5) of Section 8-174 of this Code (for
841	841	8 service under Article 8) or subsection (a-5) of Section
842	842	9 11-170 of this Code (for service under Article 11); or
843	843	10 (ii) to not agree to item (i) of this subsection
844	844	11 (d-10), in which case the member or participant shall
845	845	12 continue to be subject to the retirement age provisions in
846	846	13 subsections (c) and (d) of this Section and the employee
847	847	14 contributions for age and service annuity as provided in
848	848	15 subsection (a) of Section 8-174 of this Code (for service
849	849	16 under Article 8) or subsection (a) of Section 11-170 of
850	850	17 this Code (for service under Article 11).
851	851	18 The election provided for in this subsection shall be made
852	852	19 between October 1, 2017 and November 15, 2017. A person
853	853	20 subject to this subsection who makes the required election
854	854	21 shall remain bound by that election. A person subject to this
855	855	22 subsection who fails for any reason to make the required
856	856	23 election within the time specified in this subsection shall be
857	857	24 deemed to have made the election under item (ii).
858	858	25 (d-15) Each person who first becomes a member or
859	859	26 participant under Article 12 on or after January 1, 2011 and
860	860
861	861
862	862
863	863
864	864
865	865	SB1934 - 23 - LRB104 10087 RPS 20159 b
866	866
867	867
868	868	SB1934- 24 -LRB104 10087 RPS 20159 b SB1934 - 24 - LRB104 10087 RPS 20159 b
869	869	SB1934 - 24 - LRB104 10087 RPS 20159 b
870	870	1 prior to January 1, 2022 shall make an irrevocable election
871	871	2 either:
872	872	3 (i) to be eligible for the reduced retirement age
873	873	4 specified in subsections (c) and (d) of this Section, the
874	874	5 eligibility for which is conditioned upon the member or
875	875	6 participant agreeing to the increase in employee
876	876	7 contributions for service annuities specified in
877	877	8 subsection (b) of Section 12-150; or
878	878	9 (ii) to not agree to item (i) of this subsection
879	879	10 (d-15), in which case the member or participant shall not
880	880	11 be eligible for the reduced retirement age specified in
881	881	12 subsections (c) and (d) of this Section and shall not be
882	882	13 subject to the increase in employee contributions for
883	883	14 service annuities specified in subsection (b) of Section
884	884	15 12-150.
885	885	16 The election provided for in this subsection shall be made
886	886	17 between January 1, 2022 and April 1, 2022. A person subject to
887	887	18 this subsection who makes the required election shall remain
888	888	19 bound by that election. A person subject to this subsection
889	889	20 who fails for any reason to make the required election within
890	890	21 the time specified in this subsection shall be deemed to have
891	891	22 made the election under item (ii).
892	892	23 (e) Any retirement annuity or supplemental annuity shall
893	893	24 be subject to annual increases on the January 1 occurring
894	894	25 either on or after the attainment of age 67 (age 65, with
895	895	26 respect to service under Article 12 that is subject to this
896	896
897	897
898	898
899	899
900	900
901	901	SB1934 - 24 - LRB104 10087 RPS 20159 b
902	902
903	903
904	904	SB1934- 25 -LRB104 10087 RPS 20159 b SB1934 - 25 - LRB104 10087 RPS 20159 b
905	905	SB1934 - 25 - LRB104 10087 RPS 20159 b
906	906	1 Section, for a member or participant under Article 12 who
907	907	2 first becomes a member or participant under Article 12 on or
908	908	3 after January 1, 2022 or who makes the election under item (i)
909	909	4 of subsection (d-15); and beginning on July 6, 2017 (the
910	910	5 effective date of Public Act 100-23), age 65 with respect to
911	911	6 service under Article 8 or Article 11 for eligible persons
912	912	7 who: (i) are subject to subsection (c-5) of this Section; or
913	913	8 (ii) made the election under item (i) of subsection (d-10) of
914	914	9 this Section) or the first anniversary of the annuity start
915	915	10 date, whichever is later. Each annual increase shall be
916	916	11 calculated at 3% or one-half the annual unadjusted percentage
917	917	12 increase (but not less than zero) in the consumer price
918	918	13 index-u for the 12 months ending with the September preceding
919	919	14 each November 1, whichever is less, of the originally granted
920	920	15 retirement annuity. If the annual unadjusted percentage change
921	921	16 in the consumer price index-u for the 12 months ending with the
922	922	17 September preceding each November 1 is zero or there is a
923	923	18 decrease, then the annuity shall not be increased.
924	924	19 For the purposes of Section 1-103.1 of this Code, the
925	925	20 changes made to this Section by Public Act 102-263 are
926	926	21 applicable without regard to whether the employee was in
927	927	22 active service on or after August 6, 2021 (the effective date
928	928	23 of Public Act 102-263).
929	929	24 For the purposes of Section 1-103.1 of this Code, the
930	930	25 changes made to this Section by Public Act 100-23 are
931	931	26 applicable without regard to whether the employee was in
932	932
933	933
934	934
935	935
936	936
937	937	SB1934 - 25 - LRB104 10087 RPS 20159 b
938	938
939	939
940	940	SB1934- 26 -LRB104 10087 RPS 20159 b SB1934 - 26 - LRB104 10087 RPS 20159 b
941	941	SB1934 - 26 - LRB104 10087 RPS 20159 b
942	942	1 active service on or after July 6, 2017 (the effective date of
943	943	2 Public Act 100-23).
