SB0001 EnrolledLRB098 05457 JDS 35491 b

1    AN ACT concerning public employee benefits.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 1. Legislative statement.
5    At the time of passage of this amendatory Act of the 98th
6General Assembly, Illinois has both atypically large debts and
7structural budgetary imbalances that will, unless addressed by
8the General Assembly, lead to even greater and rapidly growing
9debts and deficits. Already, Illinois has the lowest credit
10rating of any state, and it faces the prospect of future credit
11downgrades that will further increase the high cost of
12borrowing.
13    The State has taken significant action to address these
14fiscal troubles, including, but not limited to, increasing the
15income tax and reducing pension benefits for future employees.
16Further, the State has enacted a series of budgets over the
17last several fiscal years that resulted in deep cuts to
18important discretionary programs that are essential to the
19people of Illinois.
20    At the time of passage of this amendatory Act of the 98th
21General Assembly, the State's retirement systems have unfunded
22actuarially accrued liabilities of approximately $100 billion.
23Meanwhile, the State's annual pension contribution has
24substantially increased in recent years, and will continue to

 

 

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1increase in coming years. The General Assembly recognizes that
2without significant pension reform, the unfunded liability and
3the State's pension contribution will continue to grow, and
4further burden the fiscal stability of both the State and its
5retirement systems.
6    This amendatory Act of the 98th General Assembly is
7intended to address the fiscal issues facing the State and its
8retirement systems in a manner that is feasible, consistent
9with the Illinois Constitution, and advantageous to both the
10taxpayers and employees impacted by these changes. Having
11considered other alternatives that would not involve changes to
12the retirement systems, the General Assembly has determined
13that the fiscal problems facing the State and its retirement
14systems cannot be solved without making some changes to the
15structure of the retirement systems. As a result, this
16amendatory Act requires more fiscal responsibility of the
17State, while minimizing the impact on current and retired State
18employees.
19    Going forward, the automatic annual increase in retirement
20annuity will be based on a participant's years of service to
21the State and inflation, which more accurately reflects changes
22in the cost of living. For participants who have yet to receive
23an annuity, a pensionable salary cap will be imposed; however,
24it will only impact future salary increases that exceed a cap.
25Those workers 45 years of age and younger will be required to
26work an additional 4 months for each year under 46, which

 

 

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1results in a minimal increase in retirement age given that the
2life expectancy for a 45 year old is 87 years of age. Current
3employees will receive a 1% reduction in required employee
4contributions. With these changes, the State can adopt an
5actuarially sound funding formula that will result in the
6pension systems achieving 100% funding no later than 2044. The
7State will also make additional contributions that will
8considerably aid in reducing the unfunded actuarially accrued
9liability.
10    The General Assembly finds that this amendatory Act of the
1198th General Assembly will lead to fiscal stability for the
12State and its pension systems.
 
13    Section 3. The Illinois Public Labor Relations Act is
14amended by changing Sections 4 and 15 and adding Section 7.5 as
15follows:
 
16    (5 ILCS 315/4)  (from Ch. 48, par. 1604)
17    Sec. 4. Management Rights.   Employers shall not be
18required to bargain over matters of inherent managerial policy,
19which shall include such areas of discretion or policy as the
20functions of the employer, standards of services, its overall
21budget, the organizational structure and selection of new
22employees, examination techniques and direction of employees.
23Employers, however, shall be required to bargain collectively
24with regard to policy matters directly affecting wages, hours

 

 

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1and terms and conditions of employment as well as the impact
2thereon upon request by employee representatives, except as
3provided in Section 7.5.
4    To preserve the rights of employers and exclusive
5representatives which have established collective bargaining
6relationships or negotiated collective bargaining agreements
7prior to the effective date of this Act, employers shall be
8required to bargain collectively with regard to any matter
9concerning wages, hours or conditions of employment about which
10they have bargained for and agreed to in a collective
11bargaining agreement prior to the effective date of this Act,
12except as provided in Section 7.5.
13    The chief judge of the judicial circuit that employs a
14public employee who is a court reporter, as defined in the
15Court Reporters Act, has the authority to hire, appoint,
16promote, evaluate, discipline, and discharge court reporters
17within that judicial circuit.
18    Nothing in this amendatory Act of the 94th General Assembly
19shall be construed to intrude upon the judicial functions of
20any court. This amendatory Act of the 94th General Assembly
21applies only to nonjudicial administrative matters relating to
22the collective bargaining rights of court reporters.
23(Source: P.A. 94-98, eff. 7-1-05.)
 
24    (5 ILCS 315/7.5 new)
25    Sec. 7.5. Duty to bargain regarding pension amendments.

 

 

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1    (a) Notwithstanding any provision of this Act, employers
2shall not be required to bargain over matters affected by the
3changes, the impact of changes, and the implementation of
4changes made to Article 14, 15, or 16 of the Illinois Pension
5Code, or Article 1 of that Code as it applies to those
6Articles, made by this amendatory Act of the 98th General
7Assembly, or over any other provision of Article 14, 15, or 16
8of the Illinois Pension Code, or of Article 1 of that Code as
9it applies to those Articles, which are prohibited subjects of
10bargaining; nor shall the changes, the impact of changes, or
11the implementation of changes made to Article 14, 15, or 16 of
12the Illinois Pension Code, or to Article 1 of that Code as it
13applies to those Articles, by this amendatory Act of the 98th
14General Assembly or any other provision of Article 14, 15, or
1516 of the Illinois Pension Code, or of Article 1 of that Code
16as it applies to those Articles, be subject to interest
17arbitration or any award issued pursuant to interest
18arbitration. The provisions of this Section shall not apply to
19an employment contract or collective bargaining agreement that
20is in effect on the effective date of this amendatory Act of
21the 98th General Assembly. However, any such contract or
22agreement that is subsequently modified, amended, or renewed
23shall be subject to the provisions of this Section. The
24provisions of this Section shall also not apply to the ability
25of an employer and employee representative to bargain
26collectively with regard to the pick up of employee

 

 

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1contributions pursuant to Section 14-133.1, 15-157.1, or
216-152.1 of the Illinois Pension Code.
3    (b) Nothing in this Section, however, shall be construed as
4otherwise limiting any of the obligations and requirements
5applicable to each employer under any of the provisions of this
6Act, including, but not limited to, the requirement to bargain
7collectively with regard to policy matters directly affecting
8wages, hours and terms and conditions of employment as well as
9the impact thereon upon request by employee representatives,
10except for the matters deemed prohibited subjects of bargaining
11under subsection (a) of this Section. Nothing in this Section
12shall further be construed as otherwise limiting any of the
13rights of employees or employee representatives under the
14provisions of this Act, except for matters deemed prohibited
15subjects of bargaining under subsection (a) of this Section.
16    (c) In case of any conflict between this Section and any
17other provisions of this Act or any other law, the provisions
18of this Section shall control.
 
19    (5 ILCS 315/15)  (from Ch. 48, par. 1615)
20    Sec. 15. Act Takes Precedence.
21    (a) In case of any conflict between the provisions of this
22Act and any other law (other than Section 5 of the State
23Employees Group Insurance Act of 1971 and other than the
24changes made to the Illinois Pension Code by Public Act 96-889
25and other than as provided in Section 7.5 this amendatory Act

 

 

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1of the 96th General Assembly), executive order or
2administrative regulation relating to wages, hours and
3conditions of employment and employment relations, the
4provisions of this Act or any collective bargaining agreement
5negotiated thereunder shall prevail and control. Nothing in
6this Act shall be construed to replace or diminish the rights
7of employees established by Sections 28 and 28a of the
8Metropolitan Transit Authority Act, Sections 2.15 through 2.19
9of the Regional Transportation Authority Act. The provisions of
10this Act are subject to Section 7.5 of this Act and Section 5
11of the State Employees Group Insurance Act of 1971. Nothing in
12this Act shall be construed to replace the necessity of
13complaints against a sworn peace officer, as defined in Section
142(a) of the Uniform Peace Officer Disciplinary Act, from having
15a complaint supported by a sworn affidavit.
16    (b) Except as provided in subsection (a) above, any
17collective bargaining contract between a public employer and a
18labor organization executed pursuant to this Act shall
19supersede any contrary statutes, charters, ordinances, rules
20or regulations relating to wages, hours and conditions of
21employment and employment relations adopted by the public
22employer or its agents. Any collective bargaining agreement
23entered into prior to the effective date of this Act shall
24remain in full force during its duration.
25    (c) It is the public policy of this State, pursuant to
26paragraphs (h) and (i) of Section 6 of Article VII of the

 

 

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1Illinois Constitution, that the provisions of this Act are the
2exclusive exercise by the State of powers and functions which
3might otherwise be exercised by home rule units. Such powers
4and functions may not be exercised concurrently, either
5directly or indirectly, by any unit of local government,
6including any home rule unit, except as otherwise authorized by
7this Act.
8(Source: P.A. 95-331, eff. 8-21-07; 96-889, eff. 1-1-11.)
 
9    Section 5. The Governor's Office of Management and Budget
10Act is amended by changing Sections 7 and 8 as follows:
 
11    (20 ILCS 3005/7)  (from Ch. 127, par. 417)
12    Sec. 7. All statements and estimates of expenditures
13submitted to the Office in connection with the preparation of a
14State budget, and any other estimates of expenditures,
15supporting requests for appropriations, shall be formulated
16according to the various functions and activities for which the
17respective department, office or institution of the State
18government (including the elective officers in the executive
19department and including the University of Illinois and the
20judicial department) is responsible. All such statements and
21estimates of expenditures relating to a particular function or
22activity shall be further formulated or subject to analysis in
23accordance with the following classification of objects:
24    (1) Personal services

 

 

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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) Telecommunication services
10    (11) Operation of Automotive Equipment
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(Source: P.A. 93-25, eff. 6-20-03.)
 
21    (20 ILCS 3005/8)  (from Ch. 127, par. 418)
22    Sec. 8. When used in connection with a State budget or
23expenditure or estimate, items (1) through (16) in the
24classification of objects stated in Section 7 shall have the
25meanings ascribed to those items in Sections 14 through 24.7,

 

 

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1respectively, of the State Finance Act. "An Act in relation to
2State finance", approved June 10, 1919, as amended.
3    When used in connection with a State budget or expenditure
4or estimate, items (18) and (19) in the classification of
5objects stated in Section 7 shall have the meanings ascribed to
6those items in Sections 24.12 and 24.13, respectively, of the
7State Finance Act.
8(Source: P.A. 82-325.)
 
9    Section 7. The State Finance Act is amended by changing
10Section 13 and by adding Sections 24.12 and 24.13 as follows:
 
11    (30 ILCS 105/13)  (from Ch. 127, par. 149)
12    Sec. 13. The objects and purposes for which appropriations
13are made are classified and standardized by items as follows:
14    (1) Personal services;
15    (2) State contribution for employee group insurance;
16    (3) Contractual services;
17    (4) Travel;
18    (5) Commodities;
19    (6) Equipment;
20    (7) Permanent improvements;
21    (8) Land;
22    (9) Electronic Data Processing;
23    (10) Operation of automotive equipment;
24    (11) Telecommunications services;

 

 

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1    (12) Contingencies;
2    (13) Reserve;
3    (14) Interest;
4    (15) Awards and Grants;
5    (16) Debt Retirement;
6    (17) Non-Cost Charges;
7    (18) State retirement contribution for annual normal cost;
8    (19) State retirement contribution for unfunded accrued
9liability;
10    (20) (18) Purchase Contract for Real Estate.
11    When an appropriation is made to an officer, department,
12institution, board, commission or other agency, or to a private
13association or corporation, in one or more of the items above
14specified, such appropriation shall be construed in accordance
15with the definitions and limitations specified in this Act,
16unless the appropriation act otherwise provides.
17    An appropriation for a purpose other than one specified and
18defined in this Act may be made only as an additional, separate
19and distinct item, specifically stating the object and purpose
20thereof.
21(Source: P.A. 84-263; 84-264.)
 
22    (30 ILCS 105/24.12 new)
23    Sec. 24.12. "State retirement contribution for annual
24normal cost" defined. The term "State retirement contribution
25for annual normal cost" means the portion of the total required

 

 

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1State contribution to a retirement system for a fiscal year
2that represents the State's portion of the System's projected
3normal cost for that fiscal year, as determined and certified
4by the board of trustees of the retirement system in
5conformance with the applicable provisions of the Illinois
6Pension Code.
 
7    (30 ILCS 105/24.13 new)
8    Sec. 24.13. "State retirement contribution for unfunded
9accrued liability" defined. The term "State retirement
10contribution for unfunded accrued liability" means the portion
11of the total required State contribution to a retirement system
12for a fiscal year that is not included in the State retirement
13contribution for annual normal cost.
 
14    Section 10. The Budget Stabilization Act is amended by
15changing Sections 20 and 25 as follows:
 
16    (30 ILCS 122/20)
17    Sec. 20. Pension Stabilization Fund.
18    (a) The Pension Stabilization Fund is hereby created as a
19special fund in the State treasury. Moneys in the fund shall be
20used for the sole purpose of making payments to the designated
21retirement systems as provided in Section 25.
22    (b) For each fiscal year through State fiscal year 2014,
23when the General Assembly's appropriations and transfers or

 

 

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1diversions as required by law from general funds do not exceed
299% of the estimated general funds revenues pursuant to
3subsection (a) of Section 10, the Comptroller shall transfer
4from the General Revenue Fund as provided by this Section a
5total amount equal to 0.5% of the estimated general funds
6revenues to the Pension Stabilization Fund.
7    (c) For each fiscal year through State fiscal year 2014,
8when the General Assembly's appropriations and transfers or
9diversions as required by law from general funds do not exceed
1098% of the estimated general funds revenues pursuant to
11subsection (b) of Section 10, the Comptroller shall transfer
12from the General Revenue Fund as provided by this Section a
13total amount equal to 1.0% of the estimated general funds
14revenues to the Pension Stabilization Fund.
15    (c-5) In addition to any other amounts required to be
16transferred under this Section, in State fiscal year 2016 and
17each fiscal year thereafter through State fiscal year 2045, or
18when each of the designated retirement systems, as defined in
19Section 25, has achieved 100% funding, whichever occurs first,
20the State Comptroller shall order transferred and the State
21Treasurer shall transfer from the General Revenue Fund to the
22Pension Stabilization Fund an amount equal to 10% of (1) the
23sum of the amounts certified by the designated retirement
24systems under subsection (a-5) of Section 2-134, subsection
25(a-10) of Section 14-135.08, subsection (a-10) of Section
2615-165, and subsection (a-10) of Section 16-158 of this Code

 

 

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1for that fiscal year minus (2) the sum of (i) the transfer
2required under subsection (c-10) of this Section for that
3fiscal year and (ii) the sum of the required State
4contributions certified by the retirement systems under
5subsection (a) of Section 2-134, subsection (a-5) of Section
614-135.08, subsection (a-5) of Section 15-165, and subsection
7(a-5) of Section 16-158 of this Code for that fiscal year. The
8transferred amount is intended to represent one-tenth of the
9annual savings to the State resulting from the enactment of
10this amendatory Act of the 98th General Assembly.
11    (c-10) In State fiscal year 2019, the State Comptroller
12shall order transferred and the State Treasurer shall transfer
13$364,000,000 from the General Revenue Fund to the Pension
14Stabilization Fund. In State fiscal year 2020 and each fiscal
15year thereafter until terminated under subsection (c-15), the
16State Comptroller shall order transferred and the State
17Treasurer shall transfer $1,000,000,000 from the General
18Revenue Fund to the Pension Stabilization Fund.
19    (c-15) The transfers made beginning in State fiscal year
202020 pursuant to subsection (c-10) of this Section shall
21terminate at the end of State fiscal year 2045 or when each of
22the designated retirement systems, as defined in Section 25,
23has achieved 100% funding, whichever occurs first.
24    (d) The Comptroller shall transfer 1/12 of the total amount
25to be transferred each fiscal year under this Section into the
26Pension Stabilization Fund on the first day of each month of

 

 

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1that fiscal year or as soon thereafter as possible; except that
2the final transfer of the fiscal year shall be made as soon as
3practical after the August 31 following the end of the fiscal
4year.
5    Until State fiscal year 2015, before Before the final
6transfer for a fiscal year is made, the Comptroller shall
7reconcile the estimated general funds revenues used in
8calculating the other transfers under this Section for that
9fiscal year with the actual general funds revenues for that
10fiscal year. The final transfer for the fiscal year shall be
11adjusted so that the total amount transferred under this
12Section for that fiscal year is equal to the percentage
13specified in subsection (b) or (c) of this Section, whichever
14is applicable, of the actual general funds revenues for that
15fiscal year. The actual general funds revenues for the fiscal
16year shall be calculated in a manner consistent with subsection
17(c) of Section 10 of this Act.
18(Source: P.A. 94-839, eff. 6-6-06.)
 
19    (30 ILCS 122/25)
20    Sec. 25. Transfers from the Pension Stabilization Fund.
21    (a) As used in this Section, "designated retirement
22systems" means:
23        (1) the State Employees' Retirement System of
24    Illinois;
25        (2) the Teachers' Retirement System of the State of

 

 

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1    Illinois;
2        (3) the State Universities Retirement System;
3        (4) the Judges Retirement System of Illinois; and
4        (5) the General Assembly Retirement System.
5    (b) As soon as may be practical after any money is
6deposited into the Pension Stabilization Fund, the State
7Comptroller shall apportion the deposited amount among the
8designated retirement systems and the State Comptroller and
9State Treasurer shall pay the apportioned amounts to the
10designated retirement systems. The amount deposited shall be
11apportioned among the designated retirement systems in the same
12proportion as their respective portions of the total actuarial
13reserve deficiency of the designated retirement systems, as
14most recently determined by the Governor's Office of Management
15and Budget. Amounts received by a designated retirement system
16under this Section shall be used for funding the unfunded
17liabilities of the retirement system. Payments under this
18Section are authorized by the continuing appropriation under
19Section 1.7 of the State Pension Funds Continuing Appropriation
20Act.
21    (c) At the request of the State Comptroller, the Governor's
22Office of Management and Budget shall determine the individual
23and total actuarial reserve deficiencies of the designated
24retirement systems. For this purpose, the Governor's Office of
25Management and Budget shall consider the latest available audit
26and actuarial reports of each of the retirement systems and the

 

 

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1relevant reports and statistics of the Public Pension Division
2of the Department of Insurance Financial and Professional
3Regulation.
4    (d) Payments to the designated retirement systems under
5this Section shall be in addition to, and not in lieu of, any
6State contributions required under Section 2-124, 14-131,
715-155, 16-158, or 18-131 of the Illinois Pension Code.
8    Payments to the designated retirement systems under this
9Section received after the effective date of this amendatory
10Act of the 98th General Assembly, and any investment earnings
11attributable to such payments, do not reduce and do not
12constitute payment of any portion of the required State
13contribution under Article 2, 14, 15, 16, or 18 of the Illinois
14Pension Code in the current fiscal year. Such amounts shall not
15reduce, and shall not be included in the calculation of, the
16required State contribution under Article 2, 14, 15, 16, or 18
17of the Illinois Pension Code in any future fiscal year, until
18the designated retirement system has reached the targeted
19funding ratio as prescribed by law for that retirement system.
20Such payments may be invested in the same manner as other
21assets of the designated retirement system and shall be used in
22the calculation of the system's funding ratio for the purposes
23of this Section and Section 20 of this Act. Payments under this
24Section may be used for any associated administrative costs.
25(Source: P.A. 94-839, eff. 6-6-06.)
 

 

 

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1    Section 15. The Illinois Pension Code is amended by
2changing Sections 1-103.3, 2-108, 2-108.1, 2-119, 2-119.1,
32-124, 2-125, 2-126, 2-134, 2-162, 7-109, 7-114, 7-116, 7-139,
49-219, 9-220, 14-103.10, 14-104.3, 14-106, 14-107, 14-108,
514-110, 14-114, 14-115, 14-131, 14-132, 14-133, 14-135.08,
614-152.1, 15-106, 15-107, 15-111, 15-112, 15-113.4, 15-125,
715-135, 15-136, 15-155, 15-156, 15-157, 15-165, 15-198,
816-106, 16-112, 16-121, 16-127, 16-132, 16-133, 16-133.1,
916-133.2, 16-136.1, 16-152, 16-158, 16-203, 17-116, 17-134,
1020-106, 20-121, 20-123, 20-124, and 20-125 and by adding
11Sections 2-105.1, 2-105.2, 2-126.5, 2-165, 2-166, 14-103.40,
1214-133.5, 14-155, 14-156, 15-157.5, 15-200, 15-201, 16-106.4,
1316-152.5, 16-158.2, 16-205, and 16-206 as follows:
 
14    (40 ILCS 5/1-103.3)
15    Sec. 1-103.3. Application of 1994 amendment; funding
16standard.
17    (a) The provisions of Public Act 88-593 this amendatory Act
18of 1994 that change the method of calculating, certifying, and
19paying the required State contributions to the retirement
20systems established under Articles 2, 14, 15, 16, and 18 shall
21first apply to the State contributions required for State
22fiscal year 1996.
23    (b) (Blank) The General Assembly declares that a funding
24ratio (the ratio of a retirement system's total assets to its
25total actuarial liabilities) of 90% is an appropriate goal for

 

 

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1State-funded retirement systems in Illinois, and it finds that
2a funding ratio of 90% is now the generally-recognized norm
3throughout the nation for public employee retirement systems
4that are considered to be financially secure and funded in an
5appropriate and responsible manner.
6    (c) Every 5 years, beginning in 1999, the Commission on
7Government Forecasting and Accountability, in consultation
8with the affected retirement systems and the Governor's Office
9of Management and Budget (formerly Bureau of the Budget), shall
10consider and determine whether the funding goals 90% funding
11ratio adopted in Articles 2, 14, 15, 16, and 18 of this Code
12continue subsection (b) continues to represent an appropriate
13funding goals goal for those State-funded retirement systems in
14Illinois, and it shall report its findings and recommendations
15on this subject to the Governor and the General Assembly.
16(Source: P.A. 93-1067, eff. 1-15-05.)
 
17    (40 ILCS 5/2-105.1 new)
18    Sec. 2-105.1. Tier 1 participant; Tier 2 participant.
19    "Tier 1 participant": A participant who first became a
20participant before January 1, 2011.
21    "Tier 2 participant": A participant who first became a
22participant on or after January 1, 2011.
 
23    (40 ILCS 5/2-105.2 new)
24    Sec. 2-105.2. Tier 1 retiree. "Tier 1 retiree" means a

 

 

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1former Tier 1 participant who has made the election to retire
2and has terminated service.
 
3    (40 ILCS 5/2-108)  (from Ch. 108 1/2, par. 2-108)
4    Sec. 2-108. Salary. "Salary": (1) For members of the
5General Assembly, the total compensation paid to the member by
6the State for one year of service, including the additional
7amounts, if any, paid to the member as an officer pursuant to
8Section 1 of "An Act in relation to the compensation and
9emoluments of the members of the General Assembly", approved
10December 6, 1907, as now or hereafter amended.
11    (2) For the State executive officers specified in Section
122-105, the total compensation paid to the member for one year
13of service.
14    (3) For members of the System who are participants under
15Section 2-117.1, or who are serving as Clerk or Assistant Clerk
16of the House of Representatives or Secretary or Assistant
17Secretary of the Senate, the total compensation paid to the
18member for one year of service, but not to exceed the salary of
19the highest salaried officer of the General Assembly.
20    However, in the event that federal law results in any
21participant receiving imputed income based on the value of
22group term life insurance provided by the State, such imputed
23income shall not be included in salary for the purposes of this
24Article.
25    Notwithstanding any other provision of this Code, the

 

 

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1annual salary of a Tier 1 participant for the purposes of this
2Code shall not exceed, for periods of service in a term of
3office beginning on or after the effective date of this
4amendatory Act of the 98th General Assembly, the greater of (i)
5the annual limitation determined from time to time under
6subsection (b-5) of Section 1-160 of this Code or (ii) the
7annualized salary of the participant on the last day of that
8participant's last term of office beginning before that
9effective date.
10(Source: P.A. 86-27; 86-273; 86-1028; 86-1488.)
 
11    (40 ILCS 5/2-108.1)  (from Ch. 108 1/2, par. 2-108.1)
12    Sec. 2-108.1. Highest salary for annuity purposes.
13    (a) "Highest salary for annuity purposes" means whichever
14of the following is applicable to the participant:
15    For a participant who first becomes a participant of this
16System before August 10, 2009 (the effective date of Public Act
1796-207):
18        (1) For a participant who is a member of the General
19    Assembly on his or her last day of service: the highest
20    salary that is prescribed by law, on the participant's last
21    day of service, for a member of the General Assembly who is
22    not an officer; plus, if the participant was elected or
23    appointed to serve as an officer of the General Assembly
24    for 2 or more years and has made contributions as required
25    under subsection (d) of Section 2-126, the highest

 

 

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1    additional amount of compensation prescribed by law, at the
2    time of the participant's service as an officer, for
3    members of the General Assembly who serve in that office.
4        (2) For a participant who holds one of the State
5    executive offices specified in Section 2-105 on his or her
6    last day of service: the highest salary prescribed by law
7    for service in that office on the participant's last day of
8    service.
9        (3) For a participant who is Clerk or Assistant Clerk
10    of the House of Representatives or Secretary or Assistant
11    Secretary of the Senate on his or her last day of service:
12    the salary received for service in that capacity on the
13    last day of service, but not to exceed the highest salary
14    (including additional compensation for service as an
15    officer) that is prescribed by law on the participant's
16    last day of service for the highest paid officer of the
17    General Assembly.
18        (4) For a participant who is a continuing participant
19    under Section 2-117.1 on his or her last day of service:
20    the salary received for service in that capacity on the
21    last day of service, but not to exceed the highest salary
22    (including additional compensation for service as an
23    officer) that is prescribed by law on the participant's
24    last day of service for the highest paid officer of the
25    General Assembly.
26    For a participant who first becomes a participant of this

 

 

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1System on or after August 10, 2009 (the effective date of
2Public Act 96-207) and before January 1, 2011 (the effective
3date of Public Act 96-889), the average monthly salary obtained
4by dividing the total salary of the participant during the
5period of: (1) the 48 consecutive months of service within the
6last 120 months of service in which the total compensation was
7the highest, or (2) the total period of service, if less than
848 months, by the number of months of service in that period.
9    Except as otherwise provided below, for a Tier 2 For a
10participant who first becomes a participant of this System on
11or after January 1, 2011 (the effective date of Public Act
1296-889), the average monthly salary obtained by dividing the
13total salary of the participant during the 96 consecutive
14months of service within the last 120 months of service in
15which the total compensation was the highest by the number of
16months of service in that period; however, for periods of
17service in a term of office beginning on or after January 1,
182011 and before the effective date of this amendatory Act of
19the 98th General Assembly, the highest salary for annuity
20purposes may not exceed $106,800, except that that amount shall
21annually thereafter be increased by the lesser of (i) 3% of
22that amount, including all previous adjustments, or (ii) 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. "Consumer price index-u"
26means the index published by the Bureau of Labor Statistics of

 

 

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1the United States Department of Labor that measures the average
2change in prices of goods and services purchased by all urban
3consumers, United States city average, all items, 1982-84 =
4100. The new amount resulting from each annual adjustment shall
5be determined by the Public Pension Division of the Department
6of Insurance and made available to the Board by November 1 of
7each year until there is no longer any such participant who is
8in service in a term of office that began before the effective
9date of this amendatory Act of the 98th General Assembly.
10    Notwithstanding any other provision of this Section, in
11determining the highest salary for annuity purposes of a Tier 2
12participant who is in service in a term of office beginning on
13or after the effective date of this amendatory Act of the 98th
14General Assembly, the Tier 2 participant's salary for periods
15of service in a term of office beginning on or after that
16effective date shall not exceed the limitation on salary
17determined from time to time under subsection (b-5) of Section
181-160 of this Code.
19    (b) The earnings limitations of subsection (a) apply to
20earnings under any other participating system under the
21Retirement Systems Reciprocal Act that are considered in
22calculating a proportional annuity under this Article, except
23in the case of a person who first became a member of this
24System before August 22, 1994 and has not, on or after the
25effective date of this amendatory Act of the 97th General
26Assembly, irrevocably elected to have those limitations apply.

 

 

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1The limitations of subsection (a) shall apply, however, to
2earnings under any other participating system under the
3Retirement Systems Reciprocal Act that are considered in
4calculating the proportional annuity of a person who first
5became a member of this System before August 22, 1994 if, on or
6after the effective date of this amendatory Act of the 97th
7General Assembly, that member irrevocably elects to have those
8limitations apply.
9    (c) In calculating the subsection (a) earnings limitation
10to be applied to earnings under any other participating system
11under the Retirement Systems Reciprocal Act for the purpose of
12calculating a proportional annuity under this Article, the
13participant's last day of service shall be deemed to mean the
14last day of service in any participating system from which the
15person has applied for a proportional annuity under the
16Retirement Systems Reciprocal Act.
17(Source: P.A. 96-207, eff. 8-10-09; 96-889, eff. 1-1-11;
1896-1490, eff. 1-1-11; 97-967, eff. 8-16-12.)
 
19    (40 ILCS 5/2-119)  (from Ch. 108 1/2, par. 2-119)
20    Sec. 2-119. Retirement annuity - conditions for
21eligibility.
22    (a) A participant whose service as a member is terminated,
23regardless of age or cause, is entitled to a retirement annuity
24beginning on the date specified by the participant in a written
25application subject to the following conditions:

 

 

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1        1. The date the annuity begins does not precede the
2    date of final termination of service, or is not more than
3    30 days before the receipt of the application by the board
4    in the case of annuities based on disability or one year
5    before the receipt of the application in the case of
6    annuities based on attained age;
7        2. The participant meets one of the following
8    eligibility requirements:
9        For a participant who first becomes a participant of
10    this System before January 1, 2011 (the effective date of
11    Public Act 96-889):
12            (A) He or she has attained age 55 and has at least
13        8 years of service credit;
14            (B) He or she has attained age 62 and terminated
15        service after July 1, 1971 with at least 4 years of
16        service credit; or
17            (C) He or she has completed 8 years of service and
18        has become permanently disabled and as a consequence,
19        is unable to perform the duties of his or her office.
20        For a participant who first becomes a participant of
21    this System on or after January 1, 2011 (the effective date
22    of Public Act 96-889), he or she has attained age 67 and
23    has at least 8 years of service credit.
24    (a-1) Notwithstanding subsection (a) of this Section, for a
25Tier 1 participant who begins receiving a retirement annuity
26under this Section on or after July 1, 2014, the required

 

 

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1retirement age under subsection (a) is increased as follows,
2based on the Tier 1 participant's age on June 1, 2014:
3        (1) If he or she is at least age 46 on June 1, 2014,
4    then the required retirement ages under subsection (a)
5    remain unchanged.
6        (2) If he or she is at least age 45 but less than age 46
7    on June 1, 2014, then the required retirement ages under
8    subsection (a) are increased by 4 months.
9        (3) If he or she is at least age 44 but less than age 45
10    on June 1, 2014, then the required retirement ages under
11    subsection (a) are increased by 8 months.
12        (4) If he or she is at least age 43 but less than age 44
13    on June 1, 2014, then the required retirement ages under
14    subsection (a) are increased by 12 months.
15        (5) If he or she is at least age 42 but less than age 43
16    on June 1, 2014, then the required retirement ages under
17    subsection (a) are increased by 16 months.
18        (6) If he or she is at least age 41 but less than age 42
19    on June 1, 2014, then the required retirement ages under
20    subsection (a) are increased by 20 months.
21        (7) If he or she is at least age 40 but less than age 41
22    on June 1, 2014, then the required retirement ages under
23    subsection (a) are increased by 24 months.
24        (8) If he or she is at least age 39 but less than age 40
25    on June 1, 2014, then the required retirement ages under
26    subsection (a) are increased by 28 months.

