Rep. Michael Halpin

Filed: 5/18/2021

 

 


 

 


 
10200SB1056ham001LRB102 04871 AMC 26537 a

1
AMENDMENT TO SENATE BILL 1056

2    AMENDMENT NO. ______. Amend Senate Bill 1056 by replacing
3everything after the enacting clause with the following:
 
4
"Article 5.

 
5    Section 5-5. The Illinois Pension Code is amended by
6changing Sections 2-121.3, 7-141, 14-121.1, 15-135, 16-142.3,
7and 18-128.3 as follows:
 
8    (40 ILCS 5/2-121.3)  (from Ch. 108 1/2, par. 2-121.3)
9    Sec. 2-121.3. Required distributions.
10    (a) A person who would be eligible to receive a survivor's
11annuity under this Article but for the fact that the person has
12not yet attained age 50, shall be eligible for a monthly
13distribution under this subsection (a), provided that the
14payment of such distribution is required by federal law.
15    The distribution shall become payable on (i) July 1, 1987,

 

 

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1(ii) December 1 of the calendar year immediately following the
2calendar year in which the deceased spouse died, or (iii)
3December 1 of the calendar year in which the deceased spouse
4would have attained age 72 70 1/2, whichever occurs last, and
5shall remain payable until the first of the following to
6occur: (1) the person becomes eligible to receive a survivor's
7annuity under this Article; (2) the end of the month in which
8the person ceases to be eligible to receive a survivor's
9annuity upon attainment of age 50, due to remarriage or death;
10or (3) the end of the month in which such distribution ceases
11to be required by federal law.
12    The amount of the distribution shall be fixed at the time
13the distribution first becomes payable, and shall be
14calculated in the same manner as a survivor's annuity under
15Sections 2-121, 2-121.1 and 2-121.2, but excluding: (A) any
16requirement for an application for the distribution; (B) any
17automatic annual increases, supplemental increases, or
18one-time increases that may be provided by law for survivor's
19annuities; and (C) any lump-sum or death benefit.
20    (b) For the purpose of this Section, a distribution shall
21be deemed to be required by federal law if: (1) directly
22mandated by federal statute, rule, or administrative or court
23decision; or (2) indirectly mandated through imposition of
24substantial tax or other penalties for noncompliance.
25    (c) Notwithstanding Section 1-103.1 of this Code, a member
26need not be in service on or after the effective date of this

 

 

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1amendatory Act of 1989 for the member's surviving spouse to be
2eligible for a distribution under this Section.
3(Source: P.A. 86-273.)
 
4    (40 ILCS 5/7-141)  (from Ch. 108 1/2, par. 7-141)
5    Sec. 7-141. Retirement annuities; conditions annuities -
6Conditions. Retirement annuities shall be payable as
7hereinafter set forth:
8    (a) A participating employee who, regardless of cause, is
9separated from the service of all participating municipalities
10and instrumentalities thereof and participating
11instrumentalities shall be entitled to a retirement annuity
12provided:
13        1. He is at least age 55, or in the case of a person
14    who is eligible to have his annuity calculated under
15    Section 7-142.1, he is at least age 50;
16        2. He is not entitled to receive earnings for
17    employment in a position requiring him, or entitling him
18    to elect, to be a participating employee;
19        3. The amount of his annuity, before the application
20    of paragraph (b) of Section 7-142 is at least $10 per
21    month;
22        4. If he first became a participating employee after
23    December 31, 1961, he has at least 8 years of service. This
24    service requirement shall not apply to any participating
25    employee, regardless of participation date, if the General

 

 

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1    Assembly terminates the Fund.
2    (b) Retirement annuities shall be payable:
3        1. As provided in Section 7-119;
4        2. Except as provided in item 3, upon receipt by the
5    fund of a written application. The effective date may be
6    not more than one year prior to the date of the receipt by
7    the fund of the application;
8        3. Upon attainment of the required age of distribution
9    under Section 401(a)(9) of the Internal Revenue Code of
10    1986, as amended, age 70 1/2 if the member (i) is no longer
11    in service, and (ii) is otherwise entitled to an annuity
12    under this Article;
13        4. To the beneficiary of the deceased annuitant for
14    the unpaid amount accrued to date of death, if any.
15(Source: P.A. 97-328, eff. 8-12-11; 97-609, eff. 1-1-12.)
 
16    (40 ILCS 5/14-121.1)  (from Ch. 108 1/2, par. 14-121.1)
17    Sec. 14-121.1. Required distributions.
18    (a) A person who would be eligible to receive a widow's or
19survivor's annuity under this Article but for the fact that
20the person has not yet attained age 50, shall be eligible for a
21monthly distribution under this subsection (a), provided that
22the payment of such distribution is required by federal law.
23    The distribution shall become payable on (i) July 1, 1987,
24(ii) December 1 of the calendar year immediately following the
25calendar year in which the deceased spouse died, or (iii)

 

 

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1December 1 of the calendar year in which the deceased spouse
2would have attained age 72 70 1/2, whichever occurs last, and
3shall remain payable until the first of the following to
4occur: (1) the person becomes eligible to receive a widow's or
5survivor's annuity under this Article; (2) the end of the
6month in which the person ceases to be eligible to receive a
7widow's or survivor's annuity upon attainment of age 50, due
8to remarriage or death; or (3) the end of the month in which
9such distribution ceases to be required by federal law.
10    The amount of the distribution shall be fixed at the time
11the distribution first becomes payable, and shall be
12calculated in the same manner as a survivor's annuity under
13Sections 14-120, 14-121 and 14-122 (or, in the case of a person
14who has elected to receive a widow's annuity instead of a
15survivor's annuity, in the same manner as the widow's annuity
16under Sections 14-118 and 14-119), but excluding: (A) any
17requirement for an application for the distribution; (B) any
18automatic annual increases, supplemental increases, or
19one-time increases that may be provided by law for survivor's
20or widow's annuities; and (C) any lump-sum or death benefit.
21    (b) For the purpose of this Section, a distribution shall
22be deemed to be required by federal law if: (1) directly
23mandated by federal statute, rule, or administrative or court
24decision; or (2) indirectly mandated through imposition of
25substantial tax or other penalties for noncompliance.
26    (c) Notwithstanding Section 1-103.1 of this Code, a member

 

 

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1need not be in service on or after the effective date of this
2amendatory Act of 1989 for the member's surviving spouse to be
3eligible for a distribution under this Section.
4(Source: P.A. 86-273.)
 
5    (40 ILCS 5/15-135)  (from Ch. 108 1/2, par. 15-135)
6    Sec. 15-135. Retirement annuities; conditions annuities -
7Conditions.
8    (a) This subsection (a) applies only to a Tier 1 member. A
9participant who retires in one of the following specified
10years with the specified amount of service is entitled to a
11retirement annuity at any age under the retirement program
12applicable to the participant:
13        35 years if retirement is in 1997 or before;
14        34 years if retirement is in 1998;
15        33 years if retirement is in 1999;
16        32 years if retirement is in 2000;
17        31 years if retirement is in 2001;
18        30 years if retirement is in 2002 or later.
19    A participant with 8 or more years of service after
20September 1, 1941, is entitled to a retirement annuity on or
21after attainment of age 55.
22    A participant with at least 5 but less than 8 years of
23service after September 1, 1941, is entitled to a retirement
24annuity on or after attainment of age 62.
25    A participant who has at least 25 years of service in this

 

 

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1system as a police officer or firefighter is entitled to a
2retirement annuity on or after the attainment of age 50, if
3Rule 4 of Section 15-136 is applicable to the participant.
4    (a-5) A Tier 2 member is entitled to a retirement annuity
5upon written application if he or she has attained age 67 and
6has at least 10 years of service credit and is otherwise
7eligible under the requirements of this Article. A Tier 2
8member who has attained age 62 and has at least 10 years of
9service credit and is otherwise eligible under the
10requirements of this Article may elect to receive the lower
11retirement annuity provided in subsection (b-5) of Section
1215-136 of this Article.
13    (a-10) A Tier 2 member who has at least 20 years of service
14in this system as a police officer or firefighter is entitled
15to a retirement annuity upon written application on or after
16the attainment of age 60 if Rule 4 of Section 15-136 is
17applicable to the participant. The changes made to this
18subsection by this amendatory Act of the 101st General
19Assembly apply retroactively to January 1, 2011.
20    (b) The annuity payment period shall begin on the date
21specified by the participant or the recipient of a disability
22retirement annuity submitting a written application. For a
23participant, the date on which the annuity payment period
24begins shall not be prior to termination of employment or more
25than one year before the application is received by the board;
26however, if the participant is not an employee of an employer

 

 

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1participating in this System or in a participating system as
2defined in Article 20 of this Code on April 1 of the calendar
3year next following the calendar year in which the participant
4attains the age specified under Section 401(a)(9) of the
5Internal Revenue Code of 1986, as amended 70 1/2, the annuity
6payment period shall begin on that date regardless of whether
7an application has been filed. For a recipient of a disability
8retirement annuity, the date on which the annuity payment
9period begins shall not be prior to the discontinuation of the
10disability retirement annuity under Section 15-153.2.
11    (c) An annuity is not payable if the amount provided under
12Section 15-136 is less than $10 per month.
13(Source: P.A. 100-556, eff. 12-8-17; 101-610, eff. 1-1-20.)
 
14    (40 ILCS 5/16-142.3)  (from Ch. 108 1/2, par. 16-142.3)
15    Sec. 16-142.3. Required distributions.
16    (a) A person who would be eligible to receive a monthly
17survivor benefit under this Article but for the fact that the
18person has not yet attained age 50, and who has not elected to
19receive a lump sum distribution under subsection (a) of
20Section 16-141, shall be eligible for a monthly distribution
21under this subsection (a), provided that the payment of such
22distribution is required by federal law.
23    The distribution shall become payable on (i) July 1, 1987,
24(ii) December 1 of the calendar year immediately following the
25calendar year in which the member or annuitant died, or (iii)

 

 

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1December 1 of the calendar year in which the deceased member or
2annuitant would have attained age 72 70 1/2, whichever occurs
3latest, and shall remain payable until the first of the
4following to occur: (1) the person becomes eligible to receive
5a monthly survivor benefit under this Article; (2) the day
6following the date on which the member ceases to be eligible to
7receive a monthly survivor benefit upon attainment of age 50,
8due to remarriage or death; or (3) the day on which such
9distribution ceases to be required by federal law.
10    The amount of the distribution shall be fixed at the time
11the distribution first becomes payable, and shall be
12calculated in the same manner as the monthly survivor benefit
13under Sections 16-141, 16-142, 16-142.1 and 16-142.2, but
14excluding any automatic annual increases, supplemental
15increases, or one-time increases that may be provided by law
16for monthly survivor benefits.
17    (b) For the purpose of this Section, a distribution shall
18be deemed to be required by federal law if: (1) directly
19mandated by federal statute, rule, or administrative or court
20decision; or (2) indirectly mandated through imposition of
21substantial tax or other penalties for noncompliance.
22    (c) Notwithstanding Section 1-103.1 of this Code, a member
23need not be in service on or after the effective date of this
24amendatory Act of 1989 for the member's surviving spouse to be
25eligible for a distribution under this Section.
26(Source: P.A. 86-273.)
 

 

 

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1    (40 ILCS 5/18-128.3)  (from Ch. 108 1/2, par. 18-128.3)
2    Sec. 18-128.3. Required distributions.
3    (a) A person who would be eligible to receive a survivor's
4annuity under this Article but for the fact that the person has
5not yet attained age 50, shall be eligible for a monthly
6distribution under this subsection (a), provided that the
7payment of such distribution is required by federal law.
8    The distribution shall become payable on (i) July 1, 1987,
9(ii) December 1 of the calendar year immediately following the
10calendar year in which the deceased spouse died, or (iii)
11December 1 of the calendar year in which the deceased spouse
12would have attained age 72 70 1/2, whichever occurs last, and
13shall remain payable until the first of the following to
14occur: (1) the person becomes eligible to receive a survivor's
15annuity under this Article; (2) the end of the month in which
16the person ceases to be eligible to receive a survivor's
17annuity upon attainment of age 50, due to remarriage or death;
18or (3) the end of the month in which such distribution ceases
19to be required by federal law.
20    The amount of the distribution shall be fixed at the time
21the distribution first becomes payable, and shall be
22calculated in the same manner as a survivor's annuity under
23Sections 18-128 through 18-128.2, but excluding: (A) any
24requirement for an application for the distribution; (B) any
25automatic annual increases, supplemental increases, or

 

 

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1one-time increases that may be provided by law for survivor's
2annuities; and (C) any lump-sum or death benefit.
3    (b) For the purpose of this Section, a distribution shall
4be deemed to be required by federal law if: (1) directly
5mandated by federal statute, rule, or administrative or court
6decision; or (2) indirectly mandated through imposition of
7substantial tax or other penalties for noncompliance.
8    (c) Notwithstanding Section 1-103.1 of this Code, a member
9need not be in service on or after the effective date of this
10amendatory Act of 1989 for the member's surviving spouse to be
11eligible for a distribution under this Section.
12(Source: P.A. 86-273.)
 
13
Article 10.

 
14    Section 10-5. The Illinois Pension Code is amended by
15changing Sections 1-160, 7-114, 7-116, 7-141, 7-141.1, 7-142,
167-144, 7-156, and 7-191 and by adding Sections 7-109.4 and
177-109.5 as follows:
 
18    (40 ILCS 5/1-160)
19    Sec. 1-160. Provisions applicable to new hires.
20    (a) The provisions of this Section apply to a person who,
21on or after January 1, 2011, first becomes a member or a
22participant under any reciprocal retirement system or pension
23fund established under this Code, other than a retirement

 

 

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1system or pension fund established under Article 2, 3, 4, 5, 6,
27, 15, or 18 of this Code, notwithstanding any other provision
3of this Code to the contrary, but do not apply to any
4self-managed plan established under this Code, to any person
5with respect to service as a sheriff's law enforcement
6employee under Article 7, or to any participant of the
7retirement plan established under Section 22-101; except that
8this Section applies to a person who elected to establish
9alternative credits by electing in writing after January 1,
102011, but before August 8, 2011, under Section 7-145.1 of this
11Code. Notwithstanding anything to the contrary in this
12Section, for purposes of this Section, a person who is a Tier 1
13regular employee as defined in Section 7-109.4 of this Code or
14who participated in a retirement system under Article 15 prior
15to January 1, 2011 shall be deemed a person who first became a
16member or participant prior to January 1, 2011 under any
17retirement system or pension fund subject to this Section. The
18changes made to this Section by Public Act 98-596 are a
19clarification of existing law and are intended to be
20retroactive to January 1, 2011 (the effective date of Public
21Act 96-889), notwithstanding the provisions of Section 1-103.1
22of this Code.
23    This Section does not apply to a person who first becomes a
24noncovered employee under Article 14 on or after the
25implementation date of the plan created under Section 1-161
26for that Article, unless that person elects under subsection

 

 

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1(b) of Section 1-161 to instead receive the benefits provided
2under this Section and the applicable provisions of that
3Article.
4    This Section does not apply to a person who first becomes a
5member or participant under Article 16 on or after the
6implementation date of the plan created under Section 1-161
7for that Article, unless that person elects under subsection
8(b) of Section 1-161 to instead receive the benefits provided
9under this Section and the applicable provisions of that
10Article.
11    This Section does not apply to a person who elects under
12subsection (c-5) of Section 1-161 to receive the benefits
13under Section 1-161.
14    This Section does not apply to a person who first becomes a
15member or participant of an affected pension fund on or after 6
16months after the resolution or ordinance date, as defined in
17Section 1-162, unless that person elects under subsection (c)
18of Section 1-162 to receive the benefits provided under this
19Section and the applicable provisions of the Article under
20which he or she is a member or participant.
21    (b) "Final average salary" means the average monthly (or
22annual) salary obtained by dividing the total salary or
23earnings calculated under the Article applicable to the member
24or participant during the 96 consecutive months (or 8
25consecutive years) of service within the last 120 months (or
2610 years) of service in which the total salary or earnings

 

 

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1calculated under the applicable Article was the highest by the
2number of months (or years) of service in that period. For the
3purposes of a person who first becomes a member or participant
4of any retirement system or pension fund to which this Section
5applies on or after January 1, 2011, in this Code, "final
6average salary" shall be substituted for the following:
7        (1) (Blank). In Article 7 (except for service as
8    sheriff's law enforcement employees), "final rate of
9    earnings".
10        (2) In Articles 8, 9, 10, 11, and 12, "highest average
11    annual salary for any 4 consecutive years within the last
12    10 years of service immediately preceding the date of
13    withdrawal".
14        (3) In Article 13, "average final salary".
15        (4) In Article 14, "final average compensation".
16        (5) In Article 17, "average salary".
17        (6) In Section 22-207, "wages or salary received by
18    him at the date of retirement or discharge".
19    (b-5) Beginning on January 1, 2011, for all purposes under
20this Code (including without limitation the calculation of
21benefits and employee contributions), the annual earnings,
22salary, or wages (based on the plan year) of a member or
23participant to whom this Section applies shall not exceed
24$106,800; however, that amount shall annually thereafter be
25increased by the lesser of (i) 3% of that amount, including all
26previous adjustments, or (ii) one-half the annual unadjusted

 

 

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1percentage increase (but not less than zero) in the consumer
2price index-u for the 12 months ending with the September
3preceding each November 1, including all previous adjustments.
4    For the purposes of this Section, "consumer price index-u"
5means the index published by the Bureau of Labor Statistics of
6the United States Department of Labor that measures the
7average change in prices of goods and services purchased by
8all urban consumers, United States city average, all items,
91982-84 = 100. The new amount resulting from each annual
10adjustment shall be determined by the Public Pension Division
11of the Department of Insurance and made available to the
12boards of the retirement systems and pension funds by November
131 of each year.
14    (c) A member or participant is entitled to a retirement
15annuity upon written application if he or she has attained age
1667 (beginning January 1, 2015, age 65 with respect to service
17under Article 12 of this Code that is subject to this Section)
18and has at least 10 years of service credit and is otherwise
19eligible under the requirements of the applicable Article.
20    A member or participant who has attained age 62 (beginning
21January 1, 2015, age 60 with respect to service under Article
2212 of this Code that is subject to this Section) and has at
23least 10 years of service credit and is otherwise eligible
24under the requirements of the applicable Article may elect to
25receive the lower retirement annuity provided in subsection
26(d) of this Section.

