103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB2305

 

Introduced 2/14/2023, by Rep. Gregg Johnson

 

SYNOPSIS AS INTRODUCED:
 
40 ILCS 5/1-160
40 ILCS 5/14-152.1

    Amends the General Provisions and State Employee Articles of the Illinois Pension Code. Provides that a security employee of the Department of Corrections or the Department of Juvenile Justice under the Tier 2 provisions is entitled to an annuity calculated under the alternative retirement formula, in lieu of the regular or minimum retirement annuity, only if the person has withdrawn from service with not less than 20 years of eligible creditable service and has attained age 55 (instead of age 60), regardless of whether the attainment of age 55 (instead of age 60) occurs while the person is still in service. Provides that any benefit increase that results from the amendatory Act is excluded from the definition of "new benefit increase". Effective immediately.


LRB103 27600 RPS 53976 b

 

 

A BILL FOR

 

HB2305LRB103 27600 RPS 53976 b

1    AN ACT concerning public employee benefits.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Pension Code is amended by
5changing Sections 1-160 and 14-152.1 as follows:
 
6    (40 ILCS 5/1-160)
7    (Text of Section from P.A. 102-719)
8    Sec. 1-160. Provisions applicable to new hires.
9    (a) The provisions of this Section apply to a person who,
10on or after January 1, 2011, first becomes a member or a
11participant under any reciprocal retirement system or pension
12fund established under this Code, other than a retirement
13system or pension fund established under Article 2, 3, 4, 5, 6,
147, 15, or 18 of this Code, notwithstanding any other provision
15of this Code to the contrary, but do not apply to any
16self-managed plan established under this Code or to any
17participant of the retirement plan established under Section
1822-101; except that this Section applies to a person who
19elected to establish alternative credits by electing in
20writing after January 1, 2011, but before August 8, 2011,
21under Section 7-145.1 of this Code. Notwithstanding anything
22to the contrary in this Section, for purposes of this Section,
23a person who is a Tier 1 regular employee as defined in Section

 

 

HB2305- 2 -LRB103 27600 RPS 53976 b

17-109.4 of this Code or who participated in a retirement
2system under Article 15 prior to January 1, 2011 shall be
3deemed a person who first became a member or participant prior
4to January 1, 2011 under any retirement system or pension fund
5subject to this Section. The changes made to this Section by
6Public Act 98-596 are a clarification of existing law and are
7intended to be retroactive to January 1, 2011 (the effective
8date of Public Act 96-889), notwithstanding the provisions of
9Section 1-103.1 of this Code.
10    This Section does not apply to a person who first becomes a
11noncovered employee under Article 14 on or after the
12implementation date of the plan created under Section 1-161
13for that Article, unless that person elects under subsection
14(b) of Section 1-161 to instead receive the benefits provided
15under this Section and the applicable provisions of that
16Article.
17    This Section does not apply to a person who first becomes a
18member or participant under Article 16 on or after the
19implementation date of the plan created under Section 1-161
20for that Article, unless that person elects under subsection
21(b) of Section 1-161 to instead receive the benefits provided
22under this Section and the applicable provisions of that
23Article.
24    This Section does not apply to a person who elects under
25subsection (c-5) of Section 1-161 to receive the benefits
26under Section 1-161.

 

 

HB2305- 3 -LRB103 27600 RPS 53976 b

1    This Section does not apply to a person who first becomes a
2member or participant of an affected pension fund on or after 6
3months after the resolution or ordinance date, as defined in
4Section 1-162, unless that person elects under subsection (c)
5of Section 1-162 to receive the benefits provided under this
6Section and the applicable provisions of the Article under
7which he or she is a member or participant.
8    (b) "Final average salary" means, except as otherwise
9provided in this subsection, the average monthly (or annual)
10salary obtained by dividing the total salary or earnings
11calculated under the Article applicable to the member or
12participant during the 96 consecutive months (or 8 consecutive
13years) of service within the last 120 months (or 10 years) of
14service in which the total salary or earnings calculated under
15the applicable Article was the highest by the number of months
16(or years) of service in that period. For the purposes of a
17person who first becomes a member or participant of any
18retirement system or pension fund to which this Section
19applies on or after January 1, 2011, in this Code, "final
20average salary" shall be substituted for the following:
21        (1) (Blank).
22        (2) In Articles 8, 9, 10, 11, and 12, "highest average
23    annual salary for any 4 consecutive years within the last
24    10 years of service immediately preceding the date of
25    withdrawal".
26        (3) In Article 13, "average final salary".

 

 

HB2305- 4 -LRB103 27600 RPS 53976 b

1        (4) In Article 14, "final average compensation".
2        (5) In Article 17, "average salary".
3        (6) In Section 22-207, "wages or salary received by
4    him at the date of retirement or discharge".
5    A member of the Teachers' Retirement System of the State
6of Illinois who retires on or after June 1, 2021 and for whom
7the 2020-2021 school year is used in the calculation of the
8member's final average salary shall use the higher of the
9following for the purpose of determining the member's final
10average salary:
11        (A) the amount otherwise calculated under the first
12    paragraph of this subsection; or
13        (B) an amount calculated by the Teachers' Retirement
14    System of the State of Illinois using the average of the
15    monthly (or annual) salary obtained by dividing the total
16    salary or earnings calculated under Article 16 applicable
17    to the member or participant during the 96 months (or 8
18    years) of service within the last 120 months (or 10 years)
19    of service in which the total salary or earnings
20    calculated under the Article was the highest by the number
21    of months (or years) of service in that period.
22    (b-5) Beginning on January 1, 2011, for all purposes under
23this Code (including without limitation the calculation of
24benefits and employee contributions), the annual earnings,
25salary, or wages (based on the plan year) of a member or
26participant to whom this Section applies shall not exceed

 

 

HB2305- 5 -LRB103 27600 RPS 53976 b

1$106,800; however, that amount shall annually thereafter be
2increased by the lesser of (i) 3% of that amount, including all
3previous adjustments, or (ii) one-half the annual unadjusted
4percentage increase (but not less than zero) in the consumer
5price index-u for the 12 months ending with the September
6preceding each November 1, including all previous adjustments.
7    For the purposes of this Section, "consumer price index-u"
8means the index published by the Bureau of Labor Statistics of
9the United States Department of Labor that measures the
10average change in prices of goods and services purchased by
11all urban consumers, United States city average, all items,
121982-84 = 100. The new amount resulting from each annual
13adjustment shall be determined by the Public Pension Division
14of the Department of Insurance and made available to the
15boards of the retirement systems and pension funds by November
161 of each year.
17    (c) A member or participant is entitled to a retirement
18annuity upon written application if he or she has attained age
1967 (age 65, with respect to service under Article 12 that is
20subject to this Section, for a member or participant under
21Article 12 who first becomes a member or participant under
22Article 12 on or after January 1, 2022 or who makes the
23election under item (i) of subsection (d-15) of this Section)
24and has at least 10 years of service credit and is otherwise
25eligible under the requirements of the applicable Article.
26    A member or participant who has attained age 62 (age 60,