 

 

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1        (9) If he or she is at least age 38 but less than age 39
2    on June 1, 2014, then the required retirement ages under
3    subsection (a) are increased by 32 months.
4        (10) If he or she is at least age 37 but less than age
5    38 on June 1, 2014, then the required retirement ages under
6    subsection (a) are increased by 36 months.
7        (11) If he or she is at least age 36 but less than age
8    37 on June 1, 2014, then the required retirement ages under
9    subsection (a) are increased by 40 months.
10        (12) If he or she is at least age 35 but less than age
11    36 on June 1, 2014, then the required retirement ages under
12    subsection (a) are increased by 44 months.
13        (13) If he or she is at least age 34 but less than age
14    35 on June 1, 2014, then the required retirement ages under
15    subsection (a) are increased by 48 months.
16        (14) If he or she is at least age 33 but less than age
17    34 on June 1, 2014, then the required retirement ages under
18    subsection (a) are increased by 52 months.
19        (15) If he or she is at least age 32 but less than age
20    33 on June 1, 2014, then the required retirement ages under
21    subsection (a) are increased by 56 months.
22        (16) If he or she is less than age 32 on June 1, 2014,
23    then the required retirement ages under subsection (a) are
24    increased by 60 months.
25    Notwithstanding Section 1-103.1, this subsection (a-1)
26applies without regard to whether or not the Tier 1 participant

 

 

SB0001 Enrolled- 29 -LRB098 05457 JDS 35491 b

1is in active service under this Article on or after the
2effective date of this amendatory Act of the 98th General
3Assembly.
4    (a-5) A participant who first becomes a participant of this
5System on or after January 1, 2011 (the effective date of
6Public Act 96-889) who has attained age 62 and has at least 8
7years of service credit may elect to receive the lower
8retirement annuity provided in paragraph (c) of Section
92-119.01 of this Code.
10    (b) A participant shall be considered permanently disabled
11only if: (1) disability occurs while in service and is of such
12a nature as to prevent him or her from reasonably performing
13the duties of his or her office at the time; and (2) the board
14has received a written certificate by at least 2 licensed
15physicians appointed by the board stating that the member is
16disabled and that the disability is likely to be permanent.
17(Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11.)
 
18    (40 ILCS 5/2-119.1)  (from Ch. 108 1/2, par. 2-119.1)
19    Sec. 2-119.1. Automatic increase in retirement annuity.
20    (a) Except as otherwise provided in this Section, a A
21participant who retires after June 30, 1967, and who has not
22received an initial increase under this Section before the
23effective date of this amendatory Act of 1991, shall, in
24January or July next following the first anniversary of
25retirement, whichever occurs first, and in the same month of

 

 

SB0001 Enrolled- 30 -LRB098 05457 JDS 35491 b

1each year thereafter, but in no event prior to age 60, have the
2amount of the originally granted retirement annuity increased
3as follows: for each year through 1971, 1 1/2%; for each year
4from 1972 through 1979, 2%; and for 1980 and each year
5thereafter, 3%. Annuitants who have received an initial
6increase under this subsection prior to the effective date of
7this amendatory Act of 1991 shall continue to receive their
8annual increases in the same month as the initial increase.
9    (a-1) Notwithstanding subsection (a), but subject to the
10provisions of subsection (a-2), for a Tier 1 retiree, all
11automatic increases payable under subsection (a) on or after
12the effective date of this amendatory Act of the 98th General
13Assembly shall be calculated as 3% of the lesser of (1) the
14total annuity payable at the time of the increase, including
15previous increases granted, or (2) $1,000 multiplied by the
16number of years of creditable service upon which the annuity is
17based.
18    Beginning January 1, 2016, the $1,000 referred to in item
19(2) of this subsection (a-1) shall be increased on each January
201 by the annual unadjusted percentage increase (but not less
21than zero) in the consumer price index-u for the 12 months
22ending with the preceding September; these adjustments shall be
23cumulative and compounded. For the purposes of this subsection
24(a-1), "consumer price index-u" means the index published by
25the Bureau of Labor Statistics of the United States Department
26of Labor that measures the average change in prices of goods

 

 

SB0001 Enrolled- 31 -LRB098 05457 JDS 35491 b

1and services purchased by all urban consumers, United States
2city average, all items, 1982-84 = 100. The new dollar amount
3resulting from each annual adjustment shall be determined by
4the Public Pension Division of the Department of Insurance and
5made available to the System by November 1 of each year.
6    This subsection (a-1) is applicable without regard to
7whether the person is in service on or after the effective date
8of this amendatory Act of the 98th General Assembly.
9    (a-2) Notwithstanding subsections (a) and (a-1), for an
10active or inactive Tier 1 participant who has not begun to
11receive a retirement annuity under this Article before July 1,
122014:
13        (1) the second automatic annual increase payable under
14    subsection (a) shall be at the rate of 0% of the total
15    annuity payable at the time of the increase if he or she is
16    at least age 50 on the effective date of this amendatory
17    Act;
18        (2) the second, fourth, and sixth automatic annual
19    increases payable under subsection (a) shall be at the rate
20    of 0% of the total annuity payable at the time of the
21    increase if he or she is at least age 47 but less than age
22    50 on the effective date of this amendatory Act;
23        (3) the second, fourth, sixth, and eighth automatic
24    annual increases payable under subsection (a) shall be at
25    the rate of 0% of the total annuity payable at the time of
26    the increase if he or she is at least age 44 but less than

 

 

SB0001 Enrolled- 32 -LRB098 05457 JDS 35491 b

1    age 47 on the effective date of this amendatory Act; and
2        (4) the second, fourth, sixth, eighth, and tenth
3    automatic annual increases payable under subsection (a)
4    shall be at the rate of 0% of the total annuity payable at
5    the time of the increase if he or she is less than age 44 on
6    the effective date of this amendatory Act.
7    For the purposes of Section 1-103.1, this subsection (a-2)
8is applicable without regard to whether the person is in
9service on or after the effective date of this amendatory Act
10of the 98th General Assembly.
11    (b) Beginning January 1, 1990, for eligible participants
12who remain in service after attaining 20 years of creditable
13service, the 3% increases provided under subsection (a) shall
14begin to accrue on the January 1 next following the date upon
15which the participant (1) attains age 55, or (2) attains 20
16years of creditable service, whichever occurs later, and shall
17continue to accrue while the participant remains in service;
18such increases shall become payable on January 1 or July 1,
19whichever occurs first, next following the first anniversary of
20retirement. For any person who has service credit in the System
21for the entire period from January 15, 1969 through December
2231, 1992, regardless of the date of termination of service, the
23reference to age 55 in clause (1) of this subsection (b) shall
24be deemed to mean age 50. The increases accruing under this
25subsection (b) after the effective date of this amendatory Act
26of the 98th General Assembly shall accrue at the rate provided

 

 

SB0001 Enrolled- 33 -LRB098 05457 JDS 35491 b

1in subsection (a-1).
2    This subsection (b) does not apply to any person who first
3becomes a member of the System after the effective date of this
4amendatory Act of the 93rd General Assembly.
5    (b-5) Notwithstanding any other provision of this Section
6Article, a participant who first becomes a participant on or
7after January 1, 2011 (the effective date of Public Act 96-889)
8shall, in January or July next following the first anniversary
9of retirement, whichever occurs first, and in the same month of
10each year thereafter, but in no event prior to age 67, have the
11amount of the retirement annuity then being paid increased by
12an amount calculated as a percentage of the originally granted
13retirement annuity, equal to 3% or one-half of the annual
14unadjusted percentage increase (but not less than zero) in the
15Consumer Price Index for All Urban Consumers for the 12 months
16ending with the preceding September, as determined by the
17Public Pension Division of the Department of Insurance and
18reported to the System by November 1 of each year under
19subsection (a) of Section 2-108.1, whichever is less.
20    The changes made to this subsection (b-5) by this
21amendatory Act of the 98th General Assembly shall apply to
22increases provided under this subsection on or after the
23effective date of this amendatory Act without regard to whether
24service terminated before that effective date.
25    (c) The foregoing provisions relating to automatic
26increases are not applicable to a participant who retires

 

 

SB0001 Enrolled- 34 -LRB098 05457 JDS 35491 b

1before having made contributions (at the rate prescribed in
2Section 2-126) for automatic increases for less than the
3equivalent of one full year. However, in order to be eligible
4for the automatic increases, such a participant may make
5arrangements to pay to the system the amount required to bring
6the total contributions for the automatic increase to the
7equivalent of one year's contributions based upon his or her
8last salary.
9    (d) A participant who terminated service prior to July 1,
101967, with at least 14 years of service is entitled to an
11increase in retirement annuity beginning January, 1976, and to
12additional increases in January of each year thereafter.
13    The initial increase shall be 1 1/2% of the originally
14granted retirement annuity multiplied by the number of full
15years that the annuitant was in receipt of such annuity prior
16to January 1, 1972, plus 2% of the originally granted
17retirement annuity for each year after that date. The
18subsequent annual increases shall be at the rate of 2% of the
19originally granted retirement annuity for each year through
201979 and at the rate of 3% for 1980 and thereafter. The
21increases provided under this subsection (d) on or after the
22effective date of this amendatory Act of the 98th General
23Assembly shall be at the rate provided in subsection (a-1),
24notwithstanding that service terminated before that effective
25date.
26    (e) Except as may be provided in subsection (b-5),

 

 

SB0001 Enrolled- 35 -LRB098 05457 JDS 35491 b

1beginning Beginning January 1, 1990, all automatic annual
2increases payable under this Section shall be calculated as a
3percentage of the total annuity payable at the time of the
4increase, including previous increases granted under this
5Article.
6(Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11.)
 
7    (40 ILCS 5/2-124)  (from Ch. 108 1/2, par. 2-124)
8    Sec. 2-124. Contributions by State.
9    (a) The State shall make contributions to the System by
10appropriations of amounts which, together with the
11contributions of participants, interest earned on investments,
12and other income will meet the cost of maintaining and
13administering the System on a 100% 90% funded basis in
14accordance with actuarial recommendations by the end of State
15fiscal year 2044.
16    (b) The Board shall determine the amount of State
17contributions required for each fiscal year on the basis of the
18actuarial tables and other assumptions adopted by the Board and
19the prescribed rate of interest, using the formula in
20subsection (c).
21    (c) For State fiscal years 2015 through 2044, the minimum
22contribution to the System to be made by the State for each
23fiscal year shall be an amount determined by the System to be
24equal to the sum of (1) the State's portion of the projected
25normal cost for that fiscal year, plus (2) an amount sufficient

 

 

SB0001 Enrolled- 36 -LRB098 05457 JDS 35491 b

1to bring the total assets of the System up to 100% of the total
2actuarial liabilities of the System by the end of State fiscal
3year 2044. In making these determinations, the required State
4contribution shall be calculated each year as a level
5percentage of payroll over the years remaining to and including
6fiscal year 2044 and shall be determined under the projected
7unit cost method for fiscal year 2015 and under the entry age
8normal actuarial cost method for fiscal years 2016 through
92044.
10    For State fiscal years 2012 through 2014 2045, the minimum
11contribution to the System to be made by the State for each
12fiscal year shall be an amount determined by the System to be
13sufficient to bring the total assets of the System up to 90% of
14the total actuarial liabilities of the System by the end of
15State fiscal year 2045. In making these determinations, the
16required State contribution shall be calculated each year as a
17level percentage of payroll over the years remaining to and
18including fiscal year 2045 and shall be determined under the
19projected unit credit actuarial cost method.
20    For State fiscal years 1996 through 2005, the State
21contribution to the System, as a percentage of the applicable
22employee payroll, shall be increased in equal annual increments
23so that by State fiscal year 2011, the State is contributing at
24the rate required under this Section.
25    Notwithstanding any other provision of this Article, the
26total required State contribution for State fiscal year 2006 is

 

 

SB0001 Enrolled- 37 -LRB098 05457 JDS 35491 b

1$4,157,000.
2    Notwithstanding any other provision of this Article, the
3total required State contribution for State fiscal year 2007 is
4$5,220,300.
5    For each of State fiscal years 2008 through 2009, the State
6contribution to the System, as a percentage of the applicable
7employee payroll, shall be increased in equal annual increments
8from the required State contribution for State fiscal year
92007, so that by State fiscal year 2011, the State is
10contributing at the rate otherwise required under this Section.
11    Notwithstanding any other provision of this Article, the
12total required State contribution for State fiscal year 2010 is
13$10,454,000 and shall be made from the proceeds of bonds sold
14in fiscal year 2010 pursuant to Section 7.2 of the General
15Obligation Bond Act, less (i) the pro rata share of bond sale
16expenses determined by the System's share of total bond
17proceeds, (ii) any amounts received from the General Revenue
18Fund in fiscal year 2010, and (iii) any reduction in bond
19proceeds due to the issuance of discounted bonds, if
20applicable.
21    Notwithstanding any other provision of this Article, the
22total required State contribution for State fiscal year 2011 is
23the amount recertified by the System on or before April 1, 2011
24pursuant to Section 2-134 and shall be made from the proceeds
25of bonds sold in fiscal year 2011 pursuant to Section 7.2 of
26the General Obligation Bond Act, less (i) the pro rata share of

 

 

SB0001 Enrolled- 38 -LRB098 05457 JDS 35491 b

1bond sale expenses determined by the System's share of total
2bond proceeds, (ii) any amounts received from the General
3Revenue Fund in fiscal year 2011, and (iii) any reduction in
4bond proceeds due to the issuance of discounted bonds, if
5applicable.
6    Beginning in State fiscal year 2045, the minimum State
7contribution for each fiscal year shall be the amount needed to
8maintain the total assets of the System at 100% of the total
9actuarial liabilities of the System.
10    Beginning in State fiscal year 2046, the minimum State
11contribution for each fiscal year shall be the amount needed to
12maintain the total assets of the System at 90% of the total
13actuarial liabilities of the System.
14    Amounts received by the System pursuant to Section 25 of
15the Budget Stabilization Act or Section 8.12 of the State
16Finance Act in any fiscal year do not reduce and do not
17constitute payment of any portion of the minimum State
18contribution required under this Article in that fiscal year.
19Such amounts shall not reduce, and shall not be included in the
20calculation of, the required State contributions under this
21Article in any future year until the System has reached a
22funding ratio of at least 100% 90%. A reference in this Article
23to the "required State contribution" or any substantially
24similar term does not include or apply to any amounts payable
25to the System under Section 25 of the Budget Stabilization Act.
26    Notwithstanding any other provision of this Section, the

 

 

SB0001 Enrolled- 39 -LRB098 05457 JDS 35491 b

1required State contribution for State fiscal year 2005 and for
2fiscal year 2008 and each fiscal year thereafter through State
3fiscal year 2014, as calculated under this Section and
4certified under Section 2-134, shall not exceed an amount equal
5to (i) the amount of the required State contribution that would
6have been calculated under this Section for that fiscal year if
7the System had not received any payments under subsection (d)
8of Section 7.2 of the General Obligation Bond Act, minus (ii)
9the portion of the State's total debt service payments for that
10fiscal year on the bonds issued in fiscal year 2003 for the
11purposes of that Section 7.2, as determined and certified by
12the Comptroller, that is the same as the System's portion of
13the total moneys distributed under subsection (d) of Section
147.2 of the General Obligation Bond Act. In determining this
15maximum for State fiscal years 2008 through 2010, however, the
16amount referred to in item (i) shall be increased, as a
17percentage of the applicable employee payroll, in equal
18increments calculated from the sum of the required State
19contribution for State fiscal year 2007 plus the applicable
20portion of the State's total debt service payments for fiscal
21year 2007 on the bonds issued in fiscal year 2003 for the
22purposes of Section 7.2 of the General Obligation Bond Act, so
23that, by State fiscal year 2011, the State is contributing at
24the rate otherwise required under this Section.
25    (d) For purposes of determining the required State
26contribution to the System, the value of the System's assets

 

 

SB0001 Enrolled- 40 -LRB098 05457 JDS 35491 b

1shall be equal to the actuarial value of the System's assets,
2which shall be calculated as follows:
3    As of June 30, 2008, the actuarial value of the System's
4assets shall be equal to the market value of the assets as of
5that date. In determining the actuarial value of the System's
6assets for fiscal years after June 30, 2008, any actuarial
7gains or losses from investment return incurred in a fiscal
8year shall be recognized in equal annual amounts over the
95-year period following that fiscal year.
10    (e) For purposes of determining the required State
11contribution to the system for a particular year, the actuarial
12value of assets shall be assumed to earn a rate of return equal
13to the system's actuarially assumed rate of return.
14(Source: P.A. 96-43, eff. 7-15-09; 96-1497, eff. 1-14-11;
1596-1511, eff. 1-27-11; 96-1554, eff. 3-18-11; 97-813, eff.
167-13-12.)
 
17    (40 ILCS 5/2-125)  (from Ch. 108 1/2, par. 2-125)
18    Sec. 2-125. Obligations of State; funding guarantee.
19    (a) The payment of (1) the required State contributions,
20(2) all benefits granted under this system and (3) all expenses
21of administration and operation are obligations of the State to
22the extent specified in this Article.
23    (b) All income, interest and dividends derived from
24deposits and investments shall be credited to the account of
25the system in the State Treasury and used to pay benefits under

 

 

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1this Article.
2    (c) Beginning July 1, 2014, the State shall be obligated to
3contribute to the System in each State fiscal year an amount
4not less than the sum of (i) the State's normal cost for the
5year and (ii) the portion of the unfunded accrued liability
6assigned to that year by law. Notwithstanding any other
7provision of law, if the State fails to pay an amount required
8under this subsection, it shall be the obligation of the Board
9to seek payment of the required amount in compliance with the
10provisions of this Section and, if the amount remains unpaid,
11to bring a mandamus action in the Supreme Court of Illinois to
12compel the State to make the required payment.
13    If the System submits a voucher for contributions required
14under Section 2-124 and the State fails to pay that voucher
15within 90 days of its receipt, the Board shall submit a written
16request to the Comptroller seeking payment. A copy of the
17request shall be filed with the Secretary of State, and the
18Secretary of State shall provide a copy to the Governor and
19General Assembly. No earlier than the 16th day after the System
20files the request with the Comptroller and Secretary of State,
21if the amount remains unpaid the Board shall commence a
22mandamus action in the Supreme Court of Illinois to compel the
23Comptroller to satisfy the voucher.
24    This subsection (c) constitutes an express waiver of the
25State's sovereign immunity solely to the extent that it permits
26the Board to commence a mandamus action in the Supreme Court of

 

 

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1Illinois to compel the Comptroller to pay a voucher for the
2contributions required under Section 2-124.
3    (d) Beginning in State fiscal year 2016, the State shall be
4obligated to make the transfers set forth in subsections (c-5)
5and (c-10) of Section 20 of the Budget Stabilization Act and to
6pay to the System its proportionate share of the transferred
7amounts in accordance with Section 25 of the Budget
8Stabilization Act. Notwithstanding any other provision of law,
9if the State fails to transfer an amount required under this
10subsection or to pay to the System its proportionate share of
11the transferred amount in accordance with Section 25 of the
12Budget Stabilization Act, it shall be the obligation of the
13Board to seek transfer or payment of the required amount in
14compliance with the provisions of this Section and, if the
15required amount remains untransferred or the required payment
16remains unpaid, to bring a mandamus action in the Supreme Court
17of Illinois to compel the State to make the required transfer
18or payment or both, as the case may be.
19    If the State fails to make a transfer required under
20subsection (c-5) or (c-10) of Section 20 of the Budget
21Stabilization Act or a payment to the System required under
22Section 25 of that Act, the Board shall submit a written
23request to the Comptroller seeking payment. A copy of the
24request shall be filed with the Secretary of State, and the
25Secretary of State shall provide a copy to the Governor and
26General Assembly. No earlier than the 16th day after the System

 

 

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1files the request with the Comptroller and Secretary of State,
2if the required amount remains untransferred or the required
3payment remains unpaid, the Board shall commence a mandamus
4action in the Supreme Court of Illinois to compel the
5Comptroller to make the required transfer or payment or both,
6as the case may be.
7    This subsection (d) constitutes an express waiver of the
8State's sovereign immunity solely to the extent that it permits
9the Board to commence a mandamus action in the Supreme Court of
10Illinois to compel the Comptroller to make a transfer required
11under subsection (c-5) or (c-10) of Section 20 of the Budget
12Stabilization Act and to pay to the System its proportionate
13share of the transferred amount in accordance with Section 25
14of the Budget Stabilization Act.
15    The obligations created by this subsection (d) expire when
16all of the requirements of subsections (c-5) and (c-10) of
17Section 20 of the Budget Stabilization Act and Section 25 of
18the Budget Stabilization Act have been met.
19    (e) Any payments and transfers required to be made by the
20State pursuant to subsection (c) or (d) are expressly
21subordinate to the payment of the principal, interest, and
22premium, if any, on any bonded debt obligation of the State or
23any other State-created entity, either currently outstanding
24or to be issued, for which the source of repayment or security
25thereon is derived directly or indirectly from tax revenues
26collected by the State or any other State-created entity.

 

 

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1Payments on such bonded obligations include any statutory fund
2transfers or other prefunding mechanisms or formulas set forth,
3now or hereafter, in State law or bond indentures, into debt
4service funds or accounts of the State related to such bond
5obligations, consistent with the payment schedules associated
6with such obligations.
7(Source: P.A. 83-1440.)
 
8    (40 ILCS 5/2-126)  (from Ch. 108 1/2, par. 2-126)
9    Sec. 2-126. Contributions by participants.
10    (a) Each participant shall contribute toward the cost of
11his or her retirement annuity a percentage of each payment of
12salary received by him or her for service as a member as
13follows: for service between October 31, 1947 and January 1,
141959, 5%; for service between January 1, 1959 and June 30,
151969, 6%; for service between July 1, 1969 and January 10,
161973, 6 1/2%; for service after January 10, 1973, 7%; for
17service after December 31, 1981, 8 1/2%.
18    (b) Beginning August 2, 1949, each male participant, and
19from July 1, 1971, each female participant shall contribute
20towards the cost of the survivor's annuity 2% of salary.
21    A participant who has no eligible survivor's annuity
22beneficiary may elect to cease making contributions for
23survivor's annuity under this subsection. A survivor's annuity
24shall not be payable upon the death of a person who has made
25this election, unless prior to that death the election has been

 

 

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1revoked and the amount of the contributions that would have
2been paid under this subsection in the absence of the election
3is paid to the System, together with interest at the rate of 4%
4per year from the date the contributions would have been made
5to the date of payment.
6    (c) Beginning July 1, 1967 and, in the case of Tier 1
7participants, ending on June 30, 2014, each participant shall
8contribute 1% of salary towards the cost of automatic increase
9in annuity provided in Section 2-119.1. These contributions
10shall be made concurrently with contributions for retirement
11annuity purposes.
12    (d) In addition, each participant serving as an officer of
13the General Assembly shall contribute, for the same purposes
14and at the same rates as are required of a regular participant,
15on each additional payment received as an officer. If the
16participant serves as an officer for at least 2 but less than 4
17years, he or she shall contribute an amount equal to the amount
18that would have been contributed had the participant served as
19an officer for 4 years. Persons who serve as officers in the
2087th General Assembly but cannot receive the additional payment
21to officers because of the ban on increases in salary during
22their terms may nonetheless make contributions based on those
23additional payments for the purpose of having the additional
24payments included in their highest salary for annuity purposes;
25however, persons electing to make these additional
26contributions must also pay an amount representing the

 

 

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1corresponding employer contributions, as calculated by the
2System.
3    (e) Notwithstanding any other provision of this Article,
4the required contribution of a participant who first becomes a
5participant on or after January 1, 2011 shall not exceed the
6contribution that would be due under this Article if that
7participant's highest salary for annuity purposes were
8$106,800, plus any increases in that amount under Section
92-108.1.
10(Source: P.A. 96-1490, eff. 1-1-11.)
 
11    (40 ILCS 5/2-126.5 new)
12    Sec. 2-126.5. Use of contributions for health care
13subsidies. The System shall not use any contribution received
14by the System under this Article to provide a subsidy for the
15cost of participation in a retiree health care program.
 
16    (40 ILCS 5/2-134)   (from Ch. 108 1/2, par. 2-134)
17    Sec. 2-134. To certify required State contributions and
18submit vouchers.
19    (a) The Board shall certify to the Governor on or before
20December 15 of each year until December 15, 2011 the amount of
21the required State contribution to the System for the next
22fiscal year and shall specifically identify the System's
23projected State normal cost for that fiscal year. The
24certification shall include a copy of the actuarial

 

 

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1recommendations upon which it is based and shall specifically
2identify the System's projected State normal cost for that
3fiscal year.
4    On or before November 1 of each year, beginning November 1,
52012, the Board shall submit to the State Actuary, the
6Governor, and the General Assembly a proposed certification of
7the amount of the required State contribution to the System for
8the 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. On or before
16January 15, 2013 and every January 15 thereafter, the Board
17shall certify to the Governor and the General Assembly the
18amount of the required State contribution for the next fiscal
19year. The Board's certification must note any deviations from
20the State Actuary's recommended changes, the reason or reasons
21for not following the State Actuary's recommended changes, and
22the fiscal impact of not following the State Actuary's
23recommended changes on the required State contribution.
24    On or before May 1, 2004, the Board shall recalculate and
25recertify to the Governor the amount of the required State
26contribution to the System for State fiscal year 2005, taking

 

 

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1into account the amounts appropriated to and received by the
2System under subsection (d) of Section 7.2 of the General
3Obligation Bond Act.
4    On or before July 1, 2005, the Board shall recalculate and
5recertify to the Governor the amount of the required State
6contribution to the System for State fiscal year 2006, taking
7into account the changes in required State contributions made
8by this amendatory Act of the 94th General Assembly.
9    On or before April 1, 2011, the Board shall recalculate and
10recertify to the Governor the amount of the required State
11contribution to the System for State fiscal year 2011, applying
12the changes made by Public Act 96-889 to the System's assets
13and liabilities as of June 30, 2009 as though Public Act 96-889
14was approved on that date.
15    (a-5) For purposes of Section (c-5) of Section 20 of the
16Budget Stabilization Act, on or before November 1 of each year
17beginning November 1, 2014, the Board shall determine the
18amount of the State contribution to the System that would have
19been required for the next fiscal year if this amendatory Act
20of the 98th General Assembly had not taken effect, using the
21best and most recent available data but based on the law in
22effect on May 31, 2014. The Board shall submit to the State
23Actuary, the Governor, and the General Assembly a proposed
24certification, along with the relevant law, actuarial
25assumptions, calculations, and data upon which that
26certification is based. On or before January 1, 2015 and every

 

 

SB0001 Enrolled- 49 -LRB098 05457 JDS 35491 b

1January 1 thereafter, the State Actuary shall issue a
2preliminary report concerning the proposed certification and
3identifying, if necessary, recommended changes in actuarial
4assumptions that the Board must consider before finalizing its
5certification. On or before January 15, 2015 and every January
61 thereafter, the Board shall certify to the Governor and the
7General Assembly the amount of the State contribution to the
8System that would have been required for the next fiscal year
9if this amendatory Act of the 98th General Assembly had not
10taken effect, using the best and most recent available data but
11based on the law in effect on May 31, 2014. The Board's
12certification must note any deviations from the State Actuary's
13recommended changes, the reason or reasons for not following
14the State Actuary's recommended changes, and the impact of not
15following the State Actuary's recommended changes.
16    (b) Beginning in State fiscal year 1996, on or as soon as
17possible after the 15th day of each month the Board shall
18submit vouchers for payment of State contributions to the
19System, in a total monthly amount of one-twelfth of the
20required annual State contribution certified under subsection
21(a). From the effective date of this amendatory Act of the 93rd
22General Assembly through June 30, 2004, the Board shall not
23submit vouchers for the remainder of fiscal year 2004 in excess
24of the fiscal year 2004 certified contribution amount
25determined under this Section after taking into consideration
26the transfer to the System under subsection (d) of Section

 

 

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16z-61 of the State Finance Act. These vouchers shall be paid by
2the State Comptroller and Treasurer by warrants drawn on the
3funds appropriated to the System for that fiscal year. If in
4any month the amount remaining unexpended from all other
5appropriations to the System for the applicable fiscal year
6(including the appropriations to the System under Section 8.12
7of the State Finance Act and Section 1 of the State Pension
8Funds Continuing Appropriation Act) is less than the amount
9lawfully vouchered under this Section, the difference shall be
10paid from the General Revenue Fund under the continuing
11appropriation authority provided in Section 1.1 of the State
12Pension Funds Continuing Appropriation Act.
13    (c) The full amount of any annual appropriation for the
14System for State fiscal year 1995 shall be transferred and made
15available to the System at the beginning of that fiscal year at
16the request of the Board. Any excess funds remaining at the end
17of any fiscal year from appropriations shall be retained by the
18System as a general reserve to meet the System's accrued
19liabilities.
20(Source: P.A. 96-1497, eff. 1-14-11; 96-1511, eff. 1-27-11;
2197-694, eff. 6-18-12.)
 
22    (40 ILCS 5/2-162)
23    Sec. 2-162. Application and expiration of new benefit
24increases.
25    (a) As used in this Section, "new benefit increase" means

 

 

SB0001 Enrolled- 51 -LRB098 05457 JDS 35491 b

1an increase in the amount of any benefit provided under this
2Article, or an expansion of the conditions of eligibility for
3any benefit under this Article, that results from an amendment
4to this Code that takes effect after the effective date of this
5amendatory Act of the 94th General Assembly. "New benefit
6increase", however, does not include any benefit increase
7resulting from the changes made to this Article by this
8amendatory Act of the 98th General Assembly.
9    (b) Notwithstanding any other provision of this Code or any
10subsequent amendment to this Code, every new benefit increase
11is subject to this Section and shall be deemed to be granted
12only in conformance with and contingent upon compliance with
13the provisions of this Section.
14    (c) The Public Act enacting a new benefit increase must
15identify and provide for payment to the System of additional
16funding at least sufficient to fund the resulting annual
17increase in cost to the System as it accrues.
18    Every new benefit increase is contingent upon the General
19Assembly providing the additional funding required under this
20subsection. The Commission on Government Forecasting and
21Accountability shall analyze whether adequate additional
22funding has been provided for the new benefit increase and
23shall report its analysis to the Public Pension Division of the
24Department of Insurance Financial and Professional Regulation.
25A new benefit increase created by a Public Act that does not
26include the additional funding required under this subsection

 

 

SB0001 Enrolled- 52 -LRB098 05457 JDS 35491 b

1is null and void. If the Public Pension Division determines
2that the additional funding provided for a new benefit increase
3under this subsection is or has become inadequate, it may so
4certify to the Governor and the State Comptroller and, in the
5absence of corrective action by the General Assembly, the new
6benefit increase shall expire at the end of the fiscal year in
7which the certification is made.
8    (d) Every new benefit increase shall expire 5 years after
9its effective date or on such earlier date as may be specified
10in the language enacting the new benefit increase or provided
11under subsection (c). This does not prevent the General
12Assembly from extending or re-creating a new benefit increase
13by law.
14    (e) Except as otherwise provided in the language creating
15the new benefit increase, a new benefit increase that expires
16under this Section continues to apply to persons who applied
17and qualified for the affected benefit while the new benefit
18increase was in effect and to the affected beneficiaries and
19alternate payees of such persons, but does not apply to any
20other person, including without limitation a person who
21continues in service after the expiration date and did not
22apply and qualify for the affected benefit while the new
23benefit increase was in effect.
24(Source: P.A. 94-4, eff. 6-1-05.)
 