 

 

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1    (c-5) A person who first becomes a member or a participant
2subject to this Section on or after July 6, 2017 (the effective
3date of Public Act 100-23), notwithstanding any other
4provision of this Code to the contrary, is entitled to a
5retirement annuity under Article 8 or Article 11 upon written
6application if he or she has attained age 65 and has at least
710 years of service credit and is otherwise eligible under the
8requirements of Article 8 or Article 11 of this Code,
9whichever is applicable.
10    (d) The retirement annuity of a member or participant who
11is retiring after attaining age 62 (beginning January 1, 2015,
12age 60 with respect to service under Article 12 of this Code
13that is subject to this Section) with at least 10 years of
14service credit shall be reduced by one-half of 1% for each full
15month that the member's age is under age 67 (beginning January
161, 2015, age 65 with respect to service under Article 12 of
17this Code that is subject to this Section).
18    (d-5) The retirement annuity payable under Article 8 or
19Article 11 to an eligible person subject to subsection (c-5)
20of this Section who is retiring at age 60 with at least 10
21years of service credit shall be reduced by one-half of 1% for
22each full month that the member's age is under age 65.
23    (d-10) Each person who first became a member or
24participant under Article 8 or Article 11 of this Code on or
25after January 1, 2011 and prior to the effective date of this
26amendatory Act of the 100th General Assembly shall make an

 

 

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1irrevocable election either:
2        (i) to be eligible for the reduced retirement age
3    provided in subsections (c-5) and (d-5) of this Section,
4    the eligibility for which is conditioned upon the member
5    or participant agreeing to the increases in employee
6    contributions for age and service annuities provided in
7    subsection (a-5) of Section 8-174 of this Code (for
8    service under Article 8) or subsection (a-5) of Section
9    11-170 of this Code (for service under Article 11); or
10        (ii) to not agree to item (i) of this subsection
11    (d-10), in which case the member or participant shall
12    continue to be subject to the retirement age provisions in
13    subsections (c) and (d) of this Section and the employee
14    contributions for age and service annuity as provided in
15    subsection (a) of Section 8-174 of this Code (for service
16    under Article 8) or subsection (a) of Section 11-170 of
17    this Code (for service under Article 11).
18    The election provided for in this subsection shall be made
19between October 1, 2017 and November 15, 2017. A person
20subject to this subsection who makes the required election
21shall remain bound by that election. A person subject to this
22subsection who fails for any reason to make the required
23election within the time specified in this subsection shall be
24deemed to have made the election under item (ii).
25    (e) Any retirement annuity or supplemental annuity shall
26be subject to annual increases on the January 1 occurring

 

 

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1either on or after the attainment of age 67 (beginning January
21, 2015, age 65 with respect to service under Article 12 of
3this Code that is subject to this Section and beginning on the
4effective date of this amendatory Act of the 100th General
5Assembly, age 65 with respect to service under Article 8 or
6Article 11 for eligible persons who: (i) are subject to
7subsection (c-5) of this Section; or (ii) made the election
8under item (i) of subsection (d-10) of this Section) or the
9first anniversary of the annuity start date, whichever is
10later. Each annual increase shall be calculated at 3% or
11one-half the annual unadjusted percentage increase (but not
12less than zero) in the consumer price index-u for the 12 months
13ending with the September preceding each November 1, whichever
14is less, of the originally granted retirement annuity. If the
15annual unadjusted percentage change in the consumer price
16index-u for the 12 months ending with the September preceding
17each November 1 is zero or there is a decrease, then the
18annuity shall not be increased.
19    For the purposes of Section 1-103.1 of this Code, the
20changes made to this Section by this amendatory Act of the
21100th General Assembly are applicable without regard to
22whether the employee was in active service on or after the
23effective date of this amendatory Act of the 100th General
24Assembly.
25    (f) The initial survivor's or widow's annuity of an
26otherwise eligible survivor or widow of a retired member or

 

 

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1participant who first became a member or participant on or
2after January 1, 2011 shall be in the amount of 66 2/3% of the
3retired member's or participant's retirement annuity at the
4date of death. In the case of the death of a member or
5participant who has not retired and who first became a member
6or participant on or after January 1, 2011, eligibility for a
7survivor's or widow's annuity shall be determined by the
8applicable Article of this Code. The initial benefit shall be
966 2/3% of the earned annuity without a reduction due to age. A
10child's annuity of an otherwise eligible child shall be in the
11amount prescribed under each Article if applicable. Any
12survivor's or widow's annuity shall be increased (1) on each
13January 1 occurring on or after the commencement of the
14annuity if the deceased member died while receiving a
15retirement annuity or (2) in other cases, on each January 1
16occurring after the first anniversary of the commencement of
17the annuity. Each annual increase shall be calculated at 3% or
18one-half the annual unadjusted percentage increase (but not
19less than zero) in the consumer price index-u for the 12 months
20ending with the September preceding each November 1, whichever
21is less, of the originally granted survivor's annuity. If the
22annual unadjusted percentage change in the consumer price
23index-u for the 12 months ending with the September preceding
24each November 1 is zero or there is a decrease, then the
25annuity shall not be increased.
26    (g) The benefits in Section 14-110 apply only if the

 

 

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1person is a State policeman, a fire fighter in the fire
2protection service of a department, a conservation police
3officer, an investigator for the Secretary of State, an arson
4investigator, a Commerce Commission police officer,
5investigator for the Department of Revenue or the Illinois
6Gaming Board, a security employee of the Department of
7Corrections or the Department of Juvenile Justice, or a
8security employee of the Department of Innovation and
9Technology, as those terms are defined in subsection (b) and
10subsection (c) of Section 14-110. A person who meets the
11requirements of this Section is entitled to an annuity
12calculated under the provisions of Section 14-110, in lieu of
13the regular or minimum retirement annuity, only if the person
14has withdrawn from service with not less than 20 years of
15eligible creditable service and has attained age 60,
16regardless of whether the attainment of age 60 occurs while
17the person is still in service.
18    (h) If a person who first becomes a member or a participant
19of a retirement system or pension fund subject to this Section
20on or after January 1, 2011 is receiving a retirement annuity
21or retirement pension under that system or fund and becomes a
22member or participant under any other system or fund created
23by this Code and is employed on a full-time basis, except for
24those members or participants exempted from the provisions of
25this Section under subsection (a) of this Section, then the
26person's retirement annuity or retirement pension under that

 

 

10200SB1056ham001- 21 -LRB102 04871 AMC 26537 a

1system or fund shall be suspended during that employment. Upon
2termination of that employment, the person's retirement
3annuity or retirement pension payments shall resume and be
4recalculated if recalculation is provided for under the
5applicable Article of this Code.
6    If a person who first becomes a member of a retirement
7system or pension fund subject to this Section on or after
8January 1, 2012 and is receiving a retirement annuity or
9retirement pension under that system or fund and accepts on a
10contractual basis a position to provide services to a
11governmental entity from which he or she has retired, then
12that person's annuity or retirement pension earned as an
13active employee of the employer shall be suspended during that
14contractual service. A person receiving an annuity or
15retirement pension under this Code shall notify the pension
16fund or retirement system from which he or she is receiving an
17annuity or retirement pension, as well as his or her
18contractual employer, of his or her retirement status before
19accepting contractual employment. A person who fails to submit
20such notification shall be guilty of a Class A misdemeanor and
21required to pay a fine of $1,000. Upon termination of that
22contractual employment, the person's retirement annuity or
23retirement pension payments shall resume and, if appropriate,
24be recalculated under the applicable provisions of this Code.
25    (i) (Blank).
26    (j) In the case of a conflict between the provisions of

 

 

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1this Section and any other provision of this Code, the
2provisions of this Section shall control.
3(Source: P.A. 100-23, eff. 7-6-17; 100-201, eff. 8-18-17;
4100-563, eff. 12-8-17; 100-611, eff. 7-20-18; 100-1166, eff.
51-4-19; 101-610, eff. 1-1-20.)
 
6    (40 ILCS 5/7-109.4 new)
7    Sec. 7-109.4. Tier 1 regular employee. "Tier 1 regular
8employee" means a participant or an annuitant under this
9Article who first became a participant or member before
10January 1, 2011 under any retirement system or pension fund
11under this Code, other than a retirement system or pension
12fund established under Articles 2, 3, 4, 5, 6, or 18 or in any
13self-managed plan established under this Code, or the
14retirement plan established under Section 22-101.
15    "Tier 1 regular employee" includes a person who received a
16separation benefit but is otherwise qualified under this
17Section and subsequently becomes a participating employee on
18or after January 1, 2011.
19    "Tier 1 regular employee" includes a former participating
20employee who received a separation benefit under Section 7-167
21for service earned prior to January 1, 2011 who returns to a
22qualifying position after January 1, 2011.
23    "Tier 1 regular employee" includes a participating
24employee who has omitted service as defined in Section 7-111.5
25that includes any period prior to January 1, 2011 only if he or

 

 

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1she establishes sufficient service credit under item (12) of
2subsection (a) of Section 7-139 to include service prior to
3January 1, 2011.
4    Notwithstanding anything contrary in this Section, "Tier 1
5regular employee" does not include a participant or annuitant
6who is eligible to have his or her annuity calculated under
7Section 7-142.1 or a person who elected to establish
8alternative credits under Section 7-145.1.
 
9    (40 ILCS 5/7-109.5 new)
10    Sec. 7-109.5. Tier 2 regular employee. "Tier 2 regular
11employee" means a person who first becomes a participant under
12this Article on or after January 1, 2011 and is not a Tier 1
13regular employee.
14    Notwithstanding anything contrary in this Section, "Tier 2
15regular employee" does not include a participant or annuitant
16who is eligible to have his or her annuity calculated under
17Section 7-142.1 or a person who elected to establish
18alternative credits by electing in writing after January 1,
192011, but before August 8, 2011, under Section 7-145.1 of this
20Code.
 
21    (40 ILCS 5/7-114)  (from Ch. 108 1/2, par. 7-114)
22    Sec. 7-114. Earnings. "Earnings":
23    (a) An amount to be determined by the board, equal to the
24sum of:

 

 

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1        1. The total amount of money paid to an employee for
2    personal services or official duties as an employee
3    (except those employed as independent contractors) paid
4    out of the general fund, or out of any special funds
5    controlled by the municipality, or by any instrumentality
6    thereof, or participating instrumentality, including
7    compensation, fees, allowances (but not including amounts
8    associated with a vehicle allowance payable to an employee
9    who first becomes a participating employee on or after the
10    effective date of this amendatory Act of the 100th General
11    Assembly), or other emolument paid for official duties
12    (but not including automobile maintenance, travel expense,
13    or reimbursements for expenditures incurred in the
14    performance of duties) and, for fee offices, the fees or
15    earnings of the offices to the extent such fees are paid
16    out of funds controlled by the municipality, or
17    instrumentality or participating instrumentality; and
18        2. The money value, as determined by rules prescribed
19    by the governing body of the municipality, or
20    instrumentality thereof, of any board, lodging, fuel,
21    laundry, and other allowances provided an employee in lieu
22    of money.
23    (b) For purposes of determining benefits payable under
24this fund payments to a person who is engaged in an
25independently established trade, occupation, profession or
26business and who is paid for his service on a basis other than

 

 

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1a monthly or other regular salary, are not earnings.
2    (c) If a disabled participating employee is eligible to
3receive Workers' Compensation for an accidental injury and the
4participating municipality or instrumentality which employed
5the participating employee when injured continues to pay the
6participating employee regular salary or other compensation or
7pays the employee an amount in excess of the Workers'
8Compensation amount, then earnings shall be deemed to be the
9total payments, including an amount equal to the Workers'
10Compensation payments. These payments shall be subject to
11employee contributions and allocated as if paid to the
12participating employee when the regular payroll amounts would
13have been paid if the participating employee had continued
14working, and creditable service shall be awarded for this
15period.
16    (d) If an elected official who is a participating employee
17becomes disabled but does not resign and is not removed from
18office, then earnings shall include all salary payments made
19for the remainder of that term of office and the official shall
20be awarded creditable service for the term of office.
21    (e) If a participating employee is paid pursuant to "An
22Act to provide for the continuation of compensation for law
23enforcement officers, correctional officers and firemen who
24suffer disabling injury in the line of duty", approved
25September 6, 1973, as amended, the payments shall be deemed
26earnings, and the participating employee shall be awarded

 

 

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1creditable service for this period.
2    (f) Additional compensation received by a person while
3serving as a supervisor of assessments, assessor, deputy
4assessor or member of a board of review from the State of
5Illinois pursuant to Section 4-10 or 4-15 of the Property Tax
6Code shall not be earnings for purposes of this Article and
7shall not be included in the contribution formula or
8calculation of benefits for such person pursuant to this
9Article.
10    (g) Notwithstanding any other provision of this Article,
11calendar year earnings for Tier 2 regular employees to whom
12this Section applies shall not exceed the amount determined by
13the Public Pension Division of the Department of Insurance as
14required in this subsection; however, that amount shall
15annually thereafter be increased by the lesser of (i) 3% of
16that amount, including all previous adjustments, or (ii)
17one-half the annual unadjusted percentage increase (but not
18less than zero) in the consumer price index-u for the 12 months
19ending with the September preceding each November 1, including
20all previous adjustments.
21    For the purposes of this Section, "consumer price index-u"
22means the index published by the Bureau of Labor Statistics of
23the United States Department of Labor that measures the
24average change in prices of goods and services purchased by
25all urban consumers, United States city average, all items,
261982-84 = 100. The new amount resulting from each annual

 

 

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1adjustment shall be determined by the Public Pension Division
2of the Department of Insurance and made available to the Fund
3by November 1 of each year.
4(Source: P.A. 100-411, eff. 8-25-17.)
 
