HB2352 EnrolledLRB103 27717 RPS 54094 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, 9-169, 9-179.1, 9-184, 9-185, 9-195,
6and 9-199 and by adding Sections 9-169.1, 9-169.2, and 9-240
7as follows:
 
8    (40 ILCS 5/1-160)
9    (Text of Section from P.A. 102-719)
10    Sec. 1-160. Provisions applicable to new hires.
11    (a) The provisions of this Section apply to a person who,
12on or after January 1, 2011, first becomes a member or a
13participant under any reciprocal retirement system or pension
14fund established under this Code, other than a retirement
15system or pension fund established under Article 2, 3, 4, 5, 6,
167, 15, or 18 of this Code, notwithstanding any other provision
17of this Code to the contrary, but do not apply to any
18self-managed plan established under this Code or to any
19participant of the retirement plan established under Section
2022-101; except that this Section applies to a person who
21elected to establish alternative credits by electing in
22writing after January 1, 2011, but before August 8, 2011,
23under Section 7-145.1 of this Code. Notwithstanding anything

 

 

HB2352 Enrolled- 2 -LRB103 27717 RPS 54094 b

1to the contrary in this Section, for purposes of this Section,
2a person who is a Tier 1 regular employee as defined in Section
37-109.4 of this Code or who participated in a retirement
4system under Article 15 prior to January 1, 2011 shall be
5deemed a person who first became a member or participant prior
6to January 1, 2011 under any retirement system or pension fund
7subject to this Section. The changes made to this Section by
8Public Act 98-596 are a clarification of existing law and are
9intended to be retroactive to January 1, 2011 (the effective
10date of Public Act 96-889), notwithstanding the provisions of
11Section 1-103.1 of this Code.
12    This Section does not apply to a person who first becomes a
13noncovered employee under Article 14 on or after the
14implementation date of the plan created under Section 1-161
15for that Article, unless that person elects under subsection
16(b) of Section 1-161 to instead receive the benefits provided
17under this Section and the applicable provisions of that
18Article.
19    This Section does not apply to a person who first becomes a
20member or participant under Article 16 on or after the
21implementation date of the plan created under Section 1-161
22for that Article, unless that person elects under subsection
23(b) of Section 1-161 to instead receive the benefits provided
24under this Section and the applicable provisions of that
25Article.
26    This Section does not apply to a person who elects under

 

 

HB2352 Enrolled- 3 -LRB103 27717 RPS 54094 b

1subsection (c-5) of Section 1-161 to receive the benefits
2under Section 1-161.
3    This Section does not apply to a person who first becomes a
4member or participant of an affected pension fund on or after 6
5months after the resolution or ordinance date, as defined in
6Section 1-162, unless that person elects under subsection (c)
7of Section 1-162 to receive the benefits provided under this
8Section and the applicable provisions of the Article under
9which he or she is a member or participant.
10    (b) "Final average salary" means, except as otherwise
11provided in this subsection, the average monthly (or annual)
12salary obtained by dividing the total salary or earnings
13calculated under the Article applicable to the member or
14participant during the 96 consecutive months (or 8 consecutive
15years) of service within the last 120 months (or 10 years) of
16service in which the total salary or earnings calculated under
17the applicable Article was the highest by the number of months
18(or years) of service in that period. For the purposes of a
19person who first becomes a member or participant of any
20retirement system or pension fund to which this Section
21applies on or after January 1, 2011, in this Code, "final
22average salary" shall be substituted for the following:
23        (1) (Blank).
24        (2) In Articles 8, 9, 10, 11, and 12, "highest average
25    annual salary for any 4 consecutive years within the last
26    10 years of service immediately preceding the date of

 

 

HB2352 Enrolled- 4 -LRB103 27717 RPS 54094 b

1    withdrawal".
2        (3) In Article 13, "average final salary".
3        (4) In Article 14, "final average compensation".
4        (5) In Article 17, "average salary".
5        (6) In Section 22-207, "wages or salary received by
6    him at the date of retirement or discharge".
7    A member of the Teachers' Retirement System of the State
8of Illinois who retires on or after June 1, 2021 and for whom
9the 2020-2021 school year is used in the calculation of the
10member's final average salary shall use the higher of the
11following for the purpose of determining the member's final
12average salary:
13        (A) the amount otherwise calculated under the first
14    paragraph of this subsection; or
15        (B) an amount calculated by the Teachers' Retirement
16    System of the State of Illinois using the average of the
17    monthly (or annual) salary obtained by dividing the total
18    salary or earnings calculated under Article 16 applicable
19    to the member or participant during the 96 months (or 8
20    years) of service within the last 120 months (or 10 years)
21    of service in which the total salary or earnings
22    calculated under the Article was the highest by the number
23    of months (or years) of service in that period.
24    (b-5) Beginning on January 1, 2011, for all purposes under
25this Code (including without limitation the calculation of
26benefits and employee contributions), the annual earnings,

 

 

HB2352 Enrolled- 5 -LRB103 27717 RPS 54094 b

1salary, or wages (based on the plan year) of a member or
2participant to whom this Section applies shall not exceed
3$106,800; however, that amount shall annually thereafter be
4increased by the lesser of (i) 3% of that amount, including all
5previous adjustments, or (ii) one-half the annual unadjusted
6percentage increase (but not less than zero) in the consumer
7price index-u for the 12 months ending with the September
8preceding each November 1, including all previous adjustments.
9    For the purposes of this Section, "consumer price index-u"
10means the index published by the Bureau of Labor Statistics of
11the United States Department of Labor that measures the
12average change in prices of goods and services purchased by
13all urban consumers, United States city average, all items,
141982-84 = 100. The new amount resulting from each annual
15adjustment shall be determined by the Public Pension Division
16of the Department of Insurance and made available to the
17boards of the retirement systems and pension funds by November
181 of each year.
19    (b-10) Beginning on January 1, 2024, for all purposes
20under this Code (including, without limitation, the
21calculation of benefits and employee contributions), the
22annual earnings, salary, or wages (based on the plan year) of a
23member or participant under Article 9 to whom this Section
24applies shall include an annual earnings, salary, or wage cap
25that tracks the Social Security wage base. Maximum annual
26earnings, wages, or salary shall be the annual contribution

 

 

HB2352 Enrolled- 6 -LRB103 27717 RPS 54094 b

1and benefit base established for the applicable year by the
2Commissioner of the Social Security Administration under the
3federal Social Security Act.
4    However, in no event shall the annual earnings, salary, or
5wages for the purposes of this Article and Article 9 exceed any
6limitation imposed on annual earnings, salary, or wages under
7Section 1-117. Under no circumstances shall the maximum amount
8of annual earnings, salary, or wages be greater than the
9amount set forth in this subsection (b-10) as a result of
10reciprocal service or any provisions regarding reciprocal
11services, nor shall the Fund under Article 9 be required to pay
12any refund as a result of the application of this maximum
13annual earnings, salary, and wage cap.
14    Nothing in this subsection (b-10) shall cause or otherwise
15result in any retroactive adjustment of any employee
16contributions. Nothing in this subsection (b-10) shall cause
17or otherwise result in any retroactive adjustment of
18disability or other payments made between January 1, 2011 and
19January 1, 2024.
20    (c) A member or participant is entitled to a retirement
21annuity upon written application if he or she has attained age
2267 (age 65, with respect to service under Article 12 that is
23subject to this Section, for a member or participant under
24Article 12 who first becomes a member or participant under
25Article 12 on or after January 1, 2022 or who makes the
26election under item (i) of subsection (d-15) of this Section)