25    (40 ILCS 5/2-165 new)

 

 

SB0001 Enrolled- 53 -LRB098 05457 JDS 35491 b

1    Sec. 2-165. Defined contribution plan.
2    (a) By July 1, 2015, the System shall prepare and implement
3a voluntary defined contribution plan for up to 5% of eligible
4active Tier 1 participants. The System shall determine the 5%
5cap by the number of active Tier 1 participants on the
6effective date of this Section. The defined contribution plan
7developed under this Section shall be a plan that aggregates
8employer and employee contributions in individual participant
9accounts which, after meeting any other requirements, are used
10for payouts after retirement in accordance with this Section
11and any other applicable laws.
12    As used in this Section, "defined benefit plan" means the
13retirement plan available under this Article to Tier 1
14participants who have not made the election authorized under
15this Section.
16        (1) Under the defined contribution plan, an active Tier
17    1 participant of this System could elect to cease accruing
18    benefits in the defined benefit plan under this Article and
19    begin accruing benefits for future service in the defined
20    contribution plan. Service credit under the defined
21    contribution plan may be used for determining retirement
22    eligibility under the defined benefit plan.
23        (2) Participants in the defined contribution plan
24    shall pay employee contributions at the same rate as Tier 1
25    participants in this System who do not participate in the
26    defined contribution plan.

 

 

SB0001 Enrolled- 54 -LRB098 05457 JDS 35491 b

1        (3) State contributions shall be paid into the accounts
2    of all participants in the defined contribution plan at a
3    uniform rate, expressed as a percentage of compensation and
4    determined for each year. This rate shall be no higher than
5    the employer's normal cost for Tier 1 participants in the
6    defined benefit plan for that year, as determined by the
7    System and expressed as a percentage of compensation, and
8    shall be no lower than 3% of compensation. The State shall
9    adjust this rate annually.
10        (4) The defined contribution plan shall require 5 years
11    of participation in the defined contribution plan before
12    vesting in State contributions. If the participant fails to
13    vest in them, the State contributions, and the earnings
14    thereon, shall be forfeited.
15        (5) The defined contribution plan may provide for
16    participants in the plan to be eligible for defined
17    disability benefits. If it does, the System shall reduce
18    the employee contributions credited to the participant's
19    defined contribution plan account by an amount determined
20    by the System to cover the cost of offering such benefits.
21        (6) The defined contribution plan shall provide a
22    variety of options for investments. These options shall
23    include investments handled by the Illinois State Board of
24    Investment as well as private sector investment options.
25        (7) The defined contribution plan shall provide a
26    variety of options for payouts to retirees and their

 

 

SB0001 Enrolled- 55 -LRB098 05457 JDS 35491 b

1    survivors.
2        (8) To the extent authorized under federal law and as
3    authorized by the System, the plan shall allow former
4    participants in the plan to transfer or roll over employee
5    and vested State contributions, and the earnings thereon,
6    into other qualified retirement plans.
7        (9) The System shall reduce the employee contributions
8    credited to the participant's defined contribution plan
9    account by an amount determined by the System to cover the
10    cost of offering these benefits and any applicable
11    administrative fees.
12    (b) Only persons who are active Tier 1 participants of the
13System on the effective date of this Section are eligible to
14participate in the defined contribution plan. Participation in
15the defined contribution plan shall be limited to the first 5%
16of eligible persons who elect to participate. The election to
17participate in the defined contribution plan is voluntary and
18irrevocable.
19    (c) An eligible active Tier 1 participant may irrevocably
20elect to participate in the defined contribution plan by filing
21with the System a written application to participate that is
22received by the System prior to its determination that 5% of
23eligible persons have elected to participate in the defined
24contribution plan.
25    When the System first determines that 5% of eligible
26persons have elected to participate in the defined contribution

 

 

SB0001 Enrolled- 56 -LRB098 05457 JDS 35491 b

1plan, the System shall provide notice to previously eligible
2employees that the plan is no longer available and shall cease
3accepting applications to participate.
4    (d) The System shall make a good faith effort to contact
5each active Tier 1 participant who is eligible to participate
6in the defined contribution plan. The System shall mail
7information describing the option to join the defined
8contribution plan to each of these employees to his or her last
9known address on file with the System. If the employee is not
10responsive to other means of contact, it is sufficient for the
11System to publish the details of the option on its website.
12    Upon request for further information describing the
13option, the System shall provide employees with information
14from the System before exercising the option to join the plan,
15including information on the impact to their vested benefits or
16non-vested service. The individual consultation shall include
17projections of the participant's defined benefits at
18retirement or earlier termination of service and the value of
19the participant's account at retirement or earlier termination
20of service. The System shall not provide advice or counseling
21with respect to whether the employee should exercise the
22option. The System shall inform Tier 1 participants who are
23eligible to participate in the defined contribution plan that
24they may also wish to obtain information and counsel relating
25to their option from any other available source, including but
26not limited to labor organizations, private counsel, and

 

 

SB0001 Enrolled- 57 -LRB098 05457 JDS 35491 b

1financial advisors.
2    (e) In no event shall the System, its staff, its authorized
3representatives, or the Board be liable for any information
4given to an employee under this Section. The System may
5coordinate with the Illinois Department of Central Management
6Services and other retirement systems administering a defined
7contribution plan in accordance with this amendatory Act of the
898th General Assembly to provide information concerning the
9impact of the option set forth in this Section.
10    (f) Notwithstanding any other provision of this Section, no
11person shall begin participating in the defined contribution
12plan until it has attained qualified plan status and received
13all necessary approvals from the U.S. Internal Revenue Service.
14    (g) The System shall report on its progress under this
15Section, including the available details of the defined
16contribution plan and the System's plans for informing eligible
17Tier 1 participants about the plan, to the Governor and the
18General Assembly on or before January 15, 2015.
19    (h) The Illinois State Board of Investments shall be the
20plan sponsor for the defined contribution plan established
21under this Section.
22    (i) The intent of this amendatory Act of the 98th General
23Assembly is to ensure that the State's normal cost of
24participation in the defined contribution plan is similar, and
25if possible equal, to the State's normal cost of participation
26in the defined benefit plan, unless a lower State's normal cost

 

 

SB0001 Enrolled- 58 -LRB098 05457 JDS 35491 b

1is necessary to ensure cost neutrality.
 
2    (40 ILCS 5/2-166 new)
3    Sec. 2-166. Defined contribution plan; termination. If the
4defined contribution plan is terminated or becomes inoperative
5pursuant to law, then each participant in the plan shall
6automatically be deemed to have been a contributing Tier 1
7participant in the System's defined benefit plan during the
8time in which he or she participated in the defined
9contribution plan, and for that purpose the System shall be
10entitled to recover the amounts in the participant's defined
11contribution accounts.
 
12    (40 ILCS 5/7-109)  (from Ch. 108 1/2, par. 7-109)
13    Sec. 7-109. Employee.
14    (1) "Employee" means any person who:
15        (a) 1. Receives earnings as payment for the performance
16        of personal services or official duties out of the
17        general fund of a municipality, or out of any special
18        fund or funds controlled by a municipality, or by an
19        instrumentality thereof, or a participating
20        instrumentality, including, in counties, the fees or
21        earnings of any county fee office; and
22            2. Under the usual common law rules applicable in
23        determining the employer-employee relationship, has
24        the status of an employee with a municipality, or any

 

 

SB0001 Enrolled- 59 -LRB098 05457 JDS 35491 b

1        instrumentality thereof, or a participating
2        instrumentality, including aldermen, county
3        supervisors and other persons (excepting those
4        employed as independent contractors) who are paid
5        compensation, fees, allowances or other emolument for
6        official duties, and, in counties, the several county
7        fee offices.
8        (b) Serves as a township treasurer appointed under the
9    School Code, as heretofore or hereafter amended, and who
10    receives for such services regular compensation as
11    distinguished from per diem compensation, and any regular
12    employee in the office of any township treasurer whether or
13    not his earnings are paid from the income of the permanent
14    township fund or from funds subject to distribution to the
15    several school districts and parts of school districts as
16    provided in the School Code, or from both such sources; or
17    is the chief executive officer, chief educational officer,
18    chief fiscal officer, or other employee of a Financial
19    Oversight Panel established pursuant to Article 1H of the
20    School Code, other than a superintendent or certified
21    school business official, except that such person shall not
22    be treated as an employee under this Section if that person
23    has negotiated with the Financial Oversight Panel, in
24    conjunction with the school district, a contractual
25    agreement for exclusion from this Section.
26        (c) Holds an elective office in a municipality,

 

 

SB0001 Enrolled- 60 -LRB098 05457 JDS 35491 b

1    instrumentality thereof or participating instrumentality.
2    (2) "Employee" does not include persons who:
3        (a) Are eligible for inclusion under any of the
4    following laws:
5            1. "An Act in relation to an Illinois State
6        Teachers' Pension and Retirement Fund", approved May
7        27, 1915, as amended;
8            2. Articles 15 and 16 of this Code.
9        However, such persons shall be included as employees to
10    the extent of earnings that are not eligible for inclusion
11    under the foregoing laws for services not of an
12    instructional nature of any kind.
13        However, any member of the armed forces who is employed
14    as a teacher of subjects in the Reserve Officers Training
15    Corps of any school and who is not certified under the law
16    governing the certification of teachers shall be included
17    as an employee.
18        (b) Are designated by the governing body of a
19    municipality in which a pension fund is required by law to
20    be established for policemen or firemen, respectively, as
21    performing police or fire protection duties, except that
22    when such persons are the heads of the police or fire
23    department and are not eligible to be included within any
24    such pension fund, they shall be included within this
25    Article; provided, that such persons shall not be excluded
26    to the extent of concurrent service and earnings not

 

 

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1    designated as being for police or fire protection duties.
2    However, (i) any head of a police department who was a
3    participant under this Article immediately before October
4    1, 1977 and did not elect, under Section 3-109 of this Act,
5    to participate in a police pension fund shall be an
6    "employee", and (ii) any chief of police who elects to
7    participate in this Fund under Section 3-109.1 of this
8    Code, regardless of whether such person continues to be
9    employed as chief of police or is employed in some other
10    rank or capacity within the police department, shall be an
11    employee under this Article for so long as such person is
12    employed to perform police duties by a participating
13    municipality and has not lawfully rescinded that election.
14        (c) After August 26, 2011 (the effective date of Public
15    Act 97-609), are contributors to or eligible to contribute
16    to a Taft-Hartley pension plan established on or before
17    June 1, 2011 and are employees of a theatre, arena, or
18    convention center that is located in a municipality located
19    in a county with a population greater than 5,000,000, and
20    to which the participating municipality is required to
21    contribute as the person's employer based on earnings from
22    the municipality. Nothing in this paragraph shall affect
23    service credit or creditable service for any period of
24    service prior to August 26, 2011, and this paragraph shall
25    not apply to individuals who are participating in the Fund
26    prior to August 26, 2011.

 

 

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1        (d) Become an employee of any of the following
2    participating instrumentalities on or after the effective
3    date of this amendatory Act of the 98th General Assembly:
4    the Illinois Municipal League; the Illinois Association of
5    Park Districts; the Illinois Supervisors, County
6    Commissioners and Superintendents of Highways Association;
7    an association, or not-for-profit corporation, membership
8    in which is authorized under Section 85-15 of the Township
9    Code; the United Counties Council; or the Will County
10    Governmental League.
11    (3) All persons, including, without limitation, public
12defenders and probation officers, who receive earnings from
13general or special funds of a county for performance of
14personal services or official duties within the territorial
15limits of the county, are employees of the county (unless
16excluded by subsection (2) of this Section) notwithstanding
17that they may be appointed by and are subject to the direction
18of a person or persons other than a county board or a county
19officer. It is hereby established that an employer-employee
20relationship under the usual common law rules exists between
21such employees and the county paying their salaries by reason
22of the fact that the county boards fix their rates of
23compensation, appropriate funds for payment of their earnings
24and otherwise exercise control over them. This finding and this
25amendatory Act shall apply to all such employees from the date
26of appointment whether such date is prior to or after the

 

 

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1effective date of this amendatory Act and is intended to
2clarify existing law pertaining to their status as
3participating employees in the Fund.
4(Source: P.A. 97-429, eff. 8-16-11; 97-609, eff. 8-26-11;
597-813, eff. 7-13-12.)
 
6    (40 ILCS 5/7-114)  (from Ch. 108 1/2, par. 7-114)
7    Sec. 7-114. Earnings. "Earnings":
8    (a) An amount to be determined by the board, equal to the
9sum of:
10        1. The total amount of money paid to an employee for
11    personal services or official duties as an employee (except
12    those employed as independent contractors) paid out of the
13    general fund, or out of any special funds controlled by the
14    municipality, or by any instrumentality thereof, or
15    participating instrumentality, including compensation,
16    fees, allowances, or other emolument paid for official
17    duties (but not including automobile maintenance, travel
18    expense, or reimbursements for expenditures incurred in
19    the performance of duties or, in the case of a person who
20    first becomes a participant on or after the effective date
21    of this amendatory Act of the 98th General Assembly,
22    payments for unused sick or vacation time) and, for fee
23    offices, the fees or earnings of the offices to the extent
24    such fees are paid out of funds controlled by the
25    municipality, or instrumentality or participating

 

 

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1    instrumentality; and
2        2. The money value, as determined by rules prescribed
3    by the governing body of the municipality, or
4    instrumentality thereof, of any board, lodging, fuel,
5    laundry, and other allowances provided an employee in lieu
6    of money.
7    (b) For purposes of determining benefits payable under this
8fund payments to a person who is engaged in an independently
9established trade, occupation, profession or business and who
10is paid for his service on a basis other than a monthly or
11other regular salary, are not earnings.
12    (c) If a disabled participating employee is eligible to
13receive Workers' Compensation for an accidental injury and the
14participating municipality or instrumentality which employed
15the participating employee when injured continues to pay the
16participating employee regular salary or other compensation or
17pays the employee an amount in excess of the Workers'
18Compensation amount, then earnings shall be deemed to be the
19total payments, including an amount equal to the Workers'
20Compensation payments. These payments shall be subject to
21employee contributions and allocated as if paid to the
22participating employee when the regular payroll amounts would
23have been paid if the participating employee had continued
24working, and creditable service shall be awarded for this
25period.
26    (d) If an elected official who is a participating employee

 

 

SB0001 Enrolled- 65 -LRB098 05457 JDS 35491 b

1becomes disabled but does not resign and is not removed from
2office, then earnings shall include all salary payments made
3for the remainder of that term of office and the official shall
4be awarded creditable service for the term of office.
5    (e) If a participating employee is paid pursuant to "An Act
6to provide for the continuation of compensation for law
7enforcement officers, correctional officers and firemen who
8suffer disabling injury in the line of duty", approved
9September 6, 1973, as amended, the payments shall be deemed
10earnings, and the participating employee shall be awarded
11creditable service for this period.
12    (f) Additional compensation received by a person while
13serving as a supervisor of assessments, assessor, deputy
14assessor or member of a board of review from the State of
15Illinois pursuant to Section 4-10 or 4-15 of the Property Tax
16Code shall not be earnings for purposes of this Article and
17shall not be included in the contribution formula or
18calculation of benefits for such person pursuant to this
19Article.
20(Source: P.A. 87-740; 88-670, eff. 12-2-94.)
 
21    (40 ILCS 5/7-116)  (from Ch. 108 1/2, par. 7-116)
22    Sec. 7-116. "Final rate of earnings":
23    (a) For retirement and survivor annuities, the monthly
24earnings obtained by dividing the total earnings received by
25the employee during the period of either (1) the 48 consecutive

 

 

SB0001 Enrolled- 66 -LRB098 05457 JDS 35491 b

1months of service within the last 120 months of service in
2which his total earnings were the highest or (2) the employee's
3total period of service, by the number of months of service in
4such period.
5    (b) For death benefits, the higher of the rate determined
6under paragraph (a) of this Section or total earnings received
7in the last 12 months of service divided by twelve. If the
8deceased employee has less than 12 months of service, the
9monthly final rate shall be the monthly rate of pay the
10employee was receiving when he began service.
11    (c) For disability benefits, the total earnings of a
12participating employee in the last 12 calendar months of
13service prior to the date he becomes disabled divided by 12.
14    (d) In computing the final rate of earnings: (1) the
15earnings rate for all periods of prior service shall be
16considered equal to the average earnings rate for the last 3
17calendar years of prior service for which creditable service is
18received under Section 7-139 or, if there is less than 3 years
19of creditable prior service, the average for the total prior
20service period for which creditable service is received under
21Section 7-139; (2) for out of state service and authorized
22leave, the earnings rate shall be the rate upon which service
23credits are granted; (3) periods of military leave shall not be
24considered; (4) the earnings rate for all periods of disability
25shall be considered equal to the rate of earnings upon which
26the employee's disability benefits are computed for such

 

 

SB0001 Enrolled- 67 -LRB098 05457 JDS 35491 b

1periods; (5) the earnings to be considered for each of the
2final three months of the final earnings period for persons who
3first became participants before January 1, 2012 and the
4earnings to be considered for each of the final 24 months for
5participants who first become participants on or after January
61, 2012 shall not exceed 125% of the highest earnings of any
7other month in the final earnings period; and (6) the annual
8amount of final rate of earnings shall be the monthly amount
9multiplied by the number of months of service normally required
10by the position in a year; and (7) in the case of a person who
11first becomes a participant on or after the effective date of
12this amendatory Act of the 98th General Assembly, payments for
13unused sick or vacation time shall not be considered.
14(Source: P.A. 97-609, eff. 1-1-12.)
 
15    (40 ILCS 5/7-139)  (from Ch. 108 1/2, par. 7-139)
16    Sec. 7-139. Credits and creditable service to employees.
17    (a) Each participating employee shall be granted credits
18and creditable service, for purposes of determining the amount
19of any annuity or benefit to which he or a beneficiary is
20entitled, as follows:
21        1. For prior service: Each participating employee who
22    is an employee of a participating municipality or
23    participating instrumentality on the effective date shall
24    be granted creditable service, but no credits under
25    paragraph 2 of this subsection (a), for periods of prior

 

 

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1    service for which credit has not been received under any
2    other pension fund or retirement system established under
3    this Code, as follows:
4        If the effective date of participation for the
5    participating municipality or participating
6    instrumentality is on or before January 1, 1998, creditable
7    service shall be granted for the entire period of prior
8    service with that employer without any employee
9    contribution.
10        If the effective date of participation for the
11    participating municipality or participating
12    instrumentality is after January 1, 1998, creditable
13    service shall be granted for the last 20% of the period of
14    prior service with that employer, but no more than 5 years,
15    without any employee contribution. A participating
16    employee may establish creditable service for the
17    remainder of the period of prior service with that employer
18    by making an application in writing, accompanied by payment
19    of an employee contribution in an amount determined by the
20    Fund, based on the employee contribution rates in effect at
21    the time of application for the creditable service and the
22    employee's salary rate on the effective date of
23    participation for that employer, plus interest at the
24    effective rate from the date of the prior service to the
25    date of payment. Application for this creditable service
26    may be made at any time while the employee is still in

 

 

SB0001 Enrolled- 69 -LRB098 05457 JDS 35491 b

1    service.
2        A municipality that (i) has at least 35 employees; (ii)
3    is located in a county with at least 2,000,000 inhabitants;
4    and (iii) maintains an independent defined benefit pension
5    plan for the benefit of its eligible employees may restrict
6    creditable service in whole or in part for periods of prior
7    service with the employer if the governing body of the
8    municipality adopts an irrevocable resolution to restrict
9    that creditable service and files the resolution with the
10    board before the municipality's effective date of
11    participation.
12        Any person who has withdrawn from the service of a
13    participating municipality or participating
14    instrumentality prior to the effective date, who reenters
15    the service of the same municipality or participating
16    instrumentality after the effective date and becomes a
17    participating employee is entitled to creditable service
18    for prior service as otherwise provided in this subdivision
19    (a)(1) only if he or she renders 2 years of service as a
20    participating employee after the effective date.
21    Application for such service must be made while in a
22    participating status. The salary rate to be used in the
23    calculation of the required employee contribution, if any,
24    shall be the employee's salary rate at the time of first
25    reentering service with the employer after the employer's
26    effective date of participation.

 

 

SB0001 Enrolled- 70 -LRB098 05457 JDS 35491 b

1        2. For current service, each participating employee
2    shall be credited with:
3            a. Additional credits of amounts equal to each
4        payment of additional contributions received from him
5        under Section 7-173, as of the date the corresponding
6        payment of earnings is payable to him.
7            b. Normal credits of amounts equal to each payment
8        of normal contributions received from him, as of the
9        date the corresponding payment of earnings is payable
10        to him, and normal contributions made for the purpose
11        of establishing out-of-state service credits as
12        permitted under the conditions set forth in paragraph 6
13        of this subsection (a).
14            c. Municipality credits in an amount equal to 1.4
15        times the normal credits, except those established by
16        out-of-state service credits, as of the date of
17        computation of any benefit if these credits would
18        increase the benefit.
19            d. Survivor credits equal to each payment of
20        survivor contributions received from the participating
21        employee as of the date the corresponding payment of
22        earnings is payable, and survivor contributions made
23        for the purpose of establishing out-of-state service
24        credits.
25        3. For periods of temporary and total and permanent
26    disability benefits, each employee receiving disability

 

 

SB0001 Enrolled- 71 -LRB098 05457 JDS 35491 b

1    benefits shall be granted creditable service for the period
2    during which disability benefits are payable. Normal and
3    survivor credits, based upon the rate of earnings applied
4    for disability benefits, shall also be granted if such
5    credits would result in a higher benefit to any such
6    employee or his beneficiary.
7        4. For authorized leave of absence without pay: A
8    participating employee shall be granted credits and
9    creditable service for periods of authorized leave of
10    absence without pay under the following conditions:
11            a. An application for credits and creditable
12        service is submitted to the board while the employee is
13        in a status of active employment.
14            b. Not more than 12 complete months of creditable
15        service for authorized leave of absence without pay
16        shall be counted for purposes of determining any
17        benefits payable under this Article.
18            c. Credits and creditable service shall be granted
19        for leave of absence only if such leave is approved by
20        the governing body of the municipality, including
21        approval of the estimated cost thereof to the
22        municipality as determined by the fund, and employee
23        contributions, plus interest at the effective rate
24        applicable for each year from the end of the period of
25        leave to date of payment, have been paid to the fund in
26        accordance with Section 7-173. The contributions shall

 

 

SB0001 Enrolled- 72 -LRB098 05457 JDS 35491 b

1        be computed upon the assumption earnings continued
2        during the period of leave at the rate in effect when
3        the leave began.
4            d. Benefits under the provisions of Sections
5        7-141, 7-146, 7-150 and 7-163 shall become payable to
6        employees on authorized leave of absence, or their
7        designated beneficiary, only if such leave of absence
8        is creditable hereunder, and if the employee has at
9        least one year of creditable service other than the
10        service granted for leave of absence. Any employee
11        contributions due may be deducted from any benefits
12        payable.
13            e. No credits or creditable service shall be
14        allowed for leave of absence without pay during any
15        period of prior service.
16        5. For military service: The governing body of a
17    municipality or participating instrumentality may elect to
18    allow creditable service to participating employees who
19    leave their employment to serve in the armed forces of the
20    United States for all periods of such service, provided
21    that the person returns to active employment within 90 days
22    after completion of full time active duty, but no
23    creditable service shall be allowed such person for any
24    period that can be used in the computation of a pension or
25    any other pay or benefit, other than pay for active duty,
26    for service in any branch of the armed forces of the United

 

 

SB0001 Enrolled- 73 -LRB098 05457 JDS 35491 b

1    States. If necessary to the computation of any benefit, the
2    board shall establish municipality credits for
3    participating employees under this paragraph on the
4    assumption that the employee received earnings at the rate
5    received at the time he left the employment to enter the
6    armed forces. A participating employee in the armed forces
7    shall not be considered an employee during such period of
8    service and no additional death and no disability benefits
9    are payable for death or disability during such period.
10        Any participating employee who left his employment
11    with a municipality or participating instrumentality to
12    serve in the armed forces of the United States and who
13    again became a participating employee within 90 days after
14    completion of full time active duty by entering the service
15    of a different municipality or participating
16    instrumentality, which has elected to allow creditable
17    service for periods of military service under the preceding
18    paragraph, shall also be allowed creditable service for his
19    period of military service on the same terms that would
20    apply if he had been employed, before entering military
21    service, by the municipality or instrumentality which
22    employed him after he left the military service and the
23    employer costs arising in relation to such grant of
24    creditable service shall be charged to and paid by that
25    municipality or instrumentality.
26        Notwithstanding the foregoing, any participating

 

 

SB0001 Enrolled- 74 -LRB098 05457 JDS 35491 b

1    employee shall be entitled to creditable service as
2    required by any federal law relating to re-employment
3    rights of persons who served in the United States Armed
4    Services. Such creditable service shall be granted upon
5    payment by the member of an amount equal to the employee
6    contributions which would have been required had the
7    employee continued in service at the same rate of earnings
8    during the military leave period, plus interest at the
9    effective rate.
10        5.1. In addition to any creditable service established
11    under paragraph 5 of this subsection (a), creditable
12    service may be granted for up to 48 months of service in
13    the armed forces of the United States.
14        In order to receive creditable service for military
15    service under this paragraph 5.1, a participating employee
16    must (1) apply to the Fund in writing and provide evidence
17    of the military service that is satisfactory to the Board;
18    (2) obtain the written approval of the current employer;
19    and (3) make contributions to the Fund equal to (i) the
20    employee contributions that would have been required had
21    the service been rendered as a member, plus (ii) an amount
22    determined by the board to be equal to the employer's
23    normal cost of the benefits accrued for that military
24    service, plus (iii) interest on items (i) and (ii) from the
25    date of first membership in the Fund to the date of
26    payment. The required interest shall be calculated at the

 

 

SB0001 Enrolled- 75 -LRB098 05457 JDS 35491 b

1    regular interest rate.
2        The changes made to this paragraph 5.1 by Public Acts
3    95-483 and 95-486 apply only to participating employees in
4    service on or after August 28, 2007 (the effective date of
5    those Public Acts).
6        6. For out-of-state service: Creditable service shall
7    be granted for service rendered to an out-of-state local
8    governmental body under the following conditions: The
9    employee had participated and has irrevocably forfeited
10    all rights to benefits in the out-of-state public employees
11    pension system; the governing body of his participating
12    municipality or instrumentality authorizes the employee to
13    establish such service; the employee has 2 years current
14    service with this municipality or participating
15    instrumentality; the employee makes a payment of
16    contributions, which shall be computed at 8% (normal) plus
17    2% (survivor) times length of service purchased times the
18    average rate of earnings for the first 2 years of service
19    with the municipality or participating instrumentality
20    whose governing body authorizes the service established
21    plus interest at the effective rate on the date such
22    credits are established, payable from the date the employee
23    completes the required 2 years of current service to date
24    of payment. In no case shall more than 120 months of
25    creditable service be granted under this provision.
26        7. For retroactive service: Any employee who could have

 

 

SB0001 Enrolled- 76 -LRB098 05457 JDS 35491 b

1    but did not elect to become a participating employee, or
2    who should have been a participant in the Municipal Public
3    Utilities Annuity and Benefit Fund before that fund was
4    superseded, may receive creditable service for the period
5    of service not to exceed 50 months; however, a current or
6    former elected or appointed official of a participating
7    municipality may establish credit under this paragraph 7
8    for more than 50 months of service as an official of that
9    municipality, if the excess over 50 months is approved by
10    resolution of the governing body of the affected
11    municipality filed with the Fund before January 1, 2002.
12        Any employee who is a participating employee on or
13    after September 24, 1981 and who was excluded from
14    participation by the age restrictions removed by Public Act
15    82-596 may receive creditable service for the period, on or
16    after January 1, 1979, excluded by the age restriction and,
17    in addition, if the governing body of the participating
18    municipality or participating instrumentality elects to
19    allow creditable service for all employees excluded by the
20    age restriction prior to January 1, 1979, for service
21    during the period prior to that date excluded by the age
22    restriction. Any employee who was excluded from
23    participation by the age restriction removed by Public Act
24    82-596 and who is not a participating employee on or after
25    September 24, 1981 may receive creditable service for
26    service after January 1, 1979. Creditable service under

 

 

SB0001 Enrolled- 77 -LRB098 05457 JDS 35491 b

1    this paragraph shall be granted upon payment of the
2    employee contributions which would have been required had
3    he participated, with interest at the effective rate for
4    each year from the end of the period of service established
5    to date of payment.
6        8. For accumulated unused sick leave: A participating
7    employee who first becomes a participating employee before
8    the effective date of this amendatory Act of the 98th
9    General Assembly and who is applying for a retirement
10    annuity shall be entitled to creditable service for that
11    portion of the employee's accumulated unused sick leave for
12    which payment is not received, as follows:
13            a. Sick leave days shall be limited to those
14        accumulated under a sick leave plan established by a
15        participating municipality or participating
16        instrumentality which is available to all employees or
17        a class of employees.
18            b. Except as provided in item b-1, only sick leave
19        days accumulated with a participating municipality or
20        participating instrumentality with which the employee
21        was in service within 60 days of the effective date of
22        his retirement annuity shall be credited; If the
23        employee was in service with more than one employer
24        during this period only the sick leave days with the
25        employer with which the employee has the greatest
26        number of unpaid sick leave days shall be considered.

 

 

SB0001 Enrolled- 78 -LRB098 05457 JDS 35491 b

1            b-1. If the employee was in the service of more
2        than one employer as defined in item (2) of paragraph
3        (a) of subsection (A) of Section 7-132, then the sick
4        leave days from all such employers shall be credited,
5        as long as the creditable service attributed to those
6        sick leave days does not exceed the limitation in item
7        f of this paragraph 8. In calculating the creditable
8        service under this item b-1, the sick leave days from
9        the last employer shall be considered first, then the
10        remaining sick leave days shall be considered until
11        there are no more days or the maximum creditable sick
12        leave threshold under item f of this paragraph 8 has
13        been reached.
14            c. The creditable service granted shall be
15        considered solely for the purpose of computing the
16        amount of the retirement annuity and shall not be used
17        to establish any minimum service period required by any
18        provision of the Illinois Pension Code, the effective
19        date of the retirement annuity, or the final rate of
20        earnings.
21            d. The creditable service shall be at the rate of
22        1/20 of a month for each full sick day, provided that
23        no more than 12 months may be credited under this
24        subdivision 8.
25            e. Employee contributions shall not be required
26        for creditable service under this subdivision 8.