 

 

HB2305- 6 -LRB103 27600 RPS 53976 b

1with respect to service under Article 12 that is subject to
2this Section, for a member or participant under Article 12 who
3first becomes a member or participant under Article 12 on or
4after January 1, 2022 or who makes the election under item (i)
5of subsection (d-15) of this Section) and has at least 10 years
6of service credit and is otherwise eligible under the
7requirements of the applicable Article may elect to receive
8the lower retirement annuity provided in subsection (d) of
9this Section.
10    (c-5) A person who first becomes a member or a participant
11subject to this Section on or after July 6, 2017 (the effective
12date of Public Act 100-23), notwithstanding any other
13provision of this Code to the contrary, is entitled to a
14retirement annuity under Article 8 or Article 11 upon written
15application if he or she has attained age 65 and has at least
1610 years of service credit and is otherwise eligible under the
17requirements of Article 8 or Article 11 of this Code,
18whichever is applicable.
19    (d) The retirement annuity of a member or participant who
20is retiring after attaining age 62 (age 60, with respect to
21service under Article 12 that is subject to this Section, for a
22member or participant under Article 12 who first becomes a
23member or participant under Article 12 on or after January 1,
242022 or who makes the election under item (i) of subsection
25(d-15) of this Section) with at least 10 years of service
26credit shall be reduced by one-half of 1% for each full month

 

 

HB2305- 7 -LRB103 27600 RPS 53976 b

1that the member's age is under age 67 (age 65, with respect to
2service under Article 12 that is subject to this Section, for a
3member or participant under Article 12 who first becomes a
4member or participant under Article 12 on or after January 1,
52022 or who makes the election under item (i) of subsection
6(d-15) of this Section).
7    (d-5) The retirement annuity payable under Article 8 or
8Article 11 to an eligible person subject to subsection (c-5)
9of this Section who is retiring at age 60 with at least 10
10years of service credit shall be reduced by one-half of 1% for
11each full month that the member's age is under age 65.
12    (d-10) Each person who first became a member or
13participant under Article 8 or Article 11 of this Code on or
14after January 1, 2011 and prior to July 6, 2017 (the effective
15date of Public Act 100-23) shall make an irrevocable election
16either:
17        (i) to be eligible for the reduced retirement age
18    provided in subsections (c-5) and (d-5) of this Section,
19    the eligibility for which is conditioned upon the member
20    or participant agreeing to the increases in employee
21    contributions for age and service annuities provided in
22    subsection (a-5) of Section 8-174 of this Code (for
23    service under Article 8) or subsection (a-5) of Section
24    11-170 of this Code (for service under Article 11); or
25        (ii) to not agree to item (i) of this subsection
26    (d-10), in which case the member or participant shall

 

 

HB2305- 8 -LRB103 27600 RPS 53976 b

1    continue to be subject to the retirement age provisions in
2    subsections (c) and (d) of this Section and the employee
3    contributions for age and service annuity as provided in
4    subsection (a) of Section 8-174 of this Code (for service
5    under Article 8) or subsection (a) of Section 11-170 of
6    this Code (for service under Article 11).
7    The election provided for in this subsection shall be made
8between October 1, 2017 and November 15, 2017. A person
9subject to this subsection who makes the required election
10shall remain bound by that election. A person subject to this
11subsection who fails for any reason to make the required
12election within the time specified in this subsection shall be
13deemed to have made the election under item (ii).
14    (d-15) Each person who first becomes a member or
15participant under Article 12 on or after January 1, 2011 and
16prior to January 1, 2022 shall make an irrevocable election
17either:
18        (i) to be eligible for the reduced retirement age
19    specified in subsections (c) and (d) of this Section, the
20    eligibility for which is conditioned upon the member or
21    participant agreeing to the increase in employee
22    contributions for service annuities specified in
23    subsection (b) of Section 12-150; or
24        (ii) to not agree to item (i) of this subsection
25    (d-15), in which case the member or participant shall not
26    be eligible for the reduced retirement age specified in

 

 

HB2305- 9 -LRB103 27600 RPS 53976 b

1    subsections (c) and (d) of this Section and shall not be
2    subject to the increase in employee contributions for
3    service annuities specified in subsection (b) of Section
4    12-150.
5    The election provided for in this subsection shall be made
6between January 1, 2022 and April 1, 2022. A person subject to
7this subsection who makes the required election shall remain
8bound by that election. A person subject to this subsection
9who fails for any reason to make the required election within
10the time specified in this subsection shall be deemed to have
11made the election under item (ii).
12    (e) Any retirement annuity or supplemental annuity shall
13be subject to annual increases on the January 1 occurring
14either on or after the attainment of age 67 (age 65, with
15respect to service under Article 12 that is subject to this
16Section, for a member or participant under Article 12 who
17first becomes a member or participant under Article 12 on or
18after January 1, 2022 or who makes the election under item (i)
19of subsection (d-15); and beginning on July 6, 2017 (the
20effective date of Public Act 100-23), age 65 with respect to
21service under Article 8 or Article 11 for eligible persons
22who: (i) are subject to subsection (c-5) of this Section; or
23(ii) made the election under item (i) of subsection (d-10) of
24this Section) or the first anniversary of the annuity start
25date, whichever is later. Each annual increase shall be
26calculated at 3% or one-half the annual unadjusted percentage

 

 

HB2305- 10 -LRB103 27600 RPS 53976 b

1increase (but not less than zero) in the consumer price
2index-u for the 12 months ending with the September preceding
3each November 1, whichever is less, of the originally granted
4retirement annuity. If the annual unadjusted percentage change
5in the consumer price index-u for the 12 months ending with the
6September preceding each November 1 is zero or there is a
7decrease, then the annuity shall not be increased.
8    For the purposes of Section 1-103.1 of this Code, the
9changes made to this Section by Public Act 102-263 are
10applicable without regard to whether the employee was in
11active service on or after August 6, 2021 (the effective date
12of Public Act 102-263).
13    For the purposes of Section 1-103.1 of this Code, the
14changes made to this Section by Public Act 100-23 are
15applicable without regard to whether the employee was in
16active service on or after July 6, 2017 (the effective date of
17Public Act 100-23).
18    (f) The initial survivor's or widow's annuity of an
19otherwise eligible survivor or widow of a retired member or
20participant who first became a member or participant on or
21after January 1, 2011 shall be in the amount of 66 2/3% of the
22retired member's or participant's retirement annuity at the
23date of death. In the case of the death of a member or
24participant who has not retired and who first became a member
25or participant on or after January 1, 2011, eligibility for a
26survivor's or widow's annuity shall be determined by the