944	944	3 (f) The initial survivor's or widow's annuity of an
945	945	4 otherwise eligible survivor or widow of a retired member or
946	946	5 participant who first became a member or participant on or
947	947	6 after January 1, 2011 shall be in the amount of 66 2/3% of the
948	948	7 retired member's or participant's retirement annuity at the
949	949	8 date of death. In the case of the death of a member or
950	950	9 participant who has not retired and who first became a member
951	951	10 or participant on or after January 1, 2011, eligibility for a
952	952	11 survivor's or widow's annuity shall be determined by the
953	953	12 applicable Article of this Code. The initial survivor's or
954	954	13 widow's benefit shall be 66 2/3% of the earned annuity without
955	955	14 a reduction due to age. A child's annuity of an otherwise
956	956	15 eligible child shall be in the amount and using the formula
957	957	16 prescribed under the applicable each Article of this Code, and
958	958	17 such formula shall be used for calculation of the child's
959	959	18 annuity only if applicable. If a benefit is paid to both a
960	960	19 widow or survivor and a child or multiple children, the
961	961	20 widow's portion shall be calculated in the amount of 66 2/3%
962	962	21 and reduced by the pro rata portion of any child or children's
963	963	22 portion as calculated in accordance with the terms of the
964	964	23 Article of this Code that is applicable to the pension fund or
965	965	24 retirement system that is providing the benefit using the
966	966	25 method prescribed in the applicable Article of this Code. Any
967	967	26 survivor's, or widow's or child's annuity shall be increased
968	968
969	969
970	970
971	971
972	972
973	973	SB1934 - 26 - LRB104 10087 RPS 20159 b
974	974
975	975
976	976	SB1934- 27 -LRB104 10087 RPS 20159 b SB1934 - 27 - LRB104 10087 RPS 20159 b
977	977	SB1934 - 27 - LRB104 10087 RPS 20159 b
978	978	1 (1) on each January 1 occurring on or after the commencement of
979	979	2 the annuity if the deceased member died while receiving a
980	980	3 retirement annuity or (2) in other cases, on each January 1
981	981	4 occurring after the first anniversary of the commencement of
982	982	5 the annuity. Each annual increase shall be calculated at 3% or
983	983	6 one-half the annual unadjusted percentage increase (but not
984	984	7 less than zero) in the consumer price index-u for the 12 months
985	985	8 ending with the September preceding each November 1, whichever
986	986	9 is less, of the originally granted survivor's widow's, or
987	987	10 child's annuity. If the annual unadjusted percentage change in
988	988	11 the consumer price index-u for the 12 months ending with the
989	989	12 September preceding each November 1 is zero or there is a
990	990	13 decrease, then the annuity shall not be increased.
991	991	14 (g) The benefits in Section 14-110 apply only if the
992	992	15 person is a State policeman, a fire fighter in the fire
993	993	16 protection service of a department, a conservation police
994	994	17 officer, an investigator for the Secretary of State, an arson
995	995	18 investigator, a Commerce Commission police officer,
996	996	19 investigator for the Department of Revenue or the Illinois
997	997	20 Gaming Board, a security employee of the Department of
998	998	21 Corrections or the Department of Juvenile Justice, or a
999	999	22 security employee of the Department of Innovation and
1000	1000	23 Technology, as those terms are defined in subsection (b) and
1001	1001	24 subsection (c) of Section 14-110. A person who meets the
1002	1002	25 requirements of this Section is entitled to an annuity
1003	1003	26 calculated under the provisions of Section 14-110, in lieu of
1004	1004
1005	1005
1006	1006
1007	1007
1008	1008
1009	1009	SB1934 - 27 - LRB104 10087 RPS 20159 b
1010	1010
1011	1011
1012	1012	SB1934- 28 -LRB104 10087 RPS 20159 b SB1934 - 28 - LRB104 10087 RPS 20159 b
1013	1013	SB1934 - 28 - LRB104 10087 RPS 20159 b
1014	1014	1 the regular or minimum retirement annuity, only if the person
1015	1015	2 has withdrawn from service with not less than 20 years of
1016	1016	3 eligible creditable service and has attained age 60,
1017	1017	4 regardless of whether the attainment of age 60 occurs while
1018	1018	5 the person is still in service.
1019	1019	6 (h) If a person who first becomes a member or a participant
1020	1020	7 of a retirement system or pension fund subject to this Section
1021	1021	8 on or after January 1, 2011 is receiving a retirement annuity
1022	1022	9 or retirement pension under that system or fund and becomes a
1023	1023	10 member or participant under any other system or fund created
1024	1024	11 by this Code and is employed on a full-time basis, except for
1025	1025	12 those members or participants exempted from the provisions of
1026	1026	13 this Section under subsection (a) of this Section, then the
1027	1027	14 person's retirement annuity or retirement pension under that
1028	1028	15 system or fund shall be suspended during that employment. Upon
1029	1029	16 termination of that employment, the person's retirement
1030	1030	17 annuity or retirement pension payments shall resume and be
1031	1031	18 recalculated if recalculation is provided for under the
1032	1032	19 applicable Article of this Code.
