103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB5211

 

Introduced 2/9/2024, by Rep. Stephanie A. Kifowit

 

SYNOPSIS AS INTRODUCED:
 
    See Index
    

    Amends the Illinois Pension Code. With respect to persons who, on or after January 1, 2011, become participants or members under the Downstate Police, Downstate Firefighter, Chicago Police, Chicago Firefighter, Illinois Municipal Retirement Fund (IMRF), Chicago Municipal, Cook County, Cook County Forest Preserve, Chicago Laborers, Chicago Park District, and Metropolitan Water Reclamation District (MWRD) Articles of the Code, provides that, beginning on January 1, 2025 for all purposes under the Code (including, without limitation, the calculation of benefits and employee contributions) the annual earnings, salary, or wages (based on the plan year) of a member or participant shall not exceed the Social Security wage base for the applicable plan year. Provides that a participant or member shall be entitled to a retirement annuity upon written application if he or she: (1) has attained age 62, has at least 35 years of service credit, and is otherwise eligible under the requirements of the applicable Article; (2) has attained age 64, has at least 20 years of service credit, and is otherwise eligible under the requirements of the applicable Article; or (3) has attained age 67, has at least 10 years of service credit, and is otherwise eligible under the requirements of the applicable Article. Provides for a reduced annuity for persons who retire before reaching a specified age. Provides that any retirement annuity or supplemental annuity shall be subject to annual increases on January 1 beginning with the January following the member's or participant's first annuity payment date. Provides that the annual increase shall be calculated at 3% of the originally granted retirement annuity. Provides that the changes do not apply to the extent that the changes would result in an impairment or diminishment of a pension benefit. Provides that the changes are intended to be retroactive to January 1, 2011. Makes conforming changes. Amends the State Mandates Act to require implementation without reimbursement.


LRB103 38400 RPS 68535 b

 

 

A BILL FOR

 

HB5211LRB103 38400 RPS 68535 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 Section 1-160 and by adding Sections 1-103.4, 1-163,
63-153, 4-145, 5-239, 6-231, 7-226, 8-251.5, 9-242, 10-110,
711-233, 12-196, and 13-217 as follows:
 
8    (40 ILCS 5/1-103.4 new)
9    Sec. 1-103.4. Application of this amendatory Act of the
10103rd General Assembly. The changes made by this amendatory
11Act of the 103rd General Assembly are intended to be
12retroactive to January 1, 2011 and are applicable without
13regard to whether a member or participant was in active
14service on or after the effective date of this amendatory Act
15of the 103rd General Assembly, notwithstanding Section
161-103.1.
 
17    (40 ILCS 5/1-160)
18    (Text of Section from P.A. 102-719)
19    Sec. 1-160. Provisions applicable to new hires.
20    (a) The provisions of this Section apply to a person who,
21on or after January 1, 2011, first becomes a member or a
22participant under any reciprocal retirement system or pension

 

 

HB5211- 2 -LRB103 38400 RPS 68535 b

1fund established under this Code, other than a retirement
2system or pension fund established under Article 2, 3, 4, 5, 6,
37, 15, or 18 of this Code, notwithstanding any other provision
4of this Code to the contrary, but do not apply to any
5self-managed plan established under this Code or to any
6participant of the retirement plan established under Section
722-101; except that this Section applies to a person who
8elected to establish alternative credits by electing in
9writing after January 1, 2011, but before August 8, 2011,
10under Section 7-145.1 of this Code. Notwithstanding anything
11to the contrary in this Section, for purposes of this Section,
12a person who is a Tier 1 regular employee as defined in Section
137-109.4 of this Code or who participated in a retirement
14system under Article 15 prior to January 1, 2011 shall be
15deemed a person who first became a member or participant prior
16to January 1, 2011 under any retirement system or pension fund
17subject to this Section. The changes made to this Section by
18Public Act 98-596 are a clarification of existing law and are
19intended to be retroactive to January 1, 2011 (the effective
20date of Public Act 96-889), notwithstanding the provisions of
21Section 1-103.1 of this Code.
22    This Section does not apply to a person who first becomes a
23noncovered employee under Article 14 on or after the
24implementation date of the plan created under Section 1-161
25for that Article, unless that person elects under subsection
26(b) of Section 1-161 to instead receive the benefits provided

 

 

HB5211- 3 -LRB103 38400 RPS 68535 b

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

 

 

HB5211- 4 -LRB103 38400 RPS 68535 b

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

 

 

HB5211- 5 -LRB103 38400 RPS 68535 b

1    monthly (or annual) salary obtained by dividing the total
2    salary or earnings calculated under Article 16 applicable
3    to the member or participant during the 96 months (or 8
4    years) of service within the last 120 months (or 10 years)
5    of service in which the total salary or earnings
6    calculated under the Article was the highest by the number
7    of months (or years) of service in that period.
8    (b-5) Beginning on January 1, 2011, for all purposes under
9this Code (including without limitation the calculation of
10benefits and employee contributions), the annual earnings,
11salary, or wages (based on the plan year) of a member or
12participant to whom this Section applies shall not exceed
13$106,800; however, that amount shall annually thereafter be
14increased by the lesser of (i) 3% of that amount, including all
15previous adjustments, or (ii) one-half the annual unadjusted
16percentage increase (but not less than zero) in the consumer
17price index-u for the 12 months ending with the September
18preceding each November 1, including all previous adjustments.
19    For the purposes of this Section, "consumer price index-u"
20means the index published by the Bureau of Labor Statistics of
21the United States Department of Labor that measures the
22average change in prices of goods and services purchased by
23all urban consumers, United States city average, all items,
241982-84 = 100. The new amount resulting from each annual
25adjustment shall be determined by the Public Pension Division
26of the Department of Insurance and made available to the

 

 