 

 

HB2305- 11 -LRB103 27600 RPS 53976 b

1applicable Article of this Code. The initial benefit shall be
266 2/3% of the earned annuity without a reduction due to age. A
3child's annuity of an otherwise eligible child shall be in the
4amount prescribed under each Article if applicable. Any
5survivor's or widow's annuity shall be increased (1) on each
6January 1 occurring on or after the commencement of the
7annuity if the deceased member died while receiving a
8retirement annuity or (2) in other cases, on each January 1
9occurring after the first anniversary of the commencement of
10the annuity. 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 survivor's 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    (g) The benefits in Section 14-110 apply if the person is a
20fire fighter in the fire protection service of a department, a
21security employee of the Department of Corrections or the
22Department of Juvenile Justice, or a security employee of the
23Department of Innovation and Technology, as those terms are
24defined in subsection (b) and subsection (c) of Section
2514-110. A person who meets the requirements of this Section is
26entitled to an annuity calculated under the provisions of

 

 

HB2305- 12 -LRB103 27600 RPS 53976 b

1Section 14-110, in lieu of the regular or minimum retirement
2annuity, only if the person has withdrawn from service with
3not less than 20 years of eligible creditable service and has
4attained age 60, regardless of whether the attainment of age
560 occurs while the person is still in service.
6    (g-1) The benefits in Section 14-110 apply if the person
7is a security employee of the Department of Corrections or the
8Department of Juvenile Justice, as those terms are defined in
9subsection (b) and subsection (c) of Section 14-110. A person
10who meets the requirements of this Section is entitled to an
11annuity calculated under the provisions of Section 14-110, in
12lieu of the regular or minimum retirement annuity, only if the
13person has withdrawn from service with not less than 20 years
14of eligible creditable service and has attained age 55,
15regardless of whether the attainment of age 55 occurs while
16the person is still in service.
17    (g-5) The benefits in Section 14-110 apply if the person
18is a State policeman, investigator for the Secretary of State,
19conservation police officer, investigator for the Department
20of Revenue or the Illinois Gaming Board, investigator for the
21Office of the Attorney General, Commerce Commission police
22officer, or arson investigator, as those terms are defined in
23subsection (b) and subsection (c) of Section 14-110. A person
24who meets the requirements of this Section is entitled to an
25annuity calculated under the provisions of Section 14-110, in
26lieu of the regular or minimum retirement annuity, only if the

 

 

HB2305- 13 -LRB103 27600 RPS 53976 b

1person has withdrawn from service with not less than 20 years
2of eligible creditable service and has attained age 55,
3regardless of whether the attainment of age 55 occurs while
4the person is still in service.
5    (h) If a person who first becomes a member or a participant
6of a retirement system or pension fund subject to this Section
7on or after January 1, 2011 is receiving a retirement annuity
8or retirement pension under that system or fund and becomes a
9member or participant under any other system or fund created
10by this Code and is employed on a full-time basis, except for
11those members or participants exempted from the provisions of
12this Section under subsection (a) of this Section, then the
13person's retirement annuity or retirement pension under that
14system or fund shall be suspended during that employment. Upon
15termination of that employment, the person's retirement
16annuity or retirement pension payments shall resume and be
17recalculated if recalculation is provided for under the
18applicable Article of this Code.
19    If a person who first becomes a member of a retirement
20system or pension fund subject to this Section on or after
21January 1, 2012 and is receiving a retirement annuity or
22retirement pension under that system or fund and accepts on a
23contractual basis a position to provide services to a
24governmental entity from which he or she has retired, then
25that person's annuity or retirement pension earned as an
26active employee of the employer shall be suspended during that

 

 

HB2305- 14 -LRB103 27600 RPS 53976 b

1contractual service. A person receiving an annuity or
2retirement pension under this Code shall notify the pension
3fund or retirement system from which he or she is receiving an
4annuity or retirement pension, as well as his or her
5contractual employer, of his or her retirement status before
6accepting contractual employment. A person who fails to submit
7such notification shall be guilty of a Class A misdemeanor and
8required to pay a fine of $1,000. Upon termination of that
9contractual employment, the person's retirement annuity or
10retirement pension payments shall resume and, if appropriate,
11be recalculated under the applicable provisions of this Code.
12    (i) (Blank).
13    (j) In the case of a conflict between the provisions of
14this Section and any other provision of this Code, the
15provisions of this Section shall control.
16(Source: P.A. 101-610, eff. 1-1-20; 102-16, eff. 6-17-21;
17102-210, eff. 1-1-22; 102-263, eff. 8-6-21; 102-719, eff.
185-6-22.)
 
19    (Text of Section from P.A. 102-813)
20    Sec. 1-160. Provisions applicable to new hires.
21    (a) The provisions of this Section apply to a person who,
22on or after January 1, 2011, first becomes a member or a
23participant under any reciprocal retirement system or pension
24fund established under this Code, other than a retirement
25system or pension fund established under Article 2, 3, 4, 5, 6,

 

 

HB2305- 15 -LRB103 27600 RPS 53976 b

17, 15, or 18 of this Code, notwithstanding any other provision
2of this Code to the contrary, but do not apply to any
3self-managed plan established under this Code or to any
4participant of the retirement plan established under Section
522-101; except that this Section applies to a person who
6elected to establish alternative credits by electing in
7writing after January 1, 2011, but before August 8, 2011,
8under Section 7-145.1 of this Code. Notwithstanding anything
9to the contrary in this Section, for purposes of this Section,
10a person who is a Tier 1 regular employee as defined in Section
117-109.4 of this Code or who participated in a retirement
12system under Article 15 prior to January 1, 2011 shall be
13deemed a person who first became a member or participant prior
14to January 1, 2011 under any retirement system or pension fund
15subject to this Section. The changes made to this Section by
16Public Act 98-596 are a clarification of existing law and are
17intended to be retroactive to January 1, 2011 (the effective
18date of Public Act 96-889), notwithstanding the provisions of
19Section 1-103.1 of this Code.
20    This Section does not apply to a person who first becomes a
21noncovered employee under Article 14 on or after the
22implementation date of the plan created under Section 1-161
23for that Article, unless that person elects under subsection
24(b) of Section 1-161 to instead receive the benefits provided
25under this Section and the applicable provisions of that
26Article.

