Rep. David Harris

Filed: 3/7/2013

 

 


 

 


 
09800HB1154ham009LRB098 08482 EFG 42440 a

1
AMENDMENT TO HOUSE BILL 1154

2    AMENDMENT NO. ______. Amend House Bill 1154, AS AMENDED, by
3replacing everything after the enacting clause with the
4following:
 
5    "Section 3. The Illinois Public Labor Relations Act is
6amended by changing Sections 4 and 15 as follows:
 
7    (5 ILCS 315/4)  (from Ch. 48, par. 1604)
8    Sec. 4. Management Rights. Employers shall not be required
9to bargain over matters of inherent managerial policy, which
10shall include such areas of discretion or policy as the
11functions of the employer, standards of services, its overall
12budget, the organizational structure and selection of new
13employees, examination techniques and direction of employees.
14Employers, however, shall be required to bargain collectively
15with regard to policy matters directly affecting wages, hours
16and terms and conditions of employment as well as the impact

 

 

09800HB1154ham009- 2 -LRB098 08482 EFG 42440 a

1thereon upon request by employee representatives, but
2excluding the changes, the impact of changes, and the
3implementation of the changes set forth in this amendatory Act
4of the 98th General Assembly.
5    To preserve the rights of employers and exclusive
6representatives which have established collective bargaining
7relationships or negotiated collective bargaining agreements
8prior to the effective date of this Act, employers shall be
9required to bargain collectively with regard to any matter
10concerning wages, hours or conditions of employment about which
11they have bargained for and agreed to in a collective
12bargaining agreement prior to the effective date of this Act,
13but excluding the changes, the impact of changes, and the
14implementation of the changes set forth in this amendatory Act
15of the 98th General Assembly.
16    The chief judge of the judicial circuit that employs a
17public employee who is a court reporter, as defined in the
18Court Reporters Act, has the authority to hire, appoint,
19promote, evaluate, discipline, and discharge court reporters
20within that judicial circuit.
21    Nothing in this amendatory Act of the 94th General Assembly
22shall be construed to intrude upon the judicial functions of
23any court. This amendatory Act of the 94th General Assembly
24applies only to nonjudicial administrative matters relating to
25the collective bargaining rights of court reporters.
26(Source: P.A. 94-98, eff. 7-1-05.)
 

 

 

09800HB1154ham009- 3 -LRB098 08482 EFG 42440 a

1    (5 ILCS 315/15)  (from Ch. 48, par. 1615)
2    Sec. 15. Act Takes Precedence.
3    (a) In case of any conflict between the provisions of this
4Act and any other law (other than Section 5 of the State
5Employees Group Insurance Act of 1971 and other than the
6changes made to the Illinois Pension Code by Public Act 96-889
7and the changes, impact of changes, and the implementation of
8the changes made to the Illinois Pension Code by this
9amendatory Act of the 98th 96th General Assembly), executive
10order or administrative regulation relating to wages, hours and
11conditions of employment and employment relations, the
12provisions of this Act or any collective bargaining agreement
13negotiated thereunder shall prevail and control. Nothing in
14this Act shall be construed to replace or diminish the rights
15of employees established by Sections 28 and 28a of the
16Metropolitan Transit Authority Act, Sections 2.15 through 2.19
17of the Regional Transportation Authority Act. The provisions of
18this Act are subject to the changes made by this amendatory Act
19of the 98th General Assembly and Section 5 of the State
20Employees Group Insurance Act of 1971. Nothing in this Act
21shall be construed to replace the necessity of complaints
22against a sworn peace officer, as defined in Section 2(a) of
23the Uniform Peace Officer Disciplinary Act, from having a
24complaint supported by a sworn affidavit.
25    (b) Except as provided in subsection (a) above, any

 

 

09800HB1154ham009- 4 -LRB098 08482 EFG 42440 a

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

 

 

09800HB1154ham009- 5 -LRB098 08482 EFG 42440 a

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

 

 

09800HB1154ham009- 6 -LRB098 08482 EFG 42440 a

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

 

 

09800HB1154ham009- 7 -LRB098 08482 EFG 42440 a

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

 

 

09800HB1154ham009- 8 -LRB098 08482 EFG 42440 a

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

 

 

09800HB1154ham009- 9 -LRB098 08482 EFG 42440 a

1changing Sections 20 and 25 as follows:
 
2    (30 ILCS 122/20)
3    Sec. 20. Pension Stabilization Fund.
4    (a) The Pension Stabilization Fund is hereby created as a
5special fund in the State treasury. Moneys in the fund shall be
6used for the sole purpose of making payments to the designated
7retirement systems as provided in Section 25.
8    (b) For each fiscal year when the General Assembly's
9appropriations and transfers or diversions as required by law
10from general funds do not exceed 99% of the estimated general
11funds revenues pursuant to subsection (a) of Section 10, the
12Comptroller shall transfer from the General Revenue Fund as
13provided by this Section a total amount equal to 0.5% of the
14estimated general funds revenues to the Pension Stabilization
15Fund.
16    (c) For each fiscal year through State fiscal year 2013,
17when the General Assembly's appropriations and transfers or
18diversions as required by law from general funds do not exceed
1998% of the estimated general funds revenues pursuant to
20subsection (b) of Section 10, the Comptroller shall transfer
21from the General Revenue Fund as provided by this Section a
22total amount equal to 1.0% of the estimated general funds
23revenues to the Pension Stabilization Fund.
24    (c-10) In State fiscal year 2020 and each fiscal year
25thereafter, the State Comptroller shall order transferred and

 

 

09800HB1154ham009- 10 -LRB098 08482 EFG 42440 a

1the State Treasurer shall transfer $1,000,000,000 from the
2General Revenue Fund to the Pension Stabilization Fund.
3    (c-15) The transfers made pursuant to subsection (c-10) of
4this Section shall continue through State fiscal year 2045 or
5until each of the designated retirement systems, as defined in
6Section 25, has achieved the funding ratio prescribed by law
7for that retirement system, whichever occurs first; provided
8that those transfers shall not be made after any provision of
9this Act that is designated as inseverable in Section 97 of
10this Act is declared to be unconstitutional or invalid other
11than as applied.
12    (d) The Comptroller shall transfer 1/12 of the total amount
13to be transferred each fiscal year under this Section into the
14Pension Stabilization Fund on the first day of each month of
15that fiscal year or as soon thereafter as possible; except that
16the final transfer of the fiscal year shall be made as soon as
17practical after the August 31 following the end of the fiscal
18year.
19    Until State fiscal year 2014, before Before the final
20transfer for a fiscal year is made, the Comptroller shall
21reconcile the estimated general funds revenues used in
22calculating the other transfers under this Section for that
23fiscal year with the actual general funds revenues for that
24fiscal year. The final transfer for the fiscal year shall be
25adjusted so that the total amount transferred under this
26Section for that fiscal year is equal to the percentage

 

 

09800HB1154ham009- 11 -LRB098 08482 EFG 42440 a

1specified in subsection (b) or (c) of this Section, whichever
2is applicable, of the actual general funds revenues for that
3fiscal year. The actual general funds revenues for the fiscal
4year shall be calculated in a manner consistent with subsection
5(c) of Section 10 of this Act.
6(Source: P.A. 94-839, eff. 6-6-06.)
 
7    (30 ILCS 122/25)
8    Sec. 25. Transfers from the Pension Stabilization Fund.
9    (a) As used in this Section, "designated retirement
10systems" means:
11        (1) the State Employees' Retirement System of
12    Illinois;
13        (2) the Teachers' Retirement System of the State of
14    Illinois;
15        (3) the State Universities Retirement System;
16        (4) the Judges Retirement System of Illinois; and
17        (5) the General Assembly Retirement System.
18    (b) As soon as may be practical after any money is
19deposited into the Pension Stabilization Fund, the State
20Comptroller shall apportion the deposited amount among the
21designated retirement systems and the State Comptroller and
22State Treasurer shall pay the apportioned amounts to the
23designated retirement systems. The amount deposited shall be
24apportioned among the designated retirement systems in the same
25proportion as their respective portions of the total actuarial

 

 

09800HB1154ham009- 12 -LRB098 08482 EFG 42440 a

1reserve deficiency of the designated retirement systems, as
2most recently determined by the Governor's Office of Management
3and Budget. Amounts received by a designated retirement system
4under this Section shall be used for funding the unfunded
5liabilities of the retirement system. Payments under this
6Section are authorized by the continuing appropriation under
7Section 1.7 of the State Pension Funds Continuing Appropriation
8Act.
9    (c) At the request of the State Comptroller, the Governor's
10Office of Management and Budget shall determine the individual
11and total actuarial reserve deficiencies of the designated
12retirement systems. For this purpose, the Governor's Office of
13Management and Budget shall consider the latest available audit
14and actuarial reports of each of the retirement systems and the
15relevant reports and statistics of the Public Pension Division
16of the Department of Financial and Professional Regulation.
17    (d) Payments to the designated retirement systems under
18this Section shall be in addition to, and not in lieu of, any
19State contributions required under Section 2-124, 14-131,
2015-155, 16-158, or 18-131 of the Illinois Pension Code.
21    Payments to the designated retirement systems under this
22Section, transferred after the effective date of this
23amendatory Act of the 98th General Assembly, do not reduce and
24do not constitute payment of any portion of the required State
25contribution under Article 2, 14, 15, 16, or 18 of the Illinois
26Pension Code in that fiscal year. Such amounts shall not

 

 

09800HB1154ham009- 13 -LRB098 08482 EFG 42440 a

1reduce, and shall not be included in the calculation of, the
2required State contribution under Article 2, 14, 15, 16, or 18
3of the Illinois Pension Code in any future year, until the
4designated retirement system has received payment of
5contributions pursuant to this Act.
6(Source: P.A. 94-839, eff. 6-6-06.)
 
7    Section 20. The Illinois Pension Code is amended by
8changing Sections 1-103.3, 1-160, 2-108, 2-119, 2-119.1,
92-121.1, 2-124, 2-125, 2-126, 2-134, 2-162, 14-103.10, 14-107,
1014-108, 14-110, 14-114, 14-131, 14-132, 14-133, 14-135.08,
1114-152.1, 15-111, 15-113.6, 15-113.7, 15-135, 15-136, 15-139,
1215-153.2, 15-155, 15-156, 15-157, 15-165, 15-198, 16-121,
1316-132, 16-133, 16-133.1, 16-152, 16-158, 16-158.1, 16-203,
1420-121, 20-123, 20-124, and 20-125 and by adding Sections
152-105.1, 2-105.2, 14-103.40, 14-103.41, 15-103.4, 15-107.1,
1615-107.2, 15-107.3, 15-155.1, 15-158.5, 16-106.4, 16-106.5,
1716-106.6, 16-152.8, and 16-158.2 as follows:
 
18    (40 ILCS 5/1-103.3)
19    Sec. 1-103.3. Application of 1994 amendment; funding
20standard.
21    (a) The provisions of Public Act 88-593 this amendatory Act
22of 1994 that change the method of calculating, certifying, and
23paying the required State contributions to the retirement
24systems established under Articles 2, 14, 15, 16, and 18 shall

 

 

09800HB1154ham009- 14 -LRB098 08482 EFG 42440 a

1first apply to the State contributions required for State
2fiscal year 1996.
3    (b) (Blank) The General Assembly declares that a funding
4ratio (the ratio of a retirement system's total assets to its
5total actuarial liabilities) of 90% is an appropriate goal for
6State-funded retirement systems in Illinois, and it finds that
7a funding ratio of 90% is now the generally-recognized norm
8throughout the nation for public employee retirement systems
9that are considered to be financially secure and funded in an
10appropriate and responsible manner.
11    (c) Every 5 years, beginning in 1999, the Commission on
12Government Forecasting and Accountability, in consultation
13with the affected retirement systems and the Governor's Office
14of Management and Budget (formerly Bureau of the Budget), shall
15consider and determine whether the funding goals 90% funding
16ratio adopted in Articles 2, 14, 15, 16, and 18 of this Code
17continue subsection (b) continues to represent an appropriate
18funding goals goal for those State-funded retirement systems in
19Illinois, and it shall report its findings and recommendations
20on this subject to the Governor and the General Assembly.
21(Source: P.A. 93-1067, eff. 1-15-05.)
 
22    (40 ILCS 5/1-160)
23    Sec. 1-160. Provisions applicable to new hires.
24    (a) The provisions of this Section apply to a person who,
25on or after January 1, 2011, first becomes a member or a

 

 

09800HB1154ham009- 15 -LRB098 08482 EFG 42440 a

1participant under any reciprocal retirement system or pension
2fund established under this Code, other than a retirement
3system or pension fund established under Article 2, 3, 4, 5, 6,
4or 18 of this Code, notwithstanding any other provision of this
5Code to the contrary, but do not apply (i) to any self-managed
6plan established under this Code, (ii) to any person with
7respect to service as a sheriff's law enforcement employee
8under Article 7, (iii) or to any participant of the retirement
9plan established under Section 22-101, or (iv) to any person
10who first becomes, on or after January 1, 2014, a Tier 3
11employee in a retirement system established under Article 15 or
1216 of this Code.
13    (b) "Final average salary" means the average monthly (or
14annual) salary obtained by dividing the total salary or
15earnings calculated under the Article applicable to the member
16or participant during the 96 consecutive months (or 8
17consecutive years) of service within the last 120 months (or 10
18years) of service in which the total salary or earnings
19calculated under the applicable Article was the highest by the
20number of months (or years) of service in that period. For the
21purposes of a person who first becomes a member or participant
22of any retirement system or pension fund to which this Section
23applies on or after January 1, 2011, in this Code, "final
24average salary" shall be substituted for the following:
25        (1) In Articles 7 (except for service as sheriff's law
26    enforcement employees) and 15, "final rate of earnings".

 

 

09800HB1154ham009- 16 -LRB098 08482 EFG 42440 a

1        (2) In Articles 8, 9, 10, 11, and 12, "highest average
2    annual salary for any 4 consecutive years within the last
3    10 years of service immediately preceding the date of
4    withdrawal".
5        (3) In Article 13, "average final salary".
6        (4) In Article 14, "final average compensation".
7        (5) In Article 17, "average salary".
8        (6) In Section 22-207, "wages or salary received by him
9    at the date of retirement or discharge".
10    (b-5) Beginning on January 1, 2011, for all purposes under
11this Code (including without limitation the calculation of
12benefits and employee contributions), the annual earnings,
13salary, or wages (based on the plan year) of a member or
14participant to whom this Section applies shall not exceed
15$106,800; however, that amount shall annually thereafter be
16increased by the lesser of (i) 3% of that amount, including all
17previous adjustments, or (ii) one-half the annual unadjusted
18percentage increase (but not less than zero) in the consumer
19price index-u for the 12 months ending with the September
20preceding each November 1, including all previous adjustments.
21    For the purposes of this Section, "consumer price index-u"
22means the index published by the Bureau of Labor Statistics of
23the United States Department of Labor that measures the average
24change in prices of goods and services purchased by all urban
25consumers, United States city average, all items, 1982-84 =
26100. The new amount resulting from each annual adjustment shall

 

 

09800HB1154ham009- 17 -LRB098 08482 EFG 42440 a

1be determined by the Public Pension Division of the Department
2of Insurance and made available to the boards of the retirement
3systems and pension funds by November 1 of each year.
4    (c) A member or participant is entitled to a retirement
5annuity upon written application if he or she has attained age
667 and has at least 10 years of service credit and is otherwise
7eligible under the requirements of the applicable Article.
8    A member or participant who has attained age 62 and has at
9least 10 years of service credit and is otherwise eligible
10under the requirements of the applicable Article may elect to
11receive the lower retirement annuity provided in subsection (d)
12of this Section.
13    (d) The retirement annuity of a member or participant who
14is retiring after attaining age 62 with at least 10 years of
15service credit shall be reduced by one-half of 1% for each full
16month that the member's age is under age 67.
17    (e) Any retirement annuity or supplemental annuity shall be
18subject to annual increases on the January 1 occurring either
19on or after the attainment of age 67 or the first anniversary
20of the annuity start date, whichever is later. Each annual
21increase shall be calculated at 3% or one-half the annual
22unadjusted percentage increase (but not less than zero) in the
23consumer price index-u for the 12 months ending with the
24September preceding each November 1, whichever is less, of the
25originally granted retirement annuity. If the annual
26unadjusted percentage change in the consumer price index-u for

 

 

09800HB1154ham009- 18 -LRB098 08482 EFG 42440 a

1the 12 months ending with the September preceding each November
21 is zero or there is a decrease, then the annuity shall not be
3increased.
4    (f) The initial survivor's or widow's annuity of an
5otherwise eligible survivor or widow of a retired member or
6participant who first became a member or participant on or
7after January 1, 2011 shall be in the amount of 66 2/3% of the
8retired member's or participant's retirement annuity at the
9date of death. In the case of the death of a member or
10participant who has not retired and who first became a member
11or participant on or after January 1, 2011, eligibility for a
12survivor's or widow's annuity shall be determined by the
13applicable Article of this Code. The initial benefit shall be
1466 2/3% of the earned annuity without a reduction due to age. A
15child's annuity of an otherwise eligible child shall be in the
16amount prescribed under each Article if applicable. Any
17survivor's or widow's annuity shall be increased (1) on each
18January 1 occurring on or after the commencement of the annuity
19if the deceased member died while receiving a retirement
20annuity or (2) in other cases, on each January 1 occurring
21after the first anniversary of the commencement of the annuity.
22Each annual increase shall be calculated at 3% or one-half the
23annual unadjusted percentage increase (but not less than zero)
24in the consumer price index-u for the 12 months ending with the
25September preceding each November 1, whichever is less, of the
26originally granted survivor's annuity. If the annual

 

 

09800HB1154ham009- 19 -LRB098 08482 EFG 42440 a

1unadjusted percentage change in the consumer price index-u for
2the 12 months ending with the September preceding each November
31 is zero or there is a decrease, then the annuity shall not be
4increased.
5    (g) The benefits in Section 14-110 apply only if the person
6is a State policeman, a fire fighter in the fire protection
7service of a department, or a security employee of the
8Department of Corrections or the Department of Juvenile
9Justice, as those terms are defined in subsection (b) of
10Section 14-110. A person who meets the requirements of this
11Section is entitled to an annuity calculated under the
12provisions of Section 14-110, in lieu of the regular or minimum
13retirement annuity, only if the person has withdrawn from
14service with not less than 20 years of eligible creditable
15service and has attained age 60, regardless of whether the
16attainment of age 60 occurs while the person is still in
17service.
18    (h) If a person who first becomes a member or a participant
19of a retirement system or pension fund subject to this Section
20on or after January 1, 2011 is receiving a retirement annuity
21or retirement pension under that system or fund and becomes a
22member or participant under any other system or fund created by
23this Code and is employed on a full-time basis, except for
24those members or participants exempted from the provisions of
25this Section under subsection (a) of this Section, then the
26person's retirement annuity or retirement pension under that

 

 

09800HB1154ham009- 20 -LRB098 08482 EFG 42440 a

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

 

 

09800HB1154ham009- 21 -LRB098 08482 EFG 42440 a

1established under Article 15 on or after January 1, 2011 shall
2have the option to enroll in the self-managed plan created
3under Section 15-158.2 of this Code.
4    (j) In the case of a conflict between the provisions of
5this Section and any other provision of this Code, the
6provisions of this Section shall control.
7(Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11;
897-609, eff. 1-1-12.)
 
9    (40 ILCS 5/2-105.1 new)
10    Sec. 2-105.1. Tier I participant. "Tier I participant": A
11participant who first became a participant before January 1,
122011.
 
13    (40 ILCS 5/2-105.2 new)
14    Sec. 2-105.2. Tier I retiree. "Tier I retiree" means a
15former Tier I participant who is receiving a retirement
16annuity.
 
17    (40 ILCS 5/2-108)  (from Ch. 108 1/2, par. 2-108)
18    Sec. 2-108. Salary. "Salary": (1) For members of the
19General Assembly, the total compensation paid to the member by
20the State for one year of service, including the additional
21amounts, if any, paid to the member as an officer pursuant to
22Section 1 of "An Act in relation to the compensation and
23emoluments of the members of the General Assembly", approved

 

 

09800HB1154ham009- 22 -LRB098 08482 EFG 42440 a

1December 6, 1907, as now or hereafter amended.
2    (2) For the State executive officers specified in Section
32-105, the total compensation paid to the member for one year
4of service.
5    (3) For members of the System who are participants under
6Section 2-117.1, or who are serving as Clerk or Assistant Clerk
7of the House of Representatives or Secretary or Assistant
8Secretary of the Senate, the total compensation paid to the
9member for one year of service, but not to exceed the salary of
10the highest salaried officer of the General Assembly.
11    However, in the event that federal law results in any
12participant receiving imputed income based on the value of
13group term life insurance provided by the State, such imputed
14income shall not be included in salary for the purposes of this
15Article.
16    Notwithstanding any other provision of this Code, the
17salary of a Tier I participant for the purposes of this Code
18shall not exceed, for periods of service in a term of office
19beginning on or after the effective date of this amendatory Act
20of the 98th General Assembly, the greater of (i) the annual
21contribution and benefit base established for the applicable
22year by the Commissioner of Social Security under the federal
23Social Security Act or (ii) the annual salary of the
24participant during the 365 days immediately preceding that
25effective date.
26(Source: P.A. 86-27; 86-273; 86-1028; 86-1488.)
 

 

 

09800HB1154ham009- 23 -LRB098 08482 EFG 42440 a

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

 

 

09800HB1154ham009- 24 -LRB098 08482 EFG 42440 a

1        is unable to perform the duties of his or her office.
2        For a participant who first becomes a participant of
3    this System on or after January 1, 2011 (the effective date
4    of Public Act 96-889), he or she has attained age 67 and
5    has at least 8 years of service credit.
6    (a-5) Notwithstanding subsection (a) of this Section, for a
7Tier I participant who begins receiving a retirement annuity
8under this Section after July 1, 2013:
9        (1) If the Tier I participant is at least 45 years old
10    on the effective date of this amendatory Act of the 98th
11    General Assembly, then the references to age 55 and 62 in
12    subsection (a) of this Section remain unchanged.
13        (2) If the Tier I participant is at least 40 but less
14    than 45 years old on the effective date of this amendatory
15    Act of the 98th General Assembly, then the references to
16    age 55 and 62 in subsection (a) of this Section are
17    increased by one year.
18        (3) If the Tier I participant is at least 35 but less
19    than 40 years old on the effective date of this amendatory
20    Act of the 98th General Assembly, then the references to
21    age 55 and 62 in subsection (a) of this Section are
22    increased by 3 years.
23        (4) If the Tier I participant is less than 35 years old
24    on the effective date of this amendatory Act of the 98th
25    General Assembly, then the references to age 55 and 62 in
26    subsection (a) of this Section are increased by 5 years.

 

 

09800HB1154ham009- 25 -LRB098 08482 EFG 42440 a

1    Notwithstanding Section 1-103.1, this subsection (a-5)
2applies without regard to whether or not the Tier I member is
3in active service under this Article on or after the effective
4date of this amendatory Act of the 98th General Assembly.
5    (a-5) A participant who first becomes a participant of this
6System on or after January 1, 2011 (the effective date of
7Public Act 96-889) who has attained age 62 and has at least 8
8years of service credit may elect to receive the lower
9retirement annuity provided in paragraph (c) of Section
102-119.01 of this Code.
11    (b) A participant shall be considered permanently disabled
12only if: (1) disability occurs while in service and is of such
13a nature as to prevent him or her from reasonably performing
14the duties of his or her office at the time; and (2) the board
15has received a written certificate by at least 2 licensed
16physicians appointed by the board stating that the member is
17disabled and that the disability is likely to be permanent.
18(Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11.)
 
19    (40 ILCS 5/2-119.1)  (from Ch. 108 1/2, par. 2-119.1)
20    Sec. 2-119.1. Automatic increase in retirement annuity.
21    (a) Except as provided in subsections (a-1) and (a-2), a A
22participant who retires after June 30, 1967, and who has not
23received an initial increase under this Section before the
24effective date of this amendatory Act of 1991, shall, in
25January or July next following the first anniversary of

 

 

09800HB1154ham009- 26 -LRB098 08482 EFG 42440 a

1retirement, whichever occurs first, and in the same month of
2each year thereafter, but in no event prior to age 60, have the
3amount of the originally granted retirement annuity increased
4as follows: for each year through 1971, 1 1/2%; for each year
5from 1972 through 1979, 2%; and for 1980 and each year
6thereafter, 3%. Annuitants who have received an initial
7increase under this subsection prior to the effective date of
8this amendatory Act of 1991 shall continue to receive their
9annual increases in the same month as the initial increase.
10    (a-1) Notwithstanding any other provision of this Article,
11for a Tier I retiree, the amount of each automatic annual
12increase in retirement annuity occurring on or after the
13effective date of this amendatory Act of the 98th General
14Assembly shall be the lesser of $750 or 3% of the total annuity
15payable at the time of the increase, including previous
16increases granted.
17    (a-2) Notwithstanding any other provision of this Article,
18for a Tier I retiree, the monthly retirement annuity shall
19first be subject to annual increases on the January 1 occurring
20on or next after the attainment of age 67 or the January 1
21occurring on or next after the fifth anniversary of the annuity
22start date, whichever occurs earlier. If on the effective date
23of this amendatory Act of the 98th General Assembly a Tier I
24retiree has already received an annual increase under this
25Section but does not yet meet the new eligibility requirements
26of this subsection, the annual increases already received shall

 

 

09800HB1154ham009- 27 -LRB098 08482 EFG 42440 a

1continue in force, but no additional annual increase shall be
2granted until the Tier I retiree meets the new eligibility
3requirements.
4    (a-3) Notwithstanding Section 1-103.1, subsections (a-1)
5and (a-2) apply without regard to whether or not the Tier I
6retiree is in active service under this Article on or after the
7effective date of this amendatory Act of the 98th General
8Assembly.
9    (b) Beginning January 1, 1990, for eligible participants
10who remain in service after attaining 20 years of creditable
11service, the 3% increases provided under subsection (a) shall
12begin to accrue on the January 1 next following the date upon
13which the participant (1) attains age 55, or (2) attains 20
14years of creditable service, whichever occurs later, and shall
15continue to accrue while the participant remains in service;
16such increases shall become payable on January 1 or July 1,
17whichever occurs first, next following the first anniversary of
18retirement. For any person who has service credit in the System
19for the entire period from January 15, 1969 through December
2031, 1992, regardless of the date of termination of service, the
21reference to age 55 in clause (1) of this subsection (b) shall
22be deemed to mean age 50.
23    This subsection (b) does not apply to any person who first
24becomes a member of the System after August 8, 2003 (the
25effective date of Public Act 93-494) this amendatory Act of the
2693rd General Assembly.

 

 

09800HB1154ham009- 28 -LRB098 08482 EFG 42440 a

1    (b-5) Notwithstanding any other provision of this Article,
2a participant who first becomes a participant on or after
3January 1, 2011 (the effective date of Public Act 96-889)
4shall, in January or July next following the first anniversary
5of retirement, whichever occurs first, and in the same month of
6each year thereafter, but in no event prior to age 67, have the
7amount of the originally granted retirement annuity then being
8paid increased by 3% or one-half the annual unadjusted
9percentage increase in the Consumer Price Index for All Urban
10Consumers as determined by the Public Pension Division of the
11Department of Insurance under subsection (a) of Section
122-108.1, whichever is less. The changes made to this subsection
13by this amendatory Act of the 98th General Assembly do not
14apply to any automatic annual increase granted under this
15subsection before the effective date of this amendatory Act.
16    (c) The foregoing provisions relating to automatic
17increases are not applicable to a participant who retires
18before having made contributions (at the rate prescribed in
19Section 2-126) for automatic increases for less than the
20equivalent of one full year. However, in order to be eligible
21for the automatic increases, such a participant may make
22arrangements to pay to the system the amount required to bring
23the total contributions for the automatic increase to the
24equivalent of one year's contributions based upon his or her
25last salary.
26    (d) A participant who terminated service prior to July 1,

 

 

09800HB1154ham009- 29 -LRB098 08482 EFG 42440 a

11967, with at least 14 years of service is entitled to an
2increase in retirement annuity beginning January, 1976, and to
3additional increases in January of each year thereafter.
4    The initial increase shall be 1 1/2% of the originally
5granted retirement annuity multiplied by the number of full
6years that the annuitant was in receipt of such annuity prior
7to January 1, 1972, plus 2% of the originally granted
8retirement annuity for each year after that date. The
9subsequent annual increases shall be at the rate of 2% of the
10originally granted retirement annuity for each year through
111979 and at the rate of 3% for 1980 and thereafter.
12    (e) Beginning January 1, 1990, all automatic annual
13increases payable under this Section shall be calculated as a
14percentage of the total annuity payable at the time of the
15increase, including previous increases granted under this
16Article.
17(Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11.)
 
