Sen. John J. Cullerton

Filed: 3/13/2013

 

 


 

 


 
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1
AMENDMENT TO SENATE BILL 1

2    AMENDMENT NO. ______. Amend Senate Bill 1 by replacing
3everything after the enacting clause with the following:
 
4
"PART A

 
5    Section A-3. The Illinois Public Labor Relations Act is
6amended by changing Sections 4 and 15 as follows:
 
7    (5 ILCS 315/4)  (from Ch. 48, par. 1604)
8    Sec. 4. Management Rights. Employers shall not be required
9to bargain over matters of inherent managerial policy, which
10shall include such areas of discretion or policy as the
11functions of the employer, standards of services, its overall
12budget, the organizational structure and selection of new
13employees, examination techniques and direction of employees.
14Employers, however, shall be required to bargain collectively
15with regard to policy matters directly affecting wages, hours

 

 

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

 

 

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1(Source: P.A. 94-98, eff. 7-1-05.)
 
2    (5 ILCS 315/15)  (from Ch. 48, par. 1615)
3    Sec. 15. Act Takes Precedence.
4    (a) In case of any conflict between the provisions of this
5Act and any other law (other than Section 5 of the State
6Employees Group Insurance Act of 1971 and other than the
7changes made to the Illinois Pension Code by Public Act 96-889
8and the changes, impact of changes, and the implementation of
9the changes made to the Illinois Pension Code by this
10amendatory Act of the 98th 96th General Assembly), executive
11order or administrative regulation relating to wages, hours and
12conditions of employment and employment relations, the
13provisions of this Act or any collective bargaining agreement
14negotiated thereunder shall prevail and control. Nothing in
15this Act shall be construed to replace or diminish the rights
16of employees established by Sections 28 and 28a of the
17Metropolitan Transit Authority Act, Sections 2.15 through 2.19
18of the Regional Transportation Authority Act. The provisions of
19this Act are subject to the changes made by this amendatory Act
20of the 98th General Assembly and Section 5 of the State
21Employees Group Insurance Act of 1971. Nothing in this Act
22shall be construed to replace the necessity of complaints
23against a sworn peace officer, as defined in Section 2(a) of
24the Uniform Peace Officer Disciplinary Act, from having a
25complaint supported by a sworn affidavit.

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1    Section A-15. The Budget Stabilization Act is amended by
2changing Sections 20 and 25 as follows:
 
3    (30 ILCS 122/20)
4    Sec. 20. Pension Stabilization Fund.
5    (a) The Pension Stabilization Fund is hereby created as a
6special fund in the State treasury. Moneys in the fund shall be
7used for the sole purpose of making payments to the designated
8retirement systems as provided in Section 25.
9    (b) For each fiscal year when the General Assembly's
10appropriations and transfers or diversions as required by law
11from general funds do not exceed 99% of the estimated general
12funds revenues pursuant to subsection (a) of Section 10, the
13Comptroller shall transfer from the General Revenue Fund as
14provided by this Section a total amount equal to 0.5% of the
15estimated general funds revenues to the Pension Stabilization
16Fund.
17    (c) For each fiscal year through State fiscal year 2013,
18when the General Assembly's appropriations and transfers or
19diversions as required by law from general funds do not exceed
2098% of the estimated general funds revenues pursuant to
21subsection (b) of Section 10, the Comptroller shall transfer
22from the General Revenue Fund as provided by this Section a
23total amount equal to 1.0% of the estimated general funds
24revenues to the Pension Stabilization Fund.
25    (c-10) In State fiscal year 2020 and each fiscal year

 

 

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

 

 

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

 

 

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1proportion as their respective portions of the total actuarial
2reserve deficiency of the designated retirement systems, as
3most recently determined by the Governor's Office of Management
4and Budget. Amounts received by a designated retirement system
5under this Section shall be used for funding the unfunded
6liabilities of the retirement system. Payments under this
7Section are authorized by the continuing appropriation under
8Section 1.7 of the State Pension Funds Continuing Appropriation
9Act.
10    (c) At the request of the State Comptroller, the Governor's
11Office of Management and Budget shall determine the individual
12and total actuarial reserve deficiencies of the designated
13retirement systems. For this purpose, the Governor's Office of
14Management and Budget shall consider the latest available audit
15and actuarial reports of each of the retirement systems and the
16relevant reports and statistics of the Public Pension Division
17of the Department of Financial and Professional Regulation.
18    (d) Payments to the designated retirement systems under
19this Section shall be in addition to, and not in lieu of, any
20State contributions required under Section 2-124, 14-131,
2115-155, 16-158, or 18-131 of the Illinois Pension Code.
22    Payments to the designated retirement systems under this
23Section, transferred after the effective date of this
24amendatory Act of the 98th General Assembly, do not reduce and
25do not constitute payment of any portion of the required State
26contribution under Article 2, 14, 15, 16, or 18 of the Illinois

 

 

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1Pension Code in that fiscal year. Such amounts shall not
2reduce, and shall not be included in the calculation of, the
3required State contribution under Article 2, 14, 15, 16, or 18
4of the Illinois Pension Code in any future year, until the
5designated retirement system has received payment of
6contributions pursuant to this Act.
7(Source: P.A. 94-839, eff. 6-6-06.)
 