 

 

SB0001 Enrolled- 79 -LRB098 05457 JDS 35491 b

1            f. Each participating municipality and
2        participating instrumentality with which an employee
3        has service within 60 days of the effective date of his
4        retirement annuity shall certify to the board the
5        number of accumulated unpaid sick leave days credited
6        to the employee at the time of termination of service.
7        9. For service transferred from another system:
8    Credits and creditable service shall be granted for service
9    under Article 4, 5, 8, 14, or 16 of this Act, to any active
10    member of this Fund, and to any inactive member who has
11    been a county sheriff, upon transfer of such credits
12    pursuant to Section 4-108.3, 5-235, 8-226.7, 14-105.6, or
13    16-131.4, and payment by the member of the amount by which
14    (1) the employer and employee contributions that would have
15    been required if he had participated in this Fund as a
16    sheriff's law enforcement employee during the period for
17    which credit is being transferred, plus interest thereon at
18    the effective rate for each year, compounded annually, from
19    the date of termination of the service for which credit is
20    being transferred to the date of payment, exceeds (2) the
21    amount actually transferred to the Fund. Such transferred
22    service shall be deemed to be service as a sheriff's law
23    enforcement employee for the purposes of Section 7-142.1.
24        10. For service transferred from an Article 3 system
25    under Section 3-110.8: Credits and creditable service
26    shall be granted for service under Article 3 of this Act as

 

 

SB0001 Enrolled- 80 -LRB098 05457 JDS 35491 b

1    provided in Section 3-110.8, to any active member of this
2    Fund upon transfer of such credits pursuant to Section
3    3-110.8. If the amount by which (1) the employer and
4    employee contributions that would have been required if he
5    had participated in this Fund during the period for which
6    credit is being transferred, plus interest thereon at the
7    effective rate for each year, compounded annually, from the
8    date of termination of the service for which credit is
9    being transferred to the date of payment, exceeds (2) the
10    amount actually transferred to the Fund, then the amount of
11    creditable service established under this paragraph 10
12    shall be reduced by a corresponding amount in accordance
13    with the rules and procedures established under this
14    paragraph 10.
15        The board shall establish by rule the manner of making
16    the calculation required under this paragraph 10, taking
17    into account the appropriate actuarial assumptions; the
18    member's service, age, and salary history; the level of
19    funding of the employer; and any other factors that the
20    board determines to be relevant.
21        Until January 1, 2010, members who transferred service
22    from an Article 3 system under the provisions of Public Act
23    94-356 may establish additional credit in this Fund, but
24    only up to the amount of the service credit reduction in
25    that transfer, as calculated under the actuarial
26    assumptions. This credit may be established upon payment by

 

 

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1    the member of an amount to be determined by the board,
2    equal to (1) the amount that would have been contributed as
3    employee and employer contributions had all the service
4    been as an employee under this Article, plus interest
5    thereon compounded annually from the date of service to the
6    date of transfer, less (2) the total amount transferred
7    from the Article 3 system, plus (3) interest on the
8    difference at the effective rate for each year, compounded
9    annually, from the date of the transfer to the date of
10    payment. The additional service credit is allowed under
11    this amendatory Act of the 95th General Assembly
12    notwithstanding the provisions of Article 3 terminating
13    all transferred credits on the date of transfer.
14        11. For service transferred from an Article 3 system
15    under Section 3-110.3: Credits and creditable service
16    shall be granted for service under Article 3 of this Act as
17    provided in Section 3-110.3, to any active member of this
18    Fund, upon transfer of such credits pursuant to Section
19    3-110.3. If the board determines that the amount
20    transferred is less than the true cost to the Fund of
21    allowing that creditable service to be established, then in
22    order to establish that creditable service, the member must
23    pay to the Fund an additional contribution equal to the
24    difference, as determined by the board in accordance with
25    the rules and procedures adopted under this paragraph. If
26    the member does not make the full additional payment as

 

 

SB0001 Enrolled- 82 -LRB098 05457 JDS 35491 b

1    required by this paragraph prior to termination of his
2    participation with that employer, then his or her
3    creditable service shall be reduced by an amount equal to
4    the difference between the amount transferred under
5    Section 3-110.3, including any payments made by the member
6    under this paragraph prior to termination, and the true
7    cost to the Fund of allowing that creditable service to be
8    established, as determined by the board in accordance with
9    the rules and procedures adopted under this paragraph.
10        The board shall establish by rule the manner of making
11    the calculation required under this paragraph 11, taking
12    into account the appropriate actuarial assumptions; the
13    member's service, age, and salary history, and any other
14    factors that the board determines to be relevant.
15    (b) Creditable service - amount:
16        1. One month of creditable service shall be allowed for
17    each month for which a participating employee made
18    contributions as required under Section 7-173, or for which
19    creditable service is otherwise granted hereunder. Not
20    more than 1 month of service shall be credited and counted
21    for 1 calendar month, and not more than 1 year of service
22    shall be credited and counted for any calendar year. A
23    calendar month means a nominal month beginning on the first
24    day thereof, and a calendar year means a year beginning
25    January 1 and ending December 31.
26        2. A seasonal employee shall be given 12 months of

 

 

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1    creditable service if he renders the number of months of
2    service normally required by the position in a 12-month
3    period and he remains in service for the entire 12-month
4    period. Otherwise a fractional year of service in the
5    number of months of service rendered shall be credited.
6        3. An intermittent employee shall be given creditable
7    service for only those months in which a contribution is
8    made under Section 7-173.
9    (c) No application for correction of credits or creditable
10service shall be considered unless the board receives an
11application for correction while (1) the applicant is a
12participating employee and in active employment with a
13participating municipality or instrumentality, or (2) while
14the applicant is actively participating in a pension fund or
15retirement system which is a participating system under the
16Retirement Systems Reciprocal Act. A participating employee or
17other applicant shall not be entitled to credits or creditable
18service unless the required employee contributions are made in
19a lump sum or in installments made in accordance with board
20rule.
21    (d) Upon the granting of a retirement, surviving spouse or
22child annuity, a death benefit or a separation benefit, on
23account of any employee, all individual accumulated credits
24shall thereupon terminate. Upon the withdrawal of additional
25contributions, the credits applicable thereto shall thereupon
26terminate. Terminated credits shall not be applied to increase

 

 

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1the benefits any remaining employee would otherwise receive
2under this Article.
3(Source: P.A. 97-415, eff. 8-16-11; 98-439, eff. 8-16-13.)
 
4    (40 ILCS 5/9-219)  (from Ch. 108 1/2, par. 9-219)
5    Sec. 9-219. Computation of service.
6    (1) In computing the term of service of an employee prior
7to the effective date, the entire period beginning on the date
8he was first appointed and ending on the day before the
9effective date, except any intervening period during which he
10was separated by withdrawal from service, shall be counted for
11all purposes of this Article.
12    (2) In computing the term of service of any employee on or
13after the effective date, the following periods of time shall
14be counted as periods of service for age and service, widow's
15and child's annuity purposes:
16        (a) The time during which he performed the duties of
17    his position.
18        (b) Vacations, leaves of absence with whole or part
19    pay, and leaves of absence without pay not longer than 90
20    days.
21        (c) For an employee who is a member of a county police
22    department or a correctional officer with the county
23    department of corrections, approved leaves of absence
24    without pay during which the employee serves as a full-time
25    officer or employee of an employee association, the

 

 

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1    membership of which consists of other participants in the
2    Fund, provided that the employee contributes to the Fund
3    (1) the amount that he would have contributed had he
4    remained an active employee in the position he occupied at
5    the time the leave of absence was granted, (2) an amount
6    calculated by the Board representing employer
7    contributions, and (3) regular interest thereon from the
8    date of service to the date of payment. However, if the
9    employee's application to establish credit under this
10    subsection is received by the Fund on or after July 1, 2002
11    and before July 1, 2003, the amount representing employer
12    contributions specified in item (2) shall be waived.
13        For a former member of a county police department who
14    has received a refund under Section 9-164, periods during
15    which the employee serves as head of an employee
16    association, the membership of which consists of other
17    police officers, provided that the employee contributes to
18    the Fund (1) the amount that he would have contributed had
19    he remained an active member of the county police
20    department in the position he occupied at the time he left
21    service, (2) an amount calculated by the Board representing
22    employer contributions, and (3) regular interest thereon
23    from the date of service to the date of payment. However,
24    if the former member of the county police department
25    retires on or after January 1, 1993 but no later than March
26    1, 1993, the amount representing employer contributions

 

 

SB0001 Enrolled- 86 -LRB098 05457 JDS 35491 b

1    specified in item (2) shall be waived.
2        For leaves of absence to which this item (c) applies
3    and for other periods to which this item (c) applies,
4    including those leaves of absence and other periods of
5    service beginning before January 5, 2012 (the effective
6    date of Public Act 97-651) this amendatory Act of the 97th
7    General Assembly, the employee or former member must
8    continue to remain in sworn status, subject to the
9    professional standards of the public employer or those
10    terms established in statute.
11        (d) Any period of disability for which he received
12    disability benefit or whole or part pay.
13        (e) For a person who first becomes an employee before
14    the effective date of this amendatory Act of the 98th
15    General Assembly, accumulated Accumulated vacation or
16    other time for which an employee who retires on or after
17    November 1, 1990 receives a lump sum payment at the time of
18    retirement, provided that contributions were made to the
19    fund at the time such lump sum payment was received. The
20    service granted for the lump sum payment shall not change
21    the employee's date of withdrawal for computing the
22    effective date of the annuity.
23        (f) An employee who first becomes an employee before
24    the effective date of this amendatory Act of the 98th
25    General Assembly may receive service credit for annuity
26    purposes for accumulated sick leave as of the date of the

 

 

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1    employee's withdrawal from service, not to exceed a total
2    of 180 days, provided that the amount of such accumulated
3    sick leave is certified by the County Comptroller to the
4    Board and the employee pays an amount equal to 8.5% (9% for
5    members of the County Police Department who are eligible to
6    receive an annuity under Section 9-128.1) of the amount
7    that would have been paid had such accumulated sick leave
8    been paid at the employee's final rate of salary. Such
9    payment shall be made within 30 days after the date of
10    withdrawal and prior to receipt of the first annuity check.
11    The service credit granted for such accumulated sick leave
12    shall not change the employee's date of withdrawal for the
13    purpose of computing the effective date of the annuity.
14    (3) In computing the term of service of an employee on or
15after the effective date for ordinary disability benefit
16purposes, the following periods of time shall be counted as
17periods of service:
18        (a) Unless otherwise specified in Section 9-157, the
19    time during which he performed the duties of his position.
20        (b) Paid vacations and leaves of absence with whole or
21    part pay.
22        (c) Any period for which he received duty disability
23    benefit.
24        (d) Any period of disability for which he received
25    whole or part pay.
26    (4) For an employee who on January 1, 1958, was transferred

 

 

SB0001 Enrolled- 88 -LRB098 05457 JDS 35491 b

1by Act of the 70th General Assembly from his position in a
2department of welfare of any city located in the county in
3which this Article is in force and effect to a similar position
4in a department of such county, service shall also be credited
5for ordinary disability benefit and child's annuity for such
6period of department of welfare service during which period he
7was a contributor to a statutory annuity and benefit fund in
8such city and for which purposes service credit would otherwise
9not be credited by virtue of such involuntary transfer.
10    (5) An employee described in subsection (e) of Section
119-108 shall receive credit for child's annuity and ordinary
12disability benefit for the period of time for which he was
13credited with service in the fund from which he was
14involuntarily separated through class or group transfer;
15provided, that no such credit shall be allowed to the extent
16that it results in a duplication of credits or benefits, and
17neither shall such credit be allowed to the extent that it was
18or may be forfeited by the application for and acceptance of a
19refund from the fund from which the employee was transferred.
20    (6) Overtime or extra service shall not be included in
21computing service. Not more than 1 year of service shall be
22allowed for service rendered during any calendar year.
23    (7) Unused sick or vacation time shall not be used to
24compute the service of an employee who first becomes an
25employee on or after the effective date of this amendatory Act
26of the 98th General Assembly.

 

 

SB0001 Enrolled- 89 -LRB098 05457 JDS 35491 b

1(Source: P.A. 97-651, eff. 1-5-12.)
 
2    (40 ILCS 5/9-220)  (from Ch. 108 1/2, par. 9-220)
3    Sec. 9-220. Basis of service credit.
4    (a) In computing the period of service of any employee for
5annuity purposes under Section 9-134, the following provisions
6shall govern:
7        (1) All periods prior to the effective date shall be
8    computed in accordance with the provisions governing the
9    computation of such service.
10        (2) Service on or after the effective date shall
11    include:
12            (i) The actual period of time the employee
13        contributes or has contributed to the fund for service
14        rendered to age 65 plus the actual period of time after
15        age 65 for which the employee performs the duties of
16        his position or performs such duties and is given a
17        county contribution for age and service annuity or
18        minimum annuity purposes.
19            (ii) Leaves of absence from duty, or vacation, for
20        which an employee receives all or part of his salary.
21            (iii) For a person who first becomes an employee
22        before the effective date of this amendatory Act of the
23        98th General Assembly, accumulated Accumulated
24        vacation or other time for which an employee who
25        retires on or after November 1, 1990 receives a lump

 

 

SB0001 Enrolled- 90 -LRB098 05457 JDS 35491 b

1        sum payment at the time of retirement, provided that
2        contributions were made to the fund at the time such
3        lump sum payment was received. The service granted for
4        the lump sum payment shall not change the employee's
5        date of withdrawal for computing the effective date of
6        the annuity.
7            (iv) For a person who first becomes an employee
8        before the effective date of this amendatory Act of the
9        98th General Assembly, accumulated Accumulated sick
10        leave as of the date of the employee's withdrawal from
11        service, not to exceed a total of 180 days, provided
12        that the amount of such accumulated sick leave is
13        certified by the County Comptroller to the Board and
14        the employee pays an amount equal to 8.5% (9% for
15        members of the County Police Department who are
16        eligible to receive an annuity under Section 9-128.1)
17        of the amount that would have been paid had such
18        accumulated sick leave been paid at the employee's
19        final rate of salary. Such payment shall be made within
20        30 days after the date of withdrawal and prior to
21        receipt of the first annuity check. The service credit
22        granted for such accumulated sick leave shall not
23        change the employee's date of withdrawal for the
24        purpose of computing the effective date of the annuity.
25            (v) Periods during which the employee has had
26        contributions for annuity purposes made for him in

 

 

SB0001 Enrolled- 91 -LRB098 05457 JDS 35491 b

1        accordance with law while on military leave of absence
2        during World War II.
3            (vi) Periods during which the employee receives a
4        disability benefit under this Article.
5            (vii) For any person who first becomes a member on
6        or after January 1, 2011, the actual period of time the
7        employee contributes or has contributed to the fund for
8        service rendered up to the limitation on salary in
9        subsection (b-5) of Section 1-160 plus the actual
10        period of time thereafter for which the employee
11        performs the duties of his position and ceased
12        contributing due to the salary limitation in
13        subsection (b-5) of Section 1-160.
14        (3) The right to have certain periods of time
15    considered as service as stated in paragraph (2) of Section
16    9-164 shall not apply for annuity purposes unless the
17    refunds shall have been repaid in accordance with this
18    Article.
19        (4) All service shall be computed in whole calendar
20    months, and at least 15 days of service in any one calendar
21    month shall constitute one calendar month of service, and 1
22    year of service shall be equal to the number of months,
23    days or hours for which an appropriation was made in the
24    annual appropriation ordinance for the position held by the
25    employee.
26        (5) Unused sick or vacation time shall not be used to

 

 

SB0001 Enrolled- 92 -LRB098 05457 JDS 35491 b

1    compute the service of an employee who first becomes an
2    employee on or after the effective date of this amendatory
3    Act of the 98th General Assembly.
4    (b) For all other annuity purposes of this Article the
5following schedule shall govern the computation of a year of
6service of an employee whose salary or wages is on the basis
7stated, and any fractional part of a year of service shall be
8determined according to said schedule:
9    Annual or Monthly Basis: Service during 4 months in any 1
10calendar year;
11    Weekly Basis: Service during any 17 weeks of any 1 calendar
12year, and service during any week shall constitute a week of
13service;
14    Daily Basis: Service during 100 days in any 1 calendar
15year, and service during any day shall constitute a day of
16service;
17    Hourly Basis: Service during 800 hours in any 1 calendar
18year, and service during any hour shall constitute an hour of
19service.
20(Source: P.A. 96-1490, eff. 1-1-11.)
 
21    (40 ILCS 5/14-103.10)  (from Ch. 108 1/2, par. 14-103.10)
22    Sec. 14-103.10. Compensation.
23    (a) For periods of service prior to January 1, 1978, the
24full rate of salary or wages payable to an employee for
25personal services performed if he worked the full normal

 

 

SB0001 Enrolled- 93 -LRB098 05457 JDS 35491 b

1working period for his position, subject to the following
2maximum amounts: (1) prior to July 1, 1951, $400 per month or
3$4,800 per year; (2) between July 1, 1951 and June 30, 1957
4inclusive, $625 per month or $7,500 per year; (3) beginning
5July 1, 1957, no limitation.
6    In the case of service of an employee in a position
7involving part-time employment, compensation shall be
8determined according to the employees' earnings record.
9    (b) For periods of service on and after January 1, 1978,
10all remuneration for personal services performed defined as
11"wages" under the Social Security Enabling Act, including that
12part of such remuneration which is in excess of any maximum
13limitation provided in such Act, and including any benefits
14received by an employee under a sick pay plan in effect before
15January 1, 1981, but excluding lump sum salary payments:
16        (1) for vacation,
17        (2) for accumulated unused sick leave,
18        (3) upon discharge or dismissal,
19        (4) for approved holidays.
20    (c) For periods of service on or after December 16, 1978,
21compensation also includes any benefits, other than lump sum
22salary payments made at termination of employment, which an
23employee receives or is eligible to receive under a sick pay
24plan authorized by law.
25    (d) For periods of service after September 30, 1985,
26compensation also includes any remuneration for personal

 

 

SB0001 Enrolled- 94 -LRB098 05457 JDS 35491 b

1services not included as "wages" under the Social Security
2Enabling Act, which is deducted for purposes of participation
3in a program established pursuant to Section 125 of the
4Internal Revenue Code or its successor laws.
5    (e) For members for which Section 1-160 applies for periods
6of service on and after January 1, 2011, all remuneration for
7personal services performed defined as "wages" under the Social
8Security Enabling Act, excluding remuneration that is in excess
9of the annual earnings, salary, or wages of a member or
10participant, as provided in subsection (b-5) of Section 1-160,
11but including any benefits received by an employee under a sick
12pay plan in effect before January 1, 1981. Compensation shall
13exclude lump sum salary payments:
14        (1) for vacation;
15        (2) for accumulated unused sick leave;
16        (3) upon discharge or dismissal; and
17        (4) for approved holidays.
18    (f) Notwithstanding the other provisions of this Section,
19for service on or after July 1, 2013, "compensation" does not
20include any stipend payable to an employee for service on a
21board or commission.
22    (g) Notwithstanding any other provision of this Section,
23for an employee who first becomes a participant on or after the
24effective date of this amendatory Act of the 98th General
25Assembly, "compensation" does not include any payments or
26reimbursements for travel vouchers submitted more than 30 days

 

 

SB0001 Enrolled- 95 -LRB098 05457 JDS 35491 b

1after the last day of travel for which the voucher is
2submitted.
3    (h) Notwithstanding any other provision of this Code, the
4annual compensation of a Tier 1 member for the purposes of this
5Code shall not exceed, for periods of service on or after the
6effective date of this amendatory Act of the 98th General
7Assembly, the greater of (i) the annual limitation determined
8from time to time under subsection (b-5) of Section 1-160 of
9this Code, (ii) the annualized compensation of the Tier 1
10member as of that effective date, or (iii) the annualized
11compensation of the Tier 1 member immediately preceding the
12expiration, renewal, or amendment of an employment contract or
13collective bargaining agreement in effect on that effective
14date.
15(Source: P.A. 98-449, eff. 8-16-13.)
 
16    (40 ILCS 5/14-103.40 new)
17    Sec. 14-103.40.  Tier 1 member. "Tier 1 member": A member
18of this 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 5/14-104.3)  (from Ch. 108 1/2, par. 14-104.3)
24    Sec. 14-104.3. Notwithstanding provisions contained in

 

 

SB0001 Enrolled- 96 -LRB098 05457 JDS 35491 b

1Section 14-103.10, any person who first becomes a member before
2the effective date of this amendatory Act of the 98th General
3Assembly and who at the time of retirement and after December
46, 1983 receives compensation in a lump sum for accumulated
5vacation, sickness, or personal business may receive service
6credit for such periods by making contributions within 90 days
7of withdrawal, based on the rate of compensation in effect
8immediately prior to retirement and the contribution rate then
9in effect. Any person who first becomes a member on or after
10the effective date of this amendatory Act of the 98th General
11Assembly and who receives compensation in a lump sum for
12accumulated vacation, sickness, or personal business may not
13receive service credit for such periods. Exercising the option
14provided in this Section shall not change a member's date of
15withdrawal or final average compensation for purposes of
16computing the amount or effective date of a retirement annuity.
17Any annuitant who establishes service credit as herein provided
18shall have his retirement annuity adjusted retroactively to the
19date of retirement.
20(Source: P.A. 83-1362.)
 
21    (40 ILCS 5/14-106)  (from Ch. 108 1/2, par. 14-106)
22    Sec. 14-106. Membership service credit.
23    (a) After January 1, 1944, all service of a member since he
24last became a member with respect to which contributions are
25made shall count as membership service; provided, that for

 

 

SB0001 Enrolled- 97 -LRB098 05457 JDS 35491 b

1service on and after July 1, 1950, 12 months of service shall
2constitute a year of membership service, the completion of 15
3days or more of service during any month shall constitute 1
4month of membership service, 8 to 15 days shall constitute 1/2
5month of membership service and less than 8 days shall
6constitute 1/4 month of membership service. The payroll record
7of each department shall constitute conclusive evidence of the
8record of service rendered by a member.
9    (b) For a member who is employed and paid on an
10academic-year basis rather than on a 12-month annual basis,
11employment for a full academic year shall constitute a full
12year of membership service, except that the member shall not
13receive more than one year of membership service credit (plus
14any additional service credit granted for unused sick leave)
15for service during any 12-month period. This subsection (b)
16applies to all such service for which the member has not begun
17to receive a retirement annuity before January 1, 2001.
18    (c) A person who first becomes a member before the
19effective date of this amendatory Act of the 98th General
20Assembly shall be entitled to additional service credit, under
21rules prescribed by the Board, for accumulated unused sick
22leave credited to his account in the last Department on the
23date of withdrawal from service or for any period for which he
24would have been eligible to receive benefits under a sick pay
25plan authorized by law, if he had suffered a sickness or
26accident on the date of withdrawal from service. It shall be

 

 

SB0001 Enrolled- 98 -LRB098 05457 JDS 35491 b

1the responsibility of the last Department to certify to the
2Board the length of time salary or benefits would have been
3paid to the member based upon the accumulated unused sick leave
4or the applicable sick pay plan if he had become entitled
5thereto because of sickness on the date that his status as an
6employee terminated. This period of service credit granted
7under this paragraph shall not be considered in determining the
8date the retirement annuity is to begin, or final average
9compensation.
10    (d) A person who first becomes a member on or after the
11effective date of this amendatory Act of the 98th General
12Assembly shall not be entitled to additional service credit for
13accumulated unused sick leave.
14(Source: P.A. 92-14, eff. 6-28-01.)
 
15    (40 ILCS 5/14-107)  (from Ch. 108 1/2, par. 14-107)
16    Sec. 14-107. Retirement annuity - service and age -
17conditions.
18    (a) A member is entitled to a retirement annuity after
19having at least 8 years of creditable service.
20    (b) A member who has at least 35 years of creditable
21service may claim his or her retirement annuity at any age. A
22member having at least 8 years of creditable service but less
23than 35 may claim his or her retirement annuity upon or after
24attainment of age 60 or, beginning January 1, 2001, any lesser
25age which, when added to the number of years of his or her

 

 

SB0001 Enrolled- 99 -LRB098 05457 JDS 35491 b

1creditable service, equals at least 85. A member upon or after
2attainment of age 55 having at least 25 years of creditable
3service (30 years if retirement is before January 1, 2001) may
4elect to receive the lower retirement annuity provided in
5paragraph (c) of Section 14-108 of this Code. For purposes of
6the rule of 85, portions of years shall be counted in whole
7months.
8    (c) Notwithstanding subsection (b) of this Section, for a
9Tier 1 member who begins receiving a retirement annuity under
10this Section on or after July 1, 2014, the required retirement
11age under subsection (b) is increased as follows, based on the
12Tier 1 member's age on June 1, 2014:
13        (1) If he or she is at least age 46 on June 1, 2014,
14    then the required retirement ages under subsection (b)
15    remain unchanged.
16        (2) If he or she is at least age 45 but less than age 46
17    on June 1, 2014, then the required retirement ages under
18    subsection (b) are increased by 4 months.
19        (3) If he or she is at least age 44 but less than age 45
20    on June 1, 2014, then the required retirement ages under
21    subsection (b) are increased by 8 months.
22        (4) If he or she is at least age 43 but less than age 44
23    on June 1, 2014, then the required retirement ages under
24    subsection (b) are increased by 12 months.
25        (5) If he or she is at least age 42 but less than age 43
26    on June 1, 2014, then the required retirement ages under

 

 

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1    subsection (b) are increased by 16 months.
2        (6) If he or she is at least age 41 but less than age 42
3    on June 1, 2014, then the required retirement ages under
4    subsection (b) are increased by 20 months.
5        (7) If he or she is at least age 40 but less than age 41
6    on June 1, 2014, then the required retirement ages under
7    subsection (b) are increased by 24 months.
8        (8) If he or she is at least age 39 but less than age 40
9    on June 1, 2014, then the required retirement ages under
10    subsection (b) are increased by 28 months.
11        (9) If he or she is at least age 38 but less than age 39
12    on June 1, 2014, then the required retirement ages under
13    subsection (b) are increased by 32 months.
14        (10) If he or she is at least age 37 but less than age
15    38 on June 1, 2014, then the required retirement ages under
16    subsection (b) are increased by 36 months.
17        (11) If he or she is at least age 36 but less than age
18    37 on June 1, 2014, then the required retirement ages under
19    subsection (b) are increased by 40 months.
20        (12) If he or she is at least age 35 but less than age
21    36 on June 1, 2014, then the required retirement ages under
22    subsection (b) are increased by 44 months.
23        (13) If he or she is at least age 34 but less than age
24    35 on June 1, 2014, then the required retirement ages under
25    subsection (b) are increased by 48 months.
26        (14) If he or she is at least age 33 but less than age

 

 

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1    34 on June 1, 2014, then the required retirement ages under
2    subsection (b) are increased by 52 months.
3        (15) If he or she is at least age 32 but less than age
4    33 on June 1, 2014, then the required retirement ages under
5    subsection (b) are increased by 56 months.
6        (16) If he or she is less than age 32 on June 1, 2014,
7    then the required retirement ages under subsection (b) are
8    increased by 60 months.
9    Notwithstanding Section 1-103.1, this subsection (c)
10applies without regard to whether or not the Tier 1 member is
11in active service under this Article on or after the effective
12date of this amendatory Act of the 98th General Assembly.
13    (d) The allowance shall begin with the first full calendar
14month specified in the member's application therefor, the first
15day of which shall not be before the date of withdrawal as
16approved by the board. Regardless of the date of withdrawal,
17the allowance need not begin within one year of application
18therefor.
19(Source: P.A. 91-927, eff. 12-14-00.)
 
20    (40 ILCS 5/14-108)  (from Ch. 108 1/2, par. 14-108)
21    Sec. 14-108.  Amount of retirement annuity. A member who
22has contributed to the System for at least 12 months shall be
23entitled to a prior service annuity for each year of certified
24prior service credited to him, except that a member shall
25receive 1/3 of the prior service annuity for each year of

 

 

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1service for which contributions have been made and all of such
2annuity shall be payable after the member has made
3contributions for a period of 3 years. Proportionate amounts
4shall be payable for service of less than a full year after
5completion of at least 12 months.
6    The total period of service to be considered in
7establishing the measure of prior service annuity shall include
8service credited in the Teachers' Retirement System of the
9State of Illinois and the State Universities Retirement System
10for which contributions have been made by the member to such
11systems; provided that at least 1 year of the total period of 3
12years prescribed for the allowance of a full measure of prior
13service annuity shall consist of membership service in this
14system for which credit has been granted.
15    (a) In the case of a member who retires on or after January
161, 1998 and is a noncovered employee, the retirement annuity
17for membership service and prior service shall be 2.2% of final
18average compensation for each year of service. Any service
19credit established as a covered employee shall be computed as
20stated in paragraph (b).
21    (b) In the case of a member who retires on or after January
221, 1998 and is a covered employee, the retirement annuity for
23membership service and prior service shall be computed as
24stated in paragraph (a) for all service credit established as a
25noncovered employee; for service credit established as a
26covered employee it shall be 1.67% of final average

 

 

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1compensation for each year of service.
2    (c) For a member retiring after attaining age 55 but before
3age 60 with at least 30 but less than 35 years of creditable
4service if retirement is before January 1, 2001, or with at
5least 25 but less than 30 years of creditable service if
6retirement is on or after January 1, 2001, the retirement
7annuity shall be reduced by 1/2 of 1% for each month that the
8member's age is under age 60 at the time of retirement. For
9members to whom subsection (c) of Section 14-107 applies, the
10references to age 55 and 60 in this subsection (c) are
11increased as provided in subsection (c) of Section 14-107.
12    (d) A retirement annuity shall not exceed 75% of final
13average compensation, subject to such extension as may result
14from the application of Section 14-114 or Section 14-115.
15    (e) The retirement annuity payable to any covered employee
16who is a member of the System and in service on January 1,
171969, or in service thereafter in 1969 as a result of
18legislation enacted by the Illinois General Assembly
19transferring the member to State employment from county
20employment in a county Department of Public Aid in counties of
213,000,000 or more population, under a plan of coordination with
22the Old Age, Survivors and Disability provisions thereof, if
23not fully insured for Old Age Insurance payments under the
24Federal Old Age, Survivors and Disability Insurance provisions
25at the date of acceptance of a retirement annuity, shall not be
26less than the amount for which the member would have been

 

 

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1eligible if coordination were not applicable.
2    (f) The retirement annuity payable to any covered employee
3who is a member of the System and in service on January 1,
41969, or in service thereafter in 1969 as a result of the
5legislation designated in the immediately preceding paragraph,
6if fully insured for Old Age Insurance payments under the
7Federal Social Security Act at the date of acceptance of a
8retirement annuity, shall not be less than an amount which when
9added to the Primary Insurance Benefit payable to the member
10upon attainment of age 65 under such Federal Act, will equal
11the annuity which would otherwise be payable if the coordinated
12plan of coverage were not applicable.
13    (g) In the case of a member who is a noncovered employee,
14the retirement annuity for membership service as a security
15employee of the Department of Corrections or security employee
16of the Department of Human Services shall be: if retirement
17occurs on or after January 1, 2001, 3% of final average
18compensation for each year of creditable service; or if
19retirement occurs before January 1, 2001, 1.9% of final average
20compensation for each of the first 10 years of service, 2.1%
21for each of the next 10 years of service, 2.25% for each year
22of service in excess of 20 but not exceeding 30, and 2.5% for
23each year in excess of 30; except that the annuity may be
24calculated under subsection (a) rather than this subsection (g)
25if the resulting annuity is greater.
26    (h) In the case of a member who is a covered employee, the

 

 

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1retirement annuity for membership service as a security
2employee of the Department of Corrections or security employee
3of the Department of Human Services shall be: if retirement
4occurs on or after January 1, 2001, 2.5% of final average
5compensation for each year of creditable service; if retirement
6occurs before January 1, 2001, 1.67% of final average
7compensation for each of the first 10 years of service, 1.90%
8for each of the next 10 years of service, 2.10% for each year
9of service in excess of 20 but not exceeding 30, and 2.30% for
10each year in excess of 30.
11    (i) For the purposes of this Section and Section 14-133 of
12this Act, the term "security employee of the Department of
13Corrections" and the term "security employee of the Department
14of Human Services" shall have the meanings ascribed to them in
15subsection (c) of Section 14-110.
16    (j) The retirement annuity computed pursuant to paragraphs
17(g) or (h) shall be applicable only to those security employees
18of the Department of Corrections and security employees of the
19Department of Human Services who have at least 20 years of
20membership service and who are not eligible for the alternative
21retirement annuity provided under Section 14-110. However,
22persons transferring to this System under Section 14-108.2 or
2314-108.2c who have service credit under Article 16 of this Code
24may count such service toward establishing their eligibility
25under the 20-year service requirement of this subsection; but
26such service may be used only for establishing such

 

 

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1eligibility, and not for the purpose of increasing or
2calculating any benefit.
3    (k) (Blank).
4    (l) The changes to this Section made by this amendatory Act
5of 1997 (changing certain retirement annuity formulas from a
6stepped rate to a flat rate) apply to members who retire on or
7after January 1, 1998, without regard to whether employment
8terminated before the effective date of this amendatory Act of
91997. An annuity shall not be calculated in steps by using the
10new flat rate for some steps and the superseded stepped rate
11for other steps of the same type of service.
12(Source: P.A. 91-927, eff. 12-14-00; 92-14, eff. 6-28-01.)
 