 

 

HB2352 Enrolled- 7 -LRB103 27717 RPS 54094 b

1and has at least 10 years of service credit and is otherwise
2eligible under the requirements of the applicable Article.
3    A member or participant who has attained age 62 (age 60,
4with respect to service under Article 12 that is subject to
5this Section, for a member or participant under Article 12 who
6first becomes a member or participant under Article 12 on or
7after January 1, 2022 or who makes the election under item (i)
8of subsection (d-15) of this Section) and has at least 10 years
9of service credit and is otherwise eligible under the
10requirements of the applicable Article may elect to receive
11the lower retirement annuity provided in subsection (d) of
12this Section.
13    (c-5) A person who first becomes a member or a participant
14subject to this Section on or after July 6, 2017 (the effective
15date of Public Act 100-23), notwithstanding any other
16provision of this Code to the contrary, is entitled to a
17retirement annuity under Article 8 or Article 11 upon written
18application if he or she has attained age 65 and has at least
1910 years of service credit and is otherwise eligible under the
20requirements of Article 8 or Article 11 of this Code,
21whichever is applicable.
22    (d) The retirement annuity of a member or participant who
23is retiring after attaining age 62 (age 60, with respect to
24service under Article 12 that is subject to this Section, for a
25member or participant under Article 12 who first becomes a
26member or participant under Article 12 on or after January 1,

 

 

HB2352 Enrolled- 8 -LRB103 27717 RPS 54094 b

12022 or who makes the election under item (i) of subsection
2(d-15) of this Section) with at least 10 years of service
3credit shall be reduced by one-half of 1% for each full month
4that the member's age is under age 67 (age 65, 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).
10    (d-5) The retirement annuity payable under Article 8 or
11Article 11 to an eligible person subject to subsection (c-5)
12of this Section who is retiring at age 60 with at least 10
13years of service credit shall be reduced by one-half of 1% for
14each full month that the member's age is under age 65.
15    (d-10) Each person who first became a member or
16participant under Article 8 or Article 11 of this Code on or
17after January 1, 2011 and prior to July 6, 2017 (the effective
18date of Public Act 100-23) shall make an irrevocable election
19either:
20        (i) to be eligible for the reduced retirement age
21    provided in subsections (c-5) and (d-5) of this Section,
22    the eligibility for which is conditioned upon the member
23    or participant agreeing to the increases in employee
24    contributions for age and service annuities provided in
25    subsection (a-5) of Section 8-174 of this Code (for
26    service under Article 8) or subsection (a-5) of Section

 

 

HB2352 Enrolled- 9 -LRB103 27717 RPS 54094 b

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

 

 

HB2352 Enrolled- 10 -LRB103 27717 RPS 54094 b

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

 

 

HB2352 Enrolled- 11 -LRB103 27717 RPS 54094 b

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

 

 

HB2352 Enrolled- 12 -LRB103 27717 RPS 54094 b

1participant who has not retired and who first became a member
2or participant on or after January 1, 2011, eligibility for a
3survivor's or widow's annuity shall be determined by the
4applicable Article of this Code. The initial benefit shall be
566 2/3% of the earned annuity without a reduction due to age. A
6child's annuity of an otherwise eligible child shall be in the
7amount prescribed under each Article if applicable. Any
8survivor's or widow's annuity shall be increased (1) on each
9January 1 occurring on or after the commencement of the
10annuity if the deceased member died while receiving a
11retirement annuity or (2) in other cases, on each January 1
12occurring after the first anniversary of the commencement of
13the annuity. Each annual increase shall be calculated at 3% or
14one-half the annual unadjusted percentage increase (but not
15less than zero) in the consumer price index-u for the 12 months
16ending with the September preceding each November 1, whichever
17is less, of the originally granted survivor's annuity. If the
18annual unadjusted percentage change in the consumer price
19index-u for the 12 months ending with the September preceding
20each November 1 is zero or there is a decrease, then the
21annuity shall not be increased.
22    (g) The benefits in Section 14-110 apply if the person is a
23fire fighter in the fire protection service of a department, a
24security employee of the Department of Corrections or the
25Department of Juvenile Justice, or a security employee of the
26Department of Innovation and Technology, as those terms are

 

 

HB2352 Enrolled- 13 -LRB103 27717 RPS 54094 b

1defined in subsection (b) and subsection (c) of Section
214-110. A person who meets the requirements of this Section is
3entitled to an annuity calculated under the provisions of
4Section 14-110, in lieu of the regular or minimum retirement
5annuity, only if the person has withdrawn from service with
6not less than 20 years of eligible creditable service and has
7attained age 60, regardless of whether the attainment of age
860 occurs while the person is still in service.
9    (g-5) The benefits in Section 14-110 apply if the person
10is a State policeman, investigator for the Secretary of State,
11conservation police officer, investigator for the Department
12of Revenue or the Illinois Gaming Board, investigator for the
13Office of the Attorney General, Commerce Commission police
14officer, or arson investigator, as those terms are defined in
15subsection (b) and subsection (c) of Section 14-110. A person
16who meets the requirements of this Section is entitled to an
17annuity calculated under the provisions of Section 14-110, in
18lieu of the regular or minimum retirement annuity, only if the
19person has withdrawn from service with not less than 20 years
20of eligible creditable service and has attained age 55,
21regardless of whether the attainment of age 55 occurs while
22the person is still in service.
23    (h) If a person who first becomes a member or a participant
24of a retirement system or pension fund subject to this Section
25on or after January 1, 2011 is receiving a retirement annuity
26or retirement pension under that system or fund and becomes a

 

 

HB2352 Enrolled- 14 -LRB103 27717 RPS 54094 b

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

 

 

HB2352 Enrolled- 15 -LRB103 27717 RPS 54094 b

1contractual employment, the person's retirement annuity or
2retirement pension payments shall resume and, if appropriate,
3be recalculated under the applicable provisions of this Code.
4    (i) (Blank).
5    (j) In the case of a conflict between the provisions of
6this Section and any other provision of this Code, the
7provisions of this Section shall control.
8(Source: P.A. 101-610, eff. 1-1-20; 102-16, eff. 6-17-21;
9102-210, eff. 1-1-22; 102-263, eff. 8-6-21; 102-719, eff.
105-6-22.)
 