1033	1033	20 If a person who first becomes a member of a retirement
1034	1034	21 system or pension fund subject to this Section on or after
1035	1035	22 January 1, 2012 and is receiving a retirement annuity or
1036	1036	23 retirement pension under that system or fund and accepts on a
1037	1037	24 contractual basis a position to provide services to a
1038	1038	25 governmental entity from which he or she has retired, then
1039	1039	26 that person's annuity or retirement pension earned as an
1040	1040
1041	1041
1042	1042
1043	1043
1044	1044
1045	1045	SB1934 - 28 - LRB104 10087 RPS 20159 b
1046	1046
1047	1047
1048	1048	SB1934- 29 -LRB104 10087 RPS 20159 b SB1934 - 29 - LRB104 10087 RPS 20159 b
1049	1049	SB1934 - 29 - LRB104 10087 RPS 20159 b
1050	1050	1 active employee of the employer shall be suspended during that
1051	1051	2 contractual service. A person receiving an annuity or
1052	1052	3 retirement pension under this Code shall notify the pension
1053	1053	4 fund or retirement system from which he or she is receiving an
1054	1054	5 annuity or retirement pension, as well as his or her
1055	1055	6 contractual employer, of his or her retirement status before
1056	1056	7 accepting contractual employment. A person who fails to submit
1057	1057	8 such notification shall be guilty of a Class A misdemeanor and
1058	1058	9 required to pay a fine of $1,000. Upon termination of that
1059	1059	10 contractual employment, the person's retirement annuity or
1060	1060	11 retirement pension payments shall resume and, if appropriate,
1061	1061	12 be recalculated under the applicable provisions of this Code.
1062	1062	13 (i) (Blank).
1063	1063	14 (j) In the case of a conflict between the provisions of
1064	1064	15 this Section and any other provision of this Code, the
1065	1065	16 provisions of this Section shall control.
1066	1066	17 (Source: P.A. 101-610, eff. 1-1-20; 102-16, eff. 6-17-21;
1067	1067	18 102-210, eff. 1-1-22; 102-263, eff. 8-6-21; 102-813, eff.
1068	1068	19 5-13-22; 103-529, eff. 8-11-23.)
1069	1069	20 (Text of Section from P.A. 102-956)
1070	1070	21 Sec. 1-160. Provisions applicable to new hires.
1071	1071	22 (a) The provisions of this Section apply to a person who,
1072	1072	23 on or after January 1, 2011, first becomes a member or a
1073	1073	24 participant under any reciprocal retirement system or pension
1074	1074	25 fund established under this Code, other than a retirement
1075	1075
1076	1076
1077	1077
1078	1078
1079	1079
1080	1080	SB1934 - 29 - LRB104 10087 RPS 20159 b
1081	1081
1082	1082
1083	1083	SB1934- 30 -LRB104 10087 RPS 20159 b SB1934 - 30 - LRB104 10087 RPS 20159 b
1084	1084	SB1934 - 30 - LRB104 10087 RPS 20159 b
1085	1085	1 system or pension fund established under Article 2, 3, 4, 5, 6,
1086	1086	2 7, 15, or 18 of this Code, notwithstanding any other provision
1087	1087	3 of this Code to the contrary, but do not apply to any
1088	1088	4 self-managed plan established under this Code or to any
1089	1089	5 participant of the retirement plan established under Section
1090	1090	6 22-101; except that this Section applies to a person who
1091	1091	7 elected to establish alternative credits by electing in
1092	1092	8 writing after January 1, 2011, but before August 8, 2011,
1093	1093	9 under Section 7-145.1 of this Code. Notwithstanding anything
1094	1094	10 to the contrary in this Section, for purposes of this Section,
1095	1095	11 a person who is a Tier 1 regular employee as defined in Section
1096	1096	12 7-109.4 of this Code or who participated in a retirement
1097	1097	13 system under Article 15 prior to January 1, 2011 shall be
1098	1098	14 deemed a person who first became a member or participant prior
1099	1099	15 to January 1, 2011 under any retirement system or pension fund
1100	1100	16 subject to this Section. The changes made to this Section by
1101	1101	17 Public Act 98-596 are a clarification of existing law and are
1102	1102	18 intended to be retroactive to January 1, 2011 (the effective
1103	1103	19 date of Public Act 96-889), notwithstanding the provisions of
1104	1104	20 Section 1-103.1 of this Code.
1105	1105	21 This Section does not apply to a person who first becomes a
1106	1106	22 noncovered employee under Article 14 on or after the
1107	1107	23 implementation date of the plan created under Section 1-161
1108	1108	24 for that Article, unless that person elects under subsection
1109	1109	25 (b) of Section 1-161 to instead receive the benefits provided
1110	1110	26 under this Section and the applicable provisions of that
1111	1111
1112	1112
1113	1113
1114	1114
1115	1115
1116	1116	SB1934 - 30 - LRB104 10087 RPS 20159 b
1117	1117
1118	1118
1119	1119	SB1934- 31 -LRB104 10087 RPS 20159 b SB1934 - 31 - LRB104 10087 RPS 20159 b
1120	1120	SB1934 - 31 - LRB104 10087 RPS 20159 b
1121	1121	1 Article.
1122	1122	2 This Section does not apply to a person who first becomes a
1123	1123	3 member or participant under Article 16 on or after the
1124	1124	4 implementation date of the plan created under Section 1-161
1125	1125	5 for that Article, unless that person elects under subsection
1126	1126	6 (b) of Section 1-161 to instead receive the benefits provided
1127	1127	7 under this Section and the applicable provisions of that
1128	1128	8 Article.