HB5211- 6 -LRB103 38400 RPS 68535 b

1boards of the retirement systems and pension funds by November
21 of each year.
3    (b-10) Beginning on January 1, 2024, for all purposes
4under this Code (including, without limitation, the
5calculation of benefits and employee contributions), the
6annual earnings, salary, or wages (based on the plan year) of a
7member or participant under Article 9 to whom this Section
8applies shall include an annual earnings, salary, or wage cap
9that tracks the Social Security wage base. Maximum annual
10earnings, wages, or salary shall be the annual contribution
11and benefit base established for the applicable year by the
12Commissioner of the Social Security Administration under the
13federal Social Security Act.
14    However, in no event shall the annual earnings, salary, or
15wages for the purposes of this Article and Article 9 exceed any
16limitation imposed on annual earnings, salary, or wages under
17Section 1-117. Under no circumstances shall the maximum amount
18of annual earnings, salary, or wages be greater than the
19amount set forth in this subsection (b-10) as a result of
20reciprocal service or any provisions regarding reciprocal
21services, nor shall the Fund under Article 9 be required to pay
22any refund as a result of the application of this maximum
23annual earnings, salary, and wage cap.
24    Nothing in this subsection (b-10) shall cause or otherwise
25result in any retroactive adjustment of any employee
26contributions. Nothing in this subsection (b-10) shall cause

 

 

HB5211- 7 -LRB103 38400 RPS 68535 b

1or otherwise result in any retroactive adjustment of
2disability or other payments made between January 1, 2011 and
3January 1, 2024.
4    (c) A member or participant is entitled to a retirement
5annuity upon written application if he or she has attained age
667 (age 65, with respect to service under Article 12 that is
7subject to this Section, for a member or participant under
8Article 12 who first becomes a member or participant under
9Article 12 on or after January 1, 2022 or who makes the
10election under item (i) of subsection (d-15) of this Section)
11and has at least 10 years of service credit and is otherwise
12eligible under the requirements of the applicable Article.
13    A member or participant who has attained age 62 (age 60,
14with respect to service under Article 12 that is subject to
15this Section, for a member or participant under Article 12 who
16first becomes a member or participant under Article 12 on or
17after January 1, 2022 or who makes the election under item (i)
18of subsection (d-15) of this Section) and has at least 10 years
19of service credit and is otherwise eligible under the
20requirements of the applicable Article may elect to receive
21the lower retirement annuity provided in subsection (d) of
22this Section.
23    (c-5)(Blank) A person who first becomes a member or a
24participant subject to this Section on or after July 6, 2017
25(the effective date of Public Act 100-23), notwithstanding any
26other provision of this Code to the contrary, is entitled to a

 

 

HB5211- 8 -LRB103 38400 RPS 68535 b

1retirement annuity under Article 8 or Article 11 upon written
2application if he or she has attained age 65 and has at least
310 years of service credit and is otherwise eligible under the
4requirements of Article 8 or Article 11 of this Code,
5whichever is applicable.
6    (d) The retirement annuity of a member or participant who
7is retiring after attaining age 62 (age 60, with respect to
8service under Article 12 that is subject to this Section, for a
9member or participant under Article 12 who first becomes a
10member or participant under Article 12 on or after January 1,
112022 or who makes the election under item (i) of subsection
12(d-15) of this Section) with at least 10 years of service
13credit shall be reduced by one-half of 1% for each full month
14that the member's age is under age 67 (age 65, 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).
20    (d-5) (Blank). The retirement annuity payable under
21Article 8 or Article 11 to an eligible person subject to
22subsection (c-5) of this Section who is retiring at age 60 with
23at least 10 years of service credit shall be reduced by
24one-half of 1% for each full month that the member's age is
25under age 65.
26    (d-10) Each person who first became a member or

 

 

HB5211- 9 -LRB103 38400 RPS 68535 b

1participant under Article 8 or Article 11 of this Code on or
2after January 1, 2011 and prior to July 6, 2017 (the effective
3date of Public Act 100-23) shall make an irrevocable election
4either:
5        (i) to be eligible for the reduced retirement age
6    provided in subsections (c-5) and (d-5) of this Section,
7    the eligibility for which is conditioned upon the member
8    or participant agreeing to the increases in employee
9    contributions for age and service annuities provided in
10    subsection (a-5) of Section 8-174 of this Code (for
11    service under Article 8) or subsection (a-5) of Section
12    11-170 of this Code (for service under Article 11); or
13        (ii) to not agree to item (i) of this subsection
14    (d-10), in which case the member or participant shall
15    continue to be subject to the retirement age provisions in
16    subsections (c) and (d) of this Section and the employee
17    contributions for age and service annuity as provided in
18    subsection (a) of Section 8-174 of this Code (for service
19    under Article 8) or subsection (a) of Section 11-170 of
20    this Code (for service under Article 11).
21    The election provided for in this subsection shall be made
22between October 1, 2017 and November 15, 2017. A person
23subject to this subsection who makes the required election
24shall remain bound by that election, except that an election
25made under this subsection is rescinded by operation of law
26and such person is subject to the provisions otherwise

 

 

HB5211- 10 -LRB103 38400 RPS 68535 b

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

 

 

HB5211- 11 -LRB103 38400 RPS 68535 b

1bound by that election, except that an election made under
2this subsection is rescinded by operation of law and such
3person is subject to the provisions otherwise applicable to a
4participant who first become a participant under Article 12 on
5or after January 1, 2011. A person subject to this subsection
6who fails for any reason to make the required election within
7the time specified in this subsection shall be deemed to have
8made the election under item (ii).
9    (e) Any retirement annuity or supplemental annuity shall
10be subject to annual increases on the January 1 occurring
11either on or after the attainment of age 67 (age 65, with
12respect to service under Article 12 that is subject to this
13Section, 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); and beginning on July 6, 2017 (the
17effective date of Public Act 100-23), age 65 with respect to
18service under Article 8 or Article 11 for eligible persons
19who: (i) are subject to subsection (c-5) of this Section; or
20(ii) made the election under item (i) of subsection (d-10) of
21this Section) or the first anniversary of the annuity start
22date, whichever is later. Each annual increase shall be
23calculated at 3% or one-half the annual unadjusted percentage
24increase (but not less than zero) in the consumer price
25index-u for the 12 months ending with the September preceding
26each November 1, whichever is less, of the originally granted

 

 