18    (40 ILCS 5/2-121.1)  (from Ch. 108 1/2, par. 2-121.1)
19    Sec. 2-121.1. Survivor's annuity - amount.
20    (a) A surviving spouse shall be entitled to 66 2/3% of the
21amount of retirement annuity to which the participant or
22annuitant was entitled on the date of death, without regard to
23whether the participant had attained age 55 prior to his or her
24death, subject to a minimum payment of 10% of salary. If a
25surviving spouse, regardless of age, has in his or her care at

 

 

09800HB1154ham009- 30 -LRB098 08482 EFG 42440 a

1the date of death any eligible child or children of the
2participant, the survivor's annuity shall be the greater of the
3following: (1) 66 2/3% of the amount of retirement annuity to
4which the participant or annuitant was entitled on the date of
5death, or (2) 30% of the participant's salary increased by 10%
6of salary on account of each such child, subject to a total
7payment for the surviving spouse and children of 50% of salary.
8If eligible children survive but there is no surviving spouse,
9or if the surviving spouse dies or becomes disqualified by
10remarriage while eligible children survive, each eligible
11child shall be entitled to an annuity of 20% of salary, subject
12to a maximum total payment for all such children of 50% of
13salary.
14    However, the survivor's annuity payable under this Section
15shall not be less than 100% of the amount of retirement annuity
16to which the participant or annuitant was entitled on the date
17of death, if he or she is survived by a dependent disabled
18child.
19    The salary to be used for determining these benefits shall
20be the salary used for determining the amount of retirement
21annuity as provided in Section 2-119.01.
22    (b) Upon the death of a participant after the termination
23of service or upon death of an annuitant, the maximum total
24payment to a surviving spouse and eligible children, or to
25eligible children alone if there is no surviving spouse, shall
26be 75% of the retirement annuity to which the participant or

 

 

09800HB1154ham009- 31 -LRB098 08482 EFG 42440 a

1annuitant was entitled, unless there is a dependent disabled
2child among the survivors.
3    (c) When a child ceases to be an eligible child, the
4annuity to that child, or to the surviving spouse on account of
5that child, shall thereupon cease, and the annuity payable to
6the surviving spouse or other eligible children shall be
7recalculated if necessary.
8    Upon the ineligibility of the last eligible child, the
9annuity shall immediately revert to the amount payable upon
10death of a participant or annuitant who leaves no eligible
11children. If the surviving spouse is then under age 50, the
12annuity as revised shall be deferred until the attainment of
13age 50.
14    (d) Beginning January 1, 1990, every survivor's annuity
15shall be increased (1) on each January 1 occurring on or after
16the commencement of the annuity if the deceased member died
17while receiving a retirement annuity, or (2) in other cases, on
18each January 1 occurring on or after the first anniversary of
19the commencement of the annuity, by an amount equal to 3% of
20the current amount of the annuity, including any previous
21increases under this Article. Such increases shall apply
22without regard to whether the deceased member was in service on
23or after the effective date of this amendatory Act of 1991, but
24shall not accrue for any period prior to January 1, 1990.
25    (d-5) Notwithstanding any other provision of this Article,
26the initial survivor's annuity of a survivor of a participant

 

 

09800HB1154ham009- 32 -LRB098 08482 EFG 42440 a

1who first becomes a participant on or after January 1, 2011
2(the effective date of Public Act 96-889) shall be in the
3amount of 66 2/3% of the amount of the retirement annuity to
4which the participant or annuitant was entitled on the date of
5death and shall be increased (1) on each January 1 occurring on
6or after the commencement of the annuity if the deceased member
7died while receiving a retirement annuity or (2) in other
8cases, on each January 1 occurring on or after the first
9anniversary of the commencement of the annuity, by an amount
10equal to 3% or one-half the annual unadjusted percentage
11increase in the Consumer Price Index for All Urban Consumers as
12determined by the Public Pension Division of the Department of
13Insurance under subsection (a) of Section 2-108.1, whichever is
14less, of the originally granted survivor's annuity then being
15paid. The changes made to this subsection by this amendatory
16Act of the 98th General Assembly do not apply to any automatic
17annual increase granted under this subsection before the
18effective date of this amendatory Act.
19    (e) Notwithstanding any other provision of this Article,
20beginning January 1, 1990, the minimum survivor's annuity
21payable to any person who is entitled to receive a survivor's
22annuity under this Article shall be $300 per month, without
23regard to whether or not the deceased participant was in
24service on the effective date of this amendatory Act of 1989.
25    (f) In the case of a proportional survivor's annuity
26arising under the Retirement Systems Reciprocal Act where the

 

 

09800HB1154ham009- 33 -LRB098 08482 EFG 42440 a

1amount payable by the System on January 1, 1993 is less than
2$300 per month, the amount payable by the System shall be
3increased beginning on that date by a monthly amount equal to
4$2 for each full year that has expired since the annuity began.
5(Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11.)
 
6    (40 ILCS 5/2-124)  (from Ch. 108 1/2, par. 2-124)
7    Sec. 2-124. Contributions by State.
8    (a) The State shall make contributions to the System by
9appropriations of amounts which, together with the
10contributions of participants, interest earned on investments,
11and other income will meet the cost of maintaining and
12administering the System on a 100% 90% funded basis in
13accordance with actuarial recommendations by the end of State
14fiscal year 2043.
15    (b) The Board shall determine the amount of State
16contributions required for each fiscal year on the basis of the
17actuarial tables and other assumptions adopted by the Board and
18the prescribed rate of interest, using the formula in
19subsection (c).
20    (c) For State fiscal years 2014 through 2043, the minimum
21contribution to the System to be made by the State for each
22fiscal year shall be an amount determined by the System to be
23equal to the sum of (1) the State's portion of the projected
24normal cost for that fiscal year, plus (2) an amount sufficient
25to bring the total assets of the System up to 100% of the total

 

 

09800HB1154ham009- 34 -LRB098 08482 EFG 42440 a

1actuarial liabilities of the System by the end of State fiscal
2year 2043. In making these determinations, the required State
3contribution shall be calculated each year as a level
4percentage of payroll over the years remaining to and including
5fiscal year 2043 and shall be determined under the projected
6unit credit actuarial cost method.
7    For State fiscal years 2012 and 2013 through 2045, the
8minimum contribution to the System to be made by the State for
9each fiscal year shall be an amount determined by the System to
10be sufficient to bring the total assets of the System up to 90%
11of the total actuarial liabilities of the System by the end of
12State fiscal year 2045. In making these determinations, the
13required State contribution shall be calculated each year as a
14level percentage of payroll over the years remaining to and
15including fiscal year 2045 and shall be determined under the
16projected unit credit actuarial cost method.
17    For State fiscal years 1996 through 2005, the State
18contribution to the System, as a percentage of the applicable
19employee payroll, shall be increased in equal annual increments
20so that by State fiscal year 2011, the State is contributing at
21the rate required under this Section.
22    Notwithstanding any other provision of this Article, the
23total required State contribution for State fiscal year 2006 is
24$4,157,000.
25    Notwithstanding any other provision of this Article, the
26total required State contribution for State fiscal year 2007 is

 

 

09800HB1154ham009- 35 -LRB098 08482 EFG 42440 a

1$5,220,300.
2    For each of State fiscal years 2008 through 2009, the State
3contribution to the System, as a percentage of the applicable
4employee payroll, shall be increased in equal annual increments
5from the required State contribution for State fiscal year
62007, so that by State fiscal year 2011, the State is
7contributing at the rate otherwise required under this Section.
8    Notwithstanding any other provision of this Article, the
9total required State contribution for State fiscal year 2010 is
10$10,454,000 and shall be made from the proceeds of bonds sold
11in fiscal year 2010 pursuant to Section 7.2 of the General
12Obligation Bond Act, less (i) the pro rata share of bond sale
13expenses determined by the System's share of total bond
14proceeds, (ii) any amounts received from the General Revenue
15Fund in fiscal year 2010, and (iii) any reduction in bond
16proceeds due to the issuance of discounted bonds, if
17applicable.
18    Notwithstanding any other provision of this Article, the
19total required State contribution for State fiscal year 2011 is
20the amount recertified by the System on or before April 1, 2011
21pursuant to Section 2-134 and shall be made from the proceeds
22of bonds sold in fiscal year 2011 pursuant to Section 7.2 of
23the General Obligation Bond Act, less (i) the pro rata share of
24bond sale expenses determined by the System's share of total
25bond proceeds, (ii) any amounts received from the General
26Revenue Fund in fiscal year 2011, and (iii) any reduction in

 

 

09800HB1154ham009- 36 -LRB098 08482 EFG 42440 a

1bond proceeds due to the issuance of discounted bonds, if
2applicable.
3    Beginning in State fiscal year 2044, the minimum State
4contribution for each fiscal year shall be the amount needed to
5maintain the total assets of the System at 100% of the total
6actuarial liabilities of the System.
7    Beginning in State fiscal year 2046, the minimum State
8contribution for each fiscal year shall be the amount needed to
9maintain the total assets of the System at 90% of the total
10actuarial liabilities of the System.
11    Amounts received by the System pursuant to Section 25 of
12the Budget Stabilization Act or Section 8.12 of the State
13Finance Act in any fiscal year do not reduce and do not
14constitute payment of any portion of the minimum State
15contribution required under this Article in that fiscal year.
16Such amounts shall not reduce, and shall not be included in the
17calculation of, the required State contributions under this
18Article in any future year until the System has reached a
19funding ratio of at least 100% 90%. A reference in this Article
20to the "required State contribution" or any substantially
21similar term does not include or apply to any amounts payable
22to the System under Section 25 of the Budget Stabilization Act.
23    Notwithstanding any other provision of this Section, the
24required State contribution for State fiscal year 2005 and for
25fiscal year 2008 and each fiscal year thereafter through State
26fiscal year 2013, as calculated under this Section and

 

 

09800HB1154ham009- 37 -LRB098 08482 EFG 42440 a

1certified under Section 2-134, shall not exceed an amount equal
2to (i) the amount of the required State contribution that would
3have been calculated under this Section for that fiscal year if
4the System had not received any payments under subsection (d)
5of Section 7.2 of the General Obligation Bond Act, minus (ii)
6the portion of the State's total debt service payments for that
7fiscal year on the bonds issued in fiscal year 2003 for the
8purposes of that Section 7.2, as determined and certified by
9the Comptroller, that is the same as the System's portion of
10the total moneys distributed under subsection (d) of Section
117.2 of the General Obligation Bond Act. In determining this
12maximum for State fiscal years 2008 through 2010, however, the
13amount referred to in item (i) shall be increased, as a
14percentage of the applicable employee payroll, in equal
15increments calculated from the sum of the required State
16contribution for State fiscal year 2007 plus the applicable
17portion of the State's total debt service payments for fiscal
18year 2007 on the bonds issued in fiscal year 2003 for the
19purposes of Section 7.2 of the General Obligation Bond Act, so
20that, by State fiscal year 2011, the State is contributing at
21the rate otherwise required under this Section.
22    (d) For purposes of determining the required State
23contribution to the System, the value of the System's assets
24shall be equal to the actuarial value of the System's assets,
25which shall be calculated as follows:
26    As of June 30, 2008, the actuarial value of the System's

 

 

09800HB1154ham009- 38 -LRB098 08482 EFG 42440 a

1assets shall be equal to the market value of the assets as of
2that date. In determining the actuarial value of the System's
3assets for fiscal years after June 30, 2008, any actuarial
4gains or losses from investment return incurred in a fiscal
5year shall be recognized in equal annual amounts over the
65-year period following that fiscal year.
7    (e) For purposes of determining the required State
8contribution to the system for a particular year, the actuarial
9value of assets shall be assumed to earn a rate of return equal
10to the system's actuarially assumed rate of return.
11(Source: P.A. 96-43, eff. 7-15-09; 96-1497, eff. 1-14-11;
1296-1511, eff. 1-27-11; 96-1554, eff. 3-18-11; 97-813, eff.
137-13-12.)
 
14    (40 ILCS 5/2-125)  (from Ch. 108 1/2, par. 2-125)
15    Sec. 2-125. Obligations of State; funding guarantee.
16    (a) The payment of (1) the required State contributions,
17(2) all benefits granted under this system and (3) all expenses
18of administration and operation are obligations of the State to
19the extent specified in this Article.
20    (b) All income, interest and dividends derived from
21deposits and investments shall be credited to the account of
22the system in the State Treasury and used to pay benefits under
23this Article.
24    (c) Beginning July 1, 2013, the State shall be
25contractually obligated to contribute to the System under

 

 

09800HB1154ham009- 39 -LRB098 08482 EFG 42440 a

1Section 2-124 in each State fiscal year an amount not less than
2the sum of (i) the State's normal cost for that year and (ii)
3the portion of the unfunded accrued liability assigned to that
4year by law in accordance with a schedule that distributes
5payments equitably over a reasonable period of time and in
6accordance with accepted actuarial practices. The obligations
7created under this subsection (c) are contractual obligations
8protected and enforceable under Article I, Section 16 and
9Article XIII, Section 5 of the Illinois Constitution.
10    Notwithstanding any other provision of law, if the State
11fails to pay in a State fiscal year the amount guaranteed under
12this subsection, the System may bring a mandamus action in the
13Circuit Court of Sangamon County to compel the State to make
14that payment, irrespective of other remedies that may be
15available to the System. In ordering the State to make the
16required payment, the court may order a reasonable payment
17schedule to enable the State to make the required payment
18without significantly imperiling the public health, safety, or
19welfare.
20    Any payments required to be made by the State pursuant to
21this subsection (c) are expressly subordinated to the payment
22of the principal, interest, and premium, if any, on any bonded
23debt obligation of the State or any other State-created entity,
24either currently outstanding or to be issued, for which the
25source of repayment or security thereon is derived directly or
26indirectly from tax revenues collected by the State or any

 

 

09800HB1154ham009- 40 -LRB098 08482 EFG 42440 a

1other State-created entity. Payments on such bonded
2obligations include any statutory fund transfers or other
3prefunding mechanisms or formulas set forth, now or hereafter,
4in State law or bond indentures, into debt service funds or
5accounts of the State related to such bonded obligations,
6consistent with the payment schedules associated with such
7obligations.
8(Source: P.A. 83-1440.)
 
9    (40 ILCS 5/2-126)  (from Ch. 108 1/2, par. 2-126)
10    Sec. 2-126. Contributions by participants.
11    (a) Each participant shall contribute toward the cost of
12his or her retirement annuity a percentage of each payment of
13salary received by him or her for service as a member as
14follows: for service between October 31, 1947 and January 1,
151959, 5%; for service between January 1, 1959 and June 30,
161969, 6%; for service between July 1, 1969 and January 10,
171973, 6 1/2%; for service after January 10, 1973, 7%; for
18service after December 31, 1981, 8 1/2%.
19    (a-5) In addition to the contributions otherwise required
20under this Article, each Tier I participant shall also make the
21following contributions toward the cost of his or her
22retirement annuity from each payment of salary received by him
23or her for service as a member:
24        (1) beginning July 1, 2013 and through June 30, 2014,
25    1% of salary; and

 

 

09800HB1154ham009- 41 -LRB098 08482 EFG 42440 a

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

 

 

09800HB1154ham009- 42 -LRB098 08482 EFG 42440 a

1an officer for 4 years. Persons who serve as officers in the
287th General Assembly but cannot receive the additional payment
3to officers because of the ban on increases in salary during
4their terms may nonetheless make contributions based on those
5additional payments for the purpose of having the additional
6payments included in their highest salary for annuity purposes;
7however, persons electing to make these additional
8contributions must also pay an amount representing the
9corresponding employer contributions, as calculated by the
10System.
11    (e) Notwithstanding any other provision of this Article,
12the required contribution of a participant who first becomes a
13participant on or after January 1, 2011 shall not exceed the
14contribution that would be due under this Article if that
15participant's highest salary for annuity purposes were
16$106,800, plus any increases in that amount under Section
172-108.1.
18(Source: P.A. 96-1490, eff. 1-1-11.)
 
19    (40 ILCS 5/2-134)   (from Ch. 108 1/2, par. 2-134)
20    Sec. 2-134. To certify required State contributions and
21submit vouchers.
22    (a) The Board shall certify to the Governor on or before
23December 15 of each year through until December 15, 2011 the
24amount of the required State contribution to the System for the
25next fiscal year and shall specifically identify the System's

 

 

09800HB1154ham009- 43 -LRB098 08482 EFG 42440 a

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

 

 

09800HB1154ham009- 44 -LRB098 08482 EFG 42440 a

1the State Actuary's recommended changes, and the fiscal impact
2of not following the State Actuary's recommended changes on the
3required State contribution.
4    (a-7) On or before May 1, 2004, the Board shall recalculate
5and recertify to the Governor the amount of the required State
6contribution to the System for State fiscal year 2005, taking
7into account the amounts appropriated to and received by the
8System under subsection (d) of Section 7.2 of the General
9Obligation Bond Act.
10    On or before July 1, 2005, the Board shall recalculate and
11recertify to the Governor the amount of the required State
12contribution to the System for State fiscal year 2006, taking
13into account the changes in required State contributions made
14by this amendatory Act of the 94th General Assembly.
15    On or before April 1, 2011, the Board shall recalculate and
16recertify to the Governor the amount of the required State
17contribution to the System for State fiscal year 2011, applying
18the changes made by Public Act 96-889 to the System's assets
19and liabilities as of June 30, 2009 as though Public Act 96-889
20was approved on that date.
21    (b) Beginning in State fiscal year 1996, on or as soon as
22possible after the 15th day of each month the Board shall
23submit vouchers for payment of State contributions to the
24System, in a total monthly amount of one-twelfth of the
25required annual State contribution certified under subsection
26(a). From the effective date of this amendatory Act of the 93rd

 

 

09800HB1154ham009- 45 -LRB098 08482 EFG 42440 a

1General Assembly through June 30, 2004, the Board shall not
2submit vouchers for the remainder of fiscal year 2004 in excess
3of the fiscal year 2004 certified contribution amount
4determined under this Section after taking into consideration
5the transfer to the System under subsection (d) of Section
66z-61 of the State Finance Act. These vouchers shall be paid by
7the State Comptroller and Treasurer by warrants drawn on the
8funds appropriated to the System for that fiscal year. If in
9any month the amount remaining unexpended from all other
10appropriations to the System for the applicable fiscal year
11(including the appropriations to the System under Section 8.12
12of the State Finance Act and Section 1 of the State Pension
13Funds Continuing Appropriation Act) is less than the amount
14lawfully vouchered under this Section, the difference shall be
15paid from the General Revenue Fund under the continuing
16appropriation authority provided in Section 1.1 of the State
17Pension Funds Continuing Appropriation Act.
18    (c) The full amount of any annual appropriation for the
19System for State fiscal year 1995 shall be transferred and made
20available to the System at the beginning of that fiscal year at
21the request of the Board. Any excess funds remaining at the end
22of any fiscal year from appropriations shall be retained by the
23System as a general reserve to meet the System's accrued
24liabilities.
25(Source: P.A. 96-1497, eff. 1-14-11; 96-1511, eff. 1-27-11;
2697-694, eff. 6-18-12.)
 

 

 

09800HB1154ham009- 46 -LRB098 08482 EFG 42440 a

1    (40 ILCS 5/2-162)
2    Sec. 2-162. Application and expiration of new benefit
3increases.
4    (a) As used in this Section, "new benefit increase" means
5an increase in the amount of any benefit provided under this
6Article, or an expansion of the conditions of eligibility for
7any benefit under this Article, that results from an amendment
8to this Code that takes effect after the effective date of this
9amendatory Act of the 94th General Assembly. "New benefit
10increase", however, does not include any benefit increase
11resulting from the changes made to this Article by this
12amendatory Act of the 98th General Assembly.
13    (b) Notwithstanding any other provision of this Code or any
14subsequent amendment to this Code, every new benefit increase
15is subject to this Section and shall be deemed to be granted
16only in conformance with and contingent upon compliance with
17the provisions of this Section.
18    (c) The Public Act enacting a new benefit increase must
19identify and provide for payment to the System of additional
20funding at least sufficient to fund the resulting annual
21increase in cost to the System as it accrues.
22    Every new benefit increase is contingent upon the General
23Assembly providing the additional funding required under this
24subsection. The Commission on Government Forecasting and
25Accountability shall analyze whether adequate additional

 

 

09800HB1154ham009- 47 -LRB098 08482 EFG 42440 a

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

 

 

09800HB1154ham009- 48 -LRB098 08482 EFG 42440 a

1apply and qualify for the affected benefit while the new
2benefit increase was in effect.
3(Source: P.A. 94-4, eff. 6-1-05.)
 
4    (40 ILCS 5/14-103.10)  (from Ch. 108 1/2, par. 14-103.10)
5    Sec. 14-103.10. Compensation.
6    (a) For periods of service prior to January 1, 1978, the
7full rate of salary or wages payable to an employee for
8personal services performed if he worked the full normal
9working period for his position, subject to the following
10maximum amounts: (1) prior to July 1, 1951, $400 per month or
11$4,800 per year; (2) between July 1, 1951 and June 30, 1957
12inclusive, $625 per month or $7,500 per year; (3) beginning
13July 1, 1957, no limitation.
14    In the case of service of an employee in a position
15involving part-time employment, compensation shall be
16determined according to the employees' earnings record.
17    (b) For periods of service on and after January 1, 1978,
18all remuneration for personal services performed defined as
19"wages" under the Social Security Enabling Act, including that
20part of such remuneration which is in excess of any maximum
21limitation provided in such Act, and including any benefits
22received by an employee under a sick pay plan in effect before
23January 1, 1981, but excluding lump sum salary payments:
24        (1) for vacation,
25        (2) for accumulated unused sick leave,

 

 

09800HB1154ham009- 49 -LRB098 08482 EFG 42440 a

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

 

 

09800HB1154ham009- 50 -LRB098 08482 EFG 42440 a

1    (f) Notwithstanding any other provision of this Code, the
2compensation of a Tier I member for the purposes of this Code
3shall not exceed, for periods of service on or after the
4effective date of this amendatory Act of the 98th General
5Assembly, the greater of (i) the annual contribution and
6benefit base established for the applicable year by the
7Commissioner of Social Security under the federal Social
8Security Act or (ii) the annual compensation of the member
9during the 365 days immediately preceding that effective date;
10except that this limitation does not apply to a member's
11compensation that is determined under an employment contract or
12collective bargaining agreement that is in effect on the
13effective date of this amendatory Act of the 98th General
14Assembly and has not been amended or renewed after that date.
15(Source: P.A. 96-1490, eff. 1-1-11.)
 
16    (40 ILCS 5/14-103.40 new)
17    Sec. 14-103.40. Tier I member. "Tier I member": A member of
18this System who first became a member or participant before
19January 1, 2011 under any reciprocal retirement system or
20pension fund established under this Code other than a
21retirement system or pension fund established under Article 2,
223, 4, 5, 6, or 18 of this Code.
 
23    (40 ILCS 5/14-103.41 new)
24    Sec. 14-103.41. Tier I retiree. "Tier I retiree": A former

 

 

09800HB1154ham009- 51 -LRB098 08482 EFG 42440 a

1Tier I member who is receiving a retirement annuity.
 
2    (40 ILCS 5/14-107)  (from Ch. 108 1/2, par. 14-107)
3    Sec. 14-107. Retirement annuity - service and age -
4conditions.
5    (a) A member is entitled to a retirement annuity after
6having at least 8 years of creditable service.
7    (b) A member who has at least 35 years of creditable
8service may claim his or her retirement annuity at any age. A
9member having at least 8 years of creditable service but less
10than 35 may claim his or her retirement annuity upon or after
11attainment of age 60 or, beginning January 1, 2001, any lesser
12age which, when added to the number of years of his or her
13creditable service, equals at least 85. A member upon or after
14attainment of age 55 having at least 25 years of creditable
15service (30 years if retirement is before January 1, 2001) may
16elect to receive the lower retirement annuity provided in
17paragraph (c) of Section 14-108 of this Code. For purposes of
18the rule of 85, portions of years shall be counted in whole
19months.
20    (c) Notwithstanding subsection (b) of this Section, for a
21Tier I member who begins receiving a retirement annuity under
22this Article after July 1, 2013:
23        (1) If the Tier I member is at least 45 years old on
24    the effective date of this amendatory Act of the 98th
25    General Assembly, then the references to age 55 and 60 in

 

 

09800HB1154ham009- 52 -LRB098 08482 EFG 42440 a

1    subsection (b) of this Section remain unchanged and the
2    references to 85 in subsection (b) of this Section remain
3    unchanged.
4        (2) If the Tier I member is at least 40 but less than
5    45 years old on the effective date of this amendatory Act
6    of the 98th General Assembly, then the references to age 55
7    and 60 in subsection (b) of this Section are increased by
8    one year and the references to 85 in subsection (b) are
9    increased to 87.
10        (3) If the Tier I member is at least 35 but less than
11    40 years old on the effective date of this amendatory Act
12    of the 98th General Assembly, then the references to age 55
13    and 60 in subsection (b) of this Section are increased by 3
14    years and the references to 85 in subsection (b) are
15    increased to 91.
16        (4) If the Tier I member is less than 35 years old on
17    the effective date of this amendatory Act of the 98th
18    General Assembly, then the references to age 55 and 60 in
19    subsection (b) of this Section are increased by 5 years and
20    the references to 85 in subsection (b) are increased to 95.
21    Notwithstanding Section 1-103.1, this subsection (c)
22applies without regard to whether or not the Tier I member is
23in active service under this Article on or after the effective
24date of this amendatory Act of the 98th General Assembly.
25    (d) The allowance shall begin with the first full calendar
26month specified in the member's application therefor, the first

 

 

09800HB1154ham009- 53 -LRB098 08482 EFG 42440 a

1day of which shall not be before the date of withdrawal as
2approved by the board. Regardless of the date of withdrawal,
3the allowance need not begin within one year of application
4therefor.
5(Source: P.A. 91-927, eff. 12-14-00.)
 
6    (40 ILCS 5/14-108)  (from Ch. 108 1/2, par. 14-108)
7    Sec. 14-108. Amount of retirement annuity. A member who has
8contributed to the System for at least 12 months shall be
9entitled to a prior service annuity for each year of certified
10prior service credited to him, except that a member shall
11receive 1/3 of the prior service annuity for each year of
12service for which contributions have been made and all of such
13annuity shall be payable after the member has made
14contributions for a period of 3 years. Proportionate amounts
15shall be payable for service of less than a full year after
16completion of at least 12 months.
17    The total period of service to be considered in
18establishing the measure of prior service annuity shall include
19service credited in the Teachers' Retirement System of the
20State of Illinois and the State Universities Retirement System
21for which contributions have been made by the member to such
22systems; provided that at least 1 year of the total period of 3
23years prescribed for the allowance of a full measure of prior
24service annuity shall consist of membership service in this
25system for which credit has been granted.

 

 

09800HB1154ham009- 54 -LRB098 08482 EFG 42440 a

1    (a) In the case of a member who retires on or after January
21, 1998 and is a noncovered employee, the retirement annuity
3for membership service and prior service shall be 2.2% of final
4average compensation for each year of service. Any service
5credit established as a covered employee shall be computed as
6stated in paragraph (b).
7    (b) In the case of a member who retires on or after January
81, 1998 and is a covered employee, the retirement annuity for
9membership service and prior service shall be computed as
10stated in paragraph (a) for all service credit established as a
11noncovered employee; for service credit established as a
12covered employee it shall be 1.67% of final average
13compensation for each year of service.
14    (c) For a member retiring after attaining age 55 but before
15age 60 with at least 30 but less than 35 years of creditable
16service if retirement is before January 1, 2001, or with at
17least 25 but less than 30 years of creditable service if
18retirement is on or after January 1, 2001, the retirement
19annuity shall be reduced by 1/2 of 1% for each month that the
20member's age is under age 60 at the time of retirement. For
21members to whom subsection (c) of Section 14-107 applies, the
22references to age 55 and 60 in this subsection (c) are
23increased as provided in subsection (c) of Section 14-107.
24    (d) A retirement annuity shall not exceed 75% of final
25average compensation, subject to such extension as may result
26from the application of Section 14-114 or Section 14-115.

 

 

09800HB1154ham009- 55 -LRB098 08482 EFG 42440 a

1    (e) The retirement annuity payable to any covered employee
2who is a member of the System and in service on January 1,
31969, or in service thereafter in 1969 as a result of
4legislation enacted by the Illinois General Assembly
5transferring the member to State employment from county
6employment in a county Department of Public Aid in counties of
73,000,000 or more population, under a plan of coordination with
8the Old Age, Survivors and Disability provisions thereof, if
9not fully insured for Old Age Insurance payments under the
10Federal Old Age, Survivors and Disability Insurance provisions
11at the date of acceptance of a retirement annuity, shall not be
12less than the amount for which the member would have been
13eligible if coordination were not applicable.
14    (f) The retirement annuity payable to any covered employee
15who is a member of the System and in service on January 1,
161969, or in service thereafter in 1969 as a result of the
17legislation designated in the immediately preceding paragraph,
18if fully insured for Old Age Insurance payments under the
19Federal Social Security Act at the date of acceptance of a
20retirement annuity, shall not be less than an amount which when
21added to the Primary Insurance Benefit payable to the member
22upon attainment of age 65 under such Federal Act, will equal
23the annuity which would otherwise be payable if the coordinated
24plan of coverage were not applicable.
25    (g) In the case of a member who is a noncovered employee,
26the retirement annuity for membership service as a security

 

 

09800HB1154ham009- 56 -LRB098 08482 EFG 42440 a

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

 

 

09800HB1154ham009- 57 -LRB098 08482 EFG 42440 a

1subsection (c) of Section 14-110.
2    (j) The retirement annuity computed pursuant to paragraphs
3(g) or (h) shall be applicable only to those security employees
4of the Department of Corrections and security employees of the
5Department of Human Services who have at least 20 years of
6membership service and who are not eligible for the alternative
7retirement annuity provided under Section 14-110. However,
8persons transferring to this System under Section 14-108.2 or
914-108.2c who have service credit under Article 16 of this Code
10may count such service toward establishing their eligibility
11under the 20-year service requirement of this subsection; but
12such service may be used only for establishing such
13eligibility, and not for the purpose of increasing or
14calculating any benefit.
15    (k) (Blank).
16    (l) The changes to this Section made by this amendatory Act
17of 1997 (changing certain retirement annuity formulas from a
18stepped rate to a flat rate) apply to members who retire on or
19after January 1, 1998, without regard to whether employment
20terminated before the effective date of this amendatory Act of
211997. An annuity shall not be calculated in steps by using the
22new flat rate for some steps and the superseded stepped rate
23for other steps of the same type of service.
24(Source: P.A. 91-927, eff. 12-14-00; 92-14, eff. 6-28-01.)
 
