SB0001CCR001LRB098 05457 EFG 50220 c

1
98TH GENERAL ASSEMBLY
2
FIRST CONFERENCE COMMITTEE REPORT
3
ON SENATE BILL 1
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6    To the President of the Senate and the Speaker of the House
7of Representatives:
8    We, the conference committee appointed to consider the
9differences between the houses in relation to House Amendments
10Nos. 1 and 3 to Senate Bill 1, recommend the following:
11    (1) that the House recede from House Amendments Nos. 1 and
123; and
13    (2) that Senate Bill 1 be amended by replacing everything
14after the enacting clause with the following:
 
15    "Section 1. Legislative statement.
16    At the time of passage of this amendatory Act of the 98th
17General Assembly, Illinois has both atypically large debts and
18structural budgetary imbalances that will, unless addressed by
19the General Assembly, lead to even greater and rapidly growing
20debts and deficits. Already, Illinois has the lowest credit
21rating of any state, and it faces the prospect of future credit
22downgrades that will further increase the high cost of
23borrowing.
24    The State has taken significant action to address these
25fiscal troubles, including, but not limited to, increasing the

 

 

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1income tax and reducing pension benefits for future employees.
2Further, the State has enacted a series of budgets over the
3last several fiscal years that resulted in deep cuts to
4important discretionary programs that are essential to the
5people of Illinois.
6    At the time of passage of this amendatory Act of the 98th
7General Assembly, the State's retirement systems have unfunded
8actuarially accrued liabilities of approximately $100 billion.
9Meanwhile, the State's annual pension contribution has
10substantially increased in recent years, and will continue to
11increase in coming years. The General Assembly recognizes that
12without significant pension reform, the unfunded liability and
13the State's pension contribution will continue to grow, and
14further burden the fiscal stability of both the State and its
15retirement systems.
16    This amendatory Act of the 98th General Assembly is
17intended to address the fiscal issues facing the State and its
18retirement systems in a manner that is feasible, consistent
19with the Illinois Constitution, and advantageous to both the
20taxpayers and employees impacted by these changes. Having
21considered other alternatives that would not involve changes to
22the retirement systems, the General Assembly has determined
23that the fiscal problems facing the State and its retirement
24systems cannot be solved without making some changes to the
25structure of the retirement systems. As a result, this
26amendatory Act requires more fiscal responsibility of the

 

 

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1State, while minimizing the impact on current and retired State
2employees.
3    Going forward, the automatic annual increase in retirement
4annuity will be based on a participant's years of service to
5the State and inflation, which more accurately reflects changes
6in the cost of living. For participants who have yet to receive
7an annuity, a pensionable salary cap will be imposed; however,
8it will only impact future salary increases that exceed a cap.
9Those workers 45 years of age and younger will be required to
10work an additional 4 months for each year under 46, which
11results in a minimal increase in retirement age given that the
12life expectancy for a 45 year old is 87 years of age. Current
13employees will receive a 1% reduction in required employee
14contributions. With these changes, the State can adopt an
15actuarially sound funding formula that will result in the
16pension systems achieving 100% funding no later than 2044. The
17State will also make additional contributions that will
18considerably aid in reducing the unfunded actuarially accrued
19liability.
20    The General Assembly finds that this amendatory Act of the
2198th General Assembly will lead to fiscal stability for the
22State and its pension systems.
 
23    Section 3. The Illinois Public Labor Relations Act is
24amended by changing Sections 4 and 15 and adding Section 7.5 as
25follows:
 

 

 

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1    (5 ILCS 315/4)  (from Ch. 48, par. 1604)
2    Sec. 4. Management Rights. Employers shall not be
3required to bargain over matters of inherent managerial policy,
4which shall include such areas of discretion or policy as the
5functions of the employer, standards of services, its overall
6budget, the organizational structure and selection of new
7employees, examination techniques and direction of employees.
8Employers, however, shall be required to bargain collectively
9with regard to policy matters directly affecting wages, hours
10and terms and conditions of employment as well as the impact
11thereon upon request by employee representatives, except as
12provided in Section 7.5.
13    To preserve the rights of employers and exclusive
14representatives which have established collective bargaining
15relationships or negotiated collective bargaining agreements
16prior to the effective date of this Act, employers shall be
17required to bargain collectively with regard to any matter
18concerning wages, hours or conditions of employment about which
19they have bargained for and agreed to in a collective
20bargaining agreement prior to the effective date of this Act,
21except as provided in Section 7.5.
22    The chief judge of the judicial circuit that employs a
23public employee who is a court reporter, as defined in the
24Court Reporters Act, has the authority to hire, appoint,
25promote, evaluate, discipline, and discharge court reporters
26within that judicial circuit.

 

 

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1    Nothing in this amendatory Act of the 94th General Assembly
2shall be construed to intrude upon the judicial functions of
3any court. This amendatory Act of the 94th General Assembly
4applies only to nonjudicial administrative matters relating to
5the collective bargaining rights of court reporters.
6(Source: P.A. 94-98, eff. 7-1-05.)
 
7    (5 ILCS 315/7.5 new)
8    Sec. 7.5. Duty to bargain regarding pension amendments.
9    (a) Notwithstanding any provision of this Act, employers
10shall not be required to bargain over matters affected by the
11changes, the impact of changes, and the implementation of
12changes made to Article 14, 15, or 16 of the Illinois Pension
13Code, or Article 1 of that Code as it applies to those
14Articles, made by this amendatory Act of the 98th General
15Assembly, or over any other provision of Article 14, 15, or 16
16of the Illinois Pension Code, or of Article 1 of that Code as
17it applies to those Articles, which are prohibited subjects of
18bargaining; nor shall the changes, the impact of changes, or
19the implementation of changes made to Article 14, 15, or 16 of
20the Illinois Pension Code, or to Article 1 of that Code as it
21applies to those Articles, by this amendatory Act of the 98th
22General Assembly or any other provision of Article 14, 15, or
2316 of the Illinois Pension Code, or of Article 1 of that Code
24as it applies to those Articles, be subject to interest
25arbitration or any award issued pursuant to interest

 

 

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1arbitration. The provisions of this Section shall not apply to
2an employment contract or collective bargaining agreement that
3is in effect on the effective date of this amendatory Act of
4the 98th General Assembly. However, any such contract or
5agreement that is subsequently modified, amended, or renewed
6shall be subject to the provisions of this Section. The
7provisions of this Section shall also not apply to the ability
8of an employer and employee representative to bargain
9collectively with regard to the pick up of employee
10contributions pursuant to Section 14-133.1, 15-157.1, or
1116-152.1 of the Illinois Pension Code.
12    (b) Nothing in this Section, however, shall be construed as
13otherwise limiting any of the obligations and requirements
14applicable to each employer under any of the provisions of this
15Act, including, but not limited to, the requirement to bargain
16collectively with regard to policy matters directly affecting
17wages, hours and terms and conditions of employment as well as
18the impact thereon upon request by employee representatives,
19except for the matters deemed prohibited subjects of bargaining
20under subsection (a) of this Section. Nothing in this Section
21shall further be construed as otherwise limiting any of the
22rights of employees or employee representatives under the
23provisions of this Act, except for matters deemed prohibited
24subjects of bargaining under subsection (a) of this Section.
25    (c) In case of any conflict between this Section and any
26other provisions of this Act or any other law, the provisions

 

 

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1of this Section shall control.
 
2    (5 ILCS 315/15)  (from Ch. 48, par. 1615)
3    Sec. 15. Act Takes Precedence.
4    (a) In case of any conflict between the provisions of this
5Act and any other law (other than Section 5 of the State
6Employees Group Insurance Act of 1971 and other than the
7changes made to the Illinois Pension Code by Public Act 96-889
8and other than as provided in Section 7.5 this amendatory Act
9of the 96th General Assembly), executive order or
10administrative regulation relating to wages, hours and
11conditions of employment and employment relations, the
12provisions of this Act or any collective bargaining agreement
13negotiated thereunder shall prevail and control. Nothing in
14this Act shall be construed to replace or diminish the rights
15of employees established by Sections 28 and 28a of the
16Metropolitan Transit Authority Act, Sections 2.15 through 2.19
17of the Regional Transportation Authority Act. The provisions of
18this Act are subject to Section 7.5 of this Act and Section 5
19of the State Employees Group Insurance Act of 1971. Nothing in
20this Act shall be construed to replace the necessity of
21complaints against a sworn peace officer, as defined in Section
222(a) of the Uniform Peace Officer Disciplinary Act, from having
23a complaint supported by a sworn affidavit.
24    (b) Except as provided in subsection (a) above, any
25collective bargaining contract between a public employer and a

 

 

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1labor organization executed pursuant to this Act shall
2supersede any contrary statutes, charters, ordinances, rules
3or regulations relating to wages, hours and conditions of
4employment and employment relations adopted by the public
5employer or its agents. Any collective bargaining agreement
6entered into prior to the effective date of this Act shall
7remain in full force during its duration.
8    (c) It is the public policy of this State, pursuant to
9paragraphs (h) and (i) of Section 6 of Article VII of the
10Illinois Constitution, that the provisions of this Act are the
11exclusive exercise by the State of powers and functions which
12might otherwise be exercised by home rule units. Such powers
13and functions may not be exercised concurrently, either
14directly or indirectly, by any unit of local government,
15including any home rule unit, except as otherwise authorized by
16this Act.
17(Source: P.A. 95-331, eff. 8-21-07; 96-889, eff. 1-1-11.)
 
18    Section 5. The Governor's Office of Management and Budget
19Act is amended by changing Sections 7 and 8 as follows:
 
20    (20 ILCS 3005/7)  (from Ch. 127, par. 417)
21    Sec. 7. All statements and estimates of expenditures
22submitted to the Office in connection with the preparation of a
23State budget, and any other estimates of expenditures,
24supporting requests for appropriations, shall be formulated

 

 

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1according to the various functions and activities for which the
2respective department, office or institution of the State
3government (including the elective officers in the executive
4department and including the University of Illinois and the
5judicial department) is responsible. All such statements and
6estimates of expenditures relating to a particular function or
7activity shall be further formulated or subject to analysis in
8accordance with the following classification of objects:
9    (1) Personal services
10    (2) State contribution for employee group insurance
11    (3) Contractual services
12    (4) Travel
13    (5) Commodities
14    (6) Equipment
15    (7) Permanent improvements
16    (8) Land
17    (9) Electronic Data Processing
18    (10) Telecommunication services
19    (11) Operation of Automotive Equipment
20    (12) Contingencies
21    (13) Reserve
22    (14) Interest
23    (15) Awards and Grants
24    (16) Debt Retirement
25    (17) Non-cost Charges.
26    (18) State retirement contribution for annual normal cost

 

 

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1    (19) State retirement contribution for unfunded accrued
2liability.
3(Source: P.A. 93-25, eff. 6-20-03.)
 
4    (20 ILCS 3005/8)  (from Ch. 127, par. 418)
5    Sec. 8. When used in connection with a State budget or
6expenditure or estimate, items (1) through (16) in the
7classification of objects stated in Section 7 shall have the
8meanings ascribed to those items in Sections 14 through 24.7,
9respectively, of the State Finance Act. "An Act in relation to
10State finance", approved June 10, 1919, as amended.
11    When used in connection with a State budget or expenditure
12or estimate, items (18) and (19) in the classification of
13objects stated in Section 7 shall have the meanings ascribed to
14those items in Sections 24.12 and 24.13, respectively, of the
15State Finance Act.
16(Source: P.A. 82-325.)
 
17    Section 7. The State Finance Act is amended by changing
18Section 13 and by adding Sections 24.12 and 24.13 as follows:
 
19    (30 ILCS 105/13)  (from Ch. 127, par. 149)
20    Sec. 13. The objects and purposes for which
21appropriations are made are classified and standardized by
22items as follows:
23    (1) Personal services;

 

 

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1    (2) State contribution for employee group insurance;
2    (3) Contractual services;
3    (4) Travel;
4    (5) Commodities;
5    (6) Equipment;
6    (7) Permanent improvements;
7    (8) Land;
8    (9) Electronic Data Processing;
9    (10) Operation of automotive equipment;
10    (11) Telecommunications services;
11    (12) Contingencies;
12    (13) Reserve;
13    (14) Interest;
14    (15) Awards and Grants;
15    (16) Debt Retirement;
16    (17) Non-Cost Charges;
17    (18) State retirement contribution for annual normal cost;
18    (19) State retirement contribution for unfunded accrued
19liability;
20    (20) (18) Purchase Contract for Real Estate.
21    When an appropriation is made to an officer, department,
22institution, board, commission or other agency, or to a private
23association or corporation, in one or more of the items above
24specified, such appropriation shall be construed in accordance
25with the definitions and limitations specified in this Act,
26unless the appropriation act otherwise provides.

 

 

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1    An appropriation for a purpose other than one specified and
2defined in this Act may be made only as an additional, separate
3and distinct item, specifically stating the object and purpose
4thereof.
5(Source: P.A. 84-263; 84-264.)
 
6    (30 ILCS 105/24.12 new)
7    Sec. 24.12. "State retirement contribution for annual
8normal cost" defined. The term "State retirement contribution
9for annual normal cost" means the portion of the total required
10State contribution to a retirement system for a fiscal year
11that represents the State's portion of the System's projected
12normal cost for that fiscal year, as determined and certified
13by the board of trustees of the retirement system in
14conformance with the applicable provisions of the Illinois
15Pension Code.
 
16    (30 ILCS 105/24.13 new)
17    Sec. 24.13. "State retirement contribution for unfunded
18accrued liability" defined. The term "State retirement
19contribution for unfunded accrued liability" means the portion
20of the total required State contribution to a retirement system
21for a fiscal year that is not included in the State retirement
22contribution for annual normal cost.
 
23    Section 10. The Budget Stabilization Act is amended by

 

 

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1changing Sections 20 and 25 as follows:
 
2    (30 ILCS 122/20)
3    Sec. 20. Pension Stabilization Fund.
4    (a) The Pension Stabilization Fund is hereby created as a
5special fund in the State treasury. Moneys in the fund shall be
6used for the sole purpose of making payments to the designated
7retirement systems as provided in Section 25.
8    (b) For each fiscal year through State fiscal year 2014,
9when the General Assembly's appropriations and transfers or
10diversions as required by law from general funds do not exceed
1199% of the estimated general funds revenues pursuant to
12subsection (a) of Section 10, the Comptroller shall transfer
13from the General Revenue Fund as provided by this Section a
14total amount equal to 0.5% of the estimated general funds
15revenues to the Pension Stabilization Fund.
16    (c) For each fiscal year through State fiscal year 2014,
17when the General Assembly's appropriations and transfers or
18diversions as required by law from general funds do not exceed
1998% of the estimated general funds revenues pursuant to
20subsection (b) of Section 10, the Comptroller shall transfer
21from the General Revenue Fund as provided by this Section a
22total amount equal to 1.0% of the estimated general funds
23revenues to the Pension Stabilization Fund.
24    (c-5) In addition to any other amounts required to be
25transferred under this Section, in State fiscal year 2016 and

 

 

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1each fiscal year thereafter through State fiscal year 2045, or
2when each of the designated retirement systems, as defined in
3Section 25, has achieved 100% funding, whichever occurs first,
4the State Comptroller shall order transferred and the State
5Treasurer shall transfer from the General Revenue Fund to the
6Pension Stabilization Fund an amount equal to 10% of (1) the
7sum of the amounts certified by the designated retirement
8systems under subsection (a-5) of Section 2-134, subsection
9(a-10) of Section 14-135.08, subsection (a-10)_ of Section
1015-165, and subsection (a-10) of Section 16-158 of this Code
11for that fiscal year minus (2) the sum of (i) the transfer
12required under subsection (c-10) of this Section for that
13fiscal year and (ii) the sum of the required State
14contributions certified by the retirement systems under
15subsection (a) of Section 2-134, subsection (a-5) of Section
1614-135.08, subsection (a-5) of Section 15-165, and subsection
17(a-5) of Section 16-158 of this Code for that fiscal year. The
18transferred amount is intended to represent one-tenth of the
19annual savings to the State resulting from the enactment of
20this amendatory Act of the 98th General Assembly.
21    (c-10) In State fiscal year 2019, the State Comptroller
22shall order transferred and the State Treasurer shall transfer
23$364,000,000 from the General Revenue Fund to the Pension
24Stabilization Fund. In State fiscal year 2020 and each fiscal
25year thereafter until terminated under subsection (c-15), the
26State Comptroller shall order transferred and the State

 

 

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1Treasurer shall transfer $1,000,000,000 from the General
2Revenue Fund to the Pension Stabilization Fund.
3    (c-15) The transfers made beginning in State fiscal year
42020 pursuant to subsection (c-10) of this Section shall
5terminate at the end of State fiscal year 2045 or when each of
6the designated retirement systems, as defined in Section 25,
7has achieved 100% funding, whichever occurs first.
8    (d) The Comptroller shall transfer 1/12 of the total amount
9to be transferred each fiscal year under this Section into the
10Pension Stabilization Fund on the first day of each month of
11that fiscal year or as soon thereafter as possible; except that
12the final transfer of the fiscal year shall be made as soon as
13practical after the August 31 following the end of the fiscal
14year.
15    Until State fiscal year 2015, before Before the final
16transfer for a fiscal year is made, the Comptroller shall
17reconcile the estimated general funds revenues used in
18calculating the other transfers under this Section for that
19fiscal year with the actual general funds revenues for that
20fiscal year. The final transfer for the fiscal year shall be
21adjusted so that the total amount transferred under this
22Section for that fiscal year is equal to the percentage
23specified in subsection (b) or (c) of this Section, whichever
24is applicable, of the actual general funds revenues for that
25fiscal year. The actual general funds revenues for the fiscal
26year shall be calculated in a manner consistent with subsection

 

 

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1(c) of Section 10 of this Act.
2(Source: P.A. 94-839, eff. 6-6-06.)
 
3    (30 ILCS 122/25)
4    Sec. 25. Transfers from the Pension Stabilization Fund.
5    (a) As used in this Section, "designated retirement
6systems" means:
7        (1) the State Employees' Retirement System of
8    Illinois;
9        (2) the Teachers' Retirement System of the State of
10    Illinois;
11        (3) the State Universities Retirement System;
12        (4) the Judges Retirement System of Illinois; and
13        (5) the General Assembly Retirement System.
14    (b) As soon as may be practical after any money is
15deposited into the Pension Stabilization Fund, the State
16Comptroller shall apportion the deposited amount among the
17designated retirement systems and the State Comptroller and
18State Treasurer shall pay the apportioned amounts to the
19designated retirement systems. The amount deposited shall be
20apportioned among the designated retirement systems in the same
21proportion as their respective portions of the total actuarial
22reserve deficiency of the designated retirement systems, as
23most recently determined by the Governor's Office of Management
24and Budget. Amounts received by a designated retirement system
25under this Section shall be used for funding the unfunded

 

 

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1liabilities of the retirement system. Payments under this
2Section are authorized by the continuing appropriation under
3Section 1.7 of the State Pension Funds Continuing Appropriation
4Act.
5    (c) At the request of the State Comptroller, the Governor's
6Office of Management and Budget shall determine the individual
7and total actuarial reserve deficiencies of the designated
8retirement systems. For this purpose, the Governor's Office of
9Management and Budget shall consider the latest available audit
10and actuarial reports of each of the retirement systems and the
11relevant reports and statistics of the Public Pension Division
12of the Department of Insurance Financial and Professional
13Regulation.
14    (d) Payments to the designated retirement systems under
15this Section shall be in addition to, and not in lieu of, any
16State contributions required under Section 2-124, 14-131,
1715-155, 16-158, or 18-131 of the Illinois Pension Code.
18    Payments to the designated retirement systems under this
19Section received after the effective date of this amendatory
20Act of the 98th General Assembly, and any investment earnings
21attributable to such payments, do not reduce and do not
22constitute payment of any portion of the required State
23contribution under Article 2, 14, 15, 16, or 18 of the Illinois
24Pension Code in the current fiscal year. Such amounts shall not
25reduce, and shall not be included in the calculation of, the
26required State contribution under Article 2, 14, 15, 16, or 18

 

 

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1of the Illinois Pension Code in any future fiscal year, until
2the designated retirement system has reached the targeted
3funding ratio as prescribed by law for that retirement system.
4Such payments may be invested in the same manner as other
5assets of the designated retirement system and shall be used in
6the calculation of the system's funding ratio for the purposes
7of this Section and Section 20 of this Act. Payments under this
8Section may be used for any associated administrative costs.
9(Source: P.A. 94-839, eff. 6-6-06.)
 
10    Section 15. The Illinois Pension Code is amended by
11changing Sections 1-103.3, 2-108, 2-108.1, 2-119, 2-119.1,
122-124, 2-125, 2-126, 2-134, 2-162, 7-109, 7-114, 7-116, 7-139,
139-219, 9-220, 14-103.10, 14-104.3, 14-106, 14-107, 14-108,
1414-110, 14-114, 14-115, 14-131, 14-132, 14-133, 14-135.08,
1514-152.1, 15-106, 15-107, 15-111, 15-112, 15-113.4, 15-125,
1615-135, 15-136, 15-155, 15-156, 15-157, 15-165, 15-198,
1716-106, 16-112, 16-121, 16-127, 16-132, 16-133, 16-133.1,
1816-133.2, 16-136.1, 16-152, 16-158, 16-203, 17-116, 17-134,
1920-106, 20-121, 20-123, 20-124, and 20-125 and by adding
20Sections 2-105.1, 2-105.2, 2-126.5, 2-165, 2-166, 14-103.40,
2114-133.5, 14-155, 14-156, 15-157.5, 15-200, 15-201, 16-106.4,
2216-152.5, 16-158.2, 16-205, and 16-206 as follows:
 
23    (40 ILCS 5/1-103.3)
24    Sec. 1-103.3. Application of 1994 amendment; funding

 

 

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1standard.
2    (a) The provisions of Public Act 88-593 this amendatory Act
3of 1994 that change the method of calculating, certifying, and
4paying the required State contributions to the retirement
5systems established under Articles 2, 14, 15, 16, and 18 shall
6first apply to the State contributions required for State
7fiscal year 1996.
8    (b) (Blank) The General Assembly declares that a funding
9ratio (the ratio of a retirement system's total assets to its
10total actuarial liabilities) of 90% is an appropriate goal for
11State-funded retirement systems in Illinois, and it finds that
12a funding ratio of 90% is now the generally-recognized norm
13throughout the nation for public employee retirement systems
14that are considered to be financially secure and funded in an
15appropriate and responsible manner.
16    (c) Every 5 years, beginning in 1999, the Commission on
17Government Forecasting and Accountability, in consultation
18with the affected retirement systems and the Governor's Office
19of Management and Budget (formerly Bureau of the Budget), shall
20consider and determine whether the funding goals 90% funding
21ratio adopted in Articles 2, 14, 15, 16, and 18 of this Code
22continue subsection (b) continues to represent an appropriate
23funding goals goal for those State-funded retirement systems in
24Illinois, and it shall report its findings and recommendations
25on this subject to the Governor and the General Assembly.
26(Source: P.A. 93-1067, eff. 1-15-05.)
 

 

 

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1    (40 ILCS 5/2-105.1 new)
2    Sec. 2-105.1. Tier 1 participant; Tier 2 participant.
3    "Tier 1 participant": A participant who first became a
4participant before January 1, 2011.
5    "Tier 2 participant": A participant who first became a
6participant on or after January 1, 2011.
 
7    (40 ILCS 5/2-105.2 new)
8    Sec. 2-105.2. Tier 1 retiree. "Tier 1 retiree" means a
9former Tier 1 participant who has made the election to retire
10and has terminated service.
 
11    (40 ILCS 5/2-108)  (from Ch. 108 1/2, par. 2-108)
12    Sec. 2-108. Salary. "Salary": (1) For members of the
13General Assembly, the total compensation paid to the member by
14the State for one year of service, including the additional
15amounts, if any, paid to the member as an officer pursuant to
16Section 1 of "An Act in relation to the compensation and
17emoluments of the members of the General Assembly", approved
18December 6, 1907, as now or hereafter amended.
19    (2) For the State executive officers specified in Section
202-105, the total compensation paid to the member for one year
21of service.
22    (3) For members of the System who are participants under
23Section 2-117.1, or who are serving as Clerk or Assistant Clerk
24of the House of Representatives or Secretary or Assistant

 

 

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1Secretary of the Senate, the total compensation paid to the
2member for one year of service, but not to exceed the salary of
3the highest salaried officer of the General Assembly.
4    However, in the event that federal law results in any
5participant receiving imputed income based on the value of
6group term life insurance provided by the State, such imputed
7income shall not be included in salary for the purposes of this
8Article.
9    Notwithstanding any other provision of this Code, the
10annual salary of a Tier 1 participant for the purposes of this
11Code shall not exceed, for periods of service in a term of
12office beginning on or after the effective date of this
13amendatory Act of the 98th General Assembly, the greater of (i)
14the annual limitation determined from time to time under
15subsection (b-5) of Section 1-160 of this Code or (ii) the
16annualized salary of the participant on the last day of that
17participant's last term of office beginning before that
18effective date.
19(Source: P.A. 86-27; 86-273; 86-1028; 86-1488.)
 
20    (40 ILCS 5/2-108.1)  (from Ch. 108 1/2, par. 2-108.1)
21    Sec. 2-108.1. Highest salary for annuity purposes.
22    (a) "Highest salary for annuity purposes" means whichever
23of the following is applicable to the participant:
24    For a participant who first becomes a participant of this
25System before August 10, 2009 (the effective date of Public Act

 

 

SB0001CCR001- 22 -LRB098 05457 EFG 50220 c

196-207):
2        (1) For a participant who is a member of the General
3    Assembly on his or her last day of service: the highest
4    salary that is prescribed by law, on the participant's last
5    day of service, for a member of the General Assembly who is
6    not an officer; plus, if the participant was elected or
7    appointed to serve as an officer of the General Assembly
8    for 2 or more years and has made contributions as required
9    under subsection (d) of Section 2-126, the highest
10    additional amount of compensation prescribed by law, at the
11    time of the participant's service as an officer, for
12    members of the General Assembly who serve in that office.
13        (2) For a participant who holds one of the State
14    executive offices specified in Section 2-105 on his or her
15    last day of service: the highest salary prescribed by law
16    for service in that office on the participant's last day of
17    service.
18        (3) For a participant who is Clerk or Assistant Clerk
19    of the House of Representatives or Secretary or Assistant
20    Secretary of the Senate on his or her last day of service:
21    the salary received for service in that capacity on the
22    last day of service, but not to exceed the highest salary
23    (including additional compensation for service as an
24    officer) that is prescribed by law on the participant's
25    last day of service for the highest paid officer of the
26    General Assembly.

 

 

SB0001CCR001- 23 -LRB098 05457 EFG 50220 c

1        (4) For a participant who is a continuing participant
2    under Section 2-117.1 on his or her last day of service:
3    the salary received for service in that capacity on the
4    last day of service, but not to exceed the highest salary
5    (including additional compensation for service as an
6    officer) that is prescribed by law on the participant's
7    last day of service for the highest paid officer of the
8    General Assembly.
9    For a participant who first becomes a participant of this
10System on or after August 10, 2009 (the effective date of
11Public Act 96-207) and before January 1, 2011 (the effective
12date of Public Act 96-889), the average monthly salary obtained
13by dividing the total salary of the participant during the
14period of: (1) the 48 consecutive months of service within the
15last 120 months of service in which the total compensation was
16the highest, or (2) the total period of service, if less than
1748 months, by the number of months of service in that period.
18    Except as otherwise provided below, for a Tier 2 For a
19participant who first becomes a participant of this System on
20or after January 1, 2011 (the effective date of Public Act
2196-889), the average monthly salary obtained by dividing the
22total salary of the participant during the 96 consecutive
23months of service within the last 120 months of service in
24which the total compensation was the highest by the number of
25months of service in that period; however, for periods of
26service in a term of office beginning on or after January 1,

 

 

SB0001CCR001- 24 -LRB098 05457 EFG 50220 c

12011 and before the effective date of this amendatory Act of
2the 98th General Assembly, the highest salary for annuity
3purposes may not exceed $106,800, except that that amount shall
4annually thereafter be increased by the lesser of (i) 3% of
5that amount, including all previous adjustments, or (ii) the
6annual unadjusted percentage increase (but not less than zero)
7in the consumer price index-u for the 12 months ending with the
8September preceding each November 1. "Consumer price index-u"
9means the index published by the Bureau of Labor Statistics of
10the United States Department of Labor that measures the average
11change in prices of goods and services purchased by all urban
12consumers, United States city average, all items, 1982-84 =
13100. The new amount resulting from each annual adjustment shall
14be determined by the Public Pension Division of the Department
15of Insurance and made available to the Board by November 1 of
16each year until there is no longer any such participant who is
17in service in a term of office that began before the effective
18date of this amendatory Act of the 98th General Assembly.
19    Notwithstanding any other provision of this Section, in
20determining the highest salary for annuity purposes of a Tier 2
21participant who is in service in a term of office beginning on
22or after the effective date of this amendatory Act of the 98th
23General Assembly, the Tier 2 participant's salary for periods
24of service in a term of office beginning on or after that
25effective date shall not exceed the limitation on salary
26determined from time to time under subsection (b-5) of Section

 

 

SB0001CCR001- 25 -LRB098 05457 EFG 50220 c

11-160 of this Code.
2    (b) The earnings limitations of subsection (a) apply to
3earnings under any other participating system under the
4Retirement Systems Reciprocal Act that are considered in
5calculating a proportional annuity under this Article, except
6in the case of a person who first became a member of this
7System before August 22, 1994 and has not, on or after the
8effective date of this amendatory Act of the 97th General
9Assembly, irrevocably elected to have those limitations apply.
10The limitations of subsection (a) shall apply, however, to
11earnings under any other participating system under the
12Retirement Systems Reciprocal Act that are considered in
13calculating the proportional annuity of a person who first
14became a member of this System before August 22, 1994 if, on or
15after the effective date of this amendatory Act of the 97th
16General Assembly, that member irrevocably elects to have those
17limitations apply.
18    (c) In calculating the subsection (a) earnings limitation
19to be applied to earnings under any other participating system
20under the Retirement Systems Reciprocal Act for the purpose of
21calculating a proportional annuity under this Article, the
22participant's last day of service shall be deemed to mean the
23last day of service in any participating system from which the
24person has applied for a proportional annuity under the
25Retirement Systems Reciprocal Act.
26(Source: P.A. 96-207, eff. 8-10-09; 96-889, eff. 1-1-11;

 

 

SB0001CCR001- 26 -LRB098 05457 EFG 50220 c

196-1490, eff. 1-1-11; 97-967, eff. 8-16-12.)
 
2    (40 ILCS 5/2-119)  (from Ch. 108 1/2, par. 2-119)
3    Sec. 2-119. Retirement annuity - conditions for
4eligibility.
5    (a) A participant whose service as a member is terminated,
6regardless of age or cause, is entitled to a retirement annuity
7beginning on the date specified by the participant in a written
8application subject to the following conditions:
9        1. The date the annuity begins does not precede the
10    date of final termination of service, or is not more than
11    30 days before the receipt of the application by the board
12    in the case of annuities based on disability or one year
13    before the receipt of the application in the case of
14    annuities based on attained age;
15        2. The participant meets one of the following
16    eligibility requirements:
17        For a participant who first becomes a participant of
18    this System before January 1, 2011 (the effective date of
19    Public Act 96-889):
20            (A) He or she has attained age 55 and has at least
21        8 years of service credit;
22            (B) He or she has attained age 62 and terminated
23        service after July 1, 1971 with at least 4 years of
24        service credit; or
25            (C) He or she has completed 8 years of service and

 

 

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1        has become permanently disabled and as a consequence,
2        is unable to perform the duties of his or her office.
3        For a participant who first becomes a participant of
4    this System on or after January 1, 2011 (the effective date
5    of Public Act 96-889), he or she has attained age 67 and
6    has at least 8 years of service credit.
7    (a-1) Notwithstanding subsection (a) of this Section, for a
8Tier 1 participant who begins receiving a retirement annuity
9under this Section on or after July 1, 2014, the required
10retirement age under subsection (a) is increased as follows,
11based on the Tier 1 participant's age on June 1, 2014:
12        (1) If he or she is at least age 46 on June 1, 2014,
13    then the required retirement ages under subsection (a)
14    remain unchanged.
15        (2) If he or she is at least age 45 but less than age 46
16    on June 1, 2014, then the required retirement ages under
17    subsection (a) are increased by 4 months.
18        (3) If he or she is at least age 44 but less than age 45
19    on June 1, 2014, then the required retirement ages under
20    subsection (a) are increased by 8 months.
21        (4) If he or she is at least age 43 but less than age 44
22    on June 1, 2014, then the required retirement ages under
23    subsection (a) are increased by 12 months.
24        (5) If he or she is at least age 42 but less than age 43
25    on June 1, 2014, then the required retirement ages under
26    subsection (a) are increased by 16 months.

 

 

SB0001CCR001- 28 -LRB098 05457 EFG 50220 c

1        (6) If he or she is at least age 41 but less than age 42
2    on June 1, 2014, then the required retirement ages under
3    subsection (a) are increased by 20 months.
4        (7) If he or she is at least age 40 but less than age 41
5    on June 1, 2014, then the required retirement ages under
6    subsection (a) are increased by 24 months.
7        (8) If he or she is at least age 39 but less than age 40
8    on June 1, 2014, then the required retirement ages under
9    subsection (a) are increased by 28 months.
10        (9) If he or she is at least age 38 but less than age 39
11    on June 1, 2014, then the required retirement ages under
12    subsection (a) are increased by 32 months.
13        (10) If he or she is at least age 37 but less than age
14    38 on June 1, 2014, then the required retirement ages under
15    subsection (a) are increased by 36 months.
16        (11) If he or she is at least age 36 but less than age
17    37 on June 1, 2014, then the required retirement ages under
18    subsection (a) are increased by 40 months.
19        (12) If he or she is at least age 35 but less than age
20    36 on June 1, 2014, then the required retirement ages under
21    subsection (a) are increased by 44 months.
22        (13) If he or she is at least age 34 but less than age
23    35 on June 1, 2014, then the required retirement ages under
24    subsection (a) are increased by 48 months.
25        (14) If he or she is at least age 33 but less than age
26    34 on June 1, 2014, then the required retirement ages under

 

 

SB0001CCR001- 29 -LRB098 05457 EFG 50220 c

1    subsection (a) are increased by 52 months.
2        (15) If he or she is at least age 32 but less than age
3    33 on June 1, 2014, then the required retirement ages under
4    subsection (a) are increased by 56 months.
5        (16) If he or she is less than age 32 on June 1, 2014,
6    then the required retirement ages under subsection (a) are
7    increased by 60 months.
8    Notwithstanding Section 1-103.1, this subsection (a-1)
9applies without regard to whether or not the Tier 1 participant
10is in active service under this Article on or after the
11effective date of this amendatory Act of the 98th General
12Assembly.
13    (a-5) A participant who first becomes a participant of this
14System on or after January 1, 2011 (the effective date of
15Public Act 96-889) who has attained age 62 and has at least 8
16years of service credit may elect to receive the lower
17retirement annuity provided in paragraph (c) of Section
182-119.01 of this Code.
19    (b) A participant shall be considered permanently disabled
20only if: (1) disability occurs while in service and is of such
21a nature as to prevent him or her from reasonably performing
22the duties of his or her office at the time; and (2) the board
23has received a written certificate by at least 2 licensed
24physicians appointed by the board stating that the member is
25disabled and that the disability is likely to be permanent.
26(Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11.)
 

 

 

SB0001CCR001- 30 -LRB098 05457 EFG 50220 c

1    (40 ILCS 5/2-119.1)  (from Ch. 108 1/2, par. 2-119.1)
2    Sec. 2-119.1. Automatic increase in retirement annuity.
3    (a) Except as otherwise provided in this Section, a A
4participant who retires after June 30, 1967, and who has not
5received an initial increase under this Section before the
6effective date of this amendatory Act of 1991, shall, in
7January or July next following the first anniversary of
8retirement, whichever occurs first, and in the same month of
9each year thereafter, but in no event prior to age 60, have the
10amount of the originally granted retirement annuity increased
11as follows: for each year through 1971, 1 1/2%; for each year
12from 1972 through 1979, 2%; and for 1980 and each year
13thereafter, 3%. Annuitants who have received an initial
14increase under this subsection prior to the effective date of
15this amendatory Act of 1991 shall continue to receive their
16annual increases in the same month as the initial increase.
17    (a-1) Notwithstanding subsection (a), but subject to the
18provisions of subsection (a-2), for a Tier 1 retiree, all
19automatic increases payable under subsection (a) on or after
20the effective date of this amendatory Act of the 98th General
21Assembly shall be calculated as 3% of the lesser of (1) the
22total annuity payable at the time of the increase, including
23previous increases granted, or (2) $1,000 multiplied by the
24number of years of creditable service upon which the annuity is
25based.
26    Beginning January 1, 2016, the $1,000 referred to in item

 

 

SB0001CCR001- 31 -LRB098 05457 EFG 50220 c

1(2) of this subsection (a-1) shall be increased on each January
21 by the annual unadjusted percentage increase (but not less
3than zero) in the consumer price index-u for the 12 months
4ending with the preceding September; these adjustments shall be
5cumulative and compounded. For the purposes of this subsection
6(a-1), "consumer price index-u" means the index published by
7the Bureau of Labor Statistics of the United States Department
8of Labor that measures the average change in prices of goods
9and services purchased by all urban consumers, United States
10city average, all items, 1982-84 = 100. The new dollar amount
11resulting from each annual adjustment shall be determined by
12the Public Pension Division of the Department of Insurance and
13made available to the System by November 1 of each year.
14    This subsection (a-1) is applicable without regard to
15whether the person is in service on or after the effective date
16of this amendatory Act of the 98th General Assembly.
17    (a-2) Notwithstanding subsections (a) and (a-1), for an
18active or inactive Tier 1 participant who has not begun to
19receive a retirement annuity under this Article before July 1,
202014:
21        (1) the second automatic annual increase payable under
22    subsection (a) shall be at the rate of 0% of the total
23    annuity payable at the time of the increase if he or she is
24    at least age 50 on the effective date of this amendatory
25    Act;
26        (2) the second, fourth, and sixth automatic annual

 

 

SB0001CCR001- 32 -LRB098 05457 EFG 50220 c

1    increases payable under subsection (a) shall be at the rate
2    of 0% of the total annuity payable at the time of the
3    increase if he or she is at least age 47 but less than age
4    50 on the effective date of this amendatory Act;
5        (3) the second, fourth, sixth, and eighth automatic
6    annual increases payable under subsection (a) shall be at
7    the rate of 0% of the total annuity payable at the time of
8    the increase if he or she is at least age 44 but less than
9    age 47 on the effective date of this amendatory Act; and
10        (4) the second, fourth, sixth, eighth, and tenth
11    automatic annual increases payable under subsection (a)
12    shall be at the rate of 0% of the total annuity payable at
13    the time of the increase if he or she is less than age 44 on
14    the effective date of this amendatory Act.
15    For the purposes of Section 1-103.1, this subsection (a-2)
16is applicable without regard to whether the person is in
17service on or after the effective date of this amendatory Act
18of the 98th General Assembly.
19    (b) Beginning January 1, 1990, for eligible participants
20who remain in service after attaining 20 years of creditable
21service, the 3% increases provided under subsection (a) shall
22begin to accrue on the January 1 next following the date upon
23which the participant (1) attains age 55, or (2) attains 20
24years of creditable service, whichever occurs later, and shall
25continue to accrue while the participant remains in service;
26such increases shall become payable on January 1 or July 1,

 

 

SB0001CCR001- 33 -LRB098 05457 EFG 50220 c

1whichever occurs first, next following the first anniversary of
2retirement. For any person who has service credit in the System
3for the entire period from January 15, 1969 through December
431, 1992, regardless of the date of termination of service, the
5reference to age 55 in clause (1) of this subsection (b) shall
6be deemed to mean age 50. The increases accruing under this
7subsection (b) after the effective date of this amendatory Act
8of the 98th General Assembly shall accrue at the rate provided
9in subsection (a-1).
10    This subsection (b) does not apply to any person who first
11becomes a member of the System after the effective date of this
12amendatory Act of the 93rd General Assembly.
13    (b-5) Notwithstanding any other provision of this Section
14Article, a participant who first becomes a participant on or
15after January 1, 2011 (the effective date of Public Act 96-889)
16shall, in January or July next following the first anniversary
17of retirement, whichever occurs first, and in the same month of
18each year thereafter, but in no event prior to age 67, have the
19amount of the retirement annuity then being paid increased by
20an amount calculated as a percentage of the originally granted
21retirement annuity, equal to 3% or one-half of the annual
22unadjusted percentage increase (but not less than zero) in the
23Consumer Price Index for All Urban Consumers for the 12 months
24ending with the preceding September, as determined by the
25Public Pension Division of the Department of Insurance and
26reported to the System by November 1 of each year under

 

 

SB0001CCR001- 34 -LRB098 05457 EFG 50220 c

1subsection (a) of Section 2-108.1, whichever is less.
2    The changes made to this subsection (b-5) by this
3amendatory Act of the 98th General Assembly shall apply to
4increases provided under this subsection on or after the
5effective date of this amendatory Act without regard to whether
6service terminated before that effective date.
7    (c) The foregoing provisions relating to automatic
8increases are not applicable to a participant who retires
9before having made contributions (at the rate prescribed in
10Section 2-126) for automatic increases for less than the
11equivalent of one full year. However, in order to be eligible
12for the automatic increases, such a participant may make
13arrangements to pay to the system the amount required to bring
14the total contributions for the automatic increase to the
15equivalent of one year's contributions based upon his or her
16last salary.
17    (d) A participant who terminated service prior to July 1,
181967, with at least 14 years of service is entitled to an
19increase in retirement annuity beginning January, 1976, and to
20additional increases in January of each year thereafter.
21    The initial increase shall be 1 1/2% of the originally
22granted retirement annuity multiplied by the number of full
23years that the annuitant was in receipt of such annuity prior
24to January 1, 1972, plus 2% of the originally granted
25retirement annuity for each year after that date. The
26subsequent annual increases shall be at the rate of 2% of the

 

 

SB0001CCR001- 35 -LRB098 05457 EFG 50220 c

1originally granted retirement annuity for each year through
21979 and at the rate of 3% for 1980 and thereafter. The
3increases provided under this subsection (d) on or after the
4effective date of this amendatory Act of the 98th General
5Assembly shall be at the rate provided in subsection (a-1),
6notwithstanding that service terminated before that effective
7date.
8    (e) Except as may be provided in subsection (b-5),
9beginning Beginning January 1, 1990, all automatic annual
10increases payable under this Section shall be calculated as a
11percentage of the total annuity payable at the time of the
12increase, including previous increases granted under this
13Article.
14(Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11.)
 
15    (40 ILCS 5/2-124)  (from Ch. 108 1/2, par. 2-124)
16    Sec. 2-124. Contributions by State.
17    (a) The State shall make contributions to the System by
18appropriations of amounts which, together with the
19contributions of participants, interest earned on investments,
20and other income will meet the cost of maintaining and
21administering the System on a 100% 90% funded basis in
22accordance with actuarial recommendations by the end of State
23fiscal year 2044.
24    (b) The Board shall determine the amount of State
25contributions required for each fiscal year on the basis of the

 

 

SB0001CCR001- 36 -LRB098 05457 EFG 50220 c

1actuarial tables and other assumptions adopted by the Board and
2the prescribed rate of interest, using the formula in
3subsection (c).
4    (c) For State fiscal years 2015 through 2044, the minimum
5contribution to the System to be made by the State for each
6fiscal year shall be an amount determined by the System to be
7equal to the sum of (1) the State's portion of the projected
8normal cost for that fiscal year, plus (2) an amount sufficient
9to bring the total assets of the System up to 100% of the total
10actuarial liabilities of the System by the end of State fiscal
11year 2044. In making these determinations, the required State
12contribution shall be calculated each year as a level
13percentage of payroll over the years remaining to and including
14fiscal year 2044 and shall be determined under the projected
15unit cost method for fiscal year 2015 and under the entry age
16normal actuarial cost method for fiscal years 2016 through
172044.
18    For State fiscal years 2012 through 2014 2045, the minimum
19contribution to the System to be made by the State for each
20fiscal year shall be an amount determined by the System to be
21sufficient to bring the total assets of the System up to 90% of
22the total actuarial liabilities of the System by the end of
23State fiscal year 2045. In making these determinations, the
24required State contribution shall be calculated each year as a
25level percentage of payroll over the years remaining to and
26including fiscal year 2045 and shall be determined under the

 

 

SB0001CCR001- 37 -LRB098 05457 EFG 50220 c

1projected unit credit actuarial cost method.
2    For State fiscal years 1996 through 2005, the State
3contribution to the System, as a percentage of the applicable
4employee payroll, shall be increased in equal annual increments
5so that by State fiscal year 2011, the State is contributing at
6the rate required under this Section.
7    Notwithstanding any other provision of this Article, the
8total required State contribution for State fiscal year 2006 is
9$4,157,000.
10    Notwithstanding any other provision of this Article, the
11total required State contribution for State fiscal year 2007 is
12$5,220,300.
13    For each of State fiscal years 2008 through 2009, the State
14contribution to the System, as a percentage of the applicable
15employee payroll, shall be increased in equal annual increments
16from the required State contribution for State fiscal year
172007, so that by State fiscal year 2011, the State is
18contributing at the rate otherwise required under this Section.
19    Notwithstanding any other provision of this Article, the
20total required State contribution for State fiscal year 2010 is
21$10,454,000 and shall be made from the proceeds of bonds sold
22in fiscal year 2010 pursuant to Section 7.2 of the General
23Obligation Bond Act, less (i) the pro rata share of bond sale
24expenses determined by the System's share of total bond
25proceeds, (ii) any amounts received from the General Revenue
26Fund in fiscal year 2010, and (iii) any reduction in bond

 

 

SB0001CCR001- 38 -LRB098 05457 EFG 50220 c

1proceeds due to the issuance of discounted bonds, if
2applicable.
3    Notwithstanding any other provision of this Article, the
4total required State contribution for State fiscal year 2011 is
5the amount recertified by the System on or before April 1, 2011
6pursuant to Section 2-134 and shall be made from the proceeds
7of bonds sold in fiscal year 2011 pursuant to Section 7.2 of
8the General Obligation Bond Act, less (i) the pro rata share of
9bond sale expenses determined by the System's share of total
10bond proceeds, (ii) any amounts received from the General
11Revenue Fund in fiscal year 2011, and (iii) any reduction in
12bond proceeds due to the issuance of discounted bonds, if
13applicable.
14    Beginning in State fiscal year 2045, the minimum State
15contribution for each fiscal year shall be the amount needed to
16maintain the total assets of the System at 100% of the total
17actuarial liabilities of the System.
18    Beginning in State fiscal year 2046, the minimum State
19contribution for each fiscal year shall be the amount needed to
20maintain the total assets of the System at 90% of the total
21actuarial liabilities of the System.
22    Amounts received by the System pursuant to Section 25 of
23the Budget Stabilization Act or Section 8.12 of the State
24Finance Act in any fiscal year do not reduce and do not
25constitute payment of any portion of the minimum State
26contribution required under this Article in that fiscal year.

 

 

SB0001CCR001- 39 -LRB098 05457 EFG 50220 c

1Such amounts shall not reduce, and shall not be included in the
2calculation of, the required State contributions under this
3Article in any future year until the System has reached a
4funding ratio of at least 100% 90%. A reference in this Article
5to the "required State contribution" or any substantially
6similar term does not include or apply to any amounts payable
7to the System under Section 25 of the Budget Stabilization Act.
8    Notwithstanding any other provision of this Section, the
9required State contribution for State fiscal year 2005 and for
10fiscal year 2008 and each fiscal year thereafter through State
11fiscal year 2014, as calculated under this Section and
12certified under Section 2-134, shall not exceed an amount equal
13to (i) the amount of the required State contribution that would
14have been calculated under this Section for that fiscal year if
15the System had not received any payments under subsection (d)
16of Section 7.2 of the General Obligation Bond Act, minus (ii)
17the portion of the State's total debt service payments for that
18fiscal year on the bonds issued in fiscal year 2003 for the
19purposes of that Section 7.2, as determined and certified by
20the Comptroller, that is the same as the System's portion of
21the total moneys distributed under subsection (d) of Section
227.2 of the General Obligation Bond Act. In determining this
23maximum for State fiscal years 2008 through 2010, however, the
24amount referred to in item (i) shall be increased, as a
25percentage of the applicable employee payroll, in equal
26increments calculated from the sum of the required State

 

 

SB0001CCR001- 40 -LRB098 05457 EFG 50220 c

1contribution for State fiscal year 2007 plus the applicable
2portion of the State's total debt service payments for fiscal
3year 2007 on the bonds issued in fiscal year 2003 for the
4purposes of Section 7.2 of the General Obligation Bond Act, so
5that, by State fiscal year 2011, the State is contributing at
6the rate otherwise required under this Section.
7    (d) For purposes of determining the required State
8contribution to the System, the value of the System's assets
9shall be equal to the actuarial value of the System's assets,
10which shall be calculated as follows:
11    As of June 30, 2008, the actuarial value of the System's
12assets shall be equal to the market value of the assets as of
13that date. In determining the actuarial value of the System's
14assets for fiscal years after June 30, 2008, any actuarial
15gains or losses from investment return incurred in a fiscal
16year shall be recognized in equal annual amounts over the
175-year period following that fiscal year.
18    (e) For purposes of determining the required State
19contribution to the system for a particular year, the actuarial
20value of assets shall be assumed to earn a rate of return equal
21to the system's actuarially assumed rate of return.
22(Source: P.A. 96-43, eff. 7-15-09; 96-1497, eff. 1-14-11;
2396-1511, eff. 1-27-11; 96-1554, eff. 3-18-11; 97-813, eff.
247-13-12.)
 