1129	1129	9 This Section does not apply to a person who elects under
1130	1130	10 subsection (c-5) of Section 1-161 to receive the benefits
1131	1131	11 under Section 1-161.
1132	1132	12 This Section does not apply to a person who first becomes a
1133	1133	13 member or participant of an affected pension fund on or after 6
1134	1134	14 months after the resolution or ordinance date, as defined in
1135	1135	15 Section 1-162, unless that person elects under subsection (c)
1136	1136	16 of Section 1-162 to receive the benefits provided under this
1137	1137	17 Section and the applicable provisions of the Article under
1138	1138	18 which he or she is a member or participant.
1139	1139	19 (b) "Final average salary" means, except as otherwise
1140	1140	20 provided in this subsection, the average monthly (or annual)
1141	1141	21 salary obtained by dividing the total salary or earnings
1142	1142	22 calculated under the Article applicable to the member or
1143	1143	23 participant during the 96 consecutive months (or 8 consecutive
1144	1144	24 years) of service within the last 120 months (or 10 years) of
1145	1145	25 service in which the total salary or earnings calculated under
1146	1146	26 the applicable Article was the highest by the number of months
1147	1147
1148	1148
1149	1149
1150	1150
1151	1151
1152	1152	SB1934 - 31 - LRB104 10087 RPS 20159 b
1153	1153
1154	1154
1155	1155	SB1934- 32 -LRB104 10087 RPS 20159 b SB1934 - 32 - LRB104 10087 RPS 20159 b
1156	1156	SB1934 - 32 - LRB104 10087 RPS 20159 b
1157	1157	1 (or years) of service in that period. For the purposes of a
1158	1158	2 person who first becomes a member or participant of any
1159	1159	3 retirement system or pension fund to which this Section
1160	1160	4 applies on or after January 1, 2011, in this Code, "final
1161	1161	5 average salary" shall be substituted for the following:
1162	1162	6 (1) (Blank).
1163	1163	7 (2) In Articles 8, 9, 10, 11, and 12, "highest average
1164	1164	8 annual salary for any 4 consecutive years within the last
1165	1165	9 10 years of service immediately preceding the date of
1166	1166	10 withdrawal".
1167	1167	11 (3) In Article 13, "average final salary".
1168	1168	12 (4) In Article 14, "final average compensation".
1169	1169	13 (5) In Article 17, "average salary".
1170	1170	14 (6) In Section 22-207, "wages or salary received by
1171	1171	15 him at the date of retirement or discharge".
1172	1172	16 A member of the Teachers' Retirement System of the State
1173	1173	17 of Illinois who retires on or after June 1, 2021 and for whom
1174	1174	18 the 2020-2021 school year is used in the calculation of the
1175	1175	19 member's final average salary shall use the higher of the
1176	1176	20 following for the purpose of determining the member's final
1177	1177	21 average salary:
1178	1178	22 (A) the amount otherwise calculated under the first
1179	1179	23 paragraph of this subsection; or
1180	1180	24 (B) an amount calculated by the Teachers' Retirement
1181	1181	25 System of the State of Illinois using the average of the
1182	1182	26 monthly (or annual) salary obtained by dividing the total
1183	1183
1184	1184
1185	1185
1186	1186
1187	1187
1188	1188	SB1934 - 32 - LRB104 10087 RPS 20159 b
1189	1189
1190	1190
1191	1191	SB1934- 33 -LRB104 10087 RPS 20159 b SB1934 - 33 - LRB104 10087 RPS 20159 b
1192	1192	SB1934 - 33 - LRB104 10087 RPS 20159 b
1193	1193	1 salary or earnings calculated under Article 16 applicable
1194	1194	2 to the member or participant during the 96 months (or 8
1195	1195	3 years) of service within the last 120 months (or 10 years)
1196	1196	4 of service in which the total salary or earnings
1197	1197	5 calculated under the Article was the highest by the number
1198	1198	6 of months (or years) of service in that period.
1199	1199	7 (b-5) Beginning on January 1, 2011, for all purposes under
1200	1200	8 this Code (including without limitation the calculation of
1201	1201	9 benefits and employee contributions), the annual earnings,
1202	1202	10 salary, or wages (based on the plan year) of a member or
1203	1203	11 participant to whom this Section applies shall not exceed
1204	1204	12 $106,800; however, that amount shall annually thereafter be
1205	1205	13 increased by the lesser of (i) 3% of that amount, including all
1206	1206	14 previous adjustments, or (ii) one-half the annual unadjusted
1207	1207	15 percentage increase (but not less than zero) in the consumer
1208	1208	16 price index-u for the 12 months ending with the September
1209	1209	17 preceding each November 1, including all previous adjustments.