5    (40 ILCS 5/7-116)  (from Ch. 108 1/2, par. 7-116)
6    (Text of Section WITHOUT the changes made by P.A. 98-599,
7which has been held unconstitutional)
8    Sec. 7-116. "Final rate of earnings":
9    (a) For retirement and survivor annuities, the monthly
10earnings obtained by dividing the total earnings received by
11the employee during the period of either (1) for Tier 1 regular
12employees, the 48 consecutive months of service within the
13last 120 months of service in which his total earnings were the
14highest, (2) for Tier 2 regular employees, the 96 consecutive
15months of service within the last 120 months of service in
16which his total earnings were the highest, or (3) or (2) the
17employee's total period of service, by the number of months of
18service in such period.
19    (b) For death benefits, the higher of the rate determined
20under paragraph (a) of this Section or total earnings received
21in the last 12 months of service divided by twelve. If the
22deceased employee has less than 12 months of service, the
23monthly final rate shall be the monthly rate of pay the
24employee was receiving when he began service.
25    (c) For disability benefits, the total earnings of a

 

 

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1participating employee in the last 12 calendar months of
2service prior to the date he becomes disabled divided by 12.
3    (d) In computing the final rate of earnings: (1) the
4earnings rate for all periods of prior service shall be
5considered equal to the average earnings rate for the last 3
6calendar years of prior service for which creditable service
7is received under Section 7-139 or, if there is less than 3
8years of creditable prior service, the average for the total
9prior service period for which creditable service is received
10under Section 7-139; (2) for out of state service and
11authorized leave, the earnings rate shall be the rate upon
12which service credits are granted; (3) periods of military
13leave shall not be considered; (4) the earnings rate for all
14periods of disability shall be considered equal to the rate of
15earnings upon which the employee's disability benefits are
16computed for such periods; (5) the earnings to be considered
17for each of the final three months of the final earnings period
18for persons who first became participants before January 1,
192012 and the earnings to be considered for each of the final 24
20months for participants who first become participants on or
21after January 1, 2012 shall not exceed 125% of the highest
22earnings of any other month in the final earnings period; and
23(6) the annual amount of final rate of earnings shall be the
24monthly amount multiplied by the number of months of service
25normally required by the position in a year.
26(Source: P.A. 97-609, eff. 1-1-12.)
 

 

 

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1    (40 ILCS 5/7-141)  (from Ch. 108 1/2, par. 7-141)
2    Sec. 7-141. Retirement annuities - Conditions. Retirement
3annuities shall be payable as hereinafter set forth:
4    (a) A participating employee who, regardless of cause, is
5separated from the service of all participating municipalities
6and instrumentalities thereof and participating
7instrumentalities shall be entitled to a retirement annuity
8provided:
9        1. He is at least age 55 if he is a Tier 1 regular
10    employee, he is age 62 if he is a Tier 2 regular employee,
11    or, in the case of a person who is eligible to have his
12    annuity calculated under Section 7-142.1, he is at least
13    age 50;
14        2. He is not entitled to receive earnings for
15    employment in a position requiring him, or entitling him
16    to elect, to be a participating employee;
17        3. The amount of his annuity, before the application
18    of paragraph (b) of Section 7-142 is at least $10 per
19    month;
20        4. If he first became a participating employee after
21    December 31, 1961 and is a Tier 1 regular employee, he has
22    at least 8 years of service, or, if he is a Tier 2 regular
23    member, he has at least 10 years of service. This service
24    requirement shall not apply to any participating employee,
25    regardless of participation date, if the General Assembly

 

 

10200SB1056ham001- 30 -LRB102 04871 AMC 26537 a

1    terminates the Fund.
2    (b) Retirement annuities shall be payable:
3        1. As provided in Section 7-119;
4        2. Except as provided in item 3, upon receipt by the
5    fund of a written application. The effective date may be
6    not more than one year prior to the date of the receipt by
7    the fund of the application;
8        3. Upon attainment of age 70 1/2 if the member (i) is
9    no longer in service, and (ii) is otherwise entitled to an
10    annuity under this Article;
11        4. To the beneficiary of the deceased annuitant for
12    the unpaid amount accrued to date of death, if any.
13(Source: P.A. 97-328, eff. 8-12-11; 97-609, eff. 1-1-12.)
 
14    (40 ILCS 5/7-141.1)
15    Sec. 7-141.1. Early retirement incentive.
16    (a) The General Assembly finds and declares that:
17        (1) Units of local government across the State have
18    been functioning under a financial crisis.
19        (2) This financial crisis is expected to continue.
20        (3) Units of local government must depend on
21    additional sources of revenue and, when those sources are
22    not forthcoming, must establish cost-saving programs.
23        (4) An early retirement incentive designed
24    specifically to target highly-paid senior employees could
25    result in significant annual cost savings.

 

 

10200SB1056ham001- 31 -LRB102 04871 AMC 26537 a

1        (5) The early retirement incentive should be made
2    available only to those units of local government that
3    determine that an early retirement incentive is in their
4    best interest.
5        (6) A unit of local government adopting a program of
6    early retirement incentives under this Section is
7    encouraged to implement personnel procedures to prohibit,
8    for at least 5 years, the rehiring (whether on payroll or
9    by independent contract) of employees who receive early
10    retirement incentives.
11        (7) A unit of local government adopting a program of
12    early retirement incentives under this Section is also
13    encouraged to replace as few of the participating
14    employees as possible and to hire replacement employees
15    for salaries totaling no more than 80% of the total
16    salaries formerly paid to the employees who participate in
17    the early retirement program.
18    It is the primary purpose of this Section to encourage
19units of local government that can realize true cost savings,
20or have determined that an early retirement program is in
21their best interest, to implement an early retirement program.
22    (b) Until June 27, 1997 (the effective date of Public Act
2390-32) this amendatory Act of 1997, this Section does not
24apply to any employer that is a city, village, or incorporated
25town, nor to the employees of any such employer. Beginning on
26June 27, 1997 (the effective date of Public Act 90-32) this

 

 

10200SB1056ham001- 32 -LRB102 04871 AMC 26537 a

1amendatory Act of 1997, any employer under this Article,
2including an employer that is a city, village, or incorporated
3town, may establish an early retirement incentive program for
4its employees under this Section. The decision of a city,
5village, or incorporated town to consider or establish an
6early retirement program is at the sole discretion of that
7city, village, or incorporated town, and nothing in Public Act
890-32 this amendatory Act of 1997 limits or otherwise
9diminishes this discretion. Nothing contained in this Section
10shall be construed to require a city, village, or incorporated
11town to establish an early retirement program and no city,
12village, or incorporated town may be compelled to implement
13such a program.
14    The benefits provided in this Section are available only
15to members employed by a participating employer that has filed
16with the Board of the Fund a resolution or ordinance expressly
17providing for the creation of an early retirement incentive
18program under this Section for its employees and specifying
19the effective date of the early retirement incentive program.
20Subject to the limitation in subsection (h), an employer may
21adopt a resolution or ordinance providing a program of early
22retirement incentives under this Section at any time.
23    The resolution or ordinance shall be in substantially the
24following form:
 
25
RESOLUTION (ORDINANCE) NO. ....

 

 

10200SB1056ham001- 33 -LRB102 04871 AMC 26537 a

1
A RESOLUTION (ORDINANCE) ADOPTING AN EARLY
2
RETIREMENT INCENTIVE PROGRAM FOR EMPLOYEES
3
IN THE ILLINOIS MUNICIPAL RETIREMENT FUND
4    WHEREAS, Section 7-141.1 of the Illinois Pension Code
5provides that a participating employer may elect to adopt an
6early retirement incentive program offered by the Illinois
7Municipal Retirement Fund by adopting a resolution or
8ordinance; and
9    WHEREAS, The goal of adopting an early retirement program
10is to realize a substantial savings in personnel costs by
11offering early retirement incentives to employees who have
12accumulated many years of service credit; and
13    WHEREAS, Implementation of the early retirement program
14will provide a budgeting tool to aid in controlling payroll
15costs; and
16    WHEREAS, The (name of governing body) has determined that
17the adoption of an early retirement incentive program is in
18the best interests of the (name of participating employer);
19therefore be it
20    RESOLVED (ORDAINED) by the (name of governing body) of
21(name of participating employer) that:
22    (1) The (name of participating employer) does hereby adopt
23the Illinois Municipal Retirement Fund early retirement
24incentive program as provided in Section 7-141.1 of the
25Illinois Pension Code. The early retirement incentive program
26shall take effect on (date).

 

 

10200SB1056ham001- 34 -LRB102 04871 AMC 26537 a

1    (2) In order to help achieve a true cost savings, a person
2who retires under the early retirement incentive program shall
3lose those incentives if he or she later accepts employment
4with any IMRF employer in a position for which participation
5in IMRF is required or is elected by the employee.
6    (3) In order to utilize an early retirement incentive as a
7budgeting tool, the (name of participating employer) will use
8its best efforts either to limit the number of employees who
9replace the employees who retire under the early retirement
10program or to limit the salaries paid to the employees who
11replace the employees who retire under the early retirement
12program.
13    (4) The effective date of each employee's retirement under
14this early retirement program shall be set by (name of
15employer) and shall be no earlier than the effective date of
16the program and no later than one year after that effective
17date; except that the employee may require that the retirement
18date set by the employer be no later than the June 30 next
19occurring after the effective date of the program and no
20earlier than the date upon which the employee qualifies for
21retirement.
22    (5) To be eligible for the early retirement incentive
23under this Section, the employee must have attained age 50 and
24have at least 20 years of creditable service by his or her
25retirement date.
26    (6) The (clerk or secretary) shall promptly file a

 

 

10200SB1056ham001- 35 -LRB102 04871 AMC 26537 a

1certified copy of this resolution (ordinance) with the Board
2of Trustees of the Illinois Municipal Retirement Fund.
3CERTIFICATION
4    I, (name), the (clerk or secretary) of the (name of
5participating employer) of the County of (name), State of
6Illinois, do hereby certify that I am the keeper of the books
7and records of the (name of employer) and that the foregoing is
8a true and correct copy of a resolution (ordinance) duly
9adopted by the (governing body) at a meeting duly convened and
10held on (date).
11SEAL
12(Signature of clerk or secretary)
 
13    (c) To be eligible for the benefits provided under an
14early retirement incentive program adopted under this Section,
15a member must:
16        (1) be a participating employee of this Fund who, on
17    the effective date of the program, (i) is in active
18    payroll status as an employee of a participating employer
19    that has filed the required ordinance or resolution with
20    the Board, (ii) is on layoff status from such a position
21    with a right of re-employment or recall to service, (iii)
22    is on a leave of absence from such a position, or (iv) is
23    on disability but has not been receiving benefits under
24    Section 7-146 or 7-150 for a period of more than 2 years
25    from the date of application;

 

 

10200SB1056ham001- 36 -LRB102 04871 AMC 26537 a

1        (2) have never previously received a retirement
2    annuity under this Article or under the Retirement Systems
3    Reciprocal Act using service credit established under this
4    Article;
5        (3) (blank);
6        (4) have at least 20 years of creditable service in
7    the Fund by the date of retirement, without the use of any
8    creditable service established under this Section;
9        (5) have attained age 50 by the date of retirement if
10    he or she is a Tier 1 regular employee or age 57 if he or
11    she is a Tier 2 regular employee, without the use of any
12    age enhancement received under this Section; and
13        (6) be eligible to receive a retirement annuity under
14    this Article by the date of retirement, for which purpose
15    the age enhancement and creditable service established
16    under this Section may be considered.
17    (d) The employer shall determine the retirement date for
18each employee participating in the early retirement program
19adopted under this Section. The retirement date shall be no
20earlier than the effective date of the program and no later
21than one year after that effective date, except that the
22employee may require that the retirement date set by the
23employer be no later than the June 30 next occurring after the
24effective date of the program and no earlier than the date upon
25which the employee qualifies for retirement. The employer
26shall give each employee participating in the early retirement

 

 

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1program at least 30 days written notice of the employee's
2designated retirement date, unless the employee waives this
3notice requirement.
4    (e) An eligible person may establish up to 5 years of
5creditable service under this Section. In addition, for each
6period of creditable service established under this Section, a
7person shall have his or her age at retirement deemed enhanced
8by an equivalent period.
9    The creditable service established under this Section may
10be used for all purposes under this Article and the Retirement
11Systems Reciprocal Act, except for the computation of final
12rate of earnings and the determination of earnings, salary, or
13compensation under this or any other Article of the Code.
14    The age enhancement established under this Section may be
15used for all purposes under this Article (including
16calculation of the reduction imposed under subdivision
17(a)1b(iv) of Section 7-142), except for purposes of a
18reversionary annuity under Section 7-145 and any distributions
19required because of age. The age enhancement established under
20this Section may be used in calculating a proportionate
21annuity payable by this Fund under the Retirement Systems
22Reciprocal Act, but shall not be used in determining benefits
23payable under other Articles of this Code under the Retirement
24Systems Reciprocal Act.
25    (f) For all creditable service established under this
26Section, the member must pay to the Fund an employee

 

 

10200SB1056ham001- 38 -LRB102 04871 AMC 26537 a

1contribution consisting of the total employee contribution
2rate in effect at the time the member purchases the service for
3the plan in which the member was participating with the
4employer at that time multiplied by the member's highest
5annual salary rate used in the determination of the final rate
6of earnings for retirement annuity purposes for each year of
7creditable service granted under this Section. Contributions
8for fractions of a year of service shall be prorated. Any
9amounts that are disregarded in determining the final rate of
10earnings under subdivision (d)(5) of Section 7-116 (the 125%
11rule) shall also be disregarded in determining the required
12contribution under this subsection (f).
13    The employee contribution shall be paid to the Fund as
14follows: If the member is entitled to a lump sum payment for
15accumulated vacation, sick leave, or personal leave upon
16withdrawal from service, the employer shall deduct the
17employee contribution from that lump sum and pay the deducted
18amount directly to the Fund. If there is no such lump sum
19payment or the required employee contribution exceeds the net
20amount of the lump sum payment, then the remaining amount due,
21at the option of the employee, may either be paid to the Fund
22before the annuity commences or deducted from the retirement
23annuity in 24 equal monthly installments.
24    (g) An annuitant who has received any age enhancement or
25creditable service under this Section and thereafter accepts
26employment with or enters into a personal services contract

 

 

10200SB1056ham001- 39 -LRB102 04871 AMC 26537 a

1with an employer under this Article thereby forfeits that age
2enhancement and creditable service; except that this
3restriction does not apply to (1) service in an elective
4office, so long as the annuitant does not participate in this
5Fund with respect to that office, (2) a person appointed as an
6officer under subsection (f) of Section 3-109 of this Code,
7and (3) a person appointed as an auxiliary police officer
8pursuant to Section 3.1-30-5 of the Illinois Municipal Code. A
9person forfeiting early retirement incentives under this
10subsection (i) must repay to the Fund that portion of the
11retirement annuity already received which is attributable to
12the early retirement incentives that are being forfeited, (ii)
13shall not be eligible to participate in any future early
14retirement program adopted under this Section, and (iii) is
15entitled to a refund of the employee contribution paid under
16subsection (f). The Board shall deduct the required repayment
17from the refund and may impose a reasonable payment schedule
18for repaying the amount, if any, by which the required
19repayment exceeds the refund amount.
20    (h) The additional unfunded liability accruing as a result
21of the adoption of a program of early retirement incentives
22under this Section by an employer shall be amortized over a
23period of 10 years beginning on January 1 of the second
24calendar year following the calendar year in which the latest
25date for beginning to receive a retirement annuity under the
26program (as determined by the employer under subsection (d) of

 

 

10200SB1056ham001- 40 -LRB102 04871 AMC 26537 a

1this Section) occurs; except that the employer may provide for
2a shorter amortization period (of no less than 5 years) by
3adopting an ordinance or resolution specifying the length of
4the amortization period and submitting a certified copy of the
5ordinance or resolution to the Fund no later than 6 months
6after the effective date of the program. An employer, at its
7discretion, may accelerate payments to the Fund.
8    An employer may provide more than one early retirement
9incentive program for its employees under this Section.
10However, an employer that has provided an early retirement
11incentive program for its employees under this Section may not
12provide another early retirement incentive program under this
13Section until the liability arising from the earlier program
14has been fully paid to the Fund.
15(Source: P.A. 99-382, eff. 8-17-15.)
 