13    (40 ILCS 5/14-110)  (from Ch. 108 1/2, par. 14-110)
14    Sec. 14-110. Alternative retirement annuity.
15    (a) Any member who has withdrawn from service with not less
16than 20 years of eligible creditable service and has attained
17age 55, and any member who has withdrawn from service with not
18less than 25 years of eligible creditable service and has
19attained age 50, regardless of whether the attainment of either
20of the specified ages occurs while the member is still in
21service, shall be entitled to receive at the option of the
22member, in lieu of the regular or minimum retirement annuity, a
23retirement annuity computed as follows:
24        (i) for periods of service as a noncovered employee: if
25    retirement occurs on or after January 1, 2001, 3% of final

 

 

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1    average compensation for each year of creditable service;
2    if retirement occurs before January 1, 2001, 2 1/4% of
3    final average compensation for each of the first 10 years
4    of creditable service, 2 1/2% for each year above 10 years
5    to and including 20 years of creditable service, and 2 3/4%
6    for each year of creditable service above 20 years; and
7        (ii) for periods of eligible creditable service as a
8    covered employee: if retirement occurs on or after January
9    1, 2001, 2.5% of final average compensation for each year
10    of creditable service; if retirement occurs before January
11    1, 2001, 1.67% of final average compensation for each of
12    the first 10 years of such service, 1.90% for each of the
13    next 10 years of such service, 2.10% for each year of such
14    service in excess of 20 but not exceeding 30, and 2.30% for
15    each year in excess of 30.
16    Such annuity shall be subject to a maximum of 75% of final
17average compensation if retirement occurs before January 1,
182001 or to a maximum of 80% of final average compensation if
19retirement occurs on or after January 1, 2001.
20    These rates shall not be applicable to any service
21performed by a member as a covered employee which is not
22eligible creditable service. Service as a covered employee
23which is not eligible creditable service shall be subject to
24the rates and provisions of Section 14-108.
25    (a-5) Notwithstanding subsection (a) of this Section, for a
26Tier 1 member who begins receiving a retirement annuity under

 

 

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1this Section on or after July 1, 2014, the required retirement
2age under subsection (a) is increased as follows, based on the
3Tier 1 member's age on June 1, 2014:
4        (1) If he or she is at least age 46 on June 1, 2014,
5    then the required retirement ages under subsection (a)
6    remain unchanged.
7        (2) If he or she is at least age 45 but less than age 46
8    on June 1, 2014, then the required retirement ages under
9    subsection (a) are increased by 4 months.
10        (3) If he or she is at least age 44 but less than age 45
11    on June 1, 2014, then the required retirement ages under
12    subsection (a) are increased by 8 months.
13        (4) If he or she is at least age 43 but less than age 44
14    on June 1, 2014, then the required retirement ages under
15    subsection (a) are increased by 12 months.
16        (5) If he or she is at least age 42 but less than age 43
17    on June 1, 2014, then the required retirement ages under
18    subsection (a) are increased by 16 months.
19        (6) If he or she is at least age 41 but less than age 42
20    on June 1, 2014, then the required retirement ages under
21    subsection (a) are increased by 20 months.
22        (7) If he or she is at least age 40 but less than age 41
23    on June 1, 2014, then the required retirement ages under
24    subsection (a) are increased by 24 months.
25        (8) If he or she is at least age 39 but less than age 40
26    on June 1, 2014, then the required retirement ages under

 

 

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1    subsection (a) are increased by 28 months.
2        (9) If he or she is at least age 38 but less than age 39
3    on June 1, 2014, then the required retirement ages under
4    subsection (a) are increased by 32 months.
5        (10) If he or she is at least age 37 but less than age
6    38 on June 1, 2014, then the required retirement ages under
7    subsection (a) are increased by 36 months.
8        (11) If he or she is at least age 36 but less than age
9    37 on June 1, 2014, then the required retirement ages under
10    subsection (a) are increased by 40 months.
11        (12) If he or she is at least age 35 but less than age
12    36 on June 1, 2014, then the required retirement ages under
13    subsection (a) are increased by 44 months.
14        (13) If he or she is at least age 34 but less than age
15    35 on June 1, 2014, then the required retirement ages under
16    subsection (a) are increased by 48 months.
17        (14) If he or she is at least age 33 but less than age
18    34 on June 1, 2014, then the required retirement ages under
19    subsection (a) are increased by 52 months.
20        (15) If he or she is at least age 32 but less than age
21    33 on June 1, 2014, then the required retirement ages under
22    subsection (a) are increased by 56 months.
23        (16) If he or she is less than age 32 on June 1, 2014,
24    then the required retirement ages under subsection (a) are
25    increased by 60 months.
26    Notwithstanding Section 1-103.1, this subsection (a-5)

 

 

SB0001 Enrolled- 110 -LRB098 05457 JDS 35491 b

1applies without regard to whether or not the Tier 1 member is
2in active service under this Article on or after the effective
3date of this amendatory Act of the 98th General Assembly.
4    (b) For the purpose of this Section, "eligible creditable
5service" means creditable service resulting from service in one
6or more of the following positions:
7        (1) State policeman;
8        (2) fire fighter in the fire protection service of a
9    department;
10        (3) air pilot;
11        (4) special agent;
12        (5) investigator for the Secretary of State;
13        (6) conservation police officer;
14        (7) investigator for the Department of Revenue or the
15    Illinois Gaming Board;
16        (8) security employee of the Department of Human
17    Services;
18        (9) Central Management Services security police
19    officer;
20        (10) security employee of the Department of
21    Corrections or the Department of Juvenile Justice;
22        (11) dangerous drugs investigator;
23        (12) investigator for the Department of State Police;
24        (13) investigator for the Office of the Attorney
25    General;
26        (14) controlled substance inspector;

 

 

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

 

 

SB0001 Enrolled- 112 -LRB098 05457 JDS 35491 b

1    he is employed if that department is not covered by the
2    Personnel Code, states that his principal duty is the
3    operation of aircraft, and who possesses a pilot's license;
4    however, the change in this definition made by this
5    amendatory Act of 1983 shall not operate to exclude any
6    noncovered employee who was an "air pilot" for the purposes
7    of this Section on January 1, 1984.
8        (4) The term "special agent" means any person who by
9    reason of employment by the Division of Narcotic Control,
10    the Bureau of Investigation or, after July 1, 1977, the
11    Division of Criminal Investigation, the Division of
12    Internal Investigation, the Division of Operations, or any
13    other Division or organizational entity in the Department
14    of State Police is vested by law with duties to maintain
15    public order, investigate violations of the criminal law of
16    this State, enforce the laws of this State, make arrests
17    and recover property. The term "special agent" includes any
18    title or position in the Department of State Police that is
19    held by an individual employed under the State Police Act.
20        (5) The term "investigator for the Secretary of State"
21    means any person employed by the Office of the Secretary of
22    State and vested with such investigative duties as render
23    him ineligible for coverage under the Social Security Act
24    by reason of Sections 218(d)(5)(A), 218(d)(8)(D) and
25    218(l)(1) of that Act.
26        A person who became employed as an investigator for the

 

 

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

 

 

SB0001 Enrolled- 114 -LRB098 05457 JDS 35491 b

1    the person ineligible for coverage under the Social
2    Security Act by reason of Sections 218(d)(5)(A),
3    218(d)(8)(D), and 218(l)(1) of that Act.
4        (8) The term "security employee of the Department of
5    Human Services" means any person employed by the Department
6    of Human Services who (i) is employed at the Chester Mental
7    Health Center and has daily contact with the residents
8    thereof, (ii) is employed within a security unit at a
9    facility operated by the Department and has daily contact
10    with the residents of the security unit, (iii) is employed
11    at a facility operated by the Department that includes a
12    security unit and is regularly scheduled to work at least
13    50% of his or her working hours within that security unit,
14    or (iv) is a mental health police officer. "Mental health
15    police officer" means any person employed by the Department
16    of Human Services in a position pertaining to the
17    Department's mental health and developmental disabilities
18    functions who is vested with such law enforcement duties as
19    render the person ineligible for coverage under the Social
20    Security Act by reason of Sections 218(d)(5)(A),
21    218(d)(8)(D) and 218(l)(1) of that Act. "Security unit"
22    means that portion of a facility that is devoted to the
23    care, containment, and treatment of persons committed to
24    the Department of Human Services as sexually violent
25    persons, persons unfit to stand trial, or persons not
26    guilty by reason of insanity. With respect to past

 

 

SB0001 Enrolled- 115 -LRB098 05457 JDS 35491 b

1    employment, references to the Department of Human Services
2    include its predecessor, the Department of Mental Health
3    and Developmental Disabilities.
4        The changes made to this subdivision (c)(8) by Public
5    Act 92-14 apply to persons who retire on or after January
6    1, 2001, notwithstanding Section 1-103.1.
7        (9) "Central Management Services security police
8    officer" means any person employed by the Department of
9    Central Management Services who is vested with such law
10    enforcement duties as render him ineligible for coverage
11    under the Social Security Act by reason of Sections
12    218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that Act.
13        (10) For a member who first became an employee under
14    this Article before July 1, 2005, the term "security
15    employee of the Department of Corrections or the Department
16    of Juvenile Justice" means any employee of the Department
17    of Corrections or the Department of Juvenile Justice or the
18    former Department of Personnel, and any member or employee
19    of the Prisoner Review Board, who has daily contact with
20    inmates or youth by working within a correctional facility
21    or Juvenile facility operated by the Department of Juvenile
22    Justice or who is a parole officer or an employee who has
23    direct contact with committed persons in the performance of
24    his or her job duties. For a member who first becomes an
25    employee under this Article on or after July 1, 2005, the
26    term means an employee of the Department of Corrections or

 

 

SB0001 Enrolled- 116 -LRB098 05457 JDS 35491 b

1    the Department of Juvenile Justice who is any of the
2    following: (i) officially headquartered at a correctional
3    facility or Juvenile facility operated by the Department of
4    Juvenile Justice, (ii) a parole officer, (iii) a member of
5    the apprehension unit, (iv) a member of the intelligence
6    unit, (v) a member of the sort team, or (vi) an
7    investigator.
8        (11) The term "dangerous drugs investigator" means any
9    person who is employed as such by the Department of Human
10    Services.
11        (12) The term "investigator for the Department of State
12    Police" means a person employed by the Department of State
13    Police who is vested under Section 4 of the Narcotic
14    Control Division Abolition Act with such law enforcement
15    powers as render him ineligible for coverage under the
16    Social Security Act by reason of Sections 218(d)(5)(A),
17    218(d)(8)(D) and 218(l)(1) of that Act.
18        (13) "Investigator for the Office of the Attorney
19    General" means any person who is employed as such by the
20    Office of the Attorney General and is vested with such
21    investigative duties as render him ineligible for coverage
22    under the Social Security Act by reason of Sections
23    218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that Act. For
24    the period before January 1, 1989, the term includes all
25    persons who were employed as investigators by the Office of
26    the Attorney General, without regard to social security

 

 

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1    status.
2        (14) "Controlled substance inspector" means any person
3    who is employed as such by the Department of Professional
4    Regulation and is vested with such law enforcement duties
5    as render him 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. The term
8    "controlled substance inspector" includes the Program
9    Executive of Enforcement and the Assistant Program
10    Executive of Enforcement.
11        (15) The term "investigator for the Office of the
12    State's Attorneys Appellate Prosecutor" means a person
13    employed in that capacity on a full time basis under the
14    authority of Section 7.06 of the State's Attorneys
15    Appellate Prosecutor's Act.
16        (16) "Commerce Commission police officer" means any
17    person employed by the Illinois Commerce Commission who is
18    vested with such law enforcement duties as render him
19    ineligible for coverage under the Social Security Act by
20    reason of Sections 218(d)(5)(A), 218(d)(8)(D), and
21    218(l)(1) of that Act.
22        (17) "Arson investigator" means any person who is
23    employed as such by the Office of the State Fire Marshal
24    and is vested with such law enforcement duties as render
25    the person ineligible for coverage under the Social
26    Security Act by reason of Sections 218(d)(5)(A),

 

 

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

 

 

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1        operator/laborer H-6, welder H-4, welder H-6,
2        mechanical/electrical H-4, mechanical/electrical H-6,
3        water/sewer H-4, water/sewer H-6, sign maker/hanger
4        H-4, sign maker/hanger H-6, roadway lighting H-4,
5        roadway lighting H-6, structural H-4, structural H-6,
6        painter H-4, or painter H-6; and whose principal
7        responsibility is to perform, on the roadway, the
8        actual maintenance necessary to keep the Authority's
9        tollways in serviceable condition for vehicular
10        traffic.
11    (d) A security employee of the Department of Corrections or
12the Department of Juvenile Justice, and a security employee of
13the Department of Human Services who is not a mental health
14police officer, shall not be eligible for the alternative
15retirement annuity provided by this Section unless he or she
16meets the following minimum age and service requirements at the
17time of retirement:
18        (i) 25 years of eligible creditable service and age 55;
19    or
20        (ii) beginning January 1, 1987, 25 years of eligible
21    creditable service and age 54, or 24 years of eligible
22    creditable service and age 55; or
23        (iii) beginning January 1, 1988, 25 years of eligible
24    creditable service and age 53, or 23 years of eligible
25    creditable service and age 55; or
26        (iv) beginning January 1, 1989, 25 years of eligible

 

 

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

 

 

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1service for the purposes of the retirement annuity prescribed
2in this Section.
3    (f) For purposes of calculating retirement annuities under
4this Section, periods of service rendered after December 31,
51968 and before October 1, 1975 as a covered employee in the
6position of special agent, conservation police officer, mental
7health police officer, or investigator for the Secretary of
8State, shall be deemed to have been service as a noncovered
9employee, provided that the employee pays to the System prior
10to retirement an amount equal to (1) the difference between the
11employee contributions that would have been required for such
12service as a noncovered employee, and the amount of employee
13contributions actually paid, plus (2) if payment is made after
14July 31, 1987, regular interest on the amount specified in item
15(1) from the date of service to the date of payment.
16    For purposes of calculating retirement annuities under
17this Section, periods of service rendered after December 31,
181968 and before January 1, 1982 as a covered employee in the
19position of investigator for the Department of Revenue shall be
20deemed to have been service as a noncovered employee, provided
21that the employee pays to the System prior to retirement an
22amount equal to (1) the difference between the employee
23contributions that would have been required for such service as
24a noncovered employee, and the amount of employee contributions
25actually paid, plus (2) if payment is made after January 1,
261990, regular interest on the amount specified in item (1) from

 

 

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1the date of service to the date of payment.
2    (g) A State policeman may elect, not later than January 1,
31990, to establish eligible creditable service for up to 10
4years of his service as a policeman under Article 3, by filing
5a written election with the Board, accompanied by payment of an
6amount to be determined by the Board, equal to (i) the
7difference between the amount of employee and employer
8contributions transferred to the System under Section 3-110.5,
9and the amounts that would have been contributed had such
10contributions been made at the rates applicable to State
11policemen, plus (ii) interest thereon at the effective rate for
12each year, compounded annually, from the date of service to the
13date of payment.
14    Subject to the limitation in subsection (i), a State
15policeman may elect, not later than July 1, 1993, to establish
16eligible creditable service for up to 10 years of his service
17as a member of the County Police Department under Article 9, by
18filing a written election with the Board, accompanied by
19payment of an amount to be determined by the Board, equal to
20(i) the difference between the amount of employee and employer
21contributions transferred to the System under Section 9-121.10
22and the amounts that would have been contributed had those
23contributions been made at the rates applicable to State
24policemen, plus (ii) interest thereon at the effective rate for
25each year, compounded annually, from the date of service to the
26date of payment.

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1employed by the federal government or by a state or local
2government located outside of Illinois, for which credit is not
3held in any other public employee pension fund or retirement
4system. To obtain this credit, the applicant must file a
5written application with the Board by March 31, 1998,
6accompanied by evidence of eligibility acceptable to the Board
7and payment of an amount to be determined by the Board, equal
8to (1) employee contributions for the credit being established,
9based upon the applicant's salary on the first day as an
10alternative formula employee after the employment for which
11credit is being established and the rates then applicable to
12alternative formula employees, plus (2) an amount determined by
13the Board to be the employer's normal cost of the benefits
14accrued for the credit being established, plus (3) regular
15interest on the amounts in items (1) and (2) from the first day
16as an alternative formula employee after the employment for
17which credit is being established to the date of payment.
18    (l) Subject to the limitation in subsection (i), a security
19employee of the Department of Corrections may elect, not later
20than July 1, 1998, to establish eligible creditable service for
21up to 10 years of his or her service as a policeman under
22Article 3, by filing a written election with the Board,
23accompanied by payment of an amount to be determined by the
24Board, equal to (i) the difference between the amount of
25employee and employer contributions transferred to the System
26under Section 3-110.5, and the amounts that would have been

 

 

SB0001 Enrolled- 128 -LRB098 05457 JDS 35491 b

1contributed had such contributions been made at the rates
2applicable to security employees of the Department of
3Corrections, plus (ii) interest thereon at the effective rate
4for each year, compounded annually, from the date of service to
5the date of payment.
6    (m) The amendatory changes to this Section made by this
7amendatory Act of the 94th General Assembly apply only to: (1)
8security employees of the Department of Juvenile Justice
9employed by the Department of Corrections before the effective
10date of this amendatory Act of the 94th General Assembly and
11transferred to the Department of Juvenile Justice by this
12amendatory Act of the 94th General Assembly; and (2) persons
13employed by the Department of Juvenile Justice on or after the
14effective date of this amendatory Act of the 94th General
15Assembly who are required by subsection (b) of Section 3-2.5-15
16of the Unified Code of Corrections to have a bachelor's or
17advanced degree from an accredited college or university with a
18specialization in criminal justice, education, psychology,
19social work, or a closely related social science or, in the
20case of persons who provide vocational training, who are
21required to have adequate knowledge in the skill for which they
22are providing the vocational training.
23    (n) A person employed in a position under subsection (b) of
24this Section who has purchased service credit under subsection
25(j) of Section 14-104 or subsection (b) of Section 14-105 in
26any other capacity under this Article may convert up to 5 years

 

 

SB0001 Enrolled- 129 -LRB098 05457 JDS 35491 b

1of that service credit into service credit covered under this
2Section by paying to the Fund an amount equal to (1) the
3additional employee contribution required under Section
414-133, plus (2) the additional employer contribution required
5under Section 14-131, plus (3) interest on items (1) and (2) at
6the actuarially assumed rate from the date of the service to
7the date of payment.
8(Source: P.A. 95-530, eff. 8-28-07; 95-1036, eff. 2-17-09;
996-37, eff. 7-13-09; 96-745, eff. 8-25-09; 96-1000, eff.
107-2-10.)
 
11    (40 ILCS 5/14-114)  (from Ch. 108 1/2, par. 14-114)
12    Sec. 14-114. Automatic increase in retirement annuity.
13    (a) This subsection (a) is subject to subsections (a-1) and
14(a-2) of this Section. Any person receiving a retirement
15annuity under this Article who retires having attained age 60,
16or who retires before age 60 having at least 35 years of
17creditable service, or who retires on or after January 1, 2001
18at an age which, when added to the number of years of his or her
19creditable service, equals at least 85, shall, on January 1
20next following the first full year of retirement, have the
21amount of the then fixed and payable monthly retirement annuity
22increased 3%. Any person receiving a retirement annuity under
23this Article who retires before attainment of age 60 and with
24less than (i) 35 years of creditable service if retirement is
25before January 1, 2001, or (ii) the number of years of

 

 

SB0001 Enrolled- 130 -LRB098 05457 JDS 35491 b

1creditable service which, when added to the member's age, would
2equal 85, if retirement is on or after January 1, 2001, shall
3have the amount of the fixed and payable retirement annuity
4increased by 3% on the January 1 occurring on or next following
5(1) attainment of age 60, or (2) the first anniversary of
6retirement, whichever occurs later. However, for persons who
7receive the alternative retirement annuity under Section
814-110, references in this subsection (a) to attainment of age
960 shall be deemed to refer to attainment of age 55. For a
10person receiving early retirement incentives under Section
1114-108.3 whose retirement annuity began after January 1, 1992
12pursuant to an extension granted under subsection (e) of that
13Section, the first anniversary of retirement shall be deemed to
14be January 1, 1993. For a person who retires on or after June
1528, 2001 and on or before October 1, 2001, and whose retirement
16annuity is calculated, in whole or in part, under Section
1714-110 or subsection (g) or (h) of Section 14-108, the first
18anniversary of retirement shall be deemed to be January 1,
192002.
20    On each January 1 following the date of the initial
21increase under this subsection, the employee's monthly
22retirement annuity shall be increased by an additional 3%.
23    Beginning January 1, 1990, all automatic annual increases
24payable under this Section shall be calculated as a percentage
25of the total annuity payable at the time of the increase,
26including previous increases granted under this Article.

 

 

SB0001 Enrolled- 131 -LRB098 05457 JDS 35491 b

1    (a-1) Notwithstanding subsection (a), but subject to the
2provisions of subsection (a-2), all automatic increases
3payable under subsection (a) on or after the effective date of
4this amendatory Act of the 98th General Assembly shall be
5calculated as 3% of the lesser of (1) the total annuity payable
6at the time of the increase, including previous increases
7granted, or (2) $800 ($1,000 for portions of the annuity based
8on service as a noncovered employee) multiplied by the number
9of years of creditable service upon which the annuity is based.
10    Beginning January 1, 2016, the $800 ($1,000 for portions of
11the annuity based on service as a noncovered employee) referred
12in item (2) of this subsection (a-1) shall be increased on each
13January 1 by the annual unadjusted percentage increase (but not
14less than zero) in the consumer price index-u for the 12 months
15ending with the preceding September; these adjustments shall be
16cumulative and compounded. For the purposes of this subsection
17(a-1), "consumer price index-u" means the index published by
18the Bureau of Labor Statistics of the United States Department
19of Labor that measures the average change in prices of goods
20and services purchased by all urban consumers, United States
21city average, all items, 1982-84 = 100. The new dollar amount
22resulting from each annual adjustment shall be determined by
23the Public Pension Division of the Department of Insurance and
24made available to the System by November 1 of each year.
25    This subsection (a-1) is applicable without regard to
26whether the person is in service on or after the effective date

 

 

SB0001 Enrolled- 132 -LRB098 05457 JDS 35491 b

1of this amendatory Act of the 98th General Assembly.
2    (a-2) Notwithstanding subsections (a) and (a-1), for an
3active or inactive Tier 1 member who has not begun to receive a
4retirement annuity under this Article before July 1, 2014:
5        (1) the second automatic annual increase payable under
6    subsection (a) shall be at the rate of 0% of the total
7    annuity payable at the time of the increase if he or she is
8    at least age 50 on the effective date of this amendatory
9    Act;
10        (2) the second, fourth, and sixth automatic annual
11    increases payable under subsection (a) shall be at the rate
12    of 0% of the total annuity payable at the time of the
13    increase if he or she is at least age 47 but less than age
14    50 on the effective date of this amendatory Act;
15        (3) the second, fourth, sixth, and eighth automatic
16    annual increases payable under subsection (a) shall be at
17    the rate of 0% of the total annuity payable at the time of
18    the increase if he or she is at least age 44 but less than
19    age 47 on the effective date of this amendatory Act; and
20        (4) the second, fourth, sixth, eighth, and tenth
21    automatic annual increases payable under subsection (a)
22    shall be at the rate of 0% of the total annuity payable at
23    the time of the increase if he or she is less than age 44 on
24    the effective date of this amendatory Act.
25    For the purposes of Section 1-103.1, this subsection (a-2)
26is applicable without regard to whether the person is in

 

 

SB0001 Enrolled- 133 -LRB098 05457 JDS 35491 b

1service on or after the effective date of this amendatory Act
2of the 98th General Assembly.
3    (b) The provisions of subsection (a) of this Section shall
4be applicable to an employee only if the employee makes the
5additional contributions required after December 31, 1969 for
6the purpose of the automatic increases for not less than the
7equivalent of one full year. If an employee becomes an
8annuitant before his additional contributions equal one full
9year's contributions based on his salary at the date of
10retirement, the employee may pay the necessary balance of the
11contributions to the system, without interest, and be eligible
12for the increasing annuity authorized by this Section.
13    (c) The provisions of subsection (a) of this Section shall
14not be applicable to any annuitant who is on retirement on
15December 31, 1969, and thereafter returns to State service,
16unless the member has established at least one year of
17additional creditable service following reentry into service.
18    (d) In addition to other increases which may be provided by
19this Section, on January 1, 1981 any annuitant who was
20receiving a retirement annuity on or before January 1, 1971
21shall have his retirement annuity then being paid increased $1
22per month for each year of creditable service. On January 1,
231982, any annuitant who began receiving a retirement annuity on
24or before January 1, 1977, shall have his retirement annuity
25then being paid increased $1 per month for each year of
26creditable service.

 

 

SB0001 Enrolled- 134 -LRB098 05457 JDS 35491 b

1    On January 1, 1987, any annuitant who began receiving a
2retirement annuity on or before January 1, 1977, shall have the
3monthly retirement annuity increased by an amount equal to 8
4per year of creditable service times the number of years that
5have elapsed since the annuity began.
6    (e) Every person who receives the alternative retirement
7annuity under Section 14-110 and who is eligible to receive the
83% increase under subsection (a) on January 1, 1986, shall also
9receive on that date a one-time increase in retirement annuity
10equal to the difference between (1) his actual retirement
11annuity on that date, including any increases received under
12subsection (a), and (2) the amount of retirement annuity he
13would have received on that date if the amendments to
14subsection (a) made by Public Act 84-162 had been in effect
15since the date of his retirement.
16(Source: P.A. 91-927, eff. 12-14-00; 92-14, eff. 6-28-01;
1792-651, eff. 7-11-02.)
 
18    (40 ILCS 5/14-115)  (from Ch. 108 1/2, par. 14-115)
19    Sec. 14-115. Supplemental Annuity.
20    (a) Each annuitant, who retired at age 55 or over and after
21the completion of at least 15 years of creditable service,
22whose status as an employee terminated before January 1, 1970,
23is entitled to a monthly supplemental annuity effective January
241, 1970, or on January 1 nearest the annuitant's 65th birthday,
25whichever is later. Such supplemental annuity shall be 1-1/2%

 

 

SB0001 Enrolled- 135 -LRB098 05457 JDS 35491 b

1of the monthly retirement annuity, multiplied by the number of
2full years which elapsed from the date of the member's latest
3retirement to the effective date of the supplemental annuity.
4This monthly supplemental annuity shall be increased on each
5January 1 thereafter during the lifetime of the annuitant by
61-1/2% of the monthly retirement annuity disregarding any
7supplemental annuity previously granted. Beginning January 1,
81972, the rate of increase in the supplemental annuity shall be
92%. Beginning January 1, 1979, the rate of increase in the
10supplemental annuity shall be 3%.
11    The supplemental annuity under this subsection is payable
12only if the annuitant pays to the System, in a single sum, an
13amount equal to 1% of his monthly final average compensation
14multiplied by the number of full years of creditable service.
15    (b) Any member who retired with less than 15 years of
16creditable service whose status as an employee terminated
17before January 1, 1970, shall be entitled to an increase of 3%
18of the original monthly retirement allowance, effective
19January 1, 1982, or on January 1 nearest the annuitant's 65th
20birthday, whichever is later. On each January 1 thereafter
21during the lifetime of the member, he shall be entitled to an
22additional increase of 3% of the original monthly retirement
23allowance. No qualifying contribution is required for the
24supplemental annuity under this subsection.
25    (c) Beginning January 1, 1990, all automatic annual
26increases payable under this Section shall be calculated as a

 

 

SB0001 Enrolled- 136 -LRB098 05457 JDS 35491 b

1percentage of the total monthly amount of annuity payable at
2the time of the increase, including any supplemental annuity or
3other increase previously granted under this Article.
4    (d) Notwithstanding any other provision of this Section,
5all increases payable under this Section on or after the
6effective date of this amendatory Act of the 98th General
7Assembly shall be calculated as 3% of the lesser of (1) the
8total annuity payable at the time of the increase, including
9previous increases granted, or (2) $800 ($1,000 for portions of
10the annuity based on service as a noncovered employee)
11multiplied by the number of years of creditable service upon
12which the annuity is based.
13    Beginning January 1, 2016, the $800 ($1,000 for portions of
14the annuity based on service as a noncovered employee) referred
15in item (2) of this subsection (d) shall be increased on each
16January 1 by the annual unadjusted percentage increase (but not
17less than zero) in the consumer price index-u for the 12 months
18ending with the preceding September; these adjustments shall be
19cumulative and compounded. For the purposes of this subsection
20(d), "consumer price index-u" means the index published by the
21Bureau of Labor Statistics of the United States Department of
22Labor that measures the average change in prices of goods and
23services purchased by all urban consumers, United States city
24average, all items, 1982-84 = 100. The new dollar amount
25resulting from each annual adjustment shall be determined by
26the Public Pension Division of the Department of Insurance and

 

 

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1made available to the System by November 1 of each year.
2    This subsection (d) is applicable without regard to whether
3the person is in service on or after the effective date of this
4amendatory Act of the 98th General Assembly.
5(Source: P.A. 86-273.)
 