25    (40 ILCS 5/2-125)  (from Ch. 108 1/2, par. 2-125)

 

 

SB0001CCR001- 41 -LRB098 05457 EFG 50220 c

1    Sec. 2-125. Obligations of State; funding guarantee.
2    (a) The payment of (1) the required State contributions,
3(2) all benefits granted under this system and (3) all expenses
4of administration and operation are obligations of the State to
5the extent specified in this Article.
6    (b) All income, interest and dividends derived from
7deposits and investments shall be credited to the account of
8the system in the State Treasury and used to pay benefits under
9this Article.
10    (c) Beginning July 1, 2014, the State shall be obligated to
11contribute to the System in each State fiscal year an amount
12not less than the sum of (i) the State's normal cost for the
13year and (ii) the portion of the unfunded accrued liability
14assigned to that year by law. Notwithstanding any other
15provision of law, if the State fails to pay an amount required
16under this subsection, it shall be the obligation of the Board
17to seek payment of the required amount in compliance with the
18provisions of this Section and, if the amount remains unpaid,
19to bring a mandamus action in the Supreme Court of Illinois to
20compel the State to make the required payment.
21    If the System submits a voucher for contributions required
22under Section 2-124 and the State fails to pay that voucher
23within 90 days of its receipt, the Board shall submit a written
24request to the Comptroller seeking payment. A copy of the
25request shall be filed with the Secretary of State, and the
26Secretary of State shall provide a copy to the Governor and

 

 

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1General Assembly. No earlier than the 16th day after the System
2files the request with the Comptroller and Secretary of State,
3if the amount remains unpaid the Board shall commence a
4mandamus action in the Supreme Court of Illinois to compel the
5Comptroller to satisfy the voucher.
6    This subsection (c) constitutes an express waiver of the
7State's sovereign immunity solely to the extent that it permits
8the Board to commence a mandamus action in the Supreme Court of
9Illinois to compel the Comptroller to pay a voucher for the
10contributions required under Section 2-124.
11    (d) Beginning in State fiscal year 2016, the State shall be
12obligated to make the transfers set forth in subsections (c-5)
13and (c-10) of Section 20 of the Budget Stabilization Act and to
14pay to the System its proportionate share of the transferred
15amounts in accordance with Section 25 of the Budget
16Stabilization Act. Notwithstanding any other provision of law,
17if the State fails to transfer an amount required under this
18subsection or to pay to the System its proportionate share of
19the transferred amount in accordance with Section 25 of the
20Budget Stabilization Act, it shall be the obligation of the
21Board to seek transfer or payment of the required amount in
22compliance with the provisions of this Section and, if the
23required amount remains untransferred or the required payment
24remains unpaid, to bring a mandamus action in the Supreme Court
25of Illinois to compel the State to make the required transfer
26or payment or both, as the case may be.

 

 

SB0001CCR001- 43 -LRB098 05457 EFG 50220 c

1    If the State fails to make a transfer required under
2subsection (c-5) or (c-10) of Section 20 of the Budget
3Stabilization Act or a payment to the System required under
4Section 25 of that Act, the Board shall submit a written
5request to the Comptroller seeking payment. A copy of the
6request shall be filed with the Secretary of State, and the
7Secretary of State shall provide a copy to the Governor and
8General Assembly. No earlier than the 16th day after the System
9files the request with the Comptroller and Secretary of State,
10if the required amount remains untransferred or the required
11payment remains unpaid, the Board shall commence a mandamus
12action in the Supreme Court of Illinois to compel the
13Comptroller to make the required transfer or payment or both,
14as the case may be.
15    This subsection (d) constitutes an express waiver of the
16State's sovereign immunity solely to the extent that it permits
17the Board to commence a mandamus action in the Supreme Court of
18Illinois to compel the Comptroller to make a transfer required
19under subsection (c-5) or (c-10) of Section 20 of the Budget
20Stabilization Act and to pay to the System its proportionate
21share of the transferred amount in accordance with Section 25
22of the Budget Stabilization Act.
23    The obligations created by this subsection (d) expire when
24all of the requirements of subsections (c-5) and (c-10) of
25Section 20 of the Budget Stabilization Act and Section 25 of
26the Budget Stabilization Act have been met.

 

 

SB0001CCR001- 44 -LRB098 05457 EFG 50220 c

1    (e) Any payments and transfers required to be made by the
2State pursuant to subsection (c) or (d) are expressly
3subordinate to the payment of the principal, interest, and
4premium, if any, on any bonded debt obligation of the State or
5any other State-created entity, either currently outstanding
6or to be issued, for which the source of repayment or security
7thereon is derived directly or indirectly from tax revenues
8collected by the State or any other State-created entity.
9Payments on such bonded obligations include any statutory fund
10transfers or other prefunding mechanisms or formulas set forth,
11now or hereafter, in State law or bond indentures, into debt
12service funds or accounts of the State related to such bond
13obligations, consistent with the payment schedules associated
14with such obligations.
15(Source: P.A. 83-1440.)
 
16    (40 ILCS 5/2-126)  (from Ch. 108 1/2, par. 2-126)
17    Sec. 2-126. Contributions by participants.
18    (a) Each participant shall contribute toward the cost of
19his or her retirement annuity a percentage of each payment of
20salary received by him or her for service as a member as
21follows: for service between October 31, 1947 and January 1,
221959, 5%; for service between January 1, 1959 and June 30,
231969, 6%; for service between July 1, 1969 and January 10,
241973, 6 1/2%; for service after January 10, 1973, 7%; for
25service after December 31, 1981, 8 1/2%.

 

 

SB0001CCR001- 45 -LRB098 05457 EFG 50220 c

1    (b) Beginning August 2, 1949, each male participant, and
2from July 1, 1971, each female participant shall contribute
3towards the cost of the survivor's annuity 2% of salary.
4    A participant who has no eligible survivor's annuity
5beneficiary may elect to cease making contributions for
6survivor's annuity under this subsection. A survivor's annuity
7shall not be payable upon the death of a person who has made
8this election, unless prior to that death the election has been
9revoked and the amount of the contributions that would have
10been paid under this subsection in the absence of the election
11is paid to the System, together with interest at the rate of 4%
12per year from the date the contributions would have been made
13to the date of payment.
14    (c) Beginning July 1, 1967 and, in the case of Tier 1
15participants, ending on June 30, 2014, each participant shall
16contribute 1% of salary towards the cost of automatic increase
17in annuity provided in Section 2-119.1. These contributions
18shall be made concurrently with contributions for retirement
19annuity purposes.
20    (d) In addition, each participant serving as an officer of
21the General Assembly shall contribute, for the same purposes
22and at the same rates as are required of a regular participant,
23on each additional payment received as an officer. If the
24participant serves as an officer for at least 2 but less than 4
25years, he or she shall contribute an amount equal to the amount
26that would have been contributed had the participant served as

 

 

SB0001CCR001- 46 -LRB098 05457 EFG 50220 c

1an officer for 4 years. Persons who serve as officers in the
287th General Assembly but cannot receive the additional payment
3to officers because of the ban on increases in salary during
4their terms may nonetheless make contributions based on those
5additional payments for the purpose of having the additional
6payments included in their highest salary for annuity purposes;
7however, persons electing to make these additional
8contributions must also pay an amount representing the
9corresponding employer contributions, as calculated by the
10System.
11    (e) Notwithstanding any other provision of this Article,
12the required contribution of a participant who first becomes a
13participant on or after January 1, 2011 shall not exceed the
14contribution that would be due under this Article if that
15participant's highest salary for annuity purposes were
16$106,800, plus any increases in that amount under Section
172-108.1.
18(Source: P.A. 96-1490, eff. 1-1-11.)
 
19    (40 ILCS 5/2-126.5 new)
20    Sec. 2-126.5. Use of contributions for health care
21subsidies. The System shall not use any contribution received
22by the System under this Article to provide a subsidy for the
23cost of participation in a retiree health care program.
 
24    (40 ILCS 5/2-134)   (from Ch. 108 1/2, par. 2-134)

 

 

SB0001CCR001- 47 -LRB098 05457 EFG 50220 c

1    Sec. 2-134. To certify required State contributions and
2submit vouchers.
3    (a) The Board shall certify to the Governor on or before
4December 15 of each year until December 15, 2011 the amount of
5the required State contribution to the System for the next
6fiscal year and shall specifically identify the System's
7projected State normal cost for that fiscal year. The
8certification shall include a copy of the actuarial
9recommendations upon which it is based and shall specifically
10identify the System's projected State normal cost for that
11fiscal year.
12    On or before November 1 of each year, beginning November 1,
132012, the Board shall submit to the State Actuary, the
14Governor, and the General Assembly a proposed certification of
15the amount of the required State contribution to the System for
16the next fiscal year, along with all of the actuarial
17assumptions, calculations, and data upon which that proposed
18certification is based. On or before January 1 of each year
19beginning January 1, 2013, the State Actuary shall issue a
20preliminary report concerning the proposed certification and
21identifying, if necessary, recommended changes in actuarial
22assumptions that the Board must consider before finalizing its
23certification of the required State contributions. On or before
24January 15, 2013 and every January 15 thereafter, the Board
25shall certify to the Governor and the General Assembly the
26amount of the required State contribution for the next fiscal

 

 

SB0001CCR001- 48 -LRB098 05457 EFG 50220 c

1year. The Board's certification must note any deviations from
2the State Actuary's recommended changes, the reason or reasons
3for not following the State Actuary's recommended changes, and
4the fiscal impact of not following the State Actuary's
5recommended changes on the required State contribution.
6    On or before May 1, 2004, the Board shall recalculate and
7recertify to the Governor the amount of the required State
8contribution to the System for State fiscal year 2005, taking
9into account the amounts appropriated to and received by the
10System under subsection (d) of Section 7.2 of the General
11Obligation Bond Act.
12    On or before July 1, 2005, the Board shall recalculate and
13recertify to the Governor the amount of the required State
14contribution to the System for State fiscal year 2006, taking
15into account the changes in required State contributions made
16by this amendatory Act of the 94th General Assembly.
17    On or before April 1, 2011, the Board shall recalculate and
18recertify to the Governor the amount of the required State
19contribution to the System for State fiscal year 2011, applying
20the changes made by Public Act 96-889 to the System's assets
21and liabilities as of June 30, 2009 as though Public Act 96-889
22was approved on that date.
23    (a-5) For purposes of Section (c-5) of Section 20 of the
24Budget Stabilization Act, on or before November 1 of each year
25beginning November 1, 2014, the Board shall determine the
26amount of the State contribution to the System that would have

 

 

SB0001CCR001- 49 -LRB098 05457 EFG 50220 c

1been required for the next fiscal year if this amendatory Act
2of the 98th General Assembly had not taken effect, using the
3best and most recent available data but based on the law in
4effect on May 31, 2014. The Board shall submit to the State
5Actuary, the Governor, and the General Assembly a proposed
6certification, along with the relevant law, actuarial
7assumptions, calculations, and data upon which that
8certification is based. On or before January 1, 2015 and every
9January 1 thereafter, the State Actuary shall issue a
10preliminary report concerning the proposed certification and
11identifying, if necessary, recommended changes in actuarial
12assumptions that the Board must consider before finalizing its
13certification. On or before January 15, 2015 and every January
141 thereafter, the Board shall certify to the Governor and the
15General Assembly the amount of the State contribution to the
16System that would have been required for the next fiscal year
17if this amendatory Act of the 98th General Assembly had not
18taken effect, using the best and most recent available data but
19based on the law in effect on May 31, 2014. The Board's
20certification must note any deviations from the State Actuary's
21recommended changes, the reason or reasons for not following
22the State Actuary's recommended changes, and the impact of not
23following the State Actuary's recommended changes.
24    (b) Beginning in State fiscal year 1996, on or as soon as
25possible after the 15th day of each month the Board shall
26submit vouchers for payment of State contributions to the

 

 

SB0001CCR001- 50 -LRB098 05457 EFG 50220 c

1System, in a total monthly amount of one-twelfth of the
2required annual State contribution certified under subsection
3(a). From the effective date of this amendatory Act of the 93rd
4General Assembly through June 30, 2004, the Board shall not
5submit vouchers for the remainder of fiscal year 2004 in excess
6of the fiscal year 2004 certified contribution amount
7determined under this Section after taking into consideration
8the transfer to the System under subsection (d) of Section
96z-61 of the State Finance Act. These vouchers shall be paid by
10the State Comptroller and Treasurer by warrants drawn on the
11funds appropriated to the System for that fiscal year. If in
12any month the amount remaining unexpended from all other
13appropriations to the System for the applicable fiscal year
14(including the appropriations to the System under Section 8.12
15of the State Finance Act and Section 1 of the State Pension
16Funds Continuing Appropriation Act) is less than the amount
17lawfully vouchered under this Section, the difference shall be
18paid from the General Revenue Fund under the continuing
19appropriation authority provided in Section 1.1 of the State
20Pension Funds Continuing Appropriation Act.
21    (c) The full amount of any annual appropriation for the
22System for State fiscal year 1995 shall be transferred and made
23available to the System at the beginning of that fiscal year at
24the request of the Board. Any excess funds remaining at the end
25of any fiscal year from appropriations shall be retained by the
26System as a general reserve to meet the System's accrued

 

 

SB0001CCR001- 51 -LRB098 05457 EFG 50220 c

1liabilities.
2(Source: P.A. 96-1497, eff. 1-14-11; 96-1511, eff. 1-27-11;
397-694, eff. 6-18-12.)
 
4    (40 ILCS 5/2-162)
5    Sec. 2-162. Application and expiration of new benefit
6increases.
7    (a) As used in this Section, "new benefit increase" means
8an increase in the amount of any benefit provided under this
9Article, or an expansion of the conditions of eligibility for
10any benefit under this Article, that results from an amendment
11to this Code that takes effect after the effective date of this
12amendatory Act of the 94th General Assembly. "New benefit
13increase", however, does not include any benefit increase
14resulting from the changes made to this Article by this
15amendatory Act of the 98th General Assembly.
16    (b) Notwithstanding any other provision of this Code or any
17subsequent amendment to this Code, every new benefit increase
18is subject to this Section and shall be deemed to be granted
19only in conformance with and contingent upon compliance with
20the provisions of this Section.
21    (c) The Public Act enacting a new benefit increase must
22identify and provide for payment to the System of additional
23funding at least sufficient to fund the resulting annual
24increase in cost to the System as it accrues.
25    Every new benefit increase is contingent upon the General

 

 

SB0001CCR001- 52 -LRB098 05457 EFG 50220 c

1Assembly providing the additional funding required under this
2subsection. The Commission on Government Forecasting and
3Accountability shall analyze whether adequate additional
4funding has been provided for the new benefit increase and
5shall report its analysis to the Public Pension Division of the
6Department of Insurance Financial and Professional Regulation.
7A new benefit increase created by a Public Act that does not
8include the additional funding required under this subsection
9is null and void. If the Public Pension Division determines
10that the additional funding provided for a new benefit increase
11under this subsection is or has become inadequate, it may so
12certify to the Governor and the State Comptroller and, in the
13absence of corrective action by the General Assembly, the new
14benefit increase shall expire at the end of the fiscal year in
15which the certification is made.
16    (d) Every new benefit increase shall expire 5 years after
17its effective date or on such earlier date as may be specified
18in the language enacting the new benefit increase or provided
19under subsection (c). This does not prevent the General
20Assembly from extending or re-creating a new benefit increase
21by law.
22    (e) Except as otherwise provided in the language creating
23the new benefit increase, a new benefit increase that expires
24under this Section continues to apply to persons who applied
25and qualified for the affected benefit while the new benefit
26increase was in effect and to the affected beneficiaries and

 

 

SB0001CCR001- 53 -LRB098 05457 EFG 50220 c

1alternate payees of such persons, but does not apply to any
2other person, including without limitation a person who
3continues in service after the expiration date and did not
4apply and qualify for the affected benefit while the new
5benefit increase was in effect.
6(Source: P.A. 94-4, eff. 6-1-05.)
 
7    (40 ILCS 5/2-165 new)
8    Sec. 2-165. Defined contribution plan.
9    (a) By July 1, 2015, the System shall prepare and implement
10a voluntary defined contribution plan for up to 5% of eligible
11active Tier 1 participants. The System shall determine the 5%
12cap by the number of active Tier 1 participants on the
13effective date of this Section. The defined contribution plan
14developed under this Section shall be a plan that aggregates
15employer and employee contributions in individual participant
16accounts which, after meeting any other requirements, are used
17for payouts after retirement in accordance with this Section
18and any other applicable laws.
19    As used in this Section, "defined benefit plan" means the
20retirement plan available under this Article to Tier 1
21participants who have not made the election authorized under
22this Section.
23        (1) Under the defined contribution plan, an active Tier
24    1 participant of this System could elect to cease accruing
25    benefits in the defined benefit plan under this Article and

 

 

SB0001CCR001- 54 -LRB098 05457 EFG 50220 c

1    begin accruing benefits for future service in the defined
2    contribution plan. Service credit under the defined
3    contribution plan may be used for determining retirement
4    eligibility under the defined benefit plan.
5        (2) Participants in the defined contribution plan
6    shall pay employee contributions at the same rate as Tier 1
7    participants in this System who do not participate in the
8    defined contribution plan.
9        (3) State contributions shall be paid into the accounts
10    of all participants in the defined contribution plan at a
11    uniform rate, expressed as a percentage of compensation and
12    determined for each year. This rate shall be no higher than
13    the employer's normal cost for Tier 1 participants in the
14    defined benefit plan for that year, as determined by the
15    System and expressed as a percentage of compensation, and
16    shall be no lower than 3% of compensation. The State shall
17    adjust this rate annually.
18        (4) The defined contribution plan shall require 5 years
19    of participation in the defined contribution plan before
20    vesting in State contributions. If the participant fails to
21    vest in them, the State contributions, and the earnings
22    thereon, shall be forfeited.
23        (5) The defined contribution plan may provide for
24    participants in the plan to be eligible for defined
25    disability benefits. If it does, the System shall reduce
26    the employee contributions credited to the participant's

 

 

SB0001CCR001- 55 -LRB098 05457 EFG 50220 c

1    defined contribution plan account by an amount determined
2    by the System to cover the cost of offering such benefits.
3        (6) The defined contribution plan shall provide a
4    variety of options for investments. These options shall
5    include investments handled by the Illinois State Board of
6    Investment as well as private sector investment options.
7        (7) The defined contribution plan shall provide a
8    variety of options for payouts to retirees and their
9    survivors.
10        (8) To the extent authorized under federal law and as
11    authorized by the System, the plan shall allow former
12    participants in the plan to transfer or roll over employee
13    and vested State contributions, and the earnings thereon,
14    into other qualified retirement plans.
15        (9) The System shall reduce the employee contributions
16    credited to the participant's defined contribution plan
17    account by an amount determined by the System to cover the
18    cost of offering these benefits and any applicable
19    administrative fees.
20    (b) Only persons who are active Tier 1 participants of the
21System on the effective date of this Section are eligible to
22participate in the defined contribution plan. Participation in
23the defined contribution plan shall be limited to the first 5%
24of eligible persons who elect to participate. The election to
25participate in the defined contribution plan is voluntary and
26irrevocable.

 

 

SB0001CCR001- 56 -LRB098 05457 EFG 50220 c

1    (c) An eligible active Tier 1 participant may irrevocably
2elect to participate in the defined contribution plan by filing
3with the System a written application to participate that is
4received by the System prior to its determination that 5% of
5eligible persons have elected to participate in the defined
6contribution plan.
7    When the System first determines that 5% of eligible
8persons have elected to participate in the defined contribution
9plan, the System shall provide notice to previously eligible
10employees that the plan is no longer available and shall cease
11accepting applications to participate.
12    (d) The System shall make a good faith effort to contact
13each active Tier 1 participant who is eligible to participate
14in the defined contribution plan. The System shall mail
15information describing the option to join the defined
16contribution plan to each of these employees to his or her last
17known address on file with the System. If the employee is not
18responsive to other means of contact, it is sufficient for the
19System to publish the details of the option on its website.
20    Upon request for further information describing the
21option, the System shall provide employees with information
22from the System before exercising the option to join the plan,
23including information on the impact to their vested benefits or
24non-vested service. The individual consultation shall include
25projections of the participant's defined benefits at
26retirement or earlier termination of service and the value of

 

 

SB0001CCR001- 57 -LRB098 05457 EFG 50220 c

1the participant's account at retirement or earlier termination
2of service. The System shall not provide advice or counseling
3with respect to whether the employee should exercise the
4option. The System shall inform Tier 1 participants who are
5eligible to participate in the defined contribution plan that
6they may also wish to obtain information and counsel relating
7to their option from any other available source, including but
8not limited to labor organizations, private counsel, and
9financial advisors.
10    (e) In no event shall the System, its staff, its authorized
11representatives, or the Board be liable for any information
12given to an employee under this Section. The System may
13coordinate with the Illinois Department of Central Management
14Services and other retirement systems administering a defined
15contribution plan in accordance with this amendatory Act of the
1698th General Assembly to provide information concerning the
17impact of the option set forth in this Section.
18    (f) Notwithstanding any other provision of this Section, no
19person shall begin participating in the defined contribution
20plan until it has attained qualified plan status and received
21all necessary approvals from the U.S. Internal Revenue Service.
22    (g) The System shall report on its progress under this
23Section, including the available details of the defined
24contribution plan and the System's plans for informing eligible
25Tier 1 participants about the plan, to the Governor and the
26General Assembly on or before January 15, 2015.

 

 

SB0001CCR001- 58 -LRB098 05457 EFG 50220 c

1    (h) The Illinois State Board of Investments shall be the
2plan sponsor for the defined contribution plan established
3under this Section.
4    (i) The intent of this amendatory Act of the 98th General
5Assembly is to ensure that the State's normal cost of
6participation in the defined contribution plan is similar, and
7if possible equal, to the State's normal cost of participation
8in the defined benefit plan, unless a lower State's normal cost
9is necessary to ensure cost neutrality.
 
10    (40 ILCS 5/2-166 new)
11    Sec. 2-166. Defined contribution plan; termination. If the
12defined contribution plan is terminated or becomes inoperative
13pursuant to law, then each participant in the plan shall
14automatically be deemed to have been a contributing Tier 1
15participant in the System's defined benefit plan during the
16time in which he or she participated in the defined
17contribution plan, and for that purpose the System shall be
18entitled to recover the amounts in the participant's defined
19contribution accounts.
 
20    (40 ILCS 5/7-109)  (from Ch. 108 1/2, par. 7-109)
21    Sec. 7-109. Employee.
22    (1) "Employee" means any person who:
23        (a) 1. Receives earnings as payment for the performance
24        of personal services or official duties out of the

 

 

SB0001CCR001- 59 -LRB098 05457 EFG 50220 c

1        general fund of a municipality, or out of any special
2        fund or funds controlled by a municipality, or by an
3        instrumentality thereof, or a participating
4        instrumentality, including, in counties, the fees or
5        earnings of any county fee office; and
6            2. Under the usual common law rules applicable in
7        determining the employer-employee relationship, has
8        the status of an employee with a municipality, or any
9        instrumentality thereof, or a participating
10        instrumentality, including aldermen, county
11        supervisors and other persons (excepting those
12        employed as independent contractors) who are paid
13        compensation, fees, allowances or other emolument for
14        official duties, and, in counties, the several county
15        fee offices.
16        (b) Serves as a township treasurer appointed under the
17    School Code, as heretofore or hereafter amended, and who
18    receives for such services regular compensation as
19    distinguished from per diem compensation, and any regular
20    employee in the office of any township treasurer whether or
21    not his earnings are paid from the income of the permanent
22    township fund or from funds subject to distribution to the
23    several school districts and parts of school districts as
24    provided in the School Code, or from both such sources; or
25    is the chief executive officer, chief educational officer,
26    chief fiscal officer, or other employee of a Financial

 

 

SB0001CCR001- 60 -LRB098 05457 EFG 50220 c

1    Oversight Panel established pursuant to Article 1H of the
2    School Code, other than a superintendent or certified
3    school business official, except that such person shall not
4    be treated as an employee under this Section if that person
5    has negotiated with the Financial Oversight Panel, in
6    conjunction with the school district, a contractual
7    agreement for exclusion from this Section.
8        (c) Holds an elective office in a municipality,
9    instrumentality thereof or participating instrumentality.
10    (2) "Employee" does not include persons who:
11        (a) Are eligible for inclusion under any of the
12    following laws:
13            1. "An Act in relation to an Illinois State
14        Teachers' Pension and Retirement Fund", approved May
15        27, 1915, as amended;
16            2. Articles 15 and 16 of this Code.
17        However, such persons shall be included as employees to
18    the extent of earnings that are not eligible for inclusion
19    under the foregoing laws for services not of an
20    instructional nature of any kind.
21        However, any member of the armed forces who is employed
22    as a teacher of subjects in the Reserve Officers Training
23    Corps of any school and who is not certified under the law
24    governing the certification of teachers shall be included
25    as an employee.
26        (b) Are designated by the governing body of a

 

 

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1    municipality in which a pension fund is required by law to
2    be established for policemen or firemen, respectively, as
3    performing police or fire protection duties, except that
4    when such persons are the heads of the police or fire
5    department and are not eligible to be included within any
6    such pension fund, they shall be included within this
7    Article; provided, that such persons shall not be excluded
8    to the extent of concurrent service and earnings not
9    designated as being for police or fire protection duties.
10    However, (i) any head of a police department who was a
11    participant under this Article immediately before October
12    1, 1977 and did not elect, under Section 3-109 of this Act,
13    to participate in a police pension fund shall be an
14    "employee", and (ii) any chief of police who elects to
15    participate in this Fund under Section 3-109.1 of this
16    Code, regardless of whether such person continues to be
17    employed as chief of police or is employed in some other
18    rank or capacity within the police department, shall be an
19    employee under this Article for so long as such person is
20    employed to perform police duties by a participating
21    municipality and has not lawfully rescinded that election.
22        (c) After August 26, 2011 (the effective date of Public
23    Act 97-609), are contributors to or eligible to contribute
24    to a Taft-Hartley pension plan established on or before
25    June 1, 2011 and are employees of a theatre, arena, or
26    convention center that is located in a municipality located

 

 

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1    in a county with a population greater than 5,000,000, and
2    to which the participating municipality is required to
3    contribute as the person's employer based on earnings from
4    the municipality. Nothing in this paragraph shall affect
5    service credit or creditable service for any period of
6    service prior to August 26, 2011, and this paragraph shall
7    not apply to individuals who are participating in the Fund
8    prior to August 26, 2011.
9        (d) Become an employee of any of the following
10    participating instrumentalities on or after the effective
11    date of this amendatory Act of the 98th General Assembly:
12    the Illinois Municipal League; the Illinois Association of
13    Park Districts; the Illinois Supervisors, County
14    Commissioners and Superintendents of Highways Association;
15    an association, or not-for-profit corporation, membership
16    in which is authorized under Section 85-15 of the Township
17    Code; the United Counties Council; or the Will County
18    Governmental League.
19    (3) All persons, including, without limitation, public
20defenders and probation officers, who receive earnings from
21general or special funds of a county for performance of
22personal services or official duties within the territorial
23limits of the county, are employees of the county (unless
24excluded by subsection (2) of this Section) notwithstanding
25that they may be appointed by and are subject to the direction
26of a person or persons other than a county board or a county

 

 

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1officer. It is hereby established that an employer-employee
2relationship under the usual common law rules exists between
3such employees and the county paying their salaries by reason
4of the fact that the county boards fix their rates of
5compensation, appropriate funds for payment of their earnings
6and otherwise exercise control over them. This finding and this
7amendatory Act shall apply to all such employees from the date
8of appointment whether such date is prior to or after the
9effective date of this amendatory Act and is intended to
10clarify existing law pertaining to their status as
11participating employees in the Fund.
12(Source: P.A. 97-429, eff. 8-16-11; 97-609, eff. 8-26-11;
1397-813, eff. 7-13-12.)
 
14    (40 ILCS 5/7-114)  (from Ch. 108 1/2, par. 7-114)
15    Sec. 7-114. Earnings. "Earnings":
16    (a) An amount to be determined by the board, equal to the
17sum of:
18        1. The total amount of money paid to an employee for
19    personal services or official duties as an employee (except
20    those employed as independent contractors) paid out of the
21    general fund, or out of any special funds controlled by the
22    municipality, or by any instrumentality thereof, or
23    participating instrumentality, including compensation,
24    fees, allowances, or other emolument paid for official
25    duties (but not including automobile maintenance, travel

 

 

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1    expense, or reimbursements for expenditures incurred in
2    the performance of duties or, in the case of a person who
3    first becomes a participant on or after the effective date
4    of this amendatory Act of the 98th General Assembly,
5    payments for unused sick or vacation time) and, for fee
6    offices, the fees or earnings of the offices to the extent
7    such fees are paid out of funds controlled by the
8    municipality, or instrumentality or participating
9    instrumentality; and
10        2. The money value, as determined by rules prescribed
11    by the governing body of the municipality, or
12    instrumentality thereof, of any board, lodging, fuel,
13    laundry, and other allowances provided an employee in lieu
14    of money.
15    (b) For purposes of determining benefits payable under this
16fund payments to a person who is engaged in an independently
17established trade, occupation, profession or business and who
18is paid for his service on a basis other than a monthly or
19other regular salary, are not earnings.
20    (c) If a disabled participating employee is eligible to
21receive Workers' Compensation for an accidental injury and the
22participating municipality or instrumentality which employed
23the participating employee when injured continues to pay the
24participating employee regular salary or other compensation or
25pays the employee an amount in excess of the Workers'
26Compensation amount, then earnings shall be deemed to be the

 

 

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1total payments, including an amount equal to the Workers'
2Compensation payments. These payments shall be subject to
3employee contributions and allocated as if paid to the
4participating employee when the regular payroll amounts would
5have been paid if the participating employee had continued
6working, and creditable service shall be awarded for this
7period.
8    (d) If an elected official who is a participating employee
9becomes disabled but does not resign and is not removed from
10office, then earnings shall include all salary payments made
11for the remainder of that term of office and the official shall
12be awarded creditable service for the term of office.
13    (e) If a participating employee is paid pursuant to "An Act
14to provide for the continuation of compensation for law
15enforcement officers, correctional officers and firemen who
16suffer disabling injury in the line of duty", approved
17September 6, 1973, as amended, the payments shall be deemed
18earnings, and the participating employee shall be awarded
19creditable service for this period.
20    (f) Additional compensation received by a person while
21serving as a supervisor of assessments, assessor, deputy
22assessor or member of a board of review from the State of
23Illinois pursuant to Section 4-10 or 4-15 of the Property Tax
24Code shall not be earnings for purposes of this Article and
25shall not be included in the contribution formula or
26calculation of benefits for such person pursuant to this

 

 

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1Article.
2(Source: P.A. 87-740; 88-670, eff. 12-2-94.)
 
3    (40 ILCS 5/7-116)  (from Ch. 108 1/2, par. 7-116)
4    Sec. 7-116. "Final rate of earnings":
5    (a) For retirement and survivor annuities, the monthly
6earnings obtained by dividing the total earnings received by
7the employee during the period of either (1) the 48 consecutive
8months of service within the last 120 months of service in
9which his total earnings were the highest or (2) the employee's
10total period of service, by the number of months of service in
11such period.
12    (b) For death benefits, the higher of the rate determined
13under paragraph (a) of this Section or total earnings received
14in the last 12 months of service divided by twelve. If the
15deceased employee has less than 12 months of service, the
16monthly final rate shall be the monthly rate of pay the
17employee was receiving when he began service.
18    (c) For disability benefits, the total earnings of a
19participating employee in the last 12 calendar months of
20service prior to the date he becomes disabled divided by 12.
21    (d) In computing the final rate of earnings: (1) the
22earnings rate for all periods of prior service shall be
23considered equal to the average earnings rate for the last 3
24calendar years of prior service for which creditable service is
25received under Section 7-139 or, if there is less than 3 years

 

 

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1of creditable prior service, the average for the total prior
2service period for which creditable service is received under
3Section 7-139; (2) for out of state service and authorized
4leave, the earnings rate shall be the rate upon which service
5credits are granted; (3) periods of military leave shall not be
6considered; (4) the earnings rate for all periods of disability
7shall be considered equal to the rate of earnings upon which
8the employee's disability benefits are computed for such
9periods; (5) the earnings to be considered for each of the
10final three months of the final earnings period for persons who
11first became participants before January 1, 2012 and the
12earnings to be considered for each of the final 24 months for
13participants who first become participants on or after January
141, 2012 shall not exceed 125% of the highest earnings of any
15other month in the final earnings period; and (6) the annual
16amount of final rate of earnings shall be the monthly amount
17multiplied by the number of months of service normally required
18by the position in a year; and (7) in the case of a person who
19first becomes a participant on or after the effective date of
20this amendatory Act of the 98th General Assembly, payments for
21unused sick or vacation time shall not be considered.
22(Source: P.A. 97-609, eff. 1-1-12.)
 
23    (40 ILCS 5/7-139)  (from Ch. 108 1/2, par. 7-139)
24    Sec. 7-139. Credits and creditable service to employees.
25    (a) Each participating employee shall be granted credits

 

 

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1and creditable service, for purposes of determining the amount
2of any annuity or benefit to which he or a beneficiary is
3entitled, as follows:
4        1. For prior service: Each participating employee who
5    is an employee of a participating municipality or
6    participating instrumentality on the effective date shall
7    be granted creditable service, but no credits under
8    paragraph 2 of this subsection (a), for periods of prior
9    service for which credit has not been received under any
10    other pension fund or retirement system established under
11    this Code, as follows:
12        If the effective date of participation for the
13    participating municipality or participating
14    instrumentality is on or before January 1, 1998, creditable
15    service shall be granted for the entire period of prior
16    service with that employer without any employee
17    contribution.
18        If the effective date of participation for the
19    participating municipality or participating
20    instrumentality is after January 1, 1998, creditable
21    service shall be granted for the last 20% of the period of
22    prior service with that employer, but no more than 5 years,
23    without any employee contribution. A participating
24    employee may establish creditable service for the
25    remainder of the period of prior service with that employer
26    by making an application in writing, accompanied by payment

 

 

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1    of an employee contribution in an amount determined by the
2    Fund, based on the employee contribution rates in effect at
3    the time of application for the creditable service and the
4    employee's salary rate on the effective date of
5    participation for that employer, plus interest at the
6    effective rate from the date of the prior service to the
7    date of payment. Application for this creditable service
8    may be made at any time while the employee is still in
9    service.
10        A municipality that (i) has at least 35 employees; (ii)
11    is located in a county with at least 2,000,000 inhabitants;
12    and (iii) maintains an independent defined benefit pension
13    plan for the benefit of its eligible employees may restrict
14    creditable service in whole or in part for periods of prior
15    service with the employer if the governing body of the
16    municipality adopts an irrevocable resolution to restrict
17    that creditable service and files the resolution with the
18    board before the municipality's effective date of
19    participation.
20        Any person who has withdrawn from the service of a
21    participating municipality or participating
22    instrumentality prior to the effective date, who reenters
23    the service of the same municipality or participating
24    instrumentality after the effective date and becomes a
25    participating employee is entitled to creditable service
26    for prior service as otherwise provided in this subdivision

 

 

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1    (a)(1) only if he or she renders 2 years of service as a
2    participating employee after the effective date.
3    Application for such service must be made while in a
4    participating status. The salary rate to be used in the
5    calculation of the required employee contribution, if any,
6    shall be the employee's salary rate at the time of first
7    reentering service with the employer after the employer's
8    effective date of participation.
9        2. For current service, each participating employee
10    shall be credited with:
11            a. Additional credits of amounts equal to each
12        payment of additional contributions received from him
13        under Section 7-173, as of the date the corresponding
14        payment of earnings is payable to him.
15            b. Normal credits of amounts equal to each payment
16        of normal contributions received from him, as of the
17        date the corresponding payment of earnings is payable
18        to him, and normal contributions made for the purpose
19        of establishing out-of-state service credits as
20        permitted under the conditions set forth in paragraph 6
21        of this subsection (a).
22            c. Municipality credits in an amount equal to 1.4
23        times the normal credits, except those established by
24        out-of-state service credits, as of the date of
25        computation of any benefit if these credits would
26        increase the benefit.

 

 

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1            d. Survivor credits equal to each payment of
2        survivor contributions received from the participating
3        employee as of the date the corresponding payment of
4        earnings is payable, and survivor contributions made
5        for the purpose of establishing out-of-state service
6        credits.
7        3. For periods of temporary and total and permanent
8    disability benefits, each employee receiving disability
9    benefits shall be granted creditable service for the period
10    during which disability benefits are payable. Normal and
11    survivor credits, based upon the rate of earnings applied
12    for disability benefits, shall also be granted if such
13    credits would result in a higher benefit to any such
14    employee or his beneficiary.
15        4. For authorized leave of absence without pay: A
16    participating employee shall be granted credits and
17    creditable service for periods of authorized leave of
18    absence without pay under the following conditions:
19            a. An application for credits and creditable
20        service is submitted to the board while the employee is
21        in a status of active employment.
22            b. Not more than 12 complete months of creditable
23        service for authorized leave of absence without pay
24        shall be counted for purposes of determining any
25        benefits payable under this Article.
26            c. Credits and creditable service shall be granted

 

 

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1        for leave of absence only if such leave is approved by
2        the governing body of the municipality, including
3        approval of the estimated cost thereof to the
4        municipality as determined by the fund, and employee
5        contributions, plus interest at the effective rate
6        applicable for each year from the end of the period of
7        leave to date of payment, have been paid to the fund in
8        accordance with Section 7-173. The contributions shall
9        be computed upon the assumption earnings continued
10        during the period of leave at the rate in effect when
11        the leave began.
12            d. Benefits under the provisions of Sections
13        7-141, 7-146, 7-150 and 7-163 shall become payable to
14        employees on authorized leave of absence, or their
15        designated beneficiary, only if such leave of absence
16        is creditable hereunder, and if the employee has at
17        least one year of creditable service other than the
18        service granted for leave of absence. Any employee
19        contributions due may be deducted from any benefits
20        payable.
21            e. No credits or creditable service shall be
22        allowed for leave of absence without pay during any
23        period of prior service.
24        5. For military service: The governing body of a
25    municipality or participating instrumentality may elect to
26    allow creditable service to participating employees who

 

 

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1    leave their employment to serve in the armed forces of the
2    United States for all periods of such service, provided
3    that the person returns to active employment within 90 days
4    after completion of full time active duty, but no
5    creditable service shall be allowed such person for any
6    period that can be used in the computation of a pension or
7    any other pay or benefit, other than pay for active duty,
8    for service in any branch of the armed forces of the United
9    States. If necessary to the computation of any benefit, the
10    board shall establish municipality credits for
11    participating employees under this paragraph on the
12    assumption that the employee received earnings at the rate
13    received at the time he left the employment to enter the
14    armed forces. A participating employee in the armed forces
15    shall not be considered an employee during such period of
16    service and no additional death and no disability benefits
17    are payable for death or disability during such period.
18        Any participating employee who left his employment
19    with a municipality or participating instrumentality to
20    serve in the armed forces of the United States and who
21    again became a participating employee within 90 days after
22    completion of full time active duty by entering the service
23    of a different municipality or participating
24    instrumentality, which has elected to allow creditable
25    service for periods of military service under the preceding
26    paragraph, shall also be allowed creditable service for his

 

 

SB0001CCR001- 74 -LRB098 05457 EFG 50220 c

1    period of military service on the same terms that would
2    apply if he had been employed, before entering military
3    service, by the municipality or instrumentality which
4    employed him after he left the military service and the
5    employer costs arising in relation to such grant of
6    creditable service shall be charged to and paid by that
7    municipality or instrumentality.
8        Notwithstanding the foregoing, any participating
9    employee shall be entitled to creditable service as
10    required by any federal law relating to re-employment
11    rights of persons who served in the United States Armed
12    Services. Such creditable service shall be granted upon
13    payment by the member of an amount equal to the employee
14    contributions which would have been required had the
15    employee continued in service at the same rate of earnings
16    during the military leave period, plus interest at the
17    effective rate.
18        5.1. In addition to any creditable service established
19    under paragraph 5 of this subsection (a), creditable
20    service may be granted for up to 48 months of service in
21    the armed forces of the United States.
22        In order to receive creditable service for military
23    service under this paragraph 5.1, a participating employee
24    must (1) apply to the Fund in writing and provide evidence
25    of the military service that is satisfactory to the Board;
26    (2) obtain the written approval of the current employer;

 

 

SB0001CCR001- 75 -LRB098 05457 EFG 50220 c

1    and (3) make contributions to the Fund equal to (i) the
2    employee contributions that would have been required had
3    the service been rendered as a member, plus (ii) an amount
4    determined by the board to be equal to the employer's
5    normal cost of the benefits accrued for that military
6    service, plus (iii) interest on items (i) and (ii) from the
7    date of first membership in the Fund to the date of
8    payment. The required interest shall be calculated at the
9    regular interest rate.
10        The changes made to this paragraph 5.1 by Public Acts
11    95-483 and 95-486 apply only to participating employees in
12    service on or after August 28, 2007 (the effective date of
13    those Public Acts).
14        6. For out-of-state service: Creditable service shall
15    be granted for service rendered to an out-of-state local
16    governmental body under the following conditions: The
17    employee had participated and has irrevocably forfeited
18    all rights to benefits in the out-of-state public employees
19    pension system; the governing body of his participating
20    municipality or instrumentality authorizes the employee to
21    establish such service; the employee has 2 years current
22    service with this municipality or participating
23    instrumentality; the employee makes a payment of
24    contributions, which shall be computed at 8% (normal) plus
25    2% (survivor) times length of service purchased times the
26    average rate of earnings for the first 2 years of service

 

 

SB0001CCR001- 76 -LRB098 05457 EFG 50220 c

1    with the municipality or participating instrumentality
2    whose governing body authorizes the service established
3    plus interest at the effective rate on the date such
4    credits are established, payable from the date the employee
5    completes the required 2 years of current service to date
6    of payment. In no case shall more than 120 months of
7    creditable service be granted under this provision.
8        7. For retroactive service: Any employee who could have
9    but did not elect to become a participating employee, or
10    who should have been a participant in the Municipal Public
11    Utilities Annuity and Benefit Fund before that fund was
12    superseded, may receive creditable service for the period
13    of service not to exceed 50 months; however, a current or
14    former elected or appointed official of a participating
15    municipality may establish credit under this paragraph 7
16    for more than 50 months of service as an official of that
17    municipality, if the excess over 50 months is approved by
18    resolution of the governing body of the affected
19    municipality filed with the Fund before January 1, 2002.
20        Any employee who is a participating employee on or
21    after September 24, 1981 and who was excluded from
22    participation by the age restrictions removed by Public Act
23    82-596 may receive creditable service for the period, on or
24    after January 1, 1979, excluded by the age restriction and,
25    in addition, if the governing body of the participating
26    municipality or participating instrumentality elects to

 

 

SB0001CCR001- 77 -LRB098 05457 EFG 50220 c

1    allow creditable service for all employees excluded by the
2    age restriction prior to January 1, 1979, for service
3    during the period prior to that date excluded by the age
4    restriction. Any employee who was excluded from
5    participation by the age restriction removed by Public Act
6    82-596 and who is not a participating employee on or after
7    September 24, 1981 may receive creditable service for
8    service after January 1, 1979. Creditable service under
9    this paragraph shall be granted upon payment of the
10    employee contributions which would have been required had
11    he participated, with interest at the effective rate for
12    each year from the end of the period of service established
13    to date of payment.
14        8. For accumulated unused sick leave: A participating
15    employee who first becomes a participating employee before
16    the effective date of this amendatory Act of the 98th
17    General Assembly and who is applying for a retirement
18    annuity shall be entitled to creditable service for that
19    portion of the employee's accumulated unused sick leave for
20    which payment is not received, as follows:
21            a. Sick leave days shall be limited to those
22        accumulated under a sick leave plan established by a
23        participating municipality or participating
24        instrumentality which is available to all employees or
25        a class of employees.
26            b. Except as provided in item b-1, only sick leave

 

 

SB0001CCR001- 78 -LRB098 05457 EFG 50220 c

1        days accumulated with a participating municipality or
2        participating instrumentality with which the employee
3        was in service within 60 days of the effective date of
4        his retirement annuity shall be credited; If the
5        employee was in service with more than one employer
6        during this period only the sick leave days with the
7        employer with which the employee has the greatest
8        number of unpaid sick leave days shall be considered.
9            b-1. If the employee was in the service of more
10        than one employer as defined in item (2) of paragraph
11        (a) of subsection (A) of Section 7-132, then the sick
12        leave days from all such employers shall be credited,
13        as long as the creditable service attributed to those
14        sick leave days does not exceed the limitation in item
15        f of this paragraph 8. In calculating the creditable
16        service under this item b-1, the sick leave days from
17        the last employer shall be considered first, then the
18        remaining sick leave days shall be considered until
19        there are no more days or the maximum creditable sick
20        leave threshold under item f of this paragraph 8 has
21        been reached.
22            c. The creditable service granted shall be
23        considered solely for the purpose of computing the
24        amount of the retirement annuity and shall not be used
25        to establish any minimum service period required by any
26        provision of the Illinois Pension Code, the effective

 

 

SB0001CCR001- 79 -LRB098 05457 EFG 50220 c

1        date of the retirement annuity, or the final rate of
2        earnings.
3            d. The creditable service shall be at the rate of
4        1/20 of a month for each full sick day, provided that
5        no more than 12 months may be credited under this
6        subdivision 8.
7            e. Employee contributions shall not be required
8        for creditable service under this subdivision 8.
9            f. Each participating municipality and
10        participating instrumentality with which an employee
11        has service within 60 days of the effective date of his
12        retirement annuity shall certify to the board the
13        number of accumulated unpaid sick leave days credited
14        to the employee at the time of termination of service.
15        9. For service transferred from another system:
16    Credits and creditable service shall be granted for service
17    under Article 4, 5, 8, 14, or 16 of this Act, to any active
18    member of this Fund, and to any inactive member who has
19    been a county sheriff, upon transfer of such credits
20    pursuant to Section 4-108.3, 5-235, 8-226.7, 14-105.6, or
21    16-131.4, and payment by the member of the amount by which
22    (1) the employer and employee contributions that would have
23    been required if he had participated in this Fund as a
24    sheriff's law enforcement employee during the period for
25    which credit is being transferred, plus interest thereon at
26    the effective rate for each year, compounded annually, from

 

 

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1    the date of termination of the service for which credit is
2    being transferred to the date of payment, exceeds (2) the
3    amount actually transferred to the Fund. Such transferred
4    service shall be deemed to be service as a sheriff's law
5    enforcement employee for the purposes of Section 7-142.1.
6        10. For service transferred from an Article 3 system
7    under Section 3-110.8: Credits and creditable service
8    shall be granted for service under Article 3 of this Act as
9    provided in Section 3-110.8, to any active member of this
10    Fund upon transfer of such credits pursuant to Section
11    3-110.8. If the amount by which (1) the employer and
12    employee contributions that would have been required if he
13    had participated in this Fund during the period for which
14    credit is being transferred, plus interest thereon at the
15    effective rate for each year, compounded annually, from the
16    date of termination of the service for which credit is
17    being transferred to the date of payment, exceeds (2) the
18    amount actually transferred to the Fund, then the amount of
19    creditable service established under this paragraph 10
20    shall be reduced by a corresponding amount in accordance
21    with the rules and procedures established under this
22    paragraph 10.
23        The board shall establish by rule the manner of making
24    the calculation required under this paragraph 10, taking
25    into account the appropriate actuarial assumptions; the
26    member's service, age, and salary history; the level of

 

 

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1    funding of the employer; and any other factors that the
2    board determines to be relevant.
3        Until January 1, 2010, members who transferred service
4    from an Article 3 system under the provisions of Public Act
5    94-356 may establish additional credit in this Fund, but
6    only up to the amount of the service credit reduction in
7    that transfer, as calculated under the actuarial
8    assumptions. This credit may be established upon payment by
9    the member of an amount to be determined by the board,
10    equal to (1) the amount that would have been contributed as
11    employee and employer contributions had all the service
12    been as an employee under this Article, plus interest
13    thereon compounded annually from the date of service to the
14    date of transfer, less (2) the total amount transferred
15    from the Article 3 system, plus (3) interest on the
16    difference at the effective rate for each year, compounded
17    annually, from the date of the transfer to the date of
18    payment. The additional service credit is allowed under
19    this amendatory Act of the 95th General Assembly
20    notwithstanding the provisions of Article 3 terminating
21    all transferred credits on the date of transfer.
22        11. For service transferred from an Article 3 system
23    under Section 3-110.3: Credits and creditable service
24    shall be granted for service under Article 3 of this Act as
25    provided in Section 3-110.3, to any active member of this
26    Fund, upon transfer of such credits pursuant to Section

 

 

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1    3-110.3. If the board determines that the amount
2    transferred is less than the true cost to the Fund of
3    allowing that creditable service to be established, then in
4    order to establish that creditable service, the member must
5    pay to the Fund an additional contribution equal to the
6    difference, as determined by the board in accordance with
7    the rules and procedures adopted under this paragraph. If
8    the member does not make the full additional payment as
9    required by this paragraph prior to termination of his
10    participation with that employer, then his or her
11    creditable service shall be reduced by an amount equal to
12    the difference between the amount transferred under
13    Section 3-110.3, including any payments made by the member
14    under this paragraph prior to termination, and the true
15    cost to the Fund of allowing that creditable service to be
16    established, as determined by the board in accordance with
17    the rules and procedures adopted under this paragraph.
18        The board shall establish by rule the manner of making
19    the calculation required under this paragraph 11, taking
20    into account the appropriate actuarial assumptions; the
21    member's service, age, and salary history, and any other
22    factors that the board determines to be relevant.
23    (b) Creditable service - amount:
24        1. One month of creditable service shall be allowed for
25    each month for which a participating employee made
26    contributions as required under Section 7-173, or for which

 

 

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1    creditable service is otherwise granted hereunder. Not
2    more than 1 month of service shall be credited and counted
3    for 1 calendar month, and not more than 1 year of service
4    shall be credited and counted for any calendar year. A
5    calendar month means a nominal month beginning on the first
6    day thereof, and a calendar year means a year beginning
7    January 1 and ending December 31.
8        2. A seasonal employee shall be given 12 months of
9    creditable service if he renders the number of months of
10    service normally required by the position in a 12-month
11    period and he remains in service for the entire 12-month
12    period. Otherwise a fractional year of service in the
13    number of months of service rendered shall be credited.
14        3. An intermittent employee shall be given creditable
15    service for only those months in which a contribution is
16    made under Section 7-173.
17    (c) No application for correction of credits or creditable
18service shall be considered unless the board receives an
19application for correction while (1) the applicant is a
20participating employee and in active employment with a
21participating municipality or instrumentality, or (2) while
22the applicant is actively participating in a pension fund or
23retirement system which is a participating system under the
24Retirement Systems Reciprocal Act. A participating employee or
25other applicant shall not be entitled to credits or creditable
26service unless the required employee contributions are made in

 

 

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1a lump sum or in installments made in accordance with board
2rule.
3    (d) Upon the granting of a retirement, surviving spouse or
4child annuity, a death benefit or a separation benefit, on
5account of any employee, all individual accumulated credits
6shall thereupon terminate. Upon the withdrawal of additional
7contributions, the credits applicable thereto shall thereupon
8terminate. Terminated credits shall not be applied to increase
9the benefits any remaining employee would otherwise receive
10under this Article.
11(Source: P.A. 97-415, eff. 8-16-11; 98-439, eff. 8-16-13.)
 