16    (40 ILCS 5/7-142)  (from Ch. 108 1/2, par. 7-142)
17    Sec. 7-142. Retirement annuities - Amount.
18    (a) The amount of a retirement annuity shall be the sum of
19the following, determined in accordance with the actuarial
20tables in effect at the time of the grant of the annuity:
21        1. For Tier 1 regular employees with 8 or more years of
22    service or for Tier 2 regular employees, an annuity
23    computed pursuant to subparagraphs a or b of this
24    subparagraph 1, whichever is the higher, and for employees
25    with less than 8 or 10 years of service, respectively, the

 

 

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1    annuity computed pursuant to subparagraph a:
2            a. The monthly annuity which can be provided from
3        the total accumulated normal, municipality and prior
4        service credits, as of the attained age of the
5        employee on the date the annuity begins provided that
6        such annuity shall not exceed 75% of the final rate of
7        earnings of the employee.
8            b. (i) The monthly annuity amount determined as
9        follows by multiplying (a) 1 2/3% for annuitants with
10        not more than 15 years or (b) 1 2/3% for the first 15
11        years and 2% for each year in excess of 15 years for
12        annuitants with more than 15 years by the number of
13        years plus fractional years, prorated on a basis of
14        months, of creditable service and multiply the product
15        thereof by the employee's final rate of earnings.
16            (ii) For the sole purpose of computing the formula
17        (and not for the purposes of the limitations
18        hereinafter stated) $125 shall be considered the final
19        rate of earnings in all cases where the final rate of
20        earnings is less than such amount.
21            (iii) The monthly annuity computed in accordance
22        with this subparagraph b, shall not exceed an amount
23        equal to 75% of the final rate of earnings.
24            (iv) For employees who have less than 35 years of
25        service, the annuity computed in accordance with this
26        subparagraph b (as reduced by application of

 

 

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1        subparagraph (iii) above) shall be reduced by 0.25%
2        thereof (0.5% if service was terminated before January
3        1, 1988 or if the employee is a Tier 2 regular
4        employee) for each month or fraction thereof (1) that
5        the employee's age is less than 60 years for Tier 1
6        regular employees, or (2) that the employee's age is
7        less than 67 years for Tier 2 regular employees, or (3)
8        if the employee has at least 30 years of service
9        credit, that the employee's service credit is less
10        than 35 years, whichever is less, on the date the
11        annuity begins.
12        2. The annuity which can be provided from the total
13    accumulated additional credits as of the attained age of
14    the employee on the date the annuity begins.
15    (b) If payment of an annuity begins prior to the earliest
16age at which the employee will become eligible for an old age
17insurance benefit under the Federal Social Security Act, he
18may elect that the annuity payments from this fund shall
19exceed those payable after his attaining such age by an
20amount, computed as determined by rules of the Board, but not
21in excess of his estimated Social Security Benefit, determined
22as of the effective date of the annuity, provided that in no
23case shall the total annuity payments made by this fund exceed
24in actuarial value the annuity which would have been payable
25had no such election been made.
26    (c) The retirement annuity shall be increased each year by

 

 

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12%, not compounded, of the monthly amount of annuity, taking
2into consideration any adjustment under paragraph (b) of this
3Section. This increase shall be effective each January 1 and
4computed from the effective date of the retirement annuity,
5the first increase being .167% of the monthly amount times the
6number of months from the effective date to January 1.
7Beginning January 1, 1984 and each January 1 thereafter, the
8retirement annuity of a Tier 1 regular employee shall be
9increased by 3% each year, not compounded. This increase shall
10be computed from the effective date of the retirement annuity,
11the first increase being 0.25% of the monthly amount times the
12number of months from the effective date to January 1. This
13increase shall not be applicable to annuitants who are not in
14service on or after September 8, 1971.
15    A retirement annuity of a Tier 2 regular employee shall
16receive annual increases on the January 1 occurring either on
17or after the attainment of age 67 or the first anniversary of
18the annuity start date, whichever is later. Each annual
19increase shall be calculated at the lesser of 3% or one-half
20the annual unadjusted percentage increase (but not less than
21zero) in the consumer price index-u for the 12 months ending
22with the September preceding each November 1 of the originally
23granted retirement annuity. If the annual unadjusted
24percentage change in the consumer price index-u for the 12
25months ending with the September preceding each November 1 is
26zero or there is a decrease, then the annuity shall not be

 

 

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1increased.
2    (d) Any elected county officer who was entitled to receive
3a stipend from the State on or after July 1, 2009 and on or
4before June 30, 2010 may establish earnings credit for the
5amount of stipend not received, if the elected county official
6applies in writing to the fund within 6 months after the
7effective date of this amendatory Act of the 96th General
8Assembly and pays to the fund an amount equal to (i) employee
9contributions on the amount of stipend not received, (ii)
10employer contributions determined by the Board equal to the
11employer's normal cost of the benefit on the amount of stipend
12not received, plus (iii) interest on items (i) and (ii) at the
13actuarially assumed rate.
14(Source: P.A. 96-961, eff. 7-2-10.)
 
15    (40 ILCS 5/7-144)  (from Ch. 108 1/2, par. 7-144)
16    Sec. 7-144. Retirement annuities - suspended during
17employment.
18    (a) If any person receiving any annuity again becomes an
19employee and receives earnings from employment in a position
20requiring him, or entitling him to elect, to become a
21participating employee, then the annuity payable to such
22employee shall be suspended as of the 1st day of the month
23coincidental with or next following the date upon which such
24person becomes such an employee, unless the person is
25authorized under subsection (b) of Section 7-137.1 of this

 

 

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1Code to continue receiving a retirement annuity during that
2period. Upon proper qualification of the participating
3employee payment of such annuity may be resumed on the 1st day
4of the month following such qualification and upon proper
5application therefor. The participating employee in such case
6shall be entitled to a supplemental annuity arising from
7service and credits earned subsequent to such re-entry as a
8participating employee.
9    Notwithstanding any other provision of this Article, an
10annuitant shall be considered a participating employee if he
11or she returns to work as an employee with a participating
12employer and works more than 599 hours annually (or 999 hours
13annually with a participating employer that has adopted a
14resolution pursuant to subsection (e) of Section 7-137 of this
15Code). Each of these annual periods shall commence on the
16month and day upon which the annuitant is first employed with
17the participating employer following the effective date of the
18annuity.
19    (a-5) If any annuitant under this Article must be
20considered a participating employee per the provisions of
21subsection (a) of this Section, and the participating
22municipality or participating instrumentality that employs or
23re-employs that annuitant knowingly fails to notify the Board
24to suspend the annuity, the participating municipality or
25participating instrumentality may be required to reimburse the
26Fund for an amount up to one-half of the total of any annuity

 

 

10200SB1056ham001- 46 -LRB102 04871 AMC 26537 a

1payments made to the annuitant after the date the annuity
2should have been suspended, as determined by the Board. In no
3case shall the total amount repaid by the annuitant plus any
4amount reimbursed by the employer to the Fund be more than the
5total of all annuity payments made to the annuitant after the
6date the annuity should have been suspended. This subsection
7shall not apply if the annuitant returned to work for the
8employer for less than 12 months.
9    The Fund shall notify all annuitants that they must notify
10the Fund immediately if they return to work for any
11participating employer. The notification by the Fund shall
12occur upon retirement and no less than annually thereafter in
13a format determined by the Fund. The Fund shall also develop
14and maintain a system to track annuitants who have returned to
15work and notify the participating employer and annuitant at
16least annually of the limitations on returning to work under
17this Section.
18    (b) Supplemental annuities to persons who return to
19service for less than 48 months shall be computed under the
20provisions of Sections 7-141, 7-142 and 7-143. In determining
21whether an employee is eligible for an annuity which requires
22a minimum period of service, his entire period of service
23shall be taken into consideration but the supplemental annuity
24shall be based on earnings and service in the supplemental
25period only. The effective date of the suspended and
26supplemental annuity for the purpose of increases after

 

 

10200SB1056ham001- 47 -LRB102 04871 AMC 26537 a

1retirement shall be considered to be the effective date of the
2suspended annuity.
3    (c) Supplemental annuities to persons who return to
4service for 48 months or more shall be a monthly amount
5determined as follows:
6        (1) An amount shall be computed under subparagraph b
7    of paragraph (1) of subsection (a) of Section 7-142,
8    considering all of the service credits of the employee;
9        (2) The actuarial value in monthly payments for life
10    of the annuity payments made before suspension shall be
11    determined and subtracted from the amount determined in
12    (1) above;
13        (3) The monthly amount of the suspended annuity, with
14    any applicable increases after retirement computed from
15    the effective date to the date of reinstatement, shall be
16    subtracted from the amount determined in (2) above and the
17    remainder shall be the amount of the supplemental annuity
18    provided that this amount shall not be less than the
19    amount computed under subsection (b) of this Section.
20        (4) The suspended annuity shall be reinstated at an
21    amount including any increases after retirement from the
22    effective date to date of reinstatement.
23        (5) The effective date of the combined suspended and
24    supplemental annuities for the purposes of increases after
25    retirement shall be considered to be the effective date of
26    the supplemental annuity.

 

 

10200SB1056ham001- 48 -LRB102 04871 AMC 26537 a

1    (d) If a Tier 2 regular employee becomes a member or
2participant under any other system or fund created by this
3Code and is employed on a full-time basis, except for those
4members or participants exempted from the provisions of
5subsection (a) of Section 1-160 of this Code (other than a
6participating employee under this Article), then the person's
7retirement annuity shall be suspended during that employment.
8Upon termination of that employment, the person's retirement
9annuity shall resume and be recalculated as required by this
10Section.
11    (e) If a Tier 2 regular employee first began participation
12on or after January 1, 2012 and is receiving a retirement
13annuity and accepts on a contractual basis a position to
14provide services to a governmental entity from which he or she
15has retired, then that person's annuity or retirement pension
16shall be suspended during that contractual service,
17notwithstanding the provisions of any other Section in this
18Article. Such annuitant shall notify the Fund, as well as his
19or her contractual employer, of his or her retirement status
20before accepting contractual employment. A person who fails to
21submit such notification shall be guilty of a Class A
22misdemeanor and required to pay a fine of $1,000. Upon
23termination of that contractual employment, the person's
24retirement annuity shall resume and be recalculated as
25required by this Section.
26(Source: P.A. 98-389, eff. 8-16-13; 99-745, eff. 8-5-16.)
 

 

 

10200SB1056ham001- 49 -LRB102 04871 AMC 26537 a

1    (40 ILCS 5/7-156)  (from Ch. 108 1/2, par. 7-156)
2    Sec. 7-156. Surviving spouse annuities - amount.
3    (a) The amount of surviving spouse annuity shall be:
4    1. Upon the death of an employee annuitant or such person
5entitled, upon application, to a retirement annuity at date of
6death, (i) an amount equal to 1/2 50% for a Tier 1 regular
7employee or 66 2/3% for a Tier 2 regular employee of the
8retirement annuity which was or would have been payable
9exclusive of the amount so payable which was provided from
10additional credits, and disregarding any election made under
11paragraph (b) of Section 7-142, plus (ii) an annuity which
12could be provided at the then attained age of the surviving
13spouse and under actuarial tables then in effect, from the
14excess of the additional credits, (excluding any such credits
15used to create a reversionary annuity) used to provide the
16annuity granted pursuant to paragraph (a) (2) of Section 7-142
17of this article over the total annuity payments made pursuant
18thereto.
19    2. Upon the death of a participating employee on or after
20attainment of age 55, an amount equal to 1/2 50% for a Tier 1
21regular employee or 66 2/3% for a Tier 2 regular employee of
22the retirement annuity which he could have had as of the date
23of death had he then retired and applied for annuity,
24exclusive of the portion thereof which could have been
25provided from additional credits, and disregarding paragraph

 

 

10200SB1056ham001- 50 -LRB102 04871 AMC 26537 a

1(b) of Section 7-142, plus an amount equal to the annuity which
2could be provided from the total of his accumulated additional
3credits at date of death, on the basis of the attained age of
4the surviving spouse on such date.
5    3. Upon the death of a participating employee before age
655, an amount equal to 1/2 50% for a Tier 1 regular employee or
766 2/3% for a Tier 2 regular employee of the retirement annuity
8which he could have had as of his attained age on the date of
9death, had he then retired and applied for annuity, and the
10provisions of this Article that no such annuity shall begin
11until the employee has attained at least age 55 were not
12applicable, exclusive of the portion thereof which could have
13been provided from additional credits and disregarding
14paragraph (b) of Section 7-142, plus an amount equal to the
15annuity which could be provided from the total of his
16accumulated additional credits at date of death, on the basis
17of the attained age of the surviving spouse on such date.
18    In the case of the surviving spouse of a person who dies
19before June 1, 2006 (the effective date of Public Act 94-712)
20this amendatory Act of the 94th General Assembly, if the
21surviving spouse is more than 5 years younger than the
22deceased, that portion of the annuity which is not based on
23additional credits shall be reduced in the ratio of the value
24of a life annuity of $1 per year at an age of 5 years less than
25the attained age of the deceased, at the earlier of the date of
26the death or the date his retirement annuity begins, to the

 

 

10200SB1056ham001- 51 -LRB102 04871 AMC 26537 a

1value of a life annuity of $1 per year at the attained age of
2the surviving spouse on such date, according to actuarial
3tables approved by the Board. This reduction does not apply to
4the surviving spouse of a person who dies on or after June 1,
52006 (the effective date of Public Act 94-712) this amendatory
6Act of the 94th General Assembly.
7    In computing the amount of a surviving spouse annuity,
8incremental increases of retirement annuities to the date of
9death of the employee annuitant shall be considered.
10    (b) If the employee was a Tier 1 regular employee, each
11Each surviving spouse annuity payable on January 1, 1988 shall
12be increased on that date by 3% of the original amount of the
13annuity. Each surviving spouse annuity that begins after
14January 1, 1988 shall be increased on the January 1 next
15occurring after the annuity begins, by an amount equal to (i)
163% of the original amount thereof if the deceased employee was
17receiving a retirement annuity at the time of his death;
18otherwise (ii) 0.25% 0.167% of the original amount thereof for
19each complete month which has elapsed since the date the
20annuity began.
21    On each January 1 after the date of the initial increase
22under this subsection, each surviving spouse annuity shall be
23increased by 3% of the originally granted amount of the
24annuity.
25    (c) If the participating employee was a Tier 2 regular
26employee, each surviving spouse annuity shall be increased (1)

 

 

10200SB1056ham001- 52 -LRB102 04871 AMC 26537 a

1on each January 1 occurring on or after the commencement of the
2annuity if the deceased member died while receiving a
3retirement annuity or (2) in other cases, on each January 1
4occurring after the first anniversary of the commencement of
5the annuity. Such annual increase shall be calculated at 3% or
6one-half the annual unadjusted percentage increase (but not
7less than zero) in the consumer price index-u for the 12 months
8ending with the September preceding each November 1, whichever
9is less, of the originally granted surviving spouse annuity.
10If the annual unadjusted percentage change in the consumer
11price index-u for the 12 months ending with the September
12preceding each November 1 is zero or there is a decrease, then
13the annuity shall not be increased.
14(Source: P.A. 94-712, eff. 6-1-06.)
 
15    (40 ILCS 5/7-191)  (from Ch. 108 1/2, par. 7-191)
16    Sec. 7-191. To have accounts audited.
17    To have the accounts of the fund audited annually by a
18certified public accountant approved by the Auditor General.
19(Source: Laws 1963, p. 161.)
 