8    Section A-20. The Illinois Pension Code is amended by
9changing Sections 1-103.3, 2-101, 2-105, 2-107, 2-108, 2-119,
102-119.1, 2-121.1, 2-124, 2-125, 2-126, 2-134, 2-162, 7-109,
1114-103.10, 14-106, 14-107, 14-108, 14-110, 14-114, 14-131,
1214-132, 14-133, 14-135.08, 14-152.1, 15-106, 15-107, 15-111,
1315-113.2, 15-135, 15-136, 15-155, 15-156, 15-157, 15-165,
1415-198, 16-106, 16-121, 16-127, 16-132, 16-133, 16-133.1,
1516-152, 16-158, 16-158.1, and 16-203 and by adding Sections
162-105.1, 2-105.2, 14-103.40, 14-103.41, 15-107.1, 15-107.2,
1716-106.4, 16-106.5, and 16-158.2 as follows:
 
18    (40 ILCS 5/1-103.3)
19    Sec. 1-103.3. Application of 1994 amendment; funding
20standard.
21    (a) The provisions of Public Act 88-593 this amendatory Act
22of 1994 that change the method of calculating, certifying, and
23paying the required State contributions to the retirement
24systems established under Articles 2, 14, 15, 16, and 18 shall

 

 

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1first apply to the State contributions required for State
2fiscal year 1996.
3    (b) (Blank) The General Assembly declares that a funding
4ratio (the ratio of a retirement system's total assets to its
5total actuarial liabilities) of 90% is an appropriate goal for
6State-funded retirement systems in Illinois, and it finds that
7a funding ratio of 90% is now the generally-recognized norm
8throughout the nation for public employee retirement systems
9that are considered to be financially secure and funded in an
10appropriate and responsible manner.
11    (c) Every 5 years, beginning in 1999, the Commission on
12Government Forecasting and Accountability, in consultation
13with the affected retirement systems and the Governor's Office
14of Management and Budget (formerly Bureau of the Budget), shall
15consider and determine whether the funding goals 90% funding
16ratio adopted in Articles 2, 14, 15, 16, and 18 of this Code
17continue subsection (b) continues to represent an appropriate
18funding goals goal for those State-funded retirement systems in
19Illinois, and it shall report its findings and recommendations
20on this subject to the Governor and the General Assembly.
21(Source: P.A. 93-1067, eff. 1-15-05.)
 
22    (40 ILCS 5/2-101)  (from Ch. 108 1/2, par. 2-101)
23    Sec. 2-101. Creation of system. A retirement system is
24created to provide retirement annuities, survivor's annuities
25and other benefits for certain members of the General Assembly,

 

 

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1certain elected state officials, and their beneficiaries.
2    The system shall be known as the "General Assembly
3Retirement System". All its funds and property shall be a trust
4separate from all other entities, maintained for the purpose of
5securing payment of annuities and benefits under this Article.
6    Participation in the retirement system created under this
7Article is restricted to persons who become participants before
8January 1, 2014. Beginning on that date, the System shall not
9accept any new participants.
10(Source: P.A. 83-1440.)
 
11    (40 ILCS 5/2-105)  (from Ch. 108 1/2, par. 2-105)
12    Sec. 2-105. Member. "Member": Members of the General
13Assembly of this State, including persons who enter military
14service while a member of the General Assembly, and any person
15serving as Governor, Lieutenant Governor, Secretary of State,
16Treasurer, Comptroller, or Attorney General for the period of
17service in such office.
18    Any person who has served for 10 or more years as Clerk or
19Assistant Clerk of the House of Representatives, Secretary or
20Assistant Secretary of the Senate, or any combination thereof,
21may elect to become a member of this system while thenceforth
22engaged in such service by filing a written election with the
23board. Any person so electing shall be deemed an active member
24of the General Assembly for the purpose of validating and
25transferring any service credits earned under any of the funds

 

 

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1and systems established under Articles 3 through 18 of this
2Code.
3    However, notwithstanding any other provision of this
4Article, a person shall not be deemed a member for the purposes
5of this Article unless he or she became a participant of the
6System before January 1, 2014.
7(Source: P.A. 85-1008.)
 
8    (40 ILCS 5/2-105.1 new)
9    Sec. 2-105.1. Tier I participant. "Tier I participant": A
10participant who first became a participant before January 1,
112011.
 
12    (40 ILCS 5/2-105.2 new)
13    Sec. 2-105.2. Tier I retiree. "Tier I retiree" means a
14former Tier I participant who is receiving a retirement
15annuity.
 
16    (40 ILCS 5/2-107)  (from Ch. 108 1/2, par. 2-107)
17    Sec. 2-107. Participant. "Participant": Any member who
18elects to participate; and any former member who elects to
19continue participation under Section 2-117.1, for the duration
20of such continued participation. However, notwithstanding any
21other provision of this Article, a person shall not be deemed a
22participant for the purposes of this Article unless he or she
23became a participant of the System before January 1, 2014.

 

 

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1(Source: P.A. 86-1488.)
 
2    (40 ILCS 5/2-108)  (from Ch. 108 1/2, par. 2-108)
3    Sec. 2-108. Salary. "Salary": (1) For members of the
4General Assembly, the total compensation paid to the member by
5the State for one year of service, including the additional
6amounts, if any, paid to the member as an officer pursuant to
7Section 1 of "An Act in relation to the compensation and
8emoluments of the members of the General Assembly", approved
9December 6, 1907, as now or hereafter amended.
10    (2) For the State executive officers specified in Section
112-105, the total compensation paid to the member for one year
12of service.
13    (3) For members of the System who are participants under
14Section 2-117.1, or who are serving as Clerk or Assistant Clerk
15of the House of Representatives or Secretary or Assistant
16Secretary of the Senate, the total compensation paid to the
17member for one year of service, but not to exceed the salary of
18the highest salaried officer of the General Assembly.
19    However, in the event that federal law results in any
20participant receiving imputed income based on the value of
21group term life insurance provided by the State, such imputed
22income shall not be included in salary for the purposes of this
23Article.
24    Notwithstanding any other provision of this Code, the
25salary of a Tier I participant for the purposes of this Code

 

 

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1shall not exceed, for periods of service in a term of office
2beginning on or after the effective date of this amendatory Act
3of the 98th General Assembly, the greater of (i) the annual
4contribution and benefit base established for the applicable
5year by the Commissioner of Social Security under the federal
6Social Security Act or (ii) the annual salary of the
7participant during the 365 days immediately preceding that
8effective date.
9(Source: P.A. 86-27; 86-273; 86-1028; 86-1488.)
 