25    (40 ILCS 5/14-110)  (from Ch. 108 1/2, par. 14-110)

 

 

09800HB1154ham009- 58 -LRB098 08482 EFG 42440 a

1    Sec. 14-110. Alternative retirement annuity.
2    (a) Any member who has withdrawn from service with not less
3than 20 years of eligible creditable service and has attained
4age 55, and any member who has withdrawn from service with not
5less than 25 years of eligible creditable service and has
6attained age 50, regardless of whether the attainment of either
7of the specified ages occurs while the member is still in
8service, shall be entitled to receive at the option of the
9member, in lieu of the regular or minimum retirement annuity, a
10retirement annuity computed as follows:
11        (i) for periods of service as a noncovered employee: if
12    retirement occurs on or after January 1, 2001, 3% of final
13    average compensation for each year of creditable service;
14    if retirement occurs before January 1, 2001, 2 1/4% of
15    final average compensation for each of the first 10 years
16    of creditable service, 2 1/2% for each year above 10 years
17    to and including 20 years of creditable service, and 2 3/4%
18    for each year of creditable service above 20 years; and
19        (ii) for periods of eligible creditable service as a
20    covered employee: if retirement occurs on or after January
21    1, 2001, 2.5% of final average compensation for each year
22    of creditable service; if retirement occurs before January
23    1, 2001, 1.67% of final average compensation for each of
24    the first 10 years of such service, 1.90% for each of the
25    next 10 years of such service, 2.10% for each year of such
26    service in excess of 20 but not exceeding 30, and 2.30% for

 

 

09800HB1154ham009- 59 -LRB098 08482 EFG 42440 a

1    each year in excess of 30.
2    Such annuity shall be subject to a maximum of 75% of final
3average compensation if retirement occurs before January 1,
42001 or to a maximum of 80% of final average compensation if
5retirement occurs on or after January 1, 2001.
6    These rates shall not be applicable to any service
7performed by a member as a covered employee which is not
8eligible creditable service. Service as a covered employee
9which is not eligible creditable service shall be subject to
10the rates and provisions of Section 14-108.
11    (a-5) Notwithstanding subsection (a) of this Section, for a
12Tier I member who begins receiving a retirement annuity under
13this Section after July 1, 2013:
14        (1) If the Tier I member is at least 45 years old on
15    the effective date of this amendatory Act of the 98th
16    General Assembly, then the references to age 50 and 55 in
17    subsection (a) of this Section remain unchanged.
18        (2) If the Tier I member is at least 40 but less than
19    45 years old on the effective date of this amendatory Act
20    of the 98th General Assembly, then the references to age 50
21    and 55 in subsection (a) of this Section are increased by
22    one year.
23        (3) If the Tier I member is at least 35 but less than
24    40 years old on the effective date of this amendatory Act
25    of the 98th General Assembly, then the references to age 50
26    and 55 in subsection (a) of this Section are increased by 3

 

 

09800HB1154ham009- 60 -LRB098 08482 EFG 42440 a

1    years.
2        (4) If the Tier I member is less than 35 years old on
3    the effective date of this amendatory Act of the 98th
4    General Assembly, then the references to age 50 and 55 in
5    subsection (a) of this Section are increased by 5 years.
6    Notwithstanding Section 1-103.1, this subsection (a-5)
7applies without regard to whether or not the Tier I member is
8in active service under this Article on or after the effective
9date of this amendatory Act of the 98th General Assembly.
10    (b) For the purpose of this Section, "eligible creditable
11service" means creditable service resulting from service in one
12or more of the following positions:
13        (1) State policeman;
14        (2) fire fighter in the fire protection service of a
15    department;
16        (3) air pilot;
17        (4) special agent;
18        (5) investigator for the Secretary of State;
19        (6) conservation police officer;
20        (7) investigator for the Department of Revenue or the
21    Illinois Gaming Board;
22        (8) security employee of the Department of Human
23    Services;
24        (9) Central Management Services security police
25    officer;
26        (10) security employee of the Department of

 

 

09800HB1154ham009- 61 -LRB098 08482 EFG 42440 a

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

 

 

09800HB1154ham009- 62 -LRB098 08482 EFG 42440 a

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

 

 

09800HB1154ham009- 63 -LRB098 08482 EFG 42440 a

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

 

 

09800HB1154ham009- 64 -LRB098 08482 EFG 42440 a

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

 

 

09800HB1154ham009- 65 -LRB098 08482 EFG 42440 a

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

 

 

09800HB1154ham009- 66 -LRB098 08482 EFG 42440 a

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

 

 

09800HB1154ham009- 67 -LRB098 08482 EFG 42440 a

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

 

 

09800HB1154ham009- 68 -LRB098 08482 EFG 42440 a

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

 

 

09800HB1154ham009- 69 -LRB098 08482 EFG 42440 a

1        actual maintenance necessary to keep the highways that
2        form a part of the State highway system in serviceable
3        condition for vehicular traffic.
4            (ii) A person employed on a full-time basis by the
5        Illinois State Toll Highway Authority in the position
6        of equipment operator/laborer H-4, equipment
7        operator/laborer H-6, welder H-4, welder H-6,
8        mechanical/electrical H-4, mechanical/electrical H-6,
9        water/sewer H-4, water/sewer H-6, sign maker/hanger
10        H-4, sign maker/hanger H-6, roadway lighting H-4,
11        roadway lighting H-6, structural H-4, structural H-6,
12        painter H-4, or painter H-6; and whose principal
13        responsibility is to perform, on the roadway, the
14        actual maintenance necessary to keep the Authority's
15        tollways in serviceable condition for vehicular
16        traffic.
17    (d) A security employee of the Department of Corrections or
18the Department of Juvenile Justice, and a security employee of
19the Department of Human Services who is not a mental health
20police officer, shall not be eligible for the alternative
21retirement annuity provided by this Section unless he or she
22meets the following minimum age and service requirements at the
23time of retirement:
24        (i) 25 years of eligible creditable service and age 55;
25    or
26        (ii) beginning January 1, 1987, 25 years of eligible

 

 

09800HB1154ham009- 70 -LRB098 08482 EFG 42440 a

1    creditable service and age 54, or 24 years of eligible
2    creditable service and age 55; or
3        (iii) beginning January 1, 1988, 25 years of eligible
4    creditable service and age 53, or 23 years of eligible
5    creditable service and age 55; or
6        (iv) beginning January 1, 1989, 25 years of eligible
7    creditable service and age 52, or 22 years of eligible
8    creditable service and age 55; or
9        (v) beginning January 1, 1990, 25 years of eligible
10    creditable service and age 51, or 21 years of eligible
11    creditable service and age 55; or
12        (vi) beginning January 1, 1991, 25 years of eligible
13    creditable service and age 50, or 20 years of eligible
14    creditable service and age 55.
15    For members to whom subsection (a-5) of this Section
16applies, the references to age 50 and 55 in item (vi) of this
17subsection are increased as provided in subsection (a-5).
18    Persons who have service credit under Article 16 of this
19Code for service as a security employee of the Department of
20Corrections or the Department of Juvenile Justice, or the
21Department of Human Services in a position requiring
22certification as a teacher may count such service toward
23establishing their eligibility under the service requirements
24of this Section; but such service may be used only for
25establishing such eligibility, and not for the purpose of
26increasing or calculating any benefit.

 

 

09800HB1154ham009- 71 -LRB098 08482 EFG 42440 a

1    (e) If a member enters military service while working in a
2position in which eligible creditable service may be earned,
3and returns to State service in the same or another such
4position, and fulfills in all other respects the conditions
5prescribed in this Article for credit for military service,
6such military service shall be credited as eligible creditable
7service for the purposes of the retirement annuity prescribed
8in this Section.
9    (f) For purposes of calculating retirement annuities under
10this Section, periods of service rendered after December 31,
111968 and before October 1, 1975 as a covered employee in the
12position of special agent, conservation police officer, mental
13health police officer, or investigator for the Secretary of
14State, shall be deemed to have been service as a noncovered
15employee, provided that the employee pays to the System prior
16to retirement an amount equal to (1) the difference between the
17employee contributions that would have been required for such
18service as a noncovered employee, and the amount of employee
19contributions actually paid, plus (2) if payment is made after
20July 31, 1987, regular interest on the amount specified in item
21(1) from the date of service to the date of payment.
22    For purposes of calculating retirement annuities under
23this Section, periods of service rendered after December 31,
241968 and before January 1, 1982 as a covered employee in the
25position of investigator for the Department of Revenue shall be
26deemed to have been service as a noncovered employee, provided

 

 

09800HB1154ham009- 72 -LRB098 08482 EFG 42440 a

1that the employee pays to the System prior to retirement an
2amount equal to (1) the difference between the employee
3contributions that would have been required for such service as
4a noncovered employee, and the amount of employee contributions
5actually paid, plus (2) if payment is made after January 1,
61990, regular interest on the amount specified in item (1) from
7the date of service to the date of payment.
8    (g) A State policeman may elect, not later than January 1,
91990, to establish eligible creditable service for up to 10
10years of his service as a policeman under Article 3, by filing
11a written election with the Board, accompanied by payment of an
12amount to be determined by the Board, equal to (i) the
13difference between the amount of employee and employer
14contributions transferred to the System under Section 3-110.5,
15and the amounts that would have been contributed had such
16contributions been made at the rates applicable to State
17policemen, plus (ii) interest thereon at the effective rate for
18each year, compounded annually, from the date of service to the
19date of payment.
20    Subject to the limitation in subsection (i), a State
21policeman may elect, not later than July 1, 1993, to establish
22eligible creditable service for up to 10 years of his service
23as a member of the County Police Department under Article 9, by
24filing a written election with the Board, accompanied by
25payment of an amount to be determined by the Board, equal to
26(i) the difference between the amount of employee and employer

 

 

09800HB1154ham009- 73 -LRB098 08482 EFG 42440 a

1contributions transferred to the System under Section 9-121.10
2and the amounts that would have been contributed had those
3contributions been made at the rates applicable to State
4policemen, plus (ii) interest thereon at the effective rate for
5each year, compounded annually, from the date of service to the
6date of payment.
7    (h) Subject to the limitation in subsection (i), a State
8policeman or investigator for the Secretary of State may elect
9to establish eligible creditable service for up to 12 years of
10his service as a policeman under Article 5, by filing a written
11election with the Board on or before January 31, 1992, and
12paying to the System by January 31, 1994 an amount to be
13determined by the Board, equal to (i) the difference between
14the amount of employee and employer contributions transferred
15to the System under Section 5-236, and the amounts that would
16have been contributed had such contributions been made at the
17rates applicable to State policemen, plus (ii) interest thereon
18at the effective rate for each year, compounded annually, from
19the date of service to the date of payment.
20    Subject to the limitation in subsection (i), a State
21policeman, conservation police officer, or investigator for
22the Secretary of State may elect to establish eligible
23creditable service for up to 10 years of service as a sheriff's
24law enforcement employee under Article 7, by filing a written
25election with the Board on or before January 31, 1993, and
26paying to the System by January 31, 1994 an amount to be

 

 

09800HB1154ham009- 74 -LRB098 08482 EFG 42440 a

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

 

 

09800HB1154ham009- 75 -LRB098 08482 EFG 42440 a

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

 

 

09800HB1154ham009- 76 -LRB098 08482 EFG 42440 a

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

 

 

09800HB1154ham009- 77 -LRB098 08482 EFG 42440 a

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

 

 

09800HB1154ham009- 78 -LRB098 08482 EFG 42440 a

1up to 10 years of his or her service as a policeman under
2Article 3, by filing a written election with the Board,
3accompanied by payment of an amount to be determined by the
4Board, equal to (i) the difference between the amount of
5employee and employer contributions transferred to the System
6under Section 3-110.5, and the amounts that would have been
7contributed had such contributions been made at the rates
8applicable to security employees of the Department of
9Corrections, plus (ii) interest thereon at the effective rate
10for each year, compounded annually, from the date of service to
11the date of payment.
12    (m) The amendatory changes to this Section made by this
13amendatory Act of the 94th General Assembly apply only to: (1)
14security employees of the Department of Juvenile Justice
15employed by the Department of Corrections before the effective
16date of this amendatory Act of the 94th General Assembly and
17transferred to the Department of Juvenile Justice by this
18amendatory Act of the 94th General Assembly; and (2) persons
19employed by the Department of Juvenile Justice on or after the
20effective date of this amendatory Act of the 94th General
21Assembly who are required by subsection (b) of Section 3-2.5-15
22of the Unified Code of Corrections to have a bachelor's or
23advanced degree from an accredited college or university with a
24specialization in criminal justice, education, psychology,
25social work, or a closely related social science or, in the
26case of persons who provide vocational training, who are

 

 

09800HB1154ham009- 79 -LRB098 08482 EFG 42440 a

1required to have adequate knowledge in the skill for which they
2are providing the vocational training.
3    (n) A person employed in a position under subsection (b) of
4this Section who has purchased service credit under subsection
5(j) of Section 14-104 or subsection (b) of Section 14-105 in
6any other capacity under this Article may convert up to 5 years
7of that service credit into service credit covered under this
8Section by paying to the Fund an amount equal to (1) the
9additional employee contribution required under Section
1014-133, plus (2) the additional employer contribution required
11under Section 14-131, plus (3) interest on items (1) and (2) at
12the actuarially assumed rate from the date of the service to
13the date of payment.
14(Source: P.A. 95-530, eff. 8-28-07; 95-1036, eff. 2-17-09;
1596-37, eff. 7-13-09; 96-745, eff. 8-25-09; 96-1000, eff.
167-2-10.)
 
17    (40 ILCS 5/14-114)  (from Ch. 108 1/2, par. 14-114)
18    Sec. 14-114. Automatic increase in retirement annuity.
19    (a) Except as provided in subsections (a-1) and (a-2), any
20Any person receiving a retirement annuity under this Article
21who retires having attained age 60, or who retires before age
2260 having at least 35 years of creditable service, or who
23retires on or after January 1, 2001 at an age which, when added
24to the number of years of his or her creditable service, equals
25at least 85, shall, on January 1 next following the first full

 

 

09800HB1154ham009- 80 -LRB098 08482 EFG 42440 a

1year of retirement, have the amount of the then fixed and
2payable monthly retirement annuity increased 3%. Any person
3receiving a retirement annuity under this Article who retires
4before attainment of age 60 and with less than (i) 35 years of
5creditable service if retirement is before January 1, 2001, or
6(ii) the number of years of creditable service which, when
7added to the member's age, would equal 85, if retirement is on
8or after January 1, 2001, shall have the amount of the fixed
9and payable retirement annuity increased by 3% on the January 1
10occurring on or next following (1) attainment of age 60, or (2)
11the first anniversary of retirement, whichever occurs later.
12However, for persons who receive the alternative retirement
13annuity under Section 14-110, references in this subsection (a)
14to attainment of age 60 shall be deemed to refer to attainment
15of age 55. For a person receiving early retirement incentives
16under Section 14-108.3 whose retirement annuity began after
17January 1, 1992 pursuant to an extension granted under
18subsection (e) of that Section, the first anniversary of
19retirement shall be deemed to be January 1, 1993. For a person
20who retires on or after June 28, 2001 and on or before October
211, 2001, and whose retirement annuity is calculated, in whole
22or in part, under Section 14-110 or subsection (g) or (h) of
23Section 14-108, the first anniversary of retirement shall be
24deemed to be January 1, 2002.
25    On each January 1 following the date of the initial
26increase under this subsection, the employee's monthly

 

 

09800HB1154ham009- 81 -LRB098 08482 EFG 42440 a

1retirement annuity shall be increased by an additional 3%.
2    Beginning January 1, 1990 and except as provided in
3subsections (a-1) and (a-2), all automatic annual increases
4payable under this Section shall be calculated as a percentage
5of the total annuity payable at the time of the increase,
6including previous increases granted under this Article.
7    (a-1) Notwithstanding any other provision of this Article,
8for a Tier I retiree, the amount of each automatic annual
9increase in retirement annuity occurring on or after the
10effective date of this amendatory Act of the 98th General
11Assembly shall be the lesser of $600 ($750 if the annuity is
12based primarily upon service as a noncovered employee) or 3% of
13the total annuity payable at the time of the increase,
14including previous increases granted.
15    (a-2) Notwithstanding any other provision of this Article,
16for a Tier I retiree, the monthly retirement annuity shall
17first be subject to annual increases on the January 1 occurring
18on or next after the attainment of age 67 or the January 1
19occurring on or next after the fifth anniversary of the annuity
20start date, whichever occurs earlier. If on the effective date
21of this amendatory Act of the 98th General Assembly a Tier I
22retiree has already received an annual increase under this
23Section but does not yet meet the new eligibility requirements
24of this subsection, the annual increases already received shall
25continue in force, but no additional annual increase shall be
26granted until the Tier I retiree meets the new eligibility

 

 

09800HB1154ham009- 82 -LRB098 08482 EFG 42440 a

1requirements.
2    (a-3) Notwithstanding Section 1-103.1, subsections (a-1)
3and (a-2) apply without regard to whether or not the Tier I
4retiree is in active service under this Article on or after the
5effective date of this amendatory Act of the 98th General
6Assembly.
7    (b) The provisions of subsection (a) of this Section shall
8be applicable to an employee only if the employee makes the
9additional contributions required after December 31, 1969 for
10the purpose of the automatic increases for not less than the
11equivalent of one full year. If an employee becomes an
12annuitant before his additional contributions equal one full
13year's contributions based on his salary at the date of
14retirement, the employee may pay the necessary balance of the
15contributions to the system, without interest, and be eligible
16for the increasing annuity authorized by this Section.
17    (c) The provisions of subsection (a) of this Section shall
18not be applicable to any annuitant who is on retirement on
19December 31, 1969, and thereafter returns to State service,
20unless the member has established at least one year of
21additional creditable service following reentry into service.
22    (d) In addition to other increases which may be provided by
23this Section, on January 1, 1981 any annuitant who was
24receiving a retirement annuity on or before January 1, 1971
25shall have his retirement annuity then being paid increased $1
26per month for each year of creditable service. On January 1,

 

 

09800HB1154ham009- 83 -LRB098 08482 EFG 42440 a

11982, any annuitant who began receiving a retirement annuity on
2or before January 1, 1977, shall have his retirement annuity
3then being paid increased $1 per month for each year of
4creditable service.
5    On January 1, 1987, any annuitant who began receiving a
6retirement annuity on or before January 1, 1977, shall have the
7monthly retirement annuity increased by an amount equal to 8
8per year of creditable service times the number of years that
9have elapsed since the annuity began.
10    (e) Every person who receives the alternative retirement
11annuity under Section 14-110 and who is eligible to receive the
123% increase under subsection (a) on January 1, 1986, shall also
13receive on that date a one-time increase in retirement annuity
14equal to the difference between (1) his actual retirement
15annuity on that date, including any increases received under
16subsection (a), and (2) the amount of retirement annuity he
17would have received on that date if the amendments to
18subsection (a) made by Public Act 84-162 had been in effect
19since the date of his retirement.
20(Source: P.A. 91-927, eff. 12-14-00; 92-14, eff. 6-28-01;
2192-651, eff. 7-11-02.)
 
22    (40 ILCS 5/14-131)
23    Sec. 14-131. Contributions by State.
24    (a) The State shall make contributions to the System by
25appropriations of amounts which, together with other employer

 

 

09800HB1154ham009- 84 -LRB098 08482 EFG 42440 a

1contributions from trust, federal, and other funds, employee
2contributions, investment income, and other income, will be
3sufficient to meet the cost of maintaining and administering
4the System on a 100% 90% funded basis in accordance with
5actuarial recommendations by the end of State fiscal year 2043.
6    For the purposes of this Section and Section 14-135.08,
7references to State contributions refer only to employer
8contributions and do not include employee contributions that
9are picked up or otherwise paid by the State or a department on
10behalf of the employee.
11    (b) The Board shall determine the total amount of State
12contributions required for each fiscal year on the basis of the
13actuarial tables and other assumptions adopted by the Board,
14using the formula in subsection (e).
15    The Board shall also determine a State contribution rate
16for each fiscal year, expressed as a percentage of payroll,
17based on the total required State contribution for that fiscal
18year (less the amount received by the System from
19appropriations under Section 8.12 of the State Finance Act and
20Section 1 of the State Pension Funds Continuing Appropriation
21Act, if any, for the fiscal year ending on the June 30
22immediately preceding the applicable November 15 certification
23deadline), the estimated payroll (including all forms of
24compensation) for personal services rendered by eligible
25employees, and the recommendations of the actuary.
26    For the purposes of this Section and Section 14.1 of the

 

 

09800HB1154ham009- 85 -LRB098 08482 EFG 42440 a

1State Finance Act, the term "eligible employees" includes
2employees who participate in the System, persons who may elect
3to participate in the System but have not so elected, persons
4who are serving a qualifying period that is required for
5participation, and annuitants employed by a department as
6described in subdivision (a)(1) or (a)(2) of Section 14-111.
7    (c) Contributions shall be made by the several departments
8for each pay period by warrants drawn by the State Comptroller
9against their respective funds or appropriations based upon
10vouchers stating the amount to be so contributed. These amounts
11shall be based on the full rate certified by the Board under
12Section 14-135.08 for that fiscal year. From the effective date
13of this amendatory Act of the 93rd General Assembly through the
14payment of the final payroll from fiscal year 2004
15appropriations, the several departments shall not make
16contributions for the remainder of fiscal year 2004 but shall
17instead make payments as required under subsection (a-1) of
18Section 14.1 of the State Finance Act. The several departments
19shall resume those contributions at the commencement of fiscal
20year 2005.
21    (c-1) Notwithstanding subsection (c) of this Section, for
22fiscal years 2010, 2012, and 2013 only, contributions by the
23several departments are not required to be made for General
24Revenue Funds payrolls processed by the Comptroller. Payrolls
25paid by the several departments from all other State funds must
26continue to be processed pursuant to subsection (c) of this

 

 

09800HB1154ham009- 86 -LRB098 08482 EFG 42440 a

1Section.
2    (c-2) For State fiscal years 2010, 2012, and 2013 only, on
3or as soon as possible after the 15th day of each month, the
4Board shall submit vouchers for payment of State contributions
5to the System, in a total monthly amount of one-twelfth of the
6fiscal year General Revenue Fund contribution as certified by
7the System pursuant to Section 14-135.08 of the Illinois
8Pension Code.
9    (d) If an employee is paid from trust funds or federal
10funds, the department or other employer shall pay employer
11contributions from those funds to the System at the certified
12rate, unless the terms of the trust or the federal-State
13agreement preclude the use of the funds for that purpose, in
14which case the required employer contributions shall be paid by
15the State. From the effective date of this amendatory Act of
16the 93rd General Assembly through the payment of the final
17payroll from fiscal year 2004 appropriations, the department or
18other employer shall not pay contributions for the remainder of
19fiscal year 2004 but shall instead make payments as required
20under subsection (a-1) of Section 14.1 of the State Finance
21Act. The department or other employer shall resume payment of
22contributions at the commencement of fiscal year 2005.
23    (e) For State fiscal years 2014 through 2043, the minimum
24contribution to the System to be made by the State for each
25fiscal year shall be an amount determined by the System to be
26equal to the sum of (1) the State's portion of the projected

 

 

09800HB1154ham009- 87 -LRB098 08482 EFG 42440 a

1normal cost for that fiscal year, plus (2) an amount sufficient
2to bring the total assets of the System up to 100% of the total
3actuarial liabilities of the System by the end of State fiscal
4year 2043. In making these determinations, the required State
5contribution shall be calculated each year as a level
6percentage of payroll over the years remaining to and including
7fiscal year 2043 and shall be determined under the projected
8unit credit actuarial cost method.
9For State fiscal years 2012 and 2013 through 2045, the minimum
10contribution to the System to be made by the State for each
11fiscal year shall be an amount determined by the System to be
12sufficient to bring the total assets of the System up to 90% of
13the total actuarial liabilities of the System by the end of
14State fiscal year 2045. In making these determinations, the
15required State contribution shall be calculated each year as a
16level percentage of payroll over the years remaining to and
17including fiscal year 2045 and shall be determined under the
18projected unit credit actuarial cost method.
19    For State fiscal years 1996 through 2005, the State
20contribution to the System, as a percentage of the applicable
21employee payroll, shall be increased in equal annual increments
22so that by State fiscal year 2011, the State is contributing at
23the rate required under this Section; except that (i) for State
24fiscal year 1998, for all purposes of this Code and any other
25law of this State, the certified percentage of the applicable
26employee payroll shall be 5.052% for employees earning eligible

 

 

09800HB1154ham009- 88 -LRB098 08482 EFG 42440 a

1creditable service under Section 14-110 and 6.500% for all
2other employees, notwithstanding any contrary certification
3made under Section 14-135.08 before the effective date of this
4amendatory Act of 1997, and (ii) in the following specified
5State fiscal years, the State contribution to the System shall
6not be less than the following indicated percentages of the
7applicable employee payroll, even if the indicated percentage
8will produce a State contribution in excess of the amount
9otherwise required under this subsection and subsection (a):
109.8% in FY 1999; 10.0% in FY 2000; 10.2% in FY 2001; 10.4% in FY
112002; 10.6% in FY 2003; and 10.8% in FY 2004.
12    Notwithstanding any other provision of this Article, the
13total required State contribution to the System for State
14fiscal year 2006 is $203,783,900.
15    Notwithstanding any other provision of this Article, the
16total required State contribution to the System for State
17fiscal year 2007 is $344,164,400.
18    For each of State fiscal years 2008 through 2009, the State
19contribution to the System, as a percentage of the applicable
20employee payroll, shall be increased in equal annual increments
21from the required State contribution for State fiscal year
222007, so that by State fiscal year 2011, the State is
23contributing at the rate otherwise required under this Section.
24    Notwithstanding any other provision of this Article, the
25total required State General Revenue Fund contribution for
26State fiscal year 2010 is $723,703,100 and shall be made from

 

 

09800HB1154ham009- 89 -LRB098 08482 EFG 42440 a

1the proceeds of bonds sold in fiscal year 2010 pursuant to
2Section 7.2 of the General Obligation Bond Act, less (i) the
3pro rata share of bond sale expenses determined by the System's
4share of total bond proceeds, (ii) any amounts received from
5the General Revenue Fund in fiscal year 2010, and (iii) any
6reduction in bond proceeds due to the issuance of discounted
7bonds, if applicable.
8    Notwithstanding any other provision of this Article, the
9total required State General Revenue Fund contribution for
10State fiscal year 2011 is the amount recertified by the System
11on or before April 1, 2011 pursuant to Section 14-135.08 and
12shall be made from the proceeds of bonds sold in fiscal year
132011 pursuant to Section 7.2 of the General Obligation Bond
14Act, less (i) the pro rata share of bond sale expenses
15determined by the System's share of total bond proceeds, (ii)
16any amounts received from the General Revenue Fund in fiscal
17year 2011, and (iii) any reduction in bond proceeds due to the
18issuance of discounted bonds, if applicable.
19    Beginning in State fiscal year 2044, the minimum State
20contribution for each fiscal year shall be the amount needed to
21maintain the total assets of the System at 100% of the total
22actuarial liabilities of the System.
23    Beginning in State fiscal year 2046, the minimum State
24contribution for each fiscal year shall be the amount needed to
25maintain the total assets of the System at 90% of the total
26actuarial liabilities of the System.

 

 

09800HB1154ham009- 90 -LRB098 08482 EFG 42440 a

1    Amounts received by the System pursuant to Section 25 of
2the Budget Stabilization Act or Section 8.12 of the State
3Finance Act in any fiscal year do not reduce and do not
4constitute payment of any portion of the minimum State
5contribution required under this Article in that fiscal year.
6Such amounts shall not reduce, and shall not be included in the
7calculation of, the required State contributions under this
8Article in any future year until the System has reached a
9funding ratio of at least 100% 90%. A reference in this Article
10to the "required State contribution" or any substantially
11similar term does not include or apply to any amounts payable
12to the System under Section 25 of the Budget Stabilization Act.
13    Notwithstanding any other provision of this Section, the
14required State contribution for State fiscal year 2005 and for
15fiscal year 2008 and each fiscal year thereafter through State
16fiscal year 2013, as calculated under this Section and
17certified under Section 14-135.08, shall not exceed an amount
18equal to (i) the amount of the required State contribution that
19would have been calculated under this Section for that fiscal
20year if the System had not received any payments under
21subsection (d) of Section 7.2 of the General Obligation Bond
22Act, minus (ii) the portion of the State's total debt service
23payments for that fiscal year on the bonds issued in fiscal
24year 2003 for the purposes of that Section 7.2, as determined
25and certified by the Comptroller, that is the same as the
26System's portion of the total moneys distributed under

 

 

09800HB1154ham009- 91 -LRB098 08482 EFG 42440 a

1subsection (d) of Section 7.2 of the General Obligation Bond
2Act. In determining this maximum for State fiscal years 2008
3through 2010, however, the amount referred to in item (i) shall
4be increased, as a percentage of the applicable employee
5payroll, in equal increments calculated from the sum of the
6required State contribution for State fiscal year 2007 plus the
7applicable portion of the State's total debt service payments
8for fiscal year 2007 on the bonds issued in fiscal year 2003
9for the purposes of Section 7.2 of the General Obligation Bond
10Act, so that, by State fiscal year 2011, the State is
11contributing at the rate otherwise required under this Section.
12    (f) After the submission of all payments for eligible
13employees from personal services line items in fiscal year 2004
14have been made, the Comptroller shall provide to the System a
15certification of the sum of all fiscal year 2004 expenditures
16for personal services that would have been covered by payments
17to the System under this Section if the provisions of this
18amendatory Act of the 93rd General Assembly had not been
19enacted. Upon receipt of the certification, the System shall
20determine the amount due to the System based on the full rate
21certified by the Board under Section 14-135.08 for fiscal year
222004 in order to meet the State's obligation under this
23Section. The System shall compare this amount due to the amount
24received by the System in fiscal year 2004 through payments
25under this Section and under Section 6z-61 of the State Finance
26Act. If the amount due is more than the amount received, the

 

 

09800HB1154ham009- 92 -LRB098 08482 EFG 42440 a

1difference shall be termed the "Fiscal Year 2004 Shortfall" for
2purposes of this Section, and the Fiscal Year 2004 Shortfall
3shall be satisfied under Section 1.2 of the State Pension Funds
4Continuing Appropriation Act. If the amount due is less than
5the amount received, the difference shall be termed the "Fiscal
6Year 2004 Overpayment" for purposes of this Section, and the
7Fiscal Year 2004 Overpayment shall be repaid by the System to
8the Pension Contribution Fund as soon as practicable after the
9certification.
10    (g) For purposes of determining the required State
11contribution to the System, the value of the System's assets
12shall be equal to the actuarial value of the System's assets,
13which shall be calculated as follows:
14    As of June 30, 2008, the actuarial value of the System's
15assets shall be equal to the market value of the assets as of
16that date. In determining the actuarial value of the System's
17assets for fiscal years after June 30, 2008, any actuarial
18gains or losses from investment return incurred in a fiscal
19year shall be recognized in equal annual amounts over the
205-year period following that fiscal year.
21    (h) For purposes of determining the required State
22contribution to the System for a particular year, the actuarial
23value of assets shall be assumed to earn a rate of return equal
24to the System's actuarially assumed rate of return.
25    (i) After the submission of all payments for eligible
26employees from personal services line items paid from the

 

 

09800HB1154ham009- 93 -LRB098 08482 EFG 42440 a

1General Revenue Fund in fiscal year 2010 have been made, the
2Comptroller shall provide to the System a certification of the
3sum of all fiscal year 2010 expenditures for personal services
4that would have been covered by payments to the System under
5this Section if the provisions of this amendatory Act of the
696th General Assembly had not been enacted. Upon receipt of the
7certification, the System shall determine the amount due to the
8System based on the full rate certified by the Board under
9Section 14-135.08 for fiscal year 2010 in order to meet the
10State's obligation under this Section. The System shall compare
11this amount due to the amount received by the System in fiscal
12year 2010 through payments under this Section. If the amount
13due is more than the amount received, the difference shall be
14termed the "Fiscal Year 2010 Shortfall" for purposes of this
15Section, and the Fiscal Year 2010 Shortfall shall be satisfied
16under Section 1.2 of the State Pension Funds Continuing
17Appropriation Act. If the amount due is less than the amount
18received, the difference shall be termed the "Fiscal Year 2010
19Overpayment" for purposes of this Section, and the Fiscal Year
202010 Overpayment shall be repaid by the System to the General
21Revenue Fund as soon as practicable after the certification.
22    (j) After the submission of all payments for eligible
23employees from personal services line items paid from the
24General Revenue Fund in fiscal year 2011 have been made, the
25Comptroller shall provide to the System a certification of the
26sum of all fiscal year 2011 expenditures for personal services

 

 

09800HB1154ham009- 94 -LRB098 08482 EFG 42440 a

1that would have been covered by payments to the System under
2this Section if the provisions of this amendatory Act of the
396th General Assembly had not been enacted. Upon receipt of the
4certification, the System shall determine the amount due to the
5System based on the full rate certified by the Board under
6Section 14-135.08 for fiscal year 2011 in order to meet the
7State's obligation under this Section. The System shall compare
8this amount due to the amount received by the System in fiscal
9year 2011 through payments under this Section. If the amount
10due is more than the amount received, the difference shall be
11termed the "Fiscal Year 2011 Shortfall" for purposes of this
12Section, and the Fiscal Year 2011 Shortfall shall be satisfied
13under Section 1.2 of the State Pension Funds Continuing
14Appropriation Act. If the amount due is less than the amount
15received, the difference shall be termed the "Fiscal Year 2011
16Overpayment" for purposes of this Section, and the Fiscal Year
172011 Overpayment shall be repaid by the System to the General
18Revenue Fund as soon as practicable after the certification.
19    (k) For fiscal years 2012 and 2013 only, after the
20submission of all payments for eligible employees from personal
21services line items paid from the General Revenue Fund in the
22fiscal year have been made, the Comptroller shall provide to
23the System a certification of the sum of all expenditures in
24the fiscal year for personal services. Upon receipt of the
25certification, the System shall determine the amount due to the
26System based on the full rate certified by the Board under

 

 

09800HB1154ham009- 95 -LRB098 08482 EFG 42440 a

1Section 14-135.08 for the fiscal year in order to meet the
2State's obligation under this Section. The System shall compare
3this amount due to the amount received by the System for the
4fiscal year. If the amount due is more than the amount
5received, the difference shall be termed the "Prior Fiscal Year
6Shortfall" for purposes of this Section, and the Prior Fiscal
7Year Shortfall shall be satisfied under Section 1.2 of the
8State Pension Funds Continuing Appropriation Act. If the amount
9due is less than the amount received, the difference shall be
10termed the "Prior Fiscal Year Overpayment" for purposes of this
11Section, and the Prior Fiscal Year Overpayment shall be repaid
12by the System to the General Revenue Fund as soon as
13practicable after the certification.
14(Source: P.A. 96-43, eff. 7-15-09; 96-45, eff. 7-15-09;
1596-1000, eff. 7-2-10; 96-1497, eff. 1-14-11; 96-1511, eff.
161-27-11; 96-1554, eff. 3-18-11; 97-72, eff. 7-1-11; 97-732,
17eff. 6-30-12.)
 