20
Article 15.

 
21    Section 15-5. The Illinois Pension Code is amended by
22changing Section 13-310 as follows:
 

 

 

10200SB1056ham001- 53 -LRB102 04871 AMC 26537 a

1    (40 ILCS 5/13-310)  (from Ch. 108 1/2, par. 13-310)
2    Sec. 13-310. Ordinary disability benefit.
3    (a) Any employee who becomes disabled as the result of any
4cause other than injury or illness incurred in the performance
5of duty for the employer or any other employer, or while
6engaged in self-employment activities, shall be entitled to an
7ordinary disability benefit. The eligible period for this
8benefit shall be 25% of the employee's total actual service
9prior to the date of disability with a cumulative maximum
10period of 5 years.
11    (b) The benefit shall be allowed only if the employee
12files an application in writing with the Board, and a medical
13report is submitted by at least one licensed and practicing
14physician as part of the employee's application.
15    The benefit is not payable for any disability which begins
16during any period of unpaid leave of absence. No benefit shall
17be allowed for any period of disability prior to 30 days before
18application is made, unless the Board finds good cause for the
19delay in filing the application. The benefit shall not be paid
20during any period for which the employee receives or is
21entitled to receive any part of salary.
22    The benefit is not payable for any disability which begins
23during any period of absence from duty other than allowable
24vacation time in any calendar year. An employee whose
25disability begins during any such ineligible period of absence
26from service may not receive benefits until the employee

 

 

10200SB1056ham001- 54 -LRB102 04871 AMC 26537 a

1recovers from the disability and is in service for at least 15
2consecutive working days after such recovery.
3    In the case of an employee who first enters service on or
4after June 13, 1997, an ordinary disability benefit is not
5payable for the first 3 days of disability that would
6otherwise be payable under this Section if the disability does
7not continue for at least 11 additional days.
8    Beginning on the effective date of this amendatory Act of
9the 94th General Assembly, an employee who first entered
10service on or after June 13, 1997 is also eligible for ordinary
11disability benefits on the 31st day after the last day worked,
12provided all sick leave is exhausted.
13    (c) The benefit shall be 50% of the employee's salary at
14the date of disability, and shall terminate when the earliest
15of the following occurs:
16        (1) The employee returns to work or receives a
17    retirement annuity paid wholly or in part under this
18    Article;
19        (2) The disability ceases;
20        (3) The employee willfully and continuously refuses to
21    follow medical advice and treatment to enable the employee
22    to return to work. However this provision does not apply
23    to an employee who relies in good faith on treatment by
24    prayer through spiritual means alone in accordance with
25    the tenets and practice of a recognized church or
26    religious denomination, by a duly accredited practitioner

 

 

10200SB1056ham001- 55 -LRB102 04871 AMC 26537 a

1    thereof;
2        (4) The employee (i) refuses to submit to a reasonable
3    physical examination within 30 days of application by a
4    physician appointed by the Board, (ii) in the case of
5    chronic alcoholism, the employee refuses to join a
6    rehabilitation program licensed by the Department of
7    Public Health of the State of Illinois and certified by
8    the Joint Commission on the Accreditation of Hospitals,
9    (iii) fails or refuses to consent to and sign an
10    authorization allowing the Board to receive copies of or
11    to examine the employee's medical and hospital records, or
12    (iv) fails or refuses to provide complete information
13    regarding any other employment for compensation he or she
14    has received since becoming disabled; or
15        (5) The eligible period for this benefit has been
16    exhausted.
17    The first payment of the benefit shall be made not later
18than one month after the same has been granted, and subsequent
19payments shall be made at least monthly intervals of not more
20than 30 days.
21(Source: P.A. 94-621, eff. 8-18-05.)
 
22
Article 20.

 
23    Section 20-5. The Illinois Pension Code is amended by
24changing Sections 17-140 and 17-151.1 as follows:
 

 

 

10200SB1056ham001- 56 -LRB102 04871 AMC 26537 a

1    (40 ILCS 5/17-140)  (from Ch. 108 1/2, par. 17-140)
2    Sec. 17-140. Board officers. The president, recording
3secretary and other officers of the Board shall be elected by
4and from the members of the Board board at the first meeting of
5the Board after the election of trustees.
6    In case any officer whose signature appears upon any check
7or draft, issued pursuant to this Article, ceases (after
8attaching his signature) to hold his office, the before the
9delivery thereof to the payee, his signature nevertheless
10shall be valid and sufficient for all purposes with the same
11effect as if he had remained in office until delivery thereof.
12(Source: P.A. 90-566, eff. 1-2-98.)
 
13    (40 ILCS 5/17-151.1)
14    Sec. 17-151.1. Recovery of amount paid in error.
15    (a) The Board may retain out of any annuity or benefit
16payable to any person any amount that the Board determines is
17owing to the Fund because (i) required employee contributions
18were not made in whole or in part, (ii) employee or member
19obligations to return refunds were not met, or (iii) money was
20paid to any employee, member, or annuitant through
21misrepresentation, fraud, or error.
22    If the Fund mistakenly sets any benefit at an incorrect
23amount, the Fund shall recalculate the benefit as soon as may
24be practicable after the mistake is discovered. The Fund shall

 

 

10200SB1056ham001- 57 -LRB102 04871 AMC 26537 a

1provide the recipient, or the survivor or beneficiary of the
2recipient, as the case may be, with at least 60 days' notice of
3the corrected amount.
4    If the benefit was mistakenly set too low, the Fund shall
5make a lump sum payment to the recipient, or the survivor or
6beneficiary of the recipient, as the case may be, of an amount
7equal to the difference between the benefits that should have
8been paid and those actually paid, plus interest at the rate of
93% from the date the unpaid amounts accrued to the date of
10payment.
11    If the benefit was mistakenly set too high, the Fund may
12recover the amount overpaid from the recipient, or the
13survivor or beneficiary of the recipient, as the case may be,
14plus interest at 3% from the date of overpayment to the date of
15recovery. The recipient, or the survivor or beneficiary of the
16recipient, as the case may be, may elect to repay the sum owed
17either directly by a lump sum payment, in agreed-upon monthly
18payments over a period not to exceed 5 years, or through an
19actuarial equivalent reduction of the corrected benefit.
20However, if (1) the amount of the benefit was mistakenly set
21too high, (2) the error was undiscovered for 3 years or longer
22from the date of the first mistaken benefit payment, and (3)
23the error was not the result of incorrect information supplied
24by the affected member, then upon discovery of the mistake the
25benefit shall be adjusted to the correct level, but the
26recipient of the benefit shall not be required to repay to the

 

 

10200SB1056ham001- 58 -LRB102 04871 AMC 26537 a

1Fund the excess amounts received in error.
2    (b) The Board and the Fund shall be held free from any
3liability for any money retained or paid in accordance with
4this Section, and the employee, member, or pensioner shall be
5assumed to have assented and agreed to the disposition of
6money due.
7    (c) The changes made by this amendatory Act of the 94th
8General Assembly are not limited to persons in service on or
9after the effective date of this amendatory Act.
10(Source: P.A. 94-425, eff. 8-2-05.)
 
11
Article 25.

 
12    Section 25-5. The Illinois Pension Code is amended by
13changing Section 17-106.1 as follows:
 
14    (40 ILCS 5/17-106.1)
15    Sec. 17-106.1. Administrator. Administrator means a member
16who (i) is employed in a position that requires him or her to
17hold a professional educator license with an administrative
18endorsement Type 75 Certificate issued by the State Board of
19Education State Teacher Certification Board, (ii) is not on
20the Chicago teachers' or the Chicago charter school teachers'
21salary schedule, or (iii) is paid on an administrative
22payroll.
23(Source: P.A. 94-514, eff. 8-10-05; 94-912, eff. 6-23-06.)
 

 

 

10200SB1056ham001- 59 -LRB102 04871 AMC 26537 a

1
Article 30.

 
2    Section 30-5. The Illinois Pension Code is amended by
3changing Section 17-131 as follows:
 
4    (40 ILCS 5/17-131)  (from Ch. 108 1/2, par. 17-131)
5    Sec. 17-131. Administration of payroll deductions.
6    (a) An Employer or the Board shall make pension deductions
7in each pay period on the basis of the salary earned in that
8period, exclusive of salaries for overtime, extracurricular
9activities, or any employment on an optional basis, such as in
10summer school.
11    (b) If a salary paid in a pay period includes adjustments
12on account of errors or omissions in prior pay periods, then
13salary amounts and related pension deductions shall be
14separately identified as to the adjusted pay period and
15deductions by the Employer or the Board shall be at rates in
16force during the applicable adjusted pay period.
17    (c) If members earn salaries for the school year, as
18established by an Employer, or if they earn annual salaries
19over more than a 10-calendar month period, or if they earn
20annual salaries over more than 170 calendar days, the required
21contribution amount shall be deducted by the Employer in
22installments on the basis of salary earned in each pay period.
23The total amounts for each pay period shall be deducted

 

 

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1whenever salary payments represent a partial or whole day's
2pay.
3    (d) If an Employer or the Board pays a salary to a member
4for vacation periods, then the salary shall be considered part
5of the member's pensionable salary, shall be subject to the
6standard deductions for pension contributions, and shall be
7considered to represent pay for the number of whole days of
8vacation.
9    (e) If deductions from salaries result in amounts of less
10than one cent, the fractional sums shall be increased to the
11next higher cent. Any excess of these fractional increases
12over the prescribed annual contributions shall be credited to
13the members' accounts.
14    (f) In the event that, pursuant to Section 17-130.1,
15employee contributions are picked up or made by the Employer
16or the Board of Education on behalf of its employees, then the
17amount of the employee contributions which are picked up or
18made in that manner shall not be deducted from the salaries of
19such employees.
20(Source: P.A. 101-261, eff. 8-9-19.)
 
21
Article 35.

 
22    Section 35-5. The Illinois Pension Code is amended by
23changing Section 15-159 as follows:
 

 

 

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1    (40 ILCS 5/15-159)  (from Ch. 108 1/2, par. 15-159)
2    Sec. 15-159. Board created.
3    (a) A board of trustees constituted as provided in this
4Section shall administer this System. The board shall be known
5as the Board of Trustees of the State Universities Retirement
6System.
7    (b) (Blank).
8    (c) (Blank).
9    (d) Beginning on the 90th day after April 3, 2009 (the
10effective date of Public Act 96-6), the Board of Trustees
11shall be constituted as follows:
12        (1) The Chairperson of the Board of Higher Education.
13        (2) Four trustees appointed by the Governor with the
14    advice and consent of the Senate who may not be members of
15    the system or hold an elective State office and who shall
16    serve for a term of 6 years, except that the terms of the
17    initial appointees under this subsection (d) shall be as
18    follows: 2 for a term of 3 years and 2 for a term of 6
19    years. The term of an appointed trustee shall terminate
20    immediately upon becoming a member of the system or being
21    sworn into an elective State office, and the position
22    shall be considered to be vacant and shall be filled
23    pursuant to subsection (f) of this Section.
24        (3) Four participating employees active participants
25    of the system to be elected from the contributing
26    membership of the system by the contributing members, no

 

 

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1    more than 2 of which may be from any of the University of
2    Illinois campuses, who shall serve for a term of 6 years,
3    except that the terms of the initial electees shall be as
4    follows: 2 for a term of 3 years and 2 for a term of 6
5    years.
6        (4) Two annuitants of the system who have been
7    annuitants for at least one full year, to be elected from
8    and by the annuitants of the system, no more than one of
9    which may be from any of the University of Illinois
10    campuses, who shall serve for a term of 6 years, except
11    that the terms of the initial electees shall be as
12    follows: one for a term of 3 years and one for a term of 6
13    years.
14    The chairperson of the Board shall be appointed by the
15Governor from among the trustees.
16    For the purposes of this Section, the Governor may make a
17nomination and the Senate may confirm the nominee in advance
18of the commencement of the nominee's term of office.
19    (e) The 6 elected trustees shall be elected within 90 days
20after April 3, 2009 (the effective date of Public Act 96-6) for
21a term beginning on the 90th day after that effective date.
22Trustees shall be elected thereafter as terms expire for a
236-year term beginning July 15 next following their election,
24and such election shall be held on May 1, or on May 2 when May
251 falls on a Sunday. The board may establish rules for the
26election of trustees to implement the provisions of Public Act

 

 

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196-6 and for future elections. Candidates for the
2participating trustee shall be nominated by petitions in
3writing, signed by not less than 400 participants with their
4addresses shown opposite their names. Candidates for the
5annuitant trustee shall be nominated by petitions in writing,
6signed by not less than 100 annuitants with their addresses
7shown opposite their names. If there is more than one
8qualified nominee for each elected trustee, then the board
9shall conduct a secret ballot election by mail for that
10trustee, in accordance with rules as established by the board.
11If there is only one qualified person nominated by petition
12for each elected trustee, then the election as required by
13this Section shall not be conducted for that trustee and the
14board shall declare such nominee duly elected. A vacancy
15occurring in the elective membership of the board shall be
16filled for the unexpired term by the elected trustees serving
17on the board for the remainder of the term. Nothing in this
18subsection shall preclude the adoption of rules providing for
19internet or phone balloting in addition, or as an alternative,
20to election by mail.
21    (f) A vacancy in the appointed membership on the board of
22trustees caused by resignation, death, expiration of term of
23office, or other reason shall be filled by a qualified person
24appointed by the Governor for the remainder of the unexpired
25term.
26    (g) Trustees (other than the trustees incumbent on June

 

 

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130, 1995 or as provided in subsection (c) of this Section)
2shall continue in office until their respective successors are
3appointed and have qualified, except that a trustee elected
4appointed to one of the participating employee participant
5positions after the effective date of this amendatory Act of
6the 102nd General Assembly shall be disqualified immediately
7upon the termination of his or her status as a participating
8employee participant and a trustee elected appointed to one of
9the annuitant positions after the effective date of this
10amendatory Act of the 102nd General Assembly shall be
11disqualified immediately upon the termination of his or her
12status as an annuitant receiving a retirement annuity.
13    An elected trustee who is incumbent on the effective date
14of this amendatory Act of the 102nd General Assembly whose
15status as a participating employee or annuitant has terminated
16after having been elected shall continue to serve in the
17participating employee or annuitant position to which he or
18she was elected for the remainder of the term.
19    (h) Each trustee must take an oath of office before a
20notary public of this State and shall qualify as a trustee upon
21the presentation to the board of a certified copy of the oath.
22The oath must state that the person will diligently and
23honestly administer the affairs of the retirement system, and
24will not knowingly violate or willfully permit to be violated
25any provisions of this Article.
26    Each trustee shall serve without compensation but shall be

 

 

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1reimbursed for expenses necessarily incurred in attending
2board meetings and carrying out his or her duties as a trustee
3or officer of the system.
4(Source: P.A. 101-610, eff. 1-1-20.)
 
5
Article 40.

 
6    Section 40-5. The Illinois Pension Code is amended by
7changing Section 10-107 as follows:
 
8    (40 ILCS 5/10-107)  (from Ch. 108 1/2, par. 10-107)
9    Sec. 10-107. Financing - Tax levy. The forest preserve
10district may levy an annual tax on the value, as equalized or
11assessed by the Department of Revenue, of all taxable property
12in the district for the purpose of providing revenue for the
13fund. The rate of such tax in any year may not exceed the rate
14herein specified for that year or the rate which will produce,
15when extended, the sum herein stated for that year, whichever
16is higher: for any year prior to 1970, .00103% or $195,000; for
17the year 1970, .00111% or $210,000; for the year 1971, .00116%
18or $220,000. For the year 1972 and each year thereafter, the
19Forest Preserve District shall levy a tax annually at a rate on
20the dollar of the value, as equalized or assessed by the
21Department of Revenue upon all taxable property in the county,
22when extended, not to exceed an amount equal to the total
23amount of contributions by the employees to the fund made in

 

 

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1the calendar year 2 years prior to the year for which the
2annual applicable tax is levied, multiplied by 1.25 for the
3year 1972; and by 1.30 for the year 1973 and for each year
4thereafter.
5    The tax shall be levied and collected in like manner with
6the general taxes of the district and shall be in addition to
7the maximum of all other tax rates which the district may levy
8upon the aggregate valuation of all taxable property and shall
9be exclusive of and in addition to the maximum amount and rate
10of taxes the district may levy for general purposes or under
11and by virtue of any laws which limit the amount of tax which
12the district may levy for general purposes. The county clerk
13of the county in which the forest preserve district is located
14in reducing tax levies under the provisions of "An Act
15concerning the levy and extension of taxes", approved May 9,
161901, as amended, shall not consider any such tax as a part of
17the general tax levy for forest preserve purposes, and shall
18not include the same in the limitation of 1% of the assessed
19valuation upon which taxes are required to be extended, and
20shall not reduce the same under the provisions of that Act. The
21proceeds of the tax herein authorized shall be kept as a
22separate fund.
23    The forest preserve district may use other lawfully
24available funds in lieu of all or part of the levy.
25    The Board may establish a manpower program reserve, or a
26special forest preserve district contribution rate, with

 

 

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1respect to employees whose wages are funded as program
2participants under the Comprehensive Employment and Training
3Act of 1973 in the manner provided in subsection (d) or (e),
4respectively, of Section 9-169.
5(Source: P.A. 81-1509.)
 