10    (40 ILCS 5/2-119)  (from Ch. 108 1/2, par. 2-119)
11    Sec. 2-119. Retirement annuity - conditions for
12eligibility.
13    (a) A participant whose service as a member is terminated,
14regardless of age or cause, is entitled to a retirement annuity
15beginning on the date specified by the participant in a written
16application subject to the following conditions:
17        1. The date the annuity begins does not precede the
18    date of final termination of service, or is not more than
19    30 days before the receipt of the application by the board
20    in the case of annuities based on disability or one year
21    before the receipt of the application in the case of
22    annuities based on attained age;
23        2. The participant meets one of the following
24    eligibility requirements:
25        For a participant who first becomes a participant of

 

 

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1    this System before January 1, 2011 (the effective date of
2    Public Act 96-889):
3            (A) He or she has attained age 55 and has at least
4        8 years of service credit;
5            (B) He or she has attained age 62 and terminated
6        service after July 1, 1971 with at least 4 years of
7        service credit; or
8            (C) He or she has completed 8 years of service and
9        has become permanently disabled and as a consequence,
10        is unable to perform the duties of his or her office.
11        For a participant who first becomes a participant of
12    this System on or after January 1, 2011 (the effective date
13    of Public Act 96-889), he or she has attained age 67 and
14    has at least 8 years of service credit.
15    (a-5) Notwithstanding subsection (a) of this Section, for a
16Tier I participant who begins receiving a retirement annuity
17under this Section after July 1, 2013:
18        (1) If the Tier I participant is at least 45 years old
19    on the effective date of this amendatory Act of the 98th
20    General Assembly, then the references to age 55 and 62 in
21    subsection (a) of this Section remain unchanged.
22        (2) If the Tier I participant is at least 40 but less
23    than 45 years old on the effective date of this amendatory
24    Act of the 98th General Assembly, then the references to
25    age 55 and 62 in subsection (a) of this Section are
26    increased by one year.

 

 

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1        (3) If the Tier I participant is at least 35 but less
2    than 40 years old on the effective date of this amendatory
3    Act of the 98th General Assembly, then the references to
4    age 55 and 62 in subsection (a) of this Section are
5    increased by 3 years.
6        (4) If the Tier I participant is less than 35 years old
7    on the effective date of this amendatory Act of the 98th
8    General Assembly, then the references to age 55 and 62 in
9    subsection (a) of this Section are increased by 5 years.
10    Notwithstanding Section 1-103.1, this subsection (a-5)
11applies without regard to whether or not the Tier I member is
12in active service under this Article on or after the effective
13date of this amendatory Act of the 98th General Assembly.
14    (a-5) A participant who first becomes a participant of this
15System on or after January 1, 2011 (the effective date of
16Public Act 96-889) who has attained age 62 and has at least 8
17years of service credit may elect to receive the lower
18retirement annuity provided in paragraph (c) of Section
192-119.01 of this Code.
20    (b) A participant shall be considered permanently disabled
21only if: (1) disability occurs while in service and is of such
22a nature as to prevent him or her from reasonably performing
23the duties of his or her office at the time; and (2) the board
24has received a written certificate by at least 2 licensed
25physicians appointed by the board stating that the member is
26disabled and that the disability is likely to be permanent.

 

 

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1(Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11.)
 
2    (40 ILCS 5/2-119.1)  (from Ch. 108 1/2, par. 2-119.1)
3    Sec. 2-119.1. Automatic increase in retirement annuity.
4    (a) Except as provided in subsections (a-1), (a-2), and
5(a-3) of this Section, a A participant who retires after June
630, 1967, and who has not received an initial increase under
7this Section before the effective date of this amendatory Act
8of 1991, shall, in January or July next following the first
9anniversary of retirement, whichever occurs first, and in the
10same month of each year thereafter, but in no event prior to
11age 60, have the amount of the originally granted retirement
12annuity increased as follows: for each year through 1971, 1
131/2%; for each year from 1972 through 1979, 2%; and for 1980
14and each year thereafter, 3%. Annuitants who have received an
15initial increase under this subsection prior to the effective
16date of this amendatory Act of 1991 shall continue to receive
17their annual increases in the same month as the initial
18increase.
19    (a-1) Notwithstanding any other provision of this Article,
20except subsection (a-3) of this Section, for a Tier I retiree,
21the amount of each automatic annual increase in retirement
22annuity occurring on or after the effective date of this
23amendatory Act of the 98th General Assembly shall be the lesser
24of $750 or 3% of the total annuity payable at the time of the
25increase, including previous increases granted.

 

 

09800SB0001sam001- 22 -LRB098 05457 JDS 42954 a

1    (a-2) Notwithstanding any other provision of this Article,
2except subsection (a-3) of this Section, for a Tier I retiree,
3the monthly retirement annuity shall first be subject to annual
4increases on the January 1 occurring on or next after the
5attainment of age 67 or the January 1 occurring on or next
6after the fifth anniversary of the annuity start date,
7whichever occurs earlier. If on the effective date of this
8amendatory Act of the 98th General Assembly a Tier I retiree
9has already received an annual increase under this Section but
10does not yet meet the new eligibility requirements of this
11subsection, the annual increases already received shall
12continue in force, but no additional annual increase shall be
13granted until the Tier I retiree meets the new eligibility
14requirements.
15    (a-3) Notwithstanding any other provision of this Article,
16a Tier I retiree is ineligible to receive an automatic annual
17increase in retirement annuity pursuant to this Section, unless
18he or she has 20 years of creditable service under this
19Article. If on the effective date of this amendatory Act of the
2098th General Assembly a Tier I retiree has already received an
21annual increase under this Section but does not yet meet the
22new eligibility requirements of this subsection, the annual
23increases already received shall continue in force, but no
24additional annual increase shall be granted until the Tier I
25retiree meets the new eligibility requirements.
26    (a-4) Notwithstanding Section 1-103.1, subsections (a-1),

 

 