18    (40 ILCS 5/14-132)  (from Ch. 108 1/2, par. 14-132)
19    Sec. 14-132. Obligations of State; funding guarantee.
20    (a) The payment of the required department contributions,
21all allowances, annuities, benefits granted under this
22Article, and all expenses of administration of the system are
23obligations of the State of Illinois to the extent specified in
24this Article.
25    (b) All income of the system shall be credited to a

 

 

09800HB1154ham009- 96 -LRB098 08482 EFG 42440 a

1separate account for this system in the State treasury and
2shall be used to pay allowances, annuities, benefits and
3administration expense.
4    (c) Beginning July 1, 2013, the State shall be
5contractually obligated to contribute to the System under
6Section 14-131 in each State fiscal year an amount not less
7than the sum of (i) the State's normal cost for that year and
8(ii) the portion of the unfunded accrued liability assigned to
9that year by law in accordance with a schedule that distributes
10payments equitably over a reasonable period of time and in
11accordance with accepted actuarial practices. The obligations
12created under this subsection (c) are contractual obligations
13protected and enforceable under Article I, Section 16 and
14Article XIII, Section 5 of the Illinois Constitution.
15    Notwithstanding any other provision of law, if the State
16fails to pay in a State fiscal year the amount guaranteed under
17this subsection, the System may bring a mandamus action in the
18Circuit Court of Sangamon County to compel the State to make
19that payment, irrespective of other remedies that may be
20available to the System. In ordering the State to make the
21required payment, the court may order a reasonable payment
22schedule to enable the State to make the required payment
23without significantly imperiling the public health, safety, or
24welfare.
25    Any payments required to be made by the State pursuant to
26this subsection (c) are expressly subordinated to the payment

 

 

09800HB1154ham009- 97 -LRB098 08482 EFG 42440 a

1of the principal, interest, and premium, if any, on any bonded
2debt obligation of the State or any other State-created entity,
3either currently outstanding or to be issued, for which the
4source of repayment or security thereon is derived directly or
5indirectly from tax revenues collected by the State or any
6other State-created entity. Payments on such bonded
7obligations include any statutory fund transfers or other
8prefunding mechanisms or formulas set forth, now or hereafter,
9in State law or bond indentures, into debt service funds or
10accounts of the State related to such bonded obligations,
11consistent with the payment schedules associated with such
12obligations.
13(Source: P.A. 80-841.)
 
14    (40 ILCS 5/14-133)  (from Ch. 108 1/2, par. 14-133)
15    Sec. 14-133. Contributions on behalf of members.
16    (a) Each participating employee shall make contributions
17to the System, based on the employee's compensation, as
18follows:
19        (1) Covered employees, except as indicated below, 3.5%
20    for retirement annuity, and 0.5% for a widow or survivors
21    annuity;
22        (2) Noncovered employees, except as indicated below,
23    7% for retirement annuity and 1% for a widow or survivors
24    annuity;
25        (3) Noncovered employees serving in a position in which

 

 

09800HB1154ham009- 98 -LRB098 08482 EFG 42440 a

1    "eligible creditable service" as defined in Section 14-110
2    may be earned, 1% for a widow or survivors annuity plus the
3    following amount for retirement annuity: 8.5% through
4    December 31, 2001; 9.5% in 2002; 10.5% in 2003; and 11.5%
5    in 2004 and thereafter;
6        (4) Covered employees serving in a position in which
7    "eligible creditable service" as defined in Section 14-110
8    may be earned, 0.5% for a widow or survivors annuity plus
9    the following amount for retirement annuity: 5% through
10    December 31, 2001; 6% in 2002; 7% in 2003; and 8% in 2004
11    and thereafter;
12        (5) Each security employee of the Department of
13    Corrections or of the Department of Human Services who is a
14    covered employee, 0.5% for a widow or survivors annuity
15    plus the following amount for retirement annuity: 5%
16    through December 31, 2001; 6% in 2002; 7% in 2003; and 8%
17    in 2004 and thereafter;
18        (6) Each security employee of the Department of
19    Corrections or of the Department of Human Services who is
20    not a covered employee, 1% for a widow or survivors annuity
21    plus the following amount for retirement annuity: 8.5%
22    through December 31, 2001; 9.5% in 2002; 10.5% in 2003; and
23    11.5% in 2004 and thereafter.
24    (a-5) In addition to the contributions otherwise required
25under this Article, each Tier I member shall also make the
26following contributions for retirement annuity from each

 

 

09800HB1154ham009- 99 -LRB098 08482 EFG 42440 a

1payment of compensation:
2        (1) beginning July 1, 2013 and through June 30, 2014,
3    1% of compensation; and
4        (2) beginning on July 1, 2014, 2% of compensation.
5    (b) Contributions shall be in the form of a deduction from
6compensation and shall be made notwithstanding that the
7compensation paid in cash to the employee shall be reduced
8thereby below the minimum prescribed by law or regulation. Each
9member is deemed to consent and agree to the deductions from
10compensation provided for in this Article, and shall receipt in
11full for salary or compensation.
12(Source: P.A. 92-14, eff. 6-28-01.)
 
13    (40 ILCS 5/14-135.08)  (from Ch. 108 1/2, par. 14-135.08)
14    Sec. 14-135.08. To certify required State contributions.
15    (a) To certify to the Governor and to each department, on
16or before November 15 of each year through until November 15,
172011, the required rate for State contributions to the System
18for the next State fiscal year, as determined under subsection
19(b) of Section 14-131. The certification to the Governor under
20this subsection (a) shall include a copy of the actuarial
21recommendations upon which the rate is based and shall
22specifically identify the System's projected State normal cost
23for that fiscal year.
24    (a-5) On or before November 1 of each year, beginning
25November 1, 2012, the Board shall submit to the State Actuary,

 

 

09800HB1154ham009- 100 -LRB098 08482 EFG 42440 a

1the Governor, and the General Assembly a proposed certification
2of the amount of the required State contribution to the System
3for the next fiscal year, along with all of the actuarial
4assumptions, calculations, and data upon which that proposed
5certification is based. On or before January 1 of each year,
6beginning January 1, 2013, the State Actuary shall issue a
7preliminary report concerning the proposed certification and
8identifying, if necessary, recommended changes in actuarial
9assumptions that the Board must consider before finalizing its
10certification of the required State contributions.
11    On or before January 15, 2013 and each January 15
12thereafter, the Board shall certify to the Governor and the
13General Assembly the amount of the required State contribution
14for the next fiscal year. The certification shall include a
15copy of the actuarial recommendations upon which it is based
16and shall specifically identify the System's projected State
17normal cost for that fiscal year. The Board's certification
18must note any deviations from the State Actuary's recommended
19changes, the reason or reasons for not following the State
20Actuary's recommended changes, and the fiscal impact of not
21following the State Actuary's recommended changes on the
22required State contribution.
23    (b) The certifications under subsections (a) and (a-5)
24shall include an additional amount necessary to pay all
25principal of and interest on those general obligation bonds due
26the next fiscal year authorized by Section 7.2(a) of the

 

 

09800HB1154ham009- 101 -LRB098 08482 EFG 42440 a

1General Obligation Bond Act and issued to provide the proceeds
2deposited by the State with the System in July 2003,
3representing deposits other than amounts reserved under
4Section 7.2(c) of the General Obligation Bond Act. For State
5fiscal year 2005, the Board shall make a supplemental
6certification of the additional amount necessary to pay all
7principal of and interest on those general obligation bonds due
8in State fiscal years 2004 and 2005 authorized by Section
97.2(a) of the General Obligation Bond Act and issued to provide
10the proceeds deposited by the State with the System in July
112003, representing deposits other than amounts reserved under
12Section 7.2(c) of the General Obligation Bond Act, as soon as
13practical after the effective date of this amendatory Act of
14the 93rd General Assembly.
15    On or before May 1, 2004, the Board shall recalculate and
16recertify to the Governor and to each department the amount of
17the required State contribution to the System and the required
18rates for State contributions to the System for State fiscal
19year 2005, taking into account the amounts appropriated to and
20received by the System under subsection (d) of Section 7.2 of
21the General Obligation Bond Act.
22    On or before July 1, 2005, the Board shall recalculate and
23recertify to the Governor and to each department the amount of
24the required State contribution to the System and the required
25rates for State contributions to the System for State fiscal
26year 2006, taking into account the changes in required State

 

 

09800HB1154ham009- 102 -LRB098 08482 EFG 42440 a

1contributions made by this amendatory Act of the 94th General
2Assembly.
3    On or before April 1, 2011, the Board shall recalculate and
4recertify to the Governor and to each department the amount of
5the required State contribution to the System for State fiscal
6year 2011, applying the changes made by Public Act 96-889 to
7the System's assets and liabilities as of June 30, 2009 as
8though Public Act 96-889 was approved on that date.
9(Source: P.A. 96-1497, eff. 1-14-11; 96-1511, eff. 1-27-11;
1097-694, eff. 6-18-12.)
 
11    (40 ILCS 5/14-152.1)
12    Sec. 14-152.1. Application and expiration of new benefit
13increases.
14    (a) As used in this Section, "new benefit increase" means
15an increase in the amount of any benefit provided under this
16Article, or an expansion of the conditions of eligibility for
17any benefit under this Article, that results from an amendment
18to this Code that takes effect after June 1, 2005 (the
19effective date of Public Act 94-4). "New benefit increase",
20however, does not include any benefit increase resulting from
21the changes made to this Article by Public Act 96-37 or by this
22amendatory Act of the 98th 96th General Assembly.
23    (b) Notwithstanding any other provision of this Code or any
24subsequent amendment to this Code, every new benefit increase
25is subject to this Section and shall be deemed to be granted

 

 

09800HB1154ham009- 103 -LRB098 08482 EFG 42440 a

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

 

 

09800HB1154ham009- 104 -LRB098 08482 EFG 42440 a

1Assembly from extending or re-creating a new benefit increase
2by law.
3    (e) Except as otherwise provided in the language creating
4the new benefit increase, a new benefit increase that expires
5under this Section continues to apply to persons who applied
6and qualified for the affected benefit while the new benefit
7increase was in effect and to the affected beneficiaries and
8alternate payees of such persons, but does not apply to any
9other person, including without limitation a person who
10continues in service after the expiration date and did not
11apply and qualify for the affected benefit while the new
12benefit increase was in effect.
13(Source: P.A. 96-37, eff. 7-13-09.)
 
14    (40 ILCS 5/15-103.4 new)
15    Sec. 15-103.4. Tier 3 retirement plan. "Tier 3 retirement
16plan": The composite defined-contribution, defined-benefit
17retirement program maintained under the System as described in
18Section 15-158.5.
19    The Tier 3 retirement plan consists of a defined-benefit
20component and a defined-contribution component; both
21components apply to all participants in the Tier 3 retirement
22plan.
 
23    (40 ILCS 5/15-107.1 new)
24    Sec. 15-107.1. Tier I participant. "Tier I participant": A

 

 

09800HB1154ham009- 105 -LRB098 08482 EFG 42440 a

1participant under this Article, other than a participant in the
2self-managed plan under Section 15-158.2, who first became a
3member or participant before January 1, 2011 under any
4reciprocal retirement system or pension fund established under
5this Code other than a retirement system or pension fund
6established under Article 2, 3, 4, 5, 6, or 18 of this Code.
 
7    (40 ILCS 5/15-107.2 new)
8    Sec. 15-107.2. Tier I retiree. "Tier I retiree": A former
9Tier I participant who is receiving a retirement annuity.
10    A person does not become a Tier I retiree by virtue of
11receiving a reversionary, survivors, beneficiary, or
12disability annuity.
 
13    (40 ILCS 5/15-107.3 new)
14    Sec. 15-107.3. Tier 3 employee. "Tier 3 employee": An
15employee, other than a participant in the self-managed plan
16under Section 15-158.2, who first becomes a participant on or
17after January 1, 2014; and an employee who first became a
18participant on or after January 1, 2011 but before January 1,
192014 and has elected to transfer his or her pension credits to
20the Tier 3 retirement plan.
 
21    (40 ILCS 5/15-111)  (from Ch. 108 1/2, par. 15-111)
22    Sec. 15-111. Earnings. "Earnings": An amount paid for
23personal services equal to the sum of the basic compensation

 

 

09800HB1154ham009- 106 -LRB098 08482 EFG 42440 a

1plus extra compensation for summer teaching, overtime or other
2extra service. For periods for which an employee receives
3service credit under subsection (c) of Section 15-113.1 or
4Section 15-113.2, earnings are equal to the basic compensation
5on which contributions are paid by the employee during such
6periods. Compensation for employment which is irregular,
7intermittent and temporary shall not be considered earnings,
8unless the participant is also receiving earnings from the
9employer as an employee under Section 15-107.
10    With respect to transition pay paid by the University of
11Illinois to a person who was a participating employee employed
12in the fire department of the University of Illinois's
13Champaign-Urbana campus immediately prior to the elimination
14of that fire department:
15        (1) "Earnings" includes transition pay paid to the
16    employee on or after the effective date of this amendatory
17    Act of the 91st General Assembly.
18        (2) "Earnings" includes transition pay paid to the
19    employee before the effective date of this amendatory Act
20    of the 91st General Assembly only if (i) employee
21    contributions under Section 15-157 have been withheld from
22    that transition pay or (ii) the employee pays to the System
23    before January 1, 2001 an amount representing employee
24    contributions under Section 15-157 on that transition pay.
25    Employee contributions under item (ii) may be paid in a
26    lump sum, by withholding from additional transition pay

 

 

09800HB1154ham009- 107 -LRB098 08482 EFG 42440 a

1    accruing before January 1, 2001, or in any other manner
2    approved by the System. Upon payment of the employee
3    contributions on transition pay, the corresponding
4    employer contributions become an obligation of the State.
5    (f) Notwithstanding any other provision of this Code, the
6earnings of a Tier I participant or a Tier 3 employee for the
7purposes of this Code shall not exceed, for periods of service
8on or after the effective date of this amendatory Act of the
998th General Assembly, the greater of (i) the annual
10contribution and benefit base established for the applicable
11year by the Commissioner of Social Security under the federal
12Social Security Act or (ii) the annual earnings of the
13participant during the 365 days immediately preceding that
14effective date; except that this limitation does not apply to a
15participant's earnings that are determined under an employment
16contract or collective bargaining agreement that is in effect
17on the effective date of this amendatory Act of the 98th
18General Assembly and has not been amended or renewed after that
19date.
20(Source: P.A. 91-887, eff. 7-6-00.)
 
21    (40 ILCS 5/15-113.6)  (from Ch. 108 1/2, par. 15-113.6)
22    Sec. 15-113.6. Service for employment in public schools.
23"Service for employment in public schools": Includes those
24periods not exceeding the lesser of 10 years or 2/3 of the
25service granted under other Sections of this Article dealing

 

 

09800HB1154ham009- 108 -LRB098 08482 EFG 42440 a

1with service credit, during which a person who entered the
2system after September 1, 1974 was employed full time by a
3public common school, public college and public university, or
4by an agency or instrumentality of any of the foregoing, of any
5state, territory, dependency or possession of the United States
6of America, including the Philippine Islands, or a school
7operated by or under the auspices of any agency or department
8of any other state, if the person (1) cannot qualify for a
9retirement pension or other benefit based upon employer
10contributions from another retirement system, exclusive of
11federal social security, based in whole or in part upon this
12employment, and (2) pays the lesser of (A) an amount equal to
138% of his or her annual basic compensation on the date of
14becoming a participating employee subsequent to this service
15multiplied by the number of years of such service, together
16with compound interest from the date participation begins to
17the date payment is received by the board at the rate of 6% per
18annum through August 31, 1982, and at the effective rates after
19that date, and (B) 50% of the actuarial value of the increase
20in the retirement annuity provided by this service, and (3)
21contributes for at least 5 years subsequent to this employment
22to one or more of the following systems: the State Universities
23Retirement System, the Teachers' Retirement System of the State
24of Illinois, and the Public School Teachers' Pension and
25Retirement Fund of Chicago.
26    The service granted under this Section shall not be

 

 

09800HB1154ham009- 109 -LRB098 08482 EFG 42440 a

1considered in determining whether the person has the minimum of
28 years of service required to qualify for a retirement annuity
3at age 55 or the 5 years of service required to qualify for a
4retirement annuity at age 62, as provided in Section 15-135, or
5the 10 years required by subsection (c) of Section 1-160, or
6the 5 years of service required by Section 15-158.5 for a
7person who first becomes a participant on or after January 1,
82011. The maximum allowable service of 10 years for this
9governmental employment shall be reduced by the service credit
10which is validated under paragraph (2) of subsection (b) of
11Section 16-127 and paragraph 1 of Section 17-133.
12(Source: P.A. 95-83, eff. 8-13-07; 96-1490, eff. 1-1-11.)
 
13    (40 ILCS 5/15-113.7)  (from Ch. 108 1/2, par. 15-113.7)
14    Sec. 15-113.7. Service for other public employment.
15"Service for other public employment": Includes those periods
16not exceeding the lesser of 10 years or 2/3 of the service
17granted under other Sections of this Article dealing with
18service credit, during which a person was employed full time by
19the United States government, or by the government of a state,
20or by a political subdivision of a state, or by an agency or
21instrumentality of any of the foregoing, if the person (1)
22cannot qualify for a retirement pension or other benefit based
23upon employer contributions from another retirement system,
24exclusive of federal social security, based in whole or in part
25upon this employment, and (2) pays the lesser of (A) an amount

 

 

09800HB1154ham009- 110 -LRB098 08482 EFG 42440 a

1equal to 8% of his or her annual basic compensation on the date
2of becoming a participating employee subsequent to this service
3multiplied by the number of years of such service, together
4with compound interest from the date participation begins to
5the date payment is received by the board at the rate of 6% per
6annum through August 31, 1982, and at the effective rates after
7that date, and (B) 50% of the actuarial value of the increase
8in the retirement annuity provided by this service, and (3)
9contributes for at least 5 years subsequent to this employment
10to one or more of the following systems: the State Universities
11Retirement System, the Teachers' Retirement System of the State
12of Illinois, and the Public School Teachers' Pension and
13Retirement Fund of Chicago. If a function of a governmental
14unit as defined by Section 20-107 is transferred by law, in
15whole or in part to an employer, and an employee transfers
16employment from this governmental unit to such employer within
176 months of the transfer of the function, the payment for
18service authorized under this Section shall not exceed the
19amount which would have been payable for this service to the
20retirement system covering the governmental unit from which the
21function was transferred.
22    The service granted under this Section shall not be
23considered in determining whether the person has the minimum of
248 years of service required to qualify for a retirement annuity
25at age 55 or the 5 years of service required to qualify for a
26retirement annuity at age 62, as provided in Section 15-135,

 

 

09800HB1154ham009- 111 -LRB098 08482 EFG 42440 a

1the 10 years required by subsection (c) of Section 1-160, or
2the 5 years of service required by Section 15-158.5. The
3maximum allowable service of 10 years for this governmental
4employment shall be reduced by the service credit which is
5validated under paragraph (2) of subsection (b) of Section
616-127 and paragraph one of Section 17-133.
7    Except as hereinafter provided, this Section shall not
8apply to persons who become participants in the system after
9September 1, 1974.
10(Source: P.A. 95-83, eff. 8-13-07.)
 
11    (40 ILCS 5/15-135)  (from Ch. 108 1/2, par. 15-135)
12    Sec. 15-135. Retirement annuities - Conditions.
13    (a) A participant who retires in one of the following
14specified years with the specified amount of service is
15entitled to a retirement annuity at any age under the
16retirement program applicable to the participant:
17        35 years if retirement is in 1997 or before;
18        34 years if retirement is in 1998;
19        33 years if retirement is in 1999;
20        32 years if retirement is in 2000;
21        31 years if retirement is in 2001;
22        30 years if retirement is in 2002 or later.
23    A participant with 8 or more years of service after
24September 1, 1941, is entitled to a retirement annuity on or
25after attainment of age 55.

 

 

09800HB1154ham009- 112 -LRB098 08482 EFG 42440 a

1    A participant with at least 5 but less than 8 years of
2service after September 1, 1941, is entitled to a retirement
3annuity on or after attainment of age 62.
4    A participant who has at least 25 years of service in this
5system as a police officer or firefighter is entitled to a
6retirement annuity on or after the attainment of age 50, if
7Rule 4 of Section 15-136 is applicable to the participant.
8    (a-5) Notwithstanding subsection (a) of this Section, for a
9Tier I participant who begins receiving a retirement annuity
10under this Article after July 1, 2013:
11        (1) If the Tier I participant is at least 45 years old
12    on the effective date of this amendatory Act of the 98th
13    General Assembly, then the reference to retirement with 30
14    years of service as well as the references to age 50, 55,
15    and 62 in subsection (a) of this Section remain unchanged.
16        (2) If the Tier I participant is at least 40 but less
17    than 45 years old on the effective date of this amendatory
18    Act of the 98th General Assembly, then the reference to
19    retirement with 30 years of service as well as the
20    references to age 50, 55, and 62 in subsection (a) of this
21    Section shall be increased by one year.
22        (3) If the Tier I participant is at least 35 but less
23    than 40 years old on the effective date of this amendatory
24    Act of the 98th General Assembly, then the reference to
25    retirement with 30 years of service as well as the
26    references to age 50, 55, and 62 in subsection (a) of this

 

 

09800HB1154ham009- 113 -LRB098 08482 EFG 42440 a

1    Section shall be increased by 3 years.
2        (4) If the Tier I participant is less than 35 years old
3    on the effective date of this amendatory Act of the 98th
4    General Assembly, then the reference to retirement with 30
5    years of service as well as the references to age 50, 55,
6    and 62 in subsection (a) of this Section shall be increased
7    by 5 years.
8    Notwithstanding Section 1-103.1, this subsection (a-5)
9applies without regard to whether or not the Tier I participant
10is in active service under this Article on or after the
11effective date of this amendatory Act of the 98th General
12Assembly.
13    (b) The annuity payment period shall begin on the date
14specified by the participant or the recipient of a disability
15retirement annuity submitting a written application, which
16date shall not be prior to termination of employment or more
17than one year before the application is received by the board;
18however, if the participant is not an employee of an employer
19participating in this System or in a participating system as
20defined in Article 20 of this Code on April 1 of the calendar
21year next following the calendar year in which the participant
22attains age 70 1/2, the annuity payment period shall begin on
23that date regardless of whether an application has been filed.
24    (c) An annuity is not payable if the amount provided under
25Section 15-136 is less than $10 per month.
26(Source: P.A. 97-933, eff. 8-10-12; 97-968, eff. 8-16-12.)
 

 

 

09800HB1154ham009- 114 -LRB098 08482 EFG 42440 a

1    (40 ILCS 5/15-136)  (from Ch. 108 1/2, par. 15-136)
2    Sec. 15-136. Retirement annuities - Amount. The provisions
3of this Section 15-136 apply only to those participants who are
4participating in the traditional benefit package or the
5portable benefit package and do not apply to participants who
6are participating in the self-managed plan.
7    (a) The amount of a participant's retirement annuity,
8expressed in the form of a single-life annuity, shall be
9determined by whichever of the following rules is applicable
10and provides the largest annuity:
11    Rule 1: The retirement annuity shall be 1.67% of final rate
12of earnings for each of the first 10 years of service, 1.90%
13for each of the next 10 years of service, 2.10% for each year
14of service in excess of 20 but not exceeding 30, and 2.30% for
15each year in excess of 30; or for persons who retire on or
16after January 1, 1998, 2.2% of the final rate of earnings for
17each year of service.
18    Rule 2: The retirement annuity shall be the sum of the
19following, determined from amounts credited to the participant
20in accordance with the actuarial tables and the effective rate
21of interest in effect at the time the retirement annuity
22begins:
23        (i) the normal annuity which can be provided on an
24    actuarially equivalent basis, by the accumulated normal
25    contributions as of the date the annuity begins;

 

 

09800HB1154ham009- 115 -LRB098 08482 EFG 42440 a

1        (ii) an annuity from employer contributions of an
2    amount equal to that which can be provided on an
3    actuarially equivalent basis from the accumulated normal
4    contributions made by the participant under Section
5    15-113.6 and Section 15-113.7 plus 1.4 times all other
6    accumulated normal contributions made by the participant;
7    and
8        (iii) the annuity that can be provided on an
9    actuarially equivalent basis from the entire contribution
10    made by the participant under Section 15-113.3.
11    For the purpose of calculating an annuity under this Rule
122, the contribution required under subsection (c-5) of Section
1315-157 shall not be considered when determining the
14participant's accumulated normal contributions under clause
15(i) or the employer contribution under clause (ii).
16    With respect to a police officer or firefighter who retires
17on or after August 14, 1998, the accumulated normal
18contributions taken into account under clauses (i) and (ii) of
19this Rule 2 shall include the additional normal contributions
20made by the police officer or firefighter under Section
2115-157(a).
22    The amount of a retirement annuity calculated under this
23Rule 2 shall be computed solely on the basis of the
24participant's accumulated normal contributions, as specified
25in this Rule and defined in Section 15-116. Neither an employee
26or employer contribution for early retirement under Section

 

 

09800HB1154ham009- 116 -LRB098 08482 EFG 42440 a

115-136.2 nor any other employer contribution shall be used in
2the calculation of the amount of a retirement annuity under
3this Rule 2.
4    This amendatory Act of the 91st General Assembly is a
5clarification of existing law and applies to every participant
6and annuitant without regard to whether status as an employee
7terminates before the effective date of this amendatory Act.
8    This Rule 2 does not apply to a person who first becomes an
9employee under this Article on or after July 1, 2005.
10    Rule 3: The retirement annuity of a participant who is
11employed at least one-half time during the period on which his
12or her final rate of earnings is based, shall be equal to the
13participant's years of service not to exceed 30, multiplied by
14(1) $96 if the participant's final rate of earnings is less
15than $3,500, (2) $108 if the final rate of earnings is at least
16$3,500 but less than $4,500, (3) $120 if the final rate of
17earnings is at least $4,500 but less than $5,500, (4) $132 if
18the final rate of earnings is at least $5,500 but less than
19$6,500, (5) $144 if the final rate of earnings is at least
20$6,500 but less than $7,500, (6) $156 if the final rate of
21earnings is at least $7,500 but less than $8,500, (7) $168 if
22the final rate of earnings is at least $8,500 but less than
23$9,500, and (8) $180 if the final rate of earnings is $9,500 or
24more, except that the annuity for those persons having made an
25election under Section 15-154(a-1) shall be calculated and
26payable under the portable retirement benefit program pursuant

 

 

09800HB1154ham009- 117 -LRB098 08482 EFG 42440 a

1to the provisions of Section 15-136.4.
2    Rule 4: A participant who is at least age 50 and has 25 or
3more years of service as a police officer or firefighter, and a
4participant who is age 55 or over and has at least 20 but less
5than 25 years of service as a police officer or firefighter,
6shall be entitled to a retirement annuity of 2 1/4% of the
7final rate of earnings for each of the first 10 years of
8service as a police officer or firefighter, 2 1/2% for each of
9the next 10 years of service as a police officer or
10firefighter, and 2 3/4% for each year of service as a police
11officer or firefighter in excess of 20. The retirement annuity
12for all other service shall be computed under Rule 1.
13    For purposes of this Rule 4, a participant's service as a
14firefighter shall also include the following:
15        (i) service that is performed while the person is an
16    employee under subsection (h) of Section 15-107; and
17        (ii) in the case of an individual who was a
18    participating employee employed in the fire department of
19    the University of Illinois's Champaign-Urbana campus
20    immediately prior to the elimination of that fire
21    department and who immediately after the elimination of
22    that fire department transferred to another job with the
23    University of Illinois, service performed as an employee of
24    the University of Illinois in a position other than police
25    officer or firefighter, from the date of that transfer
26    until the employee's next termination of service with the

 

 

09800HB1154ham009- 118 -LRB098 08482 EFG 42440 a

1    University of Illinois.
2    Rule 5: The retirement annuity of a participant who elected
3early retirement under the provisions of Section 15-136.2 and
4who, on or before February 16, 1995, brought administrative
5proceedings pursuant to the administrative rules adopted by the
6System to challenge the calculation of his or her retirement
7annuity shall be the sum of the following, determined from
8amounts credited to the participant in accordance with the
9actuarial tables and the prescribed rate of interest in effect
10at the time the retirement annuity begins:
11        (i) the normal annuity which can be provided on an
12    actuarially equivalent basis, by the accumulated normal
13    contributions as of the date the annuity begins; and
14        (ii) an annuity from employer contributions of an
15    amount equal to that which can be provided on an
16    actuarially equivalent basis from the accumulated normal
17    contributions made by the participant under Section
18    15-113.6 and Section 15-113.7 plus 1.4 times all other
19    accumulated normal contributions made by the participant;
20    and
21        (iii) an annuity which can be provided on an
22    actuarially equivalent basis from the employee
23    contribution for early retirement under Section 15-136.2,
24    and an annuity from employer contributions of an amount
25    equal to that which can be provided on an actuarially
26    equivalent basis from the employee contribution for early

 

 

09800HB1154ham009- 119 -LRB098 08482 EFG 42440 a

1    retirement under Section 15-136.2.
2    In no event shall a retirement annuity under this Rule 5 be
3lower than the amount obtained by adding (1) the monthly amount
4obtained by dividing the combined employee and employer
5contributions made under Section 15-136.2 by the System's
6annuity factor for the age of the participant at the beginning
7of the annuity payment period and (2) the amount equal to the
8participant's annuity if calculated under Rule 1, reduced under
9Section 15-136(b) as if no contributions had been made under
10Section 15-136.2.
11    With respect to a participant who is qualified for a
12retirement annuity under this Rule 5 whose retirement annuity
13began before the effective date of this amendatory Act of the
1491st General Assembly, and for whom an employee contribution
15was made under Section 15-136.2, the System shall recalculate
16the retirement annuity under this Rule 5 and shall pay any
17additional amounts due in the manner provided in Section
1815-186.1 for benefits mistakenly set too low.
19    The amount of a retirement annuity calculated under this
20Rule 5 shall be computed solely on the basis of those
21contributions specifically set forth in this Rule 5. Except as
22provided in clause (iii) of this Rule 5, neither an employee
23nor employer contribution for early retirement under Section
2415-136.2, nor any other employer contribution, shall be used in
25the calculation of the amount of a retirement annuity under
26this Rule 5.