11    (Text of Section from P.A. 102-813)
12    Sec. 1-160. Provisions applicable to new hires.
13    (a) The provisions of this Section apply to a person who,
14on or after January 1, 2011, first becomes a member or a
15participant under any reciprocal retirement system or pension
16fund established under this Code, other than a retirement
17system or pension fund established under Article 2, 3, 4, 5, 6,
187, 15, or 18 of this Code, notwithstanding any other provision
19of this Code to the contrary, but do not apply to any
20self-managed plan established under this Code or to any
21participant of the retirement plan established under Section
2222-101; except that this Section applies to a person who
23elected to establish alternative credits by electing in
24writing after January 1, 2011, but before August 8, 2011,
25under Section 7-145.1 of this Code. Notwithstanding anything

 

 

HB2352 Enrolled- 16 -LRB103 27717 RPS 54094 b

1to the contrary in this Section, for purposes of this Section,
2a person who is a Tier 1 regular employee as defined in Section
37-109.4 of this Code or who participated in a retirement
4system under Article 15 prior to January 1, 2011 shall be
5deemed a person who first became a member or participant prior
6to January 1, 2011 under any retirement system or pension fund
7subject to this Section. The changes made to this Section by
8Public Act 98-596 are a clarification of existing law and are
9intended to be retroactive to January 1, 2011 (the effective
10date of Public Act 96-889), notwithstanding the provisions of
11Section 1-103.1 of this Code.
12    This Section does not apply to a person who first becomes a
13noncovered employee under Article 14 on or after the
14implementation date of the plan created under Section 1-161
15for that Article, unless that person elects under subsection
16(b) of Section 1-161 to instead receive the benefits provided
17under this Section and the applicable provisions of that
18Article.
19    This Section does not apply to a person who first becomes a
20member or participant under Article 16 on or after the
21implementation date of the plan created under Section 1-161
22for that Article, unless that person elects under subsection
23(b) of Section 1-161 to instead receive the benefits provided
24under this Section and the applicable provisions of that
25Article.
26    This Section does not apply to a person who elects under

 

 

HB2352 Enrolled- 17 -LRB103 27717 RPS 54094 b

1subsection (c-5) of Section 1-161 to receive the benefits
2under Section 1-161.
3    This Section does not apply to a person who first becomes a
4member or participant of an affected pension fund on or after 6
5months after the resolution or ordinance date, as defined in
6Section 1-162, unless that person elects under subsection (c)
7of Section 1-162 to receive the benefits provided under this
8Section and the applicable provisions of the Article under
9which he or she is a member or participant.
10    (b) "Final average salary" means, except as otherwise
11provided in this subsection, the average monthly (or annual)
12salary obtained by dividing the total salary or earnings
13calculated under the Article applicable to the member or
14participant during the 96 consecutive months (or 8 consecutive
15years) of service within the last 120 months (or 10 years) of
16service in which the total salary or earnings calculated under
17the applicable Article was the highest by the number of months
18(or years) of service in that period. For the purposes of a
19person who first becomes a member or participant of any
20retirement system or pension fund to which this Section
21applies on or after January 1, 2011, in this Code, "final
22average salary" shall be substituted for the following:
23        (1) (Blank).
24        (2) In Articles 8, 9, 10, 11, and 12, "highest average
25    annual salary for any 4 consecutive years within the last
26    10 years of service immediately preceding the date of

 

 

HB2352 Enrolled- 18 -LRB103 27717 RPS 54094 b

1    withdrawal".
2        (3) In Article 13, "average final salary".
3        (4) In Article 14, "final average compensation".
4        (5) In Article 17, "average salary".
5        (6) In Section 22-207, "wages or salary received by
6    him at the date of retirement or discharge".
7    A member of the Teachers' Retirement System of the State
8of Illinois who retires on or after June 1, 2021 and for whom
9the 2020-2021 school year is used in the calculation of the
10member's final average salary shall use the higher of the
11following for the purpose of determining the member's final
12average salary:
13        (A) the amount otherwise calculated under the first
14    paragraph of this subsection; or
15        (B) an amount calculated by the Teachers' Retirement
16    System of the State of Illinois using the average of the
17    monthly (or annual) salary obtained by dividing the total
18    salary or earnings calculated under Article 16 applicable
19    to the member or participant during the 96 months (or 8
20    years) of service within the last 120 months (or 10 years)
21    of service in which the total salary or earnings
22    calculated under the Article was the highest by the number
23    of months (or years) of service in that period.
24    (b-5) Beginning on January 1, 2011, for all purposes under
25this Code (including without limitation the calculation of
26benefits and employee contributions), the annual earnings,

 

 

HB2352 Enrolled- 19 -LRB103 27717 RPS 54094 b

1salary, or wages (based on the plan year) of a member or
2participant to whom this Section applies shall not exceed
3$106,800; however, that amount shall annually thereafter be
4increased by the lesser of (i) 3% of that amount, including all
5previous adjustments, or (ii) one-half the annual unadjusted
6percentage increase (but not less than zero) in the consumer
7price index-u for the 12 months ending with the September
8preceding each November 1, including all previous adjustments.
9    For the purposes of this Section, "consumer price index-u"
10means the index published by the Bureau of Labor Statistics of
11the United States Department of Labor that measures the
12average change in prices of goods and services purchased by
13all urban consumers, United States city average, all items,
141982-84 = 100. The new amount resulting from each annual
15adjustment shall be determined by the Public Pension Division
16of the Department of Insurance and made available to the
17boards of the retirement systems and pension funds by November
181 of each year.
19    (b-10) Beginning on January 1, 2024, for all purposes
20under this Code (including, without limitation, the
21calculation of benefits and employee contributions), the
22annual earnings, salary, or wages (based on the plan year) of a
23member or participant under Article 9 to whom this Section
24applies shall include an annual earnings, salary, or wage cap
25that tracks the Social Security wage base. Maximum annual
26earnings, wages, or salary shall be the annual contribution

 

 

HB2352 Enrolled- 20 -LRB103 27717 RPS 54094 b

1and benefit base established for the applicable year by the
2Commissioner of the Social Security Administration under the
3federal Social Security Act.
4    However, in no event shall the annual earnings, salary, or
5wages for the purposes of this Article and Article 9 exceed any
6limitation imposed on annual earnings, salary, or wages under
7Section 1-117. Under no circumstances shall the maximum amount
8of annual earnings, salary, or wages be greater than the
9amount set forth in this subsection (b-10) as a result of
10reciprocal service or any provisions regarding reciprocal
11services, nor shall the Fund under Article 9 be required to pay
12any refund as a result of the application of this maximum
13annual earnings, salary, and wage cap.
14    Nothing in this subsection (b-10) shall cause or otherwise
15result in any retroactive adjustment of any employee
16contributions. Nothing in this subsection (b-10) shall cause
17or otherwise result in any retroactive adjustment of
18disability or other payments made between January 1, 2011 and
19January 1, 2024.
20    (c) A member or participant is entitled to a retirement
21annuity upon written application if he or she has attained age
2267 (age 65, with respect to service under Article 12 that is
23subject to this Section, for a member or participant under
24Article 12 who first becomes a member or participant under
25Article 12 on or after January 1, 2022 or who makes the
26election under item (i) of subsection (d-15) of this Section)

 

 