HB5211- 12 -LRB103 38400 RPS 68535 b

1retirement annuity. If the annual unadjusted percentage change
2in the consumer price index-u for the 12 months ending with the
3September preceding each November 1 is zero or there is a
4decrease, then the annuity shall not be increased.
5    For the purposes of Section 1-103.1 of this Code, the
6changes made to this Section by Public Act 102-263 are
7applicable without regard to whether the employee was in
8active service on or after August 6, 2021 (the effective date
9of Public Act 102-263).
10    For the purposes of Section 1-103.1 of this Code, the
11changes made to this Section by Public Act 100-23 are
12applicable without regard to whether the employee was in
13active service on or after July 6, 2017 (the effective date of
14Public Act 100-23).
15    (f) The initial survivor's or widow's annuity of an
16otherwise eligible survivor or widow of a retired member or
17participant who first became a member or participant on or
18after January 1, 2011 shall be in the amount of 66 2/3% of the
19retired member's or participant's retirement annuity at the
20date of death. In the case of the death of a member or
21participant who has not retired and who first became a member
22or participant on or after January 1, 2011, eligibility for a
23survivor's or widow's annuity shall be determined by the
24applicable Article of this Code. The initial benefit shall be
2566 2/3% of the earned annuity without a reduction due to age. A
26child's annuity of an otherwise eligible child shall be in the

 

 

HB5211- 13 -LRB103 38400 RPS 68535 b

1amount prescribed under each Article if applicable. Any
2survivor's or widow's annuity shall be increased (1) on each
3January 1 occurring on or after the commencement of the
4annuity if the deceased member died while receiving a
5retirement annuity or (2) in other cases, on each January 1
6occurring after the first anniversary of the commencement of
7the annuity. Each annual increase shall be calculated at 3% or
8one-half the annual unadjusted percentage increase (but not
9less than zero) in the consumer price index-u for the 12 months
10ending with the September preceding each November 1, whichever
11is less, of the originally granted survivor's annuity. If the
12annual unadjusted percentage change in the consumer price
13index-u for the 12 months ending with the September preceding
14each November 1 is zero or there is a decrease, then the
15annuity shall not be increased.
16    (g) The benefits in Section 14-110 apply if the person is a
17fire fighter in the fire protection service of a department, a
18security employee of the Department of Corrections or the
19Department of Juvenile Justice, or a security employee of the
20Department of Innovation and Technology, as those terms are
21defined in subsection (b) and subsection (c) of Section
2214-110. A person who meets the requirements of this Section is
23entitled to an annuity calculated under the provisions of
24Section 14-110, in lieu of the regular or minimum retirement
25annuity, only if the person has withdrawn from service with
26not less than 20 years of eligible creditable service and has

 

 

HB5211- 14 -LRB103 38400 RPS 68535 b

1attained age 60, regardless of whether the attainment of age
260 occurs while the person is still in service.
3    (g-5) The benefits in Section 14-110 apply if the person
4is a State policeman, investigator for the Secretary of State,
5conservation police officer, investigator for the Department
6of Revenue or the Illinois Gaming Board, investigator for the
7Office of the Attorney General, Commerce Commission police
8officer, or arson investigator, 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    (h) If a person who first becomes a member or a participant
18of a retirement system or pension fund subject to this Section
19on or after January 1, 2011 is receiving a retirement annuity
20or retirement pension under that system or fund and becomes a
21member or participant under any other system or fund created
22by this Code and is employed on a full-time basis, except for
23those members or participants exempted from the provisions of
24this Section under subsection (a) of this Section, then the
25person's retirement annuity or retirement pension under that
26system or fund shall be suspended during that employment. Upon

 

 

HB5211- 15 -LRB103 38400 RPS 68535 b

1termination of that employment, the person's retirement
2annuity or retirement pension payments shall resume and be
3recalculated if recalculation is provided for under the
4applicable Article of this Code.
5    If a person who first becomes a member of a retirement
6system or pension fund subject to this Section on or after
7January 1, 2012 and is receiving a retirement annuity or
8retirement pension under that system or fund and accepts on a
9contractual basis a position to provide services to a
10governmental entity from which he or she has retired, then
11that person's annuity or retirement pension earned as an
12active employee of the employer shall be suspended during that
13contractual service. A person receiving an annuity or
14retirement pension under this Code shall notify the pension
15fund or retirement system from which he or she is receiving an
16annuity or retirement pension, as well as his or her
17contractual employer, of his or her retirement status before
18accepting contractual employment. A person who fails to submit
19such notification shall be guilty of a Class A misdemeanor and
20required to pay a fine of $1,000. Upon termination of that
21contractual employment, the person's retirement annuity or
22retirement pension payments shall resume and, if appropriate,
23be recalculated under the applicable provisions of this Code.
24    (i) (Blank).
25    (j) Except for conflicts between this Section and Section
261-163, in In the case of a conflict between the provisions of

 

 

HB5211- 16 -LRB103 38400 RPS 68535 b

1this Section and any other provision of this Code, the
2provisions of this Section shall control.
3(Source: P.A. 101-610, eff. 1-1-20; 102-16, eff. 6-17-21;
4102-210, eff. 1-1-22; 102-263, eff. 8-6-21; 102-719, eff.
55-6-22.)
 