6
Article 45.

 
7    Section 45-5. The Illinois Pension Code is amended by
8changing Section 9-158 as follows:
 
9    (40 ILCS 5/9-158)  (from Ch. 108 1/2, par. 9-158)
10    Sec. 9-158. Proof of disability, duty and ordinary. Proof
11of duty or ordinary disability shall be furnished to the board
12by at least one licensed and practicing physician appointed by
13or acceptable to the board, except that this requirement may
14be waived by the board for proof of duty disability if the
15employee has been compensated by the county for such
16disability or specific loss under the Workers' Compensation
17Act or Workers' Occupational Diseases Act. The physician
18requirement may also be waived by the board for ordinary
19disability maternity claims of up to 8 weeks. With respect to
20duty disability, satisfactory proof must be provided to the
21board that the final adjudication of the claim required under
22subsection (d) of Section 9-159 established that the
23disability or death resulted from an injury incurred in the

 

 

10200SB1056ham001- 68 -LRB102 04871 AMC 26537 a

1performance of an act or acts of duty. The board may require
2other evidence of disability. Each disabled employee who
3receives duty or ordinary disability benefit shall be examined
4at least once a year or a longer period of time as determined
5by the board, by one or more licensed and practicing
6physicians appointed by the board. When the disability ceases,
7the board shall discontinue payment of the benefit.
8(Source: P.A. 99-578, eff. 7-15-16.)
 
9
Article 50.

 
10    Section 50-5. The Illinois Pension Code is amended by
11adding Section 14-148.5 as follows:
 
12    (40 ILCS 5/14-148.5 new)
13    Sec. 14-148.5. Indemnification of financial institution
14for recovery of overpayment. The System may indemnify a bank,
15savings and loan association, or other financial institution
16insured by an agency of the federal government as necessary to
17recover for the System any benefit overpayment that the System
18has made to the financial institution on behalf of a member.
 
19    (40 ILCS 5/21-120 rep.)
20    Section 50-10. The Illinois Pension Code is amended by
21repealing Section 21-120.
 

 

 

10200SB1056ham001- 69 -LRB102 04871 AMC 26537 a

1
Article 55.

 
2    Section 55-5. The Illinois Pension Code is amended by
3adding Section 4-108.8 and by changing Sections 7-139.8,
414-110, and 14-152.1 as follows:
 
5    (40 ILCS 5/4-108.8 new)
6    Sec. 4-108.8. Transfer of creditable service to the State
7Employees' Retirement System.
8    (a) Any active member of the State Employees' Retirement
9System who is an arson investigator may apply for transfer of
10some or all of his or her credits and creditable service
11accumulated in any firefighters' pension fund under this
12Article to the State Employees' Retirement System in
13accordance with Section 14-110. The creditable service shall
14be transferred only upon payment by the firefighters' pension
15fund to the State Employees' Retirement System of an amount
16equal to:
17        (1) the amounts accumulated to the credit of the
18    applicant for the service to be transferred on file with
19    the fund on the date of transfer;
20        (2) employer contributions in an amount equal to the
21    amount determined under paragraph (1); and
22        (3) any interest paid by the applicant in order to
23    reinstate service to be transferred.
24    Participation in the firefighters' pension fund with

 

 

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1respect to the service to be transferred shall terminate on
2the date of transfer.
3    (b) Any person applying to transfer service under this
4Section may reinstate service that was terminated by receipt
5of a refund, by paying to the firefighters' pension fund the
6amount of the refund with interest thereon at the actuarially
7assumed rate of interest, compounded annually, from the date
8of refund to the date of payment.
 
9    (40 ILCS 5/7-139.8)  (from Ch. 108 1/2, par. 7-139.8)
10    Sec. 7-139.8. Transfer to Article 14 System.
11    (a) Any active member of the State Employees' Retirement
12System who is a State policeman, an investigator for the
13Secretary of State, a conservation police officer, an
14investigator for the Office of the Attorney General, an
15investigator for the Department of Revenue, a Commerce
16Commission police officer, an investigator for the Office of
17the State's Attorneys Appellate Prosecutor, or a controlled
18substance inspector may apply for transfer of some or all of
19his or her credits and creditable service accumulated in this
20Fund for service as a sheriff's law enforcement employee,
21person employed by a participating municipality to perform
22police duties, or law enforcement officer employed on a
23full-time basis by a forest preserve district to the State
24Employees' Retirement System in accordance with Section
2514-110. The creditable service shall be transferred only upon

 

 

10200SB1056ham001- 71 -LRB102 04871 AMC 26537 a

1payment by this Fund to the State Employees' Retirement System
2of an amount equal to:
3        (1) the amounts accumulated to the credit of the
4    applicant for the service to be transferred, including
5    interest; and
6        (2) municipality credits based on such service,
7    including interest; and
8        (3) any interest paid by the applicant to reinstate
9    such service.
10Participation in this Fund as to any credits transferred under
11this Section shall terminate on the date of transfer.
12    (b) Any person applying to transfer service under this
13Section may reinstate credits and creditable service
14terminated upon receipt of a separation benefit, by paying to
15the Fund the amount of the separation benefit plus interest
16thereon at the actuarially assumed rate of interest to the
17date of payment.
18(Source: P.A. 95-530, eff. 8-28-07; 96-745, eff. 8-25-09.)
 
19    (40 ILCS 5/14-110)  (from Ch. 108 1/2, par. 14-110)
20    Sec. 14-110. Alternative retirement annuity.
21    (a) Any member who has withdrawn from service with not
22less than 20 years of eligible creditable service and has
23attained age 55, and any member who has withdrawn from service
24with not less than 25 years of eligible creditable service and
25has attained age 50, regardless of whether the attainment of

 

 

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1either of the specified ages occurs while the member is still
2in service, shall be entitled to receive at the option of the
3member, in lieu of the regular or minimum retirement annuity,
4a retirement annuity computed as follows:
5        (i) for periods of service as a noncovered employee:
6    if retirement occurs on or after January 1, 2001, 3% of
7    final average compensation for each year of creditable
8    service; if retirement occurs before January 1, 2001, 2
9    1/4% of final average compensation for each of the first
10    10 years of creditable service, 2 1/2% for each year above
11    10 years to and including 20 years of creditable service,
12    and 2 3/4% for each year of creditable service above 20
13    years; and
14        (ii) for periods of eligible creditable service as a
15    covered employee: if retirement occurs on or after January
16    1, 2001, 2.5% of final average compensation for each year
17    of creditable service; if retirement occurs before January
18    1, 2001, 1.67% of final average compensation for each of
19    the first 10 years of such service, 1.90% for each of the
20    next 10 years of such service, 2.10% for each year of such
21    service in excess of 20 but not exceeding 30, and 2.30% for
22    each year in excess of 30.
23    Such annuity shall be subject to a maximum of 75% of final
24average compensation if retirement occurs before January 1,
252001 or to a maximum of 80% of final average compensation if
26retirement occurs on or after January 1, 2001.

 

 

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1    These rates shall not be applicable to any service
2performed by a member as a covered employee which is not
3eligible creditable service. Service as a covered employee
4which is not eligible creditable service shall be subject to
5the rates and provisions of Section 14-108.
6    (b) For the purpose of this Section, "eligible creditable
7service" means creditable service resulting from service in
8one or more of the following positions:
9        (1) State policeman;
10        (2) fire fighter in the fire protection service of a
11    department;
12        (3) air pilot;
13        (4) special agent;
14        (5) investigator for the Secretary of State;
15        (6) conservation police officer;
16        (7) investigator for the Department of Revenue or the
17    Illinois Gaming Board;
18        (8) security employee of the Department of Human
19    Services;
20        (9) Central Management Services security police
21    officer;
22        (10) security employee of the Department of
23    Corrections or the Department of Juvenile Justice;
24        (11) dangerous drugs investigator;
25        (12) investigator for the Department of State Police;
26        (13) investigator for the Office of the Attorney

 

 

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1    General;
2        (14) controlled substance inspector;
3        (15) investigator for the Office of the State's
4    Attorneys Appellate Prosecutor;
5        (16) Commerce Commission police officer;
6        (17) arson investigator;
7        (18) State highway maintenance worker;
8        (19) security employee of the Department of Innovation
9    and Technology; or
10        (20) transferred employee.
11    A person employed in one of the positions specified in
12this subsection is entitled to eligible creditable service for
13service credit earned under this Article while undergoing the
14basic police training course approved by the Illinois Law
15Enforcement Training Standards Board, if completion of that
16training is required of persons serving in that position. For
17the purposes of this Code, service during the required basic
18police training course shall be deemed performance of the
19duties of the specified position, even though the person is
20not a sworn peace officer at the time of the training.
21    A person under paragraph (20) is entitled to eligible
22creditable service for service credit earned under this
23Article on and after his or her transfer by Executive Order No.
242003-10, Executive Order No. 2004-2, or Executive Order No.
252016-1.
26    (c) For the purposes of this Section:

 

 

10200SB1056ham001- 75 -LRB102 04871 AMC 26537 a

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

 

 

10200SB1056ham001- 76 -LRB102 04871 AMC 26537 a

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

 

 

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

 

 

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

 

 

10200SB1056ham001- 79 -LRB102 04871 AMC 26537 a

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

 

 

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

 

 

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

 

 

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1        Illinois Department of Transportation in the position
2        of highway maintainer, highway maintenance lead
3        worker, highway maintenance lead/lead worker, heavy
4        construction equipment operator, power shovel
5        operator, or bridge mechanic; and whose principal
6        responsibility is to perform, on the roadway, the
7        actual maintenance necessary to keep the highways that
8        form a part of the State highway system in serviceable
9        condition for vehicular traffic.
10            (ii) A person employed on a full-time basis by the
11        Illinois State Toll Highway Authority in the position
12        of equipment operator/laborer H-4, equipment
13        operator/laborer H-6, welder H-4, welder H-6,
14        mechanical/electrical H-4, mechanical/electrical H-6,
15        water/sewer H-4, water/sewer H-6, sign maker/hanger
16        H-4, sign maker/hanger H-6, roadway lighting H-4,
17        roadway lighting H-6, structural H-4, structural H-6,
18        painter H-4, or painter H-6; and whose principal
19        responsibility is to perform, on the roadway, the
20        actual maintenance necessary to keep the Authority's
21        tollways in serviceable condition for vehicular
22        traffic.
23        (19) The term "security employee of the Department of
24    Innovation and Technology" means a person who was a
25    security employee of the Department of Corrections or the
26    Department of Juvenile Justice, was transferred to the

 

 

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1    Department of Innovation and Technology pursuant to
2    Executive Order 2016-01, and continues to perform similar
3    job functions under that Department.
4        (20) "Transferred employee" means an employee who was
5    transferred to the Department of Central Management
6    Services by Executive Order No. 2003-10 or Executive Order
7    No. 2004-2 or transferred to the Department of Innovation
8    and Technology by Executive Order No. 2016-1, or both, and
9    was entitled to eligible creditable service for services
10    immediately preceding the transfer.
11    (d) A security employee of the Department of Corrections
12or the Department of Juvenile Justice, a security employee of
13the Department of Human Services who is not a mental health
14police officer, and a security employee of the Department of
15Innovation and Technology shall not be eligible for the
16alternative retirement annuity provided by this Section unless
17he or she meets the following minimum age and service
18requirements at the time of retirement:
19        (i) 25 years of eligible creditable service and age
20    55; or
21        (ii) beginning January 1, 1987, 25 years of eligible
22    creditable service and age 54, or 24 years of eligible
23    creditable service and age 55; or
24        (iii) beginning January 1, 1988, 25 years of eligible
25    creditable service and age 53, or 23 years of eligible
26    creditable service and age 55; or

 

 

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1        (iv) beginning January 1, 1989, 25 years of eligible
2    creditable service and age 52, or 22 years of eligible
3    creditable service and age 55; or
4        (v) beginning January 1, 1990, 25 years of eligible
5    creditable service and age 51, or 21 years of eligible
6    creditable service and age 55; or
7        (vi) beginning January 1, 1991, 25 years of eligible
8    creditable service and age 50, or 20 years of eligible
9    creditable service and age 55.
10    Persons who have service credit under Article 16 of this
11Code for service as a security employee of the Department of
12Corrections or the Department of Juvenile Justice, or the
13Department of Human Services in a position requiring
14certification as a teacher may count such service toward
15establishing their eligibility under the service requirements
16of this Section; but such service may be used only for
17establishing such eligibility, and not for the purpose of
18increasing or calculating any benefit.
19    (e) If a member enters military service while working in a
20position in which eligible creditable service may be earned,
21and returns to State service in the same or another such
22position, and fulfills in all other respects the conditions
23prescribed in this Article for credit for military service,
24such military service shall be credited as eligible creditable
25service for the purposes of the retirement annuity prescribed
26in this Section.

 

 

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1    (f) For purposes of calculating retirement annuities under
2this Section, periods of service rendered after December 31,
31968 and before October 1, 1975 as a covered employee in the
4position of special agent, conservation police officer, mental
5health police officer, or investigator for the Secretary of
6State, shall be deemed to have been service as a noncovered
7employee, provided that the employee pays to the System prior
8to retirement an amount equal to (1) the difference between
9the employee contributions that would have been required for
10such service as a noncovered employee, and the amount of
11employee contributions actually paid, plus (2) if payment is
12made after July 31, 1987, regular interest on the amount
13specified in item (1) from the date of service to the date of
14payment.
15    For purposes of calculating retirement annuities under
16this Section, periods of service rendered after December 31,
171968 and before January 1, 1982 as a covered employee in the
18position of investigator for the Department of Revenue shall
19be deemed to have been service as a noncovered employee,
20provided that the employee pays to the System prior to
21retirement an amount equal to (1) the difference between the
22employee contributions that would have been required for such
23service as a noncovered employee, and the amount of employee
24contributions actually paid, plus (2) if payment is made after
25January 1, 1990, regular interest on the amount specified in
26item (1) from the date of service to the date of payment.

 

 

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1    (g) A State policeman may elect, not later than January 1,
21990, to establish eligible creditable service for up to 10
3years of his service as a policeman under Article 3, by filing
4a written election with the Board, accompanied by payment of
5an amount to be determined by the Board, equal to (i) the
6difference between the amount of employee and employer
7contributions transferred to the System under Section 3-110.5,
8and the amounts that would have been contributed had such
9contributions been made at the rates applicable to State
10policemen, plus (ii) interest thereon at the effective rate
11for each year, compounded annually, from the date of service
12to the date of payment.
13    Subject to the limitation in subsection (i), a State
14policeman may elect, not later than July 1, 1993, to establish
15eligible creditable service for up to 10 years of his service
16as a member of the County Police Department under Article 9, by
17filing a written election with the Board, accompanied by
18payment of an amount to be determined by the Board, equal to
19(i) the difference between the amount of employee and employer
20contributions transferred to the System under Section 9-121.10
21and the amounts that would have been contributed had those
22contributions been made at the rates applicable to State
23policemen, plus (ii) interest thereon at the effective rate
24for each year, compounded annually, from the date of service
25to the date of payment.
26    (h) Subject to the limitation in subsection (i), a State

 

 

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1policeman or investigator for the Secretary of State may elect
2to establish eligible creditable service for up to 12 years of
3his service as a policeman under Article 5, by filing a written
4election with the Board on or before January 31, 1992, and
5paying to the System by January 31, 1994 an amount to be
6determined by the Board, equal to (i) the difference between
7the amount of employee and employer contributions transferred
8to the System under Section 5-236, and the amounts that would
9have been contributed had such contributions been made at the
10rates applicable to State policemen, plus (ii) interest
11thereon at the effective rate for each year, compounded
12annually, from the date of service to the date of payment.
13    Subject to the limitation in subsection (i), a State
14policeman, conservation police officer, or investigator for
15the Secretary of State may elect to establish eligible
16creditable service for up to 10 years of service as a sheriff's
17law enforcement employee under Article 7, by filing a written
18election with the Board on or before January 31, 1993, and
19paying to the System by January 31, 1994 an amount to be
20determined by the Board, equal to (i) the difference between
21the amount of employee and employer contributions transferred
22to the System under Section 7-139.7, and the amounts that
23would have been contributed had such contributions been made
24at the rates applicable to State policemen, plus (ii) interest
25thereon at the effective rate for each year, compounded
26annually, from the date of service to the date of payment.