09800SB0001sam001- 23 -LRB098 05457 JDS 42954 a

1(a-2), and (a-3) of this Section apply without regard to
2whether or not the Tier I retiree is in active service under
3this Article on or after the effective date of this amendatory
4Act of the 98th General Assembly.
5    (b) Beginning January 1, 1990, for eligible participants
6who remain in service after attaining 20 years of creditable
7service, the 3% increases provided under subsection (a) shall
8begin to accrue on the January 1 next following the date upon
9which the participant (1) attains age 55, or (2) attains 20
10years of creditable service, whichever occurs later, and shall
11continue to accrue while the participant remains in service;
12such increases shall become payable on January 1 or July 1,
13whichever occurs first, next following the first anniversary of
14retirement. For any person who has service credit in the System
15for the entire period from January 15, 1969 through December
1631, 1992, regardless of the date of termination of service, the
17reference to age 55 in clause (1) of this subsection (b) shall
18be deemed to mean age 50.
19    This subsection (b) does not apply to any person who first
20becomes a member of the System after August 8, 2003 (the
21effective date of Public Act 93-494) this amendatory Act of the
2293rd General Assembly.
23    (b-5) Notwithstanding any other provision of this Article,
24a participant who first becomes a participant on or after
25January 1, 2011 (the effective date of Public Act 96-889)
26shall, in January or July next following the first anniversary

 

 

09800SB0001sam001- 24 -LRB098 05457 JDS 42954 a

1of retirement, whichever occurs first, and in the same month of
2each year thereafter, but in no event prior to age 67, have the
3amount of the originally granted retirement annuity then being
4paid increased by 3% or one-half the annual unadjusted
5percentage increase in the Consumer Price Index for All Urban
6Consumers as determined by the Public Pension Division of the
7Department of Insurance under subsection (a) of Section
82-108.1, whichever is less. The changes made to this subsection
9by this amendatory Act of the 98th General Assembly do not
10apply to any automatic annual increase granted under this
11subsection before the effective date of this amendatory Act.
12    (c) The foregoing provisions relating to automatic
13increases are not applicable to a participant who retires
14before having made contributions (at the rate prescribed in
15Section 2-126) for automatic increases for less than the
16equivalent of one full year. However, in order to be eligible
17for the automatic increases, such a participant may make
18arrangements to pay to the system the amount required to bring
19the total contributions for the automatic increase to the
20equivalent of one year's contributions based upon his or her
21last salary.
22    (d) A participant who terminated service prior to July 1,
231967, with at least 14 years of service is entitled to an
24increase in retirement annuity beginning January, 1976, and to
25additional increases in January of each year thereafter.
26    The initial increase shall be 1 1/2% of the originally

 

 

09800SB0001sam001- 25 -LRB098 05457 JDS 42954 a

1granted retirement annuity multiplied by the number of full
2years that the annuitant was in receipt of such annuity prior
3to January 1, 1972, plus 2% of the originally granted
4retirement annuity for each year after that date. The
5subsequent annual increases shall be at the rate of 2% of the
6originally granted retirement annuity for each year through
71979 and at the rate of 3% for 1980 and thereafter.
8    (e) Beginning January 1, 1990, all automatic annual
9increases payable under this Section shall be calculated as a
10percentage of the total annuity payable at the time of the
11increase, including previous increases granted under this
12Article.
13(Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11.)
 
14    (40 ILCS 5/2-121.1)  (from Ch. 108 1/2, par. 2-121.1)
15    Sec. 2-121.1. Survivor's annuity - amount.
16    (a) A surviving spouse shall be entitled to 66 2/3% of the
17amount of retirement annuity to which the participant or
18annuitant was entitled on the date of death, without regard to
19whether the participant had attained age 55 prior to his or her
20death, subject to a minimum payment of 10% of salary. If a
21surviving spouse, regardless of age, has in his or her care at
22the date of death any eligible child or children of the
23participant, the survivor's annuity shall be the greater of the
24following: (1) 66 2/3% of the amount of retirement annuity to
25which the participant or annuitant was entitled on the date of

 

 

09800SB0001sam001- 26 -LRB098 05457 JDS 42954 a

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

 

 

09800SB0001sam001- 27 -LRB098 05457 JDS 42954 a

1that child, shall thereupon cease, and the annuity payable to
2the surviving spouse or other eligible children shall be
3recalculated if necessary.
4    Upon the ineligibility of the last eligible child, the
5annuity shall immediately revert to the amount payable upon
6death of a participant or annuitant who leaves no eligible
7children. If the surviving spouse is then under age 50, the
8annuity as revised shall be deferred until the attainment of
9age 50.
10    (d) Beginning January 1, 1990, every survivor's annuity
11shall be increased (1) on each January 1 occurring on or after
12the commencement of the annuity if the deceased member died
13while receiving a retirement annuity, or (2) in other cases, on
14each January 1 occurring on or after the first anniversary of
15the commencement of the annuity, by an amount equal to 3% of
16the current amount of the annuity, including any previous
17increases under this Article. Such increases shall apply
18without regard to whether the deceased member was in service on
19or after the effective date of this amendatory Act of 1991, but
20shall not accrue for any period prior to January 1, 1990.
21    (d-5) Notwithstanding any other provision of this Article,
22the initial survivor's annuity of a survivor of a participant
23who first becomes a participant on or after January 1, 2011
24(the effective date of Public Act 96-889) shall be in the
25amount of 66 2/3% of the amount of the retirement annuity to
26which the participant or annuitant was entitled on the date of

 

 

09800SB0001sam001- 28 -LRB098 05457 JDS 42954 a

1death and shall be increased (1) on each January 1 occurring on
2or after the commencement of the annuity if the deceased member
3died while receiving a retirement annuity or (2) in other
4cases, on each January 1 occurring on or after the first
5anniversary of the commencement of the annuity, by an amount
6equal to 3% or one-half the annual unadjusted percentage
7increase in the Consumer Price Index for All Urban Consumers as
8determined by the Public Pension Division of the Department of
9Insurance under subsection (a) of Section 2-108.1, whichever is
10less, of the originally granted survivor's annuity then being
11paid. The changes made to this subsection by this amendatory
12Act of the 98th General Assembly do not apply to any automatic
13annual increase granted under this subsection before the
14effective date of this amendatory Act.
15    (e) Notwithstanding any other provision of this Article,
16beginning January 1, 1990, the minimum survivor's annuity
17payable to any person who is entitled to receive a survivor's
18annuity under this Article shall be $300 per month, without
19regard to whether or not the deceased participant was in
20service on the effective date of this amendatory Act of 1989.
21    (f) In the case of a proportional survivor's annuity
22arising under the Retirement Systems Reciprocal Act where the
23amount payable by the System on January 1, 1993 is less than
24$300 per month, the amount payable by the System shall be
25increased beginning on that date by a monthly amount equal to
26$2 for each full year that has expired since the annuity began.