6    (40 ILCS 5/14-131)
7    Sec. 14-131. Contributions by State.
8    (a) The State shall make contributions to the System by
9appropriations of amounts which, together with other employer
10contributions from trust, federal, and other funds, employee
11contributions, investment income, and other income, will be
12sufficient to meet the cost of maintaining and administering
13the System on a 100% 90% funded basis in accordance with
14actuarial recommendations by the end of State fiscal year 2044.
15    For the purposes of this Section and Section 14-135.08,
16references to State contributions refer only to employer
17contributions and do not include employee contributions that
18are picked up or otherwise paid by the State or a department on
19behalf of the employee.
20    (b) The Board shall determine the total amount of State
21contributions required for each fiscal year on the basis of the
22actuarial tables and other assumptions adopted by the Board,
23using the formula in subsection (e).
24    The Board shall also determine a State contribution rate
25for each fiscal year, expressed as a percentage of payroll,

 

 

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1based on the total required State contribution for that fiscal
2year (less the amount received by the System from
3appropriations under Section 8.12 of the State Finance Act and
4Section 1 of the State Pension Funds Continuing Appropriation
5Act, if any, for the fiscal year ending on the June 30
6immediately preceding the applicable November 15 certification
7deadline), the estimated payroll (including all forms of
8compensation) for personal services rendered by eligible
9employees, and the recommendations of the actuary.
10    For the purposes of this Section and Section 14.1 of the
11State Finance Act, the term "eligible employees" includes
12employees who participate in the System, persons who may elect
13to participate in the System but have not so elected, persons
14who are serving a qualifying period that is required for
15participation, and annuitants employed by a department as
16described in subdivision (a)(1) or (a)(2) of Section 14-111.
17    (c) Contributions shall be made by the several departments
18for each pay period by warrants drawn by the State Comptroller
19against their respective funds or appropriations based upon
20vouchers stating the amount to be so contributed. These amounts
21shall be based on the full rate certified by the Board under
22Section 14-135.08 for that fiscal year. From the effective date
23of this amendatory Act of the 93rd General Assembly through the
24payment of the final payroll from fiscal year 2004
25appropriations, the several departments shall not make
26contributions for the remainder of fiscal year 2004 but shall

 

 

SB0001 Enrolled- 139 -LRB098 05457 JDS 35491 b

1instead make payments as required under subsection (a-1) of
2Section 14.1 of the State Finance Act. The several departments
3shall resume those contributions at the commencement of fiscal
4year 2005.
5    (c-1) Notwithstanding subsection (c) of this Section, for
6fiscal years 2010, 2012, 2013, and 2014 only, contributions by
7the several departments are not required to be made for General
8Revenue Funds payrolls processed by the Comptroller. Payrolls
9paid by the several departments from all other State funds must
10continue to be processed pursuant to subsection (c) of this
11Section.
12    (c-2) For State fiscal years 2010, 2012, 2013, and 2014
13only, on or as soon as possible after the 15th day of each
14month, the Board shall submit vouchers for payment of State
15contributions to the System, in a total monthly amount of
16one-twelfth of the fiscal year General Revenue Fund
17contribution as certified by the System pursuant to Section
1814-135.08 of the Illinois Pension Code.
19    (d) If an employee is paid from trust funds or federal
20funds, the department or other employer shall pay employer
21contributions from those funds to the System at the certified
22rate, unless the terms of the trust or the federal-State
23agreement preclude the use of the funds for that purpose, in
24which case the required employer contributions shall be paid by
25the State. From the effective date of this amendatory Act of
26the 93rd General Assembly through the payment of the final

 

 

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1payroll from fiscal year 2004 appropriations, the department or
2other employer shall not pay contributions for the remainder of
3fiscal year 2004 but shall instead make payments as required
4under subsection (a-1) of Section 14.1 of the State Finance
5Act. The department or other employer shall resume payment of
6contributions at the commencement of fiscal year 2005.
7    (e) For State fiscal years 2015 through 2044, the minimum
8contribution to the System to be made by the State for each
9fiscal year shall be an amount determined by the System to be
10equal to the sum of (1) the State's portion of the projected
11normal cost for that fiscal year, plus (2) an amount sufficient
12to bring the total assets of the System up to 100% of the total
13actuarial liabilities of the System by the end of State fiscal
14year 2044. In making these determinations, the required State
15contribution shall be calculated each year as a level
16percentage of payroll over the years remaining to and including
17fiscal year 2044 and shall be determined under the projected
18unit cost method for fiscal year 2015 and under the entry age
19normal actuarial cost method for fiscal years 2016 through
202044.
21    For State fiscal years 2012 through 2014 2045, the minimum
22contribution to the System to be made by the State for each
23fiscal year shall be an amount determined by the System to be
24sufficient to bring the total assets of the System up to 90% of
25the total actuarial liabilities of the System by the end of
26State fiscal year 2045. In making these determinations, the

 

 

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1required State contribution shall be calculated each year as a
2level percentage of payroll over the years remaining to and
3including fiscal year 2045 and shall be determined under the
4projected unit credit actuarial cost method.
5    For State fiscal years 1996 through 2005, the State
6contribution to the System, as a percentage of the applicable
7employee payroll, shall be increased in equal annual increments
8so that by State fiscal year 2011, the State is contributing at
9the rate required under this Section; except that (i) for State
10fiscal year 1998, for all purposes of this Code and any other
11law of this State, the certified percentage of the applicable
12employee payroll shall be 5.052% for employees earning eligible
13creditable service under Section 14-110 and 6.500% for all
14other employees, notwithstanding any contrary certification
15made under Section 14-135.08 before the effective date of this
16amendatory Act of 1997, and (ii) in the following specified
17State fiscal years, the State contribution to the System shall
18not be less than the following indicated percentages of the
19applicable employee payroll, even if the indicated percentage
20will produce a State contribution in excess of the amount
21otherwise required under this subsection and subsection (a):
229.8% in FY 1999; 10.0% in FY 2000; 10.2% in FY 2001; 10.4% in FY
232002; 10.6% in FY 2003; and 10.8% in FY 2004.
24    Notwithstanding any other provision of this Article, the
25total required State contribution to the System for State
26fiscal year 2006 is $203,783,900.

 

 

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1    Notwithstanding any other provision of this Article, the
2total required State contribution to the System for State
3fiscal year 2007 is $344,164,400.
4    For each of State fiscal years 2008 through 2009, the State
5contribution to the System, as a percentage of the applicable
6employee payroll, shall be increased in equal annual increments
7from the required State contribution for State fiscal year
82007, so that by State fiscal year 2011, the State is
9contributing at the rate otherwise required under this Section.
10    Notwithstanding any other provision of this Article, the
11total required State General Revenue Fund contribution for
12State fiscal year 2010 is $723,703,100 and shall be made from
13the proceeds of bonds sold in fiscal year 2010 pursuant to
14Section 7.2 of the General Obligation Bond Act, less (i) the
15pro rata share of bond sale expenses determined by the System's
16share of total bond proceeds, (ii) any amounts received from
17the General Revenue Fund in fiscal year 2010, and (iii) any
18reduction in bond proceeds due to the issuance of discounted
19bonds, if applicable.
20    Notwithstanding any other provision of this Article, the
21total required State General Revenue Fund contribution for
22State fiscal year 2011 is the amount recertified by the System
23on or before April 1, 2011 pursuant to Section 14-135.08 and
24shall be made from the proceeds of bonds sold in fiscal year
252011 pursuant to Section 7.2 of the General Obligation Bond
26Act, less (i) the pro rata share of bond sale expenses

 

 

SB0001 Enrolled- 143 -LRB098 05457 JDS 35491 b

1determined by the System's share of total bond proceeds, (ii)
2any amounts received from the General Revenue Fund in fiscal
3year 2011, and (iii) any reduction in bond proceeds due to the
4issuance of discounted bonds, if applicable.
5    Beginning in State fiscal year 2045, the minimum State
6contribution for each fiscal year shall be the amount needed to
7maintain the total assets of the System at 100% of the total
8actuarial liabilities of the System.
9    Beginning in State fiscal year 2046, the minimum State
10contribution for each fiscal year shall be the amount needed to
11maintain the total assets of the System at 90% of the total
12actuarial liabilities of the System.
13    Amounts received by the System pursuant to Section 25 of
14the Budget Stabilization Act or Section 8.12 of the State
15Finance Act in any fiscal year do not reduce and do not
16constitute payment of any portion of the minimum State
17contribution required under this Article in that fiscal year.
18Such amounts shall not reduce, and shall not be included in the
19calculation of, the required State contributions under this
20Article in any future year until the System has reached a
21funding ratio of at least 100% 90%. A reference in this Article
22to the "required State contribution" or any substantially
23similar term does not include or apply to any amounts payable
24to the System under Section 25 of the Budget Stabilization Act.
25    Notwithstanding any other provision of this Section, the
26required State contribution for State fiscal year 2005 and for

 

 

SB0001 Enrolled- 144 -LRB098 05457 JDS 35491 b

1fiscal year 2008 and each fiscal year thereafter through State
2fiscal year 2014, as calculated under this Section and
3certified under Section 14-135.08, shall not exceed an amount
4equal to (i) the amount of the required State contribution that
5would have been calculated under this Section for that fiscal
6year if the System had not received any payments under
7subsection (d) of Section 7.2 of the General Obligation Bond
8Act, minus (ii) the portion of the State's total debt service
9payments for that fiscal year on the bonds issued in fiscal
10year 2003 for the purposes of that Section 7.2, as determined
11and certified by the Comptroller, that is the same as the
12System's portion of the total moneys distributed under
13subsection (d) of Section 7.2 of the General Obligation Bond
14Act. In determining this maximum for State fiscal years 2008
15through 2010, however, the amount referred to in item (i) shall
16be increased, as a percentage of the applicable employee
17payroll, in equal increments calculated from the sum of the
18required State contribution for State fiscal year 2007 plus the
19applicable portion of the State's total debt service payments
20for fiscal year 2007 on the bonds issued in fiscal year 2003
21for the purposes of Section 7.2 of the General Obligation Bond
22Act, so that, by State fiscal year 2011, the State is
23contributing at the rate otherwise required under this Section.
24    (f) After the submission of all payments for eligible
25employees from personal services line items in fiscal year 2004
26have been made, the Comptroller shall provide to the System a

 

 

SB0001 Enrolled- 145 -LRB098 05457 JDS 35491 b

1certification of the sum of all fiscal year 2004 expenditures
2for personal services that would have been covered by payments
3to the System under this Section if the provisions of this
4amendatory Act of the 93rd General Assembly had not been
5enacted. Upon receipt of the certification, the System shall
6determine the amount due to the System based on the full rate
7certified by the Board under Section 14-135.08 for fiscal year
82004 in order to meet the State's obligation under this
9Section. The System shall compare this amount due to the amount
10received by the System in fiscal year 2004 through payments
11under this Section and under Section 6z-61 of the State Finance
12Act. If the amount due is more than the amount received, the
13difference shall be termed the "Fiscal Year 2004 Shortfall" for
14purposes of this Section, and the Fiscal Year 2004 Shortfall
15shall be satisfied under Section 1.2 of the State Pension Funds
16Continuing Appropriation Act. If the amount due is less than
17the amount received, the difference shall be termed the "Fiscal
18Year 2004 Overpayment" for purposes of this Section, and the
19Fiscal Year 2004 Overpayment shall be repaid by the System to
20the Pension Contribution Fund as soon as practicable after the
21certification.
22    (g) 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

 

 

SB0001 Enrolled- 146 -LRB098 05457 JDS 35491 b

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    (h) 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    (i) After the submission of all payments for eligible
12employees from personal services line items paid from the
13General Revenue Fund in fiscal year 2010 have been made, the
14Comptroller shall provide to the System a certification of the
15sum of all fiscal year 2010 expenditures for personal services
16that would have been covered by payments to the System under
17this Section if the provisions of this amendatory Act of the
1896th General Assembly had not been enacted. Upon receipt of the
19certification, the System shall determine the amount due to the
20System based on the full rate certified by the Board under
21Section 14-135.08 for fiscal year 2010 in order to meet the
22State's obligation under this Section. The System shall compare
23this amount due to the amount received by the System in fiscal
24year 2010 through payments under this Section. If the amount
25due is more than the amount received, the difference shall be
26termed the "Fiscal Year 2010 Shortfall" for purposes of this

 

 

SB0001 Enrolled- 147 -LRB098 05457 JDS 35491 b

1Section, and the Fiscal Year 2010 Shortfall shall be satisfied
2under Section 1.2 of the State Pension Funds Continuing
3Appropriation Act. If the amount due is less than the amount
4received, the difference shall be termed the "Fiscal Year 2010
5Overpayment" for purposes of this Section, and the Fiscal Year
62010 Overpayment shall be repaid by the System to the General
7Revenue Fund as soon as practicable after the certification.
8    (j) After the submission of all payments for eligible
9employees from personal services line items paid from the
10General Revenue Fund in fiscal year 2011 have been made, the
11Comptroller shall provide to the System a certification of the
12sum of all fiscal year 2011 expenditures for personal services
13that would have been covered by payments to the System under
14this Section if the provisions of this amendatory Act of the
1596th General Assembly had not been enacted. Upon receipt of the
16certification, the System shall determine the amount due to the
17System based on the full rate certified by the Board under
18Section 14-135.08 for fiscal year 2011 in order to meet the
19State's obligation under this Section. The System shall compare
20this amount due to the amount received by the System in fiscal
21year 2011 through payments under this Section. If the amount
22due is more than the amount received, the difference shall be
23termed the "Fiscal Year 2011 Shortfall" for purposes of this
24Section, and the Fiscal Year 2011 Shortfall shall be satisfied
25under Section 1.2 of the State Pension Funds Continuing
26Appropriation Act. If the amount due is less than the amount

 

 

SB0001 Enrolled- 148 -LRB098 05457 JDS 35491 b

1received, the difference shall be termed the "Fiscal Year 2011
2Overpayment" for purposes of this Section, and the Fiscal Year
32011 Overpayment shall be repaid by the System to the General
4Revenue Fund as soon as practicable after the certification.
5    (k) For fiscal years 2012 through 2014 only, after the
6submission of all payments for eligible employees from personal
7services line items paid from the General Revenue Fund in the
8fiscal year have been made, the Comptroller shall provide to
9the System a certification of the sum of all expenditures in
10the fiscal year for personal services. Upon receipt of the
11certification, the System shall determine the amount due to the
12System based on the full rate certified by the Board under
13Section 14-135.08 for the fiscal year in order to meet the
14State's obligation under this Section. The System shall compare
15this amount due to the amount received by the System for the
16fiscal year. If the amount due is more than the amount
17received, the difference shall be termed the "Prior Fiscal Year
18Shortfall" for purposes of this Section, and the Prior Fiscal
19Year Shortfall shall be satisfied under Section 1.2 of the
20State Pension Funds Continuing Appropriation Act. If the amount
21due is less than the amount received, the difference shall be
22termed the "Prior Fiscal Year Overpayment" for purposes of this
23Section, and the Prior Fiscal Year Overpayment shall be repaid
24by the System to the General Revenue Fund as soon as
25practicable after the certification.
26(Source: P.A. 97-72, eff. 7-1-11; 97-732, eff. 6-30-12; 98-24,

 

 

SB0001 Enrolled- 149 -LRB098 05457 JDS 35491 b

1eff. 6-19-13.)
 
2    (40 ILCS 5/14-132)  (from Ch. 108 1/2, par. 14-132)
3    Sec. 14-132. Obligations of State; funding guarantee.
4    (a) The payment of the required department contributions,
5all allowances, annuities, benefits granted under this
6Article, and all expenses of administration of the system are
7obligations of the State of Illinois to the extent specified in
8this Article.
9    (b) All income of the system shall be credited to a
10separate account for this system in the State treasury and
11shall be used to pay allowances, annuities, benefits and
12administration expense.
13    (c) Beginning July 1, 2014, the State shall be obligated to
14contribute to the System in each State fiscal year an amount
15not less than the sum of (i) the State's normal cost for the
16year and (ii) the portion of the unfunded accrued liability
17assigned to that year by law. Notwithstanding any other
18provision of law, if the State fails to pay an amount required
19under this subsection, it shall be the obligation of the Board
20to seek payment of the required amount in compliance with the
21provisions of this Section and, if the amount remains unpaid,
22to bring a mandamus action in the Supreme Court of Illinois to
23compel the State to make the required payment.
24    If the System submits a voucher for contributions required
25under Section 14-131 and the State fails to pay that voucher

 

 

SB0001 Enrolled- 150 -LRB098 05457 JDS 35491 b

1within 90 days of its receipt, the Board shall submit a written
2request to the Comptroller seeking payment. A copy of the
3request shall be filed with the Secretary of State, and the
4Secretary of State shall provide a copy to the Governor and
5General Assembly. No earlier than the 16th day after the System
6files the request with the Comptroller and Secretary of State,
7if the amount remains unpaid the Board shall commence a
8mandamus action in the Supreme Court of Illinois to compel the
9Comptroller to satisfy the voucher.
10    This subsection (c) constitutes an express waiver of the
11State's sovereign immunity solely to the extent that it permits
12the Board to commence a mandamus action in the Supreme Court of
13Illinois to compel the Comptroller to pay a voucher for the
14contributions required under Section 14-131.
15    (d) Beginning in State fiscal year 2016, the State shall be
16obligated to make the transfers set forth in subsections (c-5)
17and (c-10) of Section 20 of the Budget Stabilization Act and to
18pay to the System its proportionate share of the transferred
19amounts in accordance with Section 25 of the Budget
20Stabilization Act. Notwithstanding any other provision of law,
21if the State fails to transfer an amount required under this
22subsection or to pay to the System its proportionate share of
23the transferred amount in accordance with Section 25 of the
24Budget Stabilization Act, it shall be the obligation of the
25Board to seek transfer or payment of the required amount in
26compliance with the provisions of this Section and, if the

 

 

SB0001 Enrolled- 151 -LRB098 05457 JDS 35491 b

1required amount remains untransferred or the required payment
2remains unpaid, to bring a mandamus action in the Supreme Court
3of Illinois to compel the State to make the required transfer
4or payment or both, as the case may be.
5    If the State fails to make a transfer required under
6subsection (c-5) or (c-10) of Section 20 of the Budget
7Stabilization Act or a payment to the System required under
8Section 25 of that Act, the Board shall submit a written
9request to the Comptroller seeking payment. A copy of the
10request shall be filed with the Secretary of State, and the
11Secretary of State shall provide a copy to the Governor and
12General Assembly. No earlier than the 16th day after the System
13files the request with the Comptroller and Secretary of State,
14if the required amount remains untransferred or the required
15payment remains unpaid, the Board shall commence a mandamus
16action in the Supreme Court of Illinois to compel the
17Comptroller to make the required transfer or payment or both,
18as the case may be.
19    This subsection (d) constitutes an express waiver of the
20State's sovereign immunity solely to the extent that it permits
21the Board to commence a mandamus action in the Supreme Court of
22Illinois to compel the Comptroller to make a transfer required
23under subsection (c-5) or (c-10) of Section 20 of the Budget
24Stabilization Act and to pay to the System its proportionate
25share of the transferred amount in accordance with Section 25
26of the Budget Stabilization Act.

 

 

SB0001 Enrolled- 152 -LRB098 05457 JDS 35491 b

1    The obligations created by this subsection (d) expire when
2all of the requirements of subsections (c-5) and (c-10) of
3Section 20 of the Budget Stabilization Act and Section 25 of
4the Budget Stabilization Act have been met.
5    (e) Any payments and transfers required to be made by the
6State pursuant to subsection (c) or (d) are expressly
7subordinate to the payment of the principal, interest, and
8premium, if any, on any bonded debt obligation of the State or
9any other State-created entity, either currently outstanding
10or to be issued, for which the source of repayment or security
11thereon is derived directly or indirectly from tax revenues
12collected by the State or any other State-created entity.
13Payments on such bonded obligations include any statutory fund
14transfers or other prefunding mechanisms or formulas set forth,
15now or hereafter, in State law or bond indentures, into debt
16service funds or accounts of the State related to such bond
17obligations, consistent with the payment schedules associated
18with such obligations.
19(Source: P.A. 80-841.)
 
20    (40 ILCS 5/14-133)  (from Ch. 108 1/2, par. 14-133)
21    Sec. 14-133. Contributions on behalf of members.
22    (a) Except as provided in subsection (a-5), each Each
23participating employee shall make contributions to the System,
24based on the employee's compensation, as follows:
25        (1) Covered employees, except as indicated below, 3.5%

 

 

SB0001 Enrolled- 153 -LRB098 05457 JDS 35491 b

1    for retirement annuity, and 0.5% for a widow or survivors
2    annuity;
3        (2) Noncovered employees, except as indicated below,
4    7% for retirement annuity and 1% for a widow or survivors
5    annuity;
6        (3) Noncovered employees serving in a position in which
7    "eligible creditable service" as defined in Section 14-110
8    may be earned, 1% for a widow or survivors annuity plus the
9    following amount for retirement annuity: 8.5% through
10    December 31, 2001; 9.5% in 2002; 10.5% in 2003; and 11.5%
11    in 2004 and thereafter;
12        (4) Covered employees serving in a position in which
13    "eligible creditable service" as defined in Section 14-110
14    may be earned, 0.5% for a widow or survivors annuity plus
15    the following amount for retirement annuity: 5% through
16    December 31, 2001; 6% in 2002; 7% in 2003; and 8% in 2004
17    and thereafter;
18        (5) Each security employee of the Department of
19    Corrections or of the Department of Human Services who is a
20    covered employee, 0.5% for a widow or survivors annuity
21    plus the following amount for retirement annuity: 5%
22    through December 31, 2001; 6% in 2002; 7% in 2003; and 8%
23    in 2004 and thereafter;
24        (6) Each security employee of the Department of
25    Corrections or of the Department of Human Services who is
26    not a covered employee, 1% for a widow or survivors annuity

 

 

SB0001 Enrolled- 154 -LRB098 05457 JDS 35491 b

1    plus the following amount for retirement annuity: 8.5%
2    through December 31, 2001; 9.5% in 2002; 10.5% in 2003; and
3    11.5% in 2004 and thereafter.
4    (a-5) Beginning July 1, 2014, in lieu of the contributions
5otherwise required under subsection (a), each Tier 1 member who
6is a participating employee shall make contributions to the
7System, based on his or her compensation, as follows:
8        (1) Covered employees, except as indicated below, 2.5%
9    for retirement annuity, and 0.5% for a widow or survivors
10    annuity;
11        (2) Noncovered employees, except as indicated below,
12    6% for retirement annuity and 1% for a widow or survivors
13    annuity;
14        (3) Noncovered employees serving in a position in which
15    "eligible creditable service" as defined in Section 14-110
16    may be earned, 10.5% for retirement annuity and 1% for a
17    widow or survivors annuity;
18        (4) Covered employees serving in a position in which
19    "eligible creditable service" as defined in Section 14-110
20    may be earned, 7% for retirement annuity and 0.5% for a
21    widow or survivors annuity;
22        (5) Each security employee of the Department of
23    Corrections or of the Department of Human Services who is a
24    covered employee, 7% for retirement annuity and 0.5% for a
25    widow or survivors annuity;
26        (6) Each security employee of the Department of

 

 

SB0001 Enrolled- 155 -LRB098 05457 JDS 35491 b

1    Corrections or of the Department of Human Services who is
2    not a covered employee, 10.5% for retirement annuity and 1%
3    for a widow or survivors annuity.
4    (b) Contributions shall be in the form of a deduction from
5compensation and shall be made notwithstanding that the
6compensation paid in cash to the employee shall be reduced
7thereby below the minimum prescribed by law or regulation. Each
8member is deemed to consent and agree to the deductions from
9compensation provided for in this Article, and shall receipt in
10full for salary or compensation.
11(Source: P.A. 92-14, eff. 6-28-01.)
 
12    (40 ILCS 5/14-133.5 new)
13    Sec. 14-133.5. Use of contributions for health care
14subsidies. The System shall not use any contribution received
15by the System under this Article to provide a subsidy for the
16cost of participation in a retiree health care program.
 
17    (40 ILCS 5/14-135.08)  (from Ch. 108 1/2, par. 14-135.08)
18    Sec. 14-135.08. To certify required State contributions.
19    (a) To certify to the Governor and to each department, on
20or before November 15 of each year until November 15, 2011, the
21required rate for State contributions to the System for the
22next State fiscal year, as determined under subsection (b) of
23Section 14-131. The certification to the Governor under this
24subsection (a) shall include a copy of the actuarial

 

 

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1recommendations upon which the rate is based and shall
2specifically identify the System's projected State normal cost
3for that fiscal year.
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. On or before
16January 15, 2013 and each January 15 thereafter, the Board
17shall certify to the Governor and the General Assembly the
18amount of the required State contribution for the next fiscal
19year. The Board's certification must note any deviations from
20the State Actuary's recommended changes, the reason or reasons
21for not following the State Actuary's recommended changes, and
22the fiscal impact of not following the State Actuary's
23recommended changes on the required State contribution.
24    (a-10) For purposes of Section (c-5) of Section 20 of the
25Budget Stabilization Act, on or before November 1 of each year
26beginning November 1, 2014, the Board shall determine the

 

 

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1amount of the State contribution to the System that would have
2been required for the next fiscal year if this amendatory Act
3of the 98th General Assembly had not taken effect, using the
4best and most recent available data but based on the law in
5effect on May 31, 2014. The Board shall submit to the State
6Actuary, the Governor, and the General Assembly a proposed
7certification, along with the relevant law, actuarial
8assumptions, calculations, and data upon which that
9certification is based. On or before January 1, 2015 and every
10January 1 thereafter, the State Actuary shall issue a
11preliminary report concerning the proposed certification and
12identifying, if necessary, recommended changes in actuarial
13assumptions that the Board must consider before finalizing its
14certification. On or before January 15, 2015 and every January
151 thereafter, the Board shall certify to the Governor and the
16General Assembly the amount of the State contribution to the
17System that would have been required for the next fiscal year
18if this amendatory Act of the 98th General Assembly had not
19taken effect, using the best and most recent available data but
20based on the law in effect on May 31, 2014. The Board's
21certification must note any deviations from the State Actuary's
22recommended changes, the reason or reasons for not following
23the State Actuary's recommended changes, and the impact of not
24following the State Actuary's recommended changes.
25    (b) The certifications under subsections (a) and (a-5)
26shall include an additional amount necessary to pay all

 

 

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1principal of and interest on those general obligation bonds due
2the next fiscal year authorized by Section 7.2(a) of the
3General Obligation Bond Act and issued to provide the proceeds
4deposited by the State with the System in July 2003,
5representing deposits other than amounts reserved under
6Section 7.2(c) of the General Obligation Bond Act. For State
7fiscal year 2005, the Board shall make a supplemental
8certification of the additional amount necessary to pay all
9principal of and interest on those general obligation bonds due
10in State fiscal years 2004 and 2005 authorized by Section
117.2(a) of the General Obligation Bond Act and issued to provide
12the proceeds deposited by the State with the System in July
132003, representing deposits other than amounts reserved under
14Section 7.2(c) of the General Obligation Bond Act, as soon as
15practical after the effective date of this amendatory Act of
16the 93rd General Assembly.
17    On or before May 1, 2004, the Board shall recalculate and
18recertify to the Governor and to each department the amount of
19the required State contribution to the System and the required
20rates for State contributions to the System for State fiscal
21year 2005, taking into account the amounts appropriated to and
22received by the System under subsection (d) of Section 7.2 of
23the General Obligation Bond Act.
24    On or before July 1, 2005, the Board shall recalculate and
25recertify to the Governor and to each department the amount of
26the required State contribution to the System and the required

 

 

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1rates for State contributions to the System for State fiscal
2year 2006, taking into account the changes in required State
3contributions made by this amendatory Act of the 94th General
4Assembly.
5    On or before April 1, 2011, the Board shall recalculate and
6recertify to the Governor and to each department the amount of
7the required State contribution to the System for State fiscal
8year 2011, applying the changes made by Public Act 96-889 to
9the System's assets and liabilities as of June 30, 2009 as
10though Public Act 96-889 was approved on that date.
11(Source: P.A. 96-1497, eff. 1-14-11; 96-1511, eff. 1-27-11;
1297-694, eff. 6-18-12.)
 
13    (40 ILCS 5/14-152.1)
14    Sec. 14-152.1. Application and expiration of new benefit
15increases.
16    (a) As used in this Section, "new benefit increase" means
17an increase in the amount of any benefit provided under this
18Article, or an expansion of the conditions of eligibility for
19any benefit under this Article, that results from an amendment
20to this Code that takes effect after June 1, 2005 (the
21effective date of Public Act 94-4). "New benefit increase",
22however, does not include any benefit increase resulting from
23the changes made to this Article by Public Act 96-37 or by this
24amendatory Act of the 98th 96th General Assembly.
25    (b) Notwithstanding any other provision of this Code or any

 

 

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

 

 

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1in the language enacting the new benefit increase or provided
2under subsection (c). This does not prevent the General
3Assembly from extending or re-creating a new benefit increase
4by law.
5    (e) Except as otherwise provided in the language creating
6the new benefit increase, a new benefit increase that expires
7under this Section continues to apply to persons who applied
8and qualified for the affected benefit while the new benefit
9increase was in effect and to the affected beneficiaries and
10alternate payees of such persons, but does not apply to any
11other person, including without limitation a person who
12continues in service after the expiration date and did not
13apply and qualify for the affected benefit while the new
14benefit increase was in effect.
15(Source: P.A. 96-37, eff. 7-13-09.)
 