1210	1210	18 For the purposes of this Section, "consumer price index-u"
1211	1211	19 means the index published by the Bureau of Labor Statistics of
1212	1212	20 the United States Department of Labor that measures the
1213	1213	21 average change in prices of goods and services purchased by
1214	1214	22 all urban consumers, United States city average, all items,
1215	1215	23 1982-84 = 100. The new amount resulting from each annual
1216	1216	24 adjustment shall be determined by the Public Pension Division
1217	1217	25 of the Department of Insurance and made available to the
1218	1218	26 boards of the retirement systems and pension funds by November
1219	1219
1220	1220
1221	1221
1222	1222
1223	1223
1224	1224	SB1934 - 33 - LRB104 10087 RPS 20159 b
1225	1225
1226	1226
1227	1227	SB1934- 34 -LRB104 10087 RPS 20159 b SB1934 - 34 - LRB104 10087 RPS 20159 b
1228	1228	SB1934 - 34 - LRB104 10087 RPS 20159 b
1229	1229	1 1 of each year.
1230	1230	2 (b-10) Beginning on January 1, 2024, for all purposes
1231	1231	3 under this Code (including, without limitation, the
1232	1232	4 calculation of benefits and employee contributions), the
1233	1233	5 annual earnings, salary, or wages (based on the plan year) of a
1234	1234	6 member or participant under Article 9 to whom this Section
1235	1235	7 applies shall include an annual earnings, salary, or wage cap
1236	1236	8 that tracks the Social Security wage base. Maximum annual
1237	1237	9 earnings, wages, or salary shall be the annual contribution
1238	1238	10 and benefit base established for the applicable year by the
1239	1239	11 Commissioner of the Social Security Administration under the
1240	1240	12 federal Social Security Act.
1241	1241	13 However, in no event shall the annual earnings, salary, or
1242	1242	14 wages for the purposes of this Article and Article 9 exceed any
1243	1243	15 limitation imposed on annual earnings, salary, or wages under
1244	1244	16 Section 1-117. Under no circumstances shall the maximum amount
1245	1245	17 of annual earnings, salary, or wages be greater than the
1246	1246	18 amount set forth in this subsection (b-10) as a result of
1247	1247	19 reciprocal service or any provisions regarding reciprocal
1248	1248	20 services, nor shall the Fund under Article 9 be required to pay
1249	1249	21 any refund as a result of the application of this maximum
1250	1250	22 annual earnings, salary, and wage cap.
1251	1251	23 Nothing in this subsection (b-10) shall cause or otherwise
1252	1252	24 result in any retroactive adjustment of any employee
1253	1253	25 contributions. Nothing in this subsection (b-10) shall cause
1254	1254	26 or otherwise result in any retroactive adjustment of
1255	1255
1256	1256
1257	1257
1258	1258
1259	1259
1260	1260	SB1934 - 34 - LRB104 10087 RPS 20159 b
1261	1261
1262	1262
1263	1263	SB1934- 35 -LRB104 10087 RPS 20159 b SB1934 - 35 - LRB104 10087 RPS 20159 b
1264	1264	SB1934 - 35 - LRB104 10087 RPS 20159 b
1265	1265	1 disability or other payments made between January 1, 2011 and
1266	1266	2 January 1, 2024.
1267	1267	3 (c) A member or participant is entitled to a retirement
1268	1268	4 annuity upon written application if he or she has attained age
1269	1269	5 67 (age 65, with respect to service under Article 12 that is
1270	1270	6 subject to this Section, for a member or participant under
1271	1271	7 Article 12 who first becomes a member or participant under
1272	1272	8 Article 12 on or after January 1, 2022 or who makes the
1273	1273	9 election under item (i) of subsection (d-15) of this Section)
1274	1274	10 and has at least 10 years of service credit and is otherwise
1275	1275	11 eligible under the requirements of the applicable Article.
1276	1276	12 A member or participant who has attained age 62 (age 60,
1277	1277	13 with respect to service under Article 12 that is subject to
1278	1278	14 this Section, for a member or participant under Article 12 who
1279	1279	15 first becomes a member or participant under Article 12 on or
1280	1280	16 after January 1, 2022 or who makes the election under item (i)
1281	1281	17 of subsection (d-15) of this Section) and has at least 10 years
1282	1282	18 of service credit and is otherwise eligible under the
1283	1283	19 requirements of the applicable Article may elect to receive
1284	1284	20 the lower retirement annuity provided in subsection (d) of
1285	1285	21 this Section.
1286	1286	22 (c-5) A person who first becomes a member or a participant
1287	1287	23 subject to this Section on or after July 6, 2017 (the effective
1288	1288	24 date of Public Act 100-23), notwithstanding any other
1289	1289	25 provision of this Code to the contrary, is entitled to a
1290	1290	26 retirement annuity under Article 8 or Article 11 upon written
1291	1291
1292	1292
1293	1293
1294	1294
1295	1295
1296	1296	SB1934 - 35 - LRB104 10087 RPS 20159 b
1297	1297
1298	1298
1299	1299	SB1934- 36 -LRB104 10087 RPS 20159 b SB1934 - 36 - LRB104 10087 RPS 20159 b
1300	1300	SB1934 - 36 - LRB104 10087 RPS 20159 b
1301	1301	1 application if he or she has attained age 65 and has at least
1302	1302	2 10 years of service credit and is otherwise eligible under the
1303	1303	3 requirements of Article 8 or Article 11 of this Code,
1304	1304	4 whichever is applicable.