 

 

09800HB1154ham009- 120 -LRB098 08482 EFG 42440 a

1    The General Assembly has adopted the changes set forth in
2Section 25 of this amendatory Act of the 91st General Assembly
3in recognition that the decision of the Appellate Court for the
4Fourth District in Mattis v. State Universities Retirement
5System et al. might be deemed to give some right to the
6plaintiff in that case. The changes made by Section 25 of this
7amendatory Act of the 91st General Assembly are a legislative
8implementation of the decision of the Appellate Court for the
9Fourth District in Mattis v. State Universities Retirement
10System et al. with respect to that plaintiff.
11    The changes made by Section 25 of this amendatory Act of
12the 91st General Assembly apply without regard to whether the
13person is in service as an employee on or after its effective
14date.
15    (b) The retirement annuity provided under Rules 1 and 3
16above shall be reduced by 1/2 of 1% for each month the
17participant is under age 60 at the time of retirement. However,
18this reduction shall not apply in the following cases:
19        (1) For a disabled participant whose disability
20    benefits have been discontinued because he or she has
21    exhausted eligibility for disability benefits under clause
22    (6) of Section 15-152;
23        (2) For a participant who has at least the number of
24    years of service required to retire at any age under
25    subsection (a) of Section 15-135; or
26        (3) For that portion of a retirement annuity which has

 

 

09800HB1154ham009- 121 -LRB098 08482 EFG 42440 a

1    been provided on account of service of the participant
2    during periods when he or she performed the duties of a
3    police officer or firefighter, if these duties were
4    performed for at least 5 years immediately preceding the
5    date the retirement annuity is to begin.
6    (c) The maximum retirement annuity provided under Rules 1,
72, 4, and 5 shall be the lesser of (1) the annual limit of
8benefits as specified in Section 415 of the Internal Revenue
9Code of 1986, as such Section may be amended from time to time
10and as such benefit limits shall be adjusted by the
11Commissioner of Internal Revenue, and (2) 80% of final rate of
12earnings.
13    (d) Subject to the provisions of subsections (d-1) and
14(d-2), an An annuitant whose status as an employee terminates
15after August 14, 1969 shall receive automatic increases in his
16or her retirement annuity as follows:
17    Effective January 1 immediately following the date the
18retirement annuity begins, the annuitant shall receive an
19increase in his or her monthly retirement annuity of 0.125% of
20the monthly retirement annuity provided under Rule 1, Rule 2,
21Rule 3, Rule 4, or Rule 5, contained in this Section,
22multiplied by the number of full months which elapsed from the
23date the retirement annuity payments began to January 1, 1972,
24plus 0.1667% of such annuity, multiplied by the number of full
25months which elapsed from January 1, 1972, or the date the
26retirement annuity payments began, whichever is later, to

 

 

09800HB1154ham009- 122 -LRB098 08482 EFG 42440 a

1January 1, 1978, plus 0.25% of such annuity multiplied by the
2number of full months which elapsed from January 1, 1978, or
3the date the retirement annuity payments began, whichever is
4later, to the effective date of the increase.
5    The annuitant shall receive an increase in his or her
6monthly retirement annuity on each January 1 thereafter during
7the annuitant's life of 3% of the monthly annuity provided
8under Rule 1, Rule 2, Rule 3, Rule 4, or Rule 5 contained in
9this Section. The change made under this subsection by P.A.
1081-970 is effective January 1, 1980 and applies to each
11annuitant whose status as an employee terminates before or
12after that date.
13    Beginning January 1, 1990 and except as provided in
14subsections (d-1) and (d-2), all automatic annual increases
15payable under this Section shall be calculated as a percentage
16of the total annuity payable at the time of the increase,
17including all increases previously granted under this Article.
18    The change made in this subsection by P.A. 85-1008 is
19effective January 26, 1988, and is applicable without regard to
20whether status as an employee terminated before that date.
21    (d-1) Notwithstanding any other provision of this Article,
22for a Tier I retiree, the amount of each automatic annual
23increase in retirement annuity occurring on or after the
24effective date of this amendatory Act of the 98th General
25Assembly shall be the lesser of $750 or 3% of the total annuity
26payable at the time of the increase, including previous

 

 

09800HB1154ham009- 123 -LRB098 08482 EFG 42440 a

1increases granted.
2    (d-2) Notwithstanding any other provision of this Article,
3for a Tier I retiree, the monthly retirement annuity shall
4first be subject to annual increases on the January 1 occurring
5on or next after the attainment of age 67 or the January 1
6occurring on or next after the fifth anniversary of the annuity
7start date, whichever occurs earlier. If on the effective date
8of this amendatory Act of the 98th General Assembly a Tier I
9retiree has already received an annual increase under this
10Section but does not yet meet the new eligibility requirements
11of this subsection, the annual increases already received shall
12continue in force, but no additional annual increase shall be
13granted until the Tier I retiree meets the new eligibility
14requirements.
15    (d-3) Notwithstanding Section 1-103.1, subsections (d-1)
16and (d-2) apply without regard to whether or not the Tier I
17retiree is in active service under this Article on or after the
18effective date of this amendatory Act of the 98th General
19Assembly.
20    (e) If, on January 1, 1987, or the date the retirement
21annuity payment period begins, whichever is later, the sum of
22the retirement annuity provided under Rule 1 or Rule 2 of this
23Section and the automatic annual increases provided under the
24preceding subsection or Section 15-136.1, amounts to less than
25the retirement annuity which would be provided by Rule 3, the
26retirement annuity shall be increased as of January 1, 1987, or

 

 

09800HB1154ham009- 124 -LRB098 08482 EFG 42440 a

1the date the retirement annuity payment period begins,
2whichever is later, to the amount which would be provided by
3Rule 3 of this Section. Such increased amount shall be
4considered as the retirement annuity in determining benefits
5provided under other Sections of this Article. This paragraph
6applies without regard to whether status as an employee
7terminated before the effective date of this amendatory Act of
81987, provided that the annuitant was employed at least
9one-half time during the period on which the final rate of
10earnings was based.
11    (f) A participant is entitled to such additional annuity as
12may be provided on an actuarially equivalent basis, by any
13accumulated additional contributions to his or her credit.
14However, the additional contributions made by the participant
15toward the automatic increases in annuity provided under this
16Section and the contributions made under subsection (c-5) of
17Section 15-157 by this amendatory Act of the 98th General
18Assembly shall not be taken into account in determining the
19amount of such additional annuity.
20    (g) If, (1) by law, a function of a governmental unit, as
21defined by Section 20-107 of this Code, is transferred in whole
22or in part to an employer, and (2) a participant transfers
23employment from such governmental unit to such employer within
246 months after the transfer of the function, and (3) the sum of
25(A) the annuity payable to the participant under Rule 1, 2, or
263 of this Section (B) all proportional annuities payable to the

 

 

09800HB1154ham009- 125 -LRB098 08482 EFG 42440 a

1participant by all other retirement systems covered by Article
220, and (C) the initial primary insurance amount to which the
3participant is entitled under the Social Security Act, is less
4than the retirement annuity which would have been payable if
5all of the participant's pension credits validated under
6Section 20-109 had been validated under this system, a
7supplemental annuity equal to the difference in such amounts
8shall be payable to the participant.
9    (h) On January 1, 1981, an annuitant who was receiving a
10retirement annuity on or before January 1, 1971 shall have his
11or her retirement annuity then being paid increased $1 per
12month for each year of creditable service. On January 1, 1982,
13an annuitant whose retirement annuity began on or before
14January 1, 1977, shall have his or her retirement annuity then
15being paid increased $1 per month for each year of creditable
16service.
17    (i) On January 1, 1987, any annuitant whose retirement
18annuity began on or before January 1, 1977, shall have the
19monthly retirement annuity increased by an amount equal to 8
20per year of creditable service times the number of years that
21have elapsed since the annuity began.
22    (j) For participants to whom subsection (a-5) of Section
2315-135 applies, the references to age 50, 55, and 62 in this
24Section are increased as provided in subsection (a-5) of
25Section 15-135.
26(Source: P.A. 97-933, eff. 8-10-12; 97-968, eff. 8-16-12.)
 

 

 

09800HB1154ham009- 126 -LRB098 08482 EFG 42440 a

1    (40 ILCS 5/15-139)  (from Ch. 108 1/2, par. 15-139)
2    Sec. 15-139. Retirement annuities; cancellation; suspended
3during employment.
4    (a) If an annuitant returns to employment for an employer
5within 60 days after the beginning of the retirement annuity
6payment period, the retirement annuity shall be cancelled, and
7the annuitant shall refund to the System the total amount of
8the retirement annuity payments which he or she received. If
9the retirement annuity is cancelled, the participant shall
10continue to participate in the System.
11    (b) If an annuitant retires prior to age 60 and receives or
12becomes entitled to receive during any month compensation in
13excess of the monthly retirement annuity (including any
14automatic annual increases) for services performed after the
15date of retirement for any employer under this System, that
16portion of the monthly retirement annuity provided by employer
17contributions shall not be payable.
18    If an annuitant retires at age 60 or over and receives or
19becomes entitled to receive during any academic year
20compensation in excess of the difference between his or her
21highest annual earnings prior to retirement and his or her
22annual retirement annuity computed under Rule 1, Rule 2, Rule
233, Rule 4, or Rule 5 of Section 15-136, or under Section
2415-136.4 or 15-158.5, for services performed after the date of
25retirement for any employer under this System, that portion of

 

 

09800HB1154ham009- 127 -LRB098 08482 EFG 42440 a

1the monthly retirement annuity provided by employer
2contributions shall be reduced by an amount equal to the
3compensation that exceeds such difference.
4    However, any remuneration received for serving as a member
5of the Illinois Educational Labor Relations Board shall be
6excluded from "compensation" for the purposes of this
7subsection (b), and serving as a member of the Illinois
8Educational Labor Relations Board shall not be deemed to be a
9return to employment for the purposes of this Section. This
10provision applies without regard to whether service was
11terminated prior to the effective date of this amendatory Act
12of 1991.
13    (c) If an employer certifies that an annuitant has been
14reemployed on a permanent and continuous basis or in a position
15in which the annuitant is expected to serve for at least 9
16months, the annuitant shall resume his or her status as a
17participating employee and shall be entitled to all rights
18applicable to participating employees upon filing with the
19board an election to forgo all annuity payments during the
20period of reemployment. Upon subsequent retirement, the
21retirement annuity shall consist of the annuity which was
22terminated by the reemployment, plus the additional retirement
23annuity based upon service granted during the period of
24reemployment, but the combined retirement annuity shall not
25exceed the maximum annuity applicable on the date of the last
26retirement.

 

 

09800HB1154ham009- 128 -LRB098 08482 EFG 42440 a

1    The total service and earnings credited before and after
2the initial date of retirement shall be considered in
3determining eligibility of the employee or the employee's
4beneficiary to benefits under this Article, and in calculating
5final rate of earnings.
6    In determining the death benefit payable to a beneficiary
7of an annuitant who again becomes a participating employee
8under this Section, accumulated normal and additional
9contributions shall be considered as the sum of the accumulated
10normal and additional contributions at the date of initial
11retirement and the accumulated normal and additional
12contributions credited after that date, less the sum of the
13annuity payments received by the annuitant.
14    The survivors insurance benefits provided under Section
1515-145 shall not be applicable to an annuitant who resumes his
16or her status as a participating employee, unless the
17annuitant, at the time of initial retirement, has a survivors
18insurance beneficiary who could qualify for such benefits.
19    If the participant's employment is terminated because of
20circumstances other than death before 9 months from the date of
21reemployment, the provisions of this Section regarding
22resumption of status as a participating employee shall not
23apply. The normal and survivors insurance contributions which
24are deducted during this period shall be refunded to the
25annuitant without interest, and subsequent benefits under this
26Article shall be the same as those which were applicable prior

 

 

09800HB1154ham009- 129 -LRB098 08482 EFG 42440 a

1to the date the annuitant resumed employment.
2    The amendments made to this Section by this amendatory Act
3of the 91st General Assembly apply without regard to whether
4the annuitant was in service on or after the effective date of
5this amendatory Act.
6    This Section also applies to retirement annuities under the
7Tier 3 retirement plan established under Section 15-158.5.
8(Source: P.A. 97-933, eff. 8-10-12; 97-968, eff. 8-16-12.)
 
9    (40 ILCS 5/15-153.2)  (from Ch. 108 1/2, par. 15-153.2)
10    Sec. 15-153.2. Disability retirement annuity. A
11participant whose disability benefits are discontinued under
12the provisions of clause (6) of Section 15-152 and who is not a
13participant in the optional retirement plan established under
14Section 15-158.2 is entitled to a disability retirement annuity
15of 35% of the basic compensation which was payable to the
16participant at the time that disability began, provided that
17the board determines that the participant has a medically
18determinable physical or mental impairment that prevents him or
19her from engaging in any substantial gainful activity, and
20which can be expected to result in death or which has lasted or
21can be expected to last for a continuous period of not less
22than 12 months.
23    The board's determination of whether a participant is
24disabled shall be based upon:
25        (i) a written certificate from one or more licensed and

 

 

09800HB1154ham009- 130 -LRB098 08482 EFG 42440 a

1    practicing physicians appointed by or acceptable to the
2    board, stating that the participant is unable to engage in
3    any substantial gainful activity; and
4        (ii) any other medical examinations, hospital records,
5    laboratory results, or other information necessary for
6    determining the employment capacity and condition of the
7    participant.
8    The terms "medically determinable physical or mental
9impairment" and "substantial gainful activity" shall have the
10meanings ascribed to them in the federal Social Security Act,
11as now or hereafter amended, and the regulations issued
12thereunder.
13    The disability retirement annuity payment period shall
14begin immediately following the expiration of the disability
15benefit payments under clause (6) of Section 15-152 and shall
16be discontinued for a recipient of a disability retirement
17annuity when (1) the physical or mental impairment no longer
18prevents the participant from engaging in any substantial
19gainful activity, (2) the participant dies or (3) the
20participant elects to receive a retirement annuity under
21Sections 15-135 and 15-136 or Section 15-158.5. If a person's
22disability retirement annuity is discontinued under clause
23(1), all rights and credits accrued in the system on the date
24that the disability retirement annuity began shall be restored,
25and the disability retirement annuity paid shall be considered
26as disability payments under clause (6) of Section 15-152.

 

 

09800HB1154ham009- 131 -LRB098 08482 EFG 42440 a

1(Source: P.A. 97-933, eff. 8-10-12; 97-968, eff. 8-16-12.)
 
2    (40 ILCS 5/15-155)  (from Ch. 108 1/2, par. 15-155)
3    Sec. 15-155. Employer contributions.
4    (a) The State of Illinois shall make contributions by
5appropriations of amounts which, together with the other
6employer contributions from trust, federal, and other funds,
7employee contributions, income from investments, and other
8income of this System, will be sufficient to meet the cost of
9maintaining and administering the System on a 100% 90% funded
10basis in accordance with actuarial recommendations by the end
11of State fiscal year 2043.
12    The Board shall determine the amount of State contributions
13required for each fiscal year on the basis of the actuarial
14tables and other assumptions adopted by the Board and the
15recommendations of the actuary, using the formula in subsection
16(a-1).
17    (a-1) For State fiscal years 2014 through 2043, the minimum
18contribution to the System to be made by the State for each
19fiscal year shall be an amount determined by the System to be
20equal to the sum of (1) the State's portion of the projected
21normal cost for that fiscal year, plus (2) an amount sufficient
22to bring the total assets of the System up to 100% of the total
23actuarial liabilities of the System by the end of State fiscal
24year 2043. In making these determinations, the required State
25contribution shall be calculated each year as a level

 

 

09800HB1154ham009- 132 -LRB098 08482 EFG 42440 a

1percentage of payroll over the years remaining to and including
2fiscal year 2043 and shall be determined under the projected
3unit credit actuarial cost method.
4    Beginning in State fiscal year 2044, the minimum State
5contribution for each fiscal year shall be the amount needed to
6maintain the total assets of the System at 100% of the total
7actuarial liabilities of the System.
8    For State fiscal years 2012 and 2013 through 2045, the
9minimum contribution to the System to be made by the State for
10each fiscal year shall be an amount determined by the System to
11be sufficient to bring the total assets of the System up to 90%
12of the total actuarial liabilities of the System by the end of
13State fiscal year 2045. In making these determinations, the
14required State contribution shall be calculated each year as a
15level percentage of payroll over the years remaining to and
16including fiscal year 2045 and shall be determined under the
17projected unit credit actuarial cost method.
18    For State fiscal years 1996 through 2005, the State
19contribution to the System, as a percentage of the applicable
20employee payroll, shall be increased in equal annual increments
21so that by State fiscal year 2011, the State is contributing at
22the rate required under this Section.
23    Notwithstanding any other provision of this Article, the
24total required State contribution for State fiscal year 2006 is
25$166,641,900.
26    Notwithstanding any other provision of this Article, the

 

 

09800HB1154ham009- 133 -LRB098 08482 EFG 42440 a

1total required State contribution for State fiscal year 2007 is
2$252,064,100.
3    For each of State fiscal years 2008 through 2009, the State
4contribution to the System, as a percentage of the applicable
5employee payroll, shall be increased in equal annual increments
6from the required State contribution for State fiscal year
72007, so that by State fiscal year 2011, the State is
8contributing at the rate otherwise required under this Section.
9    Notwithstanding any other provision of this Article, the
10total required State contribution for State fiscal year 2010 is
11$702,514,000 and shall be made from the State Pensions Fund and
12proceeds of bonds sold in fiscal year 2010 pursuant to Section
137.2 of the General Obligation Bond Act, less (i) the pro rata
14share of bond sale expenses determined by the System's share of
15total bond proceeds, (ii) any amounts received from the General
16Revenue Fund in fiscal year 2010, (iii) any reduction in bond
17proceeds due to the issuance of discounted bonds, if
18applicable.
19    Notwithstanding any other provision of this Article, the
20total required State contribution for State fiscal year 2011 is
21the amount recertified by the System on or before April 1, 2011
22pursuant to Section 15-165 and shall be made from the State
23Pensions Fund and proceeds of bonds sold in fiscal year 2011
24pursuant to Section 7.2 of the General Obligation Bond Act,
25less (i) the pro rata share of bond sale expenses determined by
26the System's share of total bond proceeds, (ii) any amounts

 

 

09800HB1154ham009- 134 -LRB098 08482 EFG 42440 a

1received from the General Revenue Fund in fiscal year 2011, and
2(iii) any reduction in bond proceeds due to the issuance of
3discounted bonds, if applicable.
4    Beginning in State fiscal year 2046, the minimum State
5contribution for each fiscal year shall be the amount needed to
6maintain the total assets of the System at 90% of the total
7actuarial liabilities of the System.
8    Amounts received by the System pursuant to Section 25 of
9the Budget Stabilization Act or Section 8.12 of the State
10Finance Act in any fiscal year do not reduce and do not
11constitute payment of any portion of the minimum State
12contribution required under this Article in that fiscal year.
13Such amounts shall not reduce, and shall not be included in the
14calculation of, the required State contributions under this
15Article in any future year until the System has reached a
16funding ratio of at least 100% 90%. A reference in this Article
17to the "required State contribution" or any substantially
18similar term does not include or apply to any amounts payable
19to the System under Section 25 of the Budget Stabilization Act.
20    Notwithstanding any other provision of this Section, the
21required State contribution for State fiscal year 2005 and for
22fiscal year 2008 and each fiscal year thereafter through State
23fiscal year 2013, as calculated under this Section and
24certified under Section 15-165, shall not exceed an amount
25equal to (i) the amount of the required State contribution that
26would have been calculated under this Section for that fiscal

 

 

09800HB1154ham009- 135 -LRB098 08482 EFG 42440 a

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

 

 

09800HB1154ham009- 136 -LRB098 08482 EFG 42440 a

1universities shall not be considered trust funds for the
2purpose of this Article, but funds of alumni associations,
3foundations, and athletic associations which are affiliated
4with the universities included as employers under this Article
5and other employers which do not receive State appropriations
6are considered to be trust funds for the purpose of this
7Article.
8    (b-1) The City of Urbana and the City of Champaign shall
9each make employer contributions to this System for their
10respective firefighter employees who participate in this
11System pursuant to subsection (h) of Section 15-107. The rate
12of contributions to be made by those municipalities shall be
13determined annually by the Board on the basis of the actuarial
14assumptions adopted by the Board and the recommendations of the
15actuary, and shall be expressed as a percentage of salary for
16each such employee. The Board shall certify the rate to the
17affected municipalities as soon as may be practical. The
18employer contributions required under this subsection shall be
19remitted by the municipality to the System at the same time and
20in the same manner as employee contributions.
21    (c) Through State fiscal year 1995: The total employer
22contribution shall be apportioned among the various funds of
23the State and other employers, whether trust, federal, or other
24funds, in accordance with actuarial procedures approved by the
25Board. State of Illinois contributions for employers receiving
26State appropriations for personal services shall be payable

 

 

09800HB1154ham009- 137 -LRB098 08482 EFG 42440 a

1from appropriations made to the employers or to the System. The
2contributions for Class I community colleges covering earnings
3other than those paid from trust and federal funds, shall be
4payable solely from appropriations to the Illinois Community
5College Board or the System for employer contributions.
6    (d) Beginning in State fiscal year 1996, the required State
7contributions to the System shall be appropriated directly to
8the System and shall be payable through vouchers issued in
9accordance with subsection (c) of Section 15-165, except as
10provided in subsection (g).
11    (e) The State Comptroller shall draw warrants payable to
12the System upon proper certification by the System or by the
13employer in accordance with the appropriation laws and this
14Code.
15    (f) Normal costs under this Section means liability for
16pensions and other benefits which accrues to the System because
17of the credits earned for service rendered by the participants
18during the fiscal year and expenses of administering the
19System, but shall not include the principal of or any
20redemption premium or interest on any bonds issued by the Board
21or any expenses incurred or deposits required in connection
22therewith.
23    (g) If the amount of a participant's earnings for any
24academic year used to determine the final rate of earnings,
25determined on a full-time equivalent basis, exceeds the amount
26of his or her earnings with the same employer for the previous

 

 

09800HB1154ham009- 138 -LRB098 08482 EFG 42440 a

1academic year, determined on a full-time equivalent basis, by
2more than 6%, the participant's employer shall pay to the
3System, in addition to all other payments required under this
4Section and in accordance with guidelines established by the
5System, the present value of the increase in benefits resulting
6from the portion of the increase in earnings that is in excess
7of 6%. This present value shall be computed by the System on
8the basis of the actuarial assumptions and tables used in the
9most recent actuarial valuation of the System that is available
10at the time of the computation. The System may require the
11employer to provide any pertinent information or
12documentation.
13    Whenever it determines that a payment is or may be required
14under this subsection (g), the System shall calculate the
15amount of the payment and bill the employer for that amount.
16The bill shall specify the calculations used to determine the
17amount due. If the employer disputes the amount of the bill, it
18may, within 30 days after receipt of the bill, apply to the
19System in writing for a recalculation. The application must
20specify in detail the grounds of the dispute and, if the
21employer asserts that the calculation is subject to subsection
22(h) or (i) of this Section, must include an affidavit setting
23forth and attesting to all facts within the employer's
24knowledge that are pertinent to the applicability of subsection
25(h) or (i). Upon receiving a timely application for
26recalculation, the System shall review the application and, if

 

 

09800HB1154ham009- 139 -LRB098 08482 EFG 42440 a

1appropriate, recalculate the amount due.
2    The employer contributions required under this subsection
3(g) (f) may be paid in the form of a lump sum within 90 days
4after receipt of the bill. If the employer contributions are
5not paid within 90 days after receipt of the bill, then
6interest will be charged at a rate equal to the System's annual
7actuarially assumed rate of return on investment compounded
8annually from the 91st day after receipt of the bill. Payments
9must be concluded within 3 years after the employer's receipt
10of the bill.
11    (h) This subsection (h) applies only to payments made or
12salary increases given on or after June 1, 2005 but before July
131, 2011. The changes made by Public Act 94-1057 shall not
14require the System to refund any payments received before July
1531, 2006 (the effective date of Public Act 94-1057).
16    When assessing payment for any amount due under subsection
17(g), the System shall exclude earnings increases paid to
18participants under contracts or collective bargaining
19agreements entered into, amended, or renewed before June 1,
202005.
21    When assessing payment for any amount due under subsection
22(g), the System shall exclude earnings increases paid to a
23participant at a time when the participant is 10 or more years
24from retirement eligibility under Section 15-135.
25    When assessing payment for any amount due under subsection
26(g), the System shall exclude earnings increases resulting from

 

 

09800HB1154ham009- 140 -LRB098 08482 EFG 42440 a

1overload work, including a contract for summer teaching, or
2overtime when the employer has certified to the System, and the
3System has approved the certification, that: (i) in the case of
4overloads (A) the overload work is for the sole purpose of
5academic instruction in excess of the standard number of
6instruction hours for a full-time employee occurring during the
7academic year that the overload is paid and (B) the earnings
8increases are equal to or less than the rate of pay for
9academic instruction computed using the participant's current
10salary rate and work schedule; and (ii) in the case of
11overtime, the overtime was necessary for the educational
12mission.
13    When assessing payment for any amount due under subsection
14(g), the System shall exclude any earnings increase resulting
15from (i) a promotion for which the employee moves from one
16classification to a higher classification under the State
17Universities Civil Service System, (ii) a promotion in academic
18rank for a tenured or tenure-track faculty position, or (iii) a
19promotion that the Illinois Community College Board has
20recommended in accordance with subsection (k) of this Section.
21These earnings increases shall be excluded only if the
22promotion is to a position that has existed and been filled by
23a member for no less than one complete academic year and the
24earnings increase as a result of the promotion is an increase
25that results in an amount no greater than the average salary
26paid for other similar positions.

 

 

09800HB1154ham009- 141 -LRB098 08482 EFG 42440 a

1    (i) When assessing payment for any amount due under
2subsection (g), the System shall exclude any salary increase
3described in subsection (h) of this Section given on or after
4July 1, 2011 but before July 1, 2014 under a contract or
5collective bargaining agreement entered into, amended, or
6renewed on or after June 1, 2005 but before July 1, 2011.
7Notwithstanding any other provision of this Section, any
8payments made or salary increases given after June 30, 2014
9shall be used in assessing payment for any amount due under
10subsection (g) of this Section.
11    (j) The System shall prepare a report and file copies of
12the report with the Governor and the General Assembly by
13January 1, 2007 that contains all of the following information:
14        (1) The number of recalculations required by the
15    changes made to this Section by Public Act 94-1057 for each
16    employer.
17        (2) The dollar amount by which each employer's
18    contribution to the System was changed due to
19    recalculations required by Public Act 94-1057.
20        (3) The total amount the System received from each
21    employer as a result of the changes made to this Section by
22    Public Act 94-4.
23        (4) The increase in the required State contribution
24    resulting from the changes made to this Section by Public
25    Act 94-1057.
26    (k) The Illinois Community College Board shall adopt rules

 

 

09800HB1154ham009- 142 -LRB098 08482 EFG 42440 a

1for recommending lists of promotional positions submitted to
2the Board by community colleges and for reviewing the
3promotional lists on an annual basis. When recommending
4promotional lists, the Board shall consider the similarity of
5the positions submitted to those positions recognized for State
6universities by the State Universities Civil Service System.
7The Illinois Community College Board shall file a copy of its
8findings with the System. The System shall consider the
9findings of the Illinois Community College Board when making
10determinations under this Section. The System shall not exclude
11any earnings increases resulting from a promotion when the
12promotion was not submitted by a community college. Nothing in
13this subsection (k) shall require any community college to
14submit any information to the Community College Board.
15    (l) For purposes of determining the required State
16contribution to the System, the value of the System's assets
17shall be equal to the actuarial value of the System's assets,
18which shall be calculated as follows:
19    As of June 30, 2008, the actuarial value of the System's
20assets shall be equal to the market value of the assets as of
21that date. In determining the actuarial value of the System's
22assets for fiscal years after June 30, 2008, any actuarial
23gains or losses from investment return incurred in a fiscal
24year shall be recognized in equal annual amounts over the
255-year period following that fiscal year.
26    (m) For purposes of determining the required State

 

 

09800HB1154ham009- 143 -LRB098 08482 EFG 42440 a

1contribution to the system for a particular year, the actuarial
2value of assets shall be assumed to earn a rate of return equal
3to the system's actuarially assumed rate of return.
4(Source: P.A. 96-43, eff. 7-15-09; 96-1497, eff. 1-14-11;
596-1511, eff. 1-27-11; 96-1554, eff. 3-18-11; 97-813, eff.
67-13-12; revised 10-17-12.)
 