6    (Text of Section from P.A. 102-813)
7    Sec. 1-160. Provisions applicable to new hires.
8    (a) The provisions of this Section apply to a person who,
9on or after January 1, 2011, first becomes a member or a
10participant under any reciprocal retirement system or pension
11fund established under this Code, other than a retirement
12system or pension fund established under Article 2, 3, 4, 5, 6,
137, 15, or 18 of this Code, notwithstanding any other provision
14of this Code to the contrary, but do not apply to any
15self-managed plan established under this Code or to any
16participant of the retirement plan established under Section
1722-101; except that this Section applies to a person who
18elected to establish alternative credits by electing in
19writing after January 1, 2011, but before August 8, 2011,
20under Section 7-145.1 of this Code. Notwithstanding anything
21to the contrary in this Section, for purposes of this Section,
22a person who is a Tier 1 regular employee as defined in Section
237-109.4 of this Code or who participated in a retirement
24system under Article 15 prior to January 1, 2011 shall be
25deemed a person who first became a member or participant prior

 

 

HB5211- 17 -LRB103 38400 RPS 68535 b

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

 

 

HB5211- 18 -LRB103 38400 RPS 68535 b

1Section 1-162, unless that person elects under subsection (c)
2of Section 1-162 to receive the benefits provided under this
3Section and the applicable provisions of the Article under
4which he or she is a member or participant.
5    (b) "Final average salary" means, except as otherwise
6provided in this subsection, the average monthly (or annual)
7salary obtained by dividing the total salary or earnings
8calculated under the Article applicable to the member or
9participant during the 96 consecutive months (or 8 consecutive
10years) of service within the last 120 months (or 10 years) of
11service in which the total salary or earnings calculated under
12the applicable Article was the highest by the number of months
13(or years) of service in that period. For the purposes of a
14person who first becomes a member or participant of any
15retirement system or pension fund to which this Section
16applies on or after January 1, 2011, in this Code, "final
17average salary" shall be substituted for the following:
18        (1) (Blank).
19        (2) In Articles 8, 9, 10, 11, and 12, "highest average
20    annual salary for any 4 consecutive years within the last
21    10 years of service immediately preceding the date of
22    withdrawal".
23        (3) In Article 13, "average final salary".
24        (4) In Article 14, "final average compensation".
25        (5) In Article 17, "average salary".
26        (6) In Section 22-207, "wages or salary received by

 

 

HB5211- 19 -LRB103 38400 RPS 68535 b

1    him at the date of retirement or discharge".
2    A member of the Teachers' Retirement System of the State
3of Illinois who retires on or after June 1, 2021 and for whom
4the 2020-2021 school year is used in the calculation of the
5member's final average salary shall use the higher of the
6following for the purpose of determining the member's final
7average salary:
8        (A) the amount otherwise calculated under the first
9    paragraph of this subsection; or
10        (B) an amount calculated by the Teachers' Retirement
11    System of the State of Illinois using the average of the
12    monthly (or annual) salary obtained by dividing the total
13    salary or earnings calculated under Article 16 applicable
14    to the member or participant during the 96 months (or 8
15    years) of service within the last 120 months (or 10 years)
16    of service in which the total salary or earnings
17    calculated under the Article was the highest by the number
18    of months (or years) of service in that period.
19    (b-5) Beginning on January 1, 2011, for all purposes under
20this Code (including without limitation the calculation of
21benefits and employee contributions), the annual earnings,
22salary, or wages (based on the plan year) of a member or
23participant to whom this Section applies shall not exceed
24$106,800; however, that amount shall annually thereafter be
25increased by the lesser of (i) 3% of that amount, including all
26previous adjustments, or (ii) one-half the annual unadjusted

 

 

HB5211- 20 -LRB103 38400 RPS 68535 b

1percentage increase (but not less than zero) in the consumer
2price index-u for the 12 months ending with the September
3preceding each November 1, including all previous adjustments.
4    For the purposes of this Section, "consumer price index-u"
5means the index published by the Bureau of Labor Statistics of
6the United States Department of Labor that measures the
7average change in prices of goods and services purchased by
8all urban consumers, United States city average, all items,
91982-84 = 100. The new amount resulting from each annual
10adjustment shall be determined by the Public Pension Division
11of the Department of Insurance and made available to the
12boards of the retirement systems and pension funds by November
131 of each year.
14    (b-10) Beginning on January 1, 2024, for all purposes
15under this Code (including, without limitation, the
16calculation of benefits and employee contributions), the
17annual earnings, salary, or wages (based on the plan year) of a
18member or participant under Article 9 to whom this Section
19applies shall include an annual earnings, salary, or wage cap
20that tracks the Social Security wage base. Maximum annual
21earnings, wages, or salary shall be the annual contribution
22and benefit base established for the applicable year by the
23Commissioner of the Social Security Administration under the
24federal Social Security Act.
25    However, in no event shall the annual earnings, salary, or
26wages for the purposes of this Article and Article 9 exceed any

 

 

HB5211- 21 -LRB103 38400 RPS 68535 b

1limitation imposed on annual earnings, salary, or wages under
2Section 1-117. Under no circumstances shall the maximum amount
3of annual earnings, salary, or wages be greater than the
4amount set forth in this subsection (b-10) as a result of
5reciprocal service or any provisions regarding reciprocal
6services, nor shall the Fund under Article 9 be required to pay
7any refund as a result of the application of this maximum
8annual earnings, salary, and wage cap.
9    Nothing in this subsection (b-10) shall cause or otherwise
10result in any retroactive adjustment of any employee
11contributions. Nothing in this subsection (b-10) shall cause
12or otherwise result in any retroactive adjustment of
13disability or other payments made between January 1, 2011 and
14January 1, 2024.
15    (c) A member or participant is entitled to a retirement
16annuity upon written application if he or she has attained age
1767 (age 65, with respect to service under Article 12 that is
18subject to this Section, for a member or participant under
19Article 12 who first becomes a member or participant under
20Article 12 on or after January 1, 2022 or who makes the
21election under item (i) of subsection (d-15) of this Section)
22and has at least 10 years of service credit and is otherwise
23eligible under the requirements of the applicable Article.
24    A member or participant who has attained age 62 (age 60,
25with respect to service under Article 12 that is subject to
26this Section, for a member or participant under Article 12 who

 

 

HB5211- 22 -LRB103 38400 RPS 68535 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) of this Section) and has at least 10 years
4of service credit and is otherwise eligible under the
5requirements of the applicable Article may elect to receive
6the lower retirement annuity provided in subsection (d) of
7this Section.
8    (c-5) (Blank) A person who first becomes a member or a
9participant subject to this Section on or after July 6, 2017
10(the effective date of Public Act 100-23), notwithstanding any
11other provision of this Code to the contrary, is entitled to a
12retirement annuity under Article 8 or Article 11 upon written
13application if he or she has attained age 65 and has at least
1410 years of service credit and is otherwise eligible under the
15requirements of Article 8 or Article 11 of this Code,
16whichever is applicable.
17    (d) The retirement annuity of a member or participant who
18is retiring after attaining age 62 (age 60, with respect to
19service under Article 12 that is subject to this Section, for a
20member or participant under Article 12 who first becomes a
21member or participant under Article 12 on or after January 1,
222022 or who makes the election under item (i) of subsection
23(d-15) of this Section) with at least 10 years of service
24credit shall be reduced by one-half of 1% for each full month
25that the member's age is under age 67 (age 65, with respect to
26service under Article 12 that is subject to this Section, for a