1305	1305	5 (d) The retirement annuity of a member or participant who
1306	1306	6 is retiring after attaining age 62 (age 60, with respect to
1307	1307	7 service under Article 12 that is subject to this Section, for a
1308	1308	8 member or participant under Article 12 who first becomes a
1309	1309	9 member or participant under Article 12 on or after January 1,
1310	1310	10 2022 or who makes the election under item (i) of subsection
1311	1311	11 (d-15) of this Section) with at least 10 years of service
1312	1312	12 credit shall be reduced by one-half of 1% for each full month
1313	1313	13 that the member's age is under age 67 (age 65, with respect to
1314	1314	14 service under Article 12 that is subject to this Section, for a
1315	1315	15 member or participant under Article 12 who first becomes a
1316	1316	16 member or participant under Article 12 on or after January 1,
1317	1317	17 2022 or who makes the election under item (i) of subsection
1318	1318	18 (d-15) of this Section).
1319	1319	19 (d-5) The retirement annuity payable under Article 8 or
1320	1320	20 Article 11 to an eligible person subject to subsection (c-5)
1321	1321	21 of this Section who is retiring at age 60 with at least 10
1322	1322	22 years of service credit shall be reduced by one-half of 1% for
1323	1323	23 each full month that the member's age is under age 65.
1324	1324	24 (d-10) Each person who first became a member or
1325	1325	25 participant under Article 8 or Article 11 of this Code on or
1326	1326	26 after January 1, 2011 and prior to July 6, 2017 (the effective
1327	1327
1328	1328
1329	1329
1330	1330
1331	1331
1332	1332	SB1934 - 36 - LRB104 10087 RPS 20159 b
1333	1333
1334	1334
1335	1335	SB1934- 37 -LRB104 10087 RPS 20159 b SB1934 - 37 - LRB104 10087 RPS 20159 b
1336	1336	SB1934 - 37 - LRB104 10087 RPS 20159 b
1337	1337	1 date of Public Act 100-23) shall make an irrevocable election
1338	1338	2 either:
1339	1339	3 (i) to be eligible for the reduced retirement age
1340	1340	4 provided in subsections (c-5) and (d-5) of this Section,
1341	1341	5 the eligibility for which is conditioned upon the member
1342	1342	6 or participant agreeing to the increases in employee
1343	1343	7 contributions for age and service annuities provided in
1344	1344	8 subsection (a-5) of Section 8-174 of this Code (for
1345	1345	9 service under Article 8) or subsection (a-5) of Section
1346	1346	10 11-170 of this Code (for service under Article 11); or
1347	1347	11 (ii) to not agree to item (i) of this subsection
1348	1348	12 (d-10), in which case the member or participant shall
1349	1349	13 continue to be subject to the retirement age provisions in
1350	1350	14 subsections (c) and (d) of this Section and the employee
1351	1351	15 contributions for age and service annuity as provided in
1352	1352	16 subsection (a) of Section 8-174 of this Code (for service
1353	1353	17 under Article 8) or subsection (a) of Section 11-170 of
1354	1354	18 this Code (for service under Article 11).
1355	1355	19 The election provided for in this subsection shall be made
1356	1356	20 between October 1, 2017 and November 15, 2017. A person
1357	1357	21 subject to this subsection who makes the required election
1358	1358	22 shall remain bound by that election. A person subject to this
1359	1359	23 subsection who fails for any reason to make the required
1360	1360	24 election within the time specified in this subsection shall be
1361	1361	25 deemed to have made the election under item (ii).
1362	1362	26 (d-15) Each person who first becomes a member or
1363	1363
1364	1364
1365	1365
1366	1366
1367	1367
1368	1368	SB1934 - 37 - LRB104 10087 RPS 20159 b
1369	1369
1370	1370
1371	1371	SB1934- 38 -LRB104 10087 RPS 20159 b SB1934 - 38 - LRB104 10087 RPS 20159 b
1372	1372	SB1934 - 38 - LRB104 10087 RPS 20159 b
1373	1373	1 participant under Article 12 on or after January 1, 2011 and
1374	1374	2 prior to January 1, 2022 shall make an irrevocable election
1375	1375	3 either:
1376	1376	4 (i) to be eligible for the reduced retirement age
1377	1377	5 specified in subsections (c) and (d) of this Section, the
1378	1378	6 eligibility for which is conditioned upon the member or
1379	1379	7 participant agreeing to the increase in employee
1380	1380	8 contributions for service annuities specified in
1381	1381	9 subsection (b) of Section 12-150; or
1382	1382	10 (ii) to not agree to item (i) of this subsection
1383	1383	11 (d-15), in which case the member or participant shall not
1384	1384	12 be eligible for the reduced retirement age specified in
1385	1385	13 subsections (c) and (d) of this Section and shall not be
1386	1386	14 subject to the increase in employee contributions for
1387	1387	15 service annuities specified in subsection (b) of Section
1388	1388	16 12-150.
1389	1389	17 The election provided for in this subsection shall be made
1390	1390	18 between January 1, 2022 and April 1, 2022. A person subject to
1391	1391	19 this subsection who makes the required election shall remain
1392	1392	20 bound by that election. A person subject to this subsection
1393	1393	21 who fails for any reason to make the required election within
1394	1394	22 the time specified in this subsection shall be deemed to have
1395	1395	23 made the election under item (ii).