7    (40 ILCS 5/15-155.1 new)
8    Sec. 15-155.1. Actions to enforce payments by employers
9other than the State. Any employer, other than the State, that
10fails to transmit to the System contributions required of it
11under this Article or contributions required of employees, for
12more than 90 days after such contributions are due, is subject
13to the following: after giving notice to the employer, the
14System may certify to the State Comptroller or the Illinois
15Community College Board, whichever is applicable, the amounts
16of such delinquent payments and the State Comptroller or the
17Illinois Community College Board, whichever is applicable,
18shall deduct the amounts so certified or any part thereof from
19any State funds to be remitted to the employer and shall pay
20the amount so deducted to the System. If State funds from which
21such deductions may be made are not available, the System may
22proceed against the employer to recover the amounts of such
23delinquent payments in the appropriate circuit court.
24    The System may provide for an audit of the records of an
25employer, other than the State, as may be required to establish

 

 

09800HB1154ham009- 144 -LRB098 08482 EFG 42440 a

1the amounts of required contributions. The employer shall make
2its records available to the System for the purpose of such
3audit. The cost of such audit shall be added to the amount of
4the delinquent payments and may be recovered by the System from
5the employer at the same time and in the same manner as the
6delinquent payments are recovered.
 
7    (40 ILCS 5/15-156)  (from Ch. 108 1/2, par. 15-156)
8    Sec. 15-156. Obligations of State; funding guarantees.
9    (a) The payment of (1) the required State contributions,
10(2) all benefits granted under this system and (3) all expenses
11in connection with the administration and operation thereof are
12obligations of the State of Illinois to the extent specified in
13this Article. The accumulated employee normal, additional and
14survivors insurance contributions credited to the accounts of
15active and inactive participants shall not be used to pay the
16State's share of the obligations.
17    (b) Beginning July 1, 2013, the State shall be
18contractually obligated to contribute to the System under
19Section 15-155 in each State fiscal year an amount not less
20than the sum of (i) the State's normal cost for that year and
21(ii) the portion of the unfunded accrued liability assigned to
22that year by law in accordance with a schedule that distributes
23payments equitably over a reasonable period of time and in
24accordance with accepted actuarial practices. The obligations
25created under this subsection (b) are contractual obligations

 

 

09800HB1154ham009- 145 -LRB098 08482 EFG 42440 a

1protected and enforceable under Article I, Section 16 and
2Article XIII, Section 5 of the Illinois Constitution.
3    Notwithstanding any other provision of law, if the State
4fails to pay in a State fiscal year the amount guaranteed under
5this subsection, the System may bring a mandamus action in the
6Circuit Court of Sangamon or Champaign County to compel the
7State to make that payment, irrespective of other remedies that
8may be available to the System. In ordering the State to make
9the required payment, the court may order a reasonable payment
10schedule to enable the State to make the required payment
11without significantly imperiling the public health, safety, or
12welfare.
13    Any payments required to be made by the State pursuant to
14this subsection (b) are expressly subordinated to the payment
15of the principal, interest, and premium, if any, on any bonded
16debt obligation of the State or any other State-created entity,
17either currently outstanding or to be issued, for which the
18source of repayment or security thereon is derived directly or
19indirectly from tax revenues collected by the State or any
20other State-created entity. Payments on such bonded
21obligations include any statutory fund transfers or other
22prefunding mechanisms or formulas set forth, now or hereafter,
23in State law or bond indentures, into debt service funds or
24accounts of the State related to such bonded obligations,
25consistent with the payment schedules associated with such
26obligations.

 

 

09800HB1154ham009- 146 -LRB098 08482 EFG 42440 a

1(Source: P.A. 83-1440.)
 
2    (40 ILCS 5/15-157)  (from Ch. 108 1/2, par. 15-157)
3    Sec. 15-157. Employee Contributions.
4    (a) Each participating employee shall make contributions
5towards the retirement benefits payable under the retirement
6program applicable to the employee from each payment of
7earnings applicable to employment under this system on and
8after the date of becoming a participant as follows: Prior to
9September 1, 1949, 3 1/2% of earnings; from September 1, 1949
10to August 31, 1955, 5%; from September 1, 1955 to August 31,
111969, 6%; from September 1, 1969, 6 1/2%. These contributions
12are to be considered as normal contributions for purposes of
13this Article.
14    Each participant who is a police officer or firefighter
15shall make normal contributions of 8% of each payment of
16earnings applicable to employment as a police officer or
17firefighter under this system on or after September 1, 1981,
18unless he or she files with the board within 60 days after the
19effective date of this amendatory Act of 1991 or 60 days after
20the board receives notice that he or she is employed as a
21police officer or firefighter, whichever is later, a written
22notice waiving the retirement formula provided by Rule 4 of
23Section 15-136. This waiver shall be irrevocable. If a
24participant had met the conditions set forth in Section
2515-132.1 prior to the effective date of this amendatory Act of

 

 

09800HB1154ham009- 147 -LRB098 08482 EFG 42440 a

11991 but failed to make the additional normal contributions
2required by this paragraph, he or she may elect to pay the
3additional contributions plus compound interest at the
4effective rate. If such payment is received by the board, the
5service shall be considered as police officer service in
6calculating the retirement annuity under Rule 4 of Section
715-136. While performing service described in clause (i) or
8(ii) of Rule 4 of Section 15-136, a participating employee
9shall be deemed to be employed as a firefighter for the purpose
10of determining the rate of employee contributions under this
11Section.
12    (b) Starting September 1, 1969, each participating
13employee shall make additional contributions of 1/2 of 1% of
14earnings to finance a portion of the cost of the annual
15increases in retirement annuity provided under Section 15-136,
16except that with respect to participants in the self-managed
17plan this additional contribution shall be used to finance the
18benefits obtained under that retirement program.
19    (c) In addition to the amounts described in subsections (a)
20and (b) of this Section, each participating employee shall make
21contributions of 1% of earnings applicable under this system on
22and after August 1, 1959. The contributions made under this
23subsection (c) shall be considered as survivor's insurance
24contributions for purposes of this Article if the employee is
25covered under the traditional benefit package, and such
26contributions shall be considered as additional contributions

 

 

09800HB1154ham009- 148 -LRB098 08482 EFG 42440 a

1for purposes of this Article if the employee is participating
2in the self-managed plan or has elected to participate in the
3portable benefit package and has completed the applicable
4one-year waiting period. Contributions in excess of $80 during
5any fiscal year beginning before August 31, 1969 and in excess
6of $120 during any fiscal year thereafter until September 1,
71971 shall be considered as additional contributions for
8purposes of this Article.
9    (c-5) In addition to the contributions otherwise required
10under this Article, each Tier I participant shall also make the
11following contributions toward the retirement benefits payable
12under the retirement program applicable to the employee from
13each payment of earnings applicable to employment under this
14system:
15        (1) beginning July 1, 2013 and through June 30, 2014,
16    1% of earnings; and
17        (2) beginning on July 1, 2014, 2% of earnings.
18    Except as otherwise specified, these contributions are to
19be considered as normal contributions for purposes of this
20Article.
21    (d) If the board by board rule so permits and subject to
22such conditions and limitations as may be specified in its
23rules, a participant may make other additional contributions of
24such percentage of earnings or amounts as the participant shall
25elect in a written notice thereof received by the board.
26    (e) That fraction of a participant's total accumulated

 

 

09800HB1154ham009- 149 -LRB098 08482 EFG 42440 a

1normal contributions, the numerator of which is equal to the
2number of years of service in excess of that which is required
3to qualify for the maximum retirement annuity, and the
4denominator of which is equal to the total service of the
5participant, shall be considered as accumulated additional
6contributions. The determination of the applicable maximum
7annuity and the adjustment in contributions required by this
8provision shall be made as of the date of the participant's
9retirement.
10    (f) Notwithstanding the foregoing, a participating
11employee shall not be required to make contributions under this
12Section after the date upon which continuance of such
13contributions would otherwise cause his or her retirement
14annuity to exceed the maximum retirement annuity as specified
15in clause (1) of subsection (c) of Section 15-136.
16    (g) A participating employee may make contributions for the
17purchase of service credit under this Article.
18(Source: P.A. 90-32, eff. 6-27-97; 90-65, eff. 7-7-97; 90-448,
19eff. 8-16-97; 90-511, eff. 8-22-97; 90-576, eff. 3-31-98;
2090-655, eff. 7-30-98; 90-766, eff. 8-14-98.)
 
21    (40 ILCS 5/15-158.5 new)
22    Sec. 15-158.5. Tier 3 retirement plan.
23    (a) Contents of Tier 3 retirement plan. The Tier 3
24retirement plan consists of a defined-benefit component and a
25defined-contribution component; both components apply to all

 

 

09800HB1154ham009- 150 -LRB098 08482 EFG 42440 a

1participants in the Tier 3 retirement plan. The plan also
2includes provisions relating to contributions and refunds.
3    The defined-benefit component includes a retirement
4annuity as provided under this Section, a surviving spouse
5annuity as provided under this Section, and a disability
6benefit as provided in this Section.
7    The defined-contribution component shall be a defined
8contribution plan that shall be established by the System. Each
9participant shall have an individual account whose assets are
10managed by the System, which shall design a target-date or
11life-cycle investment allocation mechanism for this plan. This
12mechanism shall invest all assets in participants' defined
13contribution accounts in vehicles already in use by the
14System's defined-benefit Fund, but the specific allocation
15will vary with the participant's age, with more aggressive
16investments for younger participants and more conservative
17investments for older participants.
18    The balance in a participant's defined-contribution
19account shall be a function exclusively of employee
20contributions as described in subsection (g), employer
21contributions as described in subsection (h), and actual
22investment returns net of fees and administrative costs as
23certified by the System.
24    Subsequent to retirement, a participant may access the
25assets in his or her defined-contribution account by taking
26lump-sum disbursements, rolling over the balance into another

 

 

09800HB1154ham009- 151 -LRB098 08482 EFG 42440 a

1qualified plan, or purchasing an annuity or other insurance
2product to the extent allowable under federal law. Under no
3circumstances shall the State or employer be exposed to any
4investment or actuarial risk in the determination of benefit
5levels.
6    The defined-contribution component of the Tier 3
7retirement plan does not include any of the following with
8respect to service performed while participating in the Tier 3
9retirement plan: retirement annuities, death benefits,
10survivors insurance, or disability benefits payable directly
11from the System as provided in Sections 15-135 through 15-153.3
12(except Section 15-139) or Section 1-160; refunds determined
13under Section 15-154; or participation in the self-managed plan
14under Section 15-158.2, except as provided in subsection (c) of
15this Section.
16    Participation in the Tier 3 retirement plan under this
17Section constitutes membership in the State Universities
18Retirement System. Participants in the Tier 3 retirement plan
19remain subject to the provisions of this Article that apply to
20participants generally and that do not depend upon the benefit
21package or plan. A participant in the Tier 3 retirement plan is
22entitled to the applicable benefits of Article 20 of this Code.
23    The Tier 3 retirement plan is subject to the provisions of
24Article 1 of this Code that apply to retirement systems
25generally and must be qualified under the Internal Revenue Code
26of 1986.

 

 

09800HB1154ham009- 152 -LRB098 08482 EFG 42440 a

1    (b) Definitions. As used in this Section:
2    "Consumer Price Index-U" means the Consumer Price Index
3published by the Bureau of Labor Statistics of the United
4States Department of Labor that measures the average change in
5prices of goods and services purchased by all urban consumers,
6United States city average, all items, 1982-84 = 100.
7    "Final rate of earnings" means:
8        (1) for an employee who is paid on an hourly basis or
9    who receives an annual salary in installments during 12
10    months of each academic year, the average annual earnings
11    obtained by dividing by 8 the total earnings of the
12    employee during the 96 consecutive months in which the
13    total earnings were the highest within the last 120 months
14    prior to termination;
15        (2) for any other employee, the average annual earnings
16    during the 8 consecutive academic years within the 10 years
17    prior to termination in which the employee's earnings were
18    the highest; and
19        (3) for an employee with less than 96 consecutive
20    months or 8 consecutive academic years of service,
21    whichever is necessary, the average earnings during his or
22    her entire period of service.
23    (c) Participation. An employee who first becomes a
24participant of the System on or after January 1, 2014 shall
25participate in the Tier 3 retirement plan in lieu of
26participation in the traditional benefit package or the

 

 

09800HB1154ham009- 153 -LRB098 08482 EFG 42440 a

1portable benefit package. However, an employee who first
2becomes a participant of the System on or after January 1, 2014
3shall have the option to elect to participate in the
4self-managed plan established under Section 15-158.2 in lieu of
5participating in the Tier 3 retirement plan.
6    An employee who first became a participant of this System
7on or after January 1, 2011 and before January 1, 2014 may
8choose to transfer his or her pension credits into the Tier 3
9retirement plan by making, on or before June 1, 2014, an
10irrevocable election to transfer his or her pension credits
11into the Tier 3 retirement plan. An employee so electing will
12be credited with employee contributions and employer normal
13cost contributions plus interest at the actual rate of return.
14The System shall calculate the total cost of transferring an
15equal amount of service credit into the Tier 3 defined benefit
16plan and use the credited contributions to cover the cost of
17the transfer. Any unused contributions shall be deposited into
18the employee's defined contribution account.
19    (d) Retirement annuity.
20        (1) A participant in the Tier 3 retirement plan is
21    entitled to a retirement annuity under this Section upon
22    written application if he or she has attained age 67, has
23    at least 5 years of service credit, and has terminated
24    employment under this Article.
25        A participant in the Tier 3 retirement plan is entitled
26    to a reduced retirement annuity upon written application if

 

 

09800HB1154ham009- 154 -LRB098 08482 EFG 42440 a

1    he or she has attained age 62 but is below age 67 at the
2    time of retirement, has at least 10 years of service
3    credit, and has terminated employment under this Article.
4        (2) The retirement annuity shall be 1.1% of the final
5    rate of earnings for each year of creditable service. If
6    the participant has not attained age 67 at the time of
7    retirement, the retirement annuity shall be reduced by
8    one-half of 1% for each full month by which the age at
9    retirement is less than age 67.
10        (3) An eligible person may elect to have his or her
11    retirement annuity under this Section determined in
12    accordance with Article 20 of this Code.
13        (4) A retirement annuity under this Section is subject
14    to the provisions of Section 15-139.
15        (5) A retirement annuity under this Section shall be
16    subject to annual increases on each January 1 occurring on
17    or after the attainment of age 67 or the first anniversary
18    of the annuity start date, whichever is later. Each annual
19    increase shall be a percentage of the originally granted
20    retirement annuity equal to 3% or one-half of the annual
21    unadjusted percentage increase in the Consumer Price
22    Index-U for the 12 months ending with the preceding
23    September, whichever is less. If that annual unadjusted
24    percentage change is zero or there is a decrease, then the
25    annuity shall not be increased.
26    (e) Survivor's annuity.

 

 

09800HB1154ham009- 155 -LRB098 08482 EFG 42440 a

1        (1) Eligibility for and the duration of a survivor's
2    annuity under this Section shall be determined in the same
3    manner as eligibility for survivor's insurance benefits
4    under Section 15-145.
5        (2) The initial survivor's annuity of an eligible
6    survivor of a retired participant in the Tier 3 retirement
7    plan shall be in the amount of 66 2/3% of the retired
8    participant's retirement annuity at the date of death.
9        The initial survivor's annuity of an eligible survivor
10    of a participant in the Tier 3 retirement plan who was not
11    retired shall be 66 2/3% of the retirement annuity that
12    would have been payable under this Section if the deceased
13    participant had retired on the date of death, disregarding
14    the minimum age required for retirement.
15        (3) A survivor's annuity shall be increased on each
16    January 1 occurring on or after the first anniversary of
17    the commencement of the annuity. Each annual increase shall
18    be a percentage of the originally granted survivor's
19    annuity equal to 3% or one-half of the annual unadjusted
20    percentage increase in the Consumer Price Index-U for the
21    12 months ending with the preceding September, whichever is
22    less. If that annual unadjusted percentage change is zero
23    or there is a decrease, then the annuity shall not be
24    increased.
25    (f) Disability benefit.
26        (1) A participant in the Tier 3 retirement plan is

 

 

09800HB1154ham009- 156 -LRB098 08482 EFG 42440 a

1    eligible for the disability benefit provided under this
2    subsection subject to the conditions of eligibility
3    specified in Section 15-150.
4        (2) The disability benefit provided under this
5    subsection shall begin to accrue as specified in Section
6    15-151.
7        (3) The disability benefit provided under this
8    subsection shall be discontinued in accordance with
9    Section 15-152.
10        (4) The disability benefit provided under this
11    subsection shall be an amount determined as specified in
12    Section 15-153.
13        (5) The disability benefit provided under this
14    subsection shall be reduced in accordance with Section
15    15-153.1.
16        (6) The provisions of Section 15-153.2 apply to any
17    participant whose disability benefit under this subsection
18    is discontinued by the operation of clause (6) of Section
19    15-152 and who is not a participant in the self-managed
20    plan.
21        (7) The disability benefit provided under this Section
22    shall be increased on each January 1 occurring on or after
23    the first anniversary of the commencement of that benefit.
24    Each annual increase shall be a percentage of the
25    disability benefit then payable, including any previous
26    increases, equal to 3% or one-half of the annual unadjusted

 

 

09800HB1154ham009- 157 -LRB098 08482 EFG 42440 a

1    percentage increase in the Consumer Price Index-U for the
2    12 months ending with the preceding September, whichever is
3    less. If that annual unadjusted percentage change is zero
4    or there is a decrease, then the disability benefit shall
5    not be increased.
6    An amount of employer contributions shall be used for the
7purpose of providing the disability benefit under this
8subsection to the participant. Prior to the beginning of each
9plan year under the Tier 3 retirement plan, the Board of
10Trustees shall determine, as a percentage of earnings, the
11amount of employer contributions to be allocated during that
12plan year for providing a disability benefit for employees in
13the Tier 3 retirement plan.
14    (g) Employee contributions. In lieu of the employee
15contributions required under Section 15-157, each employee who
16is a participant in the Tier 3 retirement plan shall contribute
17to the System an amount equal to 4% of each payment of earnings
18to fund the defined-benefit component of the Tier 3 retirement
19plan and an amount equal to 5% of each payment of earnings to
20fund the defined-contribution component of the Tier 3
21retirement plan. These contributions shall be deducted from the
22employee's earnings and may be picked up by the employer for
23federal tax purposes under Section 15-157.1. These
24contributions are a condition of employment.
25    A Tier 3 employee may make additional contributions to the
26defined-contribution component of the Tier 3 retirement plan in

 

 

09800HB1154ham009- 158 -LRB098 08482 EFG 42440 a

1accordance with the procedures prescribed by the System, to the
2extent permitted under the rules of the plan.
3    (h) Actual employer contributions.
4        (1) To fund the Tier 3 retirement plan, the actual
5    employer of an employee who participates in the Tier 3
6    retirement plan shall annually contribute to the System an
7    amount determined by the System equal to the sum of: (i)
8    the annual employer's normal cost of the defined-benefit
9    component of the Tier 3 retirement plan for employees of
10    that employer, (ii) any unfunded accrued liability arising
11    from the Tier 3 retirement plan assigned to the employer
12    that year in accordance with subsection (h-5), and (iii)
13    any optional matching contribution to be made for that year
14    to the defined-contribution accounts of the local
15    employers' employees by the local employer pursuant to a
16    collective bargaining agreement or other employment
17    contract, provided that the optional matching contribution
18    shall not be less than 3% or greater than 10% of the
19    applicable employee salary.
20        (2) Each year, the retirement system shall obtain an
21    actuarial estimate of the annual normal cost of the
22    defined-benefit component of the Tier 3 retirement plan.
23        (3) The contributions required under this subsection
24    (h) are in addition to the contributions required under
25    Section 15-155 and any other contributions required under
26    this Article.

 

 

09800HB1154ham009- 159 -LRB098 08482 EFG 42440 a

1        (4) In no event shall a participant have an option of
2    receiving any portion of the local employer contributions
3    to the defined-benefit plan in cash.
4    (h-5) For use in determining the employer's contribution
5for unfunded accrued liability under item (ii) of paragraph (1)
6of subsection (h), the System shall maintain a separate account
7for each employer. The separate account shall be maintained in
8such form and detail as the System determines to be
9appropriate. The separate account shall reflect the following
10items to the extent that they are attributable to that employer
11and arise on or after the effective date of this amendatory Act
12of the 98th General Assembly: employer contributions, employee
13contributions, investment returns, payments of benefits, and
14that employer's proportionate share of the System's
15administrative expenses.
16    In the event that the Board determines that there is a
17deficiency or surplus in the account of an employer, the Board
18shall determine the employer's contribution rate as required by
19item (ii) of paragraph (1) of subsection (h) so as to address
20that deficiency or surplus over a reasonable period of time as
21determined by the Board, which shall be no more than 10 years.
22    (i) Refunds. Refunds of employee contributions to the
23defined-benefit component of the Tier 3 retirement plan and
24vested employer contributions to the defined-benefit component
25of the Tier 3 retirement plan shall be calculated in accordance
26with Section 15-154.
 

 

 

09800HB1154ham009- 160 -LRB098 08482 EFG 42440 a

1    (40 ILCS 5/15-165)   (from Ch. 108 1/2, par. 15-165)
2    Sec. 15-165. To certify amounts and submit vouchers.
3    (a) The Board shall certify to the Governor on or before
4November 15 of each year through until November 15, 2011 the
5appropriation required from State funds for the purposes of
6this System for the following fiscal year. The certification
7under this subsection (a) shall include a copy of the actuarial
8recommendations upon which it is based and shall specifically
9identify the System's projected State normal cost for that
10fiscal year and the projected State cost for the self-managed
11plan for that fiscal year.
12    On or before May 1, 2004, the Board shall recalculate and
13recertify to the Governor the amount of the required State
14contribution to the System for State fiscal year 2005, taking
15into account the amounts appropriated to and received by the
16System under subsection (d) of Section 7.2 of the General
17Obligation Bond Act.
18    On or before July 1, 2005, the Board shall recalculate and
19recertify to the Governor the amount of the required State
20contribution to the System for State fiscal year 2006, taking
21into account the changes in required State contributions made
22by this amendatory Act of the 94th General Assembly.
23    On or before April 1, 2011, the Board shall recalculate and
24recertify to the Governor the amount of the required State
25contribution to the System for State fiscal year 2011, applying

 

 

09800HB1154ham009- 161 -LRB098 08482 EFG 42440 a

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

 

 

09800HB1154ham009- 162 -LRB098 08482 EFG 42440 a

1Actuary's recommended changes, and the fiscal impact of not
2following the State Actuary's recommended changes on the
3required State contribution.
4    (b) The Board shall certify to the State Comptroller or
5employer, as the case may be, from time to time, by its
6president and secretary, with its seal attached, the amounts
7payable to the System from the various funds.
8    (c) Beginning in State fiscal year 1996, on or as soon as
9possible after the 15th day of each month the Board shall
10submit vouchers for payment of State contributions to the
11System, in a total monthly amount of one-twelfth of the
12required annual State contribution certified under subsection
13(a). From the effective date of this amendatory Act of the 93rd
14General Assembly through June 30, 2004, the Board shall not
15submit vouchers for the remainder of fiscal year 2004 in excess
16of the fiscal year 2004 certified contribution amount
17determined under this Section after taking into consideration
18the transfer to the System under subsection (b) of Section
196z-61 of the State Finance Act. These vouchers shall be paid by
20the State Comptroller and Treasurer by warrants drawn on the
21funds appropriated to the System for that fiscal year.
22    If in any month the amount remaining unexpended from all
23other appropriations to the System for the applicable fiscal
24year (including the appropriations to the System under Section
258.12 of the State Finance Act and Section 1 of the State
26Pension Funds Continuing Appropriation Act) is less than the

 

 

09800HB1154ham009- 163 -LRB098 08482 EFG 42440 a

1amount lawfully vouchered under this Section, the difference
2shall be paid from the General Revenue Fund under the
3continuing appropriation authority provided in Section 1.1 of
4the State Pension Funds Continuing Appropriation Act.
5    (d) So long as the payments received are the full amount
6lawfully vouchered under this Section, payments received by the
7System under this Section shall be applied first toward the
8employer contribution to the self-managed plan established
9under Section 15-158.2. Payments shall be applied second toward
10the employer's portion of the normal costs of the System, as
11defined in subsection (f) of Section 15-155. The balance shall
12be applied toward the unfunded actuarial liabilities of the
13System.
14    (e) In the event that the System does not receive, as a
15result of legislative enactment or otherwise, payments
16sufficient to fully fund the employer contribution to the
17self-managed plan established under Section 15-158.2 and to
18fully fund that portion of the employer's portion of the normal
19costs of the System, as calculated in accordance with Section
2015-155(a-1), then any payments received shall be applied
21proportionately to the optional retirement program established
22under Section 15-158.2 and to the employer's portion of the
23normal costs of the System, as calculated in accordance with
24Section 15-155(a-1).
25(Source: P.A. 96-1497, eff. 1-14-11; 96-1511, eff. 1-27-11;
2697-694, eff. 6-18-12.)
 

 

 

09800HB1154ham009- 164 -LRB098 08482 EFG 42440 a

1    (40 ILCS 5/15-198)
2    Sec. 15-198. Application and expiration of new benefit
3increases.
4    (a) As used in this Section, "new benefit increase" means
5an increase in the amount of any benefit provided under this
6Article, or an expansion of the conditions of eligibility for
7any benefit under this Article or Article 1, that results from
8an amendment to this Code that takes effect after the effective
9date of this amendatory Act of the 94th General Assembly. "New
10benefit increase", however, does not include any benefit
11increase resulting from the changes made to this Article or
12Article 1 by this amendatory Act of the 98th General Assembly.
13    (b) Notwithstanding any other provision of this Code or any
14subsequent amendment to this Code, every new benefit increase
15is subject to this Section and shall be deemed to be granted
16only in conformance with and contingent upon compliance with
17the provisions of this Section.
18    (c) The Public Act enacting a new benefit increase must
19identify and provide for payment to the System of additional
20funding at least sufficient to fund the resulting annual
21increase in cost to the System as it accrues.
22    Every new benefit increase is contingent upon the General
23Assembly providing the additional funding required under this
24subsection. The Commission on Government Forecasting and
25Accountability shall analyze whether adequate additional

 

 

09800HB1154ham009- 165 -LRB098 08482 EFG 42440 a

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

 

 

09800HB1154ham009- 166 -LRB098 08482 EFG 42440 a

1apply and qualify for the affected benefit while the new
2benefit increase was in effect.
3(Source: P.A. 94-4, eff. 6-1-05.)
 
4    (40 ILCS 5/16-106.4 new)
5    Sec. 16-106.4. Tier I member. "Tier I member": A member
6under this Article who first became a member or participant
7before January 1, 2011 under any reciprocal retirement system
8or pension fund established under this Code other than a
9retirement system or pension fund established under Article 2,
103, 4, 5, 6, or 18 of this Code.
 
11    (40 ILCS 5/16-106.5 new)
12    Sec. 16-106.5. Tier I retiree. "Tier I retiree": A former
13Tier I member who is receiving a retirement annuity.
 
14    (40 ILCS 5/16-106.6 new)
15    Sec. 16-106.6. Tier 3 employee. "Tier 3 employee": A
16teacher who first becomes a member on or after January 1, 2014
17and is subject to Section 16-152.8 of this Article; and a
18teacher who first became a member on or after January 1, 2011
19but before January 1, 2014 and has elected to transfer his or
20her pension credits to the Tier 3 retirement plan.
 
21    (40 ILCS 5/16-121)  (from Ch. 108 1/2, par. 16-121)
22    Sec. 16-121. Salary. "Salary": The actual compensation

 

 

09800HB1154ham009- 167 -LRB098 08482 EFG 42440 a

1received by a teacher during any school year and recognized by
2the system in accordance with rules of the board. For purposes
3of this Section, "school year" includes the regular school term
4plus any additional period for which a teacher is compensated
5and such compensation is recognized by the rules of the board.
6    Notwithstanding any other provision of this Code, the
7salary of a Tier I member or Tier 3 employee for the purposes
8of this Code shall not exceed, for periods of service on or
9after the effective date of this amendatory Act of the 98th
10General Assembly, the greater of (i) the annual contribution
11and benefit base established for the applicable year by the
12Commissioner of Social Security under the federal Social
13Security Act or (ii) the annual salary of the member during the
14365 days immediately preceding that effective date; except that
15this limitation does not apply to a member's salary that is
16determined under an employment contract or collective
17bargaining agreement that is in effect on the effective date of
18this amendatory Act of the 98th General Assembly and has not
19been amended or renewed after that date.
20(Source: P.A. 84-1028.)
 