 

 

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1    Subject to the limitation in subsection (i), a State
2policeman, conservation police officer, or investigator for
3the Secretary of State may elect to establish eligible
4creditable service for up to 5 years of service as a police
5officer under Article 3, a policeman under Article 5, a
6sheriff's law enforcement employee under Article 7, a member
7of the county police department under Article 9, or a police
8officer under Article 15 by filing a written election with the
9Board and paying to the System an amount to be determined by
10the Board, equal to (i) the difference between the amount of
11employee and employer contributions transferred to the System
12under Section 3-110.6, 5-236, 7-139.8, 9-121.10, or 15-134.4
13and the amounts that would have been contributed had such
14contributions been made at the rates applicable to State
15policemen, plus (ii) interest thereon at the effective rate
16for each year, compounded annually, from the date of service
17to the date of payment.
18    Subject to the limitation in subsection (i), an
19investigator for the Office of the Attorney General, or an
20investigator for the Department of Revenue, may elect to
21establish eligible creditable service for up to 5 years of
22service as a police officer under Article 3, a policeman under
23Article 5, a sheriff's law enforcement employee under Article
247, or a member of the county police department under Article 9
25by filing a written election with the Board within 6 months
26after August 25, 2009 (the effective date of Public Act

 

 

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196-745) and paying to the System an amount to be determined by
2the Board, equal to (i) the difference between the amount of
3employee and employer contributions transferred to the System
4under Section 3-110.6, 5-236, 7-139.8, or 9-121.10 and the
5amounts that would have been contributed had such
6contributions been made at the rates applicable to State
7policemen, plus (ii) interest thereon at the actuarially
8assumed rate for each year, compounded annually, from the date
9of service to the date of payment.
10    Subject to the limitation in subsection (i), a State
11policeman, conservation police officer, investigator for the
12Office of the Attorney General, an investigator for the
13Department of Revenue, or investigator for the Secretary of
14State may elect to establish eligible creditable service for
15up to 5 years of service as a person employed by a
16participating municipality to perform police duties, or law
17enforcement officer employed on a full-time basis by a forest
18preserve district under Article 7, a county corrections
19officer, or a court services officer under Article 9, by
20filing a written election with the Board within 6 months after
21August 25, 2009 (the effective date of Public Act 96-745) and
22paying to the System an amount to be determined by the Board,
23equal to (i) the difference between the amount of employee and
24employer contributions transferred to the System under
25Sections 7-139.8 and 9-121.10 and the amounts that would have
26been contributed had such contributions been made at the rates

 

 

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1applicable to State policemen, plus (ii) interest thereon at
2the actuarially assumed rate for each year, compounded
3annually, from the date of service to the date of payment.
4    Subject to the limitation in subsection (i), a State
5policeman, arson investigator, or Commerce Commission police
6officer may elect to establish eligible creditable service for
7up to 5 years of service as a person employed by a
8participating municipality to perform police duties under
9Article 7, a county corrections officer, a court services
10officer under Article 9, or a firefighter under Article 4 by
11filing a written election with the Board within 6 months after
12the effective date of this amendatory Act of the 102nd General
13Assembly and paying to the System an amount to be determined by
14the Board equal to (i) the difference between the amount of
15employee and employer contributions transferred to the System
16under Sections 4-108.8, 7-139.8, and 9-121.10 and the amounts
17that would have been contributed had such contributions been
18made at the rates applicable to State policemen, plus (ii)
19interest thereon at the actuarially assumed rate for each
20year, compounded annually, from the date of service to the
21date of payment.
22    Subject to the limitation in subsection (i), a
23conservation police officer may elect to establish eligible
24creditable service for up to 5 years of service as a person
25employed by a participating municipality to perform police
26duties under Article 7, a county corrections officer, or a

 

 

10200SB1056ham001- 91 -LRB102 04871 AMC 26537 a

1court services officer under Article 9 by filing a written
2election with the Board within 6 months after the effective
3date of this amendatory Act of the 102nd General Assembly and
4paying to the System an amount to be determined by the Board
5equal to (i) the difference between the amount of employee and
6employer contributions transferred to the System under
7Sections 7-139.8 and 9-121.10 and the amounts that would have
8been contributed had such contributions been made at the rates
9applicable to State policemen, plus (ii) interest thereon at
10the actuarially assumed rate for each year, compounded
11annually, from the date of service to the date of payment.
12    Notwithstanding the limitation in subsection (i), a State
13policeman or conservation police officer may elect to convert
14service credit earned under this Article to eligible
15creditable service, as defined by this Section, by filing a
16written election with the board within 6 months after the
17effective date of this amendatory Act of the 102nd General
18Assembly and paying to the System an amount to be determined by
19the Board equal to (i) the difference between the amount of
20employee contributions originally paid for that service and
21the amounts that would have been contributed had such
22contributions been made at the rates applicable to State
23policemen, plus (ii) the difference between the employer's
24normal cost of the credit prior to the conversion authorized
25by this amendatory Act of the 102nd General Assembly and the
26employer's normal cost of the credit converted in accordance

 

 

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1with this amendatory Act of the 102nd General Assembly, plus
2(iii) interest thereon at the actuarially assumed rate for
3each year, compounded annually, from the date of service to
4the date of payment.
5    (i) The total amount of eligible creditable service
6established by any person under subsections (g), (h), (j),
7(k), (l), (l-5), and (o) of this Section shall not exceed 12
8years.
9    (j) Subject to the limitation in subsection (i), an
10investigator for the Office of the State's Attorneys Appellate
11Prosecutor or a controlled substance inspector may elect to
12establish eligible creditable service for up to 10 years of
13his service as a policeman under Article 3 or a sheriff's law
14enforcement employee under Article 7, by filing a written
15election with the Board, accompanied by payment of an amount
16to be determined by the Board, equal to (1) the difference
17between the amount of employee and employer contributions
18transferred to the System under Section 3-110.6 or 7-139.8,
19and the amounts that would have been contributed had such
20contributions been made at the rates applicable to State
21policemen, plus (2) interest thereon at the effective rate for
22each year, compounded annually, from the date of service to
23the date of payment.
24    (k) Subject to the limitation in subsection (i) of this
25Section, an alternative formula employee may elect to
26establish eligible creditable service for periods spent as a

 

 

10200SB1056ham001- 93 -LRB102 04871 AMC 26537 a

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

 

 

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1employee and employer contributions transferred to the System
2under Section 3-110.5, and the amounts that would have been
3contributed had such contributions been made at the rates
4applicable to security employees of the Department of
5Corrections, plus (ii) interest thereon at the effective rate
6for each year, compounded annually, from the date of service
7to the date of payment.
8    (l-5) Subject to the limitation in subsection (i) of this
9Section, a State policeman may elect to establish eligible
10creditable service for up to 5 years of service as a full-time
11law enforcement officer employed by the federal government or
12by a state or local government located outside of Illinois for
13which credit is not held in any other public employee pension
14fund or retirement system. To obtain this credit, the
15applicant must file a written application with the Board no
16later than 3 years after the effective date of this amendatory
17Act of the 101st General Assembly, accompanied by evidence of
18eligibility acceptable to the Board and payment of an amount
19to be determined by the Board, equal to (1) employee
20contributions for the credit being established, based upon the
21applicant's salary on the first day as an alternative formula
22employee after the employment for which credit is being
23established and the rates then applicable to alternative
24formula employees, plus (2) an amount determined by the Board
25to be the employer's normal cost of the benefits accrued for
26the credit being established, plus (3) regular interest on the

 

 

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1amounts in items (1) and (2) from the first day as an
2alternative formula employee after the employment for which
3credit is being established to the date of payment.
4    (m) The amendatory changes to this Section made by this
5amendatory Act of the 94th General Assembly apply only to: (1)
6security employees of the Department of Juvenile Justice
7employed by the Department of Corrections before the effective
8date of this amendatory Act of the 94th General Assembly and
9transferred to the Department of Juvenile Justice by this
10amendatory Act of the 94th General Assembly; and (2) persons
11employed by the Department of Juvenile Justice on or after the
12effective date of this amendatory Act of the 94th General
13Assembly who are required by subsection (b) of Section
143-2.5-15 of the Unified Code of Corrections to have any
15bachelor's or advanced degree from an accredited college or
16university or, in the case of persons who provide vocational
17training, who are required to have adequate knowledge in the
18skill for which they are providing the vocational training.
19    (n) A person employed in a position under subsection (b)
20of this Section who has purchased service credit under
21subsection (j) of Section 14-104 or subsection (b) of Section
2214-105 in any other capacity under this Article may convert up
23to 5 years of that service credit into service credit covered
24under this Section by paying to the Fund an amount equal to (1)
25the additional employee contribution required under Section
2614-133, plus (2) the additional employer contribution required

 

 

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1under Section 14-131, plus (3) interest on items (1) and (2) at
2the actuarially assumed rate from the date of the service to
3the date of payment.
4    (o) Subject to the limitation in subsection (i), a
5conservation police officer, investigator for the Secretary of
6State, Commerce Commission police officer, investigator for
7the Department of Revenue or the Illinois Gaming Board, or
8arson investigator subject to subsection (g) of Section 1-160
9may elect to convert up to 8 years of service credit
10established before the effective date of this amendatory Act
11of the 101st General Assembly as a conservation police
12officer, investigator for the Secretary of State, Commerce
13Commission police officer, investigator for the Department of
14Revenue or the Illinois Gaming Board, or arson investigator
15under this Article into eligible creditable service by filing
16a written election with the Board no later than one year after
17the effective date of this amendatory Act of the 101st General
18Assembly, accompanied by payment of an amount to be determined
19by the Board equal to (i) the difference between the amount of
20the employee contributions actually paid for that service and
21the amount of the employee contributions that would have been
22paid had the employee contributions been made as a noncovered
23employee serving in a position in which eligible creditable
24service, as defined in this Section, may be earned, plus (ii)
25interest thereon at the effective rate for each year,
26compounded annually, from the date of service to the date of

 

 

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1payment.
2(Source: P.A. 100-19, eff. 1-1-18; 100-611, eff. 7-20-18;
3101-610, eff. 1-1-20.)
 
4    (40 ILCS 5/14-152.1)
5    Sec. 14-152.1. 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 June 1, 2005 (the
12effective date of Public Act 94-4). "New benefit increase",
13however, does not include any benefit increase resulting from
14the changes made to Article 1 or this Article by Public Act
1596-37, Public Act 100-23, Public Act 100-587, Public Act
16100-611, Public Act 101-10, Public Act 101-610, or this
17amendatory Act of the 102nd General Assembly or this
18amendatory Act of the 101st General Assembly.
19    (b) Notwithstanding any other provision of this Code or
20any subsequent amendment to this Code, every new benefit
21increase is subject to this Section and shall be deemed to be
22granted only in conformance with and contingent upon
23compliance with the provisions of this Section.
24    (c) The Public Act enacting a new benefit increase must
25identify and provide for payment to the System of additional

 

 

10200SB1056ham001- 98 -LRB102 04871 AMC 26537 a

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

 

 

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1under this Section continues to apply to persons who applied
2and qualified for the affected benefit while the new benefit
3increase was in effect and to the affected beneficiaries and
4alternate payees of such persons, but does not apply to any
5other person, including, without limitation, a person who
6continues in service after the expiration date and did not
7apply and qualify for the affected benefit while the new
8benefit increase was in effect.
9(Source: P.A. 100-23, eff. 7-6-17; 100-587, eff. 6-4-18;
10100-611, eff. 7-20-18; 101-10, eff. 6-5-19; 101-81, eff.
117-12-19; 101-610, eff. 1-1-20.)
 
12
Article 65.

 
13    Section 65-5. The Illinois Pension Code is amended by
14changing Section 17-147 as follows:
 
15    (40 ILCS 5/17-147)  (from Ch. 108 1/2, par. 17-147)
16    Sec. 17-147. Custody of Fund; bonds; legal Fund - Bonds -
17Legal proceedings. The city treasurer, ex officio ex-officio,
18shall be the custodian of the Fund, and shall secure and safely
19keep it, subject to the control and direction of the Board. The
20city treasurer He shall keep the his books and accounts
21concerning the Fund in the manner prescribed by the Board. The
22books and accounts shall always be subject to the inspection
23of the Board or any member thereof. The city treasurer shall be

 

 

10200SB1056ham001- 100 -LRB102 04871 AMC 26537 a

1liable on the city treasurer's his official bond for the
2proper performance of his duties and the conservation of the
3Fund.
4    Payments from the Fund shall be made upon checks or
5through direct deposit transmittals authorized warrants signed
6by the president and the secretary of the Board of Education,
7the president of the Board, and countersigned by the executive
8director or by such person as the Board may designate from time
9to time by appropriate resolution.
10    Neither the treasurer nor any other officer having the
11custody of the Fund is entitled to retain any interest
12accruing thereon, but such interest shall accrue and inure to
13the benefit of such Fund, become a part thereof, subject to the
14purposes of this Article.
15    Any legal proceedings necessary for the enforcement of the
16provisions of this Article shall be brought by and in the name
17of the Board of the Fund.
18(Source: P.A. 90-566, eff. 1-2-98.)
 
19
Article 70.

 
20    Section 70-5. The Illinois Pension Code is amended by
21changing Section 16-106 as follows:
 
22    (40 ILCS 5/16-106)  (from Ch. 108 1/2, par. 16-106)
23    Sec. 16-106. Teacher. "Teacher": The following

 

 

10200SB1056ham001- 101 -LRB102 04871 AMC 26537 a

1individuals, provided that, for employment prior to July 1,
21990, they are employed on a full-time basis, or if not
3full-time, on a permanent and continuous basis in a position
4in which services are expected to be rendered for at least one
5school term:
6        (1) Any educational, administrative, professional or
7    other staff employed in the public common schools included
8    within this system in a position requiring certification
9    under the law governing the certification of teachers;
10        (2) Any educational, administrative, professional or
11    other staff employed in any facility of the Department of
12    Children and Family Services or the Department of Human
13    Services, in a position requiring certification under the
14    law governing the certification of teachers, and any
15    person who (i) works in such a position for the Department
16    of Corrections, (ii) was a member of this System on May 31,
17    1987, and (iii) did not elect to become a member of the
18    State Employees' Retirement System pursuant to Section
19    14-108.2 of this Code; except that "teacher" does not
20    include any person who (A) becomes a security employee of
21    the Department of Human Services, as defined in Section
22    14-110, after June 28, 2001 (the effective date of Public
23    Act 92-14), or (B) becomes a member of the State
24    Employees' Retirement System pursuant to Section 14-108.2c
25    of this Code;
26        (3) Any regional superintendent of schools, assistant

 

 

10200SB1056ham001- 102 -LRB102 04871 AMC 26537 a

1    regional superintendent of schools, State Superintendent
2    of Education; any person employed by the State Board of
3    Education as an executive; any executive of the boards
4    engaged in the service of public common school education
5    in school districts covered under this system of which the
6    State Superintendent of Education is an ex-officio member;
7        (4) Any employee of a school board association
8    operating in compliance with Article 23 of the School Code
9    who is certificated under the law governing the
10    certification of teachers, provided that he or she becomes
11    such an employee before the effective date of this
12    amendatory Act of the 99th General Assembly;
13        (5) Any person employed by the retirement system who:
14            (i) was an employee of and a participant in the
15        system on August 17, 2001 (the effective date of
16        Public Act 92-416), or
17            (ii) becomes an employee of the system on or after
18        August 17, 2001;
19        (6) Any educational, administrative, professional or
20    other staff employed by and under the supervision and
21    control of a regional superintendent of schools or the
22    chief administrative officer of the education service
23    centers established under Section 2-3.62 of the School
24    Code and serving that portion of a Class II county outside
25    a city of 500,000 or more inhabitants, provided such
26    employment position requires the person to be certificated

 

 

10200SB1056ham001- 103 -LRB102 04871 AMC 26537 a

1    under the law governing the certification of teachers and
2    is in an educational program serving 2 or more districts
3    in accordance with a joint agreement authorized by the
4    School Code or by federal legislation;
5        (7) Any educational, administrative, professional or
6    other staff employed in an educational program serving 2
7    or more school districts in accordance with a joint
8    agreement authorized by the School Code or by federal
9    legislation and in a position requiring certification
10    under the laws governing the certification of teachers;
11        (8) Any officer or employee of a statewide teacher
12    organization or officer of a national teacher organization
13    who is certified under the law governing certification of
14    teachers, provided: (i) the individual had previously
15    established creditable service under this Article, (ii)
16    the individual files with the system an irrevocable
17    election to become a member before the effective date of
18    this amendatory Act of the 97th General Assembly, (iii)
19    the individual does not receive credit for such service
20    under any other Article of this Code, and (iv) the
21    individual first became an officer or employee of the
22    teacher organization and becomes a member before the
23    effective date of this amendatory Act of the 97th General
24    Assembly;
25        (9) Any educational, administrative, professional, or
26    other staff employed in a charter school operating in

 

 

10200SB1056ham001- 104 -LRB102 04871 AMC 26537 a

1    compliance with the Charter Schools Law who is
2    certificated under the law governing the certification of
3    teachers;
4        (10) Any person employed, on the effective date of
5    this amendatory Act of the 94th General Assembly, by the
6    Macon-Piatt Regional Office of Education in a
7    birth-through-age-three pilot program receiving funds
8    under Section 2-389 of the School Code who is required by
9    the Macon-Piatt Regional Office of Education to hold a
10    teaching certificate, provided that the Macon-Piatt
11    Regional Office of Education makes an election, within 6
12    months after the effective date of this amendatory Act of
13    the 94th General Assembly, to have the person participate
14    in the system. Any service established prior to the
15    effective date of this amendatory Act of the 94th General
16    Assembly for service as an employee of the Macon-Piatt
17    Regional Office of Education in a birth-through-age-three
18    pilot program receiving funds under Section 2-389 of the
19    School Code shall be considered service as a teacher if
20    employee and employer contributions have been received by
21    the system and the system has not refunded those
22    contributions.
23    An annuitant receiving a retirement annuity under this
24Article who is employed by a board of education or other
25employer as permitted under Section 16-118 or 16-150.1 is not
26a "teacher" for purposes of this Article. A person who has

 

 

10200SB1056ham001- 105 -LRB102 04871 AMC 26537 a

1received a single-sum retirement benefit under Section
216-136.4 of this Article is not a "teacher" for purposes of
3this Article. For purposes of this Article, "teacher" does not
4include a person employed by an entity that provides
5substitute teaching services under Section 2-3.173 of the
6School Code and is not a school district.
7(Source: P.A. 100-813, eff. 8-13-18; 101-502, eff. 8-23-19.)
 