HB2352 Enrolled- 21 -LRB103 27717 RPS 54094 b

1and has at least 10 years of service credit and is otherwise
2eligible under the requirements of the applicable Article.
3    A member or participant who has attained age 62 (age 60,
4with respect to service under Article 12 that is subject to
5this Section, for a member or participant under Article 12 who
6first becomes a member or participant under Article 12 on or
7after January 1, 2022 or who makes the election under item (i)
8of subsection (d-15) of this Section) and has at least 10 years
9of service credit and is otherwise eligible under the
10requirements of the applicable Article may elect to receive
11the lower retirement annuity provided in subsection (d) of
12this Section.
13    (c-5) A person who first becomes a member or a participant
14subject to this Section on or after July 6, 2017 (the effective
15date of Public Act 100-23), notwithstanding any other
16provision of this Code to the contrary, is entitled to a
17retirement annuity under Article 8 or Article 11 upon written
18application if he or she has attained age 65 and has at least
1910 years of service credit and is otherwise eligible under the
20requirements of Article 8 or Article 11 of this Code,
21whichever is applicable.
22    (d) The retirement annuity of a member or participant who
23is retiring after attaining age 62 (age 60, with respect to
24service under Article 12 that is subject to this Section, for a
25member or participant under Article 12 who first becomes a
26member or participant under Article 12 on or after January 1,

 

 

HB2352 Enrolled- 22 -LRB103 27717 RPS 54094 b

12022 or who makes the election under item (i) of subsection
2(d-15) of this Section) with at least 10 years of service
3credit shall be reduced by one-half of 1% for each full month
4that the member's age is under age 67 (age 65, 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).
10    (d-5) The retirement annuity payable under Article 8 or
11Article 11 to an eligible person subject to subsection (c-5)
12of this Section who is retiring at age 60 with at least 10
13years of service credit shall be reduced by one-half of 1% for
14each full month that the member's age is under age 65.
15    (d-10) Each person who first became a member or
16participant under Article 8 or Article 11 of this Code on or
17after January 1, 2011 and prior to July 6, 2017 (the effective
18date of Public Act 100-23) shall make an irrevocable election
19either:
20        (i) to be eligible for the reduced retirement age
21    provided in subsections (c-5) and (d-5) of this Section,
22    the eligibility for which is conditioned upon the member
23    or participant agreeing to the increases in employee
24    contributions for age and service annuities provided in
25    subsection (a-5) of Section 8-174 of this Code (for
26    service under Article 8) or subsection (a-5) of Section

 

 

HB2352 Enrolled- 23 -LRB103 27717 RPS 54094 b

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

 

 

HB2352 Enrolled- 24 -LRB103 27717 RPS 54094 b

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

 

 

HB2352 Enrolled- 25 -LRB103 27717 RPS 54094 b

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

 

 

HB2352 Enrolled- 26 -LRB103 27717 RPS 54094 b

1participant who has not retired and who first became a member
2or participant on or after January 1, 2011, eligibility for a
3survivor's or widow's annuity shall be determined by the
4applicable Article of this Code. The initial benefit shall be
566 2/3% of the earned annuity without a reduction due to age. A
6child's annuity of an otherwise eligible child shall be in the
7amount prescribed under each Article if applicable. Any
8survivor's or widow's annuity shall be increased (1) on each
9January 1 occurring on or after the commencement of the
10annuity if the deceased member died while receiving a
11retirement annuity or (2) in other cases, on each January 1
12occurring after the first anniversary of the commencement of
13the annuity. Each annual increase shall be calculated at 3% or
14one-half the annual unadjusted percentage increase (but not
15less than zero) in the consumer price index-u for the 12 months
16ending with the September preceding each November 1, whichever
17is less, of the originally granted survivor's annuity. If the
18annual unadjusted percentage change in the consumer price
19index-u for the 12 months ending with the September preceding
20each November 1 is zero or there is a decrease, then the
21annuity shall not be increased.
22    (g) The benefits in Section 14-110 apply only if the
23person is a State policeman, a fire fighter in the fire
24protection service of a department, a conservation police
25officer, an investigator for the Secretary of State, an arson
26investigator, a Commerce Commission police officer,

 

 

HB2352 Enrolled- 27 -LRB103 27717 RPS 54094 b

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

 

 

HB2352 Enrolled- 28 -LRB103 27717 RPS 54094 b

1applicable Article of this Code.
2    If a person who first becomes a member of a retirement
3system or pension fund subject to this Section on or after
4January 1, 2012 and is receiving a retirement annuity or
5retirement pension under that system or fund and accepts on a
6contractual basis a position to provide services to a
7governmental entity from which he or she has retired, then
8that person's annuity or retirement pension earned as an
9active employee of the employer shall be suspended during that
10contractual service. A person receiving an annuity or
11retirement pension under this Code shall notify the pension
12fund or retirement system from which he or she is receiving an
13annuity or retirement pension, as well as his or her
14contractual employer, of his or her retirement status before
15accepting contractual employment. A person who fails to submit
16such notification shall be guilty of a Class A misdemeanor and
17required to pay a fine of $1,000. Upon termination of that
18contractual employment, the person's retirement annuity or
19retirement pension payments shall resume and, if appropriate,
20be recalculated under the applicable provisions of this Code.
21    (i) (Blank).
22    (j) In the case of a conflict between the provisions of
23this Section and any other provision of this Code, the
24provisions of this Section shall control.
25(Source: P.A. 101-610, eff. 1-1-20; 102-16, eff. 6-17-21;
26102-210, eff. 1-1-22; 102-263, eff. 8-6-21; 102-813, eff.

 

 

HB2352 Enrolled- 29 -LRB103 27717 RPS 54094 b

15-13-22.)
 
2    (Text of Section from P.A. 102-956)
3    Sec. 1-160. Provisions applicable to new hires.
4    (a) The provisions of this Section apply to a person who,
5on or after January 1, 2011, first becomes a member or a
6participant under any reciprocal retirement system or pension
7fund established under this Code, other than a retirement
8system or pension fund established under Article 2, 3, 4, 5, 6,
97, 15, or 18 of this Code, notwithstanding any other provision
10of this Code to the contrary, but do not apply to any
11self-managed plan established under this Code or to any
12participant of the retirement plan established under Section
1322-101; except that this Section applies to a person who
14elected to establish alternative credits by electing in
15writing after January 1, 2011, but before August 8, 2011,
16under Section 7-145.1 of this Code. Notwithstanding anything
17to the contrary in this Section, for purposes of this Section,
18a person who is a Tier 1 regular employee as defined in Section
197-109.4 of this Code or who participated in a retirement
20system under Article 15 prior to January 1, 2011 shall be
21deemed a person who first became a member or participant prior
22to January 1, 2011 under any retirement system or pension fund
23subject to this Section. The changes made to this Section by
24Public Act 98-596 are a clarification of existing law and are
25intended to be retroactive to January 1, 2011 (the effective

 

 

HB2352 Enrolled- 30 -LRB103 27717 RPS 54094 b

1date of Public Act 96-889), notwithstanding the provisions of
2Section 1-103.1 of this Code.
3    This Section does not apply to a person who first becomes a
4noncovered employee under Article 14 on or after the
5implementation date of the plan created under Section 1-161
6for that Article, unless that person elects under subsection
7(b) of Section 1-161 to instead receive the benefits provided
8under this Section and the applicable provisions of that
9Article.
10    This Section does not apply to a person who first becomes a
11member or participant under Article 16 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 elects under
18subsection (c-5) of Section 1-161 to receive the benefits
19under Section 1-161.
20    This Section does not apply to a person who first becomes a
21member or participant of an affected pension fund on or after 6
22months after the resolution or ordinance date, as defined in
23Section 1-162, unless that person elects under subsection (c)
24of Section 1-162 to receive the benefits provided under this
25Section and the applicable provisions of the Article under
26which he or she is a member or participant.