21    (40 ILCS 5/16-132)  (from Ch. 108 1/2, par. 16-132)
22    Sec. 16-132. Retirement annuity eligibility.
23    (a) A member who has at least 20 years of creditable
24service is entitled to a retirement annuity upon or after
25attainment of age 55. A member who has at least 10 but less

 

 

09800HB1154ham009- 168 -LRB098 08482 EFG 42440 a

1than 20 years of creditable service is entitled to a retirement
2annuity upon or after attainment of age 60. A member who has at
3least 5 but less than 10 years of creditable service is
4entitled to a retirement annuity upon or after attainment of
5age 62. A member who (i) has earned during the period
6immediately preceding the last day of service at least one year
7of contributing creditable service as an employee of a
8department as defined in Section 14-103.04, (ii) has earned at
9least 5 years of contributing creditable service as an employee
10of a department as defined in Section 14-103.04, and (iii)
11retires on or after January 1, 2001 is entitled to a retirement
12annuity upon or after attainment of an age which, when added to
13the number of years of his or her total creditable service,
14equals at least 85. Portions of years shall be counted as
15decimal equivalents.
16    A member who is eligible to receive a retirement annuity of
17at least 74.6% of final average salary and will attain age 55
18on or before December 31 during the year which commences on
19July 1 shall be deemed to attain age 55 on the preceding June
201.
21    (b) Notwithstanding subsection (a) of this Section, for a
22Tier I member who begins receiving a retirement annuity under
23this Article after July 1, 2013:
24        (1) If the Tier I member is at least 45 years old on
25    the effective date of this amendatory Act of the 98th
26    General Assembly, then the references to age 55, 60, and 62

 

 

09800HB1154ham009- 169 -LRB098 08482 EFG 42440 a

1    in subsection (a) of this Section remain unchanged and the
2    reference to 85 in subsection (a) of this Section remains
3    unchanged.
4        (2) If the Tier I member is at least 40 but less than
5    45 years old on the effective date of this amendatory Act
6    of the 98th General Assembly, then the references to age
7    55, 60, and 62 in subsection (a) of this Section are
8    increased by one year and the reference to 85 in subsection
9    (a) is increased to 87.
10        (3) If the Tier I member is at least 35 but less than
11    40 years old on the effective date of this amendatory Act
12    of the 98th General Assembly, then the references to age
13    55, 60, and 62 in subsection (a) of this Section are
14    increased by 3 years and the reference to 85 in subsection
15    (a) is increased to 91.
16        (4) If the Tier I member is less than 35 years old on
17    the effective date of this amendatory Act of the 98th
18    General Assembly, then the references to age 55, 60, and 62
19    in subsection (a) of this Section are increased by 5 years
20    and the reference to 85 in subsection (a) is increased to
21    95.
22    Notwithstanding Section 1-103.1, this subsection (b)
23applies without regard to whether or not the Tier I member is
24in active service under this Article on or after the effective
25date of this amendatory Act of the 98th General Assembly.
26    (c) A member meeting the above eligibility conditions is

 

 

09800HB1154ham009- 170 -LRB098 08482 EFG 42440 a

1entitled to a retirement annuity upon written application to
2the board setting forth the date the member wishes the
3retirement annuity to commence. However, the effective date of
4the retirement annuity shall be no earlier than the day
5following the last day of creditable service, regardless of the
6date of official termination of employment.
7    (d) To be eligible for a retirement annuity, a member shall
8not be employed as a teacher in the schools included under this
9System or under Article 17, except (i) as provided in Section
1016-118 or 16-150.1, (ii) if the member is disabled (in which
11event, eligibility for salary must cease), or (iii) if the
12System is required by federal law to commence payment due to
13the member's age; the changes to this sentence made by Public
14Act 93-320 this amendatory Act of the 93rd General Assembly
15apply without regard to whether the member terminated
16employment before or after its effective date.
17(Source: P.A. 93-320, eff. 7-23-03.)
 
18    (40 ILCS 5/16-133)  (from Ch. 108 1/2, par. 16-133)
19    Sec. 16-133. Retirement annuity; amount.
20    (a) The amount of the retirement annuity shall be (i) in
21the case of a person who first became a teacher under this
22Article before July 1, 2005, the larger of the amounts
23determined under paragraphs (A) and (B) below, or (ii) in the
24case of a person who first becomes a teacher under this Article
25on or after July 1, 2005, the amount determined under the

 

 

09800HB1154ham009- 171 -LRB098 08482 EFG 42440 a

1applicable provisions of paragraph (B):
2        (A) An amount consisting of the sum of the following:
3            (1) An amount that can be provided on an
4        actuarially equivalent basis by the member's
5        accumulated contributions at the time of retirement;
6        and
7            (2) The sum of (i) the amount that can be provided
8        on an actuarially equivalent basis by the member's
9        accumulated contributions representing service prior
10        to July 1, 1947, and (ii) the amount that can be
11        provided on an actuarially equivalent basis by the
12        amount obtained by multiplying 1.4 times the member's
13        accumulated contributions covering service subsequent
14        to June 30, 1947; and
15            (3) If there is prior service, 2 times the amount
16        that would have been determined under subparagraph (2)
17        of paragraph (A) above on account of contributions
18        which would have been made during the period of prior
19        service creditable to the member had the System been in
20        operation and had the member made contributions at the
21        contribution rate in effect prior to July 1, 1947.
22        For the purpose of calculating the sum provided under
23    this paragraph (A), the contribution required under
24    subsection (a-5) of Section 16-152 shall not be considered
25    when determining the amount of the member's accumulated
26    contributions under subparagraph (1) or (2).

 

 

09800HB1154ham009- 172 -LRB098 08482 EFG 42440 a

1        This paragraph (A) does not apply to a person who first
2    becomes a teacher under this Article on or after July 1,
3    2005.
4        (B) An amount consisting of the greater of the
5    following:
6            (1) For creditable service earned before July 1,
7        1998 that has not been augmented under Section
8        16-129.1: 1.67% of final average salary for each of the
9        first 10 years of creditable service, 1.90% of final
10        average salary for each year in excess of 10 but not
11        exceeding 20, 2.10% of final average salary for each
12        year in excess of 20 but not exceeding 30, and 2.30% of
13        final average salary for each year in excess of 30; and
14            For creditable service earned on or after July 1,
15        1998 by a member who has at least 24 years of
16        creditable service on July 1, 1998 and who does not
17        elect to augment service under Section 16-129.1: 2.2%
18        of final average salary for each year of creditable
19        service earned on or after July 1, 1998 but before the
20        member reaches a total of 30 years of creditable
21        service and 2.3% of final average salary for each year
22        of creditable service earned on or after July 1, 1998
23        and after the member reaches a total of 30 years of
24        creditable service; and
25            For all other creditable service: 2.2% of final
26        average salary for each year of creditable service; or

 

 

09800HB1154ham009- 173 -LRB098 08482 EFG 42440 a

1            (2) 1.5% of final average salary for each year of
2        creditable service plus the sum $7.50 for each of the
3        first 20 years of creditable service.
4    The amount of the retirement annuity determined under this
5    paragraph (B) shall be reduced by 1/2 of 1% for each month
6    that the member is less than age 60 at the time the
7    retirement annuity begins. However, this reduction shall
8    not apply (i) if the member has at least 35 years of
9    creditable service, or (ii) if the member retires on
10    account of disability under Section 16-149.2 of this
11    Article with at least 20 years of creditable service, or
12    (iii) if the member (1) has earned during the period
13    immediately preceding the last day of service at least one
14    year of contributing creditable service as an employee of a
15    department as defined in Section 14-103.04, (2) has earned
16    at least 5 years of contributing creditable service as an
17    employee of a department as defined in Section 14-103.04,
18    (3) retires on or after January 1, 2001, and (4) retires
19    having attained an age which, when added to the number of
20    years of his or her total creditable service, equals at
21    least 85. Portions of years shall be counted as decimal
22    equivalents. For participants to whom subsection (b) of
23    Section 16-132 applies, the reference to age 60 in this
24    paragraph and the reference to 85 in this paragraph are
25    increased as provided in subsection (b) of Section 16-132.
26    (b) For purposes of this Section, final average salary

 

 

09800HB1154ham009- 174 -LRB098 08482 EFG 42440 a

1shall be the average salary for the highest 4 consecutive years
2within the last 10 years of creditable service as determined
3under rules of the board. The minimum final average salary
4shall be considered to be $2,400 per year.
5    In the determination of final average salary for members
6other than elected officials and their appointees when such
7appointees are allowed by statute, that part of a member's
8salary for any year beginning after June 30, 1979 which exceeds
9the member's annual full-time salary rate with the same
10employer for the preceding year by more than 20% shall be
11excluded. The exclusion shall not apply in any year in which
12the member's creditable earnings are less than 50% of the
13preceding year's mean salary for downstate teachers as
14determined by the survey of school district salaries provided
15in Section 2-3.103 of the School Code.
16    (c) In determining the amount of the retirement annuity
17under paragraph (B) of this Section, a fractional year shall be
18granted proportional credit.
19    (d) The retirement annuity determined under paragraph (B)
20of this Section shall be available only to members who render
21teaching service after July 1, 1947 for which member
22contributions are required, and to annuitants who re-enter
23under the provisions of Section 16-150.
24    (e) The maximum retirement annuity provided under
25paragraph (B) of this Section shall be 75% of final average
26salary.

 

 

09800HB1154ham009- 175 -LRB098 08482 EFG 42440 a

1    (f) A member retiring after the effective date of this
2amendatory Act of 1998 shall receive a pension equal to 75% of
3final average salary if the member is qualified to receive a
4retirement annuity equal to at least 74.6% of final average
5salary under this Article or as proportional annuities under
6Article 20 of this Code.
7(Source: P.A. 94-4, eff. 6-1-05.)
 
8    (40 ILCS 5/16-133.1)  (from Ch. 108 1/2, par. 16-133.1)
9    Sec. 16-133.1. Automatic annual increase in annuity.
10    (a) Each member with creditable service and retiring on or
11after August 26, 1969 is entitled to the automatic annual
12increases in annuity provided under this Section while
13receiving a retirement annuity or disability retirement
14annuity from the system.
15    An annuitant shall first be entitled to an initial increase
16under this Section on the January 1 next following the first
17anniversary of retirement, or January 1 of the year next
18following attainment of age 61, whichever is later. At such
19time, the system shall pay an initial increase determined as
20follows or as provided in subsections (a-1) and (a-2):
21        (1) 1.5% of the originally granted retirement annuity
22    or disability retirement annuity multiplied by the number
23    of years elapsed, if any, from the date of retirement until
24    January 1, 1972, plus
25        (2) 2% of the originally granted annuity multiplied by

 

 

09800HB1154ham009- 176 -LRB098 08482 EFG 42440 a

1    the number of years elapsed, if any, from the date of
2    retirement or January 1, 1972, whichever is later, until
3    January 1, 1978, plus
4        (3) 3% of the originally granted annuity multiplied by
5    the number of years elapsed from the date of retirement or
6    January 1, 1978, whichever is later, until the effective
7    date of the initial increase.
8However, the initial annual increase calculated under this
9Section for the recipient of a disability retirement annuity
10granted under Section 16-149.2 shall be reduced by an amount
11equal to the total of all increases in that annuity received
12under Section 16-149.5 (but not exceeding 100% of the amount of
13the initial increase otherwise provided under this Section).
14    Following the initial increase, automatic annual increases
15in annuity shall be payable on each January 1 thereafter during
16the lifetime of the annuitant, determined as a percentage of
17the originally granted retirement annuity or disability
18retirement annuity for increases granted prior to January 1,
191990, and calculated as a percentage of the total amount of
20annuity, including previous increases under this Section, for
21increases granted on or after January 1, 1990, as follows: 1.5%
22for periods prior to January 1, 1972, 2% for periods after
23December 31, 1971 and prior to January 1, 1978, and 3% for
24periods after December 31, 1977, or as provided in subsections
25(a-1) and (a-2).
26    (a-1) Notwithstanding any other provision of this Article,

 

 

09800HB1154ham009- 177 -LRB098 08482 EFG 42440 a

1for a Tier I retiree, the amount of each automatic annual
2increase in retirement annuity occurring on or after the
3effective date of this amendatory Act of the 98th General
4Assembly shall be the lesser of $750 or 3% of the total annuity
5payable at the time of the increase, including previous
6increases granted.
7    (a-2) Notwithstanding any other provision of this Article,
8for a Tier I retiree, the monthly retirement annuity shall
9first be subject to annual increases on the January 1 occurring
10on or next after the attainment of age 67 or the January 1
11occurring on or next after the fifth anniversary of the annuity
12start date, whichever occurs earlier. If on the effective date
13of this amendatory Act of the 98th General Assembly a Tier I
14retiree has already received an annual increase under this
15Section but does not yet meet the new eligibility requirements
16of this subsection, the annual increases already received shall
17continue in force, but no additional annual increase shall be
18granted until the Tier I retiree meets the new eligibility
19requirements.
20    (a-3) Notwithstanding Section 1-103.1, subsections (a-1)
21and (a-2) apply without regard to whether or not the Tier I
22retiree is in active service under this Article on or after the
23effective date of this amendatory Act of the 98th General
24Assembly.
25    (b) The automatic annual increases in annuity provided
26under this Section shall not be applicable unless a member has

 

 

09800HB1154ham009- 178 -LRB098 08482 EFG 42440 a

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

 

 

09800HB1154ham009- 179 -LRB098 08482 EFG 42440 a

1the annuity then being paid of one dollar per month for each
2year of creditable service.
3    On January 1, 1987, any annuitant whose retirement annuity
4began on or before January 1, 1977, shall receive an increase
5in the monthly retirement annuity equal to 8 per year of
6creditable service times the number of years that have elapsed
7since the annuity began.
8(Source: P.A. 91-927, eff. 12-14-00.)
 
9    (40 ILCS 5/16-152)  (from Ch. 108 1/2, par. 16-152)
10    Sec. 16-152. Contributions by members.
11    (a) Each member shall make contributions for membership
12service to this System as follows:
13        (1) Effective July 1, 1998, contributions of 7.50% of
14    salary towards the cost of the retirement annuity. Such
15    contributions shall be deemed "normal contributions".
16        (2) Effective July 1, 1969, contributions of 1/2 of 1%
17    of salary toward the cost of the automatic annual increase
18    in retirement annuity provided under Section 16-133.1.
19        (3) Effective July 24, 1959, contributions of 1% of
20    salary towards the cost of survivor benefits. Such
21    contributions shall not be credited to the individual
22    account of the member and shall not be subject to refund
23    except as provided under Section 16-143.2.
24        (4) Effective July 1, 2005, contributions of 0.40% of
25    salary toward the cost of the early retirement without

 

 

09800HB1154ham009- 180 -LRB098 08482 EFG 42440 a

1    discount option provided under Section 16-133.2. This
2    contribution shall cease upon termination of the early
3    retirement without discount option as provided in Section
4    16-176.
5    (a-5) In addition to the contributions otherwise required
6under this Article, each Tier I member shall also make the
7following contributions toward the cost of the retirement
8annuity from each payment of salary:
9        (1) beginning July 1, 2013 and through June 30, 2014,
10    1% of salary; and
11        (2) beginning on July 1, 2014, 2% of salary.
12    Except as otherwise specified, these contributions are to
13be considered as normal contributions for purposes of this
14Article.
15    (b) The minimum required contribution for any year of
16full-time teaching service shall be $192.
17    (c) Contributions shall not be required of any annuitant
18receiving a retirement annuity who is given employment as
19permitted under Section 16-118 or 16-150.1.
20    (d) A person who (i) was a member before July 1, 1998, (ii)
21retires with more than 34 years of creditable service, and
22(iii) does not elect to qualify for the augmented rate under
23Section 16-129.1 shall be entitled, at the time of retirement,
24to receive a partial refund of contributions made under this
25Section for service occurring after the later of June 30, 1998
26or attainment of 34 years of creditable service, in an amount

 

 

09800HB1154ham009- 181 -LRB098 08482 EFG 42440 a

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

 

 

09800HB1154ham009- 182 -LRB098 08482 EFG 42440 a

1    retirement without discount option provided under Section
2    16-133.2 is terminated under Section 16-176.
3(Source: P.A. 93-320, eff. 7-23-03; 94-4, eff. 6-1-05.)
 
4    (40 ILCS 5/16-152.8 new)
5    Sec. 16-152.8. Tier 3 retirement plan.
6    (a) Contents of Tier 3 retirement plan. The Tier 3
7retirement plan consists of a defined-benefit component and a
8defined-contribution component; both components apply to all
9participants in the Tier 3 retirement plan. The plan also
10includes provisions relating to contributions and refunds.
11    The defined-benefit component includes a retirement
12annuity as provided under this Section, a surviving spouse
13annuity as provided under this Section, and a disability
14benefit as provided in this Section.
15    The defined-contribution component shall be a defined
16contribution plan that shall be established by the System. Each
17participant shall have an individual account whose assets are
18managed by the System, which shall design a target-date or
19life-cycle investment allocation mechanism for this plan. This
20mechanism shall invest all assets in participants' defined
21contribution accounts in vehicles already in use by the
22System's defined-benefit Fund, but the specific allocation
23will vary with the participant's age, with more aggressive
24investments for younger participants and more conservative
25investments for older participants.

 

 

09800HB1154ham009- 183 -LRB098 08482 EFG 42440 a

1    The balance in a participant's defined-contribution
2account shall be a function exclusively of employee
3contributions as described in subsection (g), employer
4contributions as described in subsection (h), and actual
5investment returns net of fees and administrative costs as
6certified by the System.
7    Subsequent to retirement, a participant may access the
8assets in his or her defined-contribution account by taking
9lump-sum disbursements, rolling over the balance into another
10qualified plan, or purchasing an annuity or other insurance
11product to the extent allowable under federal law. Under no
12circumstances shall the State or employer be exposed to any
13investment or actuarial risk in the determination of benefit
14levels.
15    The defined-contribution component of the Tier 3
16retirement plan does not include any of the following with
17respect to service performed while participating in the Tier 3
18retirement plan: retirement annuities, reversionary annuities,
19death benefits, survivors' benefits, or disability benefits
20payable directly from the System as provided in Sections 16-132
21through 16-149.6 (except Section 16-149.2) or Section 1-160; or
22refunds determined under Section 16-151.
23    Participation in the Tier 3 retirement plan under this
24Section constitutes membership in the Teachers' Retirement
25System of the State of Illinois. Participants in the Tier 3
26retirement plan remain subject to the provisions of this

 

 

09800HB1154ham009- 184 -LRB098 08482 EFG 42440 a

1Article that apply to participants generally and that do not
2depend upon the benefit package or plan. A participant in the
3Tier 3 retirement plan is entitled to the applicable benefits
4of Article 20 of this Code.
5    The Tier 3 retirement plan is subject to the provisions of
6Article 1 of this Code that apply to retirement systems
7generally and must be qualified under the Internal Revenue Code
8of 1986.
9    (b) Definitions. As used in this Section:
10    "Consumer Price Index-U" means the Consumer Price Index
11published by the Bureau of Labor Statistics of the United
12States Department of Labor that measures the average change in
13prices of goods and services purchased by all urban consumers,
14United States city average, all items, 1982-84 = 100.
15    "Final average salary" means:
16        (1) for a teacher who is paid on an hourly basis or who
17    receives an annual salary in installments during 12 months
18    of each school year, the average annual salary obtained by
19    dividing by 8 the total salary of the teacher during the 96
20    consecutive months in which the total salary was the
21    highest within the last 120 months prior to termination;
22        (2) for any other teacher, the average annual salary
23    during the 8 consecutive school years within the 10 years
24    prior to termination in which the teacher's salary was the
25    highest; and
26        (3) for a teacher with less than 96 consecutive months

 

 

09800HB1154ham009- 185 -LRB098 08482 EFG 42440 a

1    or 8 consecutive school years of service, whichever is
2    necessary, the average salary during his or her entire
3    period of service.
4    (c) Participation. A teacher who first becomes a member of
5the System on or after January 1, 2014 shall, with respect to
6service under this Article, participate in the Tier 3
7retirement plan only and not, except as specified in this
8Section, any other benefit package provided under this Article
9or Section 1-160.
10    A teacher who first became a member of this System on or
11after January 1, 2011 and before January 1, 2014 may choose to
12transfer his or her pension credits into the Tier 3 retirement
13plan by making, on or before June 1, 2014, an irrevocable
14election to transfer his or her pension credits into the Tier 3
15retirement plan. A teacher so electing will be credited with
16employee contributions and employer normal cost contributions
17plus interest at the actual rate of return. The System shall
18calculate the total cost of transferring an equal amount of
19service credit into the Tier 3 defined benefit plan and use the
20credited contributions to cover the cost of the transfer. Any
21unused contributions shall be deposited into the member's
22defined contribution account.
23    (d) Retirement annuity.
24        (1) A participant in the Tier 3 retirement plan is
25    entitled to a retirement annuity under this Section upon
26    written application if he or she has attained age 67, has

 

 

09800HB1154ham009- 186 -LRB098 08482 EFG 42440 a

1    at least 5 years of service credit, and has terminated
2    employment under this Article.
3        A participant in the Tier 3 retirement plan is entitled
4    to a reduced retirement annuity upon written application if
5    he or she has attained age 62 but is below age 67 at the
6    time of retirement, has at least 10 years of service
7    credit, and has terminated employment under this Article.
8        (2) The retirement annuity shall be 1.1% of the final
9    average salary for each year of creditable service. If the
10    participant has not attained age 67 at the time of
11    retirement, the retirement annuity shall be reduced by
12    one-half of 1% for each full month by which the age at
13    retirement is less than age 67.
14        (3) An eligible person may elect to have his or her
15    retirement annuity under this Section determined in
16    accordance with Article 20 of this Code.
17        (4) A retirement annuity under this Section shall be
18    subject to annual increases on each January 1 occurring on
19    or after the attainment of age 67 or the first anniversary
20    of the annuity start date, whichever is later. Each annual
21    increase shall be a percentage of the originally granted
22    retirement annuity equal to 3% or one-half of the annual
23    unadjusted percentage increase in the Consumer Price
24    Index-U for the 12 months ending with the preceding
25    September, whichever is less. If that annual unadjusted
26    percentage change is zero or there is a decrease, then the

 

 

09800HB1154ham009- 187 -LRB098 08482 EFG 42440 a

1    annuity shall not be increased.
2    (e) Survivor's annuity.
3        (1) Eligibility for and the duration of a survivor's
4    annuity under this Section shall be determined in the same
5    manner as eligibility for survivors' benefits under this
6    Article.
7        (2) The initial survivor's annuity of an eligible
8    survivor of a retired participant in the Tier 3 retirement
9    plan shall be in the amount of 66 2/3% of the retired
10    participant's retirement annuity at the date of death.
11        The initial survivor's annuity of an eligible survivor
12    of a participant in the Tier 3 retirement plan who was not
13    retired shall be 66 2/3% of the retirement annuity that
14    would have been payable under this Section if the deceased
15    participant had retired on the date of death, disregarding
16    the minimum age required for retirement.
17        (3) A survivor's annuity shall be increased on each
18    January 1 occurring on or after the first anniversary of
19    the commencement of the annuity. Each annual increase shall
20    be a percentage of the originally granted survivor's
21    annuity equal to 3% or one-half of the annual unadjusted
22    percentage increase in the Consumer Price Index-U for the
23    12 months ending with the preceding September, whichever is
24    less. If that annual unadjusted percentage change is zero
25    or there is a decrease, then the annuity shall not be
26    increased.

 

 

09800HB1154ham009- 188 -LRB098 08482 EFG 42440 a

1    (f) Disability benefit.
2        (1) A participant in the Tier 3 retirement plan is
3    eligible for the disability benefit provided under this
4    subsection subject to the conditions of eligibility
5    specified in Section 16-149.
6        (2) The disability benefit provided under this
7    subsection shall begin to accrue as specified in Section
8    16-149.
9        (3) The disability benefit provided under this
10    subsection shall be discontinued in accordance with
11    Section 16-149.
12        (4) The disability benefit provided under this
13    subsection shall be an amount determined as specified in
14    Section 16-149.
15        (5) The provisions of Section 16-149.2 apply to any
16    participant whose disability benefit under this subsection
17    is discontinued by the operation of Section 16-149 and who
18    is not a participant in the self-managed plan.
19        (6) The disability benefit provided under this Section
20    shall be increased on each January 1 occurring on or after
21    the first anniversary of the commencement of that benefit.
22    Each annual increase shall be a percentage of the
23    disability benefit then payable, including any previous
24    increases, equal to 3% or one-half of the annual unadjusted
25    percentage increase in the Consumer Price Index-U for the
26    12 months ending with the preceding September, whichever is

 

 

09800HB1154ham009- 189 -LRB098 08482 EFG 42440 a

1    less. If that annual unadjusted percentage change is zero
2    or there is a decrease, then the disability benefit shall
3    not be increased.
4    An amount of employer contributions shall be used for the
5purpose of providing the disability benefit under this
6subsection to the participant. Prior to the beginning of each
7plan year under the Tier 3 retirement plan, the Board of
8Trustees shall determine, as a percentage of salary, the amount
9of employer contributions to be allocated during that plan year
10for providing a disability benefit for teachers in the Tier 3
11retirement plan.
12    (g) Teacher contributions. In lieu of the member
13contributions required under Section 16-152, each teacher who
14is a participant in the Tier 3 retirement plan shall contribute
15to the System an amount equal to 4% of each payment of salary
16to fund the defined-benefit component of the Tier 3 retirement
17plan and an amount equal to 5% of each payment of salary to
18fund the defined-contribution component of the Tier 3
19retirement plan. These contributions shall be deducted from the
20teacher's salary and may be picked up by the employer for
21federal tax purposes under Section 16-152.1. These
22contributions are a condition of employment.
23    A Tier 3 employee may make additional contributions to the
24defined-contribution component of the Tier 3 retirement plan in
25accordance with the procedures prescribed by the System, to the
26extent permitted under the rules of the plan.

 

 

09800HB1154ham009- 190 -LRB098 08482 EFG 42440 a

1    (h) Actual employer contributions.
2        (1) To fund the Tier 3 retirement plan, the actual
3    employer of a teacher who participates in the Tier 3
4    retirement plan shall annually contribute to the System an
5    amount determined by the System equal to the sum of: (i)
6    the annual employer's normal cost of the defined-benefit
7    component of the Tier 3 retirement plan for teachers of
8    that employer, (ii) any unfunded accrued liability arising
9    from the Tier 3 retirement plan assigned to the employer
10    that year in accordance with subsection (h-5), and (iii)
11    any optional matching contribution to be made for that year
12    to the defined-contribution accounts of the local
13    employers' teachers by the local employer pursuant to a
14    collective bargaining agreement or other employment
15    contract, provided that the optional matching contribution
16    shall not be less than 3% or greater than 10% of the
17    applicable teacher salary.
18        (2) Each year, the retirement system shall obtain an
19    actuarial estimate of the annual normal cost of the
20    defined-benefit component of the Tier 3 retirement plan.
21        (3) The contributions required under this subsection
22    (h) are in addition to the contributions required under
23    Section 16-158 and any other contributions required under
24    this Article.
25        (4) In no event shall a participant have an option of
26    receiving any portion of the local employer contributions

 

 

09800HB1154ham009- 191 -LRB098 08482 EFG 42440 a

1    to the defined-benefit plan in cash.
2    (h-5) For use in determining the employer's contribution
3for unfunded accrued liability under item (ii) of paragraph (1)
4of subsection (h), the System shall maintain a separate account
5for each employer. The separate account shall be maintained in
6such form and detail as the System determines to be
7appropriate. The separate account shall reflect the following
8items to the extent that they are attributable to that employer
9and arise on or after the effective date of this amendatory Act
10of the 98th General Assembly: employer contributions, employee
11contributions, investment returns, payments of benefits, and
12that employer's proportionate share of the System's
13administrative expenses.
14    In the event that the Board determines that there is a
15deficiency or surplus in the account of an employer, the Board
16shall determine the employer's contribution rate as required by
17item (ii) of paragraph (1) of subsection (h) so as to address
18that deficiency or surplus over a reasonable period of time as
19determined by the Board, which shall be no more than 10 years.
20    (i) Refunds. Refunds of teacher contributions to the
21defined-benefit component of the Tier 3 retirement plan and
22vested employer contributions to the defined-benefit component
23of the Tier 3 retirement plan shall be calculated in accordance
24with Section 16-138.
 
25    (40 ILCS 5/16-158)   (from Ch. 108 1/2, par. 16-158)

 

 

09800HB1154ham009- 192 -LRB098 08482 EFG 42440 a

1    Sec. 16-158. Contributions by State and other employing
2units.
3    (a) The State shall make contributions to the System by
4means of appropriations from the Common School Fund and other
5State funds of amounts which, together with other employer
6contributions, employee contributions, investment income, and
7other income, will be sufficient to meet the cost of
8maintaining and administering the System on a 100% 90% funded
9basis in accordance with actuarial recommendations by the end
10of State fiscal year 2043.
11    The Board shall determine the amount of State contributions
12required for each fiscal year on the basis of the actuarial
13tables and other assumptions adopted by the Board and the
14recommendations of the actuary, using the formula in subsection
15(b-3).
16    (a-1) Annually, on or before November 15 through until
17November 15, 2011, the Board shall certify to the Governor the
18amount of the required State contribution for the coming fiscal
19year. The certification under this subsection (a-1) shall
20include a copy of the actuarial recommendations upon which it
21is based and shall specifically identify the System's projected
22State normal cost for that fiscal year.
23    On or before May 1, 2004, the Board shall recalculate and
24recertify to the Governor the amount of the required State
25contribution to the System for State fiscal year 2005, taking
26into account the amounts appropriated to and received by the

 

 

09800HB1154ham009- 193 -LRB098 08482 EFG 42440 a

1System under subsection (d) of Section 7.2 of the General
2Obligation Bond Act.
3    On or before July 1, 2005, the Board shall recalculate and
4recertify to the Governor the amount of the required State
5contribution to the System for State fiscal year 2006, taking
6into account the changes in required State contributions made
7by this amendatory Act of the 94th General Assembly.
8    On or before April 1, 2011, the Board shall recalculate and
9recertify to the Governor the amount of the required State
10contribution to the System for State fiscal year 2011, applying
11the changes made by Public Act 96-889 to the System's assets
12and liabilities as of June 30, 2009 as though Public Act 96-889
13was approved on that date.
14    (a-5) On or before November 1 of each year, beginning
15November 1, 2012, the Board shall submit to the State Actuary,
16the Governor, and the General Assembly a proposed certification
17of the amount of the required State contribution to the System
18for the next fiscal year, along with all of the actuarial
19assumptions, calculations, and data upon which that proposed
20certification is based. On or before January 1 of each year,
21beginning January 1, 2013, the State Actuary shall issue a
22preliminary report concerning the proposed certification and
23identifying, if necessary, recommended changes in actuarial
24assumptions that the Board must consider before finalizing its
25certification of the required State contributions.
26    On or before January 15, 2013 and each January 15

 

 

09800HB1154ham009- 194 -LRB098 08482 EFG 42440 a

1thereafter, the Board shall certify to the Governor and the
2General Assembly the amount of the required State contribution
3for the next fiscal year. The certification shall include a
4copy of the actuarial recommendations upon which it is based
5and shall specifically identify the System's projected State
6normal cost for that fiscal year. The Board's certification
7must note any deviations from the State Actuary's recommended
8changes, the reason or reasons for not following the State
9Actuary's recommended changes, and the fiscal impact of not
10following the State Actuary's recommended changes on the
11required State contribution.
12    (b) Through State fiscal year 1995, the State contributions
13shall be paid to the System in accordance with Section 18-7 of
14the School Code.
15    (b-1) Beginning in State fiscal year 1996, on the 15th day
16of each month, or as soon thereafter as may be practicable, the
17Board shall submit vouchers for payment of State contributions
18to the System, in a total monthly amount of one-twelfth of the
19required annual State contribution certified under subsection
20(a-1). From the effective date of this amendatory Act of the
2193rd General Assembly through June 30, 2004, the Board shall
22not submit vouchers for the remainder of fiscal year 2004 in
23excess of the fiscal year 2004 certified contribution amount
24determined under this Section after taking into consideration
25the transfer to the System under subsection (a) of Section
266z-61 of the State Finance Act. These vouchers shall be paid by

 

 

09800HB1154ham009- 195 -LRB098 08482 EFG 42440 a

1the State Comptroller and Treasurer by warrants drawn on the
2funds appropriated to the System for that fiscal year.
3    If in any month the amount remaining unexpended from all
4other appropriations to the System for the applicable fiscal
5year (including the appropriations to the System under Section
68.12 of the State Finance Act and Section 1 of the State
7Pension Funds Continuing Appropriation Act) is less than the
8amount lawfully vouchered under this subsection, the
9difference shall be paid from the Common School Fund under the
10continuing appropriation authority provided in Section 1.1 of
11the State Pension Funds Continuing Appropriation Act.
12    (b-2) Allocations from the Common School Fund apportioned
13to school districts not coming under this System shall not be
14diminished or affected by the provisions of this Article.
15    (b-3) For State fiscal years 2014 through 2043, the minimum
16contribution to the System to be made by the State for each
17fiscal year shall be an amount determined by the System to be
18equal to the sum of (1) the State's portion of the projected
19normal cost for that fiscal year, plus (2) an amount sufficient
20to bring the total assets of the System up to 100% of the total
21actuarial liabilities of the System by the end of State fiscal
22year 2043. In making these determinations, the required State
23contribution shall be calculated each year as a level
24percentage of payroll over the years remaining to and including
25fiscal year 2043 and shall be determined under the projected
26unit credit actuarial cost method.