 

 

09800SB0001sam001- 29 -LRB098 05457 JDS 42954 a

1(Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11.)
 
2    (40 ILCS 5/2-124)  (from Ch. 108 1/2, par. 2-124)
3    Sec. 2-124. Contributions by State.
4    (a) The State shall make contributions to the System by
5appropriations of amounts which, together with the
6contributions of participants, interest earned on investments,
7and other income will meet the cost of maintaining and
8administering the System on a 100% 90% funded basis in
9accordance with actuarial recommendations by the end of State
10fiscal year 2043.
11    (b) The Board shall determine the amount of State
12contributions required for each fiscal year on the basis of the
13actuarial tables and other assumptions adopted by the Board and
14the prescribed rate of interest, using the formula in
15subsection (c).
16    (c) For State fiscal years 2014 through 2043, the minimum
17contribution to the System to be made by the State for each
18fiscal year shall be an amount determined by the System to be
19equal to the sum of (1) the State's portion of the projected
20normal cost for that fiscal year, plus (2) an amount sufficient
21to bring the total assets of the System up to 100% of the total
22actuarial liabilities of the System by the end of State fiscal
23year 2043. In making these determinations, the required State
24contribution shall be calculated each year as a level
25percentage of payroll over the years remaining to and including

 

 

09800SB0001sam001- 30 -LRB098 05457 JDS 42954 a

1fiscal year 2043 and shall be determined under the projected
2unit credit actuarial cost method.
3    For State fiscal years 2012 and 2013 through 2045, the
4minimum contribution to the System to be made by the State for
5each fiscal year shall be an amount determined by the System to
6be sufficient to bring the total assets of the System up to 90%
7of the total actuarial liabilities of the System by the end of
8State fiscal year 2045. In making these determinations, the
9required State contribution shall be calculated each year as a
10level percentage of payroll over the years remaining to and
11including fiscal year 2045 and shall be determined under the
12projected unit credit actuarial cost method.
13    For State fiscal years 1996 through 2005, the State
14contribution to the System, as a percentage of the applicable
15employee payroll, shall be increased in equal annual increments
16so that by State fiscal year 2011, the State is contributing at
17the rate required under this Section.
18    Notwithstanding any other provision of this Article, the
19total required State contribution for State fiscal year 2006 is
20$4,157,000.
21    Notwithstanding any other provision of this Article, the
22total required State contribution for State fiscal year 2007 is
23$5,220,300.
24    For each of State fiscal years 2008 through 2009, the State
25contribution to the System, as a percentage of the applicable
26employee payroll, shall be increased in equal annual increments

 

 

09800SB0001sam001- 31 -LRB098 05457 JDS 42954 a

1from the required State contribution for State fiscal year
22007, so that by State fiscal year 2011, the State is
3contributing at the rate otherwise required under this Section.
4    Notwithstanding any other provision of this Article, the
5total required State contribution for State fiscal year 2010 is
6$10,454,000 and shall be made from the proceeds of bonds sold
7in fiscal year 2010 pursuant to Section 7.2 of the General
8Obligation Bond Act, less (i) the pro rata share of bond sale
9expenses determined by the System's share of total bond
10proceeds, (ii) any amounts received from the General Revenue
11Fund in fiscal year 2010, and (iii) any reduction in bond
12proceeds due to the issuance of discounted bonds, if
13applicable.
14    Notwithstanding any other provision of this Article, the
15total required State contribution for State fiscal year 2011 is
16the amount recertified by the System on or before April 1, 2011
17pursuant to Section 2-134 and shall be made from the proceeds
18of bonds sold in fiscal year 2011 pursuant to Section 7.2 of
19the General Obligation Bond Act, less (i) the pro rata share of
20bond sale expenses determined by the System's share of total
21bond proceeds, (ii) any amounts received from the General
22Revenue Fund in fiscal year 2011, and (iii) any reduction in
23bond proceeds due to the issuance of discounted bonds, if
24applicable.
25    Beginning in State fiscal year 2044, the minimum State
26contribution for each fiscal year shall be the amount needed to

 

 

09800SB0001sam001- 32 -LRB098 05457 JDS 42954 a

1maintain the total assets of the System at 100% of the total
2actuarial liabilities of the System.
3    Beginning in State fiscal year 2046, the minimum State
4contribution for each fiscal year shall be the amount needed to
5maintain the total assets of the System at 90% of the total
6actuarial liabilities of the System.
7    Amounts received by the System pursuant to Section 25 of
8the Budget Stabilization Act or Section 8.12 of the State
9Finance Act in any fiscal year do not reduce and do not
10constitute payment of any portion of the minimum State
11contribution required under this Article in that fiscal year.
12Such amounts shall not reduce, and shall not be included in the
13calculation of, the required State contributions under this
14Article in any future year until the System has reached a
15funding ratio of at least 100% 90%. A reference in this Article
16to the "required State contribution" or any substantially
17similar term does not include or apply to any amounts payable
18to the System under Section 25 of the Budget Stabilization Act.
19    Notwithstanding any other provision of this Section, the
20required State contribution for State fiscal year 2005 and for
21fiscal year 2008 and each fiscal year thereafter through State
22fiscal year 2013, as calculated under this Section and
23certified under Section 2-134, shall not exceed an amount equal
24to (i) the amount of the required State contribution that would
25have been calculated under this Section for that fiscal year if
26the System had not received any payments under subsection (d)