12    (40 ILCS 5/9-219)  (from Ch. 108 1/2, par. 9-219)
13    Sec. 9-219. Computation of service.
14    (1) In computing the term of service of an employee prior
15to the effective date, the entire period beginning on the date
16he was first appointed and ending on the day before the
17effective date, except any intervening period during which he
18was separated by withdrawal from service, shall be counted for
19all purposes of this Article.
20    (2) In computing the term of service of any employee on or
21after the effective date, the following periods of time shall
22be counted as periods of service for age and service, widow's
23and child's annuity purposes:
24        (a) The time during which he performed the duties of
25    his position.

 

 

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1        (b) Vacations, leaves of absence with whole or part
2    pay, and leaves of absence without pay not longer than 90
3    days.
4        (c) For an employee who is a member of a county police
5    department or a correctional officer with the county
6    department of corrections, approved leaves of absence
7    without pay during which the employee serves as a full-time
8    officer or employee of an employee association, the
9    membership of which consists of other participants in the
10    Fund, provided that the employee contributes to the Fund
11    (1) the amount that he would have contributed had he
12    remained an active employee in the position he occupied at
13    the time the leave of absence was granted, (2) an amount
14    calculated by the Board representing employer
15    contributions, and (3) regular interest thereon from the
16    date of service to the date of payment. However, if the
17    employee's application to establish credit under this
18    subsection is received by the Fund on or after July 1, 2002
19    and before July 1, 2003, the amount representing employer
20    contributions specified in item (2) shall be waived.
21        For a former member of a county police department who
22    has received a refund under Section 9-164, periods during
23    which the employee serves as head of an employee
24    association, the membership of which consists of other
25    police officers, provided that the employee contributes to
26    the Fund (1) the amount that he would have contributed had

 

 

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1    he remained an active member of the county police
2    department in the position he occupied at the time he left
3    service, (2) an amount calculated by the Board representing
4    employer contributions, and (3) regular interest thereon
5    from the date of service to the date of payment. However,
6    if the former member of the county police department
7    retires on or after January 1, 1993 but no later than March
8    1, 1993, the amount representing employer contributions
9    specified in item (2) shall be waived.
10        For leaves of absence to which this item (c) applies
11    and for other periods to which this item (c) applies,
12    including those leaves of absence and other periods of
13    service beginning before January 5, 2012 (the effective
14    date of Public Act 97-651) this amendatory Act of the 97th
15    General Assembly, the employee or former member must
16    continue to remain in sworn status, subject to the
17    professional standards of the public employer or those
18    terms established in statute.
19        (d) Any period of disability for which he received
20    disability benefit or whole or part pay.
21        (e) For a person who first becomes an employee before
22    the effective date of this amendatory Act of the 98th
23    General Assembly, accumulated Accumulated vacation or
24    other time for which an employee who retires on or after
25    November 1, 1990 receives a lump sum payment at the time of
26    retirement, provided that contributions were made to the

 

 

SB0001CCR001- 87 -LRB098 05457 EFG 50220 c

1    fund at the time such lump sum payment was received. The
2    service granted for the lump sum payment shall not change
3    the employee's date of withdrawal for computing the
4    effective date of the annuity.
5        (f) An employee who first becomes an employee before
6    the effective date of this amendatory Act of the 98th
7    General Assembly may receive service credit for annuity
8    purposes for accumulated sick leave as of the date of the
9    employee's withdrawal from service, not to exceed a total
10    of 180 days, provided that the amount of such accumulated
11    sick leave is certified by the County Comptroller to the
12    Board and the employee pays an amount equal to 8.5% (9% for
13    members of the County Police Department who are eligible to
14    receive an annuity under Section 9-128.1) of the amount
15    that would have been paid had such accumulated sick leave
16    been paid at the employee's final rate of salary. Such
17    payment shall be made within 30 days after the date of
18    withdrawal and prior to receipt of the first annuity check.
19    The service credit granted for such accumulated sick leave
20    shall not change the employee's date of withdrawal for the
21    purpose of computing the effective date of the annuity.
22    (3) In computing the term of service of an employee on or
23after the effective date for ordinary disability benefit
24purposes, the following periods of time shall be counted as
25periods of service:
26        (a) Unless otherwise specified in Section 9-157, the

 

 

SB0001CCR001- 88 -LRB098 05457 EFG 50220 c

1    time during which he performed the duties of his position.
2        (b) Paid vacations and leaves of absence with whole or
3    part pay.
4        (c) Any period for which he received duty disability
5    benefit.
6        (d) Any period of disability for which he received
7    whole or part pay.
8    (4) For an employee who on January 1, 1958, was transferred
9by Act of the 70th General Assembly from his position in a
10department of welfare of any city located in the county in
11which this Article is in force and effect to a similar position
12in a department of such county, service shall also be credited
13for ordinary disability benefit and child's annuity for such
14period of department of welfare service during which period he
15was a contributor to a statutory annuity and benefit fund in
16such city and for which purposes service credit would otherwise
17not be credited by virtue of such involuntary transfer.
18    (5) An employee described in subsection (e) of Section
199-108 shall receive credit for child's annuity and ordinary
20disability benefit for the period of time for which he was
21credited with service in the fund from which he was
22involuntarily separated through class or group transfer;
23provided, that no such credit shall be allowed to the extent
24that it results in a duplication of credits or benefits, and
25neither shall such credit be allowed to the extent that it was
26or may be forfeited by the application for and acceptance of a

 

 

SB0001CCR001- 89 -LRB098 05457 EFG 50220 c

1refund from the fund from which the employee was transferred.
2    (6) Overtime or extra service shall not be included in
3computing service. Not more than 1 year of service shall be
4allowed for service rendered during any calendar year.
5    (7) Unused sick or vacation time shall not be used to
6compute the service of an employee who first becomes an
7employee on or after the effective date of this amendatory Act
8of the 98th General Assembly.
9(Source: P.A. 97-651, eff. 1-5-12.)
 
10    (40 ILCS 5/9-220)  (from Ch. 108 1/2, par. 9-220)
11    Sec. 9-220. Basis of service credit.
12    (a) In computing the period of service of any employee for
13annuity purposes under Section 9-134, the following provisions
14shall govern:
15        (1) All periods prior to the effective date shall be
16    computed in accordance with the provisions governing the
17    computation of such service.
18        (2) Service on or after the effective date shall
19    include:
20            (i) The actual period of time the employee
21        contributes or has contributed to the fund for service
22        rendered to age 65 plus the actual period of time after
23        age 65 for which the employee performs the duties of
24        his position or performs such duties and is given a
25        county contribution for age and service annuity or

 

 

SB0001CCR001- 90 -LRB098 05457 EFG 50220 c

1        minimum annuity purposes.
2            (ii) Leaves of absence from duty, or vacation, for
3        which an employee receives all or part of his salary.
4            (iii) For a person who first becomes an employee
5        before the effective date of this amendatory Act of the
6        98th General Assembly, accumulated Accumulated
7        vacation or other time for which an employee who
8        retires on or after November 1, 1990 receives a lump
9        sum payment at the time of retirement, provided that
10        contributions were made to the fund at the time such
11        lump sum payment was received. The service granted for
12        the lump sum payment shall not change the employee's
13        date of withdrawal for computing the effective date of
14        the annuity.
15            (iv) For a person who first becomes an employee
16        before the effective date of this amendatory Act of the
17        98th General Assembly, accumulated Accumulated sick
18        leave as of the date of the employee's withdrawal from
19        service, not to exceed a total of 180 days, provided
20        that the amount of such accumulated sick leave is
21        certified by the County Comptroller to the Board and
22        the employee pays an amount equal to 8.5% (9% for
23        members of the County Police Department who are
24        eligible to receive an annuity under Section 9-128.1)
25        of the amount that would have been paid had such
26        accumulated sick leave been paid at the employee's

 

 

SB0001CCR001- 91 -LRB098 05457 EFG 50220 c

1        final rate of salary. Such payment shall be made within
2        30 days after the date of withdrawal and prior to
3        receipt of the first annuity check. The service credit
4        granted for such accumulated sick leave shall not
5        change the employee's date of withdrawal for the
6        purpose of computing the effective date of the annuity.
7            (v) Periods during which the employee has had
8        contributions for annuity purposes made for him in
9        accordance with law while on military leave of absence
10        during World War II.
11            (vi) Periods during which the employee receives a
12        disability benefit under this Article.
13            (vii) For any person who first becomes a member on
14        or after January 1, 2011, the actual period of time the
15        employee contributes or has contributed to the fund for
16        service rendered up to the limitation on salary in
17        subsection (b-5) of Section 1-160 plus the actual
18        period of time thereafter for which the employee
19        performs the duties of his position and ceased
20        contributing due to the salary limitation in
21        subsection (b-5) of Section 1-160.
22        (3) The right to have certain periods of time
23    considered as service as stated in paragraph (2) of Section
24    9-164 shall not apply for annuity purposes unless the
25    refunds shall have been repaid in accordance with this
26    Article.

 

 

SB0001CCR001- 92 -LRB098 05457 EFG 50220 c

1        (4) All service shall be computed in whole calendar
2    months, and at least 15 days of service in any one calendar
3    month shall constitute one calendar month of service, and 1
4    year of service shall be equal to the number of months,
5    days or hours for which an appropriation was made in the
6    annual appropriation ordinance for the position held by the
7    employee.
8        (5) Unused sick or vacation time shall not be used to
9    compute the service of an employee who first becomes an
10    employee on or after the effective date of this amendatory
11    Act of the 98th General Assembly.
12    (b) For all other annuity purposes of this Article the
13following schedule shall govern the computation of a year of
14service of an employee whose salary or wages is on the basis
15stated, and any fractional part of a year of service shall be
16determined according to said schedule:
17    Annual or Monthly Basis: Service during 4 months in any 1
18calendar year;
19    Weekly Basis: Service during any 17 weeks of any 1 calendar
20year, and service during any week shall constitute a week of
21service;
22    Daily Basis: Service during 100 days in any 1 calendar
23year, and service during any day shall constitute a day of
24service;
25    Hourly Basis: Service during 800 hours in any 1 calendar
26year, and service during any hour shall constitute an hour of

 

 

SB0001CCR001- 93 -LRB098 05457 EFG 50220 c

1service.
2(Source: P.A. 96-1490, eff. 1-1-11.)
 
3    (40 ILCS 5/14-103.10)  (from Ch. 108 1/2, par. 14-103.10)
4    Sec. 14-103.10. Compensation.
5    (a) For periods of service prior to January 1, 1978, the
6full rate of salary or wages payable to an employee for
7personal services performed if he worked the full normal
8working period for his position, subject to the following
9maximum amounts: (1) prior to July 1, 1951, $400 per month or
10$4,800 per year; (2) between July 1, 1951 and June 30, 1957
11inclusive, $625 per month or $7,500 per year; (3) beginning
12July 1, 1957, no limitation.
13    In the case of service of an employee in a position
14involving part-time employment, compensation shall be
15determined according to the employees' earnings record.
16    (b) For periods of service on and after January 1, 1978,
17all remuneration for personal services performed defined as
18"wages" under the Social Security Enabling Act, including that
19part of such remuneration which is in excess of any maximum
20limitation provided in such Act, and including any benefits
21received by an employee under a sick pay plan in effect before
22January 1, 1981, but excluding lump sum salary payments:
23        (1) for vacation,
24        (2) for accumulated unused sick leave,
25        (3) upon discharge or dismissal,

 

 

SB0001CCR001- 94 -LRB098 05457 EFG 50220 c

1        (4) for approved holidays.
2    (c) For periods of service on or after December 16, 1978,
3compensation also includes any benefits, other than lump sum
4salary payments made at termination of employment, which an
5employee receives or is eligible to receive under a sick pay
6plan authorized by law.
7    (d) For periods of service after September 30, 1985,
8compensation also includes any remuneration for personal
9services not included as "wages" under the Social Security
10Enabling Act, which is deducted for purposes of participation
11in a program established pursuant to Section 125 of the
12Internal Revenue Code or its successor laws.
13    (e) For members for which Section 1-160 applies for periods
14of service on and after January 1, 2011, all remuneration for
15personal services performed defined as "wages" under the Social
16Security Enabling Act, excluding remuneration that is in excess
17of the annual earnings, salary, or wages of a member or
18participant, as provided in subsection (b-5) of Section 1-160,
19but including any benefits received by an employee under a sick
20pay plan in effect before January 1, 1981. Compensation shall
21exclude lump sum salary payments:
22        (1) for vacation;
23        (2) for accumulated unused sick leave;
24        (3) upon discharge or dismissal; and
25        (4) for approved holidays.
26    (f) Notwithstanding the other provisions of this Section,

 

 

SB0001CCR001- 95 -LRB098 05457 EFG 50220 c

1for service on or after July 1, 2013, "compensation" does not
2include any stipend payable to an employee for service on a
3board or commission.
4    (g) Notwithstanding any other provision of this Section,
5for an employee who first becomes a participant on or after the
6effective date of this amendatory Act of the 98th General
7Assembly, "compensation" does not include any payments or
8reimbursements for travel vouchers submitted more than 30 days
9after the last day of travel for which the voucher is
10submitted.
11    (h) Notwithstanding any other provision of this Code, the
12annual compensation of a Tier 1 member for the purposes of this
13Code shall not exceed, for periods of service on or after the
14effective date of this amendatory Act of the 98th General
15Assembly, the greater of (i) the annual limitation determined
16from time to time under subsection (b-5) of Section 1-160 of
17this Code, (ii) the annualized compensation of the Tier 1
18member as of that effective date, or (iii) the annualized
19compensation of the Tier 1 member immediately preceding the
20expiration, renewal, or amendment of an employment contract or
21collective bargaining agreement in effect on that effective
22date.
23(Source: P.A. 98-449, eff. 8-16-13.)
 
24    (40 ILCS 5/14-103.40 new)
25    Sec. 14-103.40. Tier 1 member. "Tier 1 member": A member

 

 

SB0001CCR001- 96 -LRB098 05457 EFG 50220 c

1of this System who first became a member or participant before
2January 1, 2011 under any reciprocal retirement system or
3pension fund established under this Code other than a
4retirement system or pension fund established under Article 2,
53, 4, 5, 6, or 18 of this Code.
 
6    (40 ILCS 5/14-104.3)  (from Ch. 108 1/2, par. 14-104.3)
7    Sec. 14-104.3. Notwithstanding provisions contained in
8Section 14-103.10, any person who first becomes a member before
9the effective date of this amendatory Act of the 98th General
10Assembly and who at the time of retirement and after December
116, 1983 receives compensation in a lump sum for accumulated
12vacation, sickness, or personal business may receive service
13credit for such periods by making contributions within 90 days
14of withdrawal, based on the rate of compensation in effect
15immediately prior to retirement and the contribution rate then
16in effect. Any person who first becomes a member on or after
17the effective date of this amendatory Act of the 98th General
18Assembly and who receives compensation in a lump sum for
19accumulated vacation, sickness, or personal business may not
20receive service credit for such periods. Exercising the option
21provided in this Section shall not change a member's date of
22withdrawal or final average compensation for purposes of
23computing the amount or effective date of a retirement annuity.
24Any annuitant who establishes service credit as herein provided
25shall have his retirement annuity adjusted retroactively to the

 

 

SB0001CCR001- 97 -LRB098 05457 EFG 50220 c

1date of retirement.
2(Source: P.A. 83-1362.)
 
3    (40 ILCS 5/14-106)  (from Ch. 108 1/2, par. 14-106)
4    Sec. 14-106. Membership service credit.
5    (a) After January 1, 1944, all service of a member since he
6last became a member with respect to which contributions are
7made shall count as membership service; provided, that for
8service on and after July 1, 1950, 12 months of service shall
9constitute a year of membership service, the completion of 15
10days or more of service during any month shall constitute 1
11month of membership service, 8 to 15 days shall constitute 1/2
12month of membership service and less than 8 days shall
13constitute 1/4 month of membership service. The payroll record
14of each department shall constitute conclusive evidence of the
15record of service rendered by a member.
16    (b) For a member who is employed and paid on an
17academic-year basis rather than on a 12-month annual basis,
18employment for a full academic year shall constitute a full
19year of membership service, except that the member shall not
20receive more than one year of membership service credit (plus
21any additional service credit granted for unused sick leave)
22for service during any 12-month period. This subsection (b)
23applies to all such service for which the member has not begun
24to receive a retirement annuity before January 1, 2001.
25    (c) A person who first becomes a member before the

 

 

SB0001CCR001- 98 -LRB098 05457 EFG 50220 c

1effective date of this amendatory Act of the 98th General
2Assembly shall be entitled to additional service credit, under
3rules prescribed by the Board, for accumulated unused sick
4leave credited to his account in the last Department on the
5date of withdrawal from service or for any period for which he
6would have been eligible to receive benefits under a sick pay
7plan authorized by law, if he had suffered a sickness or
8accident on the date of withdrawal from service. It shall be
9the responsibility of the last Department to certify to the
10Board the length of time salary or benefits would have been
11paid to the member based upon the accumulated unused sick leave
12or the applicable sick pay plan if he had become entitled
13thereto because of sickness on the date that his status as an
14employee terminated. This period of service credit granted
15under this paragraph shall not be considered in determining the
16date the retirement annuity is to begin, or final average
17compensation.
18    (d) A person who first becomes a member on or after the
19effective date of this amendatory Act of the 98th General
20Assembly shall not be entitled to additional service credit for
21accumulated unused sick leave.
22(Source: P.A. 92-14, eff. 6-28-01.)
 
23    (40 ILCS 5/14-107)  (from Ch. 108 1/2, par. 14-107)
24    Sec. 14-107. Retirement annuity - service and age -
25conditions.

 

 

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1    (a) A member is entitled to a retirement annuity after
2having at least 8 years of creditable service.
3    (b) A member who has at least 35 years of creditable
4service may claim his or her retirement annuity at any age. A
5member having at least 8 years of creditable service but less
6than 35 may claim his or her retirement annuity upon or after
7attainment of age 60 or, beginning January 1, 2001, any lesser
8age which, when added to the number of years of his or her
9creditable service, equals at least 85. A member upon or after
10attainment of age 55 having at least 25 years of creditable
11service (30 years if retirement is before January 1, 2001) may
12elect to receive the lower retirement annuity provided in
13paragraph (c) of Section 14-108 of this Code. For purposes of
14the rule of 85, portions of years shall be counted in whole
15months.
16    (c) Notwithstanding subsection (b) of this Section, for a
17Tier 1 member who begins receiving a retirement annuity under
18this Section on or after July 1, 2014, the required retirement
19age under subsection (b) is increased as follows, based on the
20Tier 1 member's age on June 1, 2014:
21        (1) If he or she is at least age 46 on June 1, 2014,
22    then the required retirement ages under subsection (b)
23    remain unchanged.
24        (2) If he or she is at least age 45 but less than age 46
25    on June 1, 2014, then the required retirement ages under
26    subsection (b) are increased by 4 months.

 

 

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1        (3) If he or she is at least age 44 but less than age 45
2    on June 1, 2014, then the required retirement ages under
3    subsection (b) are increased by 8 months.
4        (4) If he or she is at least age 43 but less than age 44
5    on June 1, 2014, then the required retirement ages under
6    subsection (b) are increased by 12 months.
7        (5) If he or she is at least age 42 but less than age 43
8    on June 1, 2014, then the required retirement ages under
9    subsection (b) are increased by 16 months.
10        (6) If he or she is at least age 41 but less than age 42
11    on June 1, 2014, then the required retirement ages under
12    subsection (b) are increased by 20 months.
13        (7) If he or she is at least age 40 but less than age 41
14    on June 1, 2014, then the required retirement ages under
15    subsection (b) are increased by 24 months.
16        (8) If he or she is at least age 39 but less than age 40
17    on June 1, 2014, then the required retirement ages under
18    subsection (b) are increased by 28 months.
19        (9) If he or she is at least age 38 but less than age 39
20    on June 1, 2014, then the required retirement ages under
21    subsection (b) are increased by 32 months.
22        (10) If he or she is at least age 37 but less than age
23    38 on June 1, 2014, then the required retirement ages under
24    subsection (b) are increased by 36 months.
25        (11) If he or she is at least age 36 but less than age
26    37 on June 1, 2014, then the required retirement ages under

 

 

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1    subsection (b) are increased by 40 months.
2        (12) If he or she is at least age 35 but less than age
3    36 on June 1, 2014, then the required retirement ages under
4    subsection (b) are increased by 44 months.
5        (13) If he or she is at least age 34 but less than age
6    35 on June 1, 2014, then the required retirement ages under
7    subsection (b) are increased by 48 months.
8        (14) If he or she is at least age 33 but less than age
9    34 on June 1, 2014, then the required retirement ages under
10    subsection (b) are increased by 52 months.
11        (15) If he or she is at least age 32 but less than age
12    33 on June 1, 2014, then the required retirement ages under
13    subsection (b) are increased by 56 months.
14        (16) If he or she is less than age 32 on June 1, 2014,
15    then the required retirement ages under subsection (b) are
16    increased by 60 months.
17    Notwithstanding Section 1-103.1, this subsection (c)
18applies without regard to whether or not the Tier 1 member is
19in active service under this Article on or after the effective
20date of this amendatory Act of the 98th General Assembly.
21    (d) The allowance shall begin with the first full calendar
22month specified in the member's application therefor, the first
23day of which shall not be before the date of withdrawal as
24approved by the board. Regardless of the date of withdrawal,
25the allowance need not begin within one year of application
26therefor.

 

 

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1(Source: P.A. 91-927, eff. 12-14-00.)
 
2    (40 ILCS 5/14-108)  (from Ch. 108 1/2, par. 14-108)
3    Sec. 14-108. Amount of retirement annuity. A member who
4has contributed to the System for at least 12 months shall be
5entitled to a prior service annuity for each year of certified
6prior service credited to him, except that a member shall
7receive 1/3 of the prior service annuity for each year of
8service for which contributions have been made and all of such
9annuity shall be payable after the member has made
10contributions for a period of 3 years. Proportionate amounts
11shall be payable for service of less than a full year after
12completion of at least 12 months.
13    The total period of service to be considered in
14establishing the measure of prior service annuity shall include
15service credited in the Teachers' Retirement System of the
16State of Illinois and the State Universities Retirement System
17for which contributions have been made by the member to such
18systems; provided that at least 1 year of the total period of 3
19years prescribed for the allowance of a full measure of prior
20service annuity shall consist of membership service in this
21system for which credit has been granted.
22    (a) In the case of a member who retires on or after January
231, 1998 and is a noncovered employee, the retirement annuity
24for membership service and prior service shall be 2.2% of final
25average compensation for each year of service. Any service

 

 

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1credit established as a covered employee shall be computed as
2stated in paragraph (b).
3    (b) In the case of a member who retires on or after January
41, 1998 and is a covered employee, the retirement annuity for
5membership service and prior service shall be computed as
6stated in paragraph (a) for all service credit established as a
7noncovered employee; for service credit established as a
8covered employee it shall be 1.67% of final average
9compensation for each year of service.
10    (c) For a member retiring after attaining age 55 but before
11age 60 with at least 30 but less than 35 years of creditable
12service if retirement is before January 1, 2001, or with at
13least 25 but less than 30 years of creditable service if
14retirement is on or after January 1, 2001, the retirement
15annuity shall be reduced by 1/2 of 1% for each month that the
16member's age is under age 60 at the time of retirement. For
17members to whom subsection (c) of Section 14-107 applies, the
18references to age 55 and 60 in this subsection (c) are
19increased as provided in subsection (c) of Section 14-107.
20    (d) A retirement annuity shall not exceed 75% of final
21average compensation, subject to such extension as may result
22from the application of Section 14-114 or Section 14-115.
23    (e) The retirement annuity payable to any covered employee
24who is a member of the System and in service on January 1,
251969, or in service thereafter in 1969 as a result of
26legislation enacted by the Illinois General Assembly

 

 

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1transferring the member to State employment from county
2employment in a county Department of Public Aid in counties of
33,000,000 or more population, under a plan of coordination with
4the Old Age, Survivors and Disability provisions thereof, if
5not fully insured for Old Age Insurance payments under the
6Federal Old Age, Survivors and Disability Insurance provisions
7at the date of acceptance of a retirement annuity, shall not be
8less than the amount for which the member would have been
9eligible if coordination were not applicable.
10    (f) The retirement annuity payable to any covered employee
11who is a member of the System and in service on January 1,
121969, or in service thereafter in 1969 as a result of the
13legislation designated in the immediately preceding paragraph,
14if fully insured for Old Age Insurance payments under the
15Federal Social Security Act at the date of acceptance of a
16retirement annuity, shall not be less than an amount which when
17added to the Primary Insurance Benefit payable to the member
18upon attainment of age 65 under such Federal Act, will equal
19the annuity which would otherwise be payable if the coordinated
20plan of coverage were not applicable.
21    (g) In the case of a member who is a noncovered employee,
22the retirement annuity for membership service as a security
23employee of the Department of Corrections or security employee
24of the Department of Human Services shall be: if retirement
25occurs on or after January 1, 2001, 3% of final average
26compensation for each year of creditable service; or if

 

 

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1retirement occurs before January 1, 2001, 1.9% of final average
2compensation for each of the first 10 years of service, 2.1%
3for each of the next 10 years of service, 2.25% for each year
4of service in excess of 20 but not exceeding 30, and 2.5% for
5each year in excess of 30; except that the annuity may be
6calculated under subsection (a) rather than this subsection (g)
7if the resulting annuity is greater.
8    (h) In the case of a member who is a covered employee, the
9retirement annuity for membership service as a security
10employee of the Department of Corrections or security employee
11of the Department of Human Services shall be: if retirement
12occurs on or after January 1, 2001, 2.5% of final average
13compensation for each year of creditable service; if retirement
14occurs before January 1, 2001, 1.67% of final average
15compensation for each of the first 10 years of service, 1.90%
16for each of the next 10 years of service, 2.10% for each year
17of service in excess of 20 but not exceeding 30, and 2.30% for
18each year in excess of 30.
19    (i) For the purposes of this Section and Section 14-133 of
20this Act, the term "security employee of the Department of
21Corrections" and the term "security employee of the Department
22of Human Services" shall have the meanings ascribed to them in
23subsection (c) of Section 14-110.
24    (j) The retirement annuity computed pursuant to paragraphs
25(g) or (h) shall be applicable only to those security employees
26of the Department of Corrections and security employees of the

 

 

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1Department of Human Services who have at least 20 years of
2membership service and who are not eligible for the alternative
3retirement annuity provided under Section 14-110. However,
4persons transferring to this System under Section 14-108.2 or
514-108.2c who have service credit under Article 16 of this Code
6may count such service toward establishing their eligibility
7under the 20-year service requirement of this subsection; but
8such service may be used only for establishing such
9eligibility, and not for the purpose of increasing or
10calculating any benefit.
11    (k) (Blank).
12    (l) The changes to this Section made by this amendatory Act
13of 1997 (changing certain retirement annuity formulas from a
14stepped rate to a flat rate) apply to members who retire on or
15after January 1, 1998, without regard to whether employment
16terminated before the effective date of this amendatory Act of
171997. An annuity shall not be calculated in steps by using the
18new flat rate for some steps and the superseded stepped rate
19for other steps of the same type of service.
20(Source: P.A. 91-927, eff. 12-14-00; 92-14, eff. 6-28-01.)
 
21    (40 ILCS 5/14-110)  (from Ch. 108 1/2, par. 14-110)
22    Sec. 14-110. Alternative retirement annuity.
23    (a) Any member who has withdrawn from service with not less
24than 20 years of eligible creditable service and has attained
25age 55, and any member who has withdrawn from service with not

 

 

SB0001CCR001- 107 -LRB098 05457 EFG 50220 c

1less than 25 years of eligible creditable service and has
2attained age 50, regardless of whether the attainment of either
3of the specified ages occurs while the member is still in
4service, shall be entitled to receive at the option of the
5member, in lieu of the regular or minimum retirement annuity, a
6retirement annuity computed as follows:
7        (i) for periods of service as a noncovered employee: if
8    retirement occurs on or after January 1, 2001, 3% of final
9    average compensation for each year of creditable service;
10    if retirement occurs before January 1, 2001, 2 1/4% of
11    final average compensation for each of the first 10 years
12    of creditable service, 2 1/2% for each year above 10 years
13    to and including 20 years of creditable service, and 2 3/4%
14    for each year of creditable service above 20 years; and
15        (ii) for periods of eligible creditable service as a
16    covered employee: if retirement occurs on or after January
17    1, 2001, 2.5% of final average compensation for each year
18    of creditable service; if retirement occurs before January
19    1, 2001, 1.67% of final average compensation for each of
20    the first 10 years of such service, 1.90% for each of the
21    next 10 years of such service, 2.10% for each year of such
22    service in excess of 20 but not exceeding 30, and 2.30% for
23    each year in excess of 30.
24    Such annuity shall be subject to a maximum of 75% of final
25average compensation if retirement occurs before January 1,
262001 or to a maximum of 80% of final average compensation if

 

 

SB0001CCR001- 108 -LRB098 05457 EFG 50220 c

1retirement occurs on or after January 1, 2001.
2    These rates shall not be applicable to any service
3performed by a member as a covered employee which is not
4eligible creditable service. Service as a covered employee
5which is not eligible creditable service shall be subject to
6the rates and provisions of Section 14-108.
7    (a-5) Notwithstanding subsection (a) of this Section, for a
8Tier 1 member who begins receiving a retirement annuity under
9this Section on or after July 1, 2014, the required retirement
10age under subsection (a) is increased as follows, based on the
11Tier 1 member's age on June 1, 2014:
12        (1) If he or she is at least age 46 on June 1, 2014,
13    then the required retirement ages under subsection (a)
14    remain unchanged.
15        (2) If he or she is at least age 45 but less than age 46
16    on June 1, 2014, then the required retirement ages under
17    subsection (a) are increased by 4 months.
18        (3) If he or she is at least age 44 but less than age 45
19    on June 1, 2014, then the required retirement ages under
20    subsection (a) are increased by 8 months.
21        (4) If he or she is at least age 43 but less than age 44
22    on June 1, 2014, then the required retirement ages under
23    subsection (a) are increased by 12 months.
24        (5) If he or she is at least age 42 but less than age 43
25    on June 1, 2014, then the required retirement ages under
26    subsection (a) are increased by 16 months.

 

 

SB0001CCR001- 109 -LRB098 05457 EFG 50220 c

1        (6) If he or she is at least age 41 but less than age 42
2    on June 1, 2014, then the required retirement ages under
3    subsection (a) are increased by 20 months.
4        (7) If he or she is at least age 40 but less than age 41
5    on June 1, 2014, then the required retirement ages under
6    subsection (a) are increased by 24 months.
7        (8) If he or she is at least age 39 but less than age 40
8    on June 1, 2014, then the required retirement ages under
9    subsection (a) are increased by 28 months.
10        (9) If he or she is at least age 38 but less than age 39
11    on June 1, 2014, then the required retirement ages under
12    subsection (a) are increased by 32 months.
13        (10) If he or she is at least age 37 but less than age
14    38 on June 1, 2014, then the required retirement ages under
15    subsection (a) are increased by 36 months.
16        (11) If he or she is at least age 36 but less than age
17    37 on June 1, 2014, then the required retirement ages under
18    subsection (a) are increased by 40 months.
19        (12) If he or she is at least age 35 but less than age
20    36 on June 1, 2014, then the required retirement ages under
21    subsection (a) are increased by 44 months.
22        (13) If he or she is at least age 34 but less than age
23    35 on June 1, 2014, then the required retirement ages under
24    subsection (a) are increased by 48 months.
25        (14) If he or she is at least age 33 but less than age
26    34 on June 1, 2014, then the required retirement ages under

 

 

SB0001CCR001- 110 -LRB098 05457 EFG 50220 c

1    subsection (a) are increased by 52 months.
2        (15) If he or she is at least age 32 but less than age
3    33 on June 1, 2014, then the required retirement ages under
4    subsection (a) are increased by 56 months.
5        (16) If he or she is less than age 32 on June 1, 2014,
6    then the required retirement ages under subsection (a) are
7    increased by 60 months.
8    Notwithstanding Section 1-103.1, this subsection (a-5)
9applies without regard to whether or not the Tier 1 member is
10in active service under this Article on or after the effective
11date of this amendatory Act of the 98th General Assembly.
12    (b) For the purpose of this Section, "eligible creditable
13service" means creditable service resulting from service in one
14or more of the following positions:
15        (1) State policeman;
16        (2) fire fighter in the fire protection service of a
17    department;
18        (3) air pilot;
19        (4) special agent;
20        (5) investigator for the Secretary of State;
21        (6) conservation police officer;
22        (7) investigator for the Department of Revenue or the
23    Illinois Gaming Board;
24        (8) security employee of the Department of Human
25    Services;
26        (9) Central Management Services security police

 

 

SB0001CCR001- 111 -LRB098 05457 EFG 50220 c

1    officer;
2        (10) security employee of the Department of
3    Corrections or the Department of Juvenile Justice;
4        (11) dangerous drugs investigator;
5        (12) investigator for the Department of State Police;
6        (13) investigator for the Office of the Attorney
7    General;
8        (14) controlled substance inspector;
9        (15) investigator for the Office of the State's
10    Attorneys Appellate Prosecutor;
11        (16) Commerce Commission police officer;
12        (17) arson investigator;
13        (18) State highway maintenance worker.
14    A person employed in one of the positions specified in this
15subsection is entitled to eligible creditable service for
16service credit earned under this Article while undergoing the
17basic police training course approved by the Illinois Law
18Enforcement Training Standards Board, if completion of that
19training is required of persons serving in that position. For
20the purposes of this Code, service during the required basic
21police training course shall be deemed performance of the
22duties of the specified position, even though the person is not
23a sworn peace officer at the time of the training.
24    (c) For the purposes of this Section:
25        (1) The term "state policeman" includes any title or
26    position in the Department of State Police that is held by

 

 

SB0001CCR001- 112 -LRB098 05457 EFG 50220 c

1    an individual employed under the State Police Act.
2        (2) The term "fire fighter in the fire protection
3    service of a department" includes all officers in such fire
4    protection service including fire chiefs and assistant
5    fire chiefs.
6        (3) The term "air pilot" includes any employee whose
7    official job description on file in the Department of
8    Central Management Services, or in the department by which
9    he is employed if that department is not covered by the
10    Personnel Code, states that his principal duty is the
11    operation of aircraft, and who possesses a pilot's license;
12    however, the change in this definition made by this
13    amendatory Act of 1983 shall not operate to exclude any
14    noncovered employee who was an "air pilot" for the purposes
15    of this Section on January 1, 1984.
16        (4) The term "special agent" means any person who by
17    reason of employment by the Division of Narcotic Control,
18    the Bureau of Investigation or, after July 1, 1977, the
19    Division of Criminal Investigation, the Division of
20    Internal Investigation, the Division of Operations, or any
21    other Division or organizational entity in the Department
22    of State Police is vested by law with duties to maintain
23    public order, investigate violations of the criminal law of
24    this State, enforce the laws of this State, make arrests
25    and recover property. The term "special agent" includes any
26    title or position in the Department of State Police that is

 

 

SB0001CCR001- 113 -LRB098 05457 EFG 50220 c

1    held by an individual employed under the State Police Act.
2        (5) The term "investigator for the Secretary of State"
3    means any person employed by the Office of the Secretary of
4    State and vested with such investigative duties as render
5    him ineligible for coverage under the Social Security Act
6    by reason of Sections 218(d)(5)(A), 218(d)(8)(D) and
7    218(l)(1) of that Act.
8        A person who became employed as an investigator for the
9    Secretary of State between January 1, 1967 and December 31,
10    1975, and who has served as such until attainment of age
11    60, either continuously or with a single break in service
12    of not more than 3 years duration, which break terminated
13    before January 1, 1976, shall be entitled to have his
14    retirement annuity calculated in accordance with
15    subsection (a), notwithstanding that he has less than 20
16    years of credit for such service.
17        (6) The term "Conservation Police Officer" means any
18    person employed by the Division of Law Enforcement of the
19    Department of Natural Resources and vested with such law
20    enforcement duties as render him ineligible for coverage
21    under the Social Security Act by reason of Sections
22    218(d)(5)(A), 218(d)(8)(D), and 218(l)(1) of that Act. The
23    term "Conservation Police Officer" includes the positions
24    of Chief Conservation Police Administrator and Assistant
25    Conservation Police Administrator.
26        (7) The term "investigator for the Department of

 

 

SB0001CCR001- 114 -LRB098 05457 EFG 50220 c

1    Revenue" means any person employed by the Department of
2    Revenue and vested with such investigative duties as render
3    him ineligible for coverage under the Social Security Act
4    by reason of Sections 218(d)(5)(A), 218(d)(8)(D) and
5    218(l)(1) of that Act.
6        The term "investigator for the Illinois Gaming Board"
7    means any person employed as such by the Illinois Gaming
8    Board and vested with such peace officer duties as render
9    the person ineligible for coverage under the Social
10    Security Act by reason of Sections 218(d)(5)(A),
11    218(d)(8)(D), and 218(l)(1) of that Act.
12        (8) The term "security employee of the Department of
13    Human Services" means any person employed by the Department
14    of Human Services who (i) is employed at the Chester Mental
15    Health Center and has daily contact with the residents
16    thereof, (ii) is employed within a security unit at a
17    facility operated by the Department and has daily contact
18    with the residents of the security unit, (iii) is employed
19    at a facility operated by the Department that includes a
20    security unit and is regularly scheduled to work at least
21    50% of his or her working hours within that security unit,
22    or (iv) is a mental health police officer. "Mental health
23    police officer" means any person employed by the Department
24    of Human Services in a position pertaining to the
25    Department's mental health and developmental disabilities
26    functions who is vested with such law enforcement duties as

 

 

SB0001CCR001- 115 -LRB098 05457 EFG 50220 c

1    render the person ineligible for coverage under the Social
2    Security Act by reason of Sections 218(d)(5)(A),
3    218(d)(8)(D) and 218(l)(1) of that Act. "Security unit"
4    means that portion of a facility that is devoted to the
5    care, containment, and treatment of persons committed to
6    the Department of Human Services as sexually violent
7    persons, persons unfit to stand trial, or persons not
8    guilty by reason of insanity. With respect to past
9    employment, references to the Department of Human Services
10    include its predecessor, the Department of Mental Health
11    and Developmental Disabilities.
12        The changes made to this subdivision (c)(8) by Public
13    Act 92-14 apply to persons who retire on or after January
14    1, 2001, notwithstanding Section 1-103.1.
15        (9) "Central Management Services security police
16    officer" means any person employed by the Department of
17    Central Management Services who is vested with such law
18    enforcement duties as render him ineligible for coverage
19    under the Social Security Act by reason of Sections
20    218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that Act.
21        (10) For a member who first became an employee under
22    this Article before July 1, 2005, the term "security
23    employee of the Department of Corrections or the Department
24    of Juvenile Justice" means any employee of the Department
25    of Corrections or the Department of Juvenile Justice or the
26    former Department of Personnel, and any member or employee

 

 

SB0001CCR001- 116 -LRB098 05457 EFG 50220 c

1    of the Prisoner Review Board, who has daily contact with
2    inmates or youth by working within a correctional facility
3    or Juvenile facility operated by the Department of Juvenile
4    Justice or who is a parole officer or an employee who has
5    direct contact with committed persons in the performance of
6    his or her job duties. For a member who first becomes an
7    employee under this Article on or after July 1, 2005, the
8    term means an employee of the Department of Corrections or
9    the Department of Juvenile Justice who is any of the
10    following: (i) officially headquartered at a correctional
11    facility or Juvenile facility operated by the Department of
12    Juvenile Justice, (ii) a parole officer, (iii) a member of
13    the apprehension unit, (iv) a member of the intelligence
14    unit, (v) a member of the sort team, or (vi) an
15    investigator.
16        (11) The term "dangerous drugs investigator" means any
17    person who is employed as such by the Department of Human
18    Services.
19        (12) The term "investigator for the Department of State
20    Police" means a person employed by the Department of State
21    Police who is vested under Section 4 of the Narcotic
22    Control Division Abolition Act with such law enforcement
23    powers as render him ineligible for coverage under the
24    Social Security Act by reason of Sections 218(d)(5)(A),
25    218(d)(8)(D) and 218(l)(1) of that Act.
26        (13) "Investigator for the Office of the Attorney

 

 

SB0001CCR001- 117 -LRB098 05457 EFG 50220 c

1    General" means any person who is employed as such by the
2    Office of the Attorney General and is vested with such
3    investigative duties as render him ineligible for coverage
4    under the Social Security Act by reason of Sections
5    218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that Act. For
6    the period before January 1, 1989, the term includes all
7    persons who were employed as investigators by the Office of
8    the Attorney General, without regard to social security
9    status.
10        (14) "Controlled substance inspector" means any person
11    who is employed as such by the Department of Professional
12    Regulation and is vested with such law enforcement duties
13    as render him ineligible for coverage under the Social
14    Security Act by reason of Sections 218(d)(5)(A),
15    218(d)(8)(D) and 218(l)(1) of that Act. The term
16    "controlled substance inspector" includes the Program
17    Executive of Enforcement and the Assistant Program
18    Executive of Enforcement.
19        (15) The term "investigator for the Office of the
20    State's Attorneys Appellate Prosecutor" means a person
21    employed in that capacity on a full time basis under the
22    authority of Section 7.06 of the State's Attorneys
23    Appellate Prosecutor's Act.
24        (16) "Commerce Commission police officer" means any
25    person employed by the Illinois Commerce Commission who is
26    vested with such law enforcement duties as render him

 

 

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1    ineligible for coverage under the Social Security Act by
2    reason of Sections 218(d)(5)(A), 218(d)(8)(D), and
3    218(l)(1) of that Act.
4        (17) "Arson investigator" means any person who is
5    employed as such by the Office of the State Fire Marshal
6    and is vested with such law enforcement duties as render
7    the person ineligible for coverage under the Social
8    Security Act by reason of Sections 218(d)(5)(A),
9    218(d)(8)(D), and 218(l)(1) of that Act. A person who was
10    employed as an arson investigator on January 1, 1995 and is
11    no longer in service but not yet receiving a retirement
12    annuity may convert his or her creditable service for
13    employment as an arson investigator into eligible
14    creditable service by paying to the System the difference
15    between the employee contributions actually paid for that
16    service and the amounts that would have been contributed if
17    the applicant were contributing at the rate applicable to
18    persons with the same social security status earning
19    eligible creditable service on the date of application.
20        (18) The term "State highway maintenance worker" means
21    a person who is either of the following:
22            (i) A person employed on a full-time basis by the
23        Illinois Department of Transportation in the position
24        of highway maintainer, highway maintenance lead
25        worker, highway maintenance lead/lead worker, heavy
26        construction equipment operator, power shovel

 

 

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1        operator, or bridge mechanic; and whose principal
2        responsibility is to perform, on the roadway, the
3        actual maintenance necessary to keep the highways that
4        form a part of the State highway system in serviceable
5        condition for vehicular traffic.
6            (ii) A person employed on a full-time basis by the
7        Illinois State Toll Highway Authority in the position
8        of equipment operator/laborer H-4, equipment
9        operator/laborer H-6, welder H-4, welder H-6,
10        mechanical/electrical H-4, mechanical/electrical H-6,
11        water/sewer H-4, water/sewer H-6, sign maker/hanger
12        H-4, sign maker/hanger H-6, roadway lighting H-4,
13        roadway lighting H-6, structural H-4, structural H-6,
14        painter H-4, or painter H-6; and whose principal
15        responsibility is to perform, on the roadway, the
16        actual maintenance necessary to keep the Authority's
17        tollways in serviceable condition for vehicular
18        traffic.
19    (d) A security employee of the Department of Corrections or
20the Department of Juvenile Justice, and a security employee of
21the Department of Human Services who is not a mental health
22police officer, shall not be eligible for the alternative
23retirement annuity provided by this Section unless he or she
24meets the following minimum age and service requirements at the
25time of retirement:
26        (i) 25 years of eligible creditable service and age 55;

 

 

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1    or
2        (ii) beginning January 1, 1987, 25 years of eligible
3    creditable service and age 54, or 24 years of eligible
4    creditable service and age 55; or
5        (iii) beginning January 1, 1988, 25 years of eligible
6    creditable service and age 53, or 23 years of eligible
7    creditable service and age 55; or
8        (iv) beginning January 1, 1989, 25 years of eligible
9    creditable service and age 52, or 22 years of eligible
10    creditable service and age 55; or
11        (v) beginning January 1, 1990, 25 years of eligible
12    creditable service and age 51, or 21 years of eligible
13    creditable service and age 55; or
14        (vi) beginning January 1, 1991, 25 years of eligible
15    creditable service and age 50, or 20 years of eligible
16    creditable service and age 55.
17    For members to whom subsection (a-5) of this Section
18applies, the references to age 50 and 55 in item (vi) of this
19subsection are increased as provided in subsection (a-5).
20    Persons who have service credit under Article 16 of this
21Code for service as a security employee of the Department of
22Corrections or the Department of Juvenile Justice, or the
23Department of Human Services in a position requiring
24certification as a teacher may count such service toward
25establishing their eligibility under the service requirements
26of this Section; but such service may be used only for

 

 

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1establishing such eligibility, and not for the purpose of
2increasing or calculating any benefit.
3    (e) If a member enters military service while working in a
4position in which eligible creditable service may be earned,
5and returns to State service in the same or another such
6position, and fulfills in all other respects the conditions
7prescribed in this Article for credit for military service,
8such military service shall be credited as eligible creditable
9service for the purposes of the retirement annuity prescribed
10in this Section.
11    (f) For purposes of calculating retirement annuities under
12this Section, periods of service rendered after December 31,
131968 and before October 1, 1975 as a covered employee in the
14position of special agent, conservation police officer, mental
15health police officer, or investigator for the Secretary of
16State, shall be deemed to have been service as a noncovered
17employee, provided that the employee pays to the System prior
18to retirement an amount equal to (1) the difference between the
19employee contributions that would have been required for such
20service as a noncovered employee, and the amount of employee
21contributions actually paid, plus (2) if payment is made after
22July 31, 1987, regular interest on the amount specified in item
23(1) from the date of service to the date of payment.
24    For purposes of calculating retirement annuities under
25this Section, periods of service rendered after December 31,
261968 and before January 1, 1982 as a covered employee in the

 

 

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1position of investigator for the Department of Revenue shall be
2deemed to have been service as a noncovered employee, provided
3that the employee pays to the System prior to retirement an
4amount equal to (1) the difference between the employee
5contributions that would have been required for such service as
6a noncovered employee, and the amount of employee contributions
7actually paid, plus (2) if payment is made after January 1,
81990, regular interest on the amount specified in item (1) from
9the date of service to the date of payment.
10    (g) A State policeman may elect, not later than January 1,
111990, to establish eligible creditable service for up to 10
12years of his service as a policeman under Article 3, by filing
13a written election with the Board, accompanied by payment of an
14amount to be determined by the Board, equal to (i) the
15difference between the amount of employee and employer
16contributions transferred to the System under Section 3-110.5,
17and the amounts that would have been contributed had such
18contributions been made at the rates applicable to State
19policemen, plus (ii) interest thereon at the effective rate for
20each year, compounded annually, from the date of service to the
21date of payment.
22    Subject to the limitation in subsection (i), a State
23policeman may elect, not later than July 1, 1993, to establish
24eligible creditable service for up to 10 years of his service
25as a member of the County Police Department under Article 9, by
26filing a written election with the Board, accompanied by

 

 

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1payment of an amount to be determined by the Board, equal to
2(i) the difference between the amount of employee and employer
3contributions transferred to the System under Section 9-121.10
4and the amounts that would have been contributed had those
5contributions been made at the rates applicable to State
6policemen, plus (ii) interest thereon at the effective rate for
7each year, compounded annually, from the date of service to the
8date of payment.
9    (h) Subject to the limitation in subsection (i), a State
10policeman or investigator for the Secretary of State may elect
11to establish eligible creditable service for up to 12 years of
12his service as a policeman under Article 5, by filing a written
13election with the Board on or before January 31, 1992, and
14paying to the System by January 31, 1994 an amount to be
15determined by the Board, equal to (i) the difference between
16the amount of employee and employer contributions transferred
17to the System under Section 5-236, and the amounts that would
18have been contributed had such contributions been made at the
19rates applicable to State policemen, plus (ii) interest thereon
20at the effective rate for each year, compounded annually, from
21the date of service to the date of payment.
22    Subject to the limitation in subsection (i), a State
23policeman, conservation police officer, or investigator for
24the Secretary of State may elect to establish eligible
25creditable service for up to 10 years of service as a sheriff's
26law enforcement employee under Article 7, by filing a written

 

 

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1election with the Board on or before January 31, 1993, and
2paying to the System by January 31, 1994 an amount to be
3determined by the Board, equal to (i) the difference between
4the amount of employee and employer contributions transferred
5to the System under Section 7-139.7, and the amounts that would
6have been contributed had such contributions been made at the
7rates applicable to State policemen, plus (ii) interest thereon
8at the effective rate for each year, compounded annually, from
9the date of service to the date of payment.
10    Subject to the limitation in subsection (i), a State
11policeman, conservation police officer, or investigator for
12the Secretary of State may elect to establish eligible
13creditable service for up to 5 years of service as a police
14officer under Article 3, a policeman under Article 5, a
15sheriff's law enforcement employee under Article 7, a member of
16the county police department under Article 9, or a police
17officer under Article 15 by filing a written election with the
18Board and paying to the System an amount to be determined by
19the Board, equal to (i) the difference between the amount of
20employee and employer contributions transferred to the System
21under Section 3-110.6, 5-236, 7-139.8, 9-121.10, or 15-134.4
22and the amounts that would have been contributed had such
23contributions been made at the rates applicable to State
24policemen, plus (ii) interest thereon at the effective rate for
25each year, compounded annually, from the date of service to the
26date of payment.