 

 

HB5211- 23 -LRB103 38400 RPS 68535 b

1member or participant under Article 12 who first becomes a
2member or participant under Article 12 on or after January 1,
32022 or who makes the election under item (i) of subsection
4(d-15) of this Section).
5    (d-5) (Blank). The retirement annuity payable under
6Article 8 or Article 11 to an eligible person subject to
7subsection (c-5) of this Section who is retiring at age 60 with
8at least 10 years of service credit shall be reduced by
9one-half of 1% for each full month that the member's age is
10under age 65.
11    (d-10) Each person who first became a member or
12participant under Article 8 or Article 11 of this Code on or
13after January 1, 2011 and prior to July 6, 2017 (the effective
14date of Public Act 100-23) shall make an irrevocable election
15either:
16        (i) to be eligible for the reduced retirement age
17    provided in subsections (c-5) and (d-5) of this Section,
18    the eligibility for which is conditioned upon the member
19    or participant agreeing to the increases in employee
20    contributions for age and service annuities provided in
21    subsection (a-5) of Section 8-174 of this Code (for
22    service under Article 8) or subsection (a-5) of Section
23    11-170 of this Code (for service under Article 11); or
24        (ii) to not agree to item (i) of this subsection
25    (d-10), in which case the member or participant shall
26    continue to be subject to the retirement age provisions in

 

 

HB5211- 24 -LRB103 38400 RPS 68535 b

1    subsections (c) and (d) of this Section and the employee
2    contributions for age and service annuity as provided in
3    subsection (a) of Section 8-174 of this Code (for service
4    under Article 8) or subsection (a) of Section 11-170 of
5    this Code (for service under Article 11).
6    The election provided for in this subsection shall be made
7between October 1, 2017 and November 15, 2017. A person
8subject to this subsection who makes the required election
9shall remain bound by that election, except that an election
10made under this subsection is rescinded by operation of law
11and such person is subject to the provisions otherwise
12applicable to a participant who first become a participant
13under Article 8 or Article 11 on or after January 1, 2011. A
14person subject to this subsection who fails for any reason to
15make the required election within the time specified in this
16subsection shall be deemed to have made the election under
17item (ii).
18    (d-15) Each person who first becomes a member or
19participant under Article 12 on or after January 1, 2011 and
20prior to January 1, 2022 shall make an irrevocable election
21either:
22        (i) to be eligible for the reduced retirement age
23    specified in subsections (c) and (d) of this Section, the
24    eligibility for which is conditioned upon the member or
25    participant agreeing to the increase in employee
26    contributions for service annuities specified in

 

 

HB5211- 25 -LRB103 38400 RPS 68535 b

1    subsection (b) of Section 12-150; or
2        (ii) to not agree to item (i) of this subsection
3    (d-15), in which case the member or participant shall not
4    be eligible for the reduced retirement age specified in
5    subsections (c) and (d) of this Section and shall not be
6    subject to the increase in employee contributions for
7    service annuities specified in subsection (b) of Section
8    12-150.
9    The election provided for in this subsection shall be made
10between January 1, 2022 and April 1, 2022. A person subject to
11this subsection who makes the required election shall remain
12bound by that election, except that an election made under
13this subsection is rescinded by operation of law and such
14person is subject to the provisions otherwise applicable to a
15participant who first become a participant under Article 12 on
16or after January 1, 2011. A person subject to this subsection
17who fails for any reason to make the required election within
18the time specified in this subsection shall be deemed to have
19made the election under item (ii).
20    (e) Any retirement annuity or supplemental annuity shall
21be subject to annual increases on the January 1 occurring
22either on or after the attainment of age 67 (age 65, with
23respect to service under Article 12 that is subject to this
24Section, for a member or participant under Article 12 who
25first becomes a member or participant under Article 12 on or
26after January 1, 2022 or who makes the election under item (i)

 

 

HB5211- 26 -LRB103 38400 RPS 68535 b

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

 

 

HB5211- 27 -LRB103 38400 RPS 68535 b

1otherwise eligible survivor or widow of a retired member or
2participant who first became a member or participant on or
3after January 1, 2011 shall be in the amount of 66 2/3% of the
4retired member's or participant's retirement annuity at the
5date of death. In the case of the death of a member or
6participant who has not retired and who first became a member
7or participant on or after January 1, 2011, eligibility for a
8survivor's or widow's annuity shall be determined by the
9applicable Article of this Code. The initial benefit shall be
1066 2/3% of the earned annuity without a reduction due to age. A
11child's annuity of an otherwise eligible child shall be in the
12amount prescribed under each Article if applicable. Any
13survivor's or widow's annuity shall be increased (1) on each
14January 1 occurring on or after the commencement of the
15annuity if the deceased member died while receiving a
16retirement annuity or (2) in other cases, on each January 1
17occurring after the first anniversary of the commencement of
18the annuity. Each annual increase shall be calculated at 3% or
19one-half the annual unadjusted percentage increase (but not
20less than zero) in the consumer price index-u for the 12 months
21ending with the September preceding each November 1, whichever
22is less, of the originally granted survivor's annuity. If the
23annual unadjusted percentage change in the consumer price
24index-u for the 12 months ending with the September preceding
25each November 1 is zero or there is a decrease, then the
26annuity shall not be increased.