8
Article 75.

 
9    Section 75-5. The State Employees Group Insurance Act of
101971 is amended by changing Section 6.5 as follows:
 
11    (5 ILCS 375/6.5)
12    Sec. 6.5. Health benefits for TRS benefit recipients and
13TRS dependent beneficiaries.
14    (a) Purpose. It is the purpose of this amendatory Act of
151995 to transfer the administration of the program of health
16benefits established for benefit recipients and their
17dependent beneficiaries under Article 16 of the Illinois
18Pension Code to the Department of Central Management Services.
19    (b) Transition provisions. The Board of Trustees of the
20Teachers' Retirement System shall continue to administer the
21health benefit program established under Article 16 of the
22Illinois Pension Code through December 31, 1995. Beginning
23January 1, 1996, the Department of Central Management Services

 

 

10200SB1056ham001- 106 -LRB102 04871 AMC 26537 a

1shall be responsible for administering a program of health
2benefits for TRS benefit recipients and TRS dependent
3beneficiaries under this Section. The Department of Central
4Management Services and the Teachers' Retirement System shall
5cooperate in this endeavor and shall coordinate their
6activities so as to ensure a smooth transition and
7uninterrupted health benefit coverage.
8    (c) Eligibility. All persons who were enrolled in the
9Article 16 program at the time of the transfer shall be
10eligible to participate in the program established under this
11Section without any interruption or delay in coverage or
12limitation as to pre-existing medical conditions. Eligibility
13to participate shall be determined by the Teachers' Retirement
14System. Eligibility information shall be communicated to the
15Department of Central Management Services in a format
16acceptable to the Department.
17    Eligible TRS benefit recipients may enroll or re-enroll in
18the program of health benefits established under this Section
19during any applicable annual open enrollment period and as
20otherwise permitted by the Department of Central Management
21Services. A TRS benefit recipient shall not be deemed
22ineligible to participate solely by reason of the TRS benefit
23recipient having made a previous election to disenroll or
24otherwise not participate in the program of health benefits.
25    A TRS dependent beneficiary who is a child age 19 or over
26and mentally or physically disabled does not become ineligible

 

 

10200SB1056ham001- 107 -LRB102 04871 AMC 26537 a

1to participate by reason of (i) becoming ineligible to be
2claimed as a dependent for Illinois or federal income tax
3purposes or (ii) receiving earned income, so long as those
4earnings are insufficient for the child to be fully
5self-sufficient.
6    (d) Coverage. The level of health benefits provided under
7this Section shall be similar to the level of benefits
8provided by the program previously established under Article
916 of the Illinois Pension Code.
10    Group life insurance benefits are not included in the
11benefits to be provided to TRS benefit recipients and TRS
12dependent beneficiaries under this Act.
13    The program of health benefits under this Section may
14include any or all of the benefit limitations, including but
15not limited to a reduction in benefits based on eligibility
16for federal Medicare benefits, that are provided under
17subsection (a) of Section 6 of this Act for other health
18benefit programs under this Act.
19    (e) Insurance rates and premiums. The Director shall
20determine the insurance rates and premiums for TRS benefit
21recipients and TRS dependent beneficiaries, and shall present
22to the Teachers' Retirement System of the State of Illinois,
23by April 15 of each calendar year, the rate-setting
24methodology (including but not limited to utilization levels
25and costs) used to determine the amount of the health care
26premiums.

 

 

10200SB1056ham001- 108 -LRB102 04871 AMC 26537 a

1        For Fiscal Year 1996, the premium shall be equal to
2    the premium actually charged in Fiscal Year 1995; in
3    subsequent years, the premium shall never be lower than
4    the premium charged in Fiscal Year 1995.
5        For Fiscal Year 2003, the premium shall not exceed
6    110% of the premium actually charged in Fiscal Year 2002.
7        For Fiscal Year 2004, the premium shall not exceed
8    112% of the premium actually charged in Fiscal Year 2003.
9        For Fiscal Year 2005, the premium shall not exceed a
10    weighted average of 106.6% of the premium actually charged
11    in Fiscal Year 2004.
12        For Fiscal Year 2006, the premium shall not exceed a
13    weighted average of 109.1% of the premium actually charged
14    in Fiscal Year 2005.
15        For Fiscal Year 2007, the premium shall not exceed a
16    weighted average of 103.9% of the premium actually charged
17    in Fiscal Year 2006.
18        For Fiscal Year 2008 and thereafter, the premium in
19    each fiscal year shall not exceed 105% of the premium
20    actually charged in the previous fiscal year.
21    Rates and premiums may be based in part on age and
22eligibility for federal medicare coverage. However, the cost
23of participation for a TRS dependent beneficiary who is an
24unmarried child age 19 or over and mentally or physically
25disabled shall not exceed the cost for a TRS dependent
26beneficiary who is an unmarried child under age 19 and

 

 

10200SB1056ham001- 109 -LRB102 04871 AMC 26537 a

1participates in the same major medical or managed care
2program.
3    The cost of health benefits under the program shall be
4paid as follows:
5        (1) For a TRS benefit recipient selecting a managed
6    care program, up to 75% of the total insurance rate shall
7    be paid from the Teacher Health Insurance Security Fund.
8    Effective with Fiscal Year 2007 and thereafter, for a TRS
9    benefit recipient selecting a managed care program, 75% of
10    the total insurance rate shall be paid from the Teacher
11    Health Insurance Security Fund.
12        (2) For a TRS benefit recipient selecting the major
13    medical coverage program, up to 50% of the total insurance
14    rate shall be paid from the Teacher Health Insurance
15    Security Fund if a managed care program is accessible, as
16    determined by the Teachers' Retirement System. Effective
17    with Fiscal Year 2007 and thereafter, for a TRS benefit
18    recipient selecting the major medical coverage program,
19    50% of the total insurance rate shall be paid from the
20    Teacher Health Insurance Security Fund if a managed care
21    program is accessible, as determined by the Department of
22    Central Management Services.
23        (3) For a TRS benefit recipient selecting the major
24    medical coverage program, up to 75% of the total insurance
25    rate shall be paid from the Teacher Health Insurance
26    Security Fund if a managed care program is not accessible,

 

 

10200SB1056ham001- 110 -LRB102 04871 AMC 26537 a

1    as determined by the Teachers' Retirement System.
2    Effective with Fiscal Year 2007 and thereafter, for a TRS
3    benefit recipient selecting the major medical coverage
4    program, 75% of the total insurance rate shall be paid
5    from the Teacher Health Insurance Security Fund if a
6    managed care program is not accessible, as determined by
7    the Department of Central Management Services.
8        (3.1) For a TRS dependent beneficiary who is Medicare
9    primary and enrolled in a managed care plan, or the major
10    medical coverage program if a managed care plan is not
11    available, 25% of the total insurance rate shall be paid
12    from the Teacher Health Security Fund as determined by the
13    Department of Central Management Services. For the purpose
14    of this item (3.1), the term "TRS dependent beneficiary
15    who is Medicare primary" means a TRS dependent beneficiary
16    who is participating in Medicare Parts A and B.
17        (4) Except as otherwise provided in item (3.1), the
18    balance of the rate of insurance, including the entire
19    premium of any coverage for TRS dependent beneficiaries
20    that has been elected, shall be paid by deductions
21    authorized by the TRS benefit recipient to be withheld
22    from his or her monthly annuity or benefit payment from
23    the Teachers' Retirement System; except that (i) if the
24    balance of the cost of coverage exceeds the amount of the
25    monthly annuity or benefit payment, the difference shall
26    be paid directly to the Teachers' Retirement System by the

 

 

10200SB1056ham001- 111 -LRB102 04871 AMC 26537 a

1    TRS benefit recipient, and (ii) all or part of the balance
2    of the cost of coverage may, at the school board's option,
3    be paid to the Teachers' Retirement System by the school
4    board of the school district from which the TRS benefit
5    recipient retired, in accordance with Section 10-22.3b of
6    the School Code. The Teachers' Retirement System shall
7    promptly deposit all moneys withheld by or paid to it
8    under this subdivision (e)(4) into the Teacher Health
9    Insurance Security Fund. These moneys shall not be
10    considered assets of the Retirement System.
11        (5) If, for any month beginning on or after January 1,
12    2013, a TRS benefit recipient or TRS dependent beneficiary
13    was enrolled in Medicare Parts A and B and such Medicare
14    coverage was primary to coverage under this Section but
15    payment for coverage under this Section was made at a rate
16    greater than the Medicare primary rate published by the
17    Department of Central Management Services, the TRS benefit
18    recipient or TRS dependent beneficiary shall be eligible
19    for a refund equal to the difference between the amount
20    paid by the TRS benefit recipient or TRS dependent
21    beneficiary and the published Medicare primary rate. To
22    receive a refund pursuant to this subsection, the TRS
23    benefit recipient or TRS dependent beneficiary must
24    provide documentation to the Department of Central
25    Management Services evidencing the TRS benefit recipient's
26    or TRS dependent beneficiary's Medicare coverage and the

 

 

10200SB1056ham001- 112 -LRB102 04871 AMC 26537 a

1    amount paid by the TRS benefit recipient or TRS dependent
2    beneficiary during the applicable time period. If in any
3    case an error is made in billing a TRS benefit recipient
4    under this Section, the Department shall identify the
5    error and refund the overpaid amount as soon as
6    practicable. A TRS benefit recipient who has overpaid
7    under this Section shall be entitled to a refund of
8    overpayments for up to 7 years of past payments.
9    (f) Financing. Beginning July 1, 1995, all revenues
10arising from the administration of the health benefit programs
11established under Article 16 of the Illinois Pension Code or
12this Section shall be deposited into the Teacher Health
13Insurance Security Fund, which is hereby created as a
14nonappropriated trust fund to be held outside the State
15Treasury, with the State Treasurer as custodian. Any interest
16earned on moneys in the Teacher Health Insurance Security Fund
17shall be deposited into the Fund.
18    Moneys in the Teacher Health Insurance Security Fund shall
19be used only to pay the costs of the health benefit program
20established under this Section, including associated
21administrative costs, and the costs associated with the health
22benefit program established under Article 16 of the Illinois
23Pension Code, as authorized in this Section. Beginning July 1,
241995, the Department of Central Management Services may make
25expenditures from the Teacher Health Insurance Security Fund
26for those costs.

 

 

10200SB1056ham001- 113 -LRB102 04871 AMC 26537 a

1    After other funds authorized for the payment of the costs
2of the health benefit program established under Article 16 of
3the Illinois Pension Code are exhausted and until January 1,
41996 (or such later date as may be agreed upon by the Director
5of Central Management Services and the Secretary of the
6Teachers' Retirement System), the Secretary of the Teachers'
7Retirement System may make expenditures from the Teacher
8Health Insurance Security Fund as necessary to pay up to 75% of
9the cost of providing health coverage to eligible benefit
10recipients (as defined in Sections 16-153.1 and 16-153.3 of
11the Illinois Pension Code) who are enrolled in the Article 16
12health benefit program and to facilitate the transfer of
13administration of the health benefit program to the Department
14of Central Management Services.
15    The Department of Central Management Services, or any
16successor agency designated to procure healthcare contracts
17pursuant to this Act, is authorized to establish funds,
18separate accounts provided by any bank or banks as defined by
19the Illinois Banking Act, or separate accounts provided by any
20savings and loan association or associations as defined by the
21Illinois Savings and Loan Act of 1985 to be held by the
22Director, outside the State treasury, for the purpose of
23receiving the transfer of moneys from the Teacher Health
24Insurance Security Fund. The Department may promulgate rules
25further defining the methodology for the transfers. Any
26interest earned by moneys in the funds or accounts shall inure

 

 

10200SB1056ham001- 114 -LRB102 04871 AMC 26537 a

1to the Teacher Health Insurance Security Fund. The transferred
2moneys, and interest accrued thereon, shall be used
3exclusively for transfers to administrative service
4organizations or their financial institutions for payments of
5claims to claimants and providers under the self-insurance
6health plan. The transferred moneys, and interest accrued
7thereon, shall not be used for any other purpose including,
8but not limited to, reimbursement of administration fees due
9the administrative service organization pursuant to its
10contract or contracts with the Department.
11    (g) Contract for benefits. The Director shall by contract,
12self-insurance, or otherwise make available the program of
13health benefits for TRS benefit recipients and their TRS
14dependent beneficiaries that is provided for in this Section.
15The contract or other arrangement for the provision of these
16health benefits shall be on terms deemed by the Director to be
17in the best interest of the State of Illinois and the TRS
18benefit recipients based on, but not limited to, such criteria
19as administrative cost, service capabilities of the carrier or
20other contractor, and the costs of the benefits.
21    (g-5) Committee. A Teacher Retirement Insurance Program
22Committee shall be established, to consist of 10 persons
23appointed by the Governor.
24    The Committee shall convene at least 4 times each year,
25and shall consider and make recommendations on issues
26affecting the program of health benefits provided under this

 

 

10200SB1056ham001- 115 -LRB102 04871 AMC 26537 a

1Section. Recommendations of the Committee shall be based on a
2consensus of the members of the Committee.
3    If the Teacher Health Insurance Security Fund experiences
4a deficit balance based upon the contribution and subsidy
5rates established in this Section and Section 6.6 for Fiscal
6Year 2008 or thereafter, the Committee shall make
7recommendations for adjustments to the funding sources
8established under these Sections.
9    In addition, the Committee shall identify proposed
10solutions to the funding shortfalls that are affecting the
11Teacher Health Insurance Security Fund, and it shall report
12those solutions to the Governor and the General Assembly
13within 6 months after August 15, 2011 (the effective date of
14Public Act 97-386).
15    (h) Continuation of program. It is the intention of the
16General Assembly that the program of health benefits provided
17under this Section be maintained on an ongoing, affordable
18basis.
19    The program of health benefits provided under this Section
20may be amended by the State and is not intended to be a pension
21or retirement benefit subject to protection under Article
22XIII, Section 5 of the Illinois Constitution.
23    (i) Repeal. (Blank).
24(Source: P.A. 100-1017, eff. 8-21-18; 101-483, eff. 1-1-20.)
 
25
Article 99.

 

 

 

10200SB1056ham001- 116 -LRB102 04871 AMC 26537 a

1    Section 99-90. The State Mandates Act is amended by adding
2Section 8.45 as follows:
 
3    (30 ILCS 805/8.45 new)
4    Sec. 8.45. Exempt mandate. Notwithstanding Sections 6 and
58 of this Act, no reimbursement by the State is required for
6the implementation of any mandate created by this amendatory
7Act of the 102nd General Assembly.
 
8    Section 99-99. Effective date. This Article and Articles
95, 15, 35, 50, 55, and 75 take effect upon becoming law.".