 

 

HB2352 Enrolled- 31 -LRB103 27717 RPS 54094 b

1    (b) "Final average salary" means, except as otherwise
2provided in this subsection, the average monthly (or annual)
3salary obtained by dividing the total salary or earnings
4calculated under the Article applicable to the member or
5participant during the 96 consecutive months (or 8 consecutive
6years) of service within the last 120 months (or 10 years) of
7service in which the total salary or earnings calculated under
8the applicable Article was the highest by the number of months
9(or years) of service in that period. For the purposes of a
10person who first becomes a member or participant of any
11retirement system or pension fund to which this Section
12applies on or after January 1, 2011, in this Code, "final
13average salary" shall be substituted for the following:
14        (1) (Blank).
15        (2) In Articles 8, 9, 10, 11, and 12, "highest average
16    annual salary for any 4 consecutive years within the last
17    10 years of service immediately preceding the date of
18    withdrawal".
19        (3) In Article 13, "average final salary".
20        (4) In Article 14, "final average compensation".
21        (5) In Article 17, "average salary".
22        (6) In Section 22-207, "wages or salary received by
23    him at the date of retirement or discharge".
24    A member of the Teachers' Retirement System of the State
25of Illinois who retires on or after June 1, 2021 and for whom
26the 2020-2021 school year is used in the calculation of the

 

 

HB2352 Enrolled- 32 -LRB103 27717 RPS 54094 b

1member's final average salary shall use the higher of the
2following for the purpose of determining the member's final
3average salary:
4        (A) the amount otherwise calculated under the first
5    paragraph of this subsection; or
6        (B) an amount calculated by the Teachers' Retirement
7    System of the State of Illinois using the average of the
8    monthly (or annual) salary obtained by dividing the total
9    salary or earnings calculated under Article 16 applicable
10    to the member or participant during the 96 months (or 8
11    years) of service within the last 120 months (or 10 years)
12    of service in which the total salary or earnings
13    calculated under the Article was the highest by the number
14    of months (or years) of service in that period.
15    (b-5) Beginning on January 1, 2011, for all purposes under
16this Code (including without limitation the calculation of
17benefits and employee contributions), the annual earnings,
18salary, or wages (based on the plan year) of a member or
19participant to whom this Section applies shall not exceed
20$106,800; however, that amount shall annually thereafter be
21increased by the lesser of (i) 3% of that amount, including all
22previous adjustments, or (ii) one-half the annual unadjusted
23percentage increase (but not less than zero) in the consumer
24price index-u for the 12 months ending with the September
25preceding each November 1, including all previous adjustments.
26    For the purposes of this Section, "consumer price index-u"

 

 

HB2352 Enrolled- 33 -LRB103 27717 RPS 54094 b

1means the index published by the Bureau of Labor Statistics of
2the United States Department of Labor that measures the
3average change in prices of goods and services purchased by
4all urban consumers, United States city average, all items,
51982-84 = 100. The new amount resulting from each annual
6adjustment shall be determined by the Public Pension Division
7of the Department of Insurance and made available to the
8boards of the retirement systems and pension funds by November
91 of each year.
10    (b-10) Beginning on January 1, 2024, for all purposes
11under this Code (including, without limitation, the
12calculation of benefits and employee contributions), the
13annual earnings, salary, or wages (based on the plan year) of a
14member or participant under Article 9 to whom this Section
15applies shall include an annual earnings, salary, or wage cap
16that tracks the Social Security wage base. Maximum annual
17earnings, wages, or salary shall be the annual contribution
18and benefit base established for the applicable year by the
19Commissioner of the Social Security Administration under the
20federal Social Security Act.
21    However, in no event shall the annual earnings, salary, or
22wages for the purposes of this Article and Article 9 exceed any
23limitation imposed on annual earnings, salary, or wages under
24Section 1-117. Under no circumstances shall the maximum amount
25of annual earnings, salary, or wages be greater than the
26amount set forth in this subsection (b-10) as a result of

 

 

HB2352 Enrolled- 34 -LRB103 27717 RPS 54094 b

1reciprocal service or any provisions regarding reciprocal
2services, nor shall the Fund under Article 9 be required to pay
3any refund as a result of the application of this maximum
4annual earnings, salary, and wage cap.
5    Nothing in this subsection (b-10) shall cause or otherwise
6result in any retroactive adjustment of any employee
7contributions. Nothing in this subsection (b-10) shall cause
8or otherwise result in any retroactive adjustment of
9disability or other payments made between January 1, 2011 and
10January 1, 2024.
11    (c) A member or participant is entitled to a retirement
12annuity upon written application if he or she has attained age
1367 (age 65, with respect to service under Article 12 that is
14subject to this Section, for a member or participant under
15Article 12 who first becomes a member or participant under
16Article 12 on or after January 1, 2022 or who makes the
17election under item (i) of subsection (d-15) of 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 (age 60,
21with respect to service under Article 12 that is subject to
22this Section, for a member or participant under Article 12 who
23first becomes a member or participant under Article 12 on or
24after January 1, 2022 or who makes the election under item (i)
25of subsection (d-15) of this Section) and has at least 10 years
26of service credit and is otherwise eligible under the

 

 

HB2352 Enrolled- 35 -LRB103 27717 RPS 54094 b

1requirements of the applicable Article may elect to receive
2the lower retirement annuity provided in subsection (d) of
3this Section.
4    (c-5) A person who first becomes a member or a participant
5subject to this Section on or after July 6, 2017 (the effective
6date of Public Act 100-23), notwithstanding any other
7provision of this Code to the contrary, is entitled to a
8retirement annuity under Article 8 or Article 11 upon written
9application if he or she has attained age 65 and has at least
1010 years of service credit and is otherwise eligible under the
11requirements of Article 8 or Article 11 of this Code,
12whichever is applicable.
13    (d) The retirement annuity of a member or participant who
14is retiring after attaining age 62 (age 60, with respect to
15service under Article 12 that is subject to this Section, for a
16member or participant under Article 12 who first becomes a
17member or participant under Article 12 on or after January 1,
182022 or who makes the election under item (i) of subsection
19(d-15) of this Section) with at least 10 years of service
20credit shall be reduced by one-half of 1% for each full month
21that the member's age is under age 67 (age 65, with respect to
22service under Article 12 that is subject to this Section, for a
23member or participant under Article 12 who first becomes a
24member or participant under Article 12 on or after January 1,
252022 or who makes the election under item (i) of subsection
26(d-15) of this Section).