 

 

09800SB0001sam001- 33 -LRB098 05457 JDS 42954 a

1of Section 7.2 of the General Obligation Bond Act, minus (ii)
2the portion of the State's total debt service payments for that
3fiscal year on the bonds issued in fiscal year 2003 for the
4purposes of that Section 7.2, as determined and certified by
5the Comptroller, that is the same as the System's portion of
6the total moneys distributed under subsection (d) of Section
77.2 of the General Obligation Bond Act. In determining this
8maximum for State fiscal years 2008 through 2010, however, the
9amount referred to in item (i) shall be increased, as a
10percentage of the applicable employee payroll, in equal
11increments calculated from the sum of the required State
12contribution for State fiscal year 2007 plus the applicable
13portion of the State's total debt service payments for fiscal
14year 2007 on the bonds issued in fiscal year 2003 for the
15purposes of Section 7.2 of the General Obligation Bond Act, so
16that, by State fiscal year 2011, the State is contributing at
17the rate otherwise required under this Section.
18    (d) For purposes of determining the required State
19contribution to the System, the value of the System's assets
20shall be equal to the actuarial value of the System's assets,
21which shall be calculated as follows:
22    As of June 30, 2008, the actuarial value of the System's
23assets shall be equal to the market value of the assets as of
24that date. In determining the actuarial value of the System's
25assets for fiscal years after June 30, 2008, any actuarial
26gains or losses from investment return incurred in a fiscal

 

 

09800SB0001sam001- 34 -LRB098 05457 JDS 42954 a

1year shall be recognized in equal annual amounts over the
25-year period following that fiscal year.
3    (e) For purposes of determining the required State
4contribution to the system for a particular year, the actuarial
5value of assets shall be assumed to earn a rate of return equal
6to the system's actuarially assumed rate of return.
7(Source: P.A. 96-43, eff. 7-15-09; 96-1497, eff. 1-14-11;
896-1511, eff. 1-27-11; 96-1554, eff. 3-18-11; 97-813, eff.
97-13-12.)
 
10    (40 ILCS 5/2-125)  (from Ch. 108 1/2, par. 2-125)
11    Sec. 2-125. Obligations of State; funding guarantee.
12    (a) The payment of (1) the required State contributions,
13(2) all benefits granted under this system and (3) all expenses
14of administration and operation are obligations of the State to
15the extent specified in this Article.
16    (b) All income, interest and dividends derived from
17deposits and investments shall be credited to the account of
18the system in the State Treasury and used to pay benefits under
19this Article.
20    (c) Beginning July 1, 2013, the State shall be
21contractually obligated to contribute to the System under
22Section 2-124 in each State fiscal year an amount not less than
23the sum of (i) the State's normal cost for that year and (ii)
24the portion of the unfunded accrued liability assigned to that
25year by law in accordance with a schedule that distributes

 

 

09800SB0001sam001- 35 -LRB098 05457 JDS 42954 a

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

 

 

09800SB0001sam001- 36 -LRB098 05457 JDS 42954 a

1accounts of the State related to such bonded obligations,
2consistent with the payment schedules associated with such
3obligations.
4(Source: P.A. 83-1440.)
 
5    (40 ILCS 5/2-126)  (from Ch. 108 1/2, par. 2-126)
6    Sec. 2-126. Contributions by participants.
7    (a) Each participant shall contribute toward the cost of
8his or her retirement annuity a percentage of each payment of
9salary received by him or her for service as a member as
10follows: for service between October 31, 1947 and January 1,
111959, 5%; for service between January 1, 1959 and June 30,
121969, 6%; for service between July 1, 1969 and January 10,
131973, 6 1/2%; for service after January 10, 1973, 7%; for
14service after December 31, 1981, 8 1/2%.
15    (a-5) In addition to the contributions otherwise required
16under this Article, each Tier I participant shall also make the
17following contributions toward the cost of his or her
18retirement annuity from each payment of salary received by him
19or her for service as a member:
20        (1) beginning July 1, 2013 and through June 30, 2014,
21    1% of salary; and
22        (2) beginning on July 1, 2014, 2% of salary.
23    (b) Beginning August 2, 1949, each male participant, and
24from July 1, 1971, each female participant shall contribute
25towards the cost of the survivor's annuity 2% of salary.

 

 

09800SB0001sam001- 37 -LRB098 05457 JDS 42954 a

1    A participant who has no eligible survivor's annuity
2beneficiary may elect to cease making contributions for
3survivor's annuity under this subsection. A survivor's annuity
4shall not be payable upon the death of a person who has made
5this election, unless prior to that death the election has been
6revoked and the amount of the contributions that would have
7been paid under this subsection in the absence of the election
8is paid to the System, together with interest at the rate of 4%
9per year from the date the contributions would have been made
10to the date of payment.
11    (c) Beginning July 1, 1967, each participant shall
12contribute 1% of salary towards the cost of automatic increase
13in annuity provided in Section 2-119.1. These contributions
14shall be made concurrently with contributions for retirement
15annuity purposes.
16    (d) In addition, each participant serving as an officer of
17the General Assembly shall contribute, for the same purposes
18and at the same rates as are required of a regular participant,
19on each additional payment received as an officer. If the
20participant serves as an officer for at least 2 but less than 4
21years, he or she shall contribute an amount equal to the amount
22that would have been contributed had the participant served as
23an officer for 4 years. Persons who serve as officers in the
2487th General Assembly but cannot receive the additional payment
25to officers because of the ban on increases in salary during
26their terms may nonetheless make contributions based on those

 

 

09800SB0001sam001- 38 -LRB098 05457 JDS 42954 a

1additional payments for the purpose of having the additional
2payments included in their highest salary for annuity purposes;
3however, persons electing to make these additional
4contributions must also pay an amount representing the
5corresponding employer contributions, as calculated by the
6System.
7    (e) Notwithstanding any other provision of this Article,
8the required contribution of a participant who first becomes a
9participant on or after January 1, 2011 shall not exceed the
10contribution that would be due under this Article if that
11participant's highest salary for annuity purposes were
12$106,800, plus any increases in that amount under Section
132-108.1.
14(Source: P.A. 96-1490, eff. 1-1-11.)
 