 

 

HB5211- 28 -LRB103 38400 RPS 68535 b

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

 

 

HB5211- 29 -LRB103 38400 RPS 68535 b

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

 

 

HB5211- 30 -LRB103 38400 RPS 68535 b

1    (j) Except for conflicts between this Section and Section
21-163, in In the case of a conflict between the provisions of
3this Section and any other provision of this Code, the
4provisions of this Section shall control.
5(Source: P.A. 101-610, eff. 1-1-20; 102-16, eff. 6-17-21;
6102-210, eff. 1-1-22; 102-263, eff. 8-6-21; 102-813, eff.
75-13-22.)
 
8    (Text of Section from P.A. 102-956)
9    Sec. 1-160. Provisions applicable to new hires.
10    (a) The provisions of this Section apply to a person who,
11on or after January 1, 2011, first becomes a member or a
12participant under any reciprocal retirement system or pension
13fund established under this Code, other than a retirement
14system or pension fund established under Article 2, 3, 4, 5, 6,
157, 15, or 18 of this Code, notwithstanding any other provision
16of this Code to the contrary, but do not apply to any
17self-managed plan established under this Code or to any
18participant of the retirement plan established under Section
1922-101; except that this Section applies to a person who
20elected to establish alternative credits by electing in
21writing after January 1, 2011, but before August 8, 2011,
22under Section 7-145.1 of this Code. Notwithstanding anything
23to the contrary in this Section, for purposes of this Section,
24a person who is a Tier 1 regular employee as defined in Section
257-109.4 of this Code or who participated in a retirement

 

 

HB5211- 31 -LRB103 38400 RPS 68535 b

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

 

 

HB5211- 32 -LRB103 38400 RPS 68535 b

1member or participant of an affected pension fund on or after 6
2months after the resolution or ordinance date, as defined in
3Section 1-162, unless that person elects under subsection (c)
4of Section 1-162 to receive the benefits provided under this
5Section and the applicable provisions of the Article under
6which he or she is a member or participant.
7    (b) "Final average salary" means, except as otherwise
8provided in this subsection, the average monthly (or annual)
9salary obtained by dividing the total salary or earnings
10calculated under the Article applicable to the member or
11participant during the 96 consecutive months (or 8 consecutive
12years) of service within the last 120 months (or 10 years) of
13service in which the total salary or earnings calculated under
14the applicable Article was the highest by the number of months
15(or years) of service in that period. For the purposes of a
16person who first becomes a member or participant of any
17retirement system or pension fund to which this Section
18applies on or after January 1, 2011, in this Code, "final
19average salary" shall be substituted for the following:
20        (1) (Blank).
21        (2) In Articles 8, 9, 10, 11, and 12, "highest average
22    annual salary for any 4 consecutive years within the last
23    10 years of service immediately preceding the date of
24    withdrawal".
25        (3) In Article 13, "average final salary".
26        (4) In Article 14, "final average compensation".

 

 

HB5211- 33 -LRB103 38400 RPS 68535 b

1        (5) In Article 17, "average salary".
2        (6) In Section 22-207, "wages or salary received by
3    him at the date of retirement or discharge".
4    A member of the Teachers' Retirement System of the State
5of Illinois who retires on or after June 1, 2021 and for whom
6the 2020-2021 school year is used in the calculation of the
7member's final average salary shall use the higher of the
8following for the purpose of determining the member's final
9average salary:
10        (A) the amount otherwise calculated under the first
11    paragraph of this subsection; or
12        (B) an amount calculated by the Teachers' Retirement
13    System of the State of Illinois using the average of the
14    monthly (or annual) salary obtained by dividing the total
15    salary or earnings calculated under Article 16 applicable
16    to the member or participant during the 96 months (or 8
17    years) of service within the last 120 months (or 10 years)
18    of service in which the total salary or earnings
19    calculated under the Article was the highest by the number
20    of months (or years) of service in that period.
21    (b-5) Beginning on January 1, 2011, for all purposes under
22this Code (including without limitation the calculation of
23benefits and employee contributions), the annual earnings,
24salary, or wages (based on the plan year) of a member or
25participant to whom this Section applies shall not exceed
26$106,800; however, that amount shall annually thereafter be

 

 

HB5211- 34 -LRB103 38400 RPS 68535 b

1increased by the lesser of (i) 3% of that amount, including all
2previous adjustments, or (ii) one-half the annual unadjusted
3percentage increase (but not less than zero) in the consumer
4price index-u for the 12 months ending with the September
5preceding each November 1, including all previous adjustments.
6    For the purposes of this Section, "consumer price index-u"
7means the index published by the Bureau of Labor Statistics of
8the United States Department of Labor that measures the
9average change in prices of goods and services purchased by
10all urban consumers, United States city average, all items,
111982-84 = 100. The new amount resulting from each annual
12adjustment shall be determined by the Public Pension Division
13of the Department of Insurance and made available to the
14boards of the retirement systems and pension funds by November
151 of each year.
16    (b-10) Beginning on January 1, 2024, for all purposes
17under this Code (including, without limitation, the
18calculation of benefits and employee contributions), the
19annual earnings, salary, or wages (based on the plan year) of a
20member or participant under Article 9 to whom this Section
21applies shall include an annual earnings, salary, or wage cap
22that tracks the Social Security wage base. Maximum annual
23earnings, wages, or salary shall be the annual contribution
24and benefit base established for the applicable year by the
25Commissioner of the Social Security Administration under the
26federal Social Security Act.