 

 

HB2352 Enrolled- 36 -LRB103 27717 RPS 54094 b

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

 

 

HB2352 Enrolled- 37 -LRB103 27717 RPS 54094 b

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

 

 

HB2352 Enrolled- 38 -LRB103 27717 RPS 54094 b

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

 

 

HB2352 Enrolled- 39 -LRB103 27717 RPS 54094 b

1decrease, then the annuity shall not be increased.
2    For the purposes of Section 1-103.1 of this Code, the
3changes made to this Section by Public Act 102-263 are
4applicable without regard to whether the employee was in
5active service on or after August 6, 2021 (the effective date
6of Public Act 102-263).
7    For the purposes of Section 1-103.1 of this Code, the
8changes made to this Section by Public Act 100-23 are
9applicable without regard to whether the employee was in
10active service on or after July 6, 2017 (the effective date of
11Public Act 100-23).
12    (f) The initial survivor's or widow's annuity of an
13otherwise eligible survivor or widow of a retired member or
14participant who first became a member or participant on or
15after January 1, 2011 shall be in the amount of 66 2/3% of the
16retired member's or participant's retirement annuity at the
17date of death. In the case of the death of a member or
18participant who has not retired and who first became a member
19or participant on or after January 1, 2011, eligibility for a
20survivor's or widow's annuity shall be determined by the
21applicable Article of this Code. The initial benefit shall be
2266 2/3% of the earned annuity without a reduction due to age. A
23child's annuity of an otherwise eligible child shall be in the
24amount prescribed under each Article if applicable. Any
25survivor's or widow's annuity shall be increased (1) on each
26January 1 occurring on or after the commencement of the

 

 

HB2352 Enrolled- 40 -LRB103 27717 RPS 54094 b

1annuity if the deceased member died while receiving a
2retirement annuity or (2) in other cases, on each January 1
3occurring after the first anniversary of the commencement of
4the annuity. Each annual increase shall be calculated at 3% or
5one-half the annual unadjusted percentage increase (but not
6less than zero) in the consumer price index-u for the 12 months
7ending with the September preceding each November 1, whichever
8is less, of the originally granted survivor's annuity. If the
9annual unadjusted percentage change in the consumer price
10index-u for the 12 months ending with the September preceding
11each November 1 is zero or there is a decrease, then the
12annuity shall not be increased.
13    (g) The benefits in Section 14-110 apply only if the
14person is a State policeman, a fire fighter in the fire
15protection service of a department, a conservation police
16officer, an investigator for the Secretary of State, an
17investigator for the Office of the Attorney General, an arson
18investigator, a Commerce Commission police officer,
19investigator for the Department of Revenue or the Illinois
20Gaming Board, a security employee of the Department of
21Corrections or the Department of Juvenile Justice, or a
22security employee of the Department of Innovation and
23Technology, as those terms are defined in subsection (b) and
24subsection (c) of Section 14-110. A person who meets the
25requirements of this Section is entitled to an annuity
26calculated under the provisions of Section 14-110, in lieu of

 

 

HB2352 Enrolled- 41 -LRB103 27717 RPS 54094 b

1the regular or minimum retirement annuity, only if the person
2has withdrawn from service with not less than 20 years of
3eligible creditable service and has attained age 60,
4regardless of whether the attainment of age 60 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

 

 

HB2352 Enrolled- 42 -LRB103 27717 RPS 54094 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; 102-956, eff.
195-27-22.)
 
20    (40 ILCS 5/9-169)  (from Ch. 108 1/2, par. 9-169)
21    Sec. 9-169. Financing; tax Financing - Tax levy and other
22funding sources.
23    (a) The county board shall levy a tax annually upon all
24taxable property in the county at the rate that will produce a
25sum which, when added to the amounts deducted from the

 

 

HB2352 Enrolled- 43 -LRB103 27717 RPS 54094 b

1salaries of the employees or otherwise contributed by them is
2sufficient for the requirements of this Article.
3    For the years before 1962 the tax rate shall be as provided
4in "The 1925 Act". For the years 1962 and 1963 the tax rate
5shall be not more than .0200 per cent; for the years 1964 and
61965 the tax rate shall be not more than .0202 per cent; for
7the years 1966 and 1967 the tax rate shall be not more than
8.0207 per cent; for the year 1968 the tax rate shall be not
9more than .0220 per cent; for the year 1969 the tax rate shall
10be not more than .0233 per cent; for the year 1970 the tax rate
11shall be not more than .0255 per cent; for the year 1971 the
12tax rate shall be not more than .0268 per cent of the value, as
13equalized or assessed by the Department of Revenue upon all
14taxable property in the county. Beginning with the year 1972
15and for each year thereafter the county shall levy a tax
16annually at a rate on the dollar of the value, as equalized or
17assessed by the Department of Revenue of all taxable property
18within the county that will produce, when extended, not to
19exceed an amount equal to the total amount of contributions
20made by the employees to the fund in the calendar year 2 years
21prior to the year for which the annual applicable tax is levied
22multiplied by .8 for the years 1972 through 1976; by .8 for the
23year 1977; by .87 for the year 1978; by .94 for the year 1979;
24by 1.02 for the year 1980 and by 1.10 for the year 1981 and by
251.18 for the year 1982 and by 1.36 for the year 1983 and by
261.54 for the year 1984 and for each year thereafter.

 

 

HB2352 Enrolled- 44 -LRB103 27717 RPS 54094 b

1    This tax shall be levied and collected in like manner with
2the general taxes of the county, and shall be in addition to
3all other taxes which the county is authorized to levy upon the
4aggregate valuation of all taxable property within the county
5and shall be exclusive of and in addition to the amount of tax
6the county is authorized to levy for general purposes under
7any laws which may limit the amount of tax which the county may
8levy for general purposes. The county clerk, in reducing tax
9levies under any Act concerning the levy and extension of
10taxes, shall not consider this tax as a part of the general tax
11levy for county purposes, and shall not include it within any
12limitation of the per cent of the assessed valuation upon
13which taxes are required to be extended for the county. It is
14lawful to extend this tax in addition to the general county
15rate fixed by statute, without being authorized as additional
16by a vote of the people of the county.
17    Revenues derived from this tax shall be paid to the
18treasurer of the county and held by the treasurer him for the
19benefit of the fund.
20    If the payments on account of taxes are insufficient
21during any year to meet the requirements of this Article, the
22county may issue tax anticipation warrants against the current
23tax levy.
24    (b) By January 10, annually, the board shall notify the
25county board of the requirement of this Article that this tax
26shall be levied. The board shall make an annual determination

 

 

HB2352 Enrolled- 45 -LRB103 27717 RPS 54094 b

1of the required county contributions, and shall certify the
2results thereof to the county board.
3    (c) Beginning in the year 2024, the county's minimum
4required employer contribution as provided in Section 9-169.2
5shall be paid with the portion of the tax levy as provided in
6subsection (a) of this Section and any other lawfully
7available funds of the county. The county shall disburse to
8and deposit with the county treasurer on a monthly basis
9beginning no later than the December 31 preceding the
10beginning of the Fund's fiscal year 1/12 of the balance of what
11is not paid under subsection (a), for the benefit of the Fund,
12to be held in accordance with this Article. This amount,
13together with such real estate taxes as are specifically
14levied under this Section for that year, shall not be less than
15the amount of the minimum required employer contribution for
16that year as certified by the Fund to the county board. The
17deposit may be derived from any source otherwise legally
18available to the county for that purpose, including, but not
19limited to, home rule taxes. The making of a deposit shall
20satisfy the requirements of this Section for that year to the
21extent of the amounts so deposited. Amounts deposited under
22this subsection may be used by the Fund for any of the purposes
23for which the proceeds of real estate taxes levied by the
24county under this Section may otherwise be used, including the
25payment of any amount that is otherwise required by this
26Article to be paid from the proceeds of that tax. If the