16    (40 ILCS 5/14-155 new)
17    Sec. 14-155. Defined contribution plan.
18    (a) By July 1, 2015, the System shall prepare and implement
19a voluntary defined contribution plan for up to 5% of eligible
20active Tier 1 members. The System shall determine the 5% cap by
21the number of active Tier 1 members on the effective date of
22this Section. The defined contribution plan developed under
23this Section shall be a plan that aggregates employer and
24employee contributions in individual participant accounts
25which, after meeting any other requirements, are used for

 

 

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1payouts after retirement in accordance with this Section and
2any other applicable laws.
3    As used in this Section, "defined benefit plan" means the
4retirement plan available under this Article to Tier 1 members
5who have not made the election authorized under this Section.
6        (1) Under the defined contribution plan, an active Tier
7    1 member of this System could elect to cease accruing
8    benefits in the defined benefit plan under this Article and
9    begin accruing benefits for future service in the defined
10    contribution plan. Service credit under the defined
11    contribution plan may be used for determining retirement
12    eligibility under the defined benefit plan.
13        (2) Participants in the defined contribution plan
14    shall pay employee contributions at the same rate as Tier 1
15    members in this System who do not participate in the
16    defined contribution plan.
17        (3) State contributions shall be paid into the accounts
18    of all participants in the defined contribution plan at a
19    uniform rate, expressed as a percentage of compensation and
20    determined for each year. This rate shall be no higher than
21    the employer's normal cost for Tier 1 members in the
22    defined benefit plan for that year, as determined by the
23    System and expressed as a percentage of compensation, and
24    shall be no lower than 3% of compensation. The State shall
25    adjust this rate annually.
26        (4) The defined contribution plan shall require 5 years

 

 

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1    of participation in the defined contribution plan before
2    vesting in State contributions. If the participant fails to
3    vest in them, the State contributions, and the earnings
4    thereon, shall be forfeited.
5        (5) The defined contribution plan may provide for
6    participants in the plan to be eligible for the defined
7    disability benefits available to other participants under
8    this Article. If it does, the System shall reduce the
9    employee contributions credited to the member's defined
10    contribution plan account by an amount determined by the
11    System to cover the cost of offering such benefits.
12        (6) The defined contribution plan shall provide a
13    variety of options for investments. These options shall
14    include investments handled by the Illinois State Board of
15    Investment as well as private sector investment options.
16        (7) The defined contribution plan shall provide a
17    variety of options for payouts to retirees and their
18    survivors.
19        (8) To the extent authorized under federal law and as
20    authorized by the System, the plan shall allow former
21    participants in the plan to transfer or roll over employee
22    and vested State contributions, and the earnings thereon,
23    into other qualified retirement plans.
24        (9) The System shall reduce the employee contributions
25    credited to the member's defined contribution plan account
26    by an amount determined by the System to cover the cost of

 

 

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1    offering these benefits and any applicable administrative
2    fees.
3    (b) Only persons who are active Tier 1 members of the
4System on the effective date of this Section are eligible to
5participate in the defined contribution plan. Participation in
6the defined contribution plan shall be limited to the first 5%
7of eligible persons who elect to participate. The election to
8participate in the defined contribution plan is voluntary and
9irrevocable.
10    (c) An eligible Tier 1 employee may irrevocably elect to
11participate in the defined contribution plan by filing with the
12System a written application to participate that is received by
13the System prior to its determination that 5% of eligible
14persons have elected to participate in the defined contribution
15plan.
16    When the System first determines that 5% of eligible
17persons have elected to participate in the defined contribution
18plan, the System shall provide notice to previously eligible
19employees that the plan is no longer available and shall cease
20accepting applications to participate.
21    (d) The System shall make a good faith effort to contact
22each active Tier 1 member who is eligible to participate in the
23defined contribution plan. The System shall mail information
24describing the option to join the defined contribution plan to
25each of these employees to his or her last known address on
26file with the System. If the employee is not responsive to

 

 

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1other means of contact, it is sufficient for the System to
2publish the details of the option on its website.
3    Upon request for further information describing the
4option, the System shall provide employees with information
5from the System before exercising the option to join the plan,
6including information on the impact to their vested benefits or
7non-vested service. The individual consultation shall include
8projections of the member's defined benefits at retirement or
9earlier termination of service and the value of the member's
10account at retirement or earlier termination of service. The
11System shall not provide advice or counseling with respect to
12whether the employee should exercise the option. The System
13shall inform Tier 1 employees who are eligible to participate
14in the defined contribution plan that they may also wish to
15obtain information and counsel relating to their option from
16any other available source, including but not limited to labor
17organizations, private counsel, and financial advisors.
18    (e) In no event shall the System, its staff, its authorized
19representatives, or the Board be liable for any information
20given to an employee under this Section. The System may
21coordinate with the Illinois Department of Central Management
22Services and other retirement systems administering a defined
23contribution plan in accordance with this amendatory Act of the
2498th General Assembly to provide information concerning the
25impact of the option set forth in this Section.
26    (f) Notwithstanding any other provision of this Section, no

 

 

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1person shall begin participating in the defined contribution
2plan until it has attained qualified plan status and received
3all necessary approvals from the U.S. Internal Revenue Service.
4    (g) The System shall report on its progress under this
5Section, including the available details of the defined
6contribution plan and the System's plans for informing eligible
7Tier 1 members about the plan, to the Governor and the General
8Assembly on or before January 15, 2015.
9    (h) The Illinois State Board of Investments shall be the
10plan sponsor for the defined contribution plan established
11under this Section.
12    (i) The intent of this amendatory Act of the 98th General
13Assembly is to ensure that the State's normal cost of
14participation in the defined contribution plan is similar, and
15if possible equal, to the State's normal cost of participation
16in the defined benefit plan, unless a lower State's normal cost
17is necessary to ensure cost neutrality.
 
18    (40 ILCS 5/14-156 new)
19    Sec. 14-156. Defined contribution plan; termination. If
20the defined contribution plan is terminated or becomes
21inoperative pursuant to law, then each participant in the plan
22shall automatically be deemed to have been a contributing Tier
231 member in the System's defined benefit plan during the time
24in which he or she participated in the defined contribution
25plan, and for that purpose the System shall be entitled to

 

 

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1recover the amounts in the participant's defined contribution
2accounts.
 
3    (40 ILCS 5/15-106)  (from Ch. 108 1/2, par. 15-106)
4    Sec. 15-106. Employer. "Employer": The University of
5Illinois, Southern Illinois University, Chicago State
6University, Eastern Illinois University, Governors State
7University, Illinois State University, Northeastern Illinois
8University, Northern Illinois University, Western Illinois
9University, the State Board of Higher Education, the Illinois
10Mathematics and Science Academy, the University Civil Service
11Merit Board, the Board of Trustees of the State Universities
12Retirement System, the Illinois Community College Board,
13community college boards, any association of community college
14boards organized under Section 3-55 of the Public Community
15College Act, the Board of Examiners established under the
16Illinois Public Accounting Act, and, only during the period for
17which employer contributions required under Section 15-155 are
18paid, the following organizations: the alumni associations,
19the foundations and the athletic associations which are
20affiliated with the universities and colleges included in this
21Section as employers. An individual that begins employment
22after the effective date of this amendatory Act of the 98th
23General Assembly with an entity not defined as an employer in
24this Section shall not be deemed an employee for the purposes
25of this Article with respect to that employment and shall not

 

 

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1be eligible to participate in the System with respect to that
2employment; provided, however, that those individuals who are
3both employed and already participants in the System on the
4effective date of this amendatory Act of the 98th General
5Assembly shall be allowed to continue as participants in the
6System for the duration of that employment and continue to earn
7service credit.
8    Notwithstanding any provision of law to the contrary, an
9individual who begins employment with any of the following
10employers on or after the effective date of this amendatory Act
11of the 98th General Assembly shall not be deemed an employee
12and shall not be eligible to participate in the System with
13respect to that employment: any association of community
14college boards organized under Section 3-55 of the Public
15Community College Act, the Association of Illinois
16Middle-Grade Schools, the Illinois Association of School
17Administrators, the Illinois Association for Supervision and
18Curriculum Development, the Illinois Principals Association,
19the Illinois Association of School Business Officials, or the
20Illinois Special Olympics; provided, however, that those
21individuals who are both employed and already participants in
22the System on the effective date of this amendatory Act of the
2398th General Assembly shall be allowed to continue as
24participants in the System for the duration of that employment
25and continue to earn service credit.
26    A department as defined in Section 14-103.04 is an employer

 

 

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1for any person appointed by the Governor under the Civil
2Administrative Code of Illinois who is a participating employee
3as defined in Section 15-109. The Department of Central
4Management Services is an employer with respect to persons
5employed by the State Board of Higher Education in positions
6with the Illinois Century Network as of June 30, 2004 who
7remain continuously employed after that date by the Department
8of Central Management Services in positions with the Illinois
9Century Network, the Bureau of Communication and Computer
10Services, or, if applicable, any successor bureau.
11    The cities of Champaign and Urbana shall be considered
12employers, but only during the period for which contributions
13are required to be made under subsection (b-1) of Section
1415-155 and only with respect to individuals described in
15subsection (h) of Section 15-107.
16(Source: P.A. 95-369, eff. 8-23-07; 95-728, eff. 7-1-08 - See
17Sec. 999.)
 
18    (40 ILCS 5/15-107)  (from Ch. 108 1/2, par. 15-107)
19    Sec. 15-107. Employee.
20    (a) "Employee" means any member of the educational,
21administrative, secretarial, clerical, mechanical, labor or
22other staff of an employer whose employment is permanent and
23continuous or who is employed in a position in which services
24are expected to be rendered on a continuous basis for at least
254 months or one academic term, whichever is less, who (A)

 

 

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1receives payment for personal services on a warrant issued
2pursuant to a payroll voucher certified by an employer and
3drawn by the State Comptroller upon the State Treasurer or by
4an employer upon trust, federal or other funds, or (B) is on a
5leave of absence without pay. Employment which is irregular,
6intermittent or temporary shall not be considered continuous
7for purposes of this paragraph.
8    However, a person is not an "employee" if he or she:
9        (1) is a student enrolled in and regularly attending
10    classes in a college or university which is an employer,
11    and is employed on a temporary basis at less than full
12    time;
13        (2) is currently receiving a retirement annuity or a
14    disability retirement annuity under Section 15-153.2 from
15    this System;
16        (3) is on a military leave of absence;
17        (4) is eligible to participate in the Federal Civil
18    Service Retirement System and is currently making
19    contributions to that system based upon earnings paid by an
20    employer;
21        (5) is on leave of absence without pay for more than 60
22    days immediately following termination of disability
23    benefits under this Article;
24        (6) is hired after June 30, 1979 as a public service
25    employment program participant under the Federal
26    Comprehensive Employment and Training Act and receives

 

 

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1    earnings in whole or in part from funds provided under that
2    Act; or
3        (7) is employed on or after July 1, 1991 to perform
4    services that are excluded by subdivision (a)(7)(f) or
5    (a)(19) of Section 210 of the federal Social Security Act
6    from the definition of employment given in that Section (42
7    U.S.C. 410).
8    (b) Any employer may, by filing a written notice with the
9board, exclude from the definition of "employee" all persons
10employed pursuant to a federally funded contract entered into
11after July 1, 1982 with a federal military department in a
12program providing training in military courses to federal
13military personnel on a military site owned by the United
14States Government, if this exclusion is not prohibited by the
15federally funded contract or federal laws or rules governing
16the administration of the contract.
17    (c) Any person appointed by the Governor under the Civil
18Administrative Code of the State is an employee, if he or she
19is a participant in this system on the effective date of the
20appointment.
21    (d) A participant on lay-off status under civil service
22rules is considered an employee for not more than 120 days from
23the date of the lay-off.
24    (e) A participant is considered an employee during (1) the
25first 60 days of disability leave, (2) the period, not to
26exceed one year, in which his or her eligibility for disability

 

 

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1benefits is being considered by the board or reviewed by the
2courts, and (3) the period he or she receives disability
3benefits under the provisions of Section 15-152, workers'
4compensation or occupational disease benefits, or disability
5income under an insurance contract financed wholly or partially
6by the employer.
7    (f) Absences without pay, other than formal leaves of
8absence, of less than 30 calendar days, are not considered as
9an interruption of a person's status as an employee. If such
10absences during any period of 12 months exceed 30 work days,
11the employee status of the person is considered as interrupted
12as of the 31st work day.
13    (g) A staff member whose employment contract requires
14services during an academic term is to be considered an
15employee during the summer and other vacation periods, unless
16he or she declines an employment contract for the succeeding
17academic term or his or her employment status is otherwise
18terminated, and he or she receives no earnings during these
19periods.
20    (h) An individual who was a participating employee employed
21in the fire department of the University of Illinois's
22Champaign-Urbana campus immediately prior to the elimination
23of that fire department and who immediately after the
24elimination of that fire department became employed by the fire
25department of the City of Urbana or the City of Champaign shall
26continue to be considered as an employee for purposes of this

 

 

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1Article for so long as the individual remains employed as a
2firefighter by the City of Urbana or the City of Champaign. The
3individual shall cease to be considered an employee under this
4subsection (h) upon the first termination of the individual's
5employment as a firefighter by the City of Urbana or the City
6of Champaign.
7    (i) An individual who is employed on a full-time basis as
8an officer or employee of a statewide teacher organization that
9serves System participants or an officer of a national teacher
10organization that serves System participants may participate
11in the System and shall be deemed an employee, provided that
12(1) the individual has previously earned creditable service
13under this Article, (2) the individual files with the System an
14irrevocable election to become a participant before the
15effective date of this amendatory Act of the 97th General
16Assembly, (3) the individual does not receive credit for that
17employment under any other Article of this Code, and (4) the
18individual first became a full-time employee of the teacher
19organization and becomes a participant before the effective
20date of this amendatory Act of the 97th General Assembly. An
21employee under this subsection (i) is responsible for paying to
22the System both (A) employee contributions based on the actual
23compensation received for service with the teacher
24organization and (B) employer contributions equal to the normal
25costs (as defined in Section 15-155) resulting from that
26service; all or any part of these contributions may be paid on

 

 

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1the employee's behalf or picked up for tax purposes (if
2authorized under federal law) by the teacher organization.
3    A person who is an employee as defined in this subsection
4(i) may establish service credit for similar employment prior
5to becoming an employee under this subsection by paying to the
6System for that employment the contributions specified in this
7subsection, plus interest at the effective rate from the date
8of service to the date of payment. However, credit shall not be
9granted under this subsection for any such prior employment for
10which the applicant received credit under any other provision
11of this Code, or during which the applicant was on a leave of
12absence under Section 15-113.2.
13    (j) A person employed by the State Board of Higher
14Education in a position with the Illinois Century Network as of
15June 30, 2004 shall be considered to be an employee for so long
16as he or she remains continuously employed after that date by
17the Department of Central Management Services in a position
18with the Illinois Century Network, the Bureau of Communication
19and Computer Services, or, if applicable, any successor bureau
20and meets the requirements of subsection (a).
21    (k) In the case of doubt as to whether any person is an
22employee within the meaning of this Section, the decision of
23the Board shall be final.
24(Source: P.A. 97-651, eff. 1-5-12.)
 
25    (40 ILCS 5/15-111)  (from Ch. 108 1/2, par. 15-111)

 

 

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1    Sec. 15-111. Earnings.
2    (a) "Earnings": An amount paid for personal services equal
3to the sum of the basic compensation plus extra compensation
4for summer teaching, overtime or other extra service. For
5periods for which an employee receives service credit under
6subsection (c) of Section 15-113.1 or Section 15-113.2,
7earnings are equal to the basic compensation on which
8contributions are paid by the employee during such periods.
9Compensation for employment which is irregular, intermittent
10and temporary shall not be considered earnings, unless the
11participant is also receiving earnings from the employer as an
12employee under Section 15-107.
13    With respect to transition pay paid by the University of
14Illinois to a person who was a participating employee employed
15in the fire department of the University of Illinois's
16Champaign-Urbana campus immediately prior to the elimination
17of that fire department:
18        (1) "Earnings" includes transition pay paid to the
19    employee on or after the effective date of this amendatory
20    Act of the 91st General Assembly.
21        (2) "Earnings" includes transition pay paid to the
22    employee before the effective date of this amendatory Act
23    of the 91st General Assembly only if (i) employee
24    contributions under Section 15-157 have been withheld from
25    that transition pay or (ii) the employee pays to the System
26    before January 1, 2001 an amount representing employee

 

 

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1    contributions under Section 15-157 on that transition pay.
2    Employee contributions under item (ii) may be paid in a
3    lump sum, by withholding from additional transition pay
4    accruing before January 1, 2001, or in any other manner
5    approved by the System. Upon payment of the employee
6    contributions on transition pay, the corresponding
7    employer contributions become an obligation of the State.
8    (b) For a Tier 2 member, the annual earnings shall not
9exceed $106,800; however, that amount shall annually
10thereafter be increased by the lesser of (i) 3% of that amount,
11including all previous adjustments, or (ii) one half the annual
12unadjusted percentage increase (but not less than zero) in the
13consumer price index-u for the 12 months ending with the
14September preceding each November 1, including all previous
15adjustments.
16    For the purposes of this Section, "consumer price index u"
17means the index published by the Bureau of Labor Statistics of
18the United States Department of Labor that measures the average
19change in prices of goods and services purchased by all urban
20consumers, United States city average, all items, 1982-84 =
21100. The new amount resulting from each annual adjustment shall
22be determined by the Public Pension Division of the Department
23of Insurance and made available to the boards of the retirement
24systems and pension funds by November 1 of each year.
25    (c) Notwithstanding any other provision of this Code, the
26annual earnings of a Tier 1 member for the purposes of this

 

 

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1Code shall not exceed, for periods of service on or after the
2effective date of this amendatory Act of the 98th General
3Assembly, the greater of (i) the annual limitation determined
4from time to time under subsection (b-5) of Section 1-160 of
5this Code, (ii) the annualized rate of earnings of the Tier 1
6member as of that effective date, or (iii) the annualized rate
7of earnings of the Tier 1 member immediately preceding the
8expiration, renewal, or amendment of an employment contract or
9collective bargaining agreement in effect on that effective
10date.
11(Source: P.A. 98-92, eff. 7-16-13.)
 
12    (40 ILCS 5/15-112)  (from Ch. 108 1/2, par. 15-112)
13    Sec. 15-112. Final rate of earnings. "Final rate of
14earnings":
15    (a) This subsection (a) applies only to a Tier 1 member.
16    For an employee who is paid on an hourly basis or who
17receives an annual salary in installments during 12 months of
18each academic year, the average annual earnings during the 48
19consecutive calendar month period ending with the last day of
20final termination of employment or the 4 consecutive academic
21years of service in which the employee's earnings were the
22highest, whichever is greater. For any other employee, the
23average annual earnings during the 4 consecutive academic years
24of service in which his or her earnings were the highest. For
25an employee with less than 48 months or 4 consecutive academic

 

 

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1years of service, the average earnings during his or her entire
2period of service. The earnings of an employee with more than
336 months of service prior to the date of becoming a
4participant are, for such period, considered equal to the
5average earnings during the last 36 months of such service.
6    (b) This subsection (b) applies to a Tier 2 member.
7    For an employee who is paid on an hourly basis or who
8receives an annual salary in installments during 12 months of
9each academic year, the average annual earnings obtained by
10dividing by 8 the total earnings of the employee during the 96
11consecutive months in which the total earnings were the highest
12within the last 120 months prior to termination.
13    For any other employee, the average annual earnings during
14the 8 consecutive academic years within the 10 years prior to
15termination in which the employee's earnings were the highest.
16For an employee with less than 96 consecutive months or 8
17consecutive academic years of service, whichever is necessary,
18the average earnings during his or her entire period of
19service.
20    (c) For an employee on leave of absence with pay, or on
21leave of absence without pay who makes contributions during
22such leave, earnings are assumed to be equal to the basic
23compensation on the date the leave began.
24    (d) For an employee on disability leave, earnings are
25assumed to be equal to the basic compensation on the date
26disability occurs or the average earnings during the 24 months

 

 

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1immediately preceding the month in which disability occurs,
2whichever is greater.
3    (e) For a Tier 1 member who retires on or after the
4effective date of this amendatory Act of 1997 with at least 20
5years of service as a firefighter or police officer under this
6Article, the final rate of earnings shall be the annual rate of
7earnings received by the participant on his or her last day as
8a firefighter or police officer under this Article, if that is
9greater than the final rate of earnings as calculated under the
10other provisions of this Section.
11    (f) If a Tier 1 member is an employee for at least 6 months
12during the academic year in which his or her employment is
13terminated, the annual final rate of earnings shall be 25% of
14the sum of (1) the annual basic compensation for that year, and
15(2) the amount earned during the 36 months immediately
16preceding that year, if this is greater than the final rate of
17earnings as calculated under the other provisions of this
18Section.
19    (g) In the determination of the final rate of earnings for
20an employee, that part of an employee's earnings for any
21academic year beginning after June 30, 1997, which exceeds the
22employee's earnings with that employer for the preceding year
23by more than 20 percent shall be excluded; in the event that an
24employee has more than one employer this limitation shall be
25calculated separately for the earnings with each employer. In
26making such calculation, only the basic compensation of

 

 

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1employees shall be considered, without regard to vacation or
2overtime or to contracts for summer employment.
3    (h) The following are not considered as earnings in
4determining final rate of earnings: (1) severance or separation
5pay, (2) retirement pay, (3) payment for unused sick leave, and
6(4) payments from an employer for the period used in
7determining final rate of earnings for any purpose other than
8(i) services rendered, (ii) leave of absence or vacation
9granted during that period, and (iii) vacation of up to 56 work
10days allowed upon termination of employment; except that, if
11the benefit has been collectively bargained between the
12employer and the recognized collective bargaining agent
13pursuant to the Illinois Educational Labor Relations Act,
14payment received during a period of up to 2 academic years for
15unused sick leave may be considered as earnings in accordance
16with the applicable collective bargaining agreement, subject
17to the 20% increase limitation of this Section, and if the
18person first becomes a participant on or after the effective
19date of this amendatory Act of the 98th General Assembly,
20payments for unused sick or vacation time shall not be
21considered as earnings. Any unused sick leave considered as
22earnings under this Section shall not be taken into account in
23calculating service credit under Section 15-113.4.
24    (i) Intermittent periods of service shall be considered as
25consecutive in determining final rate of earnings.
26(Source: P.A. 98-92, eff. 7-16-13.)
 

 

 

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1    (40 ILCS 5/15-113.4)  (from Ch. 108 1/2, par. 15-113.4)
2    Sec. 15-113.4. Service for unused sick leave. "Service for
3unused sick leave": A person who first becomes a participant
4before the effective date of this amendatory Act of the 98th
5General Assembly and who is an employee under this System or
6one of the other systems subject to Article 20 of this Code
7within 60 days immediately preceding the date on which his or
8her retirement annuity begins, is entitled to credit for
9service for that portion of unused sick leave earned in the
10course of employment with an employer and credited on the date
11of termination of employment by an employer for which payment
12is not received, in accordance with the following schedule: 30
13through 90 full calendar days and 20 through 59 full work days
14of unused sick leave, 1/4 of a year of service; 91 through 180
15full calendar days and 60 through 119 full work days, 1/2 of a
16year of service; 181 through 270 full calendar days and 120
17through 179 full work days, 3/4 of a year of service; 271
18through 360 full calendar days and 180 through 240 full work
19days, one year of service. Only uncompensated, unused sick
20leave earned in accordance with an employer's sick leave
21accrual policy generally applicable to employees or a class of
22employees shall be taken into account in calculating service
23credit under this Section. Any uncompensated, unused sick leave
24granted by an employer to facilitate the hiring, retirement,
25termination, or other special circumstances of an employee

 

 

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1shall not be taken into account in calculating service credit
2under this Section. If a participant transfers from one
3employer to another, the unused sick leave credited by the
4previous employer shall be considered in determining service to
5be credited under this Section, even if the participant
6terminated service prior to the effective date of P.A. 86-272
7(August 23, 1989); if necessary, the retirement annuity shall
8be recalculated to reflect such sick leave credit. Each
9employer shall certify to the board the number of days of
10unused sick leave accrued to the participant's credit on the
11date that the participant's status as an employee terminated.
12This period of unused sick leave shall not be considered in
13determining the date the retirement annuity begins. A person
14who first becomes a participant on or after the effective date
15of this amendatory Act of the 98th General Assembly shall not
16receive service credit for unused sick leave.
17(Source: P.A. 90-65, eff. 7-7-97; 90-511, eff. 8-22-97.)
 
18    (40 ILCS 5/15-125)  (from Ch. 108 1/2, par. 15-125)
19    Sec. 15-125. "Prescribed Rate of Interest; Effective Rate
20of Interest".
21    (1) "Prescribed rate of interest": The rate of interest to
22be used in actuarial valuations and in development of actuarial
23tables as determined by the board on the basis of the probable
24average effective rate of interest on a long term basis, based
25on factors including the expected investment experience;

 

 

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1historical and expected fluctuations in the market value of
2investments; the desirability of minimizing volatility in the
3rate of investment earnings from year to year; and the
4provision of reserves for anticipated losses upon sales,
5redemptions, or other disposition of investments and for
6variations in interest experience.
7    (2) "Effective rate of interest": For a fiscal year
8concluding no later than June 30, 2014, the The interest rate
9for all or any part of a fiscal year that is determined by the
10board based on factors including the system's past and expected
11investment experience; historical and expected fluctuations in
12the market value of investments; the desirability of minimizing
13volatility in the effective rate of interest from year to year;
14and the provision of reserves for anticipated losses upon
15sales, redemptions, or other disposition of investments and for
16variations in interest experience; except that for the purpose
17of determining the accumulated normal contributions used in
18calculating retirement annuities under Rule 2 of Section
1915-136, the effective rate of interest shall be determined by
20the State Comptroller rather than the board. For a fiscal year
21concluding no later than June 30, 2014, the The State
22Comptroller shall determine the effective rate of interest to
23be used for this purpose using the factors listed above, and
24shall certify to the board and the Commission on Government
25Forecasting and Accountability the rate to be used for this
26purpose for fiscal year 2006 as soon as possible after the

 

 

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1effective date of this amendatory Act of the 94th General
2Assembly, and for each fiscal year thereafter no later than the
3January 31 immediately preceding the start of that fiscal year.
4    For a fiscal year that begins on or after July 1, 2014, the
5effective rate of interest for a given fiscal year shall be
6equal to the interest rate of 30-year United States Treasury
7bonds as of the beginning of that given fiscal year, plus 75
8basis points. This effective rate of interest shall not be used
9in determining the prescribed rate of interest as defined in
10paragraph (1) of this Section.
11    (3) The change made to this Section by Public Acts 90-65
12and 90-511 is a clarification of existing law.
13(Source: P.A. 94-4, eff. 6-1-05; 94-982, eff. 6-30-06.)
 
14    (40 ILCS 5/15-135)  (from Ch. 108 1/2, par. 15-135)
15    Sec. 15-135. Retirement annuities - Conditions.
16    (a) This subsection (a) applies only to a Tier 1 member. A
17participant who retires in one of the following specified years
18with the specified amount of service is entitled to a
19retirement annuity at any age under the retirement program
20applicable to the participant:
21        35 years if retirement is in 1997 or before;
22        34 years if retirement is in 1998;
23        33 years if retirement is in 1999;
24        32 years if retirement is in 2000;
25        31 years if retirement is in 2001;

 

 

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1        30 years if retirement is in 2002 or later.
2    A participant with 8 or more years of service after
3September 1, 1941, is entitled to a retirement annuity on or
4after attainment of age 55.
5    A participant with at least 5 but less than 8 years of
6service after September 1, 1941, is entitled to a retirement
7annuity on or after attainment of age 62.
8    A participant who has at least 25 years of service in this
9system as a police officer or firefighter is entitled to a
10retirement annuity on or after the attainment of age 50, if
11Rule 4 of Section 15-136 is applicable to the participant.
12    (a-3) Notwithstanding subsection (a) of this Section, for a
13Tier 1 member who begins receiving a retirement annuity under
14this Section on or after July 1, 2014, the required retirement
15age under subsection (a) is increased as follows, based on the
16Tier 1 member's age on June 1, 2014:
17        (1) If he or she is at least age 46 on June 1, 2014,
18    then the required retirement ages under subsection (a)
19    remain unchanged.
20        (2) If he or she is at least age 45 but less than age 46
21    on June 1, 2014, then the required retirement ages under
22    subsection (a) are increased by 4 months.
23        (3) If he or she is at least age 44 but less than age 45
24    on June 1, 2014, then the required retirement ages under
25    subsection (a) are increased by 8 months.
26        (4) If he or she is at least age 43 but less than age 44

 

 

SB0001 Enrolled- 186 -LRB098 05457 JDS 35491 b

1    on June 1, 2014, then the required retirement ages under
2    subsection (a) are increased by 12 months.
3        (5) If he or she is at least age 42 but less than age 43
4    on June 1, 2014, then the required retirement ages under
5    subsection (a) are increased by 16 months.
6        (6) If he or she is at least age 41 but less than age 42
7    on June 1, 2014, then the required retirement ages under
8    subsection (a) are increased by 20 months.
9        (7) If he or she is at least age 40 but less than age 41
10    on June 1, 2014, then the required retirement ages under
11    subsection (a) are increased by 24 months.
12        (8) If he or she is at least age 39 but less than age 40
13    on June 1, 2014, then the required retirement ages under
14    subsection (a) are increased by 28 months.
15        (9) If he or she is at least age 38 but less than age 39
16    on June 1, 2014, then the required retirement ages under
17    subsection (a) are increased by 32 months.
18        (10) If he or she is at least age 37 but less than age
19    38 on June 1, 2014, then the required retirement ages under
20    subsection (a) are increased by 36 months.
21        (11) If he or she is at least age 36 but less than age
22    37 on June 1, 2014, then the required retirement ages under
23    subsection (a) are increased by 40 months.
24        (12) If he or she is at least age 35 but less than age
25    36 on June 1, 2014, then the required retirement ages under
26    subsection (a) are increased by 44 months.

 

 

SB0001 Enrolled- 187 -LRB098 05457 JDS 35491 b

1        (13) If he or she is at least age 34 but less than age
2    35 on June 1, 2014, then the required retirement ages under
3    subsection (a) are increased by 48 months.
4        (14) If he or she is at least age 33 but less than age
5    34 on June 1, 2014, then the required retirement ages under
6    subsection (a) are increased by 52 months.
7        (15) If he or she is at least age 32 but less than age
8    33 on June 1, 2014, then the required retirement ages under
9    subsection (a) are increased by 56 months.
10        (16) If he or she is less than age 32 on June 1, 2014,
11    then the required retirement ages under subsection (a) are
12    increased by 60 months.
13    Notwithstanding Section 1-103.1, this subsection (a-3)
14applies without regard to whether or not the Tier 1 member is
15in active service under this Article on or after the effective
16date of this amendatory Act of the 98th General Assembly.
17    (a-5) A Tier 2 member is entitled to a retirement annuity
18upon written application if he or she has attained age 67 and
19has at least 10 years of service credit and is otherwise
20eligible under the requirements of this Article. A Tier 2
21member who has attained age 62 and has at least 10 years of
22service credit and is otherwise eligible under the requirements
23of this Article may elect to receive the lower retirement
24annuity provided in subsection (b-5) of Section 15-136 of this
25Article.
26    (b) The annuity payment period shall begin on the date

 

 

SB0001 Enrolled- 188 -LRB098 05457 JDS 35491 b

1specified by the participant or the recipient of a disability
2retirement annuity submitting a written application, which
3date shall not be prior to termination of employment or more
4than one year before the application is received by the board;
5however, if the participant is not an employee of an employer
6participating in this System or in a participating system as
7defined in Article 20 of this Code on April 1 of the calendar
8year next following the calendar year in which the participant
9attains age 70 1/2, the annuity payment period shall begin on
10that date regardless of whether an application has been filed.
11    (c) An annuity is not payable if the amount provided under
12Section 15-136 is less than $10 per month.
13(Source: P.A. 97-933, eff. 8-10-12; 97-968, eff. 8-16-12;
1498-92, eff. 7-16-13.)
 