 

 

HB2305- 16 -LRB103 27600 RPS 53976 b

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

 

 

HB2305- 17 -LRB103 27600 RPS 53976 b

1person who first becomes a member or participant of any
2retirement system or pension fund to which this Section
3applies on or after January 1, 2011, in this Code, "final
4average salary" shall be substituted for the following:
5        (1) (Blank).
6        (2) In Articles 8, 9, 10, 11, and 12, "highest average
7    annual salary for any 4 consecutive years within the last
8    10 years of service immediately preceding the date of
9    withdrawal".
10        (3) In Article 13, "average final salary".
11        (4) In Article 14, "final average compensation".
12        (5) In Article 17, "average salary".
13        (6) In Section 22-207, "wages or salary received by
14    him at the date of retirement or discharge".
15    A member of the Teachers' Retirement System of the State
16of Illinois who retires on or after June 1, 2021 and for whom
17the 2020-2021 school year is used in the calculation of the
18member's final average salary shall use the higher of the
19following for the purpose of determining the member's final
20average salary:
21        (A) the amount otherwise calculated under the first
22    paragraph of this subsection; or
23        (B) an amount calculated by the Teachers' Retirement
24    System of the State of Illinois using the average of the
25    monthly (or annual) salary obtained by dividing the total
26    salary or earnings calculated under Article 16 applicable

 

 

HB2305- 18 -LRB103 27600 RPS 53976 b

1    to the member or participant during the 96 months (or 8
2    years) of service within the last 120 months (or 10 years)
3    of service in which the total salary or earnings
4    calculated under the Article was the highest by the number
5    of months (or years) of service in that period.
6    (b-5) Beginning on January 1, 2011, for all purposes under
7this Code (including without limitation the calculation of
8benefits and employee contributions), the annual earnings,
9salary, or wages (based on the plan year) of a member or
10participant to whom this Section applies shall not exceed
11$106,800; however, that amount shall annually thereafter be
12increased by the lesser of (i) 3% of that amount, including all
13previous adjustments, or (ii) one-half the annual unadjusted
14percentage increase (but not less than zero) in the consumer
15price index-u for the 12 months ending with the September
16preceding each November 1, including all previous adjustments.
17    For the purposes of this Section, "consumer price index-u"
18means the index published by the Bureau of Labor Statistics of
19the United States Department of Labor that measures the
20average change in prices of goods and services purchased by
21all urban consumers, United States city average, all items,
221982-84 = 100. The new amount resulting from each annual
23adjustment shall be determined by the Public Pension Division
24of the Department of Insurance and made available to the
25boards of the retirement systems and pension funds by November
261 of each year.

 

 

HB2305- 19 -LRB103 27600 RPS 53976 b

1    (c) A member or participant is entitled to a retirement
2annuity upon written application if he or she has attained age
367 (age 65, with respect to service under Article 12 that is
4subject to this Section, for a member or participant under
5Article 12 who first becomes a member or participant under
6Article 12 on or after January 1, 2022 or who makes the
7election under item (i) of subsection (d-15) of this Section)
8and has at least 10 years of service credit and is otherwise
9eligible under the requirements of the applicable Article.
10    A member or participant who has attained age 62 (age 60,
11with respect to service under Article 12 that is subject to
12this Section, for a member or participant under Article 12 who
13first becomes a member or participant under Article 12 on or
14after January 1, 2022 or who makes the election under item (i)
15of subsection (d-15) of this Section) and has at least 10 years
16of service credit and is otherwise eligible under the
17requirements of the applicable Article may elect to receive
18the lower retirement annuity provided in subsection (d) of
19this Section.
20    (c-5) A person who first becomes a member or a participant
21subject to this Section on or after July 6, 2017 (the effective
22date of Public Act 100-23), notwithstanding any other
23provision of this Code to the contrary, is entitled to a
24retirement annuity under Article 8 or Article 11 upon written
25application if he or she has attained age 65 and has at least
2610 years of service credit and is otherwise eligible under the

 

 

HB2305- 20 -LRB103 27600 RPS 53976 b

1requirements of Article 8 or Article 11 of this Code,
2whichever is applicable.
3    (d) The retirement annuity of a member or participant who
4is retiring after attaining age 62 (age 60, with respect to
5service under Article 12 that is subject to this Section, for a
6member or participant under Article 12 who first becomes a
7member or participant under Article 12 on or after January 1,
82022 or who makes the election under item (i) of subsection
9(d-15) of this Section) with at least 10 years of service
10credit shall be reduced by one-half of 1% for each full month
11that the member's age is under age 67 (age 65, with respect to
12service under Article 12 that is subject to this Section, for a
13member or participant under Article 12 who first becomes a
14member or participant under Article 12 on or after January 1,
152022 or who makes the election under item (i) of subsection
16(d-15) of this Section).
17    (d-5) The retirement annuity payable under Article 8 or
18Article 11 to an eligible person subject to subsection (c-5)
19of this Section who is retiring at age 60 with at least 10
20years of service credit shall be reduced by one-half of 1% for
21each full month that the member's age is under age 65.
22    (d-10) Each person who first became a member or
23participant under Article 8 or Article 11 of this Code on or
24after January 1, 2011 and prior to July 6, 2017 (the effective
25date of Public Act 100-23) shall make an irrevocable election
26either:

 

 

HB2305- 21 -LRB103 27600 RPS 53976 b

1        (i) to be eligible for the reduced retirement age
2    provided in subsections (c-5) and (d-5) of this Section,
3    the eligibility for which is conditioned upon the member
4    or participant agreeing to the increases in employee
5    contributions for age and service annuities provided in
6    subsection (a-5) of Section 8-174 of this Code (for
7    service under Article 8) or subsection (a-5) of Section
8    11-170 of this Code (for service under Article 11); or
9        (ii) to not agree to item (i) of this subsection
10    (d-10), in which case the member or participant shall
11    continue to be subject to the retirement age provisions in
12    subsections (c) and (d) of this Section and the employee
13    contributions for age and service annuity as provided in
14    subsection (a) of Section 8-174 of this Code (for service
15    under Article 8) or subsection (a) of Section 11-170 of
16    this Code (for service under Article 11).
17    The election provided for in this subsection shall be made
18between October 1, 2017 and November 15, 2017. A person
19subject to this subsection who makes the required election
20shall remain bound by that election. A person subject to this
21subsection who fails for any reason to make the required
22election within the time specified in this subsection shall be
23deemed to have made the election under item (ii).
24    (d-15) Each person who first becomes a member or
25participant under Article 12 on or after January 1, 2011 and
26prior to January 1, 2022 shall make an irrevocable election