 

 

HB2352 Enrolled- 46 -LRB103 27717 RPS 54094 b

1county, before the effective date of this amendatory Act of
2the 103rd General Assembly, made a contribution or agreed to
3make a contribution to the Fund from sources other than real
4estate taxes, this paragraph confirms the validity of or
5ratifies such contribution or agreement, and neither the
6county nor any of its officers or employees shall be required
7to answer for such contribution or agreement in any court. The
8various sums to be contributed by the county board and
9allocated for the purposes of this Article and any interest to
10be contributed by the county shall be taken from the revenue
11derived from this tax and no money of the county derived from
12any source other than the levy and collection of this tax or
13the sale of tax anticipation warrants, except state or federal
14funds contributed for annuity and benefit purposes for
15employees of a county department of public aid under "The
16Illinois Public Aid Code", approved April 11, 1967, as now or
17hereafter amended, may be used to provide revenue for the
18fund.
19    If it is not possible or practicable for the county to make
20contributions for age and service annuity and widow's annuity
21concurrently with the employee contributions made for such
22purposes, such county shall make such contributions as soon as
23possible and practicable thereafter with interest thereon at
24the effective rate until the time it shall be made.
25    (d) With respect to employees whose wages are funded as
26participants under the Comprehensive Employment and Training

 

 

HB2352 Enrolled- 47 -LRB103 27717 RPS 54094 b

1Act of 1973, as amended (P.L. 93-203, 87 Stat. 839, P.L.
293-567, 88 Stat. 1845), hereinafter referred to as CETA,
3subsequent to October 1, 1978, and in instances where the
4board has elected to establish a manpower program reserve, the
5board shall compute the amounts necessary to be credited to
6the manpower program reserves established and maintained as
7herein provided, and shall make a periodic determination of
8the amount of required contributions from the County to the
9reserve to be reimbursed by the federal government in
10accordance with rules and regulations established by the
11Secretary of the United States Department of Labor or his
12designee, and certify the results thereof to the County Board.
13Any such amounts shall become a credit to the County and will
14be used to reduce the amount which the County would otherwise
15contribute during succeeding years for all employees.
16    (e) In lieu of establishing a manpower program reserve
17with respect to employees whose wages are funded as
18participants under the Comprehensive Employment and Training
19Act of 1973, as authorized by subsection (d), the board may
20elect to establish a special County contribution rate for all
21such employees. If this option is elected, the County shall
22contribute to the Fund from federal funds provided under the
23Comprehensive Employment and Training Act program at the
24special rate so established and such contributions shall
25become a credit to the County and be used to reduce the amount
26which the County would otherwise contribute during succeeding

 

 

HB2352 Enrolled- 48 -LRB103 27717 RPS 54094 b

1years for all employees.
2(Source: P.A. 95-369, eff. 8-23-07.)
 
3    (40 ILCS 5/9-169.1 new)
4    Sec. 9-169.1. Annual actuarial report. The retirement
5board shall retain an actuary who is a member in good standing
6of the American Academy of Actuaries to produce an annual
7actuarial report of the Fund. The annual actuarial report
8shall include, but not be limited to: (1) a statement of the
9minimum required contribution, the actuarial value of the
10Fund's assets as projected over at least 30 years' time, and
11the actuarial value of the Fund's liabilities as projected
12over the same period of time; and (2) the minimum required
13employer contribution, as determined under Section 9-169.2,
14for the second year immediately following the year ending on
15the valuation date upon which the annual actuarial report is
16based.
17    The annual actuarial report may be prepared as part of the
18annual audit required under Section 9-195. The annual
19actuarial report shall be reviewed and formally adopted by the
20retirement board and shall be included in the annual report
21that is required to be submitted to the county in July of each
22year under Section 9-199.
23    In this Section, "valuation date" means the date that the
24value of the assets and liabilities of the Fund is based on in
25the annual actuarial report.
 

 

 

HB2352 Enrolled- 49 -LRB103 27717 RPS 54094 b

1    (40 ILCS 5/9-169.2 new)
2    Sec. 9-169.2. Minimum required employer contribution. The
3minimum required employer contribution for a specified year,
4as set forth in the annual actuarial report required under
5Section 9-169.1, shall be the amount determined by the Fund's
6actuary to be equal to the sum of: (i) the projected normal
7cost for pensions for that fiscal year based on the entry age
8actuarial cost method, plus (ii) a projected unfunded
9actuarial accrued liability amortization payment for pensions
10for the fiscal year, plus (iii) projected expenses for that
11fiscal year, plus (iv) interest to adjust for payment pattern
12during the fiscal year, less (v) projected employee
13contributions for that fiscal year.
14    The minimum required employer contribution for the next
15year shall be submitted annually by the county on or before
16June 14 of each year unless another time frame is agreed upon
17by the county and the Fund.
18    For the purposes of this Section:
19    "5-Year smoothed actuarial value of assets" means the
20value of assets as determined by a method that spreads the
21effect of each year's investment return in excess of or below
22the expected return.
23    "Entry age actuarial cost method" means a method of
24determining the normal cost and is determined as a level
25percentage of pay that, if paid from entry age to the assumed

 

 

HB2352 Enrolled- 50 -LRB103 27717 RPS 54094 b

1retirement age, assuming all the actuarial assumptions are
2exactly met by experience and no changes in assumptions or
3benefit provisions, would accumulate to a fund sufficient to
4pay all benefits provided by the Fund.
5    "Layered amortization" means a technique that separately
6layers the different components of the unfunded actuarial
7accrued liabilities to be amortized over a fixed period not to
8exceed 30 years.
9    "Projected expenses" means the projected administrative
10expenses for the cost of administrating the Fund.
11    "Projected normal costs for pensions" means the cost of
12the benefits that accrue during the year for active members
13under the entry age actuarial cost method.
14    "Unfunded actuarial accrued liability amortization
15payment" means the annual contribution equal to the difference
16between the values of assets and the accrued liabilities of
17the plan, calculated by an actuary, needed to amortize the
18Fund's liabilities over a period of 30 years starting in 2017,
19with layered amortization of the Fund's unexpected unfunded
20actuarial accrued liability amortization payment following
212017 in periods of 30 years, with amortization payments
22increasing 2% per year, and reflecting a discount rate for all
23liabilities consistent with the assumed investment rate of
24return on fund assets and a 5-year smoothed actuarial value of
25assets.
 