 

 

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1    Subject to the limitation in subsection (i), an
2investigator for the Office of the Attorney General, or an
3investigator for the Department of Revenue, may elect to
4establish eligible creditable service for up to 5 years of
5service as a police officer under Article 3, a policeman under
6Article 5, a sheriff's law enforcement employee under Article
77, or a member of the county police department under Article 9
8by filing a written election with the Board within 6 months
9after August 25, 2009 (the effective date of Public Act 96-745)
10and paying to the System an amount to be determined by the
11Board, equal to (i) the difference between the amount of
12employee and employer contributions transferred to the System
13under Section 3-110.6, 5-236, 7-139.8, or 9-121.10 and the
14amounts that would have been contributed had such contributions
15been made at the rates applicable to State policemen, plus (ii)
16interest thereon at the actuarially assumed rate for each year,
17compounded annually, from the date of service to the date of
18payment.
19    Subject to the limitation in subsection (i), a State
20policeman, conservation police officer, investigator for the
21Office of the Attorney General, an investigator for the
22Department of Revenue, or investigator for the Secretary of
23State may elect to establish eligible creditable service for up
24to 5 years of service as a person employed by a participating
25municipality to perform police duties, or law enforcement
26officer employed on a full-time basis by a forest preserve

 

 

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1district under Article 7, a county corrections officer, or a
2court services officer under Article 9, by filing a written
3election with the Board within 6 months after August 25, 2009
4(the effective date of Public Act 96-745) and paying to the
5System an amount to be determined by the Board, equal to (i)
6the difference between the amount of employee and employer
7contributions transferred to the System under Sections 7-139.8
8and 9-121.10 and the amounts that would have been contributed
9had such contributions been made at the rates applicable to
10State policemen, plus (ii) interest thereon at the actuarially
11assumed rate for each year, compounded annually, from the date
12of service to the date of payment.
13    (i) The total amount of eligible creditable service
14established by any person under subsections (g), (h), (j), (k),
15and (l) of this Section shall not exceed 12 years.
16    (j) Subject to the limitation in subsection (i), an
17investigator for the Office of the State's Attorneys Appellate
18Prosecutor or a controlled substance inspector may elect to
19establish eligible creditable service for up to 10 years of his
20service as a policeman under Article 3 or a sheriff's law
21enforcement employee under Article 7, by filing a written
22election with the Board, accompanied by payment of an amount to
23be determined by the Board, equal to (1) the difference between
24the amount of employee and employer contributions transferred
25to the System under Section 3-110.6 or 7-139.8, and the amounts
26that would have been contributed had such contributions been

 

 

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1made at the rates applicable to State policemen, plus (2)
2interest thereon at the effective rate for each year,
3compounded annually, from the date of service to the date of
4payment.
5    (k) Subject to the limitation in subsection (i) of this
6Section, an alternative formula employee may elect to establish
7eligible creditable service for periods spent as a full-time
8law enforcement officer or full-time corrections officer
9employed by the federal government or by a state or local
10government located outside of Illinois, for which credit is not
11held in any other public employee pension fund or retirement
12system. To obtain this credit, the applicant must file a
13written application with the Board by March 31, 1998,
14accompanied by evidence of eligibility acceptable to the Board
15and payment of an amount to be determined by the Board, equal
16to (1) employee contributions for the credit being established,
17based upon the applicant's salary on the first day as an
18alternative formula employee after the employment for which
19credit is being established and the rates then applicable to
20alternative formula employees, plus (2) an amount determined by
21the Board to be the employer's normal cost of the benefits
22accrued for the credit being established, plus (3) regular
23interest on the amounts in items (1) and (2) from the first day
24as an alternative formula employee after the employment for
25which credit is being established to the date of payment.
26    (l) Subject to the limitation in subsection (i), a security

 

 

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1employee of the Department of Corrections may elect, not later
2than July 1, 1998, to establish eligible creditable service for
3up to 10 years of his or her service as a policeman under
4Article 3, by filing a written election with the Board,
5accompanied by payment of an amount to be determined by the
6Board, equal to (i) the difference between the amount of
7employee and employer contributions transferred to the System
8under Section 3-110.5, and the amounts that would have been
9contributed had such contributions been made at the rates
10applicable to security employees of the Department of
11Corrections, plus (ii) interest thereon at the effective rate
12for each year, compounded annually, from the date of service to
13the date of payment.
14    (m) The amendatory changes to this Section made by this
15amendatory Act of the 94th General Assembly apply only to: (1)
16security employees of the Department of Juvenile Justice
17employed by the Department of Corrections before the effective
18date of this amendatory Act of the 94th General Assembly and
19transferred to the Department of Juvenile Justice by this
20amendatory Act of the 94th General Assembly; and (2) persons
21employed by the Department of Juvenile Justice on or after the
22effective date of this amendatory Act of the 94th General
23Assembly who are required by subsection (b) of Section 3-2.5-15
24of the Unified Code of Corrections to have a bachelor's or
25advanced degree from an accredited college or university with a
26specialization in criminal justice, education, psychology,

 

 

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1social work, or a closely related social science or, in the
2case of persons who provide vocational training, who are
3required to have adequate knowledge in the skill for which they
4are providing the vocational training.
5    (n) A person employed in a position under subsection (b) of
6this Section who has purchased service credit under subsection
7(j) of Section 14-104 or subsection (b) of Section 14-105 in
8any other capacity under this Article may convert up to 5 years
9of that service credit into service credit covered under this
10Section by paying to the Fund an amount equal to (1) the
11additional employee contribution required under Section
1214-133, plus (2) the additional employer contribution required
13under Section 14-131, plus (3) interest on items (1) and (2) at
14the actuarially assumed rate from the date of the service to
15the date of payment.
16(Source: P.A. 95-530, eff. 8-28-07; 95-1036, eff. 2-17-09;
1796-37, eff. 7-13-09; 96-745, eff. 8-25-09; 96-1000, eff.
187-2-10.)
 
19    (40 ILCS 5/14-114)  (from Ch. 108 1/2, par. 14-114)
20    Sec. 14-114. Automatic increase in retirement annuity.
21    (a) This subsection (a) is subject to subsections (a-1) and
22(a-2) of this Section. Any person receiving a retirement
23annuity under this Article who retires having attained age 60,
24or who retires before age 60 having at least 35 years of
25creditable service, or who retires on or after January 1, 2001

 

 

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1at an age which, when added to the number of years of his or her
2creditable service, equals at least 85, shall, on January 1
3next following the first full year of retirement, have the
4amount of the then fixed and payable monthly retirement annuity
5increased 3%. Any person receiving a retirement annuity under
6this Article who retires before attainment of age 60 and with
7less than (i) 35 years of creditable service if retirement is
8before January 1, 2001, or (ii) the number of years of
9creditable service which, when added to the member's age, would
10equal 85, if retirement is on or after January 1, 2001, shall
11have the amount of the fixed and payable retirement annuity
12increased by 3% on the January 1 occurring on or next following
13(1) attainment of age 60, or (2) the first anniversary of
14retirement, whichever occurs later. However, for persons who
15receive the alternative retirement annuity under Section
1614-110, references in this subsection (a) to attainment of age
1760 shall be deemed to refer to attainment of age 55. For a
18person receiving early retirement incentives under Section
1914-108.3 whose retirement annuity began after January 1, 1992
20pursuant to an extension granted under subsection (e) of that
21Section, the first anniversary of retirement shall be deemed to
22be January 1, 1993. For a person who retires on or after June
2328, 2001 and on or before October 1, 2001, and whose retirement
24annuity is calculated, in whole or in part, under Section
2514-110 or subsection (g) or (h) of Section 14-108, the first
26anniversary of retirement shall be deemed to be January 1,

 

 

SB0001CCR001- 131 -LRB098 05457 EFG 50220 c

12002.
2    On each January 1 following the date of the initial
3increase under this subsection, the employee's monthly
4retirement annuity shall be increased by an additional 3%.
5    Beginning January 1, 1990, all automatic annual increases
6payable under this Section shall be calculated as a percentage
7of the total annuity payable at the time of the increase,
8including previous increases granted under this Article.
9    (a-1) Notwithstanding subsection (a), but subject to the
10provisions of subsection (a-2), all automatic increases
11payable under subsection (a) on or after the effective date of
12this amendatory Act of the 98th General Assembly shall be
13calculated as 3% of the lesser of (1) the total annuity payable
14at the time of the increase, including previous increases
15granted, or (2) $800 ($1,000 for portions of the annuity based
16on service as a noncovered employee) multiplied by the number
17of years of creditable service upon which the annuity is based.
18    Beginning January 1, 2016, the $800 ($1,000 for portions of
19the annuity based on service as a noncovered employee) referred
20in item (2) of this subsection (a-1) shall be increased on each
21January 1 by the annual unadjusted percentage increase (but not
22less than zero) in the consumer price index-u for the 12 months
23ending with the preceding September; these adjustments shall be
24cumulative and compounded. For the purposes of this subsection
25(a-1), "consumer price index-u" means the index published by
26the Bureau of Labor Statistics of the United States Department

 

 

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1of Labor that measures the average change in prices of goods
2and services purchased by all urban consumers, United States
3city average, all items, 1982-84 = 100. The new dollar amount
4resulting from each annual adjustment shall be determined by
5the Public Pension Division of the Department of Insurance and
6made available to the System by November 1 of each year.
7    This subsection (a-1) is applicable without regard to
8whether the person is in service on or after the effective date
9of this amendatory Act of the 98th General Assembly.
10    (a-2) Notwithstanding subsections (a) and (a-1), for an
11active or inactive Tier 1 member who has not begun to receive a
12retirement annuity under this Article before July 1, 2014:
13        (1) the second automatic annual increase payable under
14    subsection (a) shall be at the rate of 0% of the total
15    annuity payable at the time of the increase if he or she is
16    at least age 50 on the effective date of this amendatory
17    Act;
18        (2) the second, fourth, and sixth automatic annual
19    increases payable under subsection (a) shall be at the rate
20    of 0% of the total annuity payable at the time of the
21    increase if he or she is at least age 47 but less than age
22    50 on the effective date of this amendatory Act;
23        (3) the second, fourth, sixth, and eighth automatic
24    annual increases payable under subsection (a) shall be at
25    the rate of 0% of the total annuity payable at the time of
26    the increase if he or she is at least age 44 but less than

 

 

SB0001CCR001- 133 -LRB098 05457 EFG 50220 c

1    age 47 on the effective date of this amendatory Act; and
2        (4) the second, fourth, sixth, eighth, and tenth
3    automatic annual increases payable under subsection (a)
4    shall be at the rate of 0% of the total annuity payable at
5    the time of the increase if he or she is less than age 44 on
6    the effective date of this amendatory Act.
7    For the purposes of Section 1-103.1, this subsection (a-2)
8is applicable without regard to whether the person is in
9service on or after the effective date of this amendatory Act
10of the 98th General Assembly.
11    (b) The provisions of subsection (a) of this Section shall
12be applicable to an employee only if the employee makes the
13additional contributions required after December 31, 1969 for
14the purpose of the automatic increases for not less than the
15equivalent of one full year. If an employee becomes an
16annuitant before his additional contributions equal one full
17year's contributions based on his salary at the date of
18retirement, the employee may pay the necessary balance of the
19contributions to the system, without interest, and be eligible
20for the increasing annuity authorized by this Section.
21    (c) The provisions of subsection (a) of this Section shall
22not be applicable to any annuitant who is on retirement on
23December 31, 1969, and thereafter returns to State service,
24unless the member has established at least one year of
25additional creditable service following reentry into service.
26    (d) In addition to other increases which may be provided by

 

 

SB0001CCR001- 134 -LRB098 05457 EFG 50220 c

1this Section, on January 1, 1981 any annuitant who was
2receiving a retirement annuity on or before January 1, 1971
3shall have his retirement annuity then being paid increased $1
4per month for each year of creditable service. On January 1,
51982, any annuitant who began receiving a retirement annuity on
6or before January 1, 1977, shall have his retirement annuity
7then being paid increased $1 per month for each year of
8creditable service.
9    On January 1, 1987, any annuitant who began receiving a
10retirement annuity on or before January 1, 1977, shall have the
11monthly retirement annuity increased by an amount equal to 8¢
12per year of creditable service times the number of years that
13have elapsed since the annuity began.
14    (e) Every person who receives the alternative retirement
15annuity under Section 14-110 and who is eligible to receive the
163% increase under subsection (a) on January 1, 1986, shall also
17receive on that date a one-time increase in retirement annuity
18equal to the difference between (1) his actual retirement
19annuity on that date, including any increases received under
20subsection (a), and (2) the amount of retirement annuity he
21would have received on that date if the amendments to
22subsection (a) made by Public Act 84-162 had been in effect
23since the date of his retirement.
24(Source: P.A. 91-927, eff. 12-14-00; 92-14, eff. 6-28-01;
2592-651, eff. 7-11-02.)
 

 

 

SB0001CCR001- 135 -LRB098 05457 EFG 50220 c

1    (40 ILCS 5/14-115)  (from Ch. 108 1/2, par. 14-115)
2    Sec. 14-115. Supplemental Annuity.
3    (a) Each annuitant, who retired at age 55 or over and after
4the completion of at least 15 years of creditable service,
5whose status as an employee terminated before January 1, 1970,
6is entitled to a monthly supplemental annuity effective January
71, 1970, or on January 1 nearest the annuitant's 65th birthday,
8whichever is later. Such supplemental annuity shall be 1-1/2%
9of the monthly retirement annuity, multiplied by the number of
10full years which elapsed from the date of the member's latest
11retirement to the effective date of the supplemental annuity.
12This monthly supplemental annuity shall be increased on each
13January 1 thereafter during the lifetime of the annuitant by
141-1/2% of the monthly retirement annuity disregarding any
15supplemental annuity previously granted. Beginning January 1,
161972, the rate of increase in the supplemental annuity shall be
172%. Beginning January 1, 1979, the rate of increase in the
18supplemental annuity shall be 3%.
19    The supplemental annuity under this subsection is payable
20only if the annuitant pays to the System, in a single sum, an
21amount equal to 1% of his monthly final average compensation
22multiplied by the number of full years of creditable service.
23    (b) Any member who retired with less than 15 years of
24creditable service whose status as an employee terminated
25before January 1, 1970, shall be entitled to an increase of 3%
26of the original monthly retirement allowance, effective

 

 

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1January 1, 1982, or on January 1 nearest the annuitant's 65th
2birthday, whichever is later. On each January 1 thereafter
3during the lifetime of the member, he shall be entitled to an
4additional increase of 3% of the original monthly retirement
5allowance. No qualifying contribution is required for the
6supplemental annuity under this subsection.
7    (c) Beginning January 1, 1990, all automatic annual
8increases payable under this Section shall be calculated as a
9percentage of the total monthly amount of annuity payable at
10the time of the increase, including any supplemental annuity or
11other increase previously granted under this Article.
12    (d) Notwithstanding any other provision of this Section,
13all increases payable under this Section on or after the
14effective date of this amendatory Act of the 98th General
15Assembly shall be calculated as 3% of the lesser of (1) the
16total annuity payable at the time of the increase, including
17previous increases granted, or (2) $800 ($1,000 for portions of
18the annuity based on service as a noncovered employee)
19multiplied by the number of years of creditable service upon
20which the annuity is based.
21    Beginning January 1, 2016, the $800 ($1,000 for portions of
22the annuity based on service as a noncovered employee) referred
23in item (2) of this subsection (d) shall be increased on each
24January 1 by the annual unadjusted percentage increase (but not
25less than zero) in the consumer price index-u for the 12 months
26ending with the preceding September; these adjustments shall be

 

 

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1cumulative and compounded. For the purposes of this subsection
2(d), "consumer price index-u" means the index published by the
3Bureau of Labor Statistics of the United States Department of
4Labor that measures the average change in prices of goods and
5services purchased by all urban consumers, United States city
6average, all items, 1982-84 = 100. The new dollar amount
7resulting from each annual adjustment shall be determined by
8the Public Pension Division of the Department of Insurance and
9made available to the System by November 1 of each year.
10    This subsection (d) is applicable without regard to whether
11the person is in service on or after the effective date of this
12amendatory Act of the 98th General Assembly.
13(Source: P.A. 86-273.)
 
14    (40 ILCS 5/14-131)
15    Sec. 14-131. Contributions by State.
16    (a) The State shall make contributions to the System by
17appropriations of amounts which, together with other employer
18contributions from trust, federal, and other funds, employee
19contributions, investment income, and other income, will be
20sufficient to meet the cost of maintaining and administering
21the System on a 100% 90% funded basis in accordance with
22actuarial recommendations by the end of State fiscal year 2044.
23    For the purposes of this Section and Section 14-135.08,
24references to State contributions refer only to employer
25contributions and do not include employee contributions that

 

 

SB0001CCR001- 138 -LRB098 05457 EFG 50220 c

1are picked up or otherwise paid by the State or a department on
2behalf of the employee.
3    (b) The Board shall determine the total amount of State
4contributions required for each fiscal year on the basis of the
5actuarial tables and other assumptions adopted by the Board,
6using the formula in subsection (e).
7    The Board shall also determine a State contribution rate
8for each fiscal year, expressed as a percentage of payroll,
9based on the total required State contribution for that fiscal
10year (less the amount received by the System from
11appropriations under Section 8.12 of the State Finance Act and
12Section 1 of the State Pension Funds Continuing Appropriation
13Act, if any, for the fiscal year ending on the June 30
14immediately preceding the applicable November 15 certification
15deadline), the estimated payroll (including all forms of
16compensation) for personal services rendered by eligible
17employees, and the recommendations of the actuary.
18    For the purposes of this Section and Section 14.1 of the
19State Finance Act, the term "eligible employees" includes
20employees who participate in the System, persons who may elect
21to participate in the System but have not so elected, persons
22who are serving a qualifying period that is required for
23participation, and annuitants employed by a department as
24described in subdivision (a)(1) or (a)(2) of Section 14-111.
25    (c) Contributions shall be made by the several departments
26for each pay period by warrants drawn by the State Comptroller

 

 

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1against their respective funds or appropriations based upon
2vouchers stating the amount to be so contributed. These amounts
3shall be based on the full rate certified by the Board under
4Section 14-135.08 for that fiscal year. From the effective date
5of this amendatory Act of the 93rd General Assembly through the
6payment of the final payroll from fiscal year 2004
7appropriations, the several departments shall not make
8contributions for the remainder of fiscal year 2004 but shall
9instead make payments as required under subsection (a-1) of
10Section 14.1 of the State Finance Act. The several departments
11shall resume those contributions at the commencement of fiscal
12year 2005.
13    (c-1) Notwithstanding subsection (c) of this Section, for
14fiscal years 2010, 2012, 2013, and 2014 only, contributions by
15the several departments are not required to be made for General
16Revenue Funds payrolls processed by the Comptroller. Payrolls
17paid by the several departments from all other State funds must
18continue to be processed pursuant to subsection (c) of this
19Section.
20    (c-2) For State fiscal years 2010, 2012, 2013, and 2014
21only, on or as soon as possible after the 15th day of each
22month, the Board shall submit vouchers for payment of State
23contributions to the System, in a total monthly amount of
24one-twelfth of the fiscal year General Revenue Fund
25contribution as certified by the System pursuant to Section
2614-135.08 of the Illinois Pension Code.

 

 

SB0001CCR001- 140 -LRB098 05457 EFG 50220 c

1    (d) If an employee is paid from trust funds or federal
2funds, the department or other employer shall pay employer
3contributions from those funds to the System at the certified
4rate, unless the terms of the trust or the federal-State
5agreement preclude the use of the funds for that purpose, in
6which case the required employer contributions shall be paid by
7the State. From the effective date of this amendatory Act of
8the 93rd General Assembly through the payment of the final
9payroll from fiscal year 2004 appropriations, the department or
10other employer shall not pay contributions for the remainder of
11fiscal year 2004 but shall instead make payments as required
12under subsection (a-1) of Section 14.1 of the State Finance
13Act. The department or other employer shall resume payment of
14contributions at the commencement of fiscal year 2005.
15    (e) For State fiscal years 2015 through 2044, the minimum
16contribution to the System to be made by the State for each
17fiscal year shall be an amount determined by the System to be
18equal to the sum of (1) the State's portion of the projected
19normal cost for that fiscal year, plus (2) an amount sufficient
20to bring the total assets of the System up to 100% of the total
21actuarial liabilities of the System by the end of State fiscal
22year 2044. In making these determinations, the required State
23contribution shall be calculated each year as a level
24percentage of payroll over the years remaining to and including
25fiscal year 2044 and shall be determined under the projected
26unit cost method for fiscal year 2015 and under the entry age

 

 

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1normal actuarial cost method for fiscal years 2016 through
22044.
3    For State fiscal years 2012 through 2014 2045, the minimum
4contribution to the System to be made by the State for each
5fiscal year shall be an amount determined by the System to be
6sufficient to bring the total assets of the System up to 90% of
7the total actuarial liabilities of the System by the end of
8State fiscal year 2045. In making these determinations, the
9required State contribution shall be calculated each year as a
10level percentage of payroll over the years remaining to and
11including fiscal year 2045 and shall be determined under the
12projected unit credit actuarial cost method.
13    For State fiscal years 1996 through 2005, the State
14contribution to the System, as a percentage of the applicable
15employee payroll, shall be increased in equal annual increments
16so that by State fiscal year 2011, the State is contributing at
17the rate required under this Section; except that (i) for State
18fiscal year 1998, for all purposes of this Code and any other
19law of this State, the certified percentage of the applicable
20employee payroll shall be 5.052% for employees earning eligible
21creditable service under Section 14-110 and 6.500% for all
22other employees, notwithstanding any contrary certification
23made under Section 14-135.08 before the effective date of this
24amendatory Act of 1997, and (ii) in the following specified
25State fiscal years, the State contribution to the System shall
26not be less than the following indicated percentages of the

 

 

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1applicable employee payroll, even if the indicated percentage
2will produce a State contribution in excess of the amount
3otherwise required under this subsection and subsection (a):
49.8% in FY 1999; 10.0% in FY 2000; 10.2% in FY 2001; 10.4% in FY
52002; 10.6% in FY 2003; and 10.8% in FY 2004.
6    Notwithstanding any other provision of this Article, the
7total required State contribution to the System for State
8fiscal year 2006 is $203,783,900.
9    Notwithstanding any other provision of this Article, the
10total required State contribution to the System for State
11fiscal year 2007 is $344,164,400.
12    For each of State fiscal years 2008 through 2009, the State
13contribution to the System, as a percentage of the applicable
14employee payroll, shall be increased in equal annual increments
15from the required State contribution for State fiscal year
162007, so that by State fiscal year 2011, the State is
17contributing at the rate otherwise required under this Section.
18    Notwithstanding any other provision of this Article, the
19total required State General Revenue Fund contribution for
20State fiscal year 2010 is $723,703,100 and shall be made from
21the proceeds of bonds sold in fiscal year 2010 pursuant to
22Section 7.2 of the General Obligation Bond Act, less (i) the
23pro rata share of bond sale expenses determined by the System's
24share of total bond proceeds, (ii) any amounts received from
25the General Revenue Fund in fiscal year 2010, and (iii) any
26reduction in bond proceeds due to the issuance of discounted

 

 

SB0001CCR001- 143 -LRB098 05457 EFG 50220 c

1bonds, if applicable.
2    Notwithstanding any other provision of this Article, the
3total required State General Revenue Fund contribution for
4State fiscal year 2011 is the amount recertified by the System
5on or before April 1, 2011 pursuant to Section 14-135.08 and
6shall be made from the proceeds of bonds sold in fiscal year
72011 pursuant to Section 7.2 of the General Obligation Bond
8Act, less (i) the pro rata share of bond sale expenses
9determined by the System's share of total bond proceeds, (ii)
10any amounts received from the General Revenue Fund in fiscal
11year 2011, and (iii) any reduction in bond proceeds due to the
12issuance of discounted bonds, if applicable.
13    Beginning in State fiscal year 2045, the minimum State
14contribution for each fiscal year shall be the amount needed to
15maintain the total assets of the System at 100% of the total
16actuarial liabilities of the System.
17    Beginning in State fiscal year 2046, the minimum State
18contribution for each fiscal year shall be the amount needed to
19maintain the total assets of the System at 90% of the total
20actuarial liabilities of the System.
21    Amounts received by the System pursuant to Section 25 of
22the Budget Stabilization Act or Section 8.12 of the State
23Finance Act in any fiscal year do not reduce and do not
24constitute payment of any portion of the minimum State
25contribution required under this Article in that fiscal year.
26Such amounts shall not reduce, and shall not be included in the

 

 

SB0001CCR001- 144 -LRB098 05457 EFG 50220 c

1calculation of, the required State contributions under this
2Article in any future year until the System has reached a
3funding ratio of at least 100% 90%. A reference in this Article
4to the "required State contribution" or any substantially
5similar term does not include or apply to any amounts payable
6to the System under Section 25 of the Budget Stabilization Act.
7    Notwithstanding any other provision of this Section, the
8required State contribution for State fiscal year 2005 and for
9fiscal year 2008 and each fiscal year thereafter through State
10fiscal year 2014, as calculated under this Section and
11certified under Section 14-135.08, shall not exceed an amount
12equal to (i) the amount of the required State contribution that
13would have been calculated under this Section for that fiscal
14year if the System had not received any payments under
15subsection (d) of Section 7.2 of the General Obligation Bond
16Act, minus (ii) the portion of the State's total debt service
17payments for that fiscal year on the bonds issued in fiscal
18year 2003 for the purposes of that Section 7.2, as determined
19and certified by the Comptroller, that is the same as the
20System's portion of the total moneys distributed under
21subsection (d) of Section 7.2 of the General Obligation Bond
22Act. In determining this maximum for State fiscal years 2008
23through 2010, however, the amount referred to in item (i) shall
24be increased, as a percentage of the applicable employee
25payroll, in equal increments calculated from the sum of the
26required State contribution for State fiscal year 2007 plus the

 

 

SB0001CCR001- 145 -LRB098 05457 EFG 50220 c

1applicable portion of the State's total debt service payments
2for fiscal year 2007 on the bonds issued in fiscal year 2003
3for the purposes of Section 7.2 of the General Obligation Bond
4Act, so that, by State fiscal year 2011, the State is
5contributing at the rate otherwise required under this Section.
6    (f) After the submission of all payments for eligible
7employees from personal services line items in fiscal year 2004
8have been made, the Comptroller shall provide to the System a
9certification of the sum of all fiscal year 2004 expenditures
10for personal services that would have been covered by payments
11to the System under this Section if the provisions of this
12amendatory Act of the 93rd General Assembly had not been
13enacted. Upon receipt of the certification, the System shall
14determine the amount due to the System based on the full rate
15certified by the Board under Section 14-135.08 for fiscal year
162004 in order to meet the State's obligation under this
17Section. The System shall compare this amount due to the amount
18received by the System in fiscal year 2004 through payments
19under this Section and under Section 6z-61 of the State Finance
20Act. If the amount due is more than the amount received, the
21difference shall be termed the "Fiscal Year 2004 Shortfall" for
22purposes of this Section, and the Fiscal Year 2004 Shortfall
23shall be satisfied under Section 1.2 of the State Pension Funds
24Continuing Appropriation Act. If the amount due is less than
25the amount received, the difference shall be termed the "Fiscal
26Year 2004 Overpayment" for purposes of this Section, and the

 

 

SB0001CCR001- 146 -LRB098 05457 EFG 50220 c

1Fiscal Year 2004 Overpayment shall be repaid by the System to
2the Pension Contribution Fund as soon as practicable after the
3certification.
4    (g) For purposes of determining the required State
5contribution to the System, the value of the System's assets
6shall be equal to the actuarial value of the System's assets,
7which shall be calculated as follows:
8    As of June 30, 2008, the actuarial value of the System's
9assets shall be equal to the market value of the assets as of
10that date. In determining the actuarial value of the System's
11assets for fiscal years after June 30, 2008, any actuarial
12gains or losses from investment return incurred in a fiscal
13year shall be recognized in equal annual amounts over the
145-year period following that fiscal year.
15    (h) For purposes of determining the required State
16contribution to the System for a particular year, the actuarial
17value of assets shall be assumed to earn a rate of return equal
18to the System's actuarially assumed rate of return.
19    (i) After the submission of all payments for eligible
20employees from personal services line items paid from the
21General Revenue Fund in fiscal year 2010 have been made, the
22Comptroller shall provide to the System a certification of the
23sum of all fiscal year 2010 expenditures for personal services
24that would have been covered by payments to the System under
25this Section if the provisions of this amendatory Act of the
2696th General Assembly had not been enacted. Upon receipt of the

 

 

SB0001CCR001- 147 -LRB098 05457 EFG 50220 c

1certification, the System shall determine the amount due to the
2System based on the full rate certified by the Board under
3Section 14-135.08 for fiscal year 2010 in order to meet the
4State's obligation under this Section. The System shall compare
5this amount due to the amount received by the System in fiscal
6year 2010 through payments under this Section. If the amount
7due is more than the amount received, the difference shall be
8termed the "Fiscal Year 2010 Shortfall" for purposes of this
9Section, and the Fiscal Year 2010 Shortfall shall be satisfied
10under Section 1.2 of the State Pension Funds Continuing
11Appropriation Act. If the amount due is less than the amount
12received, the difference shall be termed the "Fiscal Year 2010
13Overpayment" for purposes of this Section, and the Fiscal Year
142010 Overpayment shall be repaid by the System to the General
15Revenue Fund as soon as practicable after the certification.
16    (j) After the submission of all payments for eligible
17employees from personal services line items paid from the
18General Revenue Fund in fiscal year 2011 have been made, the
19Comptroller shall provide to the System a certification of the
20sum of all fiscal year 2011 expenditures for personal services
21that would have been covered by payments to the System under
22this Section if the provisions of this amendatory Act of the
2396th General Assembly had not been enacted. Upon receipt of the
24certification, the System shall determine the amount due to the
25System based on the full rate certified by the Board under
26Section 14-135.08 for fiscal year 2011 in order to meet the

 

 

SB0001CCR001- 148 -LRB098 05457 EFG 50220 c

1State's obligation under this Section. The System shall compare
2this amount due to the amount received by the System in fiscal
3year 2011 through payments under this Section. If the amount
4due is more than the amount received, the difference shall be
5termed the "Fiscal Year 2011 Shortfall" for purposes of this
6Section, and the Fiscal Year 2011 Shortfall shall be satisfied
7under Section 1.2 of the State Pension Funds Continuing
8Appropriation Act. If the amount due is less than the amount
9received, the difference shall be termed the "Fiscal Year 2011
10Overpayment" for purposes of this Section, and the Fiscal Year
112011 Overpayment shall be repaid by the System to the General
12Revenue Fund as soon as practicable after the certification.
13    (k) For fiscal years 2012 through 2014 only, after the
14submission of all payments for eligible employees from personal
15services line items paid from the General Revenue Fund in the
16fiscal year have been made, the Comptroller shall provide to
17the System a certification of the sum of all expenditures in
18the fiscal year for personal services. Upon receipt of the
19certification, the System shall determine the amount due to the
20System based on the full rate certified by the Board under
21Section 14-135.08 for the fiscal year in order to meet the
22State's obligation under this Section. The System shall compare
23this amount due to the amount received by the System for the
24fiscal year. If the amount due is more than the amount
25received, the difference shall be termed the "Prior Fiscal Year
26Shortfall" for purposes of this Section, and the Prior Fiscal

 

 

SB0001CCR001- 149 -LRB098 05457 EFG 50220 c

1Year Shortfall shall be satisfied under Section 1.2 of the
2State Pension Funds Continuing Appropriation Act. If the amount
3due is less than the amount received, the difference shall be
4termed the "Prior Fiscal Year Overpayment" for purposes of this
5Section, and the Prior Fiscal Year Overpayment shall be repaid
6by the System to the General Revenue Fund as soon as
7practicable after the certification.
8(Source: P.A. 97-72, eff. 7-1-11; 97-732, eff. 6-30-12; 98-24,
9eff. 6-19-13.)
 
10    (40 ILCS 5/14-132)  (from Ch. 108 1/2, par. 14-132)
11    Sec. 14-132. Obligations of State; funding guarantee.
12    (a) The payment of the required department contributions,
13all allowances, annuities, benefits granted under this
14Article, and all expenses of administration of the system are
15obligations of the State of Illinois to the extent specified in
16this Article.
17    (b) All income of the system shall be credited to a
18separate account for this system in the State treasury and
19shall be used to pay allowances, annuities, benefits and
20administration expense.
21    (c) Beginning July 1, 2014, the State shall be obligated to
22contribute to the System in each State fiscal year an amount
23not less than the sum of (i) the State's normal cost for the
24year and (ii) the portion of the unfunded accrued liability
25assigned to that year by law. Notwithstanding any other

 

 

SB0001CCR001- 150 -LRB098 05457 EFG 50220 c

1provision of law, if the State fails to pay an amount required
2under this subsection, it shall be the obligation of the Board
3to seek payment of the required amount in compliance with the
4provisions of this Section and, if the amount remains unpaid,
5to bring a mandamus action in the Supreme Court of Illinois to
6compel the State to make the required payment.
7    If the System submits a voucher for contributions required
8under Section 14-131 and the State fails to pay that voucher
9within 90 days of its receipt, the Board shall submit a written
10request to the Comptroller seeking payment. A copy of the
11request shall be filed with the Secretary of State, and the
12Secretary of State shall provide a copy to the Governor and
13General Assembly. No earlier than the 16th day after the System
14files the request with the Comptroller and Secretary of State,
15if the amount remains unpaid the Board shall commence a
16mandamus action in the Supreme Court of Illinois to compel the
17Comptroller to satisfy the voucher.
18    This subsection (c) constitutes an express waiver of the
19State's sovereign immunity solely to the extent that it permits
20the Board to commence a mandamus action in the Supreme Court of
21Illinois to compel the Comptroller to pay a voucher for the
22contributions required under Section 14-131.
23    (d) Beginning in State fiscal year 2016, the State shall be
24obligated to make the transfers set forth in subsections (c-5)
25and (c-10) of Section 20 of the Budget Stabilization Act and to
26pay to the System its proportionate share of the transferred

 

 

SB0001CCR001- 151 -LRB098 05457 EFG 50220 c

1amounts in accordance with Section 25 of the Budget
2Stabilization Act. Notwithstanding any other provision of law,
3if the State fails to transfer an amount required under this
4subsection or to pay to the System its proportionate share of
5the transferred amount in accordance with Section 25 of the
6Budget Stabilization Act, it shall be the obligation of the
7Board to seek transfer or payment of the required amount in
8compliance with the provisions of this Section and, if the
9required amount remains untransferred or the required payment
10remains unpaid, to bring a mandamus action in the Supreme Court
11of Illinois to compel the State to make the required transfer
12or payment or both, as the case may be.
13    If the State fails to make a transfer required under
14subsection (c-5) or (c-10) of Section 20 of the Budget
15Stabilization Act or a payment to the System required under
16Section 25 of that Act, the Board shall submit a written
17request to the Comptroller seeking payment. A copy of the
18request shall be filed with the Secretary of State, and the
19Secretary of State shall provide a copy to the Governor and
20General Assembly. No earlier than the 16th day after the System
21files the request with the Comptroller and Secretary of State,
22if the required amount remains untransferred or the required
23payment remains unpaid, the Board shall commence a mandamus
24action in the Supreme Court of Illinois to compel the
25Comptroller to make the required transfer or payment or both,
26as the case may be.

 

 

SB0001CCR001- 152 -LRB098 05457 EFG 50220 c

1    This subsection (d) constitutes an express waiver of the
2State's sovereign immunity solely to the extent that it permits
3the Board to commence a mandamus action in the Supreme Court of
4Illinois to compel the Comptroller to make a transfer required
5under subsection (c-5) or (c-10) of Section 20 of the Budget
6Stabilization Act and to pay to the System its proportionate
7share of the transferred amount in accordance with Section 25
8of the Budget Stabilization Act.
9    The obligations created by this subsection (d) expire when
10all of the requirements of subsections (c-5) and (c-10) of
11Section 20 of the Budget Stabilization Act and Section 25 of
12the Budget Stabilization Act have been met.
13    (e) Any payments and transfers required to be made by the
14State pursuant to subsection (c) or (d) are expressly
15subordinate to the payment of the principal, interest, and
16premium, if any, on any bonded debt obligation of the State or
17any other State-created entity, either currently outstanding
18or to be issued, for which the source of repayment or security
19thereon is derived directly or indirectly from tax revenues
20collected by the State or any other State-created entity.
21Payments on such bonded obligations include any statutory fund
22transfers or other prefunding mechanisms or formulas set forth,
23now or hereafter, in State law or bond indentures, into debt
24service funds or accounts of the State related to such bond
25obligations, consistent with the payment schedules associated
26with such obligations.

 

 

SB0001CCR001- 153 -LRB098 05457 EFG 50220 c

1(Source: P.A. 80-841.)
 
2    (40 ILCS 5/14-133)  (from Ch. 108 1/2, par. 14-133)
3    Sec. 14-133. Contributions on behalf of members.
4    (a) Except as provided in subsection (a-5), each Each
5participating employee shall make contributions to the System,
6based on the employee's compensation, as follows:
7        (1) Covered employees, except as indicated below, 3.5%
8    for retirement annuity, and 0.5% for a widow or survivors
9    annuity;
10        (2) Noncovered employees, except as indicated below,
11    7% for retirement annuity and 1% for a widow or survivors
12    annuity;
13        (3) Noncovered employees serving in a position in which
14    "eligible creditable service" as defined in Section 14-110
15    may be earned, 1% for a widow or survivors annuity plus the
16    following amount for retirement annuity: 8.5% through
17    December 31, 2001; 9.5% in 2002; 10.5% in 2003; and 11.5%
18    in 2004 and thereafter;
19        (4) Covered employees serving in a position in which
20    "eligible creditable service" as defined in Section 14-110
21    may be earned, 0.5% for a widow or survivors annuity plus
22    the following amount for retirement annuity: 5% through
23    December 31, 2001; 6% in 2002; 7% in 2003; and 8% in 2004
24    and thereafter;
25        (5) Each security employee of the Department of

 

 

SB0001CCR001- 154 -LRB098 05457 EFG 50220 c

1    Corrections or of the Department of Human Services who is a
2    covered employee, 0.5% for a widow or survivors annuity
3    plus the following amount for retirement annuity: 5%
4    through December 31, 2001; 6% in 2002; 7% in 2003; and 8%
5    in 2004 and thereafter;
6        (6) Each security employee of the Department of
7    Corrections or of the Department of Human Services who is
8    not a covered employee, 1% for a widow or survivors annuity
9    plus the following amount for retirement annuity: 8.5%
10    through December 31, 2001; 9.5% in 2002; 10.5% in 2003; and
11    11.5% in 2004 and thereafter.
12    (a-5) Beginning July 1, 2014, in lieu of the contributions
13otherwise required under subsection (a), each Tier 1 member who
14is a participating employee shall make contributions to the
15System, based on his or her compensation, as follows:
16        (1) Covered employees, except as indicated below, 2.5%
17    for retirement annuity, and 0.5% for a widow or survivors
18    annuity;
19        (2) Noncovered employees, except as indicated below,
20    6% for retirement annuity and 1% for a widow or survivors
21    annuity;
22        (3) Noncovered employees serving in a position in which
23    "eligible creditable service" as defined in Section 14-110
24    may be earned, 10.5% for retirement annuity and 1% for a
25    widow or survivors annuity;
26        (4) Covered employees serving in a position in which

 

 

SB0001CCR001- 155 -LRB098 05457 EFG 50220 c

1    "eligible creditable service" as defined in Section 14-110
2    may be earned, 7% for retirement annuity and 0.5% for a
3    widow or survivors annuity;
4        (5) Each security employee of the Department of
5    Corrections or of the Department of Human Services who is a
6    covered employee, 7% for retirement annuity and 0.5% for a
7    widow or survivors annuity;
8        (6) Each security employee of the Department of
9    Corrections or of the Department of Human Services who is
10    not a covered employee, 10.5% for retirement annuity and 1%
11    for a widow or survivors annuity.
12    (b) Contributions shall be in the form of a deduction from
13compensation and shall be made notwithstanding that the
14compensation paid in cash to the employee shall be reduced
15thereby below the minimum prescribed by law or regulation. Each
16member is deemed to consent and agree to the deductions from
17compensation provided for in this Article, and shall receipt in
18full for salary or compensation.
19(Source: P.A. 92-14, eff. 6-28-01.)
 
20    (40 ILCS 5/14-133.5 new)
21    Sec. 14-133.5. Use of contributions for health care
22subsidies. The System shall not use any contribution received
23by the System under this Article to provide a subsidy for the
24cost of participation in a retiree health care program.
 

 

 

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1    (40 ILCS 5/14-135.08)  (from Ch. 108 1/2, par. 14-135.08)
2    Sec. 14-135.08. To certify required State contributions.
3    (a) To certify to the Governor and to each department, on
4or before November 15 of each year until November 15, 2011, the
5required rate for State contributions to the System for the
6next State fiscal year, as determined under subsection (b) of
7Section 14-131. The certification to the Governor under this
8subsection (a) shall include a copy of the actuarial
9recommendations upon which the rate is based and shall
10specifically identify the System's projected State normal cost
11for that fiscal year.
12    (a-5) On or before November 1 of each year, beginning
13November 1, 2012, the Board shall submit to the State Actuary,
14the Governor, and the General Assembly a proposed certification
15of the amount of the required State contribution to the System
16for the next fiscal year, along with all of the actuarial
17assumptions, calculations, and data upon which that proposed
18certification is based. On or before January 1 of each year
19beginning January 1, 2013, the State Actuary shall issue a
20preliminary report concerning the proposed certification and
21identifying, if necessary, recommended changes in actuarial
22assumptions that the Board must consider before finalizing its
23certification of the required State contributions. On or before
24January 15, 2013 and each January 15 thereafter, the Board
25shall certify to the Governor and the General Assembly the
26amount of the required State contribution for the next fiscal

 

 

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1year. The Board's certification must note any deviations from
2the State Actuary's recommended changes, the reason or reasons
3for not following the State Actuary's recommended changes, and
4the fiscal impact of not following the State Actuary's
5recommended changes on the required State contribution.
6    (a-10) For purposes of Section (c-5) of Section 20 of the
7Budget Stabilization Act, on or before November 1 of each year
8beginning November 1, 2014, the Board shall determine the
9amount of the State contribution to the System that would have
10been required for the next fiscal year if this amendatory Act
11of the 98th General Assembly had not taken effect, using the
12best and most recent available data but based on the law in
13effect on May 31, 2014. The Board shall submit to the State
14Actuary, the Governor, and the General Assembly a proposed
15certification, along with the relevant law, actuarial
16assumptions, calculations, and data upon which that
17certification is based. On or before January 1, 2015 and every
18January 1 thereafter, the State Actuary shall issue a
19preliminary report concerning the proposed certification and
20identifying, if necessary, recommended changes in actuarial
21assumptions that the Board must consider before finalizing its
22certification. On or before January 15, 2015 and every January
231 thereafter, the Board shall certify to the Governor and the
24General Assembly the amount of the State contribution to the
25System that would have been required for the next fiscal year
26if this amendatory Act of the 98th General Assembly had not

 

 

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1taken effect, using the best and most recent available data but
2based on the law in effect on May 31, 2014. The Board's
3certification must note any deviations from the State Actuary's
4recommended changes, the reason or reasons for not following
5the State Actuary's recommended changes, and the impact of not
6following the State Actuary's recommended changes.
7    (b) The certifications under subsections (a) and (a-5)
8shall include an additional amount necessary to pay all
9principal of and interest on those general obligation bonds due
10the next fiscal year authorized by Section 7.2(a) of the
11General Obligation Bond Act and issued to provide the proceeds
12deposited by the State with the System in July 2003,
13representing deposits other than amounts reserved under
14Section 7.2(c) of the General Obligation Bond Act. For State
15fiscal year 2005, the Board shall make a supplemental
16certification of the additional amount necessary to pay all
17principal of and interest on those general obligation bonds due
18in State fiscal years 2004 and 2005 authorized by Section
197.2(a) of the General Obligation Bond Act and issued to provide
20the proceeds deposited by the State with the System in July
212003, representing deposits other than amounts reserved under
22Section 7.2(c) of the General Obligation Bond Act, as soon as
23practical after the effective date of this amendatory Act of
24the 93rd General Assembly.
25    On or before May 1, 2004, the Board shall recalculate and
26recertify to the Governor and to each department the amount of

 

 

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1the required State contribution to the System and the required
2rates for State contributions to the System for State fiscal
3year 2005, taking into account the amounts appropriated to and
4received by the System under subsection (d) of Section 7.2 of
5the General Obligation Bond Act.
6    On or before July 1, 2005, the Board shall recalculate and
7recertify to the Governor and to each department the amount of
8the required State contribution to the System and the required
9rates for State contributions to the System for State fiscal
10year 2006, taking into account the changes in required State
11contributions made by this amendatory Act of the 94th General
12Assembly.
13    On or before April 1, 2011, the Board shall recalculate and
14recertify to the Governor and to each department the amount of
15the required State contribution to the System for State fiscal
16year 2011, applying the changes made by Public Act 96-889 to
17the System's assets and liabilities as of June 30, 2009 as
18though Public Act 96-889 was approved on that date.
19(Source: P.A. 96-1497, eff. 1-14-11; 96-1511, eff. 1-27-11;
2097-694, eff. 6-18-12.)
 
21    (40 ILCS 5/14-152.1)
22    Sec. 14-152.1. Application and expiration of new benefit
23increases.
24    (a) As used in this Section, "new benefit increase" means
25an increase in the amount of any benefit provided under this

 

 

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1Article, or an expansion of the conditions of eligibility for
2any benefit under this Article, that results from an amendment
3to this Code that takes effect after June 1, 2005 (the
4effective date of Public Act 94-4). "New benefit increase",
5however, does not include any benefit increase resulting from
6the changes made to this Article by Public Act 96-37 or by this
7amendatory Act of the 98th 96th General Assembly.
8    (b) Notwithstanding any other provision of this Code or any
9subsequent amendment to this Code, every new benefit increase
10is subject to this Section and shall be deemed to be granted
11only in conformance with and contingent upon compliance with
12the provisions of this Section.
13    (c) The Public Act enacting a new benefit increase must
14identify and provide for payment to the System of additional
15funding at least sufficient to fund the resulting annual
16increase in cost to the System as it accrues.
17    Every new benefit increase is contingent upon the General
18Assembly providing the additional funding required under this
19subsection. The Commission on Government Forecasting and
20Accountability shall analyze whether adequate additional
21funding has been provided for the new benefit increase and
22shall report its analysis to the Public Pension Division of the
23Department of Insurance Financial and Professional Regulation.
24A new benefit increase created by a Public Act that does not
25include the additional funding required under this subsection
26is null and void. If the Public Pension Division determines

 

 

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1that the additional funding provided for a new benefit increase
2under this subsection is or has become inadequate, it may so
3certify to the Governor and the State Comptroller and, in the
4absence of corrective action by the General Assembly, the new
5benefit increase shall expire at the end of the fiscal year in
6which the certification is made.
7    (d) Every new benefit increase shall expire 5 years after
8its effective date or on such earlier date as may be specified
9in the language enacting the new benefit increase or provided
10under subsection (c). This does not prevent the General
11Assembly from extending or re-creating a new benefit increase
12by law.
13    (e) Except as otherwise provided in the language creating
14the new benefit increase, a new benefit increase that expires
15under this Section continues to apply to persons who applied
16and qualified for the affected benefit while the new benefit
17increase was in effect and to the affected beneficiaries and
18alternate payees of such persons, but does not apply to any
19other person, including without limitation a person who
20continues in service after the expiration date and did not
21apply and qualify for the affected benefit while the new
22benefit increase was in effect.
23(Source: P.A. 96-37, eff. 7-13-09.)
 
24    (40 ILCS 5/14-155 new)
25    Sec. 14-155. Defined contribution plan.

 

 

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1    (a) By July 1, 2015, the System shall prepare and implement
2a voluntary defined contribution plan for up to 5% of eligible
3active Tier 1 members. The System shall determine the 5% cap by
4the number of active Tier 1 members on the effective date of
5this Section. The defined contribution plan developed under
6this Section shall be a plan that aggregates employer and
7employee contributions in individual participant accounts
8which, after meeting any other requirements, are used for
9payouts after retirement in accordance with this Section and
10any other applicable laws.
11    As used in this Section, "defined benefit plan" means the
12retirement plan available under this Article to Tier 1 members
13who have not made the election authorized under this Section.
14        (1) Under the defined contribution plan, an active Tier
15    1 member of this System could elect to cease accruing
16    benefits in the defined benefit plan under this Article and
17    begin accruing benefits for future service in the defined
18    contribution plan. Service credit under the defined
19    contribution plan may be used for determining retirement
20    eligibility under the defined benefit plan.
21        (2) Participants in the defined contribution plan
22    shall pay employee contributions at the same rate as Tier 1
23    members in this System who do not participate in the
24    defined contribution plan.
25        (3) State contributions shall be paid into the accounts
26    of all participants in the defined contribution plan at a

 

 

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1    uniform rate, expressed as a percentage of compensation and
2    determined for each year. This rate shall be no higher than
3    the employer's normal cost for Tier 1 members in the
4    defined benefit plan for that year, as determined by the
5    System and expressed as a percentage of compensation, and
6    shall be no lower than 3% of compensation. The State shall
7    adjust this rate annually.
8        (4) The defined contribution plan shall require 5 years
9    of participation in the defined contribution plan before
10    vesting in State contributions. If the participant fails to
11    vest in them, the State contributions, and the earnings
12    thereon, shall be forfeited.
13        (5) The defined contribution plan may provide for
14    participants in the plan to be eligible for the defined
15    disability benefits available to other participants under
16    this Article. If it does, the System shall reduce the
17    employee contributions credited to the member's defined
18    contribution plan account by an amount determined by the
19    System to cover the cost of offering such benefits.
20        (6) The defined contribution plan shall provide a
21    variety of options for investments. These options shall
22    include investments handled by the Illinois State Board of
23    Investment as well as private sector investment options.
24        (7) The defined contribution plan shall provide a
25    variety of options for payouts to retirees and their
26    survivors.