 

 

HB2305- 22 -LRB103 27600 RPS 53976 b

1either:
2        (i) to be eligible for the reduced retirement age
3    specified in subsections (c) and (d) of this Section, the
4    eligibility for which is conditioned upon the member or
5    participant agreeing to the increase in employee
6    contributions for service annuities specified in
7    subsection (b) of Section 12-150; or
8        (ii) to not agree to item (i) of this subsection
9    (d-15), in which case the member or participant shall not
10    be eligible for the reduced retirement age specified in
11    subsections (c) and (d) of this Section and shall not be
12    subject to the increase in employee contributions for
13    service annuities specified in subsection (b) of Section
14    12-150.
15    The election provided for in this subsection shall be made
16between January 1, 2022 and April 1, 2022. A person subject to
17this subsection who makes the required election shall remain
18bound by that election. A person subject to this subsection
19who fails for any reason to make the required election within
20the time specified in this subsection shall be deemed to have
21made the election under item (ii).
22    (e) Any retirement annuity or supplemental annuity shall
23be subject to annual increases on the January 1 occurring
24either on or after the attainment of age 67 (age 65, with
25respect to service under Article 12 that is subject to this
26Section, for a member or participant under Article 12 who

 

 

HB2305- 23 -LRB103 27600 RPS 53976 b

1first becomes a member or participant under Article 12 on or
2after January 1, 2022 or who makes the election under item (i)
3of subsection (d-15); and beginning on July 6, 2017 (the
4effective date of Public Act 100-23), age 65 with respect to
5service under Article 8 or Article 11 for eligible persons
6who: (i) are subject to subsection (c-5) of this Section; or
7(ii) made the election under item (i) of subsection (d-10) of
8this Section) or the first anniversary of the annuity start
9date, whichever is later. Each annual increase shall be
10calculated at 3% or one-half the annual unadjusted percentage
11increase (but not less than zero) in the consumer price
12index-u for the 12 months ending with the September preceding
13each November 1, whichever is less, of the originally granted
14retirement annuity. If the annual unadjusted percentage change
15in the consumer price index-u for the 12 months ending with the
16September preceding each November 1 is zero or there is a
17decrease, then the annuity shall not be increased.
18    For the purposes of Section 1-103.1 of this Code, the
19changes made to this Section by Public Act 102-263 are
20applicable without regard to whether the employee was in
21active service on or after August 6, 2021 (the effective date
22of Public Act 102-263).
23    For the purposes of Section 1-103.1 of this Code, the
24changes made to this Section by Public Act 100-23 are
25applicable without regard to whether the employee was in
26active service on or after July 6, 2017 (the effective date of

 

 

HB2305- 24 -LRB103 27600 RPS 53976 b

1Public Act 100-23).
2    (f) The initial survivor's or widow's annuity of an
3otherwise eligible survivor or widow of a retired member or
4participant who first became a member or participant on or
5after January 1, 2011 shall be in the amount of 66 2/3% of the
6retired member's or participant's retirement annuity at the
7date of death. In the case of the death of a member or
8participant who has not retired and who first became a member
9or participant on or after January 1, 2011, eligibility for a
10survivor's or widow's annuity shall be determined by the
11applicable Article of this Code. The initial benefit shall be
1266 2/3% of the earned annuity without a reduction due to age. A
13child's annuity of an otherwise eligible child shall be in the
14amount prescribed under each Article if applicable. Any
15survivor's or widow's annuity shall be increased (1) on each
16January 1 occurring on or after the commencement of the
17annuity if the deceased member died while receiving a
18retirement annuity or (2) in other cases, on each January 1
19occurring after the first anniversary of the commencement of
20the annuity. Each annual increase shall be calculated at 3% or
21one-half the annual unadjusted percentage increase (but not
22less than zero) in the consumer price index-u for the 12 months
23ending with the September preceding each November 1, whichever
24is less, of the originally granted survivor's annuity. If the
25annual unadjusted percentage change in the consumer price
26index-u for the 12 months ending with the September preceding

 

 

HB2305- 25 -LRB103 27600 RPS 53976 b

1each November 1 is zero or there is a decrease, then the
2annuity shall not be increased.
3    (g) The benefits in Section 14-110 apply only if the
4person is a State policeman, a fire fighter in the fire
5protection service of a department, a conservation police
6officer, an investigator for the Secretary of State, an arson
7investigator, a Commerce Commission police officer,
8investigator for the Department of Revenue or the Illinois
9Gaming Board, a security employee of the Department of
10Corrections or the Department of Juvenile Justice, or a
11security employee of the Department of Innovation and
12Technology, as those terms are defined in subsection (b) and
13subsection (c) of Section 14-110. A person who meets the
14requirements of this Section is entitled to an annuity
15calculated under the provisions of Section 14-110, in lieu of
16the regular or minimum retirement annuity, only if the person
17has withdrawn from service with not less than 20 years of
18eligible creditable service and has attained age 60,
19regardless of whether the attainment of age 60 occurs while
20the person is still in service.
21    (g-1) The benefits in Section 14-110 apply if the person
22is a security employee of the Department of Corrections or the
23Department of Juvenile Justice, as those terms are defined in
24subsection (b) and subsection (c) of Section 14-110. A person
25who meets the requirements of this Section is entitled to an
26annuity calculated under the provisions of Section 14-110, in

 

 

HB2305- 26 -LRB103 27600 RPS 53976 b

1lieu of the regular or minimum retirement annuity, only if the
2person has withdrawn from service with not less than 20 years
3of eligible creditable service and has attained age 55,
4regardless of whether the attainment of age 55 occurs while
5the person is still in service.
6    (h) If a person who first becomes a member or a participant
7of a retirement system or pension fund subject to this Section
8on or after January 1, 2011 is receiving a retirement annuity
9or retirement pension under that system or fund and becomes a
10member or participant under any other system or fund created
11by this Code and is employed on a full-time basis, except for
12those members or participants exempted from the provisions of
13this Section under subsection (a) of this Section, then the
14person's retirement annuity or retirement pension under that
15system or fund shall be suspended during that employment. Upon
16termination of that employment, the person's retirement
17annuity or retirement pension payments shall resume and be
18recalculated if recalculation is provided for under the
19applicable Article of this Code.
20    If a person who first becomes a member of a retirement
21system or pension fund subject to this Section on or after
22January 1, 2012 and is receiving a retirement annuity or
23retirement pension under that system or fund and accepts on a
24contractual basis a position to provide services to a
25governmental entity from which he or she has retired, then
26that person's annuity or retirement pension earned as an