 

 

HB2352 Enrolled- 51 -LRB103 27717 RPS 54094 b

1    (40 ILCS 5/9-179.1)  (from Ch. 108 1/2, par. 9-179.1)
2    Sec. 9-179.1. Military service. A contributing employee as
3of January 1, 1993 with at least 25 years of service credit may
4apply for creditable service for up to 2 years of military
5service whether or not the military service followed service
6as a county employee. The military service need not have been
7served in wartime, but the employee must not have been
8dishonorably discharged. To establish this creditable service
9the applicant must pay to the Fund, while in the service of the
10county, an amount determined by the Fund to represent the
11employee contributions for the creditable service established,
12based on the employee's rate of compensation on his or her last
13day as a contributor before the military service, or on his or
14her first day as a contributor after the military service,
15whichever is greater, plus interest at the effective rate from
16the date of discharge to the date of payment. If a person who
17has established any credit under this Section applies for or
18receives any early retirement incentive under Section 9-134.2,
19the credit under this Section shall be forfeited and the
20amount paid to the Fund under this Section shall be refunded.
21(Source: P.A. 87-1265.)
 
22    (40 ILCS 5/9-184)  (from Ch. 108 1/2, par. 9-184)
23    Sec. 9-184. Estimates of sums required for certain
24annuities and benefits. The board shall estimate and itemize
25the amounts required each year to pay for all annuities, each

 

 

HB2352 Enrolled- 52 -LRB103 27717 RPS 54094 b

1benefit category, and benefits and administrative expenses
2associated with this Article, by way of a written report and
3request to the County Board of Commissioners. The amounts
4shall be paid into the fund annually by the county as provided
5in Section 9-169 from the prescribed tax levy.
6(Source: Laws 1963, p. 161.)
 
7    (40 ILCS 5/9-185)  (from Ch. 108 1/2, par. 9-185)
8    Sec. 9-185. Board created.
9    (a) A board of 9 members shall constitute the board of
10trustees authorized to carry out the provisions of this
11Article. The board of trustees shall be known as "The
12Retirement Board of the County Employees' Annuity and Benefit
13Fund of .... County". The board shall consist of 2 members
14appointed and 7 members elected as hereinafter prescribed.
15    (b) The appointed members shall be appointed as follows:
16One member shall be appointed by the comptroller of such
17county, who may be the comptroller or some person chosen by the
18comptroller him from among employees of the county, who are
19versed in the affairs of the comptroller's office; and one
20member shall be appointed by the treasurer of such county, who
21may be the treasurer or some person chosen by the treasurer him
22from among employees of the County who are versed in the
23affairs of the treasurer's office.
24    The member appointed by the comptroller shall hold office
25for a term ending on December 1st of the first year following

 

 

HB2352 Enrolled- 53 -LRB103 27717 RPS 54094 b

1the year of appointment. The member appointed by the county
2treasurer shall hold office for a term ending on December 1st
3of the second year following the year of appointment.
4    Thereafter, each appointed member shall be appointed by
5the officer that appointed the his predecessor for a term of 2
6years.
7    (c) Three county employee members of the board shall be
8elected as follows: within 30 days from and after the date upon
9which this Article comes into effect in the county, the clerk
10of the county shall arrange for and hold an election. One
11employee shall be elected for a term ending on the first day in
12the month of December of the first year next following the
13effective date; one for a term ending on December 1st of the
14following year; and one for a term ending December 1st of the
15second following year.
16    (d) Beginning December 1, 1988, and every 3 years
17thereafter, an annuitant member of the board shall be elected
18as follows: the board shall arrange for and hold an election in
19which only those participants who are currently receiving
20retirement benefits under this Article shall be eligible to
21vote and be elected. Each such member shall be elected to a
22term ending on the first day in the month of December of the
23third following year.
24    (d-1) Beginning December 1, 2001, and every 3 years
25thereafter, an annuitant member of the board shall be elected
26as follows: the board shall arrange for and hold an election in

 

 

HB2352 Enrolled- 54 -LRB103 27717 RPS 54094 b

1which only those participants who are currently receiving
2retirement benefits under this Article shall be eligible to
3vote and be elected. Each such member shall be elected to a
4term ending on the first day in the month of December of the
5third following year. Until December 1, 2001, the position
6created under this subsection (d-1) may be filled by the board
7as in the case of a vacancy.
8    (e) Beginning December 1, 1988, if a Forest Preserve
9District Employees' Annuity and Benefit Fund shall be in force
10in such county and the board of this fund is charged with
11administering the affairs of such annuity and benefit fund for
12employees of such forest preserve district, a forest preserve
13district member of the board shall be elected as of December 1,
141988, and every 3 years thereafter as follows: the board shall
15arrange for and hold an election in which only those employees
16of such forest preserve district who are contributors to the
17annuity and benefit fund for employees of such forest preserve
18district shall be eligible to vote and be elected. Each such
19member shall be elected to a term ending on the first day in
20the month of December of the third following year.
21    (f) Beginning December 1, 2001, and every 3 years
22thereafter, if a Forest Preserve District Employees' Annuity
23and Benefit Fund is in force in the county and the board of
24this Fund is charged with administering the affairs of that
25annuity and benefit fund for employees of the forest preserve
26district, a forest preserve district annuitant member of the

 

 

HB2352 Enrolled- 55 -LRB103 27717 RPS 54094 b

1board shall be elected as follows: the board shall arrange for
2and hold an election in which only those participants who are
3currently receiving retirement benefits under Article 10 shall
4be eligible to vote and be elected. Each such member shall be
5elected to a term ending on the first day in the month of
6December of the third following year. Until December 1, 2001,
7the position created under this subsection (f) may be filled
8by the board as in the case of a vacancy.
9(Source: P.A. 92-66, eff. 7-12-01.)
 
10    (40 ILCS 5/9-195)  (from Ch. 108 1/2, par. 9-195)
11    Sec. 9-195. To have an audit. To have an audit of the
12accounts of the fund made at least once each year by certified
13public accountants. The audit may include the preparation of
14the annual actuarial report required under Section 9-169.1.
15(Source: Laws 1963, p. 161.)
 
16    (40 ILCS 5/9-199)  (from Ch. 108 1/2, par. 9-199)
17    Sec. 9-199. To submit an annual report. To submit a report
18in July of each year to the county board of the county as of
19the close of business on December 31st of the preceding year.
20The report shall contain a detailed statement of the affairs
21of the fund, its income and expenditures, and assets and
22liabilities, and it shall include the annual actuarial report
23required under Section 9-169.1. The county board shall have
24power to require and compel the retirement board to prepare

 

 

HB2352 Enrolled- 56 -LRB103 27717 RPS 54094 b

1and submit such reports.
2(Source: P.A. 95-369, eff. 8-23-07.)
 
3    (40 ILCS 5/9-240 new)
4    Sec. 9-240. Group health benefit funding. Beginning on the
5effective date of this amendatory Act of the 103rd General
6Assembly, the county shall be notified by June 14 of each year
7of the proposed costs of any such payments allocated by the
8Fund for all or any portion of the total health premium paid by
9the Fund pursuant to Section 9-239.
 
10    Section 90. The State Mandates Act is amended by adding
11Section 8.47 as follows:
 
12    (30 ILCS 805/8.47 new)
13    Sec. 8.47. Exempt mandate. Notwithstanding Sections 6 and
148 of this Act, no reimbursement by the State is required for
15the implementation of any mandate created by this amendatory
16Act of the 103rd General Assembly.
 
17    Section 99. Effective date. This Act takes effect upon
18becoming law.