1396	1396	24 (e) Any retirement annuity or supplemental annuity shall
1397	1397	25 be subject to annual increases on the January 1 occurring
1398	1398	26 either on or after the attainment of age 67 (age 65, with
1399	1399
1400	1400
1401	1401
1402	1402
1403	1403
1404	1404	SB1934 - 38 - LRB104 10087 RPS 20159 b
1405	1405
1406	1406
1407	1407	SB1934- 39 -LRB104 10087 RPS 20159 b SB1934 - 39 - LRB104 10087 RPS 20159 b
1408	1408	SB1934 - 39 - LRB104 10087 RPS 20159 b
1409	1409	1 respect to service under Article 12 that is subject to this
1410	1410	2 Section, for a member or participant under Article 12 who
1411	1411	3 first becomes a member or participant under Article 12 on or
1412	1412	4 after January 1, 2022 or who makes the election under item (i)
1413	1413	5 of subsection (d-15); and beginning on July 6, 2017 (the
1414	1414	6 effective date of Public Act 100-23), age 65 with respect to
1415	1415	7 service under Article 8 or Article 11 for eligible persons
1416	1416	8 who: (i) are subject to subsection (c-5) of this Section; or
1417	1417	9 (ii) made the election under item (i) of subsection (d-10) of
1418	1418	10 this Section) or the first anniversary of the annuity start
1419	1419	11 date, whichever is later. Each annual increase shall be
1420	1420	12 calculated at 3% or one-half the annual unadjusted percentage
1421	1421	13 increase (but not less than zero) in the consumer price
1422	1422	14 index-u for the 12 months ending with the September preceding
1423	1423	15 each November 1, whichever is less, of the originally granted
1424	1424	16 retirement annuity. If the annual unadjusted percentage change
1425	1425	17 in the consumer price index-u for the 12 months ending with the
1426	1426	18 September preceding each November 1 is zero or there is a
1427	1427	19 decrease, then the annuity shall not be increased.
1428	1428	20 For the purposes of Section 1-103.1 of this Code, the
1429	1429	21 changes made to this Section by Public Act 102-263 are
1430	1430	22 applicable without regard to whether the employee was in
1431	1431	23 active service on or after August 6, 2021 (the effective date
1432	1432	24 of Public Act 102-263).
1433	1433	25 For the purposes of Section 1-103.1 of this Code, the
1434	1434	26 changes made to this Section by Public Act 100-23 are
1435	1435
1436	1436
1437	1437
1438	1438
1439	1439
1440	1440	SB1934 - 39 - LRB104 10087 RPS 20159 b
1441	1441
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1443	1443	SB1934- 40 -LRB104 10087 RPS 20159 b SB1934 - 40 - LRB104 10087 RPS 20159 b
1444	1444	SB1934 - 40 - LRB104 10087 RPS 20159 b
1445	1445	1 applicable without regard to whether the employee was in
1446	1446	2 active service on or after July 6, 2017 (the effective date of
1447	1447	3 Public Act 100-23).
1448	1448	4 (f) The initial survivor's or widow's annuity of an
1449	1449	5 otherwise eligible survivor or widow of a retired member or
1450	1450	6 participant who first became a member or participant on or
1451	1451	7 after January 1, 2011 shall be in the amount of 66 2/3% of the
1452	1452	8 retired member's or participant's retirement annuity at the
1453	1453	9 date of death. In the case of the death of a member or
1454	1454	10 participant who has not retired and who first became a member
1455	1455	11 or participant on or after January 1, 2011, eligibility for a
1456	1456	12 survivor's or widow's annuity shall be determined by the
1457	1457	13 applicable Article of this Code. The initial survivor's or
1458	1458	14 widow's benefit shall be 66 2/3% of the earned annuity without
1459	1459	15 a reduction due to age. A child's annuity of an otherwise
1460	1460	16 eligible child shall be in the amount and using the formula
1461	1461	17 prescribed under the applicable each Article of this Code, and
1462	1462	18 such formula shall be used for calculation of the child's
1463	1463	19 annuity only if applicable. If a benefit is paid to both a
1464	1464	20 widow or survivor and a child or multiple children, the
1465	1465	21 widow's portion shall be calculated in the amount of 66 2/3%
1466	1466	22 and reduced by the pro rata portion of any child or children's
1467	1467	23 portion as calculated in accordance with the terms of the
1468	1468	24 Article of this Code that is applicable to the pension fund or
1469	1469	25 retirement system that is providing the benefit using the
1470	1470	26 method prescribed in the applicable Article of this Code. Any
1471	1471
1472	1472
1473	1473
1474	1474
1475	1475
1476	1476	SB1934 - 40 - LRB104 10087 RPS 20159 b
1477	1477
1478	1478
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1480	1480	SB1934 - 41 - LRB104 10087 RPS 20159 b
1481	1481	1 survivor's, or widow's or child's annuity shall be increased
1482	1482	2 (1) on each January 1 occurring on or after the commencement of
1483	1483	3 the annuity if the deceased member died while receiving a
1484	1484	4 retirement annuity or (2) in other cases, on each January 1
1485	1485	5 occurring after the first anniversary of the commencement of
1486	1486	6 the annuity. Each annual increase shall be calculated at 3% or
1487	1487	7 one-half the annual unadjusted percentage increase (but not
1488	1488	8 less than zero) in the consumer price index-u for the 12 months
1489	1489	9 ending with the September preceding each November 1, whichever
1490	1490	10 is less, of the originally granted survivor's widow's, or
1491	1491	11 child's annuity. If the annual unadjusted percentage change in
1492	1492	12 the consumer price index-u for the 12 months ending with the
1493	1493	13 September preceding each November 1 is zero or there is a
1494	1494	14 decrease, then the annuity shall not be increased.