15    (40 ILCS 5/2-134)   (from Ch. 108 1/2, par. 2-134)
16    Sec. 2-134. To certify required State contributions and
17submit vouchers.
18    (a) The Board shall certify to the Governor on or before
19December 15 of each year through until December 15, 2011 the
20amount of the required State contribution to the System for the
21next fiscal year and shall specifically identify the System's
22projected State normal cost for that fiscal year. The
23certification shall include a copy of the actuarial
24recommendations upon which it is based and shall specifically
25identify the System's projected State normal cost for that

 

 

09800SB0001sam001- 39 -LRB098 05457 JDS 42954 a

1fiscal year.
2    (a-5) On or before November 1 of each year, beginning
3November 1, 2012, the Board shall submit to the State Actuary,
4the Governor, and the General Assembly a proposed certification
5of the amount of the required State contribution to the System
6for the next fiscal year, along with all of the actuarial
7assumptions, calculations, and data upon which that proposed
8certification is based. On or before January 1 of each year,
9beginning January 1, 2013, the State Actuary shall issue a
10preliminary report concerning the proposed certification and
11identifying, if necessary, recommended changes in actuarial
12assumptions that the Board must consider before finalizing its
13certification of the required State contributions.
14    On or before January 15, 2013 and every January 15
15thereafter, the Board shall certify to the Governor and the
16General Assembly the amount of the required State contribution
17for the next fiscal year. The Board's certification shall
18include a copy of the actuarial recommendations upon which it
19is based and shall specifically identify the System's projected
20State normal cost for that fiscal year. 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 fiscal impact
24of not following the State Actuary's recommended changes on the
25required State contribution.
26    (a-7) On or before May 1, 2004, the Board shall recalculate

 

 

09800SB0001sam001- 40 -LRB098 05457 JDS 42954 a

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

 

 

09800SB0001sam001- 41 -LRB098 05457 JDS 42954 a

1the transfer to the System under subsection (d) of Section
26z-61 of the State Finance Act. These vouchers shall be paid by
3the State Comptroller and Treasurer by warrants drawn on the
4funds appropriated to the System for that fiscal year. If in
5any month the amount remaining unexpended from all other
6appropriations to the System for the applicable fiscal year
7(including the appropriations to the System under Section 8.12
8of the State Finance Act and Section 1 of the State Pension
9Funds Continuing Appropriation Act) is less than the amount
10lawfully vouchered under this Section, the difference shall be
11paid from the General Revenue Fund under the continuing
12appropriation authority provided in Section 1.1 of the State
13Pension Funds Continuing Appropriation Act.
14    (c) The full amount of any annual appropriation for the
15System for State fiscal year 1995 shall be transferred and made
16available to the System at the beginning of that fiscal year at
17the request of the Board. Any excess funds remaining at the end
18of any fiscal year from appropriations shall be retained by the
19System as a general reserve to meet the System's accrued
20liabilities.
21(Source: P.A. 96-1497, eff. 1-14-11; 96-1511, eff. 1-27-11;
2297-694, eff. 6-18-12.)
 
23    (40 ILCS 5/2-162)
24    Sec. 2-162. Application and expiration of new benefit
25increases.

 

 

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

 

 

09800SB0001sam001- 43 -LRB098 05457 JDS 42954 a

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

 

 

09800SB0001sam001- 44 -LRB098 05457 JDS 42954 a

1    (40 ILCS 5/7-109)  (from Ch. 108 1/2, par. 7-109)
2    Sec. 7-109. Employee.
3    (1) "Employee" means any person who:
4        (a) 1. Receives earnings as payment for the performance
5        of personal services or official duties out of the
6        general fund of a municipality, or out of any special
7        fund or funds controlled by a municipality, or by an
8        instrumentality thereof, or a participating
9        instrumentality, including, in counties, the fees or
10        earnings of any county fee office; and
11            2. Under the usual common law rules applicable in
12        determining the employer-employee relationship, has
13        the status of an employee with a municipality, or any
14        instrumentality thereof, or a participating
15        instrumentality, including aldermen, county
16        supervisors and other persons (excepting those
17        employed as independent contractors) who are paid
18        compensation, fees, allowances or other emolument for
19        official duties, and, in counties, the several county
20        fee offices.
21        (b) Serves as a township treasurer appointed under the
22    School Code, as heretofore or hereafter amended, and who
23    receives for such services regular compensation as
24    distinguished from per diem compensation, and any regular
25    employee in the office of any township treasurer whether or
26    not his earnings are paid from the income of the permanent

 

 

09800SB0001sam001- 45 -LRB098 05457 JDS 42954 a

1    township fund or from funds subject to distribution to the
2    several school districts and parts of school districts as
3    provided in the School Code, or from both such sources; or
4    is the chief executive officer, chief educational officer,
5    chief fiscal officer, or other employee of a Financial
6    Oversight Panel established pursuant to Article 1H of the
7    School Code, other than a superintendent or certified
8    school business official, except that such person shall not
9    be treated as an employee under this Section if that person
10    has negotiated with the Financial Oversight Panel, in
11    conjunction with the school district, a contractual
12    agreement for exclusion from this Section.
13        (c) Holds an elective office in a municipality,
14    instrumentality thereof or participating instrumentality.
15    (2) "Employee" does not include persons who:
16        (a) Are eligible for inclusion under any of the
17    following laws:
18            1. "An Act in relation to an Illinois State
19        Teachers' Pension and Retirement Fund", approved May
20        27, 1915, as amended;
21            2. Articles 15 and 16 of this Code.
22        However, such persons shall be included as employees to
23    the extent of earnings that are not eligible for inclusion
24    under the foregoing laws for services not of an
25    instructional nature of any kind.
26        However, any member of the armed forces who is employed