 

 

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1        (8) To the extent authorized under federal law and as
2    authorized by the System, the plan shall allow former
3    participants in the plan to transfer or roll over employee
4    and vested State contributions, and the earnings thereon,
5    into other qualified retirement plans.
6        (9) The System shall reduce the employee contributions
7    credited to the member's defined contribution plan account
8    by an amount determined by the System to cover the cost of
9    offering these benefits and any applicable administrative
10    fees.
11    (b) Only persons who are active Tier 1 members of the
12System on the effective date of this Section are eligible to
13participate in the defined contribution plan. Participation in
14the defined contribution plan shall be limited to the first 5%
15of eligible persons who elect to participate. The election to
16participate in the defined contribution plan is voluntary and
17irrevocable.
18    (c) An eligible Tier 1 employee may irrevocably elect to
19participate in the defined contribution plan by filing with the
20System a written application to participate that is received by
21the System prior to its determination that 5% of eligible
22persons have elected to participate in the defined contribution
23plan.
24    When the System first determines that 5% of eligible
25persons have elected to participate in the defined contribution
26plan, the System shall provide notice to previously eligible

 

 

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1employees that the plan is no longer available and shall cease
2accepting applications to participate.
3    (d) The System shall make a good faith effort to contact
4each active Tier 1 member who is eligible to participate in the
5defined contribution plan. The System shall mail information
6describing the option to join the defined contribution plan to
7each of these employees to his or her last known address on
8file with the System. If the employee is not responsive to
9other means of contact, it is sufficient for the System to
10publish the details of the option on its website.
11    Upon request for further information describing the
12option, the System shall provide employees with information
13from the System before exercising the option to join the plan,
14including information on the impact to their vested benefits or
15non-vested service. The individual consultation shall include
16projections of the member's defined benefits at retirement or
17earlier termination of service and the value of the member's
18account at retirement or earlier termination of service. The
19System shall not provide advice or counseling with respect to
20whether the employee should exercise the option. The System
21shall inform Tier 1 employees who are eligible to participate
22in the defined contribution plan that they may also wish to
23obtain information and counsel relating to their option from
24any other available source, including but not limited to labor
25organizations, private counsel, and financial advisors.
26    (e) In no event shall the System, its staff, its authorized

 

 

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1representatives, or the Board be liable for any information
2given to an employee under this Section. The System may
3coordinate with the Illinois Department of Central Management
4Services and other retirement systems administering a defined
5contribution plan in accordance with this amendatory Act of the
698th General Assembly to provide information concerning the
7impact of the option set forth in this Section.
8    (f) Notwithstanding any other provision of this Section, no
9person shall begin participating in the defined contribution
10plan until it has attained qualified plan status and received
11all necessary approvals from the U.S. Internal Revenue Service.
12    (g) The System shall report on its progress under this
13Section, including the available details of the defined
14contribution plan and the System's plans for informing eligible
15Tier 1 members about the plan, to the Governor and the General
16Assembly on or before January 15, 2015.
17    (h) The Illinois State Board of Investments shall be the
18plan sponsor for the defined contribution plan established
19under this Section.
20    (i) The intent of this amendatory Act of the 98th General
21Assembly is to ensure that the State's normal cost of
22participation in the defined contribution plan is similar, and
23if possible equal, to the State's normal cost of participation
24in the defined benefit plan, unless a lower State's normal cost
25is necessary to ensure cost neutrality.
 

 

 

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1    (40 ILCS 5/14-156 new)
2    Sec. 14-156. Defined contribution plan; termination. If
3the defined contribution plan is terminated or becomes
4inoperative pursuant to law, then each participant in the plan
5shall automatically be deemed to have been a contributing Tier
61 member in the System's defined benefit plan during the time
7in which he or she participated in the defined contribution
8plan, and for that purpose the System shall be entitled to
9recover the amounts in the participant's defined contribution
10accounts.
 
11    (40 ILCS 5/15-106)  (from Ch. 108 1/2, par. 15-106)
12    Sec. 15-106. Employer. "Employer": The University of
13Illinois, Southern Illinois University, Chicago State
14University, Eastern Illinois University, Governors State
15University, Illinois State University, Northeastern Illinois
16University, Northern Illinois University, Western Illinois
17University, the State Board of Higher Education, the Illinois
18Mathematics and Science Academy, the University Civil Service
19Merit Board, the Board of Trustees of the State Universities
20Retirement System, the Illinois Community College Board,
21community college boards, any association of community college
22boards organized under Section 3-55 of the Public Community
23College Act, the Board of Examiners established under the
24Illinois Public Accounting Act, and, only during the period for
25which employer contributions required under Section 15-155 are

 

 

SB0001CCR001- 168 -LRB098 05457 EFG 50220 c

1paid, the following organizations: the alumni associations,
2the foundations and the athletic associations which are
3affiliated with the universities and colleges included in this
4Section as employers. An individual that begins employment
5after the effective date of this amendatory Act of the 98th
6General Assembly with an entity not defined as an employer in
7this Section shall not be deemed an employee for the purposes
8of this Article with respect to that employment and shall not
9be eligible to participate in the System with respect to that
10employment; provided, however, that those individuals who are
11both employed and already participants in the System on the
12effective date of this amendatory Act of the 98th General
13Assembly shall be allowed to continue as participants in the
14System for the duration of that employment and continue to earn
15service credit.
16    Notwithstanding any provision of law to the contrary, an
17individual who begins employment with any of the following
18employers on or after the effective date of this amendatory Act
19of the 98th General Assembly shall not be deemed an employee
20and shall not be eligible to participate in the System with
21respect to that employment: any association of community
22college boards organized under Section 3-55 of the Public
23Community College Act, the Association of Illinois
24Middle-Grade Schools, the Illinois Association of School
25Administrators, the Illinois Association for Supervision and
26Curriculum Development, the Illinois Principals Association,

 

 

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1the Illinois Association of School Business Officials, or the
2Illinois Special Olympics; provided, however, that those
3individuals who are both employed and already participants in
4the System on the effective date of this amendatory Act of the
598th General Assembly shall be allowed to continue as
6participants in the System for the duration of that employment
7and continue to earn service credit.
8    A department as defined in Section 14-103.04 is an employer
9for any person appointed by the Governor under the Civil
10Administrative Code of Illinois who is a participating employee
11as defined in Section 15-109. The Department of Central
12Management Services is an employer with respect to persons
13employed by the State Board of Higher Education in positions
14with the Illinois Century Network as of June 30, 2004 who
15remain continuously employed after that date by the Department
16of Central Management Services in positions with the Illinois
17Century Network, the Bureau of Communication and Computer
18Services, or, if applicable, any successor bureau.
19    The cities of Champaign and Urbana shall be considered
20employers, but only during the period for which contributions
21are required to be made under subsection (b-1) of Section
2215-155 and only with respect to individuals described in
23subsection (h) of Section 15-107.
24(Source: P.A. 95-369, eff. 8-23-07; 95-728, eff. 7-1-08 - See
25Sec. 999.)
 

 

 

SB0001CCR001- 170 -LRB098 05457 EFG 50220 c

1    (40 ILCS 5/15-107)  (from Ch. 108 1/2, par. 15-107)
2    Sec. 15-107. Employee.
3    (a) "Employee" means any member of the educational,
4administrative, secretarial, clerical, mechanical, labor or
5other staff of an employer whose employment is permanent and
6continuous or who is employed in a position in which services
7are expected to be rendered on a continuous basis for at least
84 months or one academic term, whichever is less, who (A)
9receives payment for personal services on a warrant issued
10pursuant to a payroll voucher certified by an employer and
11drawn by the State Comptroller upon the State Treasurer or by
12an employer upon trust, federal or other funds, or (B) is on a
13leave of absence without pay. Employment which is irregular,
14intermittent or temporary shall not be considered continuous
15for purposes of this paragraph.
16    However, a person is not an "employee" if he or she:
17        (1) is a student enrolled in and regularly attending
18    classes in a college or university which is an employer,
19    and is employed on a temporary basis at less than full
20    time;
21        (2) is currently receiving a retirement annuity or a
22    disability retirement annuity under Section 15-153.2 from
23    this System;
24        (3) is on a military leave of absence;
25        (4) is eligible to participate in the Federal Civil
26    Service Retirement System and is currently making

 

 

SB0001CCR001- 171 -LRB098 05457 EFG 50220 c

1    contributions to that system based upon earnings paid by an
2    employer;
3        (5) is on leave of absence without pay for more than 60
4    days immediately following termination of disability
5    benefits under this Article;
6        (6) is hired after June 30, 1979 as a public service
7    employment program participant under the Federal
8    Comprehensive Employment and Training Act and receives
9    earnings in whole or in part from funds provided under that
10    Act; or
11        (7) is employed on or after July 1, 1991 to perform
12    services that are excluded by subdivision (a)(7)(f) or
13    (a)(19) of Section 210 of the federal Social Security Act
14    from the definition of employment given in that Section (42
15    U.S.C. 410).
16    (b) Any employer may, by filing a written notice with the
17board, exclude from the definition of "employee" all persons
18employed pursuant to a federally funded contract entered into
19after July 1, 1982 with a federal military department in a
20program providing training in military courses to federal
21military personnel on a military site owned by the United
22States Government, if this exclusion is not prohibited by the
23federally funded contract or federal laws or rules governing
24the administration of the contract.
25    (c) Any person appointed by the Governor under the Civil
26Administrative Code of the State is an employee, if he or she

 

 

SB0001CCR001- 172 -LRB098 05457 EFG 50220 c

1is a participant in this system on the effective date of the
2appointment.
3    (d) A participant on lay-off status under civil service
4rules is considered an employee for not more than 120 days from
5the date of the lay-off.
6    (e) A participant is considered an employee during (1) the
7first 60 days of disability leave, (2) the period, not to
8exceed one year, in which his or her eligibility for disability
9benefits is being considered by the board or reviewed by the
10courts, and (3) the period he or she receives disability
11benefits under the provisions of Section 15-152, workers'
12compensation or occupational disease benefits, or disability
13income under an insurance contract financed wholly or partially
14by the employer.
15    (f) Absences without pay, other than formal leaves of
16absence, of less than 30 calendar days, are not considered as
17an interruption of a person's status as an employee. If such
18absences during any period of 12 months exceed 30 work days,
19the employee status of the person is considered as interrupted
20as of the 31st work day.
21    (g) A staff member whose employment contract requires
22services during an academic term is to be considered an
23employee during the summer and other vacation periods, unless
24he or she declines an employment contract for the succeeding
25academic term or his or her employment status is otherwise
26terminated, and he or she receives no earnings during these

 

 

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1periods.
2    (h) An individual who was a participating employee employed
3in the fire department of the University of Illinois's
4Champaign-Urbana campus immediately prior to the elimination
5of that fire department and who immediately after the
6elimination of that fire department became employed by the fire
7department of the City of Urbana or the City of Champaign shall
8continue to be considered as an employee for purposes of this
9Article for so long as the individual remains employed as a
10firefighter by the City of Urbana or the City of Champaign. The
11individual shall cease to be considered an employee under this
12subsection (h) upon the first termination of the individual's
13employment as a firefighter by the City of Urbana or the City
14of Champaign.
15    (i) An individual who is employed on a full-time basis as
16an officer or employee of a statewide teacher organization that
17serves System participants or an officer of a national teacher
18organization that serves System participants may participate
19in the System and shall be deemed an employee, provided that
20(1) the individual has previously earned creditable service
21under this Article, (2) the individual files with the System an
22irrevocable election to become a participant before the
23effective date of this amendatory Act of the 97th General
24Assembly, (3) the individual does not receive credit for that
25employment under any other Article of this Code, and (4) the
26individual first became a full-time employee of the teacher

 

 

SB0001CCR001- 174 -LRB098 05457 EFG 50220 c

1organization and becomes a participant before the effective
2date of this amendatory Act of the 97th General Assembly. An
3employee under this subsection (i) is responsible for paying to
4the System both (A) employee contributions based on the actual
5compensation received for service with the teacher
6organization and (B) employer contributions equal to the normal
7costs (as defined in Section 15-155) resulting from that
8service; all or any part of these contributions may be paid on
9the employee's behalf or picked up for tax purposes (if
10authorized under federal law) by the teacher organization.
11    A person who is an employee as defined in this subsection
12(i) may establish service credit for similar employment prior
13to becoming an employee under this subsection by paying to the
14System for that employment the contributions specified in this
15subsection, plus interest at the effective rate from the date
16of service to the date of payment. However, credit shall not be
17granted under this subsection for any such prior employment for
18which the applicant received credit under any other provision
19of this Code, or during which the applicant was on a leave of
20absence under Section 15-113.2.
21    (j) A person employed by the State Board of Higher
22Education in a position with the Illinois Century Network as of
23June 30, 2004 shall be considered to be an employee for so long
24as he or she remains continuously employed after that date by
25the Department of Central Management Services in a position
26with the Illinois Century Network, the Bureau of Communication

 

 

SB0001CCR001- 175 -LRB098 05457 EFG 50220 c

1and Computer Services, or, if applicable, any successor bureau
2and meets the requirements of subsection (a).
3    (k) In the case of doubt as to whether any person is an
4employee within the meaning of this Section, the decision of
5the Board shall be final.
6(Source: P.A. 97-651, eff. 1-5-12.)
 
7    (40 ILCS 5/15-111)  (from Ch. 108 1/2, par. 15-111)
8    Sec. 15-111. Earnings.
9    (a) "Earnings": An amount paid for personal services equal
10to the sum of the basic compensation plus extra compensation
11for summer teaching, overtime or other extra service. For
12periods for which an employee receives service credit under
13subsection (c) of Section 15-113.1 or Section 15-113.2,
14earnings are equal to the basic compensation on which
15contributions are paid by the employee during such periods.
16Compensation for employment which is irregular, intermittent
17and temporary shall not be considered earnings, unless the
18participant is also receiving earnings from the employer as an
19employee under Section 15-107.
20    With respect to transition pay paid by the University of
21Illinois to a person who was a participating employee employed
22in the fire department of the University of Illinois's
23Champaign-Urbana campus immediately prior to the elimination
24of that fire department:
25        (1) "Earnings" includes transition pay paid to the

 

 

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1    employee on or after the effective date of this amendatory
2    Act of the 91st General Assembly.
3        (2) "Earnings" includes transition pay paid to the
4    employee before the effective date of this amendatory Act
5    of the 91st General Assembly only if (i) employee
6    contributions under Section 15-157 have been withheld from
7    that transition pay or (ii) the employee pays to the System
8    before January 1, 2001 an amount representing employee
9    contributions under Section 15-157 on that transition pay.
10    Employee contributions under item (ii) may be paid in a
11    lump sum, by withholding from additional transition pay
12    accruing before January 1, 2001, or in any other manner
13    approved by the System. Upon payment of the employee
14    contributions on transition pay, the corresponding
15    employer contributions become an obligation of the State.
16    (b) For a Tier 2 member, the annual earnings shall not
17exceed $106,800; however, that amount shall annually
18thereafter be increased by the lesser of (i) 3% of that amount,
19including all previous adjustments, or (ii) one half the annual
20unadjusted percentage increase (but not less than zero) in the
21consumer price index-u for the 12 months ending with the
22September preceding each November 1, including all previous
23adjustments.
24    For the purposes of this Section, "consumer price index u"
25means the index published by the Bureau of Labor Statistics of
26the United States Department of Labor that measures the average

 

 

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1change in prices of goods and services purchased by all urban
2consumers, United States city average, all items, 1982-84 =
3100. The new amount resulting from each annual adjustment shall
4be determined by the Public Pension Division of the Department
5of Insurance and made available to the boards of the retirement
6systems and pension funds by November 1 of each year.
7    (c) Notwithstanding any other provision of this Code, the
8annual earnings of a Tier 1 member for the purposes of this
9Code shall not exceed, for periods of service on or after the
10effective date of this amendatory Act of the 98th General
11Assembly, the greater of (i) the annual limitation determined
12from time to time under subsection (b-5) of Section 1-160 of
13this Code, (ii) the annualized rate of earnings of the Tier 1
14member as of that effective date, or (iii) the annualized rate
15of earnings of the Tier 1 member immediately preceding the
16expiration, renewal, or amendment of an employment contract or
17collective bargaining agreement in effect on that effective
18date.
19(Source: P.A. 98-92, eff. 7-16-13.)
 
20    (40 ILCS 5/15-112)  (from Ch. 108 1/2, par. 15-112)
21    Sec. 15-112. Final rate of earnings. "Final rate of
22earnings":
23    (a) This subsection (a) applies only to a Tier 1 member.
24    For an employee who is paid on an hourly basis or who
25receives an annual salary in installments during 12 months of

 

 

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1each academic year, the average annual earnings during the 48
2consecutive calendar month period ending with the last day of
3final termination of employment or the 4 consecutive academic
4years of service in which the employee's earnings were the
5highest, whichever is greater. For any other employee, the
6average annual earnings during the 4 consecutive academic years
7of service in which his or her earnings were the highest. For
8an employee with less than 48 months or 4 consecutive academic
9years of service, the average earnings during his or her entire
10period of service. The earnings of an employee with more than
1136 months of service prior to the date of becoming a
12participant are, for such period, considered equal to the
13average earnings during the last 36 months of such service.
14    (b) This subsection (b) applies to a Tier 2 member.
15    For an employee who is paid on an hourly basis or who
16receives an annual salary in installments during 12 months of
17each academic year, the average annual earnings obtained by
18dividing by 8 the total earnings of the employee during the 96
19consecutive months in which the total earnings were the highest
20within the last 120 months prior to termination.
21    For any other employee, the average annual earnings during
22the 8 consecutive academic years within the 10 years prior to
23termination in which the employee's earnings were the highest.
24For an employee with less than 96 consecutive months or 8
25consecutive academic years of service, whichever is necessary,
26the average earnings during his or her entire period of

 

 

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1service.
2    (c) For an employee on leave of absence with pay, or on
3leave of absence without pay who makes contributions during
4such leave, earnings are assumed to be equal to the basic
5compensation on the date the leave began.
6    (d) For an employee on disability leave, earnings are
7assumed to be equal to the basic compensation on the date
8disability occurs or the average earnings during the 24 months
9immediately preceding the month in which disability occurs,
10whichever is greater.
11    (e) For a Tier 1 member who retires on or after the
12effective date of this amendatory Act of 1997 with at least 20
13years of service as a firefighter or police officer under this
14Article, the final rate of earnings shall be the annual rate of
15earnings received by the participant on his or her last day as
16a firefighter or police officer under this Article, if that is
17greater than the final rate of earnings as calculated under the
18other provisions of this Section.
19    (f) If a Tier 1 member is an employee for at least 6 months
20during the academic year in which his or her employment is
21terminated, the annual final rate of earnings shall be 25% of
22the sum of (1) the annual basic compensation for that year, and
23(2) the amount earned during the 36 months immediately
24preceding that year, if this is greater than the final rate of
25earnings as calculated under the other provisions of this
26Section.

 

 

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1    (g) In the determination of the final rate of earnings for
2an employee, that part of an employee's earnings for any
3academic year beginning after June 30, 1997, which exceeds the
4employee's earnings with that employer for the preceding year
5by more than 20 percent shall be excluded; in the event that an
6employee has more than one employer this limitation shall be
7calculated separately for the earnings with each employer. In
8making such calculation, only the basic compensation of
9employees shall be considered, without regard to vacation or
10overtime or to contracts for summer employment.
11    (h) The following are not considered as earnings in
12determining final rate of earnings: (1) severance or separation
13pay, (2) retirement pay, (3) payment for unused sick leave, and
14(4) payments from an employer for the period used in
15determining final rate of earnings for any purpose other than
16(i) services rendered, (ii) leave of absence or vacation
17granted during that period, and (iii) vacation of up to 56 work
18days allowed upon termination of employment; except that, if
19the benefit has been collectively bargained between the
20employer and the recognized collective bargaining agent
21pursuant to the Illinois Educational Labor Relations Act,
22payment received during a period of up to 2 academic years for
23unused sick leave may be considered as earnings in accordance
24with the applicable collective bargaining agreement, subject
25to the 20% increase limitation of this Section, and if the
26person first becomes a participant on or after the effective

 

 

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1date of this amendatory Act of the 98th General Assembly,
2payments for unused sick or vacation time shall not be
3considered as earnings. Any unused sick leave considered as
4earnings under this Section shall not be taken into account in
5calculating service credit under Section 15-113.4.
6    (i) Intermittent periods of service shall be considered as
7consecutive in determining final rate of earnings.
8(Source: P.A. 98-92, eff. 7-16-13.)
 
9    (40 ILCS 5/15-113.4)  (from Ch. 108 1/2, par. 15-113.4)
10    Sec. 15-113.4. Service for unused sick leave. "Service for
11unused sick leave": A person who first becomes a participant
12before the effective date of this amendatory Act of the 98th
13General Assembly and who is an employee under this System or
14one of the other systems subject to Article 20 of this Code
15within 60 days immediately preceding the date on which his or
16her retirement annuity begins, is entitled to credit for
17service for that portion of unused sick leave earned in the
18course of employment with an employer and credited on the date
19of termination of employment by an employer for which payment
20is not received, in accordance with the following schedule: 30
21through 90 full calendar days and 20 through 59 full work days
22of unused sick leave, 1/4 of a year of service; 91 through 180
23full calendar days and 60 through 119 full work days, 1/2 of a
24year of service; 181 through 270 full calendar days and 120
25through 179 full work days, 3/4 of a year of service; 271

 

 

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1through 360 full calendar days and 180 through 240 full work
2days, one year of service. Only uncompensated, unused sick
3leave earned in accordance with an employer's sick leave
4accrual policy generally applicable to employees or a class of
5employees shall be taken into account in calculating service
6credit under this Section. Any uncompensated, unused sick leave
7granted by an employer to facilitate the hiring, retirement,
8termination, or other special circumstances of an employee
9shall not be taken into account in calculating service credit
10under this Section. If a participant transfers from one
11employer to another, the unused sick leave credited by the
12previous employer shall be considered in determining service to
13be credited under this Section, even if the participant
14terminated service prior to the effective date of P.A. 86-272
15(August 23, 1989); if necessary, the retirement annuity shall
16be recalculated to reflect such sick leave credit. Each
17employer shall certify to the board the number of days of
18unused sick leave accrued to the participant's credit on the
19date that the participant's status as an employee terminated.
20This period of unused sick leave shall not be considered in
21determining the date the retirement annuity begins. A person
22who first becomes a participant on or after the effective date
23of this amendatory Act of the 98th General Assembly shall not
24receive service credit for unused sick leave.
25(Source: P.A. 90-65, eff. 7-7-97; 90-511, eff. 8-22-97.)
 

 

 

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1    (40 ILCS 5/15-125)  (from Ch. 108 1/2, par. 15-125)
2    Sec. 15-125. "Prescribed Rate of Interest; Effective Rate
3of Interest".
4    (1) "Prescribed rate of interest": The rate of interest to
5be used in actuarial valuations and in development of actuarial
6tables as determined by the board on the basis of the probable
7average effective rate of interest on a long term basis, based
8on factors including the expected investment experience;
9historical and expected fluctuations in the market value of
10investments; the desirability of minimizing volatility in the
11rate of investment earnings from year to year; and the
12provision of reserves for anticipated losses upon sales,
13redemptions, or other disposition of investments and for
14variations in interest experience.
15    (2) "Effective rate of interest": For a fiscal year
16concluding no later than June 30, 2014, the The interest rate
17for all or any part of a fiscal year that is determined by the
18board based on factors including the system's past and expected
19investment experience; historical and expected fluctuations in
20the market value of investments; the desirability of minimizing
21volatility in the effective rate of interest from year to year;
22and the provision of reserves for anticipated losses upon
23sales, redemptions, or other disposition of investments and for
24variations in interest experience; except that for the purpose
25of determining the accumulated normal contributions used in
26calculating retirement annuities under Rule 2 of Section

 

 

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115-136, the effective rate of interest shall be determined by
2the State Comptroller rather than the board. For a fiscal year
3concluding no later than June 30, 2014, the The State
4Comptroller shall determine the effective rate of interest to
5be used for this purpose using the factors listed above, and
6shall certify to the board and the Commission on Government
7Forecasting and Accountability the rate to be used for this
8purpose for fiscal year 2006 as soon as possible after the
9effective date of this amendatory Act of the 94th General
10Assembly, and for each fiscal year thereafter no later than the
11January 31 immediately preceding the start of that fiscal year.
12    For a fiscal year that begins on or after July 1, 2014, the
13effective rate of interest for a given fiscal year shall be
14equal to the interest rate of 30-year United States Treasury
15bonds as of the beginning of that given fiscal year, plus 75
16basis points. This effective rate of interest shall not be used
17in determining the prescribed rate of interest as defined in
18paragraph (1) of this Section.
19    (3) The change made to this Section by Public Acts 90-65
20and 90-511 is a clarification of existing law.
21(Source: P.A. 94-4, eff. 6-1-05; 94-982, eff. 6-30-06.)
 
22    (40 ILCS 5/15-135)  (from Ch. 108 1/2, par. 15-135)
23    Sec. 15-135. Retirement annuities - Conditions.
24    (a) This subsection (a) applies only to a Tier 1 member. A
25participant who retires in one of the following specified years

 

 

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1with the specified amount of service is entitled to a
2retirement annuity at any age under the retirement program
3applicable to the participant:
4        35 years if retirement is in 1997 or before;
5        34 years if retirement is in 1998;
6        33 years if retirement is in 1999;
7        32 years if retirement is in 2000;
8        31 years if retirement is in 2001;
9        30 years if retirement is in 2002 or later.
10    A participant with 8 or more years of service after
11September 1, 1941, is entitled to a retirement annuity on or
12after attainment of age 55.
13    A participant with at least 5 but less than 8 years of
14service after September 1, 1941, is entitled to a retirement
15annuity on or after attainment of age 62.
16    A participant who has at least 25 years of service in this
17system as a police officer or firefighter is entitled to a
18retirement annuity on or after the attainment of age 50, if
19Rule 4 of Section 15-136 is applicable to the participant.
20    (a-3) Notwithstanding subsection (a) of this Section, for a
21Tier 1 member who begins receiving a retirement annuity under
22this Section on or after July 1, 2014, the required retirement
23age under subsection (a) is increased as follows, based on the
24Tier 1 member's age on June 1, 2014:
25        (1) If he or she is at least age 46 on June 1, 2014,
26    then the required retirement ages under subsection (a)

 

 

SB0001CCR001- 186 -LRB098 05457 EFG 50220 c

1    remain unchanged.
2        (2) If he or she is at least age 45 but less than age 46
3    on June 1, 2014, then the required retirement ages under
4    subsection (a) are increased by 4 months.
5        (3) If he or she is at least age 44 but less than age 45
6    on June 1, 2014, then the required retirement ages under
7    subsection (a) are increased by 8 months.
8        (4) If he or she is at least age 43 but less than age 44
9    on June 1, 2014, then the required retirement ages under
10    subsection (a) are increased by 12 months.
11        (5) If he or she is at least age 42 but less than age 43
12    on June 1, 2014, then the required retirement ages under
13    subsection (a) are increased by 16 months.
14        (6) If he or she is at least age 41 but less than age 42
15    on June 1, 2014, then the required retirement ages under
16    subsection (a) are increased by 20 months.
17        (7) If he or she is at least age 40 but less than age 41
18    on June 1, 2014, then the required retirement ages under
19    subsection (a) are increased by 24 months.
20        (8) If he or she is at least age 39 but less than age 40
21    on June 1, 2014, then the required retirement ages under
22    subsection (a) are increased by 28 months.
23        (9) If he or she is at least age 38 but less than age 39
24    on June 1, 2014, then the required retirement ages under
25    subsection (a) are increased by 32 months.
26        (10) If he or she is at least age 37 but less than age

 

 

SB0001CCR001- 187 -LRB098 05457 EFG 50220 c

1    38 on June 1, 2014, then the required retirement ages under
2    subsection (a) are increased by 36 months.
3        (11) If he or she is at least age 36 but less than age
4    37 on June 1, 2014, then the required retirement ages under
5    subsection (a) are increased by 40 months.
6        (12) If he or she is at least age 35 but less than age
7    36 on June 1, 2014, then the required retirement ages under
8    subsection (a) are increased by 44 months.
9        (13) If he or she is at least age 34 but less than age
10    35 on June 1, 2014, then the required retirement ages under
11    subsection (a) are increased by 48 months.
12        (14) If he or she is at least age 33 but less than age
13    34 on June 1, 2014, then the required retirement ages under
14    subsection (a) are increased by 52 months.
15        (15) If he or she is at least age 32 but less than age
16    33 on June 1, 2014, then the required retirement ages under
17    subsection (a) are increased by 56 months.
18        (16) If he or she is less than age 32 on June 1, 2014,
19    then the required retirement ages under subsection (a) are
20    increased by 60 months.
21    Notwithstanding Section 1-103.1, this subsection (a-3)
22applies without regard to whether or not the Tier 1 member is
23in active service under this Article on or after the effective
24date of this amendatory Act of the 98th General Assembly.
25    (a-5) A Tier 2 member is entitled to a retirement annuity
26upon written application if he or she has attained age 67 and

 

 

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1has at least 10 years of service credit and is otherwise
2eligible under the requirements of this Article. A Tier 2
3member who has attained age 62 and has at least 10 years of
4service credit and is otherwise eligible under the requirements
5of this Article may elect to receive the lower retirement
6annuity provided in subsection (b-5) of Section 15-136 of this
7Article.
8    (b) The annuity payment period shall begin on the date
9specified by the participant or the recipient of a disability
10retirement annuity submitting a written application, which
11date shall not be prior to termination of employment or more
12than one year before the application is received by the board;
13however, if the participant is not an employee of an employer
14participating in this System or in a participating system as
15defined in Article 20 of this Code on April 1 of the calendar
16year next following the calendar year in which the participant
17attains age 70 1/2, the annuity payment period shall begin on
18that date regardless of whether an application has been filed.
19    (c) An annuity is not payable if the amount provided under
20Section 15-136 is less than $10 per month.
21(Source: P.A. 97-933, eff. 8-10-12; 97-968, eff. 8-16-12;
2298-92, eff. 7-16-13.)
 
23    (40 ILCS 5/15-136)  (from Ch. 108 1/2, par. 15-136)
24    Sec. 15-136. Retirement annuities - Amount. The provisions
25of this Section 15-136 apply only to those participants who are

 

 

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1participating in the traditional benefit package or the
2portable benefit package and do not apply to participants who
3are participating in the self-managed plan.
4    (a) The amount of a participant's retirement annuity,
5expressed in the form of a single-life annuity, shall be
6determined by whichever of the following rules is applicable
7and provides the largest annuity:
8    Rule 1: The retirement annuity shall be 1.67% of final rate
9of earnings for each of the first 10 years of service, 1.90%
10for each of the next 10 years of service, 2.10% for each year
11of service in excess of 20 but not exceeding 30, and 2.30% for
12each year in excess of 30; or for persons who retire on or
13after January 1, 1998, 2.2% of the final rate of earnings for
14each year of service.
15    Rule 2: The retirement annuity shall be the sum of the
16following, determined from amounts credited to the participant
17in accordance with the actuarial tables and the effective rate
18of interest in effect at the time the retirement annuity
19begins:
20        (i) the normal annuity which can be provided on an
21    actuarially equivalent basis (using the effective rate of
22    interest in effect at the time of retirement for
23    retirements occurring on or after July 1, 2014), by the
24    accumulated normal contributions as of the date the annuity
25    begins;
26        (ii) an annuity from employer contributions of an

 

 

SB0001CCR001- 190 -LRB098 05457 EFG 50220 c

1    amount equal to that which can be provided on an
2    actuarially equivalent basis (using the effective rate of
3    interest in effect at the time of retirement for
4    retirements occurring on or after July 1, 2014) from the
5    accumulated normal contributions made by the participant
6    under Section 15-113.6 and Section 15-113.7 plus 1.4 times
7    all other accumulated normal contributions made by the
8    participant; and
9        (iii) the annuity that can be provided on an
10    actuarially equivalent basis (using the effective rate of
11    interest in effect at the time of retirement for
12    retirements occurring on or after July 1, 2014) from the
13    entire contribution made by the participant under Section
14    15-113.3.
15    Notwithstanding any other provision of this Rule 2, a
16participant's retirement annuity calculated under this Rule 2
17shall not be less than the retirement annuity that participant
18would have received under this Rule 2 had he or she retired
19during the fiscal year preceding the effective date of this
20amendatory Act of the 98th General Assembly.
21    With respect to a police officer or firefighter who retires
22on or after August 14, 1998, the accumulated normal
23contributions taken into account under clauses (i) and (ii) of
24this Rule 2 shall include the additional normal contributions
25made by the police officer or firefighter under Section
2615-157(a).

 

 

SB0001CCR001- 191 -LRB098 05457 EFG 50220 c

1    The amount of a retirement annuity calculated under this
2Rule 2 shall be computed solely on the basis of the
3participant's accumulated normal contributions, as specified
4in this Rule and defined in Section 15-116. Neither an employee
5or employer contribution for early retirement under Section
615-136.2 nor any other employer contribution shall be used in
7the calculation of the amount of a retirement annuity under
8this Rule 2.
9    This amendatory Act of the 91st General Assembly is a
10clarification of existing law and applies to every participant
11and annuitant without regard to whether status as an employee
12terminates before the effective date of this amendatory Act.
13    This Rule 2 does not apply to a person who first becomes an
14employee under this Article on or after July 1, 2005.
15    Rule 3: The retirement annuity of a participant who is
16employed at least one-half time during the period on which his
17or her final rate of earnings is based, shall be equal to the
18participant's years of service not to exceed 30, multiplied by
19(1) $96 if the participant's final rate of earnings is less
20than $3,500, (2) $108 if the final rate of earnings is at least
21$3,500 but less than $4,500, (3) $120 if the final rate of
22earnings is at least $4,500 but less than $5,500, (4) $132 if
23the final rate of earnings is at least $5,500 but less than
24$6,500, (5) $144 if the final rate of earnings is at least
25$6,500 but less than $7,500, (6) $156 if the final rate of
26earnings is at least $7,500 but less than $8,500, (7) $168 if

 

 

SB0001CCR001- 192 -LRB098 05457 EFG 50220 c

1the final rate of earnings is at least $8,500 but less than
2$9,500, and (8) $180 if the final rate of earnings is $9,500 or
3more, except that the annuity for those persons having made an
4election under Section 15-154(a-1) shall be calculated and
5payable under the portable retirement benefit program pursuant
6to the provisions of Section 15-136.4.
7    Rule 4: A participant who is at least age 50 and has 25 or
8more years of service as a police officer or firefighter, and a
9participant who is age 55 or over and has at least 20 but less
10than 25 years of service as a police officer or firefighter,
11shall be entitled to a retirement annuity of 2 1/4% of the
12final rate of earnings for each of the first 10 years of
13service as a police officer or firefighter, 2 1/2% for each of
14the next 10 years of service as a police officer or
15firefighter, and 2 3/4% for each year of service as a police
16officer or firefighter in excess of 20. The retirement annuity
17for all other service shall be computed under Rule 1. A Tier 2
18member is eligible for a retirement annuity calculated under
19Rule 4 only if that Tier 2 member meets the service
20requirements for that benefit calculation as prescribed under
21this Rule 4 in addition to the applicable age requirement under
22subsection (a-5) of Section 15-135.
23    For purposes of this Rule 4, a participant's service as a
24firefighter shall also include the following:
25        (i) service that is performed while the person is an
26    employee under subsection (h) of Section 15-107; and

 

 

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1        (ii) in the case of an individual who was a
2    participating employee employed in the fire department of
3    the University of Illinois's Champaign-Urbana campus
4    immediately prior to the elimination of that fire
5    department and who immediately after the elimination of
6    that fire department transferred to another job with the
7    University of Illinois, service performed as an employee of
8    the University of Illinois in a position other than police
9    officer or firefighter, from the date of that transfer
10    until the employee's next termination of service with the
11    University of Illinois.
12    (b) For a Tier 1 member, the retirement annuity provided
13under Rules 1 and 3 above shall be reduced by 1/2 of 1% for each
14month the participant is under age 60 at the time of
15retirement. However, this reduction shall not apply in the
16following cases:
17        (1) For a disabled participant whose disability
18    benefits have been discontinued because he or she has
19    exhausted eligibility for disability benefits under clause
20    (6) of Section 15-152;
21        (2) For a participant who has at least the number of
22    years of service required to retire at any age under
23    subsection (a) of Section 15-135; or
24        (3) For that portion of a retirement annuity which has
25    been provided on account of service of the participant
26    during periods when he or she performed the duties of a

 

 

SB0001CCR001- 194 -LRB098 05457 EFG 50220 c

1    police officer or firefighter, if these duties were
2    performed for at least 5 years immediately preceding the
3    date the retirement annuity is to begin.
4    (b-5) The retirement annuity of a Tier 2 member who is
5retiring after attaining age 62 with at least 10 years of
6service credit shall be reduced by 1/2 of 1% for each full
7month that the member's age is under age 67.
8    (c) The maximum retirement annuity provided under Rules 1,
92, 4, and 5 shall be the lesser of (1) the annual limit of
10benefits as specified in Section 415 of the Internal Revenue
11Code of 1986, as such Section may be amended from time to time
12and as such benefit limits shall be adjusted by the
13Commissioner of Internal Revenue, and (2) 80% of final rate of
14earnings.
15    (d) This subsection (d) is subject to subsections (d-1) and
16(d-2). A Tier 1 member whose status as an employee terminates
17after August 14, 1969 shall receive automatic increases in his
18or her retirement annuity as follows:
19    Effective January 1 immediately following the date the
20retirement annuity begins, the annuitant shall receive an
21increase in his or her monthly retirement annuity of 0.125% of
22the monthly retirement annuity provided under Rule 1, Rule 2,
23Rule 3, or Rule 4 contained in this Section, multiplied by the
24number of full months which elapsed from the date the
25retirement annuity payments began to January 1, 1972, plus
260.1667% of such annuity, multiplied by the number of full

 

 

SB0001CCR001- 195 -LRB098 05457 EFG 50220 c

1months which elapsed from January 1, 1972, or the date the
2retirement annuity payments began, whichever is later, to
3January 1, 1978, plus 0.25% of such annuity multiplied by the
4number of full months which elapsed from January 1, 1978, or
5the date the retirement annuity payments began, whichever is
6later, to the effective date of the increase.
7    The annuitant shall receive an increase in his or her
8monthly retirement annuity on each January 1 thereafter during
9the annuitant's life of 3% of the monthly annuity provided
10under Rule 1, Rule 2, Rule 3, or Rule 4 contained in this
11Section. The change made under this subsection by P.A. 81-970
12is effective January 1, 1980 and applies to each annuitant
13whose status as an employee terminates before or after that
14date.
15    Beginning January 1, 1990, all automatic annual increases
16payable under this Section shall be calculated as a percentage
17of the total annuity payable at the time of the increase,
18including all increases previously granted under this Article.
19    The change made in this subsection by P.A. 85-1008 is
20effective January 26, 1988, and is applicable without regard to
21whether status as an employee terminated before that date.
22    (d-1) Notwithstanding subsection (d), but subject to the
23provisions of subsection (d-2), all automatic increases
24payable under subsection (d) on or after the effective date of
25this amendatory Act of the 98th General Assembly shall be
26calculated as 3% of the lesser of (1) the total annuity payable

 

 

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1at the time of the increase, including previous increases
2granted, or (2) $1,000 multiplied by the number of years of
3creditable service upon which the annuity is based; however, in
4the case of an initial increase subject to this subsection, the
5amount of that increase shall be prorated if less than one year
6has elapsed since retirement.
7    Beginning January 1, 2016, the $1,000 referred to in item
8(2) of this subsection (d-1) shall be increased on each January
91 by the annual unadjusted percentage increase (but not less
10than zero) in the consumer price index-u for the 12 months
11ending with the preceding September; these adjustments shall be
12cumulative and compounded. For the purposes of this subsection
13(d-1), "consumer price index-u" means the index published by
14the Bureau of Labor Statistics of the United States Department
15of Labor that measures the average change in prices of goods
16and services purchased by all urban consumers, United States
17city average, all items, 1982-84 = 100. The new dollar amount
18resulting from each annual adjustment shall be determined by
19the Public Pension Division of the Department of Insurance and
20made available to the System by November 1 of each year.
21    This subsection (d-1) is applicable without regard to
22whether the person is in service on or after the effective date
23of this amendatory Act of the 98th General Assembly.
24    (d-2) Notwithstanding subsections (d) and (d-1), for an
25active or inactive Tier 1 member who has not begun to receive a
26retirement annuity under this Article before July 1, 2014:

 

 

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1        (1) the automatic annual increase payable under
2    subsection (d) the second January following the date the
3    retirement annuity begins shall be equal to 0% of the total
4    annuity payable at the time of the increase, if he or she
5    is at least age 50 on the effective date of this amendatory
6    Act;
7        (2) the automatic annual increase payable under
8    subsection (d) the second, fourth, and sixth January
9    following the date the retirement annuity begins shall be
10    equal to 0% of the total annuity payable at the time of the
11    increase, if he or she is at least age 47 but less than age
12    50 on the effective date of this amendatory Act;
13        (3) the automatic annual increase payable under
14    subsection (d) the second, fourth, sixth, and eighth
15    January following the date the retirement annuity begins
16    shall be equal to 0% of the total annuity payable at the
17    time of the increase, if he or she is at least age 44 but
18    less than age 47 on the effective date of this amendatory
19    Act;
20        (4) the automatic annual increase payable under
21    subsection (d) the second, fourth, sixth, eighth, and tenth
22    January following the date the retirement annuity begins
23    shall be equal to 0% of the total annuity payable at the
24    time of the increase, if he or she is less than age 44 on
25    the effective date of this amendatory Act.
26    (d-5) A retirement annuity of a Tier 2 member shall receive

 

 

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1annual increases on the January 1 occurring either on or after
2the attainment of age 67 or the first anniversary of the
3annuity start date, whichever is later. Each annual increase
4shall be calculated at 3% or one half the annual unadjusted
5percentage increase (but not less than zero) in the consumer
6price index-u for the 12 months ending with the September
7preceding each November 1, whichever is less, of the originally
8granted retirement annuity. If the annual unadjusted
9percentage change in the consumer price index-u for the 12
10months ending with the September preceding each November 1 is
11zero or there is a decrease, then the annuity shall not be
12increased.
13    (e) If, on January 1, 1987, or the date the retirement
14annuity payment period begins, whichever is later, the sum of
15the retirement annuity provided under Rule 1 or Rule 2 of this
16Section and the automatic annual increases provided under the
17preceding subsection or Section 15-136.1, amounts to less than
18the retirement annuity which would be provided by Rule 3, the
19retirement annuity shall be increased as of January 1, 1987, or
20the date the retirement annuity payment period begins,
21whichever is later, to the amount which would be provided by
22Rule 3 of this Section. Such increased amount shall be
23considered as the retirement annuity in determining benefits
24provided under other Sections of this Article. This paragraph
25applies without regard to whether status as an employee
26terminated before the effective date of this amendatory Act of

 

 

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11987, provided that the annuitant was employed at least
2one-half time during the period on which the final rate of
3earnings was based.
4    (f) A participant is entitled to such additional annuity as
5may be provided on an actuarially equivalent basis, by any
6accumulated additional contributions to his or her credit.
7However, the additional contributions made by the participant
8toward the automatic increases in annuity provided under this
9Section shall not be taken into account in determining the
10amount of such additional annuity.
11    (g) If, (1) by law, a function of a governmental unit, as
12defined by Section 20-107 of this Code, is transferred in whole
13or in part to an employer, and (2) a participant transfers
14employment from such governmental unit to such employer within
156 months after the transfer of the function, and (3) the sum of
16(A) the annuity payable to the participant under Rule 1, 2, or
173 of this Section (B) all proportional annuities payable to the
18participant by all other retirement systems covered by Article
1920, and (C) the initial primary insurance amount to which the
20participant is entitled under the Social Security Act, is less
21than the retirement annuity which would have been payable if
22all of the participant's pension credits validated under
23Section 20-109 had been validated under this system, a
24supplemental annuity equal to the difference in such amounts
25shall be payable to the participant.
26    (h) On January 1, 1981, an annuitant who was receiving a

 

 

SB0001CCR001- 200 -LRB098 05457 EFG 50220 c

1retirement annuity on or before January 1, 1971 shall have his
2or her retirement annuity then being paid increased $1 per
3month for each year of creditable service. On January 1, 1982,
4an annuitant whose retirement annuity began on or before
5January 1, 1977, shall have his or her retirement annuity then
6being paid increased $1 per month for each year of creditable
7service.
8    (i) On January 1, 1987, any annuitant whose retirement
9annuity began on or before January 1, 1977, shall have the
10monthly retirement annuity increased by an amount equal to 8¢
11per year of creditable service times the number of years that
12have elapsed since the annuity began.
13    (j) For participants to whom subsection (a-3) of Section
1415-135 applies, the references to age 50, 55, and 62 in this
15Section are increased as provided in subsection (a-3) of
16Section 15-135.
17(Source: P.A. 97-933, eff. 8-10-12; 97-968, eff. 8-16-12;
1898-92, eff. 7-16-13.)
 
19    (40 ILCS 5/15-155)  (from Ch. 108 1/2, par. 15-155)
20    Sec. 15-155. Employer contributions.
21    (a) The State of Illinois shall make contributions by
22appropriations of amounts which, together with the other
23employer contributions from trust, federal, and other funds,
24employee contributions, income from investments, and other
25income of this System, will be sufficient to meet the cost of

 

 

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1maintaining and administering the System on a 100% 90% funded
2basis in accordance with actuarial recommendations by the end
3of State fiscal year 2044.
4    The Board shall determine the amount of State contributions
5required for each fiscal year on the basis of the actuarial
6tables and other assumptions adopted by the Board and the
7recommendations of the actuary, using the formula in subsection
8(a-1).
9    (a-1) For State fiscal years 2015 through 2044, the minimum
10contribution to the System to be made by the State for each
11fiscal year shall be an amount determined by the System to be
12equal to the sum of (1) the State's portion of the projected
13normal cost for that fiscal year, plus (2) an amount sufficient
14to bring the total assets of the System up to 100% of the total
15actuarial liabilities of the System by the end of the State
16fiscal year 2044. In making these determinations, the required
17State contribution shall be calculated each year as a level
18percentage of payroll over the years remaining to and including
19fiscal year 2044 and shall be determined under the projected
20unit cost method for fiscal year 2015 and under the entry age
21normal actuarial cost method for fiscal years 2016 through
222044.
23    For State fiscal years 2012 through 2014 2045, the minimum
24contribution to the System to be made by the State for each
25fiscal year shall be an amount determined by the System to be
26sufficient to bring the total assets of the System up to 90% of

 

 

SB0001CCR001- 202 -LRB098 05457 EFG 50220 c

1the total actuarial liabilities of the System by the end of
2State fiscal year 2045. In making these determinations, the
3required State contribution shall be calculated each year as a
4level percentage of payroll over the years remaining to and
5including fiscal year 2045 and shall be determined under the
6projected unit credit actuarial cost method.
7    For State fiscal years 1996 through 2005, the State
8contribution to the System, as a percentage of the applicable
9employee payroll, shall be increased in equal annual increments
10so that by State fiscal year 2011, the State is contributing at
11the rate required under this Section.
12    Notwithstanding any other provision of this Article, the
13total required State contribution for State fiscal year 2006 is
14$166,641,900.
15    Notwithstanding any other provision of this Article, the
16total required State contribution for State fiscal year 2007 is
17$252,064,100.
18    For each of State fiscal years 2008 through 2009, the State
19contribution to the System, as a percentage of the applicable
20employee payroll, shall be increased in equal annual increments
21from the required State contribution for State fiscal year
222007, so that by State fiscal year 2011, the State is
23contributing at the rate otherwise required under this Section.
24    Notwithstanding any other provision of this Article, the
25total required State contribution for State fiscal year 2010 is
26$702,514,000 and shall be made from the State Pensions Fund and

 

 

SB0001CCR001- 203 -LRB098 05457 EFG 50220 c

1proceeds of bonds sold in fiscal year 2010 pursuant to Section
27.2 of the General Obligation Bond Act, less (i) the pro rata
3share of bond sale expenses determined by the System's share of
4total bond proceeds, (ii) any amounts received from the General
5Revenue Fund in fiscal year 2010, (iii) any reduction in bond
6proceeds due to the issuance of discounted bonds, if
7applicable.
8    Notwithstanding any other provision of this Article, the
9total required State contribution for State fiscal year 2011 is
10the amount recertified by the System on or before April 1, 2011
11pursuant to Section 15-165 and shall be made from the State
12Pensions Fund and proceeds of bonds sold in fiscal year 2011
13pursuant to Section 7.2 of the General Obligation Bond Act,
14less (i) the pro rata share of bond sale expenses determined by
15the System's share of total bond proceeds, (ii) any amounts
16received from the General Revenue Fund in fiscal year 2011, and
17(iii) any reduction in bond proceeds due to the issuance of
18discounted bonds, if applicable.
19    Beginning in State fiscal year 2045, the minimum
20contribution for each fiscal year shall be the amount needed to
21maintain the total assets of the System at 100% of the total
22liabilities of the System.
23    Beginning in State fiscal year 2046, the minimum State
24contribution for each fiscal year shall be the amount needed to
25maintain the total assets of the System at 90% of the total
26actuarial liabilities of the System.

 

 

SB0001CCR001- 204 -LRB098 05457 EFG 50220 c

1    Amounts received by the System pursuant to Section 25 of
2the Budget Stabilization Act or Section 8.12 of the State
3Finance Act in any fiscal year do not reduce and do not
4constitute payment of any portion of the minimum State
5contribution required under this Article in that fiscal year.
6Such amounts shall not reduce, and shall not be included in the
7calculation of, the required State contributions under this
8Article in any future year until the System has reached a
9funding ratio of at least 100% 90%. A reference in this Article
10to the "required State contribution" or any substantially
11similar term does not include or apply to any amounts payable
12to the System under Section 25 of the Budget Stabilization Act.
13    Notwithstanding any other provision of this Section, the
14required State contribution for State fiscal year 2005 and for
15fiscal year 2008 and each fiscal year thereafter through State
16fiscal year 2014, as calculated under this Section and
17certified under Section 15-165, shall not exceed an amount
18equal to (i) the amount of the required State contribution that
19would have been calculated under this Section for that fiscal
20year if the System had not received any payments under
21subsection (d) of Section 7.2 of the General Obligation Bond
22Act, minus (ii) the portion of the State's total debt service
23payments for that fiscal year on the bonds issued in fiscal
24year 2003 for the purposes of that Section 7.2, as determined
25and certified by the Comptroller, that is the same as the
26System's portion of the total moneys distributed under

 

 

SB0001CCR001- 205 -LRB098 05457 EFG 50220 c

1subsection (d) of Section 7.2 of the General Obligation Bond
2Act. In determining this maximum for State fiscal years 2008
3through 2010, however, the amount referred to in item (i) shall
4be increased, as a percentage of the applicable employee
5payroll, in equal increments calculated from the sum of the
6required State contribution for State fiscal year 2007 plus the
7applicable portion of the State's total debt service payments
8for fiscal year 2007 on the bonds issued in fiscal year 2003
9for the purposes of Section 7.2 of the General Obligation Bond
10Act, so that, by State fiscal year 2011, the State is
11contributing at the rate otherwise required under this Section.
12    (b) If an employee is paid from trust or federal funds, the
13employer shall pay to the Board contributions from those funds
14which are sufficient to cover the accruing normal costs on
15behalf of the employee. However, universities having employees
16who are compensated out of local auxiliary funds, income funds,
17or service enterprise funds are not required to pay such
18contributions on behalf of those employees. The local auxiliary
19funds, income funds, and service enterprise funds of
20universities shall not be considered trust funds for the
21purpose of this Article, but funds of alumni associations,
22foundations, and athletic associations which are affiliated
23with the universities included as employers under this Article
24and other employers which do not receive State appropriations
25are considered to be trust funds for the purpose of this
26Article.