 

 

HB2305- 27 -LRB103 27600 RPS 53976 b

1active employee of the employer shall be suspended during that
2contractual service. A person receiving an annuity or
3retirement pension under this Code shall notify the pension
4fund or retirement system from which he or she is receiving an
5annuity or retirement pension, as well as his or her
6contractual employer, of his or her retirement status before
7accepting contractual employment. A person who fails to submit
8such notification shall be guilty of a Class A misdemeanor and
9required to pay a fine of $1,000. Upon termination of that
10contractual employment, the person's retirement annuity or
11retirement pension payments shall resume and, if appropriate,
12be recalculated under the applicable provisions of this Code.
13    (i) (Blank).
14    (j) In the case of a conflict between the provisions of
15this Section and any other provision of this Code, the
16provisions of this Section shall control.
17(Source: P.A. 101-610, eff. 1-1-20; 102-16, eff. 6-17-21;
18102-210, eff. 1-1-22; 102-263, eff. 8-6-21; 102-813, eff.
195-13-22.)
 
20    (Text of Section from P.A. 102-956)
21    Sec. 1-160. Provisions applicable to new hires.
22    (a) The provisions of this Section apply to a person who,
23on or after January 1, 2011, first becomes a member or a
24participant under any reciprocal retirement system or pension
25fund established under this Code, other than a retirement

 

 

HB2305- 28 -LRB103 27600 RPS 53976 b

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 or to any
5participant of the retirement plan established under Section
622-101; except that this Section applies to a person who
7elected to establish alternative credits by electing in
8writing after January 1, 2011, but before August 8, 2011,
9under Section 7-145.1 of this Code. Notwithstanding anything
10to the contrary in this Section, for purposes of this Section,
11a person who is a Tier 1 regular employee as defined in Section
127-109.4 of this Code or who participated in a retirement
13system under Article 15 prior to January 1, 2011 shall be
14deemed a person who first became a member or participant prior
15to January 1, 2011 under any retirement system or pension fund
16subject to this Section. The changes made to this Section by
17Public Act 98-596 are a clarification of existing law and are
18intended to be retroactive to January 1, 2011 (the effective
19date of Public Act 96-889), notwithstanding the provisions of
20Section 1-103.1 of this Code.
21    This Section does not apply to a person who first becomes a
22noncovered employee under Article 14 on or after the
23implementation date of the plan created under Section 1-161
24for that Article, unless that person elects under subsection
25(b) of Section 1-161 to instead receive the benefits provided
26under this Section and the applicable provisions of that

 

 

HB2305- 29 -LRB103 27600 RPS 53976 b

1Article.
2    This Section does not apply to a person who first becomes a
3member or participant under Article 16 on or after the
4implementation date of the plan created under Section 1-161
5for that Article, unless that person elects under subsection
6(b) of Section 1-161 to instead receive the benefits provided
7under this Section and the applicable provisions of that
8Article.
9    This Section does not apply to a person who elects under
10subsection (c-5) of Section 1-161 to receive the benefits
11under Section 1-161.
12    This Section does not apply to a person who first becomes a
13member or participant of an affected pension fund on or after 6
14months after the resolution or ordinance date, as defined in
15Section 1-162, unless that person elects under subsection (c)
16of Section 1-162 to receive the benefits provided under this
17Section and the applicable provisions of the Article under
18which he or she is a member or participant.
19    (b) "Final average salary" means, except as otherwise
20provided in this subsection, the average monthly (or annual)
21salary obtained by dividing the total salary or earnings
22calculated under the Article applicable to the member or
23participant during the 96 consecutive months (or 8 consecutive
24years) of service within the last 120 months (or 10 years) of
25service in which the total salary or earnings calculated under
26the applicable Article was the highest by the number of months

 

 

HB2305- 30 -LRB103 27600 RPS 53976 b

1(or years) of service in that period. For the purposes of a
2person who first becomes a member or participant of any
3retirement system or pension fund to which this Section
4applies on or after January 1, 2011, in this Code, "final
5average salary" shall be substituted for the following:
6        (1) (Blank).
7        (2) In Articles 8, 9, 10, 11, and 12, "highest average
8    annual salary for any 4 consecutive years within the last
9    10 years of service immediately preceding the date of
10    withdrawal".
11        (3) In Article 13, "average final salary".
12        (4) In Article 14, "final average compensation".
13        (5) In Article 17, "average salary".
14        (6) In Section 22-207, "wages or salary received by
15    him at the date of retirement or discharge".
16    A member of the Teachers' Retirement System of the State
17of Illinois who retires on or after June 1, 2021 and for whom
18the 2020-2021 school year is used in the calculation of the
19member's final average salary shall use the higher of the
20following for the purpose of determining the member's final
21average salary:
22        (A) the amount otherwise calculated under the first
23    paragraph of this subsection; or
24        (B) an amount calculated by the Teachers' Retirement
25    System of the State of Illinois using the average of the
26    monthly (or annual) salary obtained by dividing the total

 

 

HB2305- 31 -LRB103 27600 RPS 53976 b

1    salary or earnings calculated under Article 16 applicable
2    to the member or participant during the 96 months (or 8
3    years) of service within the last 120 months (or 10 years)
4    of service in which the total salary or earnings
5    calculated under the Article was the highest by the number
6    of months (or years) of service in that period.
7    (b-5) Beginning on January 1, 2011, for all purposes under
8this Code (including without limitation the calculation of
9benefits and employee contributions), the annual earnings,
10salary, or wages (based on the plan year) of a member or
11participant to whom this Section applies shall not exceed
12$106,800; however, that amount shall annually thereafter be
13increased by the lesser of (i) 3% of that amount, including all
14previous adjustments, or (ii) one-half the annual unadjusted
15percentage increase (but not less than zero) in the consumer
16price index-u for the 12 months ending with the September
17preceding each November 1, including all previous adjustments.
18    For the purposes of this Section, "consumer price index-u"
19means the index published by the Bureau of Labor Statistics of
20the United States Department of Labor that measures the
21average change in prices of goods and services purchased by
22all urban consumers, United States city average, all items,
231982-84 = 100. The new amount resulting from each annual
24adjustment shall be determined by the Public Pension Division
25of the Department of Insurance and made available to the
26boards of the retirement systems and pension funds by November

 

 