 

 

09800HB1154ham009- 196 -LRB098 08482 EFG 42440 a

1    Beginning in State fiscal year 2044, the minimum State
2contribution for each fiscal year shall be the amount needed to
3maintain the total assets of the System at 100% of the total
4actuarial liabilities of the System.
5    For State fiscal years 2012 and 2013 through 2045, the
6minimum contribution to the System to be made by the State for
7each fiscal year shall be an amount determined by the System to
8be sufficient to bring the total assets of the System up to 90%
9of the total actuarial liabilities of the System by the end of
10State fiscal year 2045. In making these determinations, the
11required State contribution shall be calculated each year as a
12level percentage of payroll over the years remaining to and
13including fiscal year 2045 and shall be determined under the
14projected unit credit actuarial cost method.
15    For State fiscal years 1996 through 2005, the State
16contribution to the System, as a percentage of the applicable
17employee payroll, shall be increased in equal annual increments
18so that by State fiscal year 2011, the State is contributing at
19the rate required under this Section; except that in the
20following specified State fiscal years, the State contribution
21to the System shall not be less than the following indicated
22percentages of the applicable employee payroll, even if the
23indicated percentage will produce a State contribution in
24excess of the amount otherwise required under this subsection
25and subsection (a), and notwithstanding any contrary
26certification made under subsection (a-1) before the effective

 

 

09800HB1154ham009- 197 -LRB098 08482 EFG 42440 a

1date of this amendatory Act of 1998: 10.02% in FY 1999; 10.77%
2in FY 2000; 11.47% in FY 2001; 12.16% in FY 2002; 12.86% in FY
32003; and 13.56% in FY 2004.
4    Notwithstanding any other provision of this Article, the
5total required State contribution for State fiscal year 2006 is
6$534,627,700.
7    Notwithstanding any other provision of this Article, the
8total required State contribution for State fiscal year 2007 is
9$738,014,500.
10    For each of State fiscal years 2008 through 2009, the State
11contribution to the System, as a percentage of the applicable
12employee payroll, shall be increased in equal annual increments
13from the required State contribution for State fiscal year
142007, so that by State fiscal year 2011, the State is
15contributing at the rate otherwise required under this Section.
16    Notwithstanding any other provision of this Article, the
17total required State contribution for State fiscal year 2010 is
18$2,089,268,000 and shall be made from the proceeds of bonds
19sold in fiscal year 2010 pursuant to Section 7.2 of the General
20Obligation Bond Act, less (i) the pro rata share of bond sale
21expenses determined by the System's share of total bond
22proceeds, (ii) any amounts received from the Common School Fund
23in fiscal year 2010, and (iii) any reduction in bond proceeds
24due to the issuance of discounted bonds, if applicable.
25    Notwithstanding any other provision of this Article, the
26total required State contribution for State fiscal year 2011 is

 

 

09800HB1154ham009- 198 -LRB098 08482 EFG 42440 a

1the amount recertified by the System on or before April 1, 2011
2pursuant to subsection (a-1) of this Section and shall be made
3from the proceeds of bonds sold in fiscal year 2011 pursuant to
4Section 7.2 of the General Obligation Bond Act, less (i) the
5pro rata share of bond sale expenses determined by the System's
6share of total bond proceeds, (ii) any amounts received from
7the Common School Fund in fiscal year 2011, and (iii) any
8reduction in bond proceeds due to the issuance of discounted
9bonds, if applicable. This amount shall include, in addition to
10the amount certified by the System, an amount necessary to meet
11employer contributions required by the State as an employer
12under paragraph (e) of this Section, which may also be used by
13the System for contributions required by paragraph (a) of
14Section 16-127.
15    Beginning in State fiscal year 2046, the minimum State
16contribution for each fiscal year shall be the amount needed to
17maintain the total assets of the System at 90% of the total
18actuarial liabilities of the System.
19    Amounts received by the System pursuant to Section 25 of
20the Budget Stabilization Act or Section 8.12 of the State
21Finance Act in any fiscal year do not reduce and do not
22constitute payment of any portion of the minimum State
23contribution required under this Article in that fiscal year.
24Such amounts shall not reduce, and shall not be included in the
25calculation of, the required State contributions under this
26Article in any future year until the System has reached a

 

 

09800HB1154ham009- 199 -LRB098 08482 EFG 42440 a

1funding ratio of at least 100% 90%. A reference in this Article
2to the "required State contribution" or any substantially
3similar term does not include or apply to any amounts payable
4to the System under Section 25 of the Budget Stabilization Act.
5    Notwithstanding any other provision of this Section, the
6required State contribution for State fiscal year 2005 and for
7fiscal year 2008 and each fiscal year thereafter through State
8fiscal year 2013, as calculated under this Section and
9certified under subsection (a-1), shall not exceed an amount
10equal to (i) the amount of the required State contribution that
11would have been calculated under this Section for that fiscal
12year if the System had not received any payments under
13subsection (d) of Section 7.2 of the General Obligation Bond
14Act, minus (ii) the portion of the State's total debt service
15payments for that fiscal year on the bonds issued in fiscal
16year 2003 for the purposes of that Section 7.2, as determined
17and certified by the Comptroller, that is the same as the
18System's portion of the total moneys distributed under
19subsection (d) of Section 7.2 of the General Obligation Bond
20Act. In determining this maximum for State fiscal years 2008
21through 2010, however, the amount referred to in item (i) shall
22be increased, as a percentage of the applicable employee
23payroll, in equal increments calculated from the sum of the
24required State contribution for State fiscal year 2007 plus the
25applicable portion of the State's total debt service payments
26for fiscal year 2007 on the bonds issued in fiscal year 2003

 

 

09800HB1154ham009- 200 -LRB098 08482 EFG 42440 a

1for the purposes of Section 7.2 of the General Obligation Bond
2Act, so that, by State fiscal year 2011, the State is
3contributing at the rate otherwise required under this Section.
4    (c) Payment of the required State contributions and of all
5pensions, retirement annuities, death benefits, refunds, and
6other benefits granted under or assumed by this System, and all
7expenses in connection with the administration and operation
8thereof, are obligations of the State.
9    If members are paid from special trust or federal funds
10which are administered by the employing unit, whether school
11district or other unit, the employing unit shall pay to the
12System from such funds the full accruing retirement costs based
13upon that service, as determined by the System. Employer
14contributions, based on salary paid to members from federal
15funds, may be forwarded by the distributing agency of the State
16of Illinois to the System prior to allocation, in an amount
17determined in accordance with guidelines established by such
18agency and the System.
19    (d) Effective July 1, 1986, any employer of a teacher as
20defined in paragraph (8) of Section 16-106 shall pay the
21employer's normal cost of benefits based upon the teacher's
22service, in addition to employee contributions, as determined
23by the System. Such employer contributions shall be forwarded
24monthly in accordance with guidelines established by the
25System.
26    However, with respect to benefits granted under Section

 

 

09800HB1154ham009- 201 -LRB098 08482 EFG 42440 a

116-133.4 or 16-133.5 to a teacher as defined in paragraph (8)
2of Section 16-106, the employer's contribution shall be 12%
3(rather than 20%) of the member's highest annual salary rate
4for each year of creditable service granted, and the employer
5shall also pay the required employee contribution on behalf of
6the teacher. For the purposes of Sections 16-133.4 and
716-133.5, a teacher as defined in paragraph (8) of Section
816-106 who is serving in that capacity while on leave of
9absence from another employer under this Article shall not be
10considered an employee of the employer from which the teacher
11is on leave.
12    (e) Beginning July 1, 1998, every employer of a teacher
13shall pay to the System an employer contribution computed as
14follows:
15        (1) Beginning July 1, 1998 through June 30, 1999, the
16    employer contribution shall be equal to 0.3% of each
17    teacher's salary.
18        (2) Beginning July 1, 1999 and thereafter, the employer
19    contribution shall be equal to 0.58% of each teacher's
20    salary.
21The school district or other employing unit may pay these
22employer contributions out of any source of funding available
23for that purpose and shall forward the contributions to the
24System on the schedule established for the payment of member
25contributions.
26    These employer contributions are intended to offset a

 

 

09800HB1154ham009- 202 -LRB098 08482 EFG 42440 a

1portion of the cost to the System of the increases in
2retirement benefits resulting from this amendatory Act of 1998.
3    Each employer of teachers is entitled to a credit against
4the contributions required under this subsection (e) with
5respect to salaries paid to teachers for the period January 1,
62002 through June 30, 2003, equal to the amount paid by that
7employer under subsection (a-5) of Section 6.6 of the State
8Employees Group Insurance Act of 1971 with respect to salaries
9paid to teachers for that period.
10    The additional 1% employee contribution required under
11Section 16-152 by this amendatory Act of 1998 is the
12responsibility of the teacher and not the teacher's employer,
13unless the employer agrees, through collective bargaining or
14otherwise, to make the contribution on behalf of the teacher.
15    If an employer is required by a contract in effect on May
161, 1998 between the employer and an employee organization to
17pay, on behalf of all its full-time employees covered by this
18Article, all mandatory employee contributions required under
19this Article, then the employer shall be excused from paying
20the employer contribution required under this subsection (e)
21for the balance of the term of that contract. The employer and
22the employee organization shall jointly certify to the System
23the existence of the contractual requirement, in such form as
24the System may prescribe. This exclusion shall cease upon the
25termination, extension, or renewal of the contract at any time
26after May 1, 1998.

 

 

09800HB1154ham009- 203 -LRB098 08482 EFG 42440 a

1    (f) If the amount of a teacher's salary for any school year
2used to determine final average salary exceeds the member's
3annual full-time salary rate with the same employer for the
4previous school year by more than 6%, the teacher's employer
5shall pay to the System, in addition to all other payments
6required under this Section and in accordance with guidelines
7established by the System, the present value of the increase in
8benefits resulting from the portion of the increase in salary
9that is in excess of 6%. This present value shall be computed
10by the System on the basis of the actuarial assumptions and
11tables used in the most recent actuarial valuation of the
12System that is available at the time of the computation. If a
13teacher's salary for the 2005-2006 school year is used to
14determine final average salary under this subsection (f), then
15the changes made to this subsection (f) by Public Act 94-1057
16shall apply in calculating whether the increase in his or her
17salary is in excess of 6%. For the purposes of this Section,
18change in employment under Section 10-21.12 of the School Code
19on or after June 1, 2005 shall constitute a change in employer.
20The System may require the employer to provide any pertinent
21information or documentation. The changes made to this
22subsection (f) by this amendatory Act of the 94th General
23Assembly apply without regard to whether the teacher was in
24service on or after its effective date.
25    Whenever it determines that a payment is or may be required
26under this subsection, the System shall calculate the amount of

 

 

09800HB1154ham009- 204 -LRB098 08482 EFG 42440 a

1the payment and bill the employer for that amount. The bill
2shall specify the calculations used to determine the amount
3due. If the employer disputes the amount of the bill, it may,
4within 30 days after receipt of the bill, apply to the System
5in writing for a recalculation. The application must specify in
6detail the grounds of the dispute and, if the employer asserts
7that the calculation is subject to subsection (g) or (h) of
8this Section, must include an affidavit setting forth and
9attesting to all facts within the employer's knowledge that are
10pertinent to the applicability of that subsection. Upon
11receiving a timely application for recalculation, the System
12shall review the application and, if appropriate, recalculate
13the amount due.
14    The employer contributions required under this subsection
15(f) may be paid in the form of a lump sum within 90 days after
16receipt of the bill. If the employer contributions are not paid
17within 90 days after receipt of the bill, then interest will be
18charged at a rate equal to the System's annual actuarially
19assumed rate of return on investment compounded annually from
20the 91st day after receipt of the bill. Payments must be
21concluded within 3 years after the employer's receipt of the
22bill.
23    (g) This subsection (g) applies only to payments made or
24salary increases given on or after June 1, 2005 but before July
251, 2011. The changes made by Public Act 94-1057 shall not
26require the System to refund any payments received before July

 

 

09800HB1154ham009- 205 -LRB098 08482 EFG 42440 a

131, 2006 (the effective date of Public Act 94-1057).
2    When assessing payment for any amount due under subsection
3(f), the System shall exclude salary increases paid to teachers
4under contracts or collective bargaining agreements entered
5into, amended, or renewed before June 1, 2005.
6    When assessing payment for any amount due under subsection
7(f), the System shall exclude salary increases paid to a
8teacher at a time when the teacher is 10 or more years from
9retirement eligibility under Section 16-132 or 16-133.2.
10    When assessing payment for any amount due under subsection
11(f), the System shall exclude salary increases resulting from
12overload work, including summer school, when the school
13district has certified to the System, and the System has
14approved the certification, that (i) the overload work is for
15the sole purpose of classroom instruction in excess of the
16standard number of classes for a full-time teacher in a school
17district during a school year and (ii) the salary increases are
18equal to or less than the rate of pay for classroom instruction
19computed on the teacher's current salary and work schedule.
20    When assessing payment for any amount due under subsection
21(f), the System shall exclude a salary increase resulting from
22a promotion (i) for which the employee is required to hold a
23certificate or supervisory endorsement issued by the State
24Teacher Certification Board that is a different certification
25or supervisory endorsement than is required for the teacher's
26previous position and (ii) to a position that has existed and

 

 

09800HB1154ham009- 206 -LRB098 08482 EFG 42440 a

1been filled by a member for no less than one complete academic
2year and the salary increase from the promotion is an increase
3that results in an amount no greater than the lesser of the
4average salary paid for other similar positions in the district
5requiring the same certification or the amount stipulated in
6the collective bargaining agreement for a similar position
7requiring the same certification.
8    When assessing payment for any amount due under subsection
9(f), the System shall exclude any payment to the teacher from
10the State of Illinois or the State Board of Education over
11which the employer does not have discretion, notwithstanding
12that the payment is included in the computation of final
13average salary.
14    (h) When assessing payment for any amount due under
15subsection (f), the System shall exclude any salary increase
16described in subsection (g) of this Section given on or after
17July 1, 2011 but before July 1, 2014 under a contract or
18collective bargaining agreement entered into, amended, or
19renewed on or after June 1, 2005 but before July 1, 2011.
20Notwithstanding any other provision of this Section, any
21payments made or salary increases given after June 30, 2014
22shall be used in assessing payment for any amount due under
23subsection (f) of this Section.
24    (i) The System shall prepare a report and file copies of
25the report with the Governor and the General Assembly by
26January 1, 2007 that contains all of the following information:

 

 

09800HB1154ham009- 207 -LRB098 08482 EFG 42440 a

1        (1) The number of recalculations required by the
2    changes made to this Section by Public Act 94-1057 for each
3    employer.
4        (2) The dollar amount by which each employer's
5    contribution to the System was changed due to
6    recalculations required by Public Act 94-1057.
7        (3) The total amount the System received from each
8    employer as a result of the changes made to this Section by
9    Public Act 94-4.
10        (4) The increase in the required State contribution
11    resulting from the changes made to this Section by Public
12    Act 94-1057.
13    (j) For purposes of determining the required State
14contribution to the System, the value of the System's assets
15shall be equal to the actuarial value of the System's assets,
16which shall be calculated as follows:
17    As of June 30, 2008, the actuarial value of the System's
18assets shall be equal to the market value of the assets as of
19that date. In determining the actuarial value of the System's
20assets for fiscal years after June 30, 2008, any actuarial
21gains or losses from investment return incurred in a fiscal
22year shall be recognized in equal annual amounts over the
235-year period following that fiscal year.
24    (k) For purposes of determining the required State
25contribution to the system for a particular year, the actuarial
26value of assets shall be assumed to earn a rate of return equal

 

 

09800HB1154ham009- 208 -LRB098 08482 EFG 42440 a

1to the system's actuarially assumed rate of return.
2(Source: P.A. 96-43, eff. 7-15-09; 96-1497, eff. 1-14-11;
396-1511, eff. 1-27-11; 96-1554, eff. 3-18-11; 97-694, eff.
46-18-12; 97-813, eff. 7-13-12.)
 
5    (40 ILCS 5/16-158.1)  (from Ch. 108 1/2, par. 16-158.1)
6    Sec. 16-158.1. Actions to enforce payments by school
7districts and other employing units other than the State. Any
8school district or other employing unit, other than the State,
9that fails failing to transmit to the System contributions
10required of it under this Article or contributions required of
11teachers, for more than 90 days after such contributions are
12due is subject to the following: after giving notice to the
13district or other unit, the System may certify to the State
14Comptroller or the Regional Superintendent of Schools the
15amounts of such delinquent payments and the State Comptroller
16or the Regional Superintendent of Schools shall deduct the
17amounts so certified or any part thereof from any State funds
18to be remitted to the school district or other employing unit
19involved and shall pay the amount so deducted to the System. If
20State funds from which such deductions may be made are not
21available, the System may proceed against the school district
22or other employing unit to recover the amounts of such
23delinquent payments in the appropriate circuit court.
24    The System may provide for an audit of the records of a
25school district or other employing unit, other than the State,

 

 

09800HB1154ham009- 209 -LRB098 08482 EFG 42440 a

1as may be required to establish the amounts of required
2contributions. The school district or other employing unit
3shall make its records available to the System for the purpose
4of such audit. The cost of such audit shall be added to the
5amount of the delinquent payments and shall be recovered by the
6System from the school district or other employing unit at the
7same time and in the same manner as the delinquent payments are
8recovered.
9(Source: P.A. 90-448, eff. 8-16-97.)
 
10    (40 ILCS 5/16-158.2 new)
11    Sec. 16-158.2. Obligations of State; funding guarantee.
12Beginning July 1, 2013, the State shall be contractually
13obligated to contribute to the System under Section 16-158 in
14each State fiscal year an amount not less than the sum of (i)
15the State's normal cost for that year and (ii) the portion of
16the unfunded accrued liability assigned to that year by law in
17accordance with a schedule that distributes payments equitably
18over a reasonable period of time and in accordance with
19accepted actuarial practices. The obligations created under
20this Section are contractual obligations protected and
21enforceable under Article I, Section 16 and Article XIII,
22Section 5 of the Illinois Constitution.
23    Notwithstanding any other provision of law, if the State
24fails to pay in a State fiscal year the amount guaranteed under
25this Section, the System may bring a mandamus action in the

 

 

09800HB1154ham009- 210 -LRB098 08482 EFG 42440 a

1Circuit Court of Sangamon County to compel the State to make
2that payment, irrespective of other remedies that may be
3available to the System. In ordering the State to make the
4required payment, the court may order a reasonable payment
5schedule to enable the State to make the required payment
6without significantly imperiling the public health, safety, or
7welfare.
8    Any payments required to be made by the State pursuant to
9this Section are expressly subordinated to the payment of the
10principal, interest, and premium, if any, on any bonded debt
11obligation of the State or any other State-created entity,
12either currently outstanding or to be issued, for which the
13source of repayment or security thereon is derived directly or
14indirectly from tax revenues collected by the State or any
15other State-created entity. Payments on such bonded
16obligations include any statutory fund transfers or other
17prefunding mechanisms or formulas set forth, now or hereafter,
18in State law or bond indentures, into debt service funds or
19accounts of the State related to such bonded obligations,
20consistent with the payment schedules associated with such
21obligations.
 
22    (40 ILCS 5/16-203)
23    Sec. 16-203. Application and expiration of new benefit
24increases.
25    (a) As used in this Section, "new benefit increase" means

 

 

09800HB1154ham009- 211 -LRB098 08482 EFG 42440 a

1an increase in the amount of any benefit provided under this
2Article, or an expansion of the conditions of eligibility for
3any benefit under this Article, that results from an amendment
4to this Code that takes effect after June 1, 2005 (the
5effective date of Public Act 94-4). "New benefit increase",
6however, does not include any benefit increase resulting from
7the changes made to this Article or Article 1 by Public Act
895-910 or this amendatory Act of the 98th 95th General
9Assembly.
10    (b) Notwithstanding any other provision of this Code or any
11subsequent amendment to this Code, every new benefit increase
12is subject to this Section and shall be deemed to be granted
13only in conformance with and contingent upon compliance with
14the provisions of this Section.
15    (c) The Public Act enacting a new benefit increase must
16identify and provide for payment to the System of additional
17funding at least sufficient to fund the resulting annual
18increase in cost to the System as it accrues.
19    Every new benefit increase is contingent upon the General
20Assembly providing the additional funding required under this
21subsection. The Commission on Government Forecasting and
22Accountability shall analyze whether adequate additional
23funding has been provided for the new benefit increase and
24shall report its analysis to the Public Pension Division of the
25Department of Financial and Professional Regulation. A new
26benefit increase created by a Public Act that does not include

 

 

09800HB1154ham009- 212 -LRB098 08482 EFG 42440 a

1the additional funding required under this subsection is null
2and void. If the Public Pension Division determines that the
3additional funding provided for a new benefit increase under
4this subsection is or has become inadequate, it may so certify
5to the Governor and the State Comptroller and, in the absence
6of corrective action by the General Assembly, the new benefit
7increase shall expire at the end of the fiscal year in which
8the certification is made.
9    (d) Every new benefit increase shall expire 5 years after
10its effective date or on such earlier date as may be specified
11in the language enacting the new benefit increase or provided
12under subsection (c). This does not prevent the General
13Assembly from extending or re-creating a new benefit increase
14by law.
15    (e) Except as otherwise provided in the language creating
16the new benefit increase, a new benefit increase that expires
17under this Section continues to apply to persons who applied
18and qualified for the affected benefit while the new benefit
19increase was in effect and to the affected beneficiaries and
20alternate payees of such persons, but does not apply to any
21other person, including without limitation a person who
22continues in service after the expiration date and did not
23apply and qualify for the affected benefit while the new
24benefit increase was in effect.
25(Source: P.A. 94-4, eff. 6-1-05; 95-910, eff. 8-26-08.)
 

 

 

09800HB1154ham009- 213 -LRB098 08482 EFG 42440 a

1    (40 ILCS 5/20-121)  (from Ch. 108 1/2, par. 20-121)
2    Sec. 20-121. Calculation of proportional retirement
3annuities. Upon retirement of the employee, a proportional
4retirement annuity shall be computed by each participating
5system in which pension credit has been established on the
6basis of pension credits under each system. The computation
7shall be in accordance with the formula or method prescribed by
8each participating system which is in effect at the date of the
9employee's latest withdrawal from service covered by any of the
10systems in which he has pension credits which he elects to have
11considered under this Article. However, the amount of any
12retirement annuity payable under the self-managed plan
13established under Section 15-158.2 of this Code or under the
14defined-contribution component of a Tier 3 retirement plan
15established under Section 15-158.5 or 16-152.8 depends solely
16on the value of the participant's vested account balances and
17is not subject to any proportional adjustment under this
18Section.
19    Combined pension credit under all retirement systems
20subject to this Article shall be considered in determining
21whether the minimum qualification has been met and the formula
22or method of computation which shall be applied. If a system
23has a step-rate formula for calculation of the retirement
24annuity, pension credits covering previous service which have
25been established under another system shall be considered in
26determining which range or ranges of the step-rate formula are

 

 

09800HB1154ham009- 214 -LRB098 08482 EFG 42440 a

1to be applicable to the employee.
2    Interest on pension credit shall continue to accumulate in
3accordance with the provisions of the law governing the
4retirement system in which the same has been established during
5the time an employee is in the service of another employer, on
6the assumption such employee, for interest purposes for pension
7credit, is continuing in the service covered by such retirement
8system.
9(Source: P.A. 91-887, eff. 7-6-00.)
 
10    (40 ILCS 5/20-123)  (from Ch. 108 1/2, par. 20-123)
11    Sec. 20-123. Survivor's annuity. The provisions governing
12a retirement annuity shall be applicable to a survivor's
13annuity. Appropriate credits shall be established for
14survivor's annuity purposes in those participating systems
15which provide survivor's annuities, according to the same
16conditions and subject to the same limitations and restrictions
17herein prescribed for a retirement annuity. If a participating
18system has no survivor's annuity benefit, or if the survivor's
19annuity benefit under that system is waived, pension credit
20established in that system shall not be considered in
21determining eligibility for or the amount of the survivor's
22annuity which may be payable by any other participating system.
23    For persons who participate in the self-managed plan
24established under Section 15-158.2 or the portable benefit
25package established under Section 15-136.4, or in a Tier 3

 

 

09800HB1154ham009- 215 -LRB098 08482 EFG 42440 a

1retirement plan established under Section 15-158.5, pension
2credit established under Article 15 may be considered in
3determining eligibility for or the amount of the survivor's
4annuity that is payable by any other participating system, but
5pension credit established in any other system shall not result
6in any right to a survivor's annuity under the Article 15
7system.
8    For persons who participate in the Tier 3 retirement plan
9established under Section 16-152.8, pension credit established
10under Article 16 may be considered in determining eligibility
11for or the amount of the survivor's annuity that is payable by
12any other participating system, but pension credit established
13in any other system shall not result in any right to a
14survivor's annuity under the Article 16 system.
15(Source: P.A. 91-887, eff. 7-6-00.)
 
16    (40 ILCS 5/20-124)  (from Ch. 108 1/2, par. 20-124)
17    Sec. 20-124. Maximum benefits.
18    (a) In no event shall the combined retirement or survivors
19annuities exceed the highest annuity which would have been
20payable by any participating system in which the employee has
21pension credits, if all of his pension credits had been
22validated in that system.
23    If the combined annuities should exceed the highest maximum
24as determined in accordance with this Section, the respective
25annuities shall be reduced proportionately according to the

 

 

09800HB1154ham009- 216 -LRB098 08482 EFG 42440 a

1ratio which the amount of each proportional annuity bears to
2the aggregate of all such annuities.
3    (b) In the case of a participant in the self-managed plan
4established under Section 15-158.2 of this Code to whom the
5provisions of this Article apply:
6        (i) For purposes of calculating the combined
7    retirement annuity and the proportionate reduction, if
8    any, in a retirement annuity other than one payable under
9    the self-managed plan, the amount of the Article 15
10    retirement annuity shall be deemed to be the highest
11    annuity to which the annuitant would have been entitled if
12    he or she had participated in the traditional benefit
13    package as defined in Section 15-103.1 rather than the
14    self-managed plan.
15        (ii) For purposes of calculating the combined
16    survivor's annuity and the proportionate reduction, if
17    any, in a survivor's annuity other than one payable under
18    the self-managed plan, the amount of the Article 15
19    survivor's annuity shall be deemed to be the highest
20    survivor's annuity to which the survivor would have been
21    entitled if the deceased employee had participated in the
22    traditional benefit package as defined in Section 15-103.1
23    rather than the self-managed plan.
24        (iii) Benefits payable under the self-managed plan are
25    not subject to proportionate reduction under this Section.
26    (c) In the case of a participant in a Tier 3 retirement

 

 

09800HB1154ham009- 217 -LRB098 08482 EFG 42440 a

1plan established under Section 15-158.5 of this Code to whom
2the provisions of this Article apply:
3        (i) For purposes of calculating the combined
4    retirement annuity and the proportionate reduction, if
5    any, in a retirement annuity other than one payable under
6    Article 15 of this Code, the amount of the Article 15
7    retirement annuity shall be deemed to be the amount of the
8    retirement annuity payable under the defined-benefit
9    component of the Tier 3 retirement plan, but shall not
10    include any benefit payable under the defined-contribution
11    component of the Tier 3 retirement plan.
12        (ii) For purposes of calculating the combined
13    survivor's annuity and the proportionate reduction, if
14    any, in a survivor's annuity other than one payable under
15    Article 15 of this Code, the amount of the Article 15
16    survivor's annuity shall be deemed to be the amount of the
17    survivor's annuity payable under the defined benefit
18    portion of the Tier 3 retirement plan, but shall not
19    include any benefit payable under the defined-contribution
20    component of the Tier 3 retirement plan.
21        (iii) Benefits payable under the defined-contribution
22    component of the Tier 3 retirement plan established under
23    Section 15-158.5 are not subject to proportionate
24    reduction under this Section.
25    (d) In the case of a participant in a Tier 3 retirement
26plan established under Section 16-152.8 of this Code to whom

 

 

09800HB1154ham009- 218 -LRB098 08482 EFG 42440 a

1the provisions of this Article apply:
2        (i) For purposes of calculating the combined
3    retirement annuity and the proportionate reduction, if
4    any, in a retirement annuity other than one payable under
5    Article 16 of this Code, the amount of the Article 16
6    retirement annuity shall be deemed to be the amount of the
7    retirement annuity payable under the defined-benefit
8    component of the Tier 3 retirement plan, but shall not
9    include any benefit payable under the defined-contribution
10    component of the Tier 3 retirement plan.
11        (ii) For purposes of calculating the combined
12    survivor's annuity and the proportionate reduction, if
13    any, in a survivor's annuity other than one payable under
14    Article 16 of this Code, the amount of the Article 16
15    survivor's annuity shall be deemed to be the amount of the
16    survivor's annuity payable under the defined benefit
17    portion of the Tier 3 retirement plan, but shall not
18    include any benefit payable under the defined-contribution
19    component of the Tier 3 retirement plan.
20        (iii) Benefits payable under the defined-contribution
21    component of the Tier