 

 

SB0001CCR001- 206 -LRB098 05457 EFG 50220 c

1    (b-1) The City of Urbana and the City of Champaign shall
2each make employer contributions to this System for their
3respective firefighter employees who participate in this
4System pursuant to subsection (h) of Section 15-107. The rate
5of contributions to be made by those municipalities shall be
6determined annually by the Board on the basis of the actuarial
7assumptions adopted by the Board and the recommendations of the
8actuary, and shall be expressed as a percentage of salary for
9each such employee. The Board shall certify the rate to the
10affected municipalities as soon as may be practical. The
11employer contributions required under this subsection shall be
12remitted by the municipality to the System at the same time and
13in the same manner as employee contributions.
14    (c) Through State fiscal year 1995: The total employer
15contribution shall be apportioned among the various funds of
16the State and other employers, whether trust, federal, or other
17funds, in accordance with actuarial procedures approved by the
18Board. State of Illinois contributions for employers receiving
19State appropriations for personal services shall be payable
20from appropriations made to the employers or to the System. The
21contributions for Class I community colleges covering earnings
22other than those paid from trust and federal funds, shall be
23payable solely from appropriations to the Illinois Community
24College Board or the System for employer contributions.
25    (d) Beginning in State fiscal year 1996, the required State
26contributions to the System shall be appropriated directly to

 

 

SB0001CCR001- 207 -LRB098 05457 EFG 50220 c

1the System and shall be payable through vouchers issued in
2accordance with subsection (c) of Section 15-165, except as
3provided in subsection (g).
4    (e) The State Comptroller shall draw warrants payable to
5the System upon proper certification by the System or by the
6employer in accordance with the appropriation laws and this
7Code.
8    (f) Normal costs under this Section means liability for
9pensions and other benefits which accrues to the System because
10of the credits earned for service rendered by the participants
11during the fiscal year and expenses of administering the
12System, but shall not include the principal of or any
13redemption premium or interest on any bonds issued by the Board
14or any expenses incurred or deposits required in connection
15therewith.
16    (g) If the amount of a participant's earnings for any
17academic year used to determine the final rate of earnings,
18determined on a full-time equivalent basis, exceeds the amount
19of his or her earnings with the same employer for the previous
20academic year, determined on a full-time equivalent basis, by
21more than 6%, the participant's employer shall pay to the
22System, in addition to all other payments required under this
23Section and in accordance with guidelines established by the
24System, the present value of the increase in benefits resulting
25from the portion of the increase in earnings that is in excess
26of 6%. This present value shall be computed by the System on

 

 

SB0001CCR001- 208 -LRB098 05457 EFG 50220 c

1the basis of the actuarial assumptions and tables used in the
2most recent actuarial valuation of the System that is available
3at the time of the computation. The System may require the
4employer to provide any pertinent information or
5documentation.
6    Whenever it determines that a payment is or may be required
7under this subsection (g), the System shall calculate the
8amount of the payment and bill the employer for that amount.
9The bill shall specify the calculations used to determine the
10amount due. If the employer disputes the amount of the bill, it
11may, within 30 days after receipt of the bill, apply to the
12System in writing for a recalculation. The application must
13specify in detail the grounds of the dispute and, if the
14employer asserts that the calculation is subject to subsection
15(h) or (i) of this Section, must include an affidavit setting
16forth and attesting to all facts within the employer's
17knowledge that are pertinent to the applicability of subsection
18(h) or (i). Upon receiving a timely application for
19recalculation, the System shall review the application and, if
20appropriate, recalculate the amount due.
21    The employer contributions required under this subsection
22(g) may be paid in the form of a lump sum within 90 days after
23receipt of the bill. If the employer contributions are not paid
24within 90 days after receipt of the bill, then interest will be
25charged at a rate equal to the System's annual actuarially
26assumed rate of return on investment compounded annually from

 

 

SB0001CCR001- 209 -LRB098 05457 EFG 50220 c

1the 91st day after receipt of the bill. Payments must be
2concluded within 3 years after the employer's receipt of the
3bill.
4    (h) This subsection (h) applies only to payments made or
5salary increases given on or after June 1, 2005 but before July
61, 2011. The changes made by Public Act 94-1057 shall not
7require the System to refund any payments received before July
831, 2006 (the effective date of Public Act 94-1057).
9    When assessing payment for any amount due under subsection
10(g), the System shall exclude earnings increases paid to
11participants under contracts or collective bargaining
12agreements entered into, amended, or renewed before June 1,
132005.
14    When assessing payment for any amount due under subsection
15(g), the System shall exclude earnings increases paid to a
16participant at a time when the participant is 10 or more years
17from retirement eligibility under Section 15-135.
18    When assessing payment for any amount due under subsection
19(g), the System shall exclude earnings increases resulting from
20overload work, including a contract for summer teaching, or
21overtime when the employer has certified to the System, and the
22System has approved the certification, that: (i) in the case of
23overloads (A) the overload work is for the sole purpose of
24academic instruction in excess of the standard number of
25instruction hours for a full-time employee occurring during the
26academic year that the overload is paid and (B) the earnings

 

 

SB0001CCR001- 210 -LRB098 05457 EFG 50220 c

1increases are equal to or less than the rate of pay for
2academic instruction computed using the participant's current
3salary rate and work schedule; and (ii) in the case of
4overtime, the overtime was necessary for the educational
5mission.
6    When assessing payment for any amount due under subsection
7(g), the System shall exclude any earnings increase resulting
8from (i) a promotion for which the employee moves from one
9classification to a higher classification under the State
10Universities Civil Service System, (ii) a promotion in academic
11rank for a tenured or tenure-track faculty position, or (iii) a
12promotion that the Illinois Community College Board has
13recommended in accordance with subsection (k) of this Section.
14These earnings increases shall be excluded only if the
15promotion is to a position that has existed and been filled by
16a member for no less than one complete academic year and the
17earnings increase as a result of the promotion is an increase
18that results in an amount no greater than the average salary
19paid for other similar positions.
20    (i) When assessing payment for any amount due under
21subsection (g), the System shall exclude any salary increase
22described in subsection (h) of this Section given on or after
23July 1, 2011 but before July 1, 2014 under a contract or
24collective bargaining agreement entered into, amended, or
25renewed on or after June 1, 2005 but before July 1, 2011.
26Notwithstanding any other provision of this Section, any

 

 

SB0001CCR001- 211 -LRB098 05457 EFG 50220 c

1payments made or salary increases given after June 30, 2014
2shall be used in assessing payment for any amount due under
3subsection (g) of this Section.
4    (j) The System shall prepare a report and file copies of
5the report with the Governor and the General Assembly by
6January 1, 2007 that contains all of the following information:
7        (1) The number of recalculations required by the
8    changes made to this Section by Public Act 94-1057 for each
9    employer.
10        (2) The dollar amount by which each employer's
11    contribution to the System was changed due to
12    recalculations required by Public Act 94-1057.
13        (3) The total amount the System received from each
14    employer as a result of the changes made to this Section by
15    Public Act 94-4.
16        (4) The increase in the required State contribution
17    resulting from the changes made to this Section by Public
18    Act 94-1057.
19    (k) The Illinois Community College Board shall adopt rules
20for recommending lists of promotional positions submitted to
21the Board by community colleges and for reviewing the
22promotional lists on an annual basis. When recommending
23promotional lists, the Board shall consider the similarity of
24the positions submitted to those positions recognized for State
25universities by the State Universities Civil Service System.
26The Illinois Community College Board shall file a copy of its

 

 

SB0001CCR001- 212 -LRB098 05457 EFG 50220 c

1findings with the System. The System shall consider the
2findings of the Illinois Community College Board when making
3determinations under this Section. The System shall not exclude
4any earnings increases resulting from a promotion when the
5promotion was not submitted by a community college. Nothing in
6this subsection (k) shall require any community college to
7submit any information to the Community College Board.
8    (l) For purposes of determining the required State
9contribution to the System, the value of the System's assets
10shall be equal to the actuarial value of the System's assets,
11which shall be calculated as follows:
12    As of June 30, 2008, the actuarial value of the System's
13assets shall be equal to the market value of the assets as of
14that date. In determining the actuarial value of the System's
15assets for fiscal years after June 30, 2008, any actuarial
16gains or losses from investment return incurred in a fiscal
17year shall be recognized in equal annual amounts over the
185-year period following that fiscal year.
19    (m) For purposes of determining the required State
20contribution to the system for a particular year, the actuarial
21value of assets shall be assumed to earn a rate of return equal
22to the system's actuarially assumed rate of return.
23(Source: P.A. 97-813, eff. 7-13-12; 98-92, eff. 7-16-13;
2498-463, eff. 8-16-13.)
 
25    (40 ILCS 5/15-156)  (from Ch. 108 1/2, par. 15-156)

 

 

SB0001CCR001- 213 -LRB098 05457 EFG 50220 c

1    Sec. 15-156. Obligations of State; funding guarantees.
2    (a) The payment of (1) the required State contributions,
3(2) all benefits granted under this system and (3) all expenses
4in connection with the administration and operation thereof are
5obligations of the State of Illinois to the extent specified in
6this Article. The accumulated employee normal, additional and
7survivors insurance contributions credited to the accounts of
8active and inactive participants shall not be used to pay the
9State's share of the obligations.
10    (b) Beginning July 1, 2014, the State shall be obligated to
11contribute to the System in each State fiscal year an amount
12not less than the sum of (i) the State's normal cost for the
13year and (ii) the portion of the unfunded accrued liability
14assigned to that year by law. Notwithstanding any other
15provision of law, if the State fails to pay an amount required
16under this subsection, it shall be the obligation of the Board
17to seek payment of the required amount in compliance with the
18provisions of this Section and, if the amount remains unpaid,
19to bring a mandamus action in the Supreme Court of Illinois to
20compel the State to make the required payment.
21    If the System submits a voucher for contributions required
22under Section 15-155 and the State fails to pay that voucher
23within 90 days of its receipt, the Board shall submit a written
24request to the Comptroller seeking payment. A copy of the
25request shall be filed with the Secretary of State, and the
26Secretary of State shall provide a copy to the Governor and

 

 

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1General Assembly. No earlier than the 16th day after the System
2files the request with the Comptroller and Secretary of State,
3if the amount remains unpaid the Board shall commence a
4mandamus action in the Supreme Court of Illinois to compel the
5Comptroller to satisfy the voucher.
6    This subsection (b) constitutes an express waiver of the
7State's sovereign immunity solely to the extent that it permits
8the Board to commence a mandamus action in the Supreme Court of
9Illinois to compel the Comptroller to pay a voucher for the
10contributions required under Section 15-155.
11    (c) Beginning in State fiscal year 2016, the State shall be
12obligated to make the transfers set forth in subsections (c-5)
13and (c-10) of Section 20 of the Budget Stabilization Act and to
14pay to the System its proportionate share of the transferred
15amounts in accordance with Section 25 of the Budget
16Stabilization Act. Notwithstanding any other provision of law,
17if the State fails to transfer an amount required under this
18subsection or to pay to the System its proportionate share of
19the transferred amount in accordance with Section 25 of the
20Budget Stabilization Act, it shall be the obligation of the
21Board to seek transfer or payment of the required amount in
22compliance with the provisions of this Section and, if the
23required amount remains untransferred or the required payment
24remains unpaid, to bring a mandamus action in the Supreme Court
25of Illinois to compel the State to make the required transfer
26or payment or both, as the case may be.

 

 

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1    If the State fails to make a transfer required under
2subsection (c-5) or (c-10) of Section 20 of the Budget
3Stabilization Act or a payment to the System required under
4Section 25 of that Act, the Board shall submit a written
5request to the Comptroller seeking payment. A copy of the
6request shall be filed with the Secretary of State, and the
7Secretary of State shall provide a copy to the Governor and
8General Assembly. No earlier than the 16th day after the System
9files the request with the Comptroller and Secretary of State,
10if the required amount remains untransferred or the required
11payment remains unpaid, the Board shall commence a mandamus
12action in the Supreme Court of Illinois to compel the
13Comptroller to make the required transfer or payment or both,
14as the case may be.
15    This subsection (c) constitutes an express waiver of the
16State's sovereign immunity solely to the extent that it permits
17the Board to commence a mandamus action in the Supreme Court of
18Illinois to compel the Comptroller to make a transfer required
19under subsection (c-5) or (c-10) of Section 20 of the Budget
20Stabilization Act and to pay to the System its proportionate
21share of the transferred amount in accordance with Section 25
22of the Budget Stabilization Act.
23    The obligations created by this subsection (c) expire when
24all of the requirements of subsections (c-5) and (c-10) of
25Section 20 of the Budget Stabilization Act and Section 25 of
26the Budget Stabilization Act have been met.

 

 

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1    (d) Any payments and transfers required to be made by the
2State pursuant to subsection (b) or (c) are expressly
3subordinate to the payment of the principal, interest, and
4premium, if any, on any bonded debt obligation of the State or
5any other State-created entity, either currently outstanding
6or to be issued, for which the source of repayment or security
7thereon is derived directly or indirectly from tax revenues
8collected by the State or any other State-created entity.
9Payments on such bonded obligations include any statutory fund
10transfers or other prefunding mechanisms or formulas set forth,
11now or hereafter, in State law or bond indentures, into debt
12service funds or accounts of the State related to such bond
13obligations, consistent with the payment schedules associated
14with such obligations.
15(Source: P.A. 83-1440.)
 
16    (40 ILCS 5/15-157)  (from Ch. 108 1/2, par. 15-157)
17    Sec. 15-157. Employee Contributions.
18    (a) Except as provided in subsection (a-5), each Each
19participating employee shall make contributions towards the
20retirement benefits payable under the retirement program
21applicable to the employee from each payment of earnings
22applicable to employment under this system on and after the
23date of becoming a participant as follows: Prior to September
241, 1949, 3 1/2% of earnings; from September 1, 1949 to August
2531, 1955, 5%; from September 1, 1955 to August 31, 1969, 6%;

 

 

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1from September 1, 1969, 6 1/2%. These contributions are to be
2considered as normal contributions for purposes of this
3Article.
4    Except as provided in subsection (a-5), each Each
5participant who is a police officer or firefighter shall make
6normal contributions of 8% of each payment of earnings
7applicable to employment as a police officer or firefighter
8under this system on or after September 1, 1981, unless he or
9she files with the board within 60 days after the effective
10date of this amendatory Act of 1991 or 60 days after the board
11receives notice that he or she is employed as a police officer
12or firefighter, whichever is later, a written notice waiving
13the retirement formula provided by Rule 4 of Section 15-136.
14This waiver shall be irrevocable. If a participant had met the
15conditions set forth in Section 15-132.1 prior to the effective
16date of this amendatory Act of 1991 but failed to make the
17additional normal contributions required by this paragraph, he
18or she may elect to pay the additional contributions plus
19compound interest at the effective rate. If such payment is
20received by the board, the service shall be considered as
21police officer service in calculating the retirement annuity
22under Rule 4 of Section 15-136. While performing service
23described in clause (i) or (ii) of Rule 4 of Section 15-136, a
24participating employee shall be deemed to be employed as a
25firefighter for the purpose of determining the rate of employee
26contributions under this Section.

 

 

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1    (a-5) Beginning July 1, 2014, in lieu of the contribution
2otherwise required under subsection (a), each Tier 1 member,
3other than a Tier 1 member who is a police officer or
4firefighter, shall contribute 6% of earnings toward the
5retirement benefits payable under the retirement programs
6applicable to the employee from each payment of earnings
7applicable to employment under this system.
8    Beginning July 1, 2014, in lieu of the contribution
9otherwise required under subsection (a), each Tier 1 member who
10is a police officer or firefighter shall contribute 7.5% of
11each payment of earnings applicable to employment as a police
12officer or firefighter under this system, unless he or she has
13filed a waiver with the board pursuant to subsection (a).
14    The contributions required under this subsection (a-5) are
15to be considered normal contributions for the purposes of this
16Article.
17    (b) Starting September 1, 1969 and, in the case of Tier 1
18members, ending on June 30, 2014, each participating employee
19shall make additional contributions of 1/2 of 1% of earnings to
20finance a portion of the cost of the annual increases in
21retirement annuity provided under Section 15-136, except that
22with respect to participants in the self-managed plan this
23additional contribution shall be used to finance the benefits
24obtained under that retirement program.
25    (c) In addition to the amounts described in subsections (a)
26and (b) of this Section, each participating employee shall make

 

 

SB0001CCR001- 219 -LRB098 05457 EFG 50220 c

1contributions of 1% of earnings applicable under this system on
2and after August 1, 1959. The contributions made under this
3subsection (c) shall be considered as survivor's insurance
4contributions for purposes of this Article if the employee is
5covered under the traditional benefit package, and such
6contributions shall be considered as additional contributions
7for purposes of this Article if the employee is participating
8in the self-managed plan or has elected to participate in the
9portable benefit package and has completed the applicable
10one-year waiting period. Contributions in excess of $80 during
11any fiscal year beginning before August 31, 1969 and in excess
12of $120 during any fiscal year thereafter until September 1,
131971 shall be considered as additional contributions for
14purposes of this Article.
15    (d) If the board by board rule so permits and subject to
16such conditions and limitations as may be specified in its
17rules, a participant may make other additional contributions of
18such percentage of earnings or amounts as the participant shall
19elect in a written notice thereof received by the board.
20    (e) That fraction of a participant's total accumulated
21normal contributions, the numerator of which is equal to the
22number of years of service in excess of that which is required
23to qualify for the maximum retirement annuity, and the
24denominator of which is equal to the total service of the
25participant, shall be considered as accumulated additional
26contributions. The determination of the applicable maximum

 

 

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1annuity and the adjustment in contributions required by this
2provision shall be made as of the date of the participant's
3retirement.
4    (f) Notwithstanding the foregoing, a participating
5employee shall not be required to make contributions under this
6Section after the date upon which continuance of such
7contributions would otherwise cause his or her retirement
8annuity to exceed the maximum retirement annuity as specified
9in clause (1) of subsection (c) of Section 15-136.
10    (g) A participating employee may make contributions for the
11purchase of service credit under this Article.
12    (h) A Tier 2 member shall not make contributions on
13earnings that exceed the limitation as prescribed under
14subsection (b) of Section 15-111 of this Article.
15(Source: P.A. 98-92, eff. 7-16-13.)
 
16    (40 ILCS 5/15-157.5 new)
17    Sec. 15-157.5. Use of contributions for health care
18subsidies. The System shall not use any contribution received
19by the System under this Article to provide a subsidy for the
20cost of participation in a retiree health care program.
 
21    (40 ILCS 5/15-165)   (from Ch. 108 1/2, par. 15-165)
22    Sec. 15-165. To certify amounts and submit vouchers.
23    (a) The Board shall certify to the Governor on or before
24November 15 of each year until November 15, 2011 the

 

 

SB0001CCR001- 221 -LRB098 05457 EFG 50220 c

1appropriation required from State funds for the purposes of
2this System for the following fiscal year. The certification
3under this subsection (a) shall include a copy of the actuarial
4recommendations upon which it is based and shall specifically
5identify the System's projected State normal cost for that
6fiscal year and the projected State cost for the self-managed
7plan for that fiscal year.
8    On or before May 1, 2004, the Board shall recalculate and
9recertify to the Governor the amount of the required State
10contribution to the System for State fiscal year 2005, taking
11into account the amounts appropriated to and received by the
12System under subsection (d) of Section 7.2 of the General
13Obligation Bond Act.
14    On or before July 1, 2005, the Board shall recalculate and
15recertify to the Governor the amount of the required State
16contribution to the System for State fiscal year 2006, taking
17into account the changes in required State contributions made
18by this amendatory Act of the 94th General Assembly.
19    On or before April 1, 2011, the Board shall recalculate and
20recertify to the Governor the amount of the required State
21contribution to the System for State fiscal year 2011, applying
22the changes made by Public Act 96-889 to the System's assets
23and liabilities as of June 30, 2009 as though Public Act 96-889
24was approved on that date.
25    (a-5) On or before November 1 of each year, beginning
26November 1, 2012, the Board shall submit to the State Actuary,

 

 

SB0001CCR001- 222 -LRB098 05457 EFG 50220 c

1the Governor, and the General Assembly a proposed certification
2of the amount of the required State contribution to the System
3for the next fiscal year, along with all of the actuarial
4assumptions, calculations, and data upon which that proposed
5certification is based. On or before January 1 of each year,
6beginning January 1, 2013, the State Actuary shall issue a
7preliminary report concerning the proposed certification and
8identifying, if necessary, recommended changes in actuarial
9assumptions that the Board must consider before finalizing its
10certification of the required State contributions. On or before
11January 15, 2013 and each January 15 thereafter, the Board
12shall certify to the Governor and the General Assembly the
13amount of the required State contribution for the next fiscal
14year. The Board's certification must note, in a written
15response to the State Actuary, any deviations from the State
16Actuary's recommended changes, the reason or reasons for not
17following the State Actuary's recommended changes, and the
18fiscal impact of not following the State Actuary's recommended
19changes on the required State contribution.
20    (a-10) For purposes of Section (c-5) of Section 20 of the
21Budget Stabilization Act, on or before November 1 of each year
22beginning November 1, 2014, the Board shall determine the
23amount of the State contribution to the System that would have
24been required for the next fiscal year if this amendatory Act
25of the 98th General Assembly had not taken effect, using the
26best and most recent available data but based on the law in

 

 

SB0001CCR001- 223 -LRB098 05457 EFG 50220 c

1effect on May 31, 2014. The Board shall submit to the State
2Actuary, the Governor, and the General Assembly a proposed
3certification, along with the relevant law, actuarial
4assumptions, calculations, and data upon which that
5certification is based. On or before January 1, 2015 and every
6January 1 thereafter, the State Actuary shall issue a
7preliminary report concerning the proposed certification and
8identifying, if necessary, recommended changes in actuarial
9assumptions that the Board must consider before finalizing its
10certification. On or before January 15, 2015 and every January
111 thereafter, the Board shall certify to the Governor and the
12General Assembly the amount of the State contribution to the
13System that would have been required for the next fiscal year
14if this amendatory Act of the 98th General Assembly had not
15taken effect, using the best and most recent available data but
16based on the law in effect on May 31, 2014. The Board's
17certification must note any deviations from the State Actuary's
18recommended changes, the reason or reasons for not following
19the State Actuary's recommended changes, and the impact of not
20following the State Actuary's recommended changes.
21    (b) The Board shall certify to the State Comptroller or
22employer, as the case may be, from time to time, by its
23chairperson and secretary, with its seal attached, the amounts
24payable to the System from the various funds.
25    (c) Beginning in State fiscal year 1996, on or as soon as
26possible after the 15th day of each month the Board shall

 

 

SB0001CCR001- 224 -LRB098 05457 EFG 50220 c

1submit vouchers for payment of State contributions to the
2System, in a total monthly amount of one-twelfth of the
3required annual State contribution certified under subsection
4(a). From the effective date of this amendatory Act of the 93rd
5General Assembly through June 30, 2004, the Board shall not
6submit vouchers for the remainder of fiscal year 2004 in excess
7of the fiscal year 2004 certified contribution amount
8determined under this Section after taking into consideration
9the transfer to the System under subsection (b) of Section
106z-61 of the State Finance Act. These vouchers shall be paid by
11the State Comptroller and Treasurer by warrants drawn on the
12funds appropriated to the System for that fiscal year.
13    If in any month the amount remaining unexpended from all
14other appropriations to the System for the applicable fiscal
15year (including the appropriations to the System under Section
168.12 of the State Finance Act and Section 1 of the State
17Pension Funds Continuing Appropriation Act) is less than the
18amount lawfully vouchered under this Section, the difference
19shall be paid from the General Revenue Fund under the
20continuing appropriation authority provided in Section 1.1 of
21the State Pension Funds Continuing Appropriation Act.
22    (d) So long as the payments received are the full amount
23lawfully vouchered under this Section, payments received by the
24System under this Section shall be applied first toward the
25employer contribution to the self-managed plan established
26under Section 15-158.2. Payments shall be applied second toward

 

 

SB0001CCR001- 225 -LRB098 05457 EFG 50220 c

1the employer's portion of the normal costs of the System, as
2defined in subsection (f) of Section 15-155. The balance shall
3be applied toward the unfunded actuarial liabilities of the
4System.
5    (e) In the event that the System does not receive, as a
6result of legislative enactment or otherwise, payments
7sufficient to fully fund the employer contribution to the
8self-managed plan established under Section 15-158.2 and to
9fully fund that portion of the employer's portion of the normal
10costs of the System, as calculated in accordance with Section
1115-155(a-1), then any payments received shall be applied
12proportionately to the optional retirement program established
13under Section 15-158.2 and to the employer's portion of the
14normal costs of the System, as calculated in accordance with
15Section 15-155(a-1).
16(Source: P.A. 97-694, eff. 6-18-12; 98-92, eff. 7-16-13.)
 
17    (40 ILCS 5/15-198)
18    Sec. 15-198. Application and expiration of new benefit
19increases.
20    (a) As used in this Section, "new benefit increase" means
21an increase in the amount of any benefit provided under this
22Article, or an expansion of the conditions of eligibility for
23any benefit under this Article, that results from an amendment
24to this Code that takes effect after the effective date of this
25amendatory Act of the 94th General Assembly. "New benefit

 

 

SB0001CCR001- 226 -LRB098 05457 EFG 50220 c

1increase", however, does not include any benefit increase
2resulting from the changes made by this amendatory Act of the
398th General Assembly.
4    (b) Notwithstanding any other provision of this Code or any
5subsequent amendment to this Code, every new benefit increase
6is subject to this Section and shall be deemed to be granted
7only in conformance with and contingent upon compliance with
8the provisions of this Section.
9    (c) The Public Act enacting a new benefit increase must
10identify and provide for payment to the System of additional
11funding at least sufficient to fund the resulting annual
12increase in cost to the System as it accrues.
13    Every new benefit increase is contingent upon the General
14Assembly providing the additional funding required under this
15subsection. The Commission on Government Forecasting and
16Accountability shall analyze whether adequate additional
17funding has been provided for the new benefit increase and
18shall report its analysis to the Public Pension Division of the
19Department of Insurance Financial and Professional Regulation.
20A new benefit increase created by a Public Act that does not
21include the additional funding required under this subsection
22is null and void. If the Public Pension Division determines
23that the additional funding provided for a new benefit increase
24under this subsection is or has become inadequate, it may so
25certify to the Governor and the State Comptroller and, in the
26absence of corrective action by the General Assembly, the new

 

 

SB0001CCR001- 227 -LRB098 05457 EFG 50220 c

1benefit increase shall expire at the end of the fiscal year in
2which the certification is made.
3    (d) Every new benefit increase shall expire 5 years after
4its effective date or on such earlier date as may be specified
5in the language enacting the new benefit increase or provided
6under subsection (c). This does not prevent the General
7Assembly from extending or re-creating a new benefit increase
8by law.
9    (e) Except as otherwise provided in the language creating
10the new benefit increase, a new benefit increase that expires
11under this Section continues to apply to persons who applied
12and qualified for the affected benefit while the new benefit
13increase was in effect and to the affected beneficiaries and
14alternate payees of such persons, but does not apply to any
15other person, including without limitation a person who
16continues in service after the expiration date and did not
17apply and qualify for the affected benefit while the new
18benefit increase was in effect.
19(Source: P.A. 94-4, eff. 6-1-05.)
 
20    (40 ILCS 5/15-200 new)
21    Sec. 15-200. Defined contribution plan.
22    (a) By July 1, 2015, the System shall prepare and implement
23a voluntary defined contribution plan for up to 5% of eligible
24active Tier 1 members. The System shall determine the 5% cap by
25the number of active Tier 1 members on the effective date of

 

 

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1this Section. The defined contribution plan developed under
2this Section shall be a plan that aggregates employer and
3employee contributions in individual participant accounts
4which, after meeting any other requirements, are used for
5payouts after retirement in accordance with this Section and
6any other applicable laws.
7    As used in this Section, "defined benefit plan" means the
8retirement plan available under this Article to Tier 1 members
9who have not made the election authorized under this Section.
10        (1) Under the defined contribution plan, an active Tier
11    1 member of this System could elect to cease accruing
12    benefits in the defined benefit plan under this Article and
13    begin accruing benefits for future service in the defined
14    contribution plan. Service credit under the defined
15    contribution plan may be used for determining retirement
16    eligibility under the defined benefit plan. An active Tier
17    1 member who elects to cease accruing benefits in his or
18    her defined benefit plan shall be prohibited from
19    purchasing service credit on or after the date of his or
20    her election. A Tier 1 member making the irrevocable
21    election provided under this Section shall not receive
22    interest accruals to his or her Rule 2 benefit on or after
23    the date of his or her election.
24        (2) Participants in the defined contribution plan
25    shall pay employee contributions at the same rate as other
26    participants under this Article as determined by the

 

 

SB0001CCR001- 229 -LRB098 05457 EFG 50220 c

1    System.
2        (3) State contributions shall be paid into the accounts
3    of all participants in the defined contribution plan at a
4    uniform rate, expressed as a percentage of earnings and
5    determined for each year. This rate shall be no higher than
6    the employer's normal cost for Tier 1 members in the
7    defined benefit plan for that year, as determined by the
8    System and expressed as a percentage of earnings, and shall
9    be no lower than 3% of earnings. The State shall adjust
10    this rate annually.
11        (4) The defined contribution plan shall require 5 years
12    of participation in the defined contribution plan before
13    vesting in State contributions. If the participant fails to
14    vest in them, the State contributions, and the earnings
15    thereon, shall be forfeited.
16        (5) The defined contribution plan may provide for
17    participants in the plan to be eligible for the defined
18    disability benefits available to other participants under
19    this Article. If it does, the System shall reduce the
20    employee contributions credited to the member's defined
21    contribution plan account by an amount determined by the
22    System to cover the cost of offering such benefits.
23        (6) The defined contribution plan shall provide a
24    variety of options for investments. These options shall
25    include investments handled by the System as well as
26    private sector investment options.

 

 

SB0001CCR001- 230 -LRB098 05457 EFG 50220 c

1        (7) The defined contribution plan shall provide a
2    variety of options for payouts to retirees and their
3    survivors.
4        (8) To the extent authorized under federal law and as
5    authorized by the System, the plan shall allow former
6    participants in the plan to transfer or roll over employee
7    and vested State contributions, and the earnings thereon,
8    into other qualified retirement plans.
9        (9) The System shall reduce the employee contributions
10    credited to the member's defined contribution plan account
11    by an amount determined by the System to cover the cost of
12    offering these benefits and any applicable administrative
13    fees.
14    (b) Only persons who are active Tier 1 members of the
15System on the effective date of this Section are eligible to
16participate in the defined contribution plan. Participation in
17the defined contribution plan shall be limited to the first 5%
18of eligible persons who elect to participate. The election to
19participate in the defined contribution plan is voluntary and
20irrevocable.
21    (c) An eligible Tier 1 employee may irrevocably elect to
22participate in the defined contribution plan by filing with the
23System a written application to participate that is received by
24the System prior to its determination that 5% of eligible
25persons have elected to participate in the defined contribution
26plan.

 

 

SB0001CCR001- 231 -LRB098 05457 EFG 50220 c

1    When the System first determines that 5% of eligible
2persons have elected to participate in the defined contribution
3plan, the System shall provide notice to previously eligible
4employees that the plan is no longer available and shall cease
5accepting applications to participate.
6    (d) The System shall make a good faith effort to contact
7each active Tier 1 member who is eligible to participate in the
8defined contribution plan. The System shall mail information
9describing the option to join the defined contribution plan to
10each of these employees to his or her last known address on
11file with the System. If the employee is not responsive to
12other means of contact, it is sufficient for the System to
13publish the details of the option on its website.
14    Upon request for further information describing the
15option, the System shall provide employees with information
16from the System before exercising the option to join the plan,
17including information on the impact to their vested benefits or
18non-vested service. The individual consultation shall include
19projections of the member's defined benefits at retirement or
20earlier termination of service and the value of the member's
21account at retirement or earlier termination of service. The
22System shall not provide advice or counseling with respect to
23whether the employee should exercise the option. The System
24shall inform Tier 1 employees who are eligible to participate
25in the defined contribution plan that they may also wish to
26obtain information and counsel relating to their option from

 

 

SB0001CCR001- 232 -LRB098 05457 EFG 50220 c

1any other available source, including but not limited to labor
2organizations, private counsel, and financial advisors.
3    (e) In no event shall the System, its staff, its authorized
4representatives, or the Board be liable for any information
5given to an employee under this Section. The System may
6coordinate with the Illinois Department of Central Management
7Services and other retirement systems administering a defined
8contribution plan in accordance with this amendatory Act of the
998th General Assembly to provide information concerning the
10impact of the option set forth in this Section.
11    (f) Notwithstanding any other provision of this Section, no
12person shall begin participating in the defined contribution
13plan until it has attained qualified plan status and received
14all necessary approvals from the U.S. Internal Revenue Service.
15    (g) The System shall report on its progress under this
16Section, including the available details of the defined
17contribution plan and the System's plans for informing eligible
18Tier 1 members about the plan, to the Governor and the General
19Assembly on or before January 15, 2015.
20    (h) If an active Tier 1 member has not made an election
21under Section 15-134.5 of this Code, then the plan prescribed
22under this Section shall not apply to that Tier 1 member and
23that Tier 1 member shall remain eligible to make the election
24prescribed under Section 15-134.5.
25    (i) The intent of this amendatory Act of the 98th General
26Assembly is to ensure that the State's normal cost of

 

 

SB0001CCR001- 233 -LRB098 05457 EFG 50220 c

1participation in the defined contribution plan is similar, and
2if possible equal, to the State's normal cost of participation
3in the defined benefit plan, unless a lower State's normal cost
4is necessary to ensure cost neutrality.
 
5    (40 ILCS 5/15-201 new)
6    Sec. 15-201. Defined contribution plan; termination. If
7the defined contribution plan is terminated or becomes
8inoperative pursuant to law, then each participant in the plan
9shall automatically be deemed to have been a contributing Tier
101 member participating in the System's defined benefit plan
11during the time in which he or she participated in the defined
12contribution plan, and for that purpose the System shall be
13entitled to recover the amounts in the participant's defined
14contribution accounts.
 
15    (40 ILCS 5/16-106)  (from Ch. 108 1/2, par. 16-106)
16    Sec. 16-106. Teacher. "Teacher": The following
17individuals, provided that, for employment prior to July 1,
181990, they are employed on a full-time basis, or if not
19full-time, on a permanent and continuous basis in a position in
20which services are expected to be rendered for at least one
21school term:
22        (1) Any educational, administrative, professional or
23    other staff employed in the public common schools included
24    within this system in a position requiring certification

 

 

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1    under the law governing the certification of teachers;
2        (2) Any educational, administrative, professional or
3    other staff employed in any facility of the Department of
4    Children and Family Services or the Department of Human
5    Services, in a position requiring certification under the
6    law governing the certification of teachers, and any person
7    who (i) works in such a position for the Department of
8    Corrections, (ii) was a member of this System on May 31,
9    1987, and (iii) did not elect to become a member of the
10    State Employees' Retirement System pursuant to Section
11    14-108.2 of this Code; except that "teacher" does not
12    include any person who (A) becomes a security employee of
13    the Department of Human Services, as defined in Section
14    14-110, after June 28, 2001 (the effective date of Public
15    Act 92-14), or (B) becomes a member of the State Employees'
16    Retirement System pursuant to Section 14-108.2c of this
17    Code;
18        (3) Any regional superintendent of schools, assistant
19    regional superintendent of schools, State Superintendent
20    of Education; any person employed by the State Board of
21    Education as an executive; any executive of the boards
22    engaged in the service of public common school education in
23    school districts covered under this system of which the
24    State Superintendent of Education is an ex-officio member;
25        (4) Any employee of a school board association
26    operating in compliance with Article 23 of the School Code

 

 

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1    who is certificated under the law governing the
2    certification of teachers, provided that he or she becomes
3    such an employee before the effective date of this
4    amendatory Act of the 98th General Assembly;
5        (5) Any person employed by the retirement system who:
6            (i) was an employee of and a participant in the
7        system on August 17, 2001 (the effective date of Public
8        Act 92-416), or
9            (ii) becomes an employee of the system on or after
10        August 17, 2001;
11        (6) Any educational, administrative, professional or
12    other staff employed by and under the supervision and
13    control of a regional superintendent of schools, provided
14    such employment position requires the person to be
15    certificated under the law governing the certification of
16    teachers and is in an educational program serving 2 or more
17    districts in accordance with a joint agreement authorized
18    by the School Code or by federal legislation;
19        (7) Any educational, administrative, professional or
20    other staff employed in an educational program serving 2 or
21    more school districts in accordance with a joint agreement
22    authorized by the School Code or by federal legislation and
23    in a position requiring certification under the laws
24    governing the certification of teachers;
25        (8) Any officer or employee of a statewide teacher
26    organization or officer of a national teacher organization

 

 

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1    who is certified under the law governing certification of
2    teachers, provided: (i) the individual had previously
3    established creditable service under this Article, (ii)
4    the individual files with the system an irrevocable
5    election to become a member before the effective date of
6    this amendatory Act of the 97th General Assembly, (iii) the
7    individual does not receive credit for such service under
8    any other Article of this Code, and (iv) the individual
9    first became an officer or employee of the teacher
10    organization and becomes a member before the effective date
11    of this amendatory Act of the 97th General Assembly;
12        (9) Any educational, administrative, professional, or
13    other staff employed in a charter school operating in
14    compliance with the Charter Schools Law who is certificated
15    under the law governing the certification of teachers;
16        (10) Any person employed, on the effective date of this
17    amendatory Act of the 94th General Assembly, by the
18    Macon-Piatt Regional Office of Education in a
19    birth-through-age-three pilot program receiving funds
20    under Section 2-389 of the School Code who is required by
21    the Macon-Piatt Regional Office of Education to hold a
22    teaching certificate, provided that the Macon-Piatt
23    Regional Office of Education makes an election, within 6
24    months after the effective date of this amendatory Act of
25    the 94th General Assembly, to have the person participate
26    in the system. Any service established prior to the

 

 

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1    effective date of this amendatory Act of the 94th General
2    Assembly for service as an employee of the Macon-Piatt
3    Regional Office of Education in a birth-through-age-three
4    pilot program receiving funds under Section 2-389 of the
5    School Code shall be considered service as a teacher if
6    employee and employer contributions have been received by
7    the system and the system has not refunded those
8    contributions.
9    An annuitant receiving a retirement annuity under this
10Article or under Article 17 of this Code who is employed by a
11board of education or other employer as permitted under Section
1216-118 or 16-150.1 is not a "teacher" for purposes of this
13Article. A person who has received a single-sum retirement
14benefit under Section 16-136.4 of this Article is not a
15"teacher" for purposes of this Article.
16(Source: P.A. 97-651, eff. 1-5-12; 98-463, eff. 8-16-13.)
 
17    (40 ILCS 5/16-106.4 new)
18    Sec. 16-106.4. Tier 1 member. "Tier 1 member": A member
19under this Article who first became a member or participant
20before January 1, 2011 under any reciprocal retirement system
21or pension fund established under this Code other than a
22retirement system or pension fund established under Article 2,
233, 4, 5, 6, or 18 of this Code.
 
24    (40 ILCS 5/16-112)  (from Ch. 108 1/2, par. 16-112)

 

 

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1    Sec. 16-112. Regular interest.
2"Regular interest":
3    (a) For computations based upon prior service credits,
4interest at the following rates compounded annually: For
5periods prior to July 1, 1947, 4% per year; for periods from
6July 1, 1947 through June 30, 1971, 3% per year; for periods
7from July 1, 1971 through June 30, 1977 at the rate of 4% per
8year; for periods from July 1, 1977 through June 30, 1981, 5%
9per year; for periods after June 30, 1981 through June 30,
102014, 6% per year.
11    (b) For computations based upon membership service
12credits, interest at the following rates, compounded annually:
13For periods prior to July 1, 1971, 3% per year; for periods
14from July 1, 1971 through June 30, 1977, 4% per year; for
15periods from July 1, 1977 through June 30, 1981, 5% per year;
16for periods after June 30, 1981 through June 30, 2014, 6% per
17year.
18    (c) For a fiscal year that begins on or after July 1, 2014,
19for all computations, the interest rate of 30-year United
20States Treasury bonds on July 1 of that given fiscal year, plus
2175 basis points.
22(Source: P.A. 83-1440.)
 
23    (40 ILCS 5/16-121)  (from Ch. 108 1/2, par. 16-121)
24    Sec. 16-121. Salary. "Salary": The actual compensation
25received by a teacher during any school year and recognized by

 

 

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1the system in accordance with rules of the board. For purposes
2of this Section, "school year" includes the regular school term
3plus any additional period for which a teacher is compensated
4and such compensation is recognized by the rules of the board.
5    In the case of a person who first becomes a member on or
6after the effective date of this amendatory Act of the 98th
7General Assembly, "salary" shall not include any payment for
8unused sick or vacation time.
9    Notwithstanding any other provision of this Code, the
10annual salary of a Tier 1 member for the purposes of this Code
11shall not exceed, for periods of service on or after the
12effective date of this amendatory Act of the 98th General
13Assembly, the greater of (i) the annual limitation determined
14from time to time under subsection (b-5) of Section 1-160 of
15this Code, (ii) the annualized salary of the Tier 1 member on
16that effective date, or (iii) the annualized salary of the Tier
171 member immediately preceding the expiration, renewal, or
18amendment of an employment contract or collective bargaining
19agreement in effect on that effective date.
20(Source: P.A. 84-1028.)
 
21    (40 ILCS 5/16-127)  (from Ch. 108 1/2, par. 16-127)
22    Sec. 16-127. Computation of creditable service.
23    (a) Each member shall receive regular credit for all
24service as a teacher from the date membership begins, for which
25satisfactory evidence is supplied and all contributions have

 

 

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1been paid.
2    (b) The following periods of service shall earn optional
3credit and each member shall receive credit for all such
4service for which satisfactory evidence is supplied and all
5contributions have been paid as of the date specified:
6        (1) Prior service as a teacher.
7        (2) Service in a capacity essentially similar or
8    equivalent to that of a teacher, in the public common
9    schools in school districts in this State not included
10    within the provisions of this System, or of any other
11    State, territory, dependency or possession of the United
12    States, or in schools operated by or under the auspices of
13    the United States, or under the auspices of any agency or
14    department of any other State, and service during any
15    period of professional speech correction or special
16    education experience for a public agency within this State
17    or any other State, territory, dependency or possession of
18    the United States, and service prior to February 1, 1951 as
19    a recreation worker for the Illinois Department of Public
20    Safety, for a period not exceeding the lesser of 2/5 of the
21    total creditable service of the member or 10 years. The
22    maximum service of 10 years which is allowable under this
23    paragraph shall be reduced by the service credit which is
24    validated by other retirement systems under paragraph (i)
25    of Section 15-113 and paragraph 1 of Section 17-133. Credit
26    granted under this paragraph may not be used in

 

 

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1    determination of a retirement annuity or disability
2    benefits unless the member has at least 5 years of
3    creditable service earned subsequent to this employment
4    with one or more of the following systems: Teachers'
5    Retirement System of the State of Illinois, State
6    Universities Retirement System, and the Public School
7    Teachers' Pension and Retirement Fund of Chicago. Whenever
8    such service credit exceeds the maximum allowed for all
9    purposes of this Article, the first service rendered in
10    point of time shall be considered. The changes to this
11    subdivision (b)(2) made by Public Act 86-272 shall apply
12    not only to persons who on or after its effective date
13    (August 23, 1989) are in service as a teacher under the
14    System, but also to persons whose status as such a teacher
15    terminated prior to such effective date, whether or not
16    such person is an annuitant on that date.
17        (3) Any periods immediately following teaching
18    service, under this System or under Article 17, (or
19    immediately following service prior to February 1, 1951 as
20    a recreation worker for the Illinois Department of Public
21    Safety) spent in active service with the military forces of
22    the United States; periods spent in educational programs
23    that prepare for return to teaching sponsored by the
24    federal government following such active military service;
25    if a teacher returns to teaching service within one
26    calendar year after discharge or after the completion of

 

 

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1    the educational program, a further period, not exceeding
2    one calendar year, between time spent in military service
3    or in such educational programs and the return to
4    employment as a teacher under this System; and a period of
5    up to 2 years of active military service not immediately
6    following employment as a teacher.
7        The changes to this Section and Section 16-128 relating
8    to military service made by P.A. 87-794 shall apply not
9    only to persons who on or after its effective date are in
10    service as a teacher under the System, but also to persons
11    whose status as a teacher terminated prior to that date,
12    whether or not the person is an annuitant on that date. In
13    the case of an annuitant who applies for credit allowable
14    under this Section for a period of military service that
15    did not immediately follow employment, and who has made the
16    required contributions for such credit, the annuity shall
17    be recalculated to include the additional service credit,
18    with the increase taking effect on the date the System
19    received written notification of the annuitant's intent to
20    purchase the credit, if payment of all the required
21    contributions is made within 60 days of such notice, or
22    else on the first annuity payment date following the date
23    of payment of the required contributions. In calculating
24    the automatic annual increase for an annuity that has been
25    recalculated under this Section, the increase attributable
26    to the additional service allowable under P.A. 87-794 shall

 

 

SB0001CCR001- 243 -LRB098 05457 EFG 50220 c

1    be included in the calculation of automatic annual
2    increases accruing after the effective date of the
3    recalculation.
4        Credit for military service shall be determined as
5    follows: if entry occurs during the months of July, August,
6    or September and the member was a teacher at the end of the
7    immediately preceding school term, credit shall be granted
8    from July 1 of the year in which he or she entered service;
9    if entry occurs during the school term and the teacher was
10    in teaching service at the beginning of the school term,
11    credit shall be granted from July 1 of such year. In all
12    other cases where credit for military service is allowed,
13    credit shall be granted from the date of entry into the
14    service.
15        The total period of military service for which credit
16    is granted shall not exceed 5 years for any member unless
17    the service: (A) is validated before July 1, 1964, and (B)
18    does not extend beyond July 1, 1963. Credit for military
19    service shall be granted under this Section only if not
20    more than 5 years of the military service for which credit
21    is granted under this Section is used by the member to
22    qualify for a military retirement allotment from any branch
23    of the armed forces of the United States. The changes to
24    this subdivision (b)(3) made by Public Act 86-272 shall
25    apply not only to persons who on or after its effective
26    date (August 23, 1989) are in service as a teacher under

 

 

SB0001CCR001- 244 -LRB098 05457 EFG 50220 c

1    the System, but also to persons whose status as such a
2    teacher terminated prior to such effective date, whether or
3    not such person is an annuitant on that date.
4        (4) Any periods served as a member of the General
5    Assembly.
6        (5)(i) Any periods for which a teacher, as defined in
7    Section 16-106, is granted a leave of absence, provided he
8    or she returns to teaching service creditable under this
9    System or the State Universities Retirement System
10    following the leave; (ii) periods during which a teacher is
11    involuntarily laid off from teaching, provided he or she
12    returns to teaching following the lay-off; (iii) periods
13    prior to July 1, 1983 during which a teacher ceased covered
14    employment due to pregnancy, provided that the teacher
15    returned to teaching service creditable under this System
16    or the State Universities Retirement System following the
17    pregnancy and submits evidence satisfactory to the Board
18    documenting that the employment ceased due to pregnancy;
19    and (iv) periods prior to July 1, 1983 during which a
20    teacher ceased covered employment for the purpose of
21    adopting an infant under 3 years of age or caring for a
22    newly adopted infant under 3 years of age, provided that
23    the teacher returned to teaching service creditable under
24    this System or the State Universities Retirement System
25    following the adoption and submits evidence satisfactory
26    to the Board documenting that the employment ceased for the

 

 

SB0001CCR001- 245 -LRB098 05457 EFG 50220 c

1    purpose of adopting an infant under 3 years of age or
2    caring for a newly adopted infant under 3 years of age.
3    However, total credit under this paragraph (5) may not
4    exceed 3 years.
5        Any qualified member or annuitant may apply for credit
6    under item (iii) or (iv) of this paragraph (5) without
7    regard to whether service was terminated before the
8    effective date of this amendatory Act of 1997. In the case
9    of an annuitant who establishes credit under item (iii) or
10    (iv), the annuity shall be recalculated to include the
11    additional service credit. The increase in annuity shall
12    take effect on the date the System receives written
13    notification of the annuitant's intent to purchase the
14    credit, if the required evidence is submitted and the
15    required contribution paid within 60 days of that
16    notification, otherwise on the first annuity payment date
17    following the System's receipt of the required evidence and
18    contribution. The increase in an annuity recalculated
19    under this provision shall be included in the calculation
20    of automatic annual increases in the annuity accruing after
21    the effective date of the recalculation.
22        Optional credit may be purchased under this subsection
23    (b)(5) for periods during which a teacher has been granted
24    a leave of absence pursuant to Section 24-13 of the School
25    Code. A teacher whose service under this Article terminated
26    prior to the effective date of P.A. 86-1488 shall be

 

 

SB0001CCR001- 246 -LRB098 05457 EFG 50220 c

1    eligible to purchase such optional credit. If a teacher who
2    purchases this optional credit is already receiving a
3    retirement annuity under this Article, the annuity shall be
4    recalculated as if the annuitant had applied for the leave
5    of absence credit at the time of retirement. The difference
6    between the entitled annuity and the actual annuity shall
7    be credited to the purchase of the optional credit. The
8    remainder of the purchase cost of the optional credit shall
9    be paid on or before April 1, 1992.
10        The change in this paragraph made by Public Act 86-273
11    shall be applicable to teachers who retire after June 1,
12    1989, as well as to teachers who are in service on that
13    date.
14        (6) For a person who first becomes a member before the
15    effective date of this amendatory Act of the 98th General
16    Assembly, any Any days of unused and uncompensated
17    accumulated sick leave earned by a teacher. The service
18    credit granted under this paragraph shall be the ratio of
19    the number of unused and uncompensated accumulated sick
20    leave days to 170 days, subject to a maximum of 2 years of
21    service credit. Prior to the member's retirement, each
22    former employer shall certify to the System the number of
23    unused and uncompensated accumulated sick leave days
24    credited to the member at the time of termination of
25    service. The period of unused sick leave shall not be
26    considered in determining the effective date of

 

 

SB0001CCR001- 247 -LRB098 05457 EFG 50220 c

1    retirement. A member is not required to make contributions
2    in order to obtain service credit for unused sick leave.
3        Credit for sick leave shall, at retirement, be granted
4    by the System for any retiring regional or assistant
5    regional superintendent of schools who first becomes a
6    member before the effective date of this amendatory Act of
7    the 98th General Assembly at the rate of 6 days per year of
8    creditable service or portion thereof established while
9    serving as such superintendent or assistant
10    superintendent.
11        (7) Periods prior to February 1, 1987 served as an
12    employee of the Illinois Mathematics and Science Academy
13    for which credit has not been terminated under Section
14    15-113.9 of this Code.
15        (8) Service as a substitute teacher for work performed
16    prior to July 1, 1990.
17        (9) Service as a part-time teacher for work performed
18    prior to July 1, 1990.
19        (10) Up to 2 years of employment with Southern Illinois
20    University - Carbondale from September 1, 1959 to August
21    31, 1961, or with Governors State University from September
22    1, 1972 to August 31, 1974, for which the teacher has no
23    credit under Article 15. To receive credit under this item
24    (10), a teacher must apply in writing to the Board and pay
25    the required contributions before May 1, 1993 and have at
26    least 12 years of service credit under this Article.