1495	1495	15 (g) The benefits in Section 14-110 apply only if the
1496	1496	16 person is a State policeman, a fire fighter in the fire
1497	1497	17 protection service of a department, a conservation police
1498	1498	18 officer, an investigator for the Secretary of State, an
1499	1499	19 investigator for the Office of the Attorney General, an arson
1500	1500	20 investigator, a Commerce Commission police officer,
1501	1501	21 investigator for the Department of Revenue or the Illinois
1502	1502	22 Gaming Board, a security employee of the Department of
1503	1503	23 Corrections or the Department of Juvenile Justice, or a
1504	1504	24 security employee of the Department of Innovation and
1505	1505	25 Technology, as those terms are defined in subsection (b) and
1506	1506	26 subsection (c) of Section 14-110. A person who meets the
1507	1507
1508	1508
1509	1509
1510	1510
1511	1511
1512	1512	SB1934 - 41 - LRB104 10087 RPS 20159 b
1513	1513
1514	1514
1515	1515	SB1934- 42 -LRB104 10087 RPS 20159 b SB1934 - 42 - LRB104 10087 RPS 20159 b
1516	1516	SB1934 - 42 - LRB104 10087 RPS 20159 b
1517	1517	1 requirements of this Section is entitled to an annuity
1518	1518	2 calculated under the provisions of Section 14-110, in lieu of
1519	1519	3 the regular or minimum retirement annuity, only if the person
1520	1520	4 has withdrawn from service with not less than 20 years of
1521	1521	5 eligible creditable service and has attained age 60,
1522	1522	6 regardless of whether the attainment of age 60 occurs while
1523	1523	7 the person is still in service.
1524	1524	8 (h) If a person who first becomes a member or a participant
1525	1525	9 of a retirement system or pension fund subject to this Section
1526	1526	10 on or after January 1, 2011 is receiving a retirement annuity
1527	1527	11 or retirement pension under that system or fund and becomes a
1528	1528	12 member or participant under any other system or fund created
1529	1529	13 by this Code and is employed on a full-time basis, except for
1530	1530	14 those members or participants exempted from the provisions of
1531	1531	15 this Section under subsection (a) of this Section, then the
1532	1532	16 person's retirement annuity or retirement pension under that
1533	1533	17 system or fund shall be suspended during that employment. Upon
1534	1534	18 termination of that employment, the person's retirement
1535	1535	19 annuity or retirement pension payments shall resume and be
1536	1536	20 recalculated if recalculation is provided for under the
1537	1537	21 applicable Article of this Code.
1538	1538	22 If a person who first becomes a member of a retirement
1539	1539	23 system or pension fund subject to this Section on or after
1540	1540	24 January 1, 2012 and is receiving a retirement annuity or
1541	1541	25 retirement pension under that system or fund and accepts on a
1542	1542	26 contractual basis a position to provide services to a
1543	1543
1544	1544
1545	1545
1546	1546
1547	1547
1548	1548	SB1934 - 42 - LRB104 10087 RPS 20159 b
1549	1549
1550	1550
1551	1551	SB1934- 43 -LRB104 10087 RPS 20159 b SB1934 - 43 - LRB104 10087 RPS 20159 b
1552	1552	SB1934 - 43 - LRB104 10087 RPS 20159 b
1553	1553	1 governmental entity from which he or she has retired, then
1554	1554	2 that person's annuity or retirement pension earned as an
1555	1555	3 active employee of the employer shall be suspended during that
1556	1556	4 contractual service. A person receiving an annuity or
1557	1557	5 retirement pension under this Code shall notify the pension
1558	1558	6 fund or retirement system from which he or she is receiving an
1559	1559	7 annuity or retirement pension, as well as his or her
1560	1560	8 contractual employer, of his or her retirement status before
1561	1561	9 accepting contractual employment. A person who fails to submit
1562	1562	10 such notification shall be guilty of a Class A misdemeanor and
1563	1563	11 required to pay a fine of $1,000. Upon termination of that
1564	1564	12 contractual employment, the person's retirement annuity or
1565	1565	13 retirement pension payments shall resume and, if appropriate,
1566	1566	14 be recalculated under the applicable provisions of this Code.
1567	1567	15 (i) (Blank).
1568	1568	16 (j) In the case of a conflict between the provisions of
1569	1569	17 this Section and any other provision of this Code, the
1570	1570	18 provisions of this Section shall control.
1571	1571	19 (Source: P.A. 102-16, eff. 6-17-21; 102-210, eff. 1-1-22;
1572	1572	20 102-263, eff. 8-6-21; 102-956, eff. 5-27-22; 103-529, eff.
1573	1573	21 8-11-23.)
1574	1574	22 Section 90. The State Mandates Act is amended by adding
1575	1575	23 Section 8.49 as follows:
1576	1576	24 (30 ILCS 805/8.49 new)
1577	1577
1578	1578
1579	1579
1580	1580
1581	1581
1582	1582	SB1934 - 43 - LRB104 10087 RPS 20159 b
1583	1583
1584	1584
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1586	1586	SB1934 - 44 - LRB104 10087 RPS 20159 b
1587	1587
1588	1588
1589	1589
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