15    (40 ILCS 5/15-136)  (from Ch. 108 1/2, par. 15-136)
16    Sec. 15-136. Retirement annuities - Amount. The provisions
17of this Section 15-136 apply only to those participants who are
18participating in the traditional benefit package or the
19portable benefit package and do not apply to participants who
20are participating in the self-managed plan.
21    (a) The amount of a participant's retirement annuity,
22expressed in the form of a single-life annuity, shall be
23determined by whichever of the following rules is applicable
24and provides the largest annuity:
25    Rule 1: The retirement annuity shall be 1.67% of final rate

 

 

SB0001 Enrolled- 189 -LRB098 05457 JDS 35491 b

1of earnings for each of the first 10 years of service, 1.90%
2for each of the next 10 years of service, 2.10% for each year
3of service in excess of 20 but not exceeding 30, and 2.30% for
4each year in excess of 30; or for persons who retire on or
5after January 1, 1998, 2.2% of the final rate of earnings for
6each year of service.
7    Rule 2: The retirement annuity shall be the sum of the
8following, determined from amounts credited to the participant
9in accordance with the actuarial tables and the effective rate
10of interest in effect at the time the retirement annuity
11begins:
12        (i) the normal annuity which can be provided on an
13    actuarially equivalent basis (using the effective rate of
14    interest in effect at the time of retirement for
15    retirements occurring on or after July 1, 2014), by the
16    accumulated normal contributions as of the date the annuity
17    begins;
18        (ii) an annuity from employer contributions of an
19    amount equal to that which can be provided on an
20    actuarially equivalent basis (using the effective rate of
21    interest in effect at the time of retirement for
22    retirements occurring on or after July 1, 2014) from the
23    accumulated normal contributions made by the participant
24    under Section 15-113.6 and Section 15-113.7 plus 1.4 times
25    all other accumulated normal contributions made by the
26    participant; and

 

 

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1        (iii) the annuity that can be provided on an
2    actuarially equivalent basis (using the effective rate of
3    interest in effect at the time of retirement for
4    retirements occurring on or after July 1, 2014) from the
5    entire contribution made by the participant under Section
6    15-113.3.
7    Notwithstanding any other provision of this Rule 2, a
8participant's retirement annuity calculated under this Rule 2
9shall not be less than the retirement annuity that participant
10would have received under this Rule 2 had he or she retired
11during the fiscal year preceding the effective date of this
12amendatory Act of the 98th General Assembly.
13    With respect to a police officer or firefighter who retires
14on or after August 14, 1998, the accumulated normal
15contributions taken into account under clauses (i) and (ii) of
16this Rule 2 shall include the additional normal contributions
17made by the police officer or firefighter under Section
1815-157(a).
19    The amount of a retirement annuity calculated under this
20Rule 2 shall be computed solely on the basis of the
21participant's accumulated normal contributions, as specified
22in this Rule and defined in Section 15-116. Neither an employee
23or 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 2.

 

 

SB0001 Enrolled- 191 -LRB098 05457 JDS 35491 b

1    This amendatory Act of the 91st General Assembly is a
2clarification of existing law and applies to every participant
3and annuitant without regard to whether status as an employee
4terminates before the effective date of this amendatory Act.
5    This Rule 2 does not apply to a person who first becomes an
6employee under this Article on or after July 1, 2005.
7    Rule 3: The retirement annuity of a participant who is
8employed at least one-half time during the period on which his
9or her final rate of earnings is based, shall be equal to the
10participant's years of service not to exceed 30, multiplied by
11(1) $96 if the participant's final rate of earnings is less
12than $3,500, (2) $108 if the final rate of earnings is at least
13$3,500 but less than $4,500, (3) $120 if the final rate of
14earnings is at least $4,500 but less than $5,500, (4) $132 if
15the final rate of earnings is at least $5,500 but less than
16$6,500, (5) $144 if the final rate of earnings is at least
17$6,500 but less than $7,500, (6) $156 if the final rate of
18earnings is at least $7,500 but less than $8,500, (7) $168 if
19the final rate of earnings is at least $8,500 but less than
20$9,500, and (8) $180 if the final rate of earnings is $9,500 or
21more, except that the annuity for those persons having made an
22election under Section 15-154(a-1) shall be calculated and
23payable under the portable retirement benefit program pursuant
24to the provisions of Section 15-136.4.
25    Rule 4: A participant who is at least age 50 and has 25 or
26more years of service as a police officer or firefighter, and a

 

 

SB0001 Enrolled- 192 -LRB098 05457 JDS 35491 b

1participant who is age 55 or over and has at least 20 but less
2than 25 years of service as a police officer or firefighter,
3shall be entitled to a retirement annuity of 2 1/4% of the
4final rate of earnings for each of the first 10 years of
5service as a police officer or firefighter, 2 1/2% for each of
6the next 10 years of service as a police officer or
7firefighter, and 2 3/4% for each year of service as a police
8officer or firefighter in excess of 20. The retirement annuity
9for all other service shall be computed under Rule 1. A Tier 2
10member is eligible for a retirement annuity calculated under
11Rule 4 only if that Tier 2 member meets the service
12requirements for that benefit calculation as prescribed under
13this Rule 4 in addition to the applicable age requirement under
14subsection (a-5) of Section 15-135.
15    For purposes of this Rule 4, a participant's service as a
16firefighter shall also include the following:
17        (i) service that is performed while the person is an
18    employee under subsection (h) of Section 15-107; and
19        (ii) in the case of an individual who was a
20    participating employee employed in the fire department of
21    the University of Illinois's Champaign-Urbana campus
22    immediately prior to the elimination of that fire
23    department and who immediately after the elimination of
24    that fire department transferred to another job with the
25    University of Illinois, service performed as an employee of
26    the University of Illinois in a position other than police

 

 

SB0001 Enrolled- 193 -LRB098 05457 JDS 35491 b

1    officer or firefighter, from the date of that transfer
2    until the employee's next termination of service with the
3    University of Illinois.
4    (b) For a Tier 1 member, the retirement annuity provided
5under Rules 1 and 3 above shall be reduced by 1/2 of 1% for each
6month the participant is under age 60 at the time of
7retirement. However, this reduction shall not apply in the
8following cases:
9        (1) For a disabled participant whose disability
10    benefits have been discontinued because he or she has
11    exhausted eligibility for disability benefits under clause
12    (6) of Section 15-152;
13        (2) For a participant who has at least the number of
14    years of service required to retire at any age under
15    subsection (a) of Section 15-135; or
16        (3) For that portion of a retirement annuity which has
17    been provided on account of service of the participant
18    during periods when he or she performed the duties of a
19    police officer or firefighter, if these duties were
20    performed for at least 5 years immediately preceding the
21    date the retirement annuity is to begin.
22    (b-5) The retirement annuity of a Tier 2 member who is
23retiring after attaining age 62 with at least 10 years of
24service credit shall be reduced by 1/2 of 1% for each full
25month that the member's age is under age 67.
26    (c) The maximum retirement annuity provided under Rules 1,

 

 

SB0001 Enrolled- 194 -LRB098 05457 JDS 35491 b

12, 4, and 5 shall be the lesser of (1) the annual limit of
2benefits as specified in Section 415 of the Internal Revenue
3Code of 1986, as such Section may be amended from time to time
4and as such benefit limits shall be adjusted by the
5Commissioner of Internal Revenue, and (2) 80% of final rate of
6earnings.
7    (d) This subsection (d) is subject to subsections (d-1) and
8(d-2). A Tier 1 member whose status as an employee terminates
9after August 14, 1969 shall receive automatic increases in his
10or her retirement annuity as follows:
11    Effective January 1 immediately following the date the
12retirement annuity begins, the annuitant shall receive an
13increase in his or her monthly retirement annuity of 0.125% of
14the monthly retirement annuity provided under Rule 1, Rule 2,
15Rule 3, or Rule 4 contained in this Section, multiplied by the
16number of full months which elapsed from the date the
17retirement annuity payments began to January 1, 1972, plus
180.1667% of such annuity, multiplied by the number of full
19months which elapsed from January 1, 1972, or the date the
20retirement annuity payments began, whichever is later, to
21January 1, 1978, plus 0.25% of such annuity multiplied by the
22number of full months which elapsed from January 1, 1978, or
23the date the retirement annuity payments began, whichever is
24later, to the effective date of the increase.
25    The annuitant shall receive an increase in his or her
26monthly retirement annuity on each January 1 thereafter during

 

 

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1the annuitant's life of 3% of the monthly annuity provided
2under Rule 1, Rule 2, Rule 3, or Rule 4 contained in this
3Section. The change made under this subsection by P.A. 81-970
4is effective January 1, 1980 and applies to each annuitant
5whose status as an employee terminates before or after that
6date.
7    Beginning January 1, 1990, all automatic annual increases
8payable under this Section shall be calculated as a percentage
9of the total annuity payable at the time of the increase,
10including all increases previously granted under this Article.
11    The change made in this subsection by P.A. 85-1008 is
12effective January 26, 1988, and is applicable without regard to
13whether status as an employee terminated before that date.
14    (d-1) Notwithstanding subsection (d), but subject to the
15provisions of subsection (d-2), all automatic increases
16payable under subsection (d) on or after the effective date of
17this amendatory Act of the 98th General Assembly shall be
18calculated as 3% of the lesser of (1) the total annuity payable
19at the time of the increase, including previous increases
20granted, or (2) $1,000 multiplied by the number of years of
21creditable service upon which the annuity is based; however, in
22the case of an initial increase subject to this subsection, the
23amount of that increase shall be prorated if less than one year
24has elapsed since retirement.
25    Beginning January 1, 2016, the $1,000 referred to in item
26(2) of this subsection (d-1) shall be increased on each January

 

 

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11 by the annual unadjusted percentage increase (but not less
2than zero) in the consumer price index-u for the 12 months
3ending with the preceding September; these adjustments shall be
4cumulative and compounded. For the purposes of this subsection
5(d-1), "consumer price index-u" means the index published by
6the Bureau of Labor Statistics of the United States Department
7of Labor that measures the average change in prices of goods
8and services purchased by all urban consumers, United States
9city average, all items, 1982-84 = 100. The new dollar amount
10resulting from each annual adjustment shall be determined by
11the Public Pension Division of the Department of Insurance and
12made available to the System by November 1 of each year.
13    This subsection (d-1) is applicable without regard to
14whether the person is in service on or after the effective date
15of this amendatory Act of the 98th General Assembly.
16    (d-2) Notwithstanding subsections (d) and (d-1), for an
17active or inactive Tier 1 member who has not begun to receive a
18retirement annuity under this Article before July 1, 2014:
19        (1) the automatic annual increase payable under
20    subsection (d) the second January following the date the
21    retirement annuity begins shall be equal to 0% of the total
22    annuity payable at the time of the increase, if he or she
23    is at least age 50 on the effective date of this amendatory
24    Act;
25        (2) the automatic annual increase payable under
26    subsection (d) the second, fourth, and sixth January

 

 

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1    following the date the retirement annuity begins shall be
2    equal to 0% of the total annuity payable at the time of the
3    increase, if he or she is at least age 47 but less than age
4    50 on the effective date of this amendatory Act;
5        (3) the automatic annual increase payable under
6    subsection (d) the second, fourth, sixth, and eighth
7    January following the date the retirement annuity begins
8    shall be equal to 0% of the total annuity payable at the
9    time of the increase, if he or she is at least age 44 but
10    less than age 47 on the effective date of this amendatory
11    Act;
12        (4) the automatic annual increase payable under
13    subsection (d) the second, fourth, sixth, eighth, and tenth
14    January following the date the retirement annuity begins
15    shall be equal to 0% of the total annuity payable at the
16    time of the increase, if he or she is less than age 44 on
17    the effective date of this amendatory Act.
18    (d-5) A retirement annuity of a Tier 2 member shall receive
19annual increases on the January 1 occurring either on or after
20the attainment of age 67 or the first anniversary of the
21annuity start date, whichever is later. Each annual increase
22shall be calculated at 3% or one half the annual unadjusted
23percentage increase (but not less than zero) in the consumer
24price index-u for the 12 months ending with the September
25preceding each November 1, whichever is less, of the originally
26granted retirement annuity. If the annual unadjusted

 

 

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1percentage change in the consumer price index-u for the 12
2months ending with the September preceding each November 1 is
3zero or there is a decrease, then the annuity shall not be
4increased.
5    (e) If, on January 1, 1987, or the date the retirement
6annuity payment period begins, whichever is later, the sum of
7the retirement annuity provided under Rule 1 or Rule 2 of this
8Section and the automatic annual increases provided under the
9preceding subsection or Section 15-136.1, amounts to less than
10the retirement annuity which would be provided by Rule 3, the
11retirement annuity shall be increased as of January 1, 1987, or
12the date the retirement annuity payment period begins,
13whichever is later, to the amount which would be provided by
14Rule 3 of this Section. Such increased amount shall be
15considered as the retirement annuity in determining benefits
16provided under other Sections of this Article. This paragraph
17applies without regard to whether status as an employee
18terminated before the effective date of this amendatory Act of
191987, provided that the annuitant was employed at least
20one-half time during the period on which the final rate of
21earnings was based.
22    (f) A participant is entitled to such additional annuity as
23may be provided on an actuarially equivalent basis, by any
24accumulated additional contributions to his or her credit.
25However, the additional contributions made by the participant
26toward the automatic increases in annuity provided under this

 

 

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1Section shall not be taken into account in determining the
2amount of such additional annuity.
3    (g) If, (1) by law, a function of a governmental unit, as
4defined by Section 20-107 of this Code, is transferred in whole
5or in part to an employer, and (2) a participant transfers
6employment from such governmental unit to such employer within
76 months after the transfer of the function, and (3) the sum of
8(A) the annuity payable to the participant under Rule 1, 2, or
93 of this Section (B) all proportional annuities payable to the
10participant by all other retirement systems covered by Article
1120, and (C) the initial primary insurance amount to which the
12participant is entitled under the Social Security Act, is less
13than the retirement annuity which would have been payable if
14all of the participant's pension credits validated under
15Section 20-109 had been validated under this system, a
16supplemental annuity equal to the difference in such amounts
17shall be payable to the participant.
18    (h) On January 1, 1981, an annuitant who was receiving a
19retirement annuity on or before January 1, 1971 shall have his
20or her retirement annuity then being paid increased $1 per
21month for each year of creditable service. On January 1, 1982,
22an annuitant whose retirement annuity began on or before
23January 1, 1977, shall have his or her retirement annuity then
24being paid increased $1 per month for each year of creditable
25service.
26    (i) On January 1, 1987, any annuitant whose retirement

 

 

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1annuity began on or before January 1, 1977, shall have the
2monthly retirement annuity increased by an amount equal to 8
3per year of creditable service times the number of years that
4have elapsed since the annuity began.
5    (j) For participants to whom subsection (a-3) of Section
615-135 applies, the references to age 50, 55, and 62 in this
7Section are increased as provided in subsection (a-3) of
8Section 15-135.
9(Source: P.A. 97-933, eff. 8-10-12; 97-968, eff. 8-16-12;
1098-92, eff. 7-16-13.)
 
11    (40 ILCS 5/15-155)  (from Ch. 108 1/2, par. 15-155)
12    Sec. 15-155. Employer contributions.
13    (a) The State of Illinois shall make contributions by
14appropriations of amounts which, together with the other
15employer contributions from trust, federal, and other funds,
16employee contributions, income from investments, and other
17income of this System, will be sufficient to meet the cost of
18maintaining and administering the System on a 100% 90% funded
19basis in accordance with actuarial recommendations by the end
20of State fiscal year 2044.
21    The Board shall determine the amount of State contributions
22required for each fiscal year on the basis of the actuarial
23tables and other assumptions adopted by the Board and the
24recommendations of the actuary, using the formula in subsection
25(a-1).

 

 

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1    (a-1) For State fiscal years 2015 through 2044, the minimum
2contribution to the System to be made by the State for each
3fiscal year shall be an amount determined by the System to be
4equal to the sum of (1) the State's portion of the projected
5normal cost for that fiscal year, plus (2) an amount sufficient
6to bring the total assets of the System up to 100% of the total
7actuarial liabilities of the System by the end of the State
8fiscal year 2044. In making these determinations, the required
9State contribution shall be calculated each year as a level
10percentage of payroll over the years remaining to and including
11fiscal year 2044 and shall be determined under the projected
12unit cost method for fiscal year 2015 and under the entry age
13normal actuarial cost method for fiscal years 2016 through
142044.
15    For State fiscal years 2012 through 2014 2045, 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
18sufficient to bring the total assets of the System up to 90% of
19the total actuarial liabilities of the System by the end of
20State fiscal year 2045. In making these determinations, the
21required State contribution shall be calculated each year as a
22level percentage of payroll over the years remaining to and
23including fiscal year 2045 and shall be determined under the
24projected unit credit actuarial cost method.
25    For State fiscal years 1996 through 2005, the State
26contribution to the System, as a percentage of the applicable

 

 

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1employee payroll, shall be increased in equal annual increments
2so that by State fiscal year 2011, the State is contributing at
3the rate required under this Section.
4    Notwithstanding any other provision of this Article, the
5total required State contribution for State fiscal year 2006 is
6$166,641,900.
7    Notwithstanding any other provision of this Article, the
8total required State contribution for State fiscal year 2007 is
9$252,064,100.
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$702,514,000 and shall be made from the State Pensions Fund and
19proceeds of bonds sold in fiscal year 2010 pursuant to Section
207.2 of the General Obligation Bond Act, less (i) the pro rata
21share of bond sale expenses determined by the System's share of
22total bond proceeds, (ii) any amounts received from the General
23Revenue Fund in fiscal year 2010, (iii) any reduction in bond
24proceeds due to the issuance of discounted bonds, if
25applicable.
26    Notwithstanding any other provision of this Article, the

 

 

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1total required State contribution for State fiscal year 2011 is
2the amount recertified by the System on or before April 1, 2011
3pursuant to Section 15-165 and shall be made from the State
4Pensions Fund and proceeds of bonds sold in fiscal year 2011
5pursuant to Section 7.2 of the General Obligation Bond Act,
6less (i) the pro rata share of bond sale expenses determined by
7the System's share of total bond proceeds, (ii) any amounts
8received from the General Revenue Fund in fiscal year 2011, and
9(iii) any reduction in bond proceeds due to the issuance of
10discounted bonds, if applicable.
11    Beginning in State fiscal year 2045, the minimum
12contribution for each fiscal year shall be the amount needed to
13maintain the total assets of the System at 100% of the total
14liabilities of the System.
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

 

 

SB0001 Enrolled- 204 -LRB098 05457 JDS 35491 b

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 2014, as calculated under this Section and
9certified under Section 15-165, 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

 

 

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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    (b) If an employee is paid from trust or federal funds, the
5employer shall pay to the Board contributions from those funds
6which are sufficient to cover the accruing normal costs on
7behalf of the employee. However, universities having employees
8who are compensated out of local auxiliary funds, income funds,
9or service enterprise funds are not required to pay such
10contributions on behalf of those employees. The local auxiliary
11funds, income funds, and service enterprise funds of
12universities shall not be considered trust funds for the
13purpose of this Article, but funds of alumni associations,
14foundations, and athletic associations which are affiliated
15with the universities included as employers under this Article
16and other employers which do not receive State appropriations
17are considered to be trust funds for the purpose of this
18Article.
19    (b-1) The City of Urbana and the City of Champaign shall
20each make employer contributions to this System for their
21respective firefighter employees who participate in this
22System pursuant to subsection (h) of Section 15-107. The rate
23of contributions to be made by those municipalities shall be
24determined annually by the Board on the basis of the actuarial
25assumptions adopted by the Board and the recommendations of the
26actuary, and shall be expressed as a percentage of salary for

 

 

SB0001 Enrolled- 206 -LRB098 05457 JDS 35491 b

1each such employee. The Board shall certify the rate to the
2affected municipalities as soon as may be practical. The
3employer contributions required under this subsection shall be
4remitted by the municipality to the System at the same time and
5in the same manner as employee contributions.
6    (c) Through State fiscal year 1995: The total employer
7contribution shall be apportioned among the various funds of
8the State and other employers, whether trust, federal, or other
9funds, in accordance with actuarial procedures approved by the
10Board. State of Illinois contributions for employers receiving
11State appropriations for personal services shall be payable
12from appropriations made to the employers or to the System. The
13contributions for Class I community colleges covering earnings
14other than those paid from trust and federal funds, shall be
15payable solely from appropriations to the Illinois Community
16College Board or the System for employer contributions.
17    (d) Beginning in State fiscal year 1996, the required State
18contributions to the System shall be appropriated directly to
19the System and shall be payable through vouchers issued in
20accordance with subsection (c) of Section 15-165, except as
21provided in subsection (g).
22    (e) The State Comptroller shall draw warrants payable to
23the System upon proper certification by the System or by the
24employer in accordance with the appropriation laws and this
25Code.
26    (f) Normal costs under this Section means liability for

 

 

SB0001 Enrolled- 207 -LRB098 05457 JDS 35491 b

1pensions and other benefits which accrues to the System because
2of the credits earned for service rendered by the participants
3during the fiscal year and expenses of administering the
4System, but shall not include the principal of or any
5redemption premium or interest on any bonds issued by the Board
6or any expenses incurred or deposits required in connection
7therewith.
8    (g) If the amount of a participant's earnings for any
9academic year used to determine the final rate of earnings,
10determined on a full-time equivalent basis, exceeds the amount
11of his or her earnings with the same employer for the previous
12academic year, determined on a full-time equivalent basis, by
13more than 6%, the participant's employer shall pay to the
14System, in addition to all other payments required under this
15Section and in accordance with guidelines established by the
16System, the present value of the increase in benefits resulting
17from the portion of the increase in earnings that is in excess
18of 6%. This present value shall be computed by the System on
19the basis of the actuarial assumptions and tables used in the
20most recent actuarial valuation of the System that is available
21at the time of the computation. The System may require the
22employer to provide any pertinent information or
23documentation.
24    Whenever it determines that a payment is or may be required
25under this subsection (g), the System shall calculate the
26amount of the payment and bill the employer for that amount.

 

 

SB0001 Enrolled- 208 -LRB098 05457 JDS 35491 b

1The bill shall specify the calculations used to determine the
2amount due. If the employer disputes the amount of the bill, it
3may, within 30 days after receipt of the bill, apply to the
4System in writing for a recalculation. The application must
5specify in detail the grounds of the dispute and, if the
6employer asserts that the calculation is subject to subsection
7(h) or (i) of this Section, must include an affidavit setting
8forth and attesting to all facts within the employer's
9knowledge that are pertinent to the applicability of subsection
10(h) or (i). Upon receiving a timely application for
11recalculation, the System shall review the application and, if
12appropriate, recalculate the amount due.
13    The employer contributions required under this subsection
14(g) may be paid in the form of a lump sum within 90 days after
15receipt of the bill. If the employer contributions are not paid
16within 90 days after receipt of the bill, then interest will be
17charged at a rate equal to the System's annual actuarially
18assumed rate of return on investment compounded annually from
19the 91st day after receipt of the bill. Payments must be
20concluded within 3 years after the employer's receipt of the
21bill.
22    (h) This subsection (h) applies only to payments made or
23salary increases given on or after June 1, 2005 but before July
241, 2011. The changes made by Public Act 94-1057 shall not
25require the System to refund any payments received before July
2631, 2006 (the effective date of Public Act 94-1057).

 

 

SB0001 Enrolled- 209 -LRB098 05457 JDS 35491 b

1    When assessing payment for any amount due under subsection
2(g), the System shall exclude earnings increases paid to
3participants under contracts or collective bargaining
4agreements entered into, amended, or renewed before June 1,
52005.
6    When assessing payment for any amount due under subsection
7(g), the System shall exclude earnings increases paid to a
8participant at a time when the participant is 10 or more years
9from retirement eligibility under Section 15-135.
10    When assessing payment for any amount due under subsection
11(g), the System shall exclude earnings increases resulting from
12overload work, including a contract for summer teaching, or
13overtime when the employer has certified to the System, and the
14System has approved the certification, that: (i) in the case of
15overloads (A) the overload work is for the sole purpose of
16academic instruction in excess of the standard number of
17instruction hours for a full-time employee occurring during the
18academic year that the overload is paid and (B) the earnings
19increases are equal to or less than the rate of pay for
20academic instruction computed using the participant's current
21salary rate and work schedule; and (ii) in the case of
22overtime, the overtime was necessary for the educational
23mission.
24    When assessing payment for any amount due under subsection
25(g), the System shall exclude any earnings increase resulting
26from (i) a promotion for which the employee moves from one

 

 

SB0001 Enrolled- 210 -LRB098 05457 JDS 35491 b

1classification to a higher classification under the State
2Universities Civil Service System, (ii) a promotion in academic
3rank for a tenured or tenure-track faculty position, or (iii) a
4promotion that the Illinois Community College Board has
5recommended in accordance with subsection (k) of this Section.
6These earnings increases shall be excluded only if the
7promotion is to a position that has existed and been filled by
8a member for no less than one complete academic year and the
9earnings increase as a result of the promotion is an increase
10that results in an amount no greater than the average salary
11paid for other similar positions.
12    (i) When assessing payment for any amount due under
13subsection (g), the System shall exclude any salary increase
14described in subsection (h) of this Section given on or after
15July 1, 2011 but before July 1, 2014 under a contract or
16collective bargaining agreement entered into, amended, or
17renewed on or after June 1, 2005 but before July 1, 2011.
18Notwithstanding any other provision of this Section, any
19payments made or salary increases given after June 30, 2014
20shall be used in assessing payment for any amount due under
21subsection (g) of this Section.
22    (j) The System shall prepare a report and file copies of
23the report with the Governor and the General Assembly by
24January 1, 2007 that contains all of the following information:
25        (1) The number of recalculations required by the
26    changes made to this Section by Public Act 94-1057 for each

 

 

SB0001 Enrolled- 211 -LRB098 05457 JDS 35491 b

1    employer.
2        (2) The dollar amount by which each employer's
3    contribution to the System was changed due to
4    recalculations required by Public Act 94-1057.
5        (3) The total amount the System received from each
6    employer as a result of the changes made to this Section by
7    Public Act 94-4.
8        (4) The increase in the required State contribution
9    resulting from the changes made to this Section by Public
10    Act 94-1057.
11    (k) The Illinois Community College Board shall adopt rules
12for recommending lists of promotional positions submitted to
13the Board by community colleges and for reviewing the
14promotional lists on an annual basis. When recommending
15promotional lists, the Board shall consider the similarity of
16the positions submitted to those positions recognized for State
17universities by the State Universities Civil Service System.
18The Illinois Community College Board shall file a copy of its
19findings with the System. The System shall consider the
20findings of the Illinois Community College Board when making
21determinations under this Section. The System shall not exclude
22any earnings increases resulting from a promotion when the
23promotion was not submitted by a community college. Nothing in
24this subsection (k) shall require any community college to
25submit any information to the Community College Board.
26    (l) For purposes of determining the required State

 

 

SB0001 Enrolled- 212 -LRB098 05457 JDS 35491 b

1contribution to the System, the value of the System's assets
2shall be equal to the actuarial value of the System's assets,
3which shall be calculated as follows:
4    As of June 30, 2008, the actuarial value of the System's
5assets shall be equal to the market value of the assets as of
6that date. In determining the actuarial value of the System's
7assets for fiscal years after June 30, 2008, any actuarial
8gains or losses from investment return incurred in a fiscal
9year shall be recognized in equal annual amounts over the
105-year period following that fiscal year.
11    (m) For purposes of determining the required State
12contribution to the system for a particular year, the actuarial
13value of assets shall be assumed to earn a rate of return equal
14to the system's actuarially assumed rate of return.
15(Source: P.A. 97-813, eff. 7-13-12; 98-92, eff. 7-16-13;
1698-463, eff. 8-16-13.)
 
17    (40 ILCS 5/15-156)  (from Ch. 108 1/2, par. 15-156)
18    Sec. 15-156. Obligations of State; funding guarantees.
19    (a) The payment of (1) the required State contributions,
20(2) all benefits granted under this system and (3) all expenses
21in connection with the administration and operation thereof are
22obligations of the State of Illinois to the extent specified in
23this Article. The accumulated employee normal, additional and
24survivors insurance contributions credited to the accounts of
25active and inactive participants shall not be used to pay the

 

 

SB0001 Enrolled- 213 -LRB098 05457 JDS 35491 b

1State's share of the obligations.
2    (b) Beginning July 1, 2014, the State shall be obligated to
3contribute to the System in each State fiscal year an amount
4not less than the sum of (i) the State's normal cost for the
5year and (ii) the portion of the unfunded accrued liability
6assigned to that year by law. Notwithstanding any other
7provision of law, if the State fails to pay an amount required
8under this subsection, it shall be the obligation of the Board
9to seek payment of the required amount in compliance with the
10provisions of this Section and, if the amount remains unpaid,
11to bring a mandamus action in the Supreme Court of Illinois to
12compel the State to make the required payment.
13    If the System submits a voucher for contributions required
14under Section 15-155 and the State fails to pay that voucher
15within 90 days of its receipt, the Board shall submit a written
16request to the Comptroller seeking payment. A copy of the
17request shall be filed with the Secretary of State, and the
18Secretary of State shall provide a copy to the Governor and
19General Assembly. No earlier than the 16th day after the System
20files the request with the Comptroller and Secretary of State,
21if the amount remains unpaid the Board shall commence a
22mandamus action in the Supreme Court of Illinois to compel the
23Comptroller to satisfy the voucher.
24    This subsection (b) constitutes an express waiver of the
25State's sovereign immunity solely to the extent that it permits
26the Board to commence a mandamus action in the Supreme Court of

 

 

SB0001 Enrolled- 214 -LRB098 05457 JDS 35491 b

1Illinois to compel the Comptroller to pay a voucher for the
2contributions required under Section 15-155.
3    (c) Beginning in State fiscal year 2016, the State shall be
4obligated to make the transfers set forth in subsections (c-5)
5and (c-10) of Section 20 of the Budget Stabilization Act and to
6pay to the System its proportionate share of the transferred
7amounts in accordance with Section 25 of the Budget
8Stabilization Act. Notwithstanding any other provision of law,
9if the State fails to transfer an amount required under this
10subsection or to pay to the System its proportionate share of
11the transferred amount in accordance with Section 25 of the
12Budget Stabilization Act, it shall be the obligation of the
13Board to seek transfer or payment of the required amount in
14compliance with the provisions of this Section and, if the
15required amount remains untransferred or the required payment
16remains unpaid, to bring a mandamus action in the Supreme Court
17of Illinois to compel the State to make the required transfer
18or payment or both, as the case may be.
19    If the State fails to make a transfer required under
20subsection (c-5) or (c-10) of Section 20 of the Budget
21Stabilization Act or a payment to the System required under
22Section 25 of that Act, the Board shall submit a written
23request to the Comptroller seeking payment. A copy of the
24request shall be filed with the Secretary of State, and the
25Secretary of State shall provide a copy to the Governor and
26General Assembly. No earlier than the 16th day after the System