 

 

SB0001CCR001- 248 -LRB098 05457 EFG 50220 c

1    (b-1) A member may establish optional credit for up to 2
2years of service as a teacher or administrator employed by a
3private school recognized by the Illinois State Board of
4Education, provided that the teacher (i) was certified under
5the law governing the certification of teachers at the time the
6service was rendered, (ii) applies in writing on or after
7August 1, 2009 and on or before August 1, 2012, (iii) supplies
8satisfactory evidence of the employment, (iv) completes at
9least 10 years of contributing service as a teacher as defined
10in Section 16-106, and (v) pays the contribution required in
11subsection (d-5) of Section 16-128. The member may apply for
12credit under this subsection and pay the required contribution
13before completing the 10 years of contributing service required
14under item (iv), but the credit may not be used until the item
15(iv) contributing service requirement has been met.
16    (c) The service credits specified in this Section shall be
17granted only if: (1) such service credits are not used for
18credit in any other statutory tax-supported public employee
19retirement system other than the federal Social Security
20program; and (2) the member makes the required contributions as
21specified in Section 16-128. Except as provided in subsection
22(b-1) of this Section, the service credit shall be effective as
23of the date the required contributions are completed.
24    Any service credits granted under this Section shall
25terminate upon cessation of membership for any cause.
26    Credit may not be granted under this Section covering any

 

 

SB0001CCR001- 249 -LRB098 05457 EFG 50220 c

1period for which an age retirement or disability retirement
2allowance has been paid.
3(Source: P.A. 96-546, eff. 8-17-09.)
 
4    (40 ILCS 5/16-132)  (from Ch. 108 1/2, par. 16-132)
5    Sec. 16-132. Retirement annuity eligibility.
6    (a) A member who has at least 20 years of creditable
7service is entitled to a retirement annuity upon or after
8attainment of age 55. A member who has at least 10 but less
9than 20 years of creditable service is entitled to a retirement
10annuity upon or after attainment of age 60. A member who has at
11least 5 but less than 10 years of creditable service is
12entitled to a retirement annuity upon or after attainment of
13age 62. A member who (i) has earned during the period
14immediately preceding the last day of service at least one year
15of contributing creditable service as an employee of a
16department as defined in Section 14-103.04, (ii) has earned at
17least 5 years of contributing creditable service as an employee
18of a department as defined in Section 14-103.04, and (iii)
19retires on or after January 1, 2001 is entitled to a retirement
20annuity upon or after attainment of an age which, when added to
21the number of years of his or her total creditable service,
22equals at least 85. Portions of years shall be counted as
23decimal equivalents.
24    A member who is eligible to receive a retirement annuity of
25at least 74.6% of final average salary and will attain age 55

 

 

SB0001CCR001- 250 -LRB098 05457 EFG 50220 c

1on or before December 31 during the year which commences on
2July 1 shall be deemed to attain age 55 on the preceding June
31.
4    (b) Notwithstanding subsection (a) of this Section, for a
5Tier 1 member who begins receiving a retirement annuity under
6this Section on or after July 1, 2014, the required retirement
7age under subsection (a) is increased as follows, based on the
8Tier 1 member's age on June 1, 2014:
9        (1) If he or she is at least age 46 on June 1, 2014,
10    then the required retirement ages under subsection (a)
11    remain unchanged.
12        (2) If he or she is at least age 45 but less than age 46
13    on June 1, 2014, then the required retirement ages under
14    subsection (a) are increased by 4 months.
15        (3) If he or she is at least age 44 but less than age 45
16    on June 1, 2014, then the required retirement ages under
17    subsection (a) are increased by 8 months.
18        (4) If he or she is at least age 43 but less than age 44
19    on June 1, 2014, then the required retirement ages under
20    subsection (a) are increased by 12 months.
21        (5) If he or she is at least age 42 but less than age 43
22    on June 1, 2014, then the required retirement ages under
23    subsection (a) are increased by 16 months.
24        (6) If he or she is at least age 41 but less than age 42
25    on June 1, 2014, then the required retirement ages under
26    subsection (a) are increased by 20 months.

 

 

SB0001CCR001- 251 -LRB098 05457 EFG 50220 c

1        (7) If he or she is at least age 40 but less than age 41
2    on June 1, 2014, then the required retirement ages under
3    subsection (a) are increased by 24 months.
4        (8) If he or she is at least age 39 but less than age 40
5    on June 1, 2014, then the required retirement ages under
6    subsection (a) are increased by 28 months.
7        (9) If he or she is at least age 38 but less than age 39
8    on June 1, 2014, then the required retirement ages under
9    subsection (a) are increased by 32 months.
10        (10) If he or she is at least age 37 but less than age
11    38 on June 1, 2014, then the required retirement ages under
12    subsection (a) are increased by 36 months.
13        (11) If he or she is at least age 36 but less than age
14    37 on June 1, 2014, then the required retirement ages under
15    subsection (a) are increased by 40 months.
16        (12) If he or she is at least age 35 but less than age
17    36 on June 1, 2014, then the required retirement ages under
18    subsection (a) are increased by 44 months.
19        (13) If he or she is at least age 34 but less than age
20    35 on June 1, 2014, then the required retirement ages under
21    subsection (a) are increased by 48 months.
22        (14) If he or she is at least age 33 but less than age
23    34 on June 1, 2014, then the required retirement ages under
24    subsection (a) are increased by 52 months.
25        (15) If he or she is at least age 32 but less than age
26    33 on June 1, 2014, then the required retirement ages under

 

 

SB0001CCR001- 252 -LRB098 05457 EFG 50220 c

1    subsection (a) are increased by 56 months.
2        (16) If he or she is less than age 32 on June 1, 2014,
3    then the required retirement ages under subsection (a) are
4    increased by 60 months.
5    Notwithstanding Section 1-103.1, this subsection (b)
6applies without regard to whether or not the Tier 1 member is
7in active service under this Article on or after the effective
8date of this amendatory Act of the 98th General Assembly.
9    (c) A member meeting the above eligibility conditions is
10entitled to a retirement annuity upon written application to
11the board setting forth the date the member wishes the
12retirement annuity to commence. However, the effective date of
13the retirement annuity shall be no earlier than the day
14following the last day of creditable service, regardless of the
15date of official termination of employment.
16    (d) To be eligible for a retirement annuity, a member shall
17not be employed as a teacher in the schools included under this
18System or under Article 17, except (i) as provided in Section
1916-118 or 16-150.1, (ii) if the member is disabled (in which
20event, eligibility for salary must cease), or (iii) if the
21System is required by federal law to commence payment due to
22the member's age; the changes to this sentence made by Public
23Act 93-320 this amendatory Act of the 93rd General Assembly
24apply without regard to whether the member terminated
25employment before or after its effective date.
26(Source: P.A. 93-320, eff. 7-23-03.)
 

 

 

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1    (40 ILCS 5/16-133)  (from Ch. 108 1/2, par. 16-133)
2    Sec. 16-133. Retirement annuity; amount.
3    (a) The amount of the retirement annuity shall be (i) in
4the case of a person who first became a teacher under this
5Article before July 1, 2005, the larger of the amounts
6determined under paragraphs (A) and (B) below, or (ii) in the
7case of a person who first becomes a teacher under this Article
8on or after July 1, 2005, the amount determined under the
9applicable provisions of paragraph (B):
10        (A) An amount consisting of the sum of the following:
11            (1) An amount that can be provided on an
12        actuarially equivalent basis (using the rate of
13        regular interest in effect at the time of retirement
14        for retirements occurring on or after July 1, 2014) by
15        the member's accumulated contributions at the time of
16        retirement; and
17            (2) The sum of (i) the amount that can be provided
18        on an actuarially equivalent basis (using the rate of
19        regular interest in effect at the time of retirement
20        for retirements occurring on or after July 1, 2014) by
21        the member's accumulated contributions representing
22        service prior to July 1, 1947, and (ii) the amount that
23        can be provided on an actuarially equivalent basis
24        (using the rate of regular interest in effect at the
25        time of retirement for retirements occurring on or
26        after July 1, 2014) by the amount obtained by

 

 

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1        multiplying 1.4 times the member's accumulated
2        contributions covering service subsequent to June 30,
3        1947; and
4            (3) If there is prior service, 2 times the amount
5        that would have been determined under subparagraph (2)
6        of paragraph (A) above on account of contributions
7        which would have been made during the period of prior
8        service creditable to the member had the System been in
9        operation and had the member made contributions at the
10        contribution rate in effect prior to July 1, 1947.
11        Notwithstanding any other provision of this paragraph
12    (A), a teacher's retirement annuity calculated under this
13    paragraph (A) shall not be less than the retirement annuity
14    that teacher would have received under this paragraph (A)
15    had he or she retired during the fiscal year preceding the
16    effective date of this amendatory Act of the 98th General
17    Assembly.
18        This paragraph (A) does not apply to a person who first
19    becomes a teacher under this Article on or after July 1,
20    2005.
21        (B) An amount consisting of the greater of the
22    following:
23            (1) For creditable service earned before July 1,
24        1998 that has not been augmented under Section
25        16-129.1: 1.67% of final average salary for each of the
26        first 10 years of creditable service, 1.90% of final

 

 

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1        average salary for each year in excess of 10 but not
2        exceeding 20, 2.10% of final average salary for each
3        year in excess of 20 but not exceeding 30, and 2.30% of
4        final average salary for each year in excess of 30; and
5            For creditable service earned on or after July 1,
6        1998 by a member who has at least 24 years of
7        creditable service on July 1, 1998 and who does not
8        elect to augment service under Section 16-129.1: 2.2%
9        of final average salary for each year of creditable
10        service earned on or after July 1, 1998 but before the
11        member reaches a total of 30 years of creditable
12        service and 2.3% of final average salary for each year
13        of creditable service earned on or after July 1, 1998
14        and after the member reaches a total of 30 years of
15        creditable service; and
16            For all other creditable service: 2.2% of final
17        average salary for each year of creditable service; or
18            (2) 1.5% of final average salary for each year of
19        creditable service plus the sum $7.50 for each of the
20        first 20 years of creditable service.
21    The amount of the retirement annuity determined under this
22    paragraph (B) shall be reduced by 1/2 of 1% for each month
23    that the member is less than age 60 at the time the
24    retirement annuity begins. However, this reduction shall
25    not apply (i) if the member has at least 35 years of
26    creditable service, or (ii) if the member retires on

 

 

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1    account of disability under Section 16-149.2 of this
2    Article with at least 20 years of creditable service, or
3    (iii) if the member (1) has earned during the period
4    immediately preceding the last day of service at least one
5    year of contributing creditable service as an employee of a
6    department as defined in Section 14-103.04, (2) has earned
7    at least 5 years of contributing creditable service as an
8    employee of a department as defined in Section 14-103.04,
9    (3) retires on or after January 1, 2001, and (4) retires
10    having attained an age which, when added to the number of
11    years of his or her total creditable service, equals at
12    least 85. Portions of years shall be counted as decimal
13    equivalents.
14    (b) For purposes of this Section, final average salary
15shall be the average salary for the highest 4 consecutive years
16within the last 10 years of creditable service as determined
17under rules of the board. The minimum final average salary
18shall be considered to be $2,400 per year.
19    In the determination of final average salary for members
20other than elected officials and their appointees when such
21appointees are allowed by statute, that part of a member's
22salary for any year beginning after June 30, 1979 which exceeds
23the member's annual full-time salary rate with the same
24employer for the preceding year by more than 20% shall be
25excluded. The exclusion shall not apply in any year in which
26the member's creditable earnings are less than 50% of the

 

 

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1preceding year's mean salary for downstate teachers as
2determined by the survey of school district salaries provided
3in Section 2-3.103 of the School Code.
4    (c) In determining the amount of the retirement annuity
5under paragraph (B) of this Section, a fractional year shall be
6granted proportional credit.
7    (d) The retirement annuity determined under paragraph (B)
8of this Section shall be available only to members who render
9teaching service after July 1, 1947 for which member
10contributions are required, and to annuitants who re-enter
11under the provisions of Section 16-150.
12    (e) The maximum retirement annuity provided under
13paragraph (B) of this Section shall be 75% of final average
14salary.
15    (f) A member retiring after the effective date of this
16amendatory Act of 1998 shall receive a pension equal to 75% of
17final average salary if the member is qualified to receive a
18retirement annuity equal to at least 74.6% of final average
19salary under this Article or as proportional annuities under
20Article 20 of this Code.
21(Source: P.A. 94-4, eff. 6-1-05.)
 
22    (40 ILCS 5/16-133.1)  (from Ch. 108 1/2, par. 16-133.1)
23    Sec. 16-133.1. Automatic annual increase in annuity.
24    (a) This subsection (a) is subject to subsections (a-1) and
25(a-2). Each member with creditable service and retiring on or

 

 

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1after August 26, 1969 is entitled to the automatic annual
2increases in annuity provided under this Section while
3receiving a retirement annuity or disability retirement
4annuity from the system.
5    An annuitant shall first be entitled to an initial increase
6under this Section on the January 1 next following the first
7anniversary of retirement, or January 1 of the year next
8following attainment of age 61, whichever is later. At such
9time, the system shall pay an initial increase determined as
10follows:
11        (1) 1.5% of the originally granted retirement annuity
12    or disability retirement annuity multiplied by the number
13    of years elapsed, if any, from the date of retirement until
14    January 1, 1972, plus
15        (2) 2% of the originally granted annuity multiplied by
16    the number of years elapsed, if any, from the date of
17    retirement or January 1, 1972, whichever is later, until
18    January 1, 1978, plus
19        (3) 3% of the originally granted annuity multiplied by
20    the number of years elapsed from the date of retirement or
21    January 1, 1978, whichever is later, until the effective
22    date of the initial increase.
23However, the initial annual increase calculated under this
24Section for the recipient of a disability retirement annuity
25granted under Section 16-149.2 shall be reduced by an amount
26equal to the total of all increases in that annuity received

 

 

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1under Section 16-149.5 (but not exceeding 100% of the amount of
2the initial increase otherwise provided under this Section).
3    Following the initial increase, automatic annual increases
4in annuity shall be payable on each January 1 thereafter during
5the lifetime of the annuitant, determined as a percentage of
6the originally granted retirement annuity or disability
7retirement annuity for increases granted prior to January 1,
81990, and calculated as a percentage of the total amount of
9annuity, including previous increases under this Section, for
10increases granted on or after January 1, 1990, as follows: 1.5%
11for periods prior to January 1, 1972, 2% for periods after
12December 31, 1971 and prior to January 1, 1978, and 3% for
13periods after December 31, 1977.
14    (a-1) Notwithstanding subsection (a), but subject to the
15provisions of subsection (a-2), all automatic increases
16payable under subsection (a) on or after the effective date of
17this amendatory Act of the 98th General Assembly shall be
18calculated as 3% of the lesser of (1) the total annuity payable
19at the time of the increase, including previous increases
20granted, or (2) $1,000 multiplied by the number of years of
21creditable service upon which the annuity is based; however, in
22the case of an initial increase under subsection (a) that is
23subject to this subsection:
24        (i) if more than one year has elapsed from the date of
25    retirement to the effective date of the initial increase
26    under this Section, the applicable percentage shall be the

 

 

SB0001CCR001- 260 -LRB098 05457 EFG 50220 c

1    sum of the percentages for each such elapsed year; and
2        (ii) in the case of a disability retirement annuity
3    granted under Section 16-149.2, the initial increase shall
4    be subject to the reduction provided in subsection (a) for
5    increases previously received under Section 16-149.5.
6    Beginning January 1, 2016, the $1,000 referred to in item
7(2) of this subsection (a-1) shall be increased on each January
81 by the annual unadjusted percentage increase (but not less
9than zero) in the consumer price index-u for the 12 months
10ending with the preceding September; these adjustments shall be
11cumulative and compounded. For the purposes of this subsection
12(a-1), "consumer price index-u" means the index published by
13the Bureau of Labor Statistics of the United States Department
14of Labor that measures the average change in prices of goods
15and services purchased by all urban consumers, United States
16city average, all items, 1982-84 = 100. The new dollar amount
17resulting from each annual adjustment shall be determined by
18the Public Pension Division of the Department of Insurance and
19made available to the System by November 1 of each year.
20    This subsection (a-1) is applicable without regard to
21whether the person is in service on or after the effective date
22of this amendatory Act of the 98th General Assembly.
23    (a-2) Notwithstanding subsections (a) and (a-1), for an
24active or inactive Tier 1 member who has not begun to receive a
25retirement annuity under this Article before July 1, 2014:
26        (1) the second automatic annual increase payable under

 

 

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1    subsection (a) shall be at the rate of 0% of the total
2    annuity payable at the time of the increase if he or she is
3    at least age 50 on the effective date of this amendatory
4    Act;
5        (2) the second, fourth, and sixth automatic annual
6    increases payable under subsection (a) shall be at the rate
7    of 0% of the total annuity payable at the time of the
8    increase if he or she is at least age 47 but less than age
9    50 on the effective date of this amendatory Act;
10        (3) the second, fourth, sixth, and eighth automatic
11    annual increases payable under subsection (a) shall be at
12    the rate of 0% of the total annuity payable at the time of
13    the increase if he or she is at least age 44 but less than
14    age 47 on the effective date of this amendatory Act; and
15        (4) the second, fourth, sixth, eighth, and tenth
16    automatic annual increases payable under subsection (a)
17    shall be at the rate of 0% of the total annuity payable at
18    the time of the increase if he or she is less than age 44 on
19    the effective date of this amendatory Act.
20    For the purposes of Section 1-103.1, this subsection (a-2)
21is applicable without regard to whether the person is in
22service on or after the effective date of this amendatory Act
23of the 98th General Assembly.
24    (b) The automatic annual increases in annuity provided
25under this Section shall not be applicable unless a member has
26made contributions toward such increases for a period

 

 

SB0001CCR001- 262 -LRB098 05457 EFG 50220 c

1equivalent to one full year of creditable service. If a member
2contributes for service performed after August 26, 1969 but the
3member becomes an annuitant before such contributions amount to
4one full year's contributions based on the salary at the date
5of retirement, he or she may pay the necessary balance of the
6contributions to the system and be eligible for the automatic
7annual increases in annuity provided under this Section.
8    (c) Each member shall make contributions toward the cost of
9the automatic annual increases in annuity as provided under
10Section 16-152.
11    (d) An annuitant receiving a retirement annuity or
12disability retirement annuity on July 1, 1969, who subsequently
13re-enters service as a teacher is eligible for the automatic
14annual increases in annuity provided under this Section if he
15or she renders at least one year of creditable service
16following the latest re-entry.
17    (e) In addition to the automatic annual increases in
18annuity provided under this Section, an annuitant who meets the
19service requirements of this Section and whose retirement
20annuity or disability retirement annuity began on or before
21January 1, 1971 shall receive, on January 1, 1981, an increase
22in the annuity then being paid of one dollar per month for each
23year of creditable service. On January 1, 1982, an annuitant
24whose retirement annuity or disability retirement annuity
25began on or before January 1, 1977 shall receive an increase in
26the annuity then being paid of one dollar per month for each

 

 

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1year of creditable service.
2    On January 1, 1987, any annuitant whose retirement annuity
3began on or before January 1, 1977, shall receive an increase
4in the monthly retirement annuity equal to 8¢ per year of
5creditable service times the number of years that have elapsed
6since the annuity began.
7(Source: P.A. 91-927, eff. 12-14-00.)
 
8    (40 ILCS 5/16-133.2)  (from Ch. 108 1/2, par. 16-133.2)
9    Sec. 16-133.2. Early retirement without discount.
10    (a) A member retiring after June 1, 1980 and on or before
11June 30, 2005 (or as provided in subsection (b) of this
12Section), and applying for a retirement annuity within 6 months
13of the last day of teaching for which retirement contributions
14were required, may elect at the time of application for a
15retirement annuity, to make a one time member contribution to
16the System and thereby avoid the reduction in the retirement
17annuity for retirement before age 60 specified in paragraph (B)
18of Section 16-133. The exercise of the election shall also
19obligate the last employer to make a one time non-refundable
20contribution to the System. Substitute teachers wishing to
21exercise this election must teach 85 or more days in one school
22term with one employer, who shall be deemed the last employer
23for purposes of this Section. The last day of teaching with
24that employer must be within 6 months of the date of
25application for retirement. All substitute teaching credit

 

 

SB0001CCR001- 264 -LRB098 05457 EFG 50220 c

1applied toward the required 85 days must be earned after June
230, 1990.
3    The one time member and employer contributions shall be a
4percentage of the retiring member's highest annual salary rate
5used in the determination of the average salary for retirement
6annuity purposes. However, when determining the one-time
7member and employer contributions, that part of a member's
8salary with the same employer which exceeds the annual salary
9rate for the preceding year by more than 20% shall be excluded.
10The member contribution shall be at the rate of 7% for the
11lesser of the following 2 periods: (1) for each year that the
12member is less than age 60; or (2) for each year that the
13member's creditable service is less than 35 years. If a member
14is at least age 55 and has at least 34 years of creditable
15service, no member or employer contribution for the early
16retirement option shall be required. The employer contribution
17shall be at the rate of 20% for each year the member is under
18age 60.
19    Upon receipt of the application and election, the System
20shall determine the one time employee and employer
21contributions required. The member contribution shall be
22credited to the individual account of the member and the
23employer contribution shall be credited to the Benefit Trust
24Reserve. The provisions of this subsection (a) providing for
25the avoidance of the reduction in retirement annuity shall not
26be applicable until the member's contribution, if any, has been

 

 

SB0001CCR001- 265 -LRB098 05457 EFG 50220 c

1received by the System; however, the date such contributions
2are received shall not be considered in determining the
3effective date of retirement.
4    The number of members working for a single employer who may
5retire under this subsection or subsection (b) in any year may
6be limited at the option of the employer to a specified
7percentage of those eligible, not less than 30%, with the right
8to participate to be allocated among those applying on the
9basis of seniority in the service of the employer.
10    (b) The provisions of subsection (a) of this Section shall
11remain in effect for a member retiring after June 30, 2005 and
12on or before July 1, 2007, provided that the member satisfies
13both of the following requirements:
14        (1) the member notified his or her employer of intent
15    to retire under this Article on or before the effective
16    date of this amendatory Act of the 94th General Assembly
17    under the terms of a contract or collective bargaining
18    agreement entered into, amended, or renewed with the
19    employer on or before the effective date of this amendatory
20    Act of the 94th General Assembly; and
21        (2) the effective date of the member's retirement is on
22    or before July 1, 2007.
23    The member's employer must give evidence of the member's
24notification by providing to the System:
25        (i) a copy of the member's notification to the employer
26    or the record of that notification;

 

 

SB0001CCR001- 266 -LRB098 05457 EFG 50220 c

1        (ii) an affidavit signed by the member and the
2    employer, verifying the notification; and
3        (iii) any additional documentation that the System may
4    require.
5    (c) Except as otherwise provided in subsection (b), and
6subject to the provisions of Section 16-176, a member retiring
7on or after July 1, 2005 and on or before June 30, 2013 (or
8January 1, 2014 in the case of a member who has filed a notice
9of intent to retire with his or her employer on or before June
1030, 2013 and attains age 55 during the period July 1, 2013
11through December 31, 2013), and applying for a retirement
12annuity within 6 months of the last day of teaching for which
13retirement contributions were required, and whose last day of
14teaching is on or before June 30, 2013, may elect at the time
15of application for a retirement annuity, to make a one-time
16member contribution to the System and thereby avoid the
17reduction in the retirement annuity for retirement before age
1860 specified in paragraph (B) of Section 16-133. The exercise
19of the election shall also obligate the last employer to make a
20one-time nonrefundable contribution to the System. Substitute
21teachers wishing to exercise this election must teach 85 or
22more days in one school term with one employer, who shall be
23deemed the last employer for purposes of this Section. The last
24day of teaching with that employer must be within 6 months of
25the date of application for retirement. All substitute teaching
26credit applied toward the required 85 days must be earned after

 

 

SB0001CCR001- 267 -LRB098 05457 EFG 50220 c

1June 30, 1990.
2    The one-time member and employer contributions shall be a
3percentage of the retiring member's highest annual salary rate
4used in the determination of the average salary for retirement
5annuity purposes. However, when determining the one-time
6member and employer contributions, that part of a member's
7salary with the same employer which exceeds the annual salary
8rate for the preceding year by more than 20% shall be excluded.
9The member contribution shall be at the rate of 11.5% for the
10lesser of the following 2 periods: (1) for each year that the
11member is less than age 60; or (2) for each year that the
12member's creditable service is less than 35 years. The employer
13contribution shall be at the rate of 23.5% for each year the
14member is under age 60.
15    Upon receipt of the application and election, the System
16shall determine the one-time employee and employer
17contributions required. The member contribution shall be
18credited to the individual account of the member and the
19employer contribution shall be credited to the Benefit Trust
20Reserve. The avoidance of the reduction in retirement annuity
21provided under this subsection (c) is not applicable until the
22member's contribution, if any, has been received by the System;
23however, the date that contribution is received shall not be
24considered in determining the effective date of retirement.
25    The number of members working for a single employer who may
26retire under this subsection (c) in any year may be limited at

 

 

SB0001CCR001- 268 -LRB098 05457 EFG 50220 c

1the option of the employer to a specified percentage of those
2eligible, not less than 10%, with the right to participate to
3be allocated among those applying on the basis of seniority in
4the service of the employer.
5    For persons not qualifying for the early retirement without
6discount option under this subsection (c), the option is
7extended for 3 years under subsection (d), but subject to the
8changes in eligibility, conditions, and required contributions
9provided in that subsection.
10    (d) A member who is not eligible for the early retirement
11without discount option under subsection (c) may qualify for
12the early retirement without discount option under this
13subsection (d) if the member (1) retires on or after July 1,
142013 and before July 1, 2016, (2) applies for a retirement
15annuity within 6 months of the last day of teaching for which
16retirement contributions were required, and (3) receives a
17certification of eligibility under this subsection from the
18member's last employer. Substitute teachers wishing to
19exercise this election must teach 85 or more days in one school
20term with one employer, who shall be deemed the last employer
21for purposes of this Section. The last day of teaching with
22that employer must be within 6 months of the date of
23application for retirement. All substitute teaching credit
24applied toward the required 85 days must be earned after June
2530, 1990.
26    A qualifying member may elect at the time of application

 

 

SB0001CCR001- 269 -LRB098 05457 EFG 50220 c

1for a retirement annuity to make a one-time member contribution
2to the System and thereby avoid the reduction in the retirement
3annuity for retirement before age 60 specified in paragraph (B)
4of Section 16-133. The exercise of this election shall also
5obligate the last employer to make a one-time nonrefundable
6contribution to the System.
7    The one-time member and employer contributions shall be a
8percentage of the retiring member's highest annual salary rate
9used in the determination of the average salary for retirement
10annuity purposes. However, when determining the one-time
11member and employer contributions, that part of a member's
12salary with the same employer which exceeds the annual salary
13rate for the preceding year by more than 20% shall be excluded.
14The member contribution shall be at the rate of 14.4% for the
15lesser of the following 2 periods: (1) for each year that the
16member is less than age 60; or (2) for each year that the
17member's creditable service is less than 35 years. The employer
18contribution shall be at the rate of 29.3% for each year the
19member is under age 60.
20    Upon receipt of the application, election, and
21certification of eligibility, the System shall determine the
22one-time employee and employer contributions required. The
23member contribution shall be credited to the individual account
24of the member and the employer contribution shall be credited
25to the Benefit Trust Reserve. The avoidance of the reduction in
26retirement annuity provided under this subsection (d) is not

 

 

SB0001CCR001- 270 -LRB098 05457 EFG 50220 c

1applicable until the member's contribution has been received by
2the System; however, the date that contribution is received
3shall not be considered in determining the effective date of
4retirement.
5    Eligibility to retire under this subsection (d) shall
6require the approval of the member's last employer under this
7Article, granted in accordance with criteria adopted by that
8employer with the mutual consent of the bargaining agent of a
9majority of the members employed by that employer. If the
10employer grants its approval for a member to retire under this
11subsection (d), the employer shall submit a certification of
12eligibility for the member in a manner prescribed by the
13System.
14    The early retirement without discount option under this
15subsection (d) terminates on July 1, 2016.
16    For participants to whom subsection (b) of Section 16-132
17applies, the references to age 60 in this subsection are
18increased as provided in subsection (b) of Section 16-132.
19(Source: P.A. 98-42, eff. 6-28-13.)
 
20    (40 ILCS 5/16-136.1)  (from Ch. 108 1/2, par. 16-136.1)
21    Sec. 16-136.1. Annual increase for certain annuitants. (a)
22Any annuitant receiving a retirement annuity on June 30, 1969
23and any member retiring after June 30, 1969 shall be eligible
24for the annual increases provided under this Section provided
25the annuitant is ineligible for the automatic annual increase

 

 

SB0001CCR001- 271 -LRB098 05457 EFG 50220 c

1in annuity provided under Section 16-133.1, and provided
2further that (1) retirement occurred at age 55 or over and was
3based on 5 or more years of creditable service or (2) if
4retirement occurred prior to age 55, the retirement annuity was
5based on 20 or more years of creditable service.
6    (b) This subsection (b) is subject to subsections (b-1) and
7(b-2). An annuitant entitled to increases under this Section
8shall be entitled to the initial increase as of the later of:
9(1) January 1 following attainment of age 65, (2) January 1
10following the first anniversary of retirement, or (3) the first
11day of the month following receipt of the required qualifying
12contribution from the annuitant. The initial monthly increase
13shall be computed on the basis of the period elapsed between
14the later of the date of last retirement or attainment of age
1550 and the date of qualification for the initial increase, at
16the rate of 1 1/2% of the original monthly retirement annuity
17per year for periods prior to September 1, 1971, and at the
18rate of 2% per year for periods between September 1, 1971 and
19September 1, 1978, and at the rate of 3% per year for periods
20thereafter.
21    An annuitant who has received an initial increase under
22this Section, shall be entitled, on each January 1 following
23the granting of the initial increase, to an increase of 3% of
24the original monthly retirement annuity for increases granted
25prior to January 1, 1990, and equal to 3% of the total annuity,
26including previous increases under this Section, for increases

 

 

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1granted on or after January 1, 1990. The original monthly
2retirement annuity for computations under this subsection (b)
3shall be considered to be $83.34 for any annuitant entitled to
4benefits under Section 16-134. The minimum original disability
5retirement annuity for computations under this subsection (b)
6shall be considered to be $33.34 per month for any annuitant
7retired on account of disability.
8    (b-1) Notwithstanding subsection (b), but subject to the
9provisions of subsection (b-2), all automatic increases
10payable under subsection (b) on or after the effective date of
11this amendatory Act of the 98th General Assembly shall be
12calculated as 3% of the lesser of (1) the total annuity payable
13at the time of the increase, including previous increases
14granted, or (2) $1,000 multiplied by the number of years of
15creditable service upon which the annuity is based; however, in
16the case of an initial increase under subsection (b) that is
17subject to this subsection, if more than one year has elapsed
18from the date of retirement to the effective date of the
19initial increase under this Section, the applicable percentage
20shall be the sum of the percentages for each such elapsed year.
21    Beginning January 1, 2016, the $1,000 referred to in item
22(2) of this subsection (b-1) shall be increased on each January
231 by the annual unadjusted percentage increase (but not less
24than zero) in the consumer price index-u for the 12 months
25ending with the preceding September; these adjustments shall be
26cumulative and compounded. For the purposes of this subsection

 

 

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1(b-1), "consumer price index-u" means the index published by
2the Bureau of Labor Statistics of the United States Department
3of Labor that measures the average change in prices of goods
4and services purchased by all urban consumers, United States
5city average, all items, 1982-84 = 100. The new dollar amount
6resulting from each annual adjustment shall be determined by
7the Public Pension Division of the Department of Insurance and
8made available to the System by November 1 of each year.
9    This subsection (b-1) is applicable without regard to
10whether the person is in service on or after the effective date
11of this amendatory Act of the 98th General Assembly.
12    (b-2) Notwithstanding subsections (b) and (b-1), for an
13active or inactive Tier 1 member who is subject to this Section
14and has not begun to receive a retirement annuity under this
15Article before July 1, 2014:
16        (1) the second automatic annual increase payable under
17    subsection (b) shall be at the rate of 0% of the total
18    annuity payable at the time of the increase if he or she is
19    at least age 50 on the effective date of this amendatory
20    Act;
21        (2) the second, fourth, and sixth automatic annual
22    increases payable under subsection (b) shall be at the rate
23    of 0% of the total annuity payable at the time of the
24    increase if he or she is at least age 47 but less than age
25    50 on the effective date of this amendatory Act;
26        (3) the second, fourth, sixth, and eighth automatic

 

 

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1    annual increases payable under subsection (b) shall be at
2    the rate of 0% of the total annuity payable at the time of
3    the increase if he or she is at least age 44 but less than
4    age 47 on the effective date of this amendatory Act; and
5        (4) the second, fourth, sixth, eighth, and tenth
6    automatic annual increases payable under subsection (b)
7    shall be at the rate of 0% of the total annuity payable at
8    the time of the increase if he or she is less than age 44 on
9    the effective date of this amendatory Act.
10    For the purposes of Section 1-103.1, this subsection (b-2)
11is applicable without regard to whether the person is in
12service on or after the effective date of this amendatory Act
13of the 98th General Assembly.
14    (c) An annuitant who otherwise qualifies for annual
15increases under this Section must make a one-time payment of 1%
16of the monthly final average salary for each full year of the
17creditable service forming the basis of the retirement annuity
18or, if the retirement annuity was not computed using final
19average salary, 1% of the original monthly retirement annuity
20for each full year of service forming the basis of the
21retirement annuity.
22    (d) In addition to other increases which may be provided by
23this Section, regardless of creditable service, annuitants not
24meeting the service requirements of Section 16-133.1 and whose
25retirement annuity began on or before January 1, 1971 shall
26receive, on January 1, 1981, an increase in the retirement

 

 

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1annuity then being paid of one dollar per month for each year
2of creditable service forming the basis of the retirement
3allowance. On January 1, 1982, annuitants whose retirement
4annuity began on or before January 1, 1977, shall receive an
5increase in the retirement annuity then being paid of one
6dollar per month for each year of creditable service.
7    On January 1, 1987, any annuitant whose retirement annuity
8began on or before January 1, 1977, shall receive an increase
9in the monthly retirement annuity equal to 8¢ per year of
10creditable service times the number of years that have elapsed
11since the annuity began.
12(Source: P.A. 86-273.)
 
13    (40 ILCS 5/16-152)  (from Ch. 108 1/2, par. 16-152)
14    Sec. 16-152. Contributions by members.
15    (a) Except as provided in subsection (a-5), each Each
16member shall make contributions for membership service to this
17System as follows:
18        (1) Effective July 1, 1998, contributions of 7.50% of
19    salary towards the cost of the retirement annuity. Such
20    contributions shall be deemed "normal contributions".
21        (2) Effective July 1, 1969 and, in the case of Tier 1
22    members, ending on June 30, 2014, contributions of 1/2 of
23    1% of salary toward the cost of the automatic annual
24    increase in retirement annuity provided under Section
25    16-133.1.

 

 

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1        (3) Effective July 24, 1959, contributions of 1% of
2    salary towards the cost of survivor benefits. Such
3    contributions shall not be credited to the individual
4    account of the member and shall not be subject to refund
5    except as provided under Section 16-143.2.
6        (4) Effective July 1, 2005, contributions of 0.40% of
7    salary toward the cost of the early retirement without
8    discount option provided under Section 16-133.2. This
9    contribution shall cease upon termination of the early
10    retirement without discount option as provided in Section
11    16-133.2.
12    (a-5) Beginning July 1, 2014, in lieu of the contribution
13otherwise required under paragraph (1) of subsection (a), each
14Tier 1 member shall contribute 7% of salary towards the cost of
15the retirement annuity. Contributions made pursuant to this
16subsection (a-5) shall be deemed "normal contributions".
17    (b) The minimum required contribution for any year of
18full-time teaching service shall be $192.
19    (c) Contributions shall not be required of any annuitant
20receiving a retirement annuity who is given employment as
21permitted under Section 16-118 or 16-150.1.
22    (d) A person who (i) was a member before July 1, 1998, (ii)
23retires with more than 34 years of creditable service, and
24(iii) does not elect to qualify for the augmented rate under
25Section 16-129.1 shall be entitled, at the time of retirement,
26to receive a partial refund of contributions made under this

 

 

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1Section for service occurring after the later of June 30, 1998
2or attainment of 34 years of creditable service, in an amount
3equal to 1.00% of the salary upon which those contributions
4were based.
5    (e) A member's contributions toward the cost of early
6retirement without discount made under item (a)(4) of this
7Section shall not be refunded if the member has elected early
8retirement without discount under Section 16-133.2 and has
9begun to receive a retirement annuity under this Article
10calculated in accordance with that election. Otherwise, a
11member's contributions toward the cost of early retirement
12without discount made under item (a)(4) of this Section shall
13be refunded according to whichever one of the following
14circumstances occurs first:
15        (1) The contributions shall be refunded to the member,
16    without interest, within 120 days after the member's
17    retirement annuity commences, if the member does not elect
18    early retirement without discount under Section 16-133.2.
19        (2) The contributions shall be included, without
20    interest, in any refund claimed by the member under Section
21    16-151.
22        (3) The contributions shall be refunded to the member's
23    designated beneficiary (or if there is no beneficiary, to
24    the member's estate), without interest, if the member dies
25    without having begun to receive a retirement annuity under
26    this Article.

 

 

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1        (4) The contributions shall be refunded to the member,
2    without interest, if the early retirement without discount
3    option provided under subsection (d) of Section 16-133.2 is
4    terminated. In that event, the System shall provide to the
5    member, within 120 days after the option is terminated, an
6    application for a refund of those contributions.
7(Source: P.A. 98-42, eff. 6-28-13; 98-92, eff. 7-16-13; revised
87-23-13.)
 
9    (40 ILCS 5/16-152.5 new)
10    Sec. 16-152.5. Use of contributions for health care
11subsidies. The System shall not use any contribution received
12by the System under this Article to provide a subsidy for the
13cost of participation in a retiree health care program.
 
14    (40 ILCS 5/16-158)   (from Ch. 108 1/2, par. 16-158)
15    Sec. 16-158. Contributions by State and other employing
16units.
17    (a) The State shall make contributions to the System by
18means of appropriations from the Common School Fund and other
19State funds of amounts which, together with other employer
20contributions, employee contributions, investment income, and
21other income, will be sufficient to meet the cost of
22maintaining and administering the System on a 100% 90% funded
23basis in accordance with actuarial recommendations by the end
24of State fiscal year 2044.

 

 

SB0001CCR001- 279 -LRB098 05457 EFG 50220 c

1    The Board shall determine the amount of State contributions
2required for each fiscal year on the basis of the actuarial
3tables and other assumptions adopted by the Board and the
4recommendations of the actuary, using the formula in subsection
5(b-3).
6    (a-1) Annually, on or before November 15 through until
7November 15, 2011, the Board shall certify to the Governor the
8amount of the required State contribution for the coming fiscal
9year. The certification under this subsection (a-1) shall
10include a copy of the actuarial recommendations upon which it
11is based and shall specifically identify the System's projected
12State normal cost for that fiscal year.
13    On or before May 1, 2004, the Board shall recalculate and
14recertify to the Governor the amount of the required State
15contribution to the System for State fiscal year 2005, taking
16into account the amounts appropriated to and received by the
17System under subsection (d) of Section 7.2 of the General
18Obligation Bond Act.
19    On or before July 1, 2005, the Board shall recalculate and
20recertify to the Governor the amount of the required State
21contribution to the System for State fiscal year 2006, taking
22into account the changes in required State contributions made
23by this amendatory Act of the 94th General Assembly.
24    On or before April 1, 2011, the Board shall recalculate and
25recertify to the Governor the amount of the required State
26contribution to the System for State fiscal year 2011, applying

 

 

SB0001CCR001- 280 -LRB098 05457 EFG 50220 c

1the changes made by Public Act 96-889 to the System's assets
2and liabilities as of June 30, 2009 as though Public Act 96-889
3was approved on that date.
4    (a-5) On or before November 1 of each year, beginning
5November 1, 2012, the Board shall submit to the State Actuary,
6the Governor, and the General Assembly a proposed certification
7of the amount of the required State contribution to the System
8for the next fiscal year, along with all of the actuarial
9assumptions, calculations, and data upon which that proposed
10certification is based. On or before January 1 of each year,
11beginning January 1, 2013, the State Actuary shall issue a
12preliminary report concerning the proposed certification and
13identifying, if necessary, recommended changes in actuarial
14assumptions that the Board must consider before finalizing its
15certification of the required State contributions.
16    On or before January 15, 2013 and each January 15
17thereafter, the Board shall certify to the Governor and the
18General Assembly the amount of the required State contribution
19for the next fiscal year. The certification shall include a
20copy of the actuarial recommendations upon which it is based
21and shall specifically identify the System's projected State
22normal cost for that fiscal year. The Board's certification
23must note any deviations from the State Actuary's recommended
24changes, the reason or reasons for not following the State
25Actuary's recommended changes, and the fiscal impact of not
26following the State Actuary's recommended changes on the

 

 

SB0001CCR001- 281 -LRB098 05457 EFG 50220 c

1required State contribution.
2    (a-10) For purposes of Section (c-5) of Section 20 of the
3Budget Stabilization Act, on or before November 1 of each year
4beginning November 1, 2014, the Board shall determine the
5amount of the State contribution to the System that would have
6been required for the next fiscal year if this amendatory Act
7of the 98th General Assembly had not taken effect, using the
8best and most recent available data but based on the law in
9effect on May 31, 2014. The Board shall submit to the State
10Actuary, the Governor, and the General Assembly a proposed
11certification, along with the relevant law, actuarial
12assumptions, calculations, and data upon which that
13certification is based. On or before January 1, 2015 and every
14January 1 thereafter, the State Actuary shall issue a
15preliminary report concerning the proposed certification and
16identifying, if necessary, recommended changes in actuarial
17assumptions that the Board must consider before finalizing its
18certification. On or before January 15, 2015 and every January
191 thereafter, the Board shall certify to the Governor and the
20General Assembly the amount of the State contribution to the
21System that would have been required for the next fiscal year
22if this amendatory Act of the 98th General Assembly had not
23taken effect, using the best and most recent available data but
24based on the law in effect on May 31, 2014. The Board's
25certification must note any deviations from the State Actuary's
26recommended changes, the reason or reasons for not following

 

 

SB0001CCR001- 282 -LRB098 05457 EFG 50220 c

1the State Actuary's recommended changes, and the impact of not
2following the State Actuary's recommended changes.
3    (b) Through State fiscal year 1995, the State contributions
4shall be paid to the System in accordance with Section 18-7 of
5the School Code.
6    (b-1) Beginning in State fiscal year 1996, on the 15th day
7of each month, or as soon thereafter as may be practicable, the
8Board shall submit vouchers for payment of State contributions
9to the System, in a total monthly amount of one-twelfth of the
10required annual State contribution certified under subsection
11(a-1). From the effective date of this amendatory Act of the
1293rd General Assembly through June 30, 2004, the Board shall
13not submit vouchers for the remainder of fiscal year 2004 in
14excess of the fiscal year 2004 certified contribution amount
15determined under this Section after taking into consideration
16the transfer to the System under subsection (a) of Section
176z-61 of the State Finance Act. These vouchers shall be paid by
18the State Comptroller and Treasurer by warrants drawn on the
19funds appropriated to the System for that fiscal year.
20    If in any month the amount remaining unexpended from all
21other appropriations to the System for the applicable fiscal
22year (including the appropriations to the System under Section
238.12 of the State Finance Act and Section 1 of the State
24Pension Funds Continuing Appropriation Act) is less than the
25amount lawfully vouchered under this subsection, the
26difference shall be paid from the Common School Fund under the

 

 

SB0001CCR001- 283 -LRB098 05457 EFG 50220 c

1continuing appropriation authority provided in Section 1.1 of
2the State Pension Funds Continuing Appropriation Act.
3    (b-2) Allocations from the Common School Fund apportioned
4to school districts not coming under this System shall not be
5diminished or affected by the provisions of this Article.
6    (b-3) For State fiscal years 2015 through 2044, the minimum
7contribution to the System to be made by the State for each
8fiscal year shall be an amount determined by the System to be
9equal to the sum of (1) the State's portion of the projected
10normal cost for that fiscal year, plus (2) an amount sufficient
11to bring the total assets of the System up to 100% of the total
12actuarial liabilities of the System by the end of State fiscal
13year 2044. In making these determinations, the required State
14contribution shall be calculated each year as a level
15percentage of payroll over the years remaining to and including
16fiscal year 2044 and shall be determined under the projected
17unit cost method for fiscal year 2015 and under the entry age
18normal actuarial cost method for fiscal years 2016 through
192044.
20    For State fiscal years 2012 through 2014 2045, the minimum
21contribution to the System to be made by the State for each
22fiscal year shall be an amount determined by the System to be
23sufficient to bring the total assets of the System up to 90% of
24the total actuarial liabilities of the System by the end of
25State fiscal year 2045. In making these determinations, the
26required State contribution shall be calculated each year as a

 

 

SB0001CCR001- 284 -LRB098 05457 EFG 50220 c

1level percentage of payroll over the years remaining to and
2including fiscal year 2045 and shall be determined under the
3projected unit credit actuarial cost method.
4    For State fiscal years 1996 through 2005, the State
5contribution to the System, as a percentage of the applicable
6employee payroll, shall be increased in equal annual increments
7so that by State fiscal year 2011, the State is contributing at
8the rate required under this Section; except that in the
9following specified State fiscal years, the State contribution
10to the System shall not be less than the following indicated
11percentages of the applicable employee payroll, even if the
12indicated percentage will produce a State contribution in
13excess of the amount otherwise required under this subsection
14and subsection (a), and notwithstanding any contrary
15certification made under subsection (a-1) before the effective
16date of this amendatory Act of 1998: 10.02% in FY 1999; 10.77%
17in FY 2000; 11.47% in FY 2001; 12.16% in FY 2002; 12.86% in FY
182003; and 13.56% in FY 2004.
19    Notwithstanding any other provision of this Article, the
20total required State contribution for State fiscal year 2006 is
21$534,627,700.
22    Notwithstanding any other provision of this Article, the
23total required State contribution for State fiscal year 2007 is
24$738,014,500.
25    For each of State fiscal years 2008 through 2009, the State
26contribution to the System, as a percentage of the applicable

 

 

SB0001CCR001- 285 -LRB098 05457 EFG 50220 c

1employee payroll, shall be increased in equal annual increments
2from the required State contribution for State fiscal year
32007, so that by State fiscal year 2011, the State is
4contributing at the rate otherwise required under this Section.
5    Notwithstanding any other provision of this Article, the
6total required State contribution for State fiscal year 2010 is
7$2,089,268,000 and shall be made from the proceeds of bonds
8sold in fiscal year 2010 pursuant to Section 7.2 of the General
9Obligation Bond Act, less (i) the pro rata share of bond sale
10expenses determined by the System's share of total bond
11proceeds, (ii) any amounts received from the Common School Fund
12in fiscal year 2010, and (iii) any reduction in bond proceeds
13due to the issuance of discounted bonds, if applicable.
14    Notwithstanding any other provision of this Article, the
15total required State contribution for State fiscal year 2011 is
16the amount recertified by the System on or before April 1, 2011
17pursuant to subsection (a-1) of this Section and shall be made
18from the proceeds of bonds sold in fiscal year 2011 pursuant to
19Section 7.2 of the General Obligation Bond Act, less (i) the
20pro rata share of bond sale expenses determined by the System's
21share of total bond proceeds, (ii) any amounts received from
22the Common School Fund in fiscal year 2011, and (iii) any
23reduction in bond proceeds due to the issuance of discounted
24bonds, if applicable. This amount shall include, in addition to
25the amount certified by the System, an amount necessary to meet
26employer contributions required by the State as an employer

 

 

SB0001CCR001- 286 -LRB098 05457 EFG 50220 c

1under paragraph (e) of this Section, which may also be used by
2the System for contributions required by paragraph (a) of
3Section 16-127.
4    Beginning in State fiscal year 2045, the minimum State
5contribution for each fiscal year shall be the amount needed to
6maintain the total assets of the System at 100% of the total
7actuarial liabilities of the System.
8    Beginning in State fiscal year 2046, the minimum State
9contribution for each fiscal year shall be the amount needed to
10maintain the total assets of the System at 90% of the total
11actuarial liabilities of the System.
12    Amounts received by the System pursuant to Section 25 of
13the Budget Stabilization Act or Section 8.12 of the State
14Finance Act in any fiscal year do not reduce and do not
15constitute payment of any portion of the minimum State
16contribution required under this Article in that fiscal year.
17Such amounts shall not reduce, and shall not be included in the
18calculation of, the required State contributions under this
19Article in any future year until the System has reached a
20funding ratio of at least 100% 90%. A reference in this Article
21to the "required State contribution" or any substantially
22similar term does not include or apply to any amounts payable
23to the System under Section 25 of the Budget Stabilization Act.
24    Notwithstanding any other provision of this Section, the
25required State contribution for State fiscal year 2005 and for
26fiscal year 2008 and each fiscal year thereafter through State