 

 

HB5211- 35 -LRB103 38400 RPS 68535 b

1    However, in no event shall the annual earnings, salary, or
2wages for the purposes of this Article and Article 9 exceed any
3limitation imposed on annual earnings, salary, or wages under
4Section 1-117. Under no circumstances shall the maximum amount
5of annual earnings, salary, or wages be greater than the
6amount set forth in this subsection (b-10) as a result of
7reciprocal service or any provisions regarding reciprocal
8services, nor shall the Fund under Article 9 be required to pay
9any refund as a result of the application of this maximum
10annual earnings, salary, and wage cap.
11    Nothing in this subsection (b-10) shall cause or otherwise
12result in any retroactive adjustment of any employee
13contributions. Nothing in this subsection (b-10) shall cause
14or otherwise result in any retroactive adjustment of
15disability or other payments made between January 1, 2011 and
16January 1, 2024.
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,

 

 

HB5211- 36 -LRB103 38400 RPS 68535 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) (Blank) A person who first becomes a member or a
11participant subject to this Section on or after July 6, 2017
12(the effective date of Public Act 100-23), notwithstanding any
13other provision 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

 

 

HB5211- 37 -LRB103 38400 RPS 68535 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) (Blank). The retirement annuity payable under
8Article 8 or Article 11 to an eligible person subject to
9subsection (c-5) of this Section who is retiring at age 60 with
10at least 10 years of service credit shall be reduced by
11one-half of 1% for each full month that the member's age is
12under age 65.
13    (d-10) Each person who first became a member or
14participant under Article 8 or Article 11 of this Code on or
15after January 1, 2011 and prior to July 6, 2017 (the effective
16date of Public Act 100-23) shall make an irrevocable election
17either:
18        (i) to be eligible for the reduced retirement age
19    provided in subsections (c-5) and (d-5) of this Section,
20    the eligibility for which is conditioned upon the member
21    or participant agreeing to the increases in employee
22    contributions for age and service annuities provided in
23    subsection (a-5) of Section 8-174 of this Code (for
24    service under Article 8) or subsection (a-5) of Section
25    11-170 of this Code (for service under Article 11); or
26        (ii) to not agree to item (i) of this subsection

 

 

HB5211- 38 -LRB103 38400 RPS 68535 b

1    (d-10), in which case the member or participant shall
2    continue to be subject to the retirement age provisions in
3    subsections (c) and (d) of this Section and the employee
4    contributions for age and service annuity as provided in
5    subsection (a) of Section 8-174 of this Code (for service
6    under Article 8) or subsection (a) of Section 11-170 of
7    this Code (for service under Article 11).
8    The election provided for in this subsection shall be made
9between October 1, 2017 and November 15, 2017. A person
10subject to this subsection who makes the required election
11shall remain bound by that election, except that an election
12made under this subsection is rescinded by operation of law
13and such person is subject to the provisions otherwise
14applicable to a participant who first become a participant
15under Article 8 or Article 11 on or after January 1, 2011. A
16person subject to this subsection who fails for any reason to
17make the required election within the time specified in this
18subsection shall be deemed to have made the election under
19item (ii).
20    (d-15) Each person who first becomes a member or
21participant under Article 12 on or after January 1, 2011 and
22prior to January 1, 2022 shall make an irrevocable election
23either:
24        (i) to be eligible for the reduced retirement age
25    specified in subsections (c) and (d) of this Section, the
26    eligibility for which is conditioned upon the member or

 

 

HB5211- 39 -LRB103 38400 RPS 68535 b

1    participant agreeing to the increase in employee
2    contributions for service annuities specified in
3    subsection (b) of Section 12-150; or
4        (ii) to not agree to item (i) of this subsection
5    (d-15), in which case the member or participant shall not
6    be eligible for the reduced retirement age specified in
7    subsections (c) and (d) of this Section and shall not be
8    subject to the increase in employee contributions for
9    service annuities specified in subsection (b) of Section
10    12-150.
11    The election provided for in this subsection shall be made
12between January 1, 2022 and April 1, 2022. A person subject to
13this subsection who makes the required election shall remain
14bound by that election, except that an election made under
15this subsection is rescinded by operation of law and such
16person is subject to the provisions otherwise applicable to a
17participant who first become a participant under Article 12 on
18or after January 1, 2011. 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

 

 

HB5211- 40 -LRB103 38400 RPS 68535 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

 

 

HB5211- 41 -LRB103 38400 RPS 68535 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

 

 

HB5211- 42 -LRB103 38400 RPS 68535 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
7investigator for the Office of the Attorney General, an arson
8investigator, a Commerce Commission police officer,
9investigator for the Department of Revenue or the Illinois
10Gaming Board, a security employee of the Department of
11Corrections or the Department of Juvenile Justice, or a
12security employee of the Department of Innovation and
13Technology, as those terms are defined in subsection (b) and
14subsection (c) of Section 14-110. A person who meets the
15requirements of this Section is entitled to an annuity
16calculated under the provisions of Section 14-110, in lieu of
17the regular or minimum retirement annuity, only if the person
18has withdrawn from service with not less than 20 years of
19eligible creditable service and has attained age 60,
20regardless of whether the attainment of age 60 occurs while
21the person is still in service.
22    (h) If a person who first becomes a member or a participant
23of a retirement system or pension fund subject to this Section
24on or after January 1, 2011 is receiving a retirement annuity
25or retirement pension under that system or fund and becomes a
26member or participant under any other system or fund created

 

 

HB5211- 43 -LRB103 38400 RPS 68535 b

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

 

 

HB5211- 44 -LRB103 38400 RPS 68535 b

1retirement pension payments shall resume and, if appropriate,
2be recalculated under the applicable provisions of this Code.
3    (i) (Blank).
4    (j) Except for conflicts between this Section and Section
51-163, in 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. 102-16, eff. 6-17-21; 102-210, eff. 1-1-22;
9102-263, eff. 8-6-21; 102-956, eff. 5-27-22; 103-529, eff.
108-11-23.)
 
11    (40 ILCS 5/1-163 new)
12    Sec. 1-163. Pension benefits for certain persons who first
13become participants on or after January 1, 2011.
14    (a) Notwithstanding any provision of law to the contrary,
15including Section 1-160, this Section applies to a person who,
16on or after January 1, 2011, first becomes a member or
17participant under a pension fund or retirement system
18established under Article 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, or
1913. To the extent that any provision of this Section conflicts
20with a provision under those Articles or Section 1-160, this
21Section controls, except for a conflict that would result in a
22diminishment or impairment of a pension benefit to a member or
23participant.
24    (b) Beginning on January 1, 2025, for all purposes under
25this Code (including, without limitation, the calculation of

 

 