HB2305- 32 -LRB103 27600 RPS 53976 b

11 of each year.
2    (c) A member or participant is entitled to a retirement
3annuity upon written application if he or she has attained age
467 (age 65, with respect to service under Article 12 that is
5subject to this Section, for a member or participant under
6Article 12 who first becomes a member or participant under
7Article 12 on or after January 1, 2022 or who makes the
8election under item (i) of subsection (d-15) of this Section)
9and has at least 10 years of service credit and is otherwise
10eligible under the requirements of the applicable Article.
11    A member or participant who has attained age 62 (age 60,
12with respect to service under Article 12 that is subject to
13this Section, for a member or participant under Article 12 who
14first becomes a member or participant under Article 12 on or
15after January 1, 2022 or who makes the election under item (i)
16of subsection (d-15) of this Section) and has at least 10 years
17of service credit and is otherwise eligible under the
18requirements of the applicable Article may elect to receive
19the lower retirement annuity provided in subsection (d) of
20this Section.
21    (c-5) A person who first becomes a member or a participant
22subject to this Section on or after July 6, 2017 (the effective
23date of Public Act 100-23), notwithstanding any other
24provision of this Code to the contrary, is entitled to a
25retirement annuity under Article 8 or Article 11 upon written
26application if he or she has attained age 65 and has at least

 

 

HB2305- 33 -LRB103 27600 RPS 53976 b

110 years of service credit and is otherwise eligible under the
2requirements of Article 8 or Article 11 of this Code,
3whichever is applicable.
4    (d) The retirement annuity of a member or participant who
5is retiring after attaining age 62 (age 60, with respect to
6service under Article 12 that is subject to this Section, for a
7member or participant under Article 12 who first becomes a
8member or participant under Article 12 on or after January 1,
92022 or who makes the election under item (i) of subsection
10(d-15) of this Section) with at least 10 years of service
11credit shall be reduced by one-half of 1% for each full month
12that the member's age is under age 67 (age 65, with respect to
13service under Article 12 that is subject to this Section, for a
14member or participant under Article 12 who first becomes a
15member or participant under Article 12 on or after January 1,
162022 or who makes the election under item (i) of subsection
17(d-15) of 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 July 6, 2017 (the effective
26date of Public Act 100-23) shall make an irrevocable election

 

 

HB2305- 34 -LRB103 27600 RPS 53976 b

1either:
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    (d-15) Each person who first becomes a member or
26participant under Article 12 on or after January 1, 2011 and

 

 

HB2305- 35 -LRB103 27600 RPS 53976 b

1prior to January 1, 2022 shall make an irrevocable election
2either:
3        (i) to be eligible for the reduced retirement age
4    specified in subsections (c) and (d) of this Section, the
5    eligibility for which is conditioned upon the member or
6    participant agreeing to the increase in employee
7    contributions for service annuities specified in
8    subsection (b) of Section 12-150; or
9        (ii) to not agree to item (i) of this subsection
10    (d-15), in which case the member or participant shall not
11    be eligible for the reduced retirement age specified in
12    subsections (c) and (d) of this Section and shall not be
13    subject to the increase in employee contributions for
14    service annuities specified in subsection (b) of Section
15    12-150.
16    The election provided for in this subsection shall be made
17between January 1, 2022 and April 1, 2022. A person subject to
18this subsection who makes the required election shall remain
19bound by that election. A person subject to this subsection
20who fails for any reason to make the required election within
21the time specified in this subsection shall be deemed to have
22made the election under item (ii).
23    (e) Any retirement annuity or supplemental annuity shall
24be subject to annual increases on the January 1 occurring
25either on or after the attainment of age 67 (age 65, with
26respect to service under Article 12 that is subject to this

 

 

HB2305- 36 -LRB103 27600 RPS 53976 b

1Section, for a member or participant under Article 12 who
2first becomes a member or participant under Article 12 on or
3after January 1, 2022 or who makes the election under item (i)
4of subsection (d-15); and beginning on July 6, 2017 (the
5effective date of Public Act 100-23), age 65 with respect to
6service under Article 8 or Article 11 for eligible persons
7who: (i) are subject to subsection (c-5) of this Section; or
8(ii) made the election under item (i) of subsection (d-10) of
9this Section) or the first anniversary of the annuity start
10date, whichever is later. Each annual increase shall be
11calculated at 3% or one-half the annual unadjusted percentage
12increase (but not less than zero) in the consumer price
13index-u for the 12 months ending with the September preceding
14each November 1, whichever is less, of the originally granted
15retirement annuity. If the annual unadjusted percentage change
16in the consumer price index-u for the 12 months ending with the
17September preceding each November 1 is zero or there is a
18decrease, then the annuity shall not be increased.
19    For the purposes of Section 1-103.1 of this Code, the
20changes made to this Section by Public Act 102-263 are
21applicable without regard to whether the employee was in
22active service on or after August 6, 2021 (the effective date
23of Public Act 102-263).
24    For the purposes of Section 1-103.1 of this Code, the
25changes made to this Section by Public Act 100-23 are
26applicable without regard to whether the employee was in

 

 

HB2305- 37 -LRB103 27600 RPS 53976 b

1active service on or after July 6, 2017 (the effective date of
2Public Act 100-23).
3    (f) The initial survivor's or widow's annuity of an
4otherwise eligible survivor or widow of a retired member or
5participant who first became a member or participant on or
6after January 1, 2011 shall be in the amount of 66 2/3% of the
7retired member's or participant's retirement annuity at the
8date of death. In the case of the death of a member or
9participant who has not retired and who first became a member
10or participant on or after January 1, 2011, eligibility for a
11survivor's or widow's annuity shall be determined by the
12applicable Article of this Code. The initial benefit shall be
1366 2/3% of the earned annuity without a reduction due to age. A
14child's annuity of an otherwise eligible child shall be in the
15amount prescribed under each Article if applicable. Any
16survivor's or widow's annuity shall be increased (1) on each
17January 1 occurring on or after the commencement of the
18annuity if the deceased member died while receiving a
19retirement annuity or (2) in other cases, on each January 1
20occurring after the first anniversary of the commencement of
21the annuity. Each annual increase shall be calculated at 3% or
22one-half the annual unadjusted percentage increase (but not
23less than zero) in the consumer price index-u for the 12 months
24ending with the September preceding each November 1, whichever
25is less, of the originally granted survivor's annuity. If the
26annual unadjusted percentage change in the consumer price

 

 