 

 

SB0001CCR001- 287 -LRB098 05457 EFG 50220 c

1fiscal year 2014, as calculated under this Section and
2certified under subsection (a-1), shall not exceed an amount
3equal to (i) the amount of the required State contribution that
4would have been calculated under this Section for that fiscal
5year if the System had not received any payments under
6subsection (d) of Section 7.2 of the General Obligation Bond
7Act, minus (ii) the portion of the State's total debt service
8payments for that fiscal year on the bonds issued in fiscal
9year 2003 for the purposes of that Section 7.2, as determined
10and certified by the Comptroller, that is the same as the
11System's portion of the total moneys distributed under
12subsection (d) of Section 7.2 of the General Obligation Bond
13Act. In determining this maximum for State fiscal years 2008
14through 2010, however, the amount referred to in item (i) shall
15be increased, as a percentage of the applicable employee
16payroll, in equal increments calculated from the sum of the
17required State contribution for State fiscal year 2007 plus the
18applicable portion of the State's total debt service payments
19for fiscal year 2007 on the bonds issued in fiscal year 2003
20for the purposes of Section 7.2 of the General Obligation Bond
21Act, so that, by State fiscal year 2011, the State is
22contributing at the rate otherwise required under this Section.
23    (c) Payment of the required State contributions and of all
24pensions, retirement annuities, death benefits, refunds, and
25other benefits granted under or assumed by this System, and all
26expenses in connection with the administration and operation

 

 

SB0001CCR001- 288 -LRB098 05457 EFG 50220 c

1thereof, are obligations of the State.
2    If members are paid from special trust or federal funds
3which are administered by the employing unit, whether school
4district or other unit, the employing unit shall pay to the
5System from such funds the full accruing retirement costs based
6upon that service, as determined by the System. Employer
7contributions, based on salary paid to members from federal
8funds, may be forwarded by the distributing agency of the State
9of Illinois to the System prior to allocation, in an amount
10determined in accordance with guidelines established by such
11agency and the System.
12    (d) Effective July 1, 1986, any employer of a teacher as
13defined in paragraph (8) of Section 16-106 shall pay the
14employer's normal cost of benefits based upon the teacher's
15service, in addition to employee contributions, as determined
16by the System. Such employer contributions shall be forwarded
17monthly in accordance with guidelines established by the
18System.
19    However, with respect to benefits granted under Section
2016-133.4 or 16-133.5 to a teacher as defined in paragraph (8)
21of Section 16-106, the employer's contribution shall be 12%
22(rather than 20%) of the member's highest annual salary rate
23for each year of creditable service granted, and the employer
24shall also pay the required employee contribution on behalf of
25the teacher. For the purposes of Sections 16-133.4 and
2616-133.5, a teacher as defined in paragraph (8) of Section

 

 

SB0001CCR001- 289 -LRB098 05457 EFG 50220 c

116-106 who is serving in that capacity while on leave of
2absence from another employer under this Article shall not be
3considered an employee of the employer from which the teacher
4is on leave.
5    (e) Beginning July 1, 1998, every employer of a teacher
6shall pay to the System an employer contribution computed as
7follows:
8        (1) Beginning July 1, 1998 through June 30, 1999, the
9    employer contribution shall be equal to 0.3% of each
10    teacher's salary.
11        (2) Beginning July 1, 1999 and thereafter, the employer
12    contribution shall be equal to 0.58% of each teacher's
13    salary.
14The school district or other employing unit may pay these
15employer contributions out of any source of funding available
16for that purpose and shall forward the contributions to the
17System on the schedule established for the payment of member
18contributions.
19    These employer contributions are intended to offset a
20portion of the cost to the System of the increases in
21retirement benefits resulting from this amendatory Act of 1998.
22    Each employer of teachers is entitled to a credit against
23the contributions required under this subsection (e) with
24respect to salaries paid to teachers for the period January 1,
252002 through June 30, 2003, equal to the amount paid by that
26employer under subsection (a-5) of Section 6.6 of the State

 

 

SB0001CCR001- 290 -LRB098 05457 EFG 50220 c

1Employees Group Insurance Act of 1971 with respect to salaries
2paid to teachers for that period.
3    The additional 1% employee contribution required under
4Section 16-152 by this amendatory Act of 1998 is the
5responsibility of the teacher and not the teacher's employer,
6unless the employer agrees, through collective bargaining or
7otherwise, to make the contribution on behalf of the teacher.
8    If an employer is required by a contract in effect on May
91, 1998 between the employer and an employee organization to
10pay, on behalf of all its full-time employees covered by this
11Article, all mandatory employee contributions required under
12this Article, then the employer shall be excused from paying
13the employer contribution required under this subsection (e)
14for the balance of the term of that contract. The employer and
15the employee organization shall jointly certify to the System
16the existence of the contractual requirement, in such form as
17the System may prescribe. This exclusion shall cease upon the
18termination, extension, or renewal of the contract at any time
19after May 1, 1998.
20    (f) If the amount of a teacher's salary for any school year
21used to determine final average salary exceeds the member's
22annual full-time salary rate with the same employer for the
23previous school year by more than 6%, the teacher's employer
24shall pay to the System, in addition to all other payments
25required under this Section and in accordance with guidelines
26established by the System, the present value of the increase in

 

 

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1benefits resulting from the portion of the increase in salary
2that is in excess of 6%. This present value shall be computed
3by the System on the basis of the actuarial assumptions and
4tables used in the most recent actuarial valuation of the
5System that is available at the time of the computation. If a
6teacher's salary for the 2005-2006 school year is used to
7determine final average salary under this subsection (f), then
8the changes made to this subsection (f) by Public Act 94-1057
9shall apply in calculating whether the increase in his or her
10salary is in excess of 6%. For the purposes of this Section,
11change in employment under Section 10-21.12 of the School Code
12on or after June 1, 2005 shall constitute a change in employer.
13The System may require the employer to provide any pertinent
14information or documentation. The changes made to this
15subsection (f) by this amendatory Act of the 94th General
16Assembly apply without regard to whether the teacher was in
17service on or after its effective date.
18    Whenever it determines that a payment is or may be required
19under this subsection, the System shall calculate the amount of
20the payment and bill the employer for that amount. The bill
21shall specify the calculations used to determine the amount
22due. If the employer disputes the amount of the bill, it may,
23within 30 days after receipt of the bill, apply to the System
24in writing for a recalculation. The application must specify in
25detail the grounds of the dispute and, if the employer asserts
26that the calculation is subject to subsection (g) or (h) of

 

 

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1this Section, must include an affidavit setting forth and
2attesting to all facts within the employer's knowledge that are
3pertinent to the applicability of that subsection. Upon
4receiving a timely application for recalculation, the System
5shall review the application and, if appropriate, recalculate
6the amount due.
7    The employer contributions required under this subsection
8(f) may be paid in the form of a lump sum within 90 days after
9receipt of the bill. If the employer contributions are not paid
10within 90 days after receipt of the bill, then interest will be
11charged at a rate equal to the System's annual actuarially
12assumed rate of return on investment compounded annually from
13the 91st day after receipt of the bill. Payments must be
14concluded within 3 years after the employer's receipt of the
15bill.
16    (g) This subsection (g) applies only to payments made or
17salary increases given on or after June 1, 2005 but before July
181, 2011. The changes made by Public Act 94-1057 shall not
19require the System to refund any payments received before July
2031, 2006 (the effective date of Public Act 94-1057).
21    When assessing payment for any amount due under subsection
22(f), the System shall exclude salary increases paid to teachers
23under contracts or collective bargaining agreements entered
24into, amended, or renewed before June 1, 2005.
25    When assessing payment for any amount due under subsection
26(f), the System shall exclude salary increases paid to a

 

 

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1teacher at a time when the teacher is 10 or more years from
2retirement eligibility under Section 16-132 or 16-133.2.
3    When assessing payment for any amount due under subsection
4(f), the System shall exclude salary increases resulting from
5overload work, including summer school, when the school
6district has certified to the System, and the System has
7approved the certification, that (i) the overload work is for
8the sole purpose of classroom instruction in excess of the
9standard number of classes for a full-time teacher in a school
10district during a school year and (ii) the salary increases are
11equal to or less than the rate of pay for classroom instruction
12computed on the teacher's current salary and work schedule.
13    When assessing payment for any amount due under subsection
14(f), the System shall exclude a salary increase resulting from
15a promotion (i) for which the employee is required to hold a
16certificate or supervisory endorsement issued by the State
17Teacher Certification Board that is a different certification
18or supervisory endorsement than is required for the teacher's
19previous position and (ii) to a position that has existed and
20been filled by a member for no less than one complete academic
21year and the salary increase from the promotion is an increase
22that results in an amount no greater than the lesser of the
23average salary paid for other similar positions in the district
24requiring the same certification or the amount stipulated in
25the collective bargaining agreement for a similar position
26requiring the same certification.

 

 

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1    When assessing payment for any amount due under subsection
2(f), the System shall exclude any payment to the teacher from
3the State of Illinois or the State Board of Education over
4which the employer does not have discretion, notwithstanding
5that the payment is included in the computation of final
6average salary.
7    (h) When assessing payment for any amount due under
8subsection (f), the System shall exclude any salary increase
9described in subsection (g) of this Section given on or after
10July 1, 2011 but before July 1, 2014 under a contract or
11collective bargaining agreement entered into, amended, or
12renewed on or after June 1, 2005 but before July 1, 2011.
13Notwithstanding any other provision of this Section, any
14payments made or salary increases given after June 30, 2014
15shall be used in assessing payment for any amount due under
16subsection (f) of this Section.
17    (i) The System shall prepare a report and file copies of
18the report with the Governor and the General Assembly by
19January 1, 2007 that contains all of the following information:
20        (1) The number of recalculations required by the
21    changes made to this Section by Public Act 94-1057 for each
22    employer.
23        (2) The dollar amount by which each employer's
24    contribution to the System was changed due to
25    recalculations required by Public Act 94-1057.
26        (3) The total amount the System received from each

 

 

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1    employer as a result of the changes made to this Section by
2    Public Act 94-4.
3        (4) The increase in the required State contribution
4    resulting from the changes made to this Section by Public
5    Act 94-1057.
6    (j) For purposes of determining the required State
7contribution to the System, the value of the System's assets
8shall be equal to the actuarial value of the System's assets,
9which shall be calculated as follows:
10    As of June 30, 2008, the actuarial value of the System's
11assets shall be equal to the market value of the assets as of
12that date. In determining the actuarial value of the System's
13assets for fiscal years after June 30, 2008, any actuarial
14gains or losses from investment return incurred in a fiscal
15year shall be recognized in equal annual amounts over the
165-year period following that fiscal year.
17    (k) For purposes of determining the required State
18contribution to the system for a particular year, the actuarial
19value of assets shall be assumed to earn a rate of return equal
20to the system's actuarially assumed rate of return.
21(Source: P.A. 96-43, eff. 7-15-09; 96-1497, eff. 1-14-11;
2296-1511, eff. 1-27-11; 96-1554, eff. 3-18-11; 97-694, eff.
236-18-12; 97-813, eff. 7-13-12.)
 
24    (40 ILCS 5/16-158.2 new)
25    Sec. 16-158.2. Obligations of State; funding guarantee.

 

 

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1    (a) Beginning July 1, 2014, the State shall be obligated to
2contribute to the System in each State fiscal year an amount
3not less than the sum of (i) the State's normal cost for the
4year and (ii) the portion of the unfunded accrued liability
5assigned to that year by law. Notwithstanding any other
6provision of law, if the State fails to pay an amount required
7under this subsection, it shall be the obligation of the Board
8to seek payment of the required amount in compliance with the
9provisions of this Section and, if the amount remains unpaid,
10to bring a mandamus action in the Supreme Court of Illinois to
11compel the State to make the required payment.
12    If the System submits a voucher for contributions required
13under Section 16-158 and the State fails to pay that voucher
14within 90 days of its receipt, the Board shall submit a written
15request to the Comptroller seeking payment. A copy of the
16request shall be filed with the Secretary of State, and the
17Secretary of State shall provide a copy to the Governor and
18General Assembly. No earlier than the 16th day after the System
19files the request with the Comptroller and Secretary of State,
20if the amount remains unpaid the Board shall commence a
21mandamus action in the Supreme Court of Illinois to compel the
22Comptroller to satisfy the voucher.
23    This subsection (a) constitutes an express waiver of the
24State's sovereign immunity solely to the extent that it permits
25the Board to commence a mandamus action in the Supreme Court of
26Illinois to compel the Comptroller to pay a voucher for the

 

 

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1contributions required under Section 16-158.
2    (b) Beginning in State fiscal year 2016, the State shall be
3obligated to make the transfers set forth in subsections (c-5)
4and (c-10) of Section 20 of the Budget Stabilization Act and to
5pay to the System its proportionate share of the transferred
6amounts in accordance with Section 25 of the Budget
7Stabilization Act. Notwithstanding any other provision of law,
8if the State fails to transfer an amount required under this
9subsection or to pay to the System its proportionate share of
10the transferred amount in accordance with Section 25 of the
11Budget Stabilization Act, it shall be the obligation of the
12Board to seek transfer or payment of the required amount in
13compliance with the provisions of this Section and, if the
14required amount remains untransferred or the required payment
15remains unpaid, to bring a mandamus action in the Supreme Court
16of Illinois to compel the State to make the required transfer
17or payment or both, as the case may be.
18    If the State fails to make a transfer required under
19subsection (c-5) or (c-10) of Section 20 of the Budget
20Stabilization Act or a payment to the System required under
21Section 25 of that Act, the Board shall submit a written
22request to the Comptroller seeking payment. A copy of the
23request shall be filed with the Secretary of State, and the
24Secretary of State shall provide a copy to the Governor and
25General Assembly. No earlier than the 16th day after the System
26files the request with the Comptroller and Secretary of State,

 

 

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1if the required amount remains untransferred or the required
2payment remains unpaid, the Board shall commence a mandamus
3action in the Supreme Court of Illinois to compel the
4Comptroller to make the required transfer or payment or both,
5as the case may be.
6    This subsection (b) constitutes an express waiver of the
7State's sovereign immunity solely to the extent that it permits
8the Board to commence a mandamus action in the Supreme Court of
9Illinois to compel the Comptroller to make a transfer required
10under subsection (c-5) or (c-10) of Section 20 of the Budget
11Stabilization Act and to pay to the System its proportionate
12share of the transferred amount in accordance with Section 25
13of the Budget Stabilization Act.
14    The obligations created by this subsection (b) expire when
15all of the requirements of subsections (c-5) and (c-10) of
16Section 20 of the Budget Stabilization Act and Section 25 of
17the Budget Stabilization Act have been met.
18    (c) Any payments and transfers required to be made by the
19State pursuant to subsection (a) or (b) are expressly
20subordinate to the payment of the principal, interest, and
21premium, if any, on any bonded debt obligation of the State or
22any other State-created entity, either currently outstanding
23or to be issued, for which the source of repayment or security
24thereon is derived directly or indirectly from tax revenues
25collected by the State or any other State-created entity.
26Payments on such bonded obligations include any statutory fund

 

 

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1transfers or other prefunding mechanisms or formulas set forth,
2now or hereafter, in State law or bond indentures, into debt
3service funds or accounts of the State related to such bond
4obligations, consistent with the payment schedules associated
5with such obligations.
 
6    (40 ILCS 5/16-203)
7    Sec. 16-203. Application and expiration of new benefit
8increases.
9    (a) As used in this Section, "new benefit increase" means
10an increase in the amount of any benefit provided under this
11Article, or an expansion of the conditions of eligibility for
12any benefit under this Article, that results from an amendment
13to this Code that takes effect after June 1, 2005 (the
14effective date of Public Act 94-4). "New benefit increase",
15however, does not include any benefit increase resulting from
16the changes made to this Article by Public Act 95-910 or by
17this amendatory Act of the 98th 95th General Assembly.
18    (b) Notwithstanding any other provision of this Code or any
19subsequent amendment to this Code, every new benefit increase
20is subject to this Section and shall be deemed to be granted
21only in conformance with and contingent upon compliance with
22the provisions of this Section.
23    (c) The Public Act enacting a new benefit increase must
24identify and provide for payment to the System of additional
25funding at least sufficient to fund the resulting annual

 

 

SB0001CCR001- 300 -LRB098 05457 EFG 50220 c

1increase in cost to the System as it accrues.
2    Every new benefit increase is contingent upon the General
3Assembly providing the additional funding required under this
4subsection. The Commission on Government Forecasting and
5Accountability shall analyze whether adequate additional
6funding has been provided for the new benefit increase and
7shall report its analysis to the Public Pension Division of the
8Department of Insurance Financial and Professional Regulation.
9A new benefit increase created by a Public Act that does not
10include the additional funding required under this subsection
11is null and void. If the Public Pension Division determines
12that the additional funding provided for a new benefit increase
13under this subsection is or has become inadequate, it may so
14certify to the Governor and the State Comptroller and, in the
15absence of corrective action by the General Assembly, the new
16benefit increase shall expire at the end of the fiscal year in
17which the certification is made.
18    (d) Every new benefit increase shall expire 5 years after
19its effective date or on such earlier date as may be specified
20in the language enacting the new benefit increase or provided
21under subsection (c). This does not prevent the General
22Assembly from extending or re-creating a new benefit increase
23by law.
24    (e) Except as otherwise provided in the language creating
25the new benefit increase, a new benefit increase that expires
26under this Section continues to apply to persons who applied

 

 

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1and qualified for the affected benefit while the new benefit
2increase was in effect and to the affected beneficiaries and
3alternate payees of such persons, but does not apply to any
4other person, including without limitation a person who
5continues in service after the expiration date and did not
6apply and qualify for the affected benefit while the new
7benefit increase was in effect.
8(Source: P.A. 94-4, eff. 6-1-05; 95-910, eff. 8-26-08.)
 
9    (40 ILCS 5/16-205 new)
10    Sec. 16-205. Defined contribution plan.
11    (a) By July 1, 2015, the System shall prepare and implement
12a voluntary defined contribution plan for up to 5% of eligible
13active Tier 1 members. The System shall determine the 5% cap by
14the number of active Tier 1 members on the effective date of
15this Section. The defined contribution plan developed under
16this Section shall be a plan that aggregates employer and
17employee contributions in individual participant accounts
18which, after meeting any other requirements, are used for
19payouts after retirement in accordance with this Section and
20any other applicable laws.
21    As used in this Section, "defined benefit plan" means the
22retirement plan available under this Article to Tier 1 members
23who have not made the election authorized under this Section.
24        (1) Under the defined contribution plan, an active Tier
25    1 member of this System could elect to cease accruing

 

 

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1    benefits in the defined benefit plan under this Article and
2    begin accruing benefits for future service in the defined
3    contribution plan. Service credit under the defined
4    contribution plan may be used for determining retirement
5    eligibility under the defined benefit plan. An active Tier
6    1 member who elects to cease accruing benefits in his or
7    her defined benefit plan shall be prohibited from
8    purchasing service credit on or after the date of his or
9    her election. A Tier 1 member making the irrevocable
10    election provided under this Section shall not receive
11    interest accruals to his or her benefit under paragraph (A)
12    of subsection (a) of Section 16-133 on or after the date of
13    his or her election.
14        (2) Participants in the defined contribution plan
15    shall pay employee contributions at the same rate as Tier 1
16    members in this System who do not participate in the
17    defined contribution plan.
18        (3) State contributions shall be paid into the accounts
19    of all participants in the defined contribution plan at a
20    uniform rate, expressed as a percentage of salary and
21    determined for each year. This rate shall be no higher than
22    the employer's normal cost for Tier 1 members in the
23    defined benefit plan for that year, as determined by the
24    System and expressed as a percentage of salary, and shall
25    be no lower than 0% of salary. The State shall adjust this
26    rate annually.

 

 

SB0001CCR001- 303 -LRB098 05457 EFG 50220 c

1        (4) The defined contribution plan shall require 5 years
2    of participation in the defined contribution plan before
3    vesting in State contributions. If the participant fails to
4    vest in them, the State contributions, and the earnings
5    thereon, shall be forfeited.
6        (5) The defined contribution plan may provide for
7    participants in the plan to be eligible for the defined
8    disability benefits available to other participants under
9    this Article. If it does, the System shall reduce the
10    employee contributions credited to the member's defined
11    contribution plan account by an amount determined by the
12    System to cover the cost of offering such benefits.
13        (6) The defined contribution plan shall provide a
14    variety of options for investments. These options shall
15    include investments in a fund created by the System and
16    managed in accordance with legal and fiduciary standards,
17    as well as investment options otherwise available.
18        (7) The defined contribution plan shall provide a
19    variety of options for payouts to retirees and their
20    survivors.
21        (8) To the extent authorized under federal law and as
22    authorized by the System, the plan shall allow former
23    participants in the plan to transfer or roll over employee
24    and vested State contributions, and the earnings thereon,
25    into other qualified retirement plans.
26        (9) The System shall reduce the employee contributions

 

 

SB0001CCR001- 304 -LRB098 05457 EFG 50220 c

1    credited to the member's defined contribution plan account
2    by an amount determined by the System to cover the cost of
3    offering these benefits and any applicable administrative
4    fees.
5    (b) Only persons who are active Tier 1 members of the
6System on the effective date of this Section are eligible to
7participate in the defined contribution plan. Participation in
8the defined contribution plan shall be limited to the first 5%
9of eligible persons who elect to participate. The election to
10participate in the defined contribution plan is voluntary and
11irrevocable.
12    (c) An eligible Tier 1 employee may irrevocably elect to
13participate in the defined contribution plan by filing with the
14System a written application to participate that is received by
15the System prior to its determination that 5% of eligible
16persons have elected to participate in the defined contribution
17plan.
18    When the System first determines that 5% of eligible
19persons have elected to participate in the defined contribution
20plan, the System shall provide notice to previously eligible
21employees that the plan is no longer available and shall cease
22accepting applications to participate.
23    (d) The System shall make a good faith effort to contact
24each active Tier 1 member who is eligible to participate in the
25defined contribution plan. The System shall mail information
26describing the option to join the defined contribution plan to

 

 

SB0001CCR001- 305 -LRB098 05457 EFG 50220 c

1each of these employees to his or her last known address on
2file with the System. If the employee is not responsive to
3other means of contact, it is sufficient for the System to
4publish the details of the option on its website.
5    Upon request for further information describing the
6option, the System shall provide employees with information
7from the System before exercising the option to join the plan,
8including information on the impact to their vested benefits or
9non-vested service. The individual consultation shall include
10projections of the member's defined benefits at retirement or
11earlier termination of service and the value of the member's
12account at retirement or earlier termination of service. The
13System shall not provide advice or counseling with respect to
14whether the employee should exercise the option. The System
15shall inform Tier 1 employees who are eligible to participate
16in the defined contribution plan that they may also wish to
17obtain information and counsel relating to their option from
18any other available source, including but not limited to labor
19organizations, private counsel, and financial advisors.
20    (e) In no event shall the System, its staff, its authorized
21representatives, or the Board be liable for any information
22given to an employee under this Section. The System may
23coordinate with the Illinois Department of Central Management
24Services and other retirement systems administering a defined
25contribution plan in accordance with this amendatory Act of the
2698th General Assembly to provide information concerning the

 

 

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1impact of the option set forth in this Section.
2    (f) Notwithstanding any other provision of this Section, no
3person shall begin participating in the defined contribution
4plan until it has attained qualified plan status and received
5all necessary approvals from the U.S. Internal Revenue Service.
6    (g) The System shall report on its progress under this
7Section, including the available details of the defined
8contribution plan and the System's plans for informing eligible
9Tier 1 members about the plan, to the Governor and the General
10Assembly on or before January 15, 2015.
11    (h) The intent of this amendatory Act of the 98th General
12Assembly is to ensure that the State's normal cost of
13participation in the defined contribution plan is similar, and
14if possible equal, to the State's normal cost of participation
15in the defined benefit plan, unless a lower State's normal cost
16is necessary to ensure cost neutrality.
 
17    (40 ILCS 5/16-206 new)
18    Sec. 16-206. Defined contribution plan; termination. If
19the defined contribution plan is terminated or becomes
20inoperative pursuant to law, then each participant in the plan
21shall automatically be deemed to have been a contributing Tier
221 member in the System's defined benefit plan during the time
23in which he or she participated in the defined contribution
24plan, and for that purpose the System shall be entitled to
25recover the amounts in the participant's defined contribution

 

 

SB0001CCR001- 307 -LRB098 05457 EFG 50220 c

1accounts.
 
2    (40 ILCS 5/17-116)  (from Ch. 108 1/2, par. 17-116)
3    Sec. 17-116. Service retirement pension.
4    (a) Each teacher having 20 years of service upon attainment
5of age 55, or who thereafter attains age 55 shall be entitled
6to a service retirement pension upon or after attainment of age
755; and each teacher in service on or after July 1, 1971, with
85 or more but less than 20 years of service shall be entitled
9to receive a service retirement pension upon or after
10attainment of age 62.
11    (b) The service retirement pension for a teacher who
12retires on or after June 25, 1971, at age 60 or over, shall be
13calculated as follows:
14        (1) For creditable service earned before July 1, 1998
15    that has not been augmented under Section 17-119.1: 1.67%
16    for each of the first 10 years of service; 1.90% for each
17    of the next 10 years of service; 2.10% for each year of
18    service in excess of 20 but not exceeding 30; and 2.30% for
19    each year of service in excess of 30, based upon average
20    salary as herein defined.
21        (2) For creditable service earned on or after July 1,
22    1998 by a member who has at least 30 years of creditable
23    service on July 1, 1998 and who does not elect to augment
24    service under Section 17-119.1: 2.3% of average salary for
25    each year of creditable service earned on or after July 1,

 

 

SB0001CCR001- 308 -LRB098 05457 EFG 50220 c

1    1998.
2        (3) For all other creditable service: 2.2% of average
3    salary for each year of creditable service.
4    (c) When computing such service retirement pensions, the
5following conditions shall apply:
6        1. Average salary shall consist of the average annual
7    rate of salary for the 4 consecutive years of validated
8    service within the last 10 years of service when such
9    average annual rate was highest. In the determination of
10    average salary for retirement allowance purposes, for
11    members who commenced employment after August 31, 1979,
12    that part of the salary for any year shall be excluded
13    which exceeds the annual full-time salary rate for the
14    preceding year by more than 20%. In the case of a member
15    who commenced employment before August 31, 1979 and who
16    receives salary during any year after September 1, 1983
17    which exceeds the annual full time salary rate for the
18    preceding year by more than 20%, an Employer and other
19    employers of eligible contributors as defined in Section
20    17-106 shall pay to the Fund an amount equal to the present
21    value of the additional service retirement pension
22    resulting from such excess salary. The present value of the
23    additional service retirement pension shall be computed by
24    the Board on the basis of actuarial tables adopted by the
25    Board. If a member elects to receive a pension from this
26    Fund provided by Section 20-121, his salary under the State

 

 

SB0001CCR001- 309 -LRB098 05457 EFG 50220 c

1    Universities Retirement System and the Teachers'
2    Retirement System of the State of Illinois shall be
3    considered in determining such average salary. Amounts
4    paid after the effective date of this amendatory Act of
5    1991 for unused vacation time earned after that effective
6    date shall not under any circumstances be included in the
7    calculation of average salary or the annual rate of salary
8    for the purposes of this Article.
9        2. Proportionate credit shall be given for validated
10    service of less than one year.
11        3. For retirement at age 60 or over the pension shall
12    be payable at the full rate.
13        4. For separation from service below age 60 to a
14    minimum age of 55, the pension shall be discounted at the
15    rate of 1/2 of one per cent for each month that the age of
16    the contributor is less than 60, but a teacher may elect to
17    defer the effective date of pension in order to eliminate
18    or reduce this discount. This discount shall not be
19    applicable to any participant who has at least 34 years of
20    service or a retirement pension of at least 74.6% of
21    average salary on the date the retirement annuity begins.
22        5. No additional pension shall be granted for service
23    exceeding 45 years. Beginning June 26, 1971 no pension
24    shall exceed the greater of $1,500 per month or 75% of
25    average salary as herein defined.
26        6. Service retirement pensions shall begin on the

 

 

SB0001CCR001- 310 -LRB098 05457 EFG 50220 c

1    effective date of resignation, retirement, the day
2    following the close of the payroll period for which service
3    credit was validated, or the time the person resigning or
4    retiring attains age 55, or on a date elected by the
5    teacher, whichever shall be latest.
6        7. A member who is eligible to receive a retirement
7    pension of at least 74.6% of average salary and will attain
8    age 55 on or before December 31 during the year which
9    commences on July 1 shall be deemed to attain age 55 on the
10    preceding June 1.
11        8. A member retiring after the effective date of this
12    amendatory Act of 1998 shall receive a pension equal to 75%
13    of average salary if the member is qualified to receive a
14    retirement pension equal to at least 74.6% of average
15    salary under this Article or as proportional annuities
16    under Article 20 of this Code.
17        9. In the case of a person who first becomes a
18    participant on or after the effective date of this
19    amendatory Act of the 98th General Assembly, payments for
20    unused sick or vacation time shall not be used in the
21    calculation of average salary.
22(Source: P.A. 90-566, eff. 1-2-98; 90-582, eff. 5-27-98.)
 
23    (40 ILCS 5/17-134)  (from Ch. 108 1/2, par. 17-134)
24    Sec. 17-134. Contributions for leaves of absence; military
25service; computing service. In computing service for pension

 

 

SB0001CCR001- 311 -LRB098 05457 EFG 50220 c

1purposes the following periods of service shall stand in lieu
2of a like number of years of teaching service upon payment
3therefor in the manner hereinafter provided: (a) time spent on
4a leave of absence granted by the employer; (b) service with
5teacher or labor organizations based upon special leaves of
6absence therefor granted by an Employer; (c) a maximum of 5
7years spent in the military service of the United States, of
8which up to 2 years may have been served outside the pension
9period; (d) unused sick days at termination of service to a
10maximum of 244 days; (e) time lost due to layoff and
11curtailment of the school term from June 6 through June 21,
121976; and (f) time spent after June 30, 1982 as a member of the
13Board of Education, if required to resign from an
14administrative or teaching position in order to qualify as a
15member of the Board of Education.
16        (1) For time spent on or after September 6, 1948 on
17    sabbatical leaves of absence or sick leaves, for which
18    salaries are paid, an Employer shall make payroll
19    deductions at the applicable rates in effect during such
20    periods.
21        (2) For time spent on a leave of absence granted by the
22    employer for which no salaries are paid, teachers desiring
23    credit therefor shall pay the required contributions at the
24    rates in effect during such periods as though they were in
25    teaching service. If an Employer pays salary for vacations
26    which occur during a teacher's sick leave or maternity or

 

 

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1    paternity leave without salary, vacation pay for which the
2    teacher would have qualified while in active service shall
3    be considered part of the teacher's total salary for
4    pension purposes. No more than 36 months of leave credit
5    may be allowed any person during the entire term of
6    service. Sabbatical leave credit shall be limited to the
7    time the person on leave without salary under an Employer's
8    rules is allowed to engage in an activity for which he
9    receives salary or compensation.
10        (3) For time spent prior to September 6, 1948, on
11    sabbatical leaves of absence or sick leaves for which
12    salaries were paid, teachers desiring service credit
13    therefor shall pay the required contributions at the
14    maximum applicable rates in effect during such periods.
15        (4) For service with teacher or labor organizations
16    authorized by special leaves of absence, for which no
17    payroll deductions are made by an Employer, teachers
18    desiring service credit therefor shall contribute to the
19    Fund upon the basis of the actual salary received from such
20    organizations at the percentage rates in effect during such
21    periods for certified positions with such Employer. To the
22    extent the actual salary exceeds the regular salary, which
23    shall be defined as the salary rate, as calculated by the
24    Board, in effect for the teacher's regular position in
25    teaching service on September 1, 1983 or on the effective
26    date of the leave with the organization, whichever is

 

 

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1    later, the organization shall pay to the Fund the
2    employer's normal cost as set by the Board on the
3    increment. Notwithstanding any other provision of this
4    subdivision (4), teachers are only eligible for credit for
5    service under this subdivision (4) if the special leave of
6    absence begins before January 5, 2012 (the effective date
7    of Public Act 97-651) this amendatory Act of the 97th
8    General Assembly.
9        (5) For time spent in the military service, teachers
10    entitled to and desiring credit therefor shall contribute
11    the amount required for each year of service or fraction
12    thereof at the rates in force (a) at the date of
13    appointment, or (b) on return to teaching service as a
14    regularly certified teacher, as the case may be; provided
15    such rates shall not be less than $450 per year of service.
16    These conditions shall apply unless an Employer elects to
17    and does pay into the Fund the amount which would have been
18    due from such person had he been employed as a teacher
19    during such time. In the case of credit for military
20    service not during the pension period, the teacher must
21    also pay to the Fund an amount determined by the Board to
22    be equal to the employer's normal cost of the benefits
23    accrued from such service, plus interest thereon at 5% per
24    year, compounded annually, from the date of appointment to
25    the date of payment.
26        The changes to this Section made by Public Act 87-795

 

 

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1    shall apply not only to persons who on or after its
2    effective date are in service under the Fund, but also to
3    persons whose status as a teacher terminated prior to that
4    date, whether or not the person is an annuitant on that
5    date. In the case of an annuitant who applies for credit
6    allowable under this Section for a period of military
7    service that did not immediately follow employment, and who
8    has made the required contributions for such credit, the
9    annuity shall be recalculated to include the additional
10    service credit, with the increase taking effect on the date
11    the Fund received written notification of the annuitant's
12    intent to purchase the credit, if payment of all the
13    required contributions is made within 60 days of such
14    notice, or else on the first annuity payment date following
15    the date of payment of the required contributions. In
16    calculating the automatic annual increase for an annuity
17    that has been recalculated under this Section, the increase
18    attributable to the additional service allowable under
19    this amendatory Act of 1991 shall be included in the
20    calculation of automatic annual increases accruing after
21    the effective date of the recalculation.
22        The total credit for military service shall not exceed
23    5 years, except that any teacher who on July 1, 1963, had
24    validated credit for more than 5 years of military service
25    shall be entitled to the total amount of such credit.
26        (6) For persons who first become teachers before the

 

 

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1    effective date of this amendatory Act of the 98th General
2    Assembly, a A maximum of 244 unused sick days credited to
3    his account by an Employer on the date of termination of
4    employment. Members, upon verification of unused sick
5    days, may add this service time to total creditable
6    service.
7        (7) In all cases where time spent on leave is
8    creditable and no payroll deductions therefor are made by
9    an Employer, persons desiring service credit shall make the
10    required contributions directly to the Fund.
11        (8) For time lost without pay due to layoff and
12    curtailment of the school term from June 6 through June 21,
13    1976, as provided in item (e) of the first paragraph of
14    this Section, persons who were contributors on the days
15    immediately preceding such layoff shall receive credit
16    upon paying to the Fund a contribution based on the rates
17    of compensation and employee contributions in effect at the
18    time of such layoff, together with an additional amount
19    equal to 12.2% of the compensation computed for such period
20    of layoff, plus interest on the entire amount at 5% per
21    annum from January 1, 1978 to the date of payment. If such
22    contribution is paid, salary for pension purposes for any
23    year in which such a layoff occurred shall include the
24    compensation recognized for purposes of computing that
25    contribution.
26        (9) For time spent after June 30, 1982, as a

 

 

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1    nonsalaried member of the Board of Education, if required
2    to resign from an administrative or teaching position in
3    order to qualify as a member of the Board of Education, an
4    administrator or teacher desiring credit therefor shall
5    pay the required contributions at the rates and salaries in
6    effect during such periods as though the member were in
7    service.
8    Effective September 1, 1974, the interest charged for
9validation of service described in paragraphs (2) through (5)
10of this Section shall be compounded annually at a rate of 5%
11commencing one year after the termination of the leave or
12return to service.
13(Source: P.A. 97-651, eff. 1-5-12.)
 
14    (40 ILCS 5/20-106)  (from Ch. 108 1/2, par. 20-106)
15    Sec. 20-106. Final average salary.
16    (a) "Final average salary": The average (or other) salary
17which is considered by a participating system in determining
18the amount of the retirement annuity or survivor's annuity.
19    (b) Earnings credits under all participating systems shall
20be considered by each system in determining final average
21salary, but subject to the limitations imposed by this
22amendatory Act of the 98th General Assembly for a participant
23in a defined contribution plan established under Article 2, 14,
2415, or 16 of this Code. In calculating a proportional
25retirement or survivor's annuity based on these earnings

 

 

SB0001CCR001- 317 -LRB098 05457 EFG 50220 c

1credits, the participating system shall apply any limitations
2on earnings for annuity purposes that are imposed by the
3Article governing the system.
4(Source: P.A. 88-593, eff. 8-22-94.)
 
5    (40 ILCS 5/20-121)  (from Ch. 108 1/2, par. 20-121)
6    Sec. 20-121. Calculation of proportional retirement
7annuities.
8    (a) Upon retirement of the employee, a proportional
9retirement annuity shall be computed by each participating
10system in which pension credit has been established on the
11basis of pension credits under each system. The computation
12shall be in accordance with the formula or method prescribed by
13each participating system which is in effect at the date of the
14employee's latest withdrawal from service covered by any of the
15systems in which he has pension credits which he elects to have
16considered under this Article. However, the amount of any
17retirement annuity payable under the self-managed plan
18established under Section 15-158.2 of this Code or under the
19defined contribution plan established under Article 2, 14, 15,
20or 16 of this Code depends solely on the value of the
21participant's vested account balances and is not subject to any
22proportional adjustment under this Section.
23    (a-5) For persons who participate in a defined contribution
24plan established under Article 2, 14, 15, or 16 of this Code to
25whom the provisions of this Article apply, the pension credits

 

 

SB0001CCR001- 318 -LRB098 05457 EFG 50220 c

1established under the defined contribution plan may be
2considered in determining eligibility for or the amount of the
3defined benefit retirement annuity that is payable by any other
4participating system.
5    (b) Combined pension credit under all retirement systems
6subject to this Article shall be considered in determining
7whether the minimum qualification has been met and the formula
8or method of computation which shall be applied, except as may
9be otherwise provided with respect to vesting in State or
10employer contributions in a defined contribution plan. If a
11system has a step-rate formula for calculation of the
12retirement annuity, pension credits covering previous service
13which have been established under another system shall be
14considered in determining which range or ranges of the
15step-rate formula are to be applicable to the employee.
16    (c) Interest on pension credit shall continue to accumulate
17in accordance with the provisions of the law governing the
18retirement system in which the same has been established during
19the time an employee is in the service of another employer, on
20the assumption such employee, for interest purposes for pension
21credit, is continuing in the service covered by such retirement
22system.
23(Source: P.A. 91-887, eff. 7-6-00.)
 
24    (40 ILCS 5/20-123)  (from Ch. 108 1/2, par. 20-123)
25    Sec. 20-123. Survivor's annuity. The provisions governing

 

 

SB0001CCR001- 319 -LRB098 05457 EFG 50220 c

1a retirement annuity shall be applicable to a survivor's
2annuity. Appropriate credits shall be established for
3survivor's annuity purposes in those participating systems
4which provide survivor's annuities, according to the same
5conditions and subject to the same limitations and restrictions
6herein prescribed for a retirement annuity. If a participating
7system has no survivor's annuity benefit, or if the survivor's
8annuity benefit under that system is waived, pension credit
9established in that system shall not be considered in
10determining eligibility for or the amount of the survivor's
11annuity which may be payable by any other participating system.
12    For persons who participate in the self-managed plan
13established under Section 15-158.2 or the portable benefit
14package established under Section 15-136.4, pension credit
15established under Article 15 may be considered in determining
16eligibility for or the amount of the survivor's annuity that is
17payable by any other participating system, but pension credit
18established in any other system shall not result in any right
19to a survivor's annuity under the Article 15 system.
20    For persons who participate in a defined contribution plan
21established under Article 2, 14, 15, or 16 of this Code to whom
22the provisions of this Article apply, the pension credits
23established under the defined contribution plan may be
24considered in determining eligibility for or the amount of the
25defined benefit survivor's annuity that is payable by any other
26participating system, but pension credits established in any

 

 

SB0001CCR001- 320 -LRB098 05457 EFG 50220 c

1other system shall not result in any right to or increase in
2the value of a survivor's annuity under the defined
3contribution plan, which depends solely on the options chosen
4and the value of the participant's vested account balances and
5is not subject to any proportional adjustment under this
6Section.
7(Source: P.A. 91-887, eff. 7-6-00.)
 
8    (40 ILCS 5/20-124)  (from Ch. 108 1/2, par. 20-124)
9    Sec. 20-124. Maximum benefits.
10    (a) In no event shall the combined retirement or survivors
11annuities exceed the highest annuity which would have been
12payable by any participating system in which the employee has
13pension credits, if all of his pension credits had been
14validated in that system.
15    If the combined annuities should exceed the highest maximum
16as determined in accordance with this Section, the respective
17annuities shall be reduced proportionately according to the
18ratio which the amount of each proportional annuity bears to
19the aggregate of all such annuities.
20    (b) In the case of a participant in the self-managed plan
21established under Section 15-158.2 of this Code to whom the
22provisions of this Article apply:
23        (i) For purposes of calculating the combined
24    retirement annuity and the proportionate reduction, if
25    any, in a retirement annuity other than one payable under

 

 

SB0001CCR001- 321 -LRB098 05457 EFG 50220 c

1    the self-managed plan, the amount of the Article 15
2    retirement annuity shall be deemed to be the highest
3    annuity to which the annuitant would have been entitled if
4    he or she had participated in the traditional benefit
5    package as defined in Section 15-103.1 rather than the
6    self-managed plan.
7        (ii) For purposes of calculating the combined
8    survivor's annuity and the proportionate reduction, if
9    any, in a survivor's annuity other than one payable under
10    the self-managed plan, the amount of the Article 15
11    survivor's annuity shall be deemed to be the highest
12    survivor's annuity to which the survivor would have been
13    entitled if the deceased employee had participated in the
14    traditional benefit package as defined in Section 15-103.1
15    rather than the self-managed plan.
16        (iii) Benefits payable under the self-managed plan are
17    not subject to proportionate reduction under this Section.
18    (c) In the case of a participant in a defined contribution
19plan established under Article 2, 14, 15, or 16 of this Code to
20whom the provisions of this Article apply:
21        (i) For purposes of calculating the combined
22    retirement annuity and the proportionate reduction, if
23    any, in a defined benefit retirement annuity, any benefit
24    payable under the defined contribution plan shall not be
25    considered.
26        (ii) For purposes of calculating the combined

 

 

SB0001CCR001- 322 -LRB098 05457 EFG 50220 c

1    survivor's annuity and the proportionate reduction, if
2    any, in a defined benefit survivor's annuity, any benefit
3    payable under the defined contribution plan shall not be
4    considered.
5        (iii) Benefits payable under a defined contribution
6    plan established under Article 2, 14, 15, or 16 of this
7    Code are not subject to proportionate reduction under this
8    Section.
9(Source: P.A. 91-887, eff. 7-6-00.)
 
10    (40 ILCS 5/20-125)  (from Ch. 108 1/2, par. 20-125)
11    Sec. 20-125. Return to employment - suspension of
12benefits. If a retired employee returns to employment which is
13covered by a system from which he is receiving a proportional
14annuity under this Article, his proportional annuity from all
15participating systems shall be suspended during the period of
16re-employment, except that this suspension does not apply to
17any distributions payable under the self-managed plan
18established under Section 15-158.2 or under a defined
19contribution plan established under Article 2, 14, 15, or 16 of
20this Code.
21    The provisions of the Article under which such employment
22would be covered shall govern the determination of whether the
23employee has returned to employment, and if applicable the
24exemption of temporary employment or employment not exceeding a
25specified duration or frequency, for all participating systems

 

 

SB0001CCR001- 323 -LRB098 05457 EFG 50220 c

1from which the retired employee is receiving a proportional
2annuity under this Article, notwithstanding any contrary
3provisions in the other Articles governing such systems.
4(Source: P.A. 91-887, eff. 7-6-00.)
 
5    Section 20. The Illinois Educational Labor Relations Act
6is amended by changing Sections 4 and 17 and by adding Section
710.5 as follows:
 
8    (115 ILCS 5/4)  (from Ch. 48, par. 1704)
9    Sec. 4. Employer rights. Employers shall not be required
10to bargain over matters of inherent managerial policy, which
11shall include such areas of discretion or policy as the
12functions of the employer, standards of services, its overall
13budget, the organizational structure and selection of new
14employees and direction of employees. Employers, however,
15shall be required to bargain collectively with regard to policy
16matters directly affecting wages, hours and terms and
17conditions of employment as well as the impact thereon upon
18request by employee representatives, except as provided in
19Section 10.5. To preserve the rights of employers and exclusive
20representatives which have established collective bargaining
21relationships or negotiated collective bargaining agreements
22prior to the effective date of this Act, employers shall be
23required to bargain collectively with regard to any matter
24concerning wages, hours or conditions of employment about which

 

 

SB0001CCR001- 324 -LRB098 05457 EFG 50220 c

1they have bargained for and agreed to in a collective
2bargaining agreement prior to the effective date of this Act,
3except as provided in Section 10.5.
4
5(Source: P.A. 83-1014.)
 
6    (115 ILCS 5/10.5 new)
7    Sec. 10.5. Duty to bargain regarding pension amendments.
8    (a) Notwithstanding any provision of this Act, employers
9shall not be required to bargain over matters affected by the
10changes, the impact of changes, and the implementation of
11changes made to Article 14, 15, or 16 of the Illinois Pension
12Code, or Article 1 of that Code as it applies to those
13Articles, made by this amendatory Act of the 98th General
14Assembly, or over any other provision of Article 14, 15, or 16
15of the Illinois Pension Code, or of Article 1 of that Code as
16it applies to those Articles, which are prohibited subjects of
17bargaining; nor shall the changes, the impact of changes, or
18the implementation of changes made to Article 14, 15, or 16 of
19the Illinois Pension Code, or to Article 1 of that Code as it
20applies to those Articles, by this amendatory Act of the 98th
21General Assembly or any other provision of Article 14, 15, or
2216 of the Illinois Pension Code, or of Article 1 of that Code
23as it applies to those Articles, be subject to interest
24arbitration or any award issued pursuant to interest
25arbitration. The provisions of this Section shall not apply to

 

 

SB0001CCR001- 325 -LRB098 05457 EFG 50220 c

1an employment contract or collective bargaining agreement that
2is in effect on the effective date of this amendatory Act of
3the 98th General Assembly. However, any such contract or
4agreement that is subsequently modified, amended, or renewed
5shall be subject to the provisions of this Section. The
6provisions of this Section shall also not apply to the ability
7of an employer and employee representative to bargain
8collectively with regard to the pick up of employee
9contributions pursuant to Section 14-133.1, 15-157.1, or
1016-152.1 of the Illinois Pension Code.
11    (b) Nothing in this Section, however, shall be construed as
12otherwise limiting any of the obligations and requirements
13applicable to each employer under any of the provisions of this
14Act, including, but not limited to, the requirement to bargain
15collectively with regard to policy matters directly affecting
16wages, hours and terms and conditions of employment as well as
17the impact thereon upon request by employee representatives,
18except for the matters deemed prohibited subjects of bargaining
19under subsection (a) of this Section. Nothing in this Section
20shall further be construed as otherwise limiting any of the
21rights of employees or employee representatives under the
22provisions of this Act, except for matters deemed prohibited
23subjects of bargaining under subsection (a) of this Section.
24    (c) In case of any conflict between this Section and any
25other provisions of this Act or any other law, the provisions
26of this Section shall control.
 

 

 

SB0001CCR001- 326 -LRB098 05457 EFG 50220 c

1    (115 ILCS 5/17)  (from Ch. 48, par. 1717)
2    Sec. 17. Effect on other laws. Except as provided in
3Section 10.5, in In case of any conflict between the provisions
4of this Act and any other law, executive order or
5administrative regulation, the provisions of this Act shall
6prevail and control. Except as provided in Section 10.5,
7nothing Nothing in this Act shall be construed to replace or
8diminish the rights of employees established by Section 36d of
9"An Act to create the State Universities Civil Service System",
10approved May 11, 1905, as amended or modified.
11(Source: P.A. 83-1014.)
 
12    Section 95. The State Mandates Act is amended by adding
13Section 8.37 as follows:
 
14    (30 ILCS 805/8.37 new)
15    Sec. 8.37. Exempt mandate. Notwithstanding Sections 6 and
168 of this Act, no reimbursement by the State is required for
17the implementation of any mandate created by this amendatory
18Act of the 98th General Assembly.
 
19    Section 97. Severability and inseverability. The
20provisions of this Act are severable under Section 1.31 of the
21Statute on Statutes, except that the changes made to Sections
2220 and 25 of the Budget Stabilization Act and to subsections
23(a), (a-1), (a-2), (b), and (d) of Section 2-119.1, subsections

 

 

SB0001CCR001- 327 -LRB098 05457 EFG 50220 c

1(d), (d-1), and (d-2) of Section 15-136, subsection (a-10) of
2Section 16-158, and Sections 2-124, 2-125, 2-126, 2-134, 2-165,
314-114, 14-115, 14-131, 14-132, 14-133, 14-135.08, 14-155,
415-155, 15-156, 15-157, 15-165, 15-200, 16-133.1, 16-136.1,
516-152, 16-158, 16-158.2, 16-205, 20-106, 20-121, 20-123,
620-124, and 20-125 of the Illinois Pension Code are mutually
7dependent and inseverable from one another but are severable
8from any other provision of this Act.".
 
9    Submitted on December 2, 2013.
10
/s/ Kwame Raoul


/s/ Elaine Nekritz

11Senator RaoulRepresentative Nekritz
12
Linda Holmes


/s/ Michael J. Zalewski

13Senator HolmesRepresentative Zalewski
14
/s/ Daniel Biss


/s/ Arthur Turner

15Senator BissRepresentative Turner
16
/s/ William E. Brady


/s/ Darlene J. Senger

17Senator BradyRepresentative Senger
18
/s/ Matt Murphy


/s/ Jil Tracy

19Senator MurphyRepresentative Tracy
20Committee for the SenateCommittee for the House