HB5211- 45 -LRB103 38400 RPS 68535 b

1benefits and employee contributions) the annual earnings,
2salary, or wages (based on the plan year) of a member or
3participant to whom this Section applies shall not exceed the
4Social Security wage base for the applicable plan year. In
5this subsection, "Social Security wage base" means the
6contribution and benefit base calculated for the calendar year
7in question by the Commissioner of Social Security under
8Section 230 of the federal Social Security Act (42 U.S.C.
9430).
10    (c) A participant or member to whom this Section applies
11shall be entitled to a retirement annuity upon written
12application if he or she:
13        (1) has attained age 62, has at least 35 years of
14    service credit, and is otherwise eligible under the
15    requirements of the applicable Article;
16        (2) has attained age 64, has at least 20 years of
17    service credit, and is otherwise eligible under the
18    requirements of the applicable Article; or
19        (3) has attained age 67, has at least 10 years of
20    service credit, and is otherwise eligible under the
21    requirements of the applicable Article.
22    (d) The retirement annuity of a member or participant who
23is retiring after attaining age 57 with at least 35 years of
24service credit shall be reduced by one-half of 1% for each full
25month that the member's age is under age 62.
26    The retirement annuity of a member or participant who is

 

 

HB5211- 46 -LRB103 38400 RPS 68535 b

1retiring after attaining age 59 with at least 20 years of
2service credit shall be reduced by one-half of 1% for each full
3month that the member's age is under age 64.
4    The retirement annuity of a member or participant who is
5retiring after attaining age 62 with at least 10 years of
6service credit shall be reduced by one-half of 1% for each full
7month that the member's age is under age 67.
8    (e) Any retirement annuity or supplemental annuity shall
9be subject to annual increases on January 1 beginning with the
10January following the member's or participant's first annuity
11payment date. The annual increase shall be calculated at 3% of
12the originally granted retirement annuity.
 
13    (40 ILCS 5/3-153 new)
14    Sec. 3-153. Application of Section 1-163. To the extent
15that any provision of this Article conflicts with Section
161-163, Section 1-163 controls, unless the application of
17Section 1-163 would result in a diminishment or impairment of
18a benefit.
 
19    (40 ILCS 5/4-145 new)
20    Sec. 4-145. Application of Section 1-163. To the extent
21that any provision of this Article conflicts with Section
221-163, Section 1-163 controls, unless the application of
23Section 1-163 would result in a diminishment or impairment of
24a benefit.
 

 

 

HB5211- 47 -LRB103 38400 RPS 68535 b

1    (40 ILCS 5/5-239 new)
2    Sec. 5-239. Application of Section 1-163. To the extent
3that any provision of this Article conflicts with Section
41-163, Section 1-163 controls, unless the application of
5Section 1-163 would result in a diminishment or impairment of
6a benefit.
 
7    (40 ILCS 5/6-231 new)
8    Sec. 6-231. Application of Section 1-163. To the extent
9that any provision of this Article conflicts with Section
101-163, Section 1-163 controls, unless the application of
11Section 1-163 would result in a diminishment or impairment of
12a benefit.
 
13    (40 ILCS 5/7-226 new)
14    Sec. 7-226. Application of Section 1-163. To the extent
15that any provision of this Article conflicts with Section
161-163, Section 1-163 controls, unless the application of
17Section 1-163 would result in a diminishment or impairment of
18a benefit.
 
19    (40 ILCS 5/8-251.5 new)
20    Sec. 8-251.5. Application of Section 1-163. To the extent
21that any provision of this Article conflicts with Section
221-163, Section 1-163 controls, unless the application of

 

 

HB5211- 48 -LRB103 38400 RPS 68535 b

1Section 1-163 would result in a diminishment or impairment of
2a benefit.
 
3    (40 ILCS 5/9-242 new)
4    Sec. 9-242. Application of Section 1-163. To the extent
5that any provision of this Article conflicts with Section
61-163, Section 1-163 controls, unless the application of
7Section 1-163 would result in a diminishment or impairment of
8a benefit.
 
9    (40 ILCS 5/10-110 new)
10    Sec. 10-110. Application of Section 1-163. To the extent
11that any provision of this Article conflicts with Section
121-163, Section 1-163 controls, unless the application of
13Section 1-163 would result in a diminishment or impairment of
14a benefit.
 
15    (40 ILCS 5/11-233 new)
16    Sec. 11-233. Application of Section 1-163. To the extent
17that any provision of this Article conflicts with Section
181-163, Section 1-163 controls, unless the application of
19Section 1-163 would result in a diminishment or impairment of
20a benefit.
 
21    (40 ILCS 5/12-196 new)
22    Sec. 12-196. Application of Section 1-163. To the extent

 

 

HB5211- 49 -LRB103 38400 RPS 68535 b

1that any provision of this Article conflicts with Section
21-163, Section 1-163 controls, unless the application of
3Section 1-163 would result in a diminishment or impairment of
4a benefit.
 
5    (40 ILCS 5/13-217 new)
6    Sec. 13-217. Application of Section 1-163. To the extent
7that any provision of this Article conflicts with Section
81-163, Section 1-163 controls, unless the application of
9Section 1-163 would result in a diminishment or impairment of
10a benefit.
 
11    Section 90. The State Mandates Act is amended by adding
12Section 8.48 as follows:
 
13    (30 ILCS 805/8.48 new)
14    Sec. 8.48. Exempt mandate. Notwithstanding Sections 6 and
158 of this Act, no reimbursement by the State is required for
16the implementation of any mandate created by this amendatory
17Act of the 103rd General Assembly.

 

 

HB5211- 50 -LRB103 38400 RPS 68535 b

1 INDEX
2 Statutes amended in order of appearance
3    40 ILCS 5/1-103.4 new
4    40 ILCS 5/1-160
5    40 ILCS 5/1-163 new
6    40 ILCS 5/3-153 new
7    40 ILCS 5/4-145 new
8    40 ILCS 5/5-239 new
9    40 ILCS 5/6-231 new
10    40 ILCS 5/7-226 new
11    40 ILCS 5/8-251.5 new
12    40 ILCS 5/9-242 new
13    40 ILCS 5/10-110 new
14    40 ILCS 5/11-233 new
15    40 ILCS 5/12-196 new
16    40 ILCS 5/13-217 new
17    30 ILCS 805/8.48 new