HB2305- 38 -LRB103 27600 RPS 53976 b

1index-u for the 12 months ending with the September preceding
2each November 1 is zero or there is a decrease, then the
3annuity shall not be increased.
4    (g) The benefits in Section 14-110 apply only if the
5person is a State policeman, a fire fighter in the fire
6protection service of a department, a conservation police
7officer, an investigator for the Secretary of State, an
8investigator for the Office of the Attorney General, an arson
9investigator, a Commerce Commission police officer,
10investigator for the Department of Revenue or the Illinois
11Gaming Board, a security employee of the Department of
12Corrections or the Department of Juvenile Justice, or a
13security employee of the Department of Innovation and
14Technology, as those terms are defined in subsection (b) and
15subsection (c) of Section 14-110. A person who meets the
16requirements of this Section is entitled to an annuity
17calculated under the provisions of Section 14-110, in lieu of
18the regular or minimum retirement annuity, only if the person
19has withdrawn from service with not less than 20 years of
20eligible creditable service and has attained age 60,
21regardless of whether the attainment of age 60 occurs while
22the person is still in service.
23    (g-1) The benefits in Section 14-110 apply if the person
24is a security employee of the Department of Corrections or the
25Department of Juvenile Justice, as those terms are defined in
26subsection (b) and subsection (c) of Section 14-110. A person

 

 

HB2305- 39 -LRB103 27600 RPS 53976 b

1who meets the requirements of this Section is entitled to an
2annuity calculated under the provisions of Section 14-110, in
3lieu of the regular or minimum retirement annuity, only if the
4person has withdrawn from service with not less than 20 years
5of eligible creditable service and has attained age 55,
6regardless of whether the attainment of age 55 occurs while
7the person is still in service.
8    (h) If a person who first becomes a member or a participant
9of a retirement system or pension fund subject to this Section
10on or after January 1, 2011 is receiving a retirement annuity
11or retirement pension under that system or fund and becomes a
12member or participant under any other system or fund created
13by this Code and is employed on a full-time basis, except for
14those members or participants exempted from the provisions of
15this Section under subsection (a) of this Section, then the
16person's retirement annuity or retirement pension under that
17system or fund shall be suspended during that employment. Upon
18termination of that employment, the person's retirement
19annuity or retirement pension payments shall resume and be
20recalculated if recalculation is provided for under the
21applicable Article of this Code.
22    If a person who first becomes a member of a retirement
23system or pension fund subject to this Section on or after
24January 1, 2012 and is receiving a retirement annuity or
25retirement pension under that system or fund and accepts on a
26contractual basis a position to provide services to a

 

 

HB2305- 40 -LRB103 27600 RPS 53976 b

1governmental entity from which he or she has retired, then
2that person's annuity or retirement pension earned as an
3active employee of the employer shall be suspended during that
4contractual service. A person receiving an annuity or
5retirement pension under this Code shall notify the pension
6fund or retirement system from which he or she is receiving an
7annuity or retirement pension, as well as his or her
8contractual employer, of his or her retirement status before
9accepting contractual employment. A person who fails to submit
10such notification shall be guilty of a Class A misdemeanor and
11required to pay a fine of $1,000. Upon termination of that
12contractual employment, the person's retirement annuity or
13retirement pension payments shall resume and, if appropriate,
14be recalculated under the applicable provisions of this Code.
15    (i) (Blank).
16    (j) In the case of a conflict between the provisions of
17this Section and any other provision of this Code, the
18provisions of this Section shall control.
19(Source: P.A. 101-610, eff. 1-1-20; 102-16, eff. 6-17-21;
20102-210, eff. 1-1-22; 102-263, eff. 8-6-21; 102-956, eff.
215-27-22.)
 
22    (40 ILCS 5/14-152.1)
23    Sec. 14-152.1. Application and expiration of new benefit
24increases.
25    (a) As used in this Section, "new benefit increase" means

 

 

HB2305- 41 -LRB103 27600 RPS 53976 b

1an increase in the amount of any benefit provided under this
2Article, or an expansion of the conditions of eligibility for
3any benefit under this Article, that results from an amendment
4to this Code that takes effect after June 1, 2005 (the
5effective date of Public Act 94-4). "New benefit increase",
6however, does not include any benefit increase resulting from
7the changes made to Article 1 or this Article by Public Act
896-37, Public Act 100-23, Public Act 100-587, Public Act
9100-611, Public Act 101-10, Public Act 101-610, Public Act
10102-210, Public Act 102-856, Public Act 102-956, or this
11amendatory Act of the 103rd General Assembly this amendatory
12Act of the 102nd General Assembly.
13    (b) Notwithstanding any other provision of this Code or
14any subsequent amendment to this Code, every new benefit
15increase is subject to this Section and shall be deemed to be
16granted only in conformance with and contingent upon
17compliance with the provisions of this Section.
18    (c) The Public Act enacting a new benefit increase must
19identify and provide for payment to the System of additional
20funding at least sufficient to fund the resulting annual
21increase in cost to the System as it accrues.
22    Every new benefit increase is contingent upon the General
23Assembly providing the additional funding required under this
24subsection. The Commission on Government Forecasting and
25Accountability shall analyze whether adequate additional
26funding has been provided for the new benefit increase and

 

 

HB2305- 42 -LRB103 27600 RPS 53976 b

1shall report its analysis to the Public Pension Division of
2the Department of Insurance. A new benefit increase created by
3a Public Act that does not include the additional funding
4required under this subsection is null and void. If the Public
5Pension Division determines that the additional funding
6provided for a new benefit increase under this subsection is
7or has become inadequate, it may so certify to the Governor and
8the State Comptroller and, in the absence of corrective action
9by the General Assembly, the new benefit increase shall expire
10at the end of the fiscal year in which the certification is
11made.
12    (d) Every new benefit increase shall expire 5 years after
13its effective date or on such earlier date as may be specified
14in the language enacting the new benefit increase or provided
15under subsection (c). This does not prevent the General
16Assembly from extending or re-creating a new benefit increase
17by law.
18    (e) Except as otherwise provided in the language creating
19the new benefit increase, a new benefit increase that expires
20under this Section continues to apply to persons who applied
21and qualified for the affected benefit while the new benefit
22increase was in effect and to the affected beneficiaries and
23alternate payees of such persons, but does not apply to any
24other person, including, without limitation, a person who
25continues in service after the expiration date and did not
26apply and qualify for the affected benefit while the new

 

 

HB2305- 43 -LRB103 27600 RPS 53976 b

1benefit increase was in effect.
2(Source: P.A. 101-10, eff. 6-5-19; 101-81, eff. 7-12-19;
3101-610, eff. 1-1-20; 102-210, eff. 7-30-21; 102-856, eff.
41-1-23; 102-956, eff. 5-27-22.)
 
5    Section 99. Effective date. This Act takes effect upon
6becoming law.