 

 

09800SB0001sam001- 46 -LRB098 05457 JDS 42954 a

1    as a teacher of subjects in the Reserve Officers Training
2    Corps of any school and who is not certified under the law
3    governing the certification of teachers shall be included
4    as an employee.
5        (b) Are designated by the governing body of a
6    municipality in which a pension fund is required by law to
7    be established for policemen or firemen, respectively, as
8    performing police or fire protection duties, except that
9    when such persons are the heads of the police or fire
10    department and are not eligible to be included within any
11    such pension fund, they shall be included within this
12    Article; provided, that such persons shall not be excluded
13    to the extent of concurrent service and earnings not
14    designated as being for police or fire protection duties.
15    However, (i) any head of a police department who was a
16    participant under this Article immediately before October
17    1, 1977 and did not elect, under Section 3-109 of this Act,
18    to participate in a police pension fund shall be an
19    "employee", and (ii) any chief of police who elects to
20    participate in this Fund under Section 3-109.1 of this
21    Code, regardless of whether such person continues to be
22    employed as chief of police or is employed in some other
23    rank or capacity within the police department, shall be an
24    employee under this Article for so long as such person is
25    employed to perform police duties by a participating
26    municipality and has not lawfully rescinded that election.

 

 

09800SB0001sam001- 47 -LRB098 05457 JDS 42954 a

1        (c) After August 26, 2011 (the effective date of Public
2    Act 97-609), are contributors to or eligible to contribute
3    to a Taft-Hartley pension plan established on or before
4    June 1, 2011 and are employees of a theatre, arena, or
5    convention center that is located in a municipality located
6    in a county with a population greater than 5,000,000, and
7    to which the participating municipality is required to
8    contribute as the person's employer based on earnings from
9    the municipality. Nothing in this paragraph shall affect
10    service credit or creditable service for any period of
11    service prior to August 26, 2011, and this paragraph shall
12    not apply to individuals who are participating in the Fund
13    prior to August 26, 2011.
14        (d) Become an employee of any of the following
15    participating instrumentalities on or after the effective
16    date of this amendatory Act of the 98th General Assembly:
17    the Illinois Municipal League; the Illinois Association of
18    Park Districts; the Illinois Supervisors, County
19    Commissioners and Superintendents of Highways Association;
20    an association, or not-for-profit corporation, membership
21    in which is authorized under Section 85-15 of the Township
22    Code; the United Counties Council; or the Will County
23    Governmental League.
24    (3) All persons, including, without limitation, public
25defenders and probation officers, who receive earnings from
26general or special funds of a county for performance of

 

 

09800SB0001sam001- 48 -LRB098 05457 JDS 42954 a

1personal services or official duties within the territorial
2limits of the county, are employees of the county (unless
3excluded by subsection (2) of this Section) notwithstanding
4that they may be appointed by and are subject to the direction
5of a person or persons other than a county board or a county
6officer. It is hereby established that an employer-employee
7relationship under the usual common law rules exists between
8such employees and the county paying their salaries by reason
9of the fact that the county boards fix their rates of
10compensation, appropriate funds for payment of their earnings
11and otherwise exercise control over them. This finding and this
12amendatory Act shall apply to all such employees from the date
13of appointment whether such date is prior to or after the
14effective date of this amendatory Act and is intended to
15clarify existing law pertaining to their status as
16participating employees in the Fund.
17(Source: P.A. 97-429, eff. 8-16-11; 97-609, eff. 8-26-11;
1897-813, eff. 7-13-12.)
 
19    (40 ILCS 5/14-103.10)  (from Ch. 108 1/2, par. 14-103.10)
20    Sec. 14-103.10. Compensation.
21    (a) For periods of service prior to January 1, 1978, the
22full rate of salary or wages payable to an employee for
23personal services performed if he worked the full normal
24working period for his position, subject to the following
25maximum amounts: (1) prior to July 1, 1951, $400 per month or

 

 

09800SB0001sam001- 49 -LRB098 05457 JDS 42954 a

1$4,800 per year; (2) between July 1, 1951 and June 30, 1957
2inclusive, $625 per month or $7,500 per year; (3) beginning
3July 1, 1957, no limitation.
4    In the case of service of an employee in a position
5involving part-time employment, compensation shall be
6determined according to the employees' earnings record.
7    (b) For periods of service on and after January 1, 1978,
8all remuneration for personal services performed defined as
9"wages" under the Social Security Enabling Act, including that
10part of such remuneration which is in excess of any maximum
11limitation provided in such Act, and including any benefits
12received by an employee under a sick pay plan in effect before
13January 1, 1981, but excluding lump sum salary payments:
14        (1) for vacation,
15        (2) for accumulated unused sick leave,
16        (3) upon discharge or dismissal,
17        (4) for approved holidays.
18    (c) For periods of service on or after December 16, 1978,
19compensation also includes any benefits, other than lump sum
20salary payments made at termination of employment, which an
21employee receives or is eligible to receive under a sick pay
22plan authorized by law.
23    (d) For periods of service after September 30, 1985,
24compensation also includes any remuneration for personal
25services not included as "wages" under the Social Security
26Enabling Act, which is deducted for purposes of participation

 

 

09800SB0001sam001- 50 -LRB098 05457 JDS 42954 a

1in a program established pursuant to Section 125 of the
2Internal Revenue Code or its successor laws.
3    (e) For members for which Section 1-160 applies for periods
4of service on and after January 1, 2011, all remuneration for
5personal services performed defined as "wages" under the Social
6Security Enabling Act, excluding remuneration that is in excess
7of the annual earnings, salary, or wages of a member or
8participant, as provided in subsection (b-5) of Section 1-160,
9but including any benefits received by an employee under a sick
10pay plan in effect before January 1, 1981. Compensation shall
11exclude lump sum salary payments:
12        (1) for vacation;
13        (2) for accumulated unused sick leave;
14        (3) upon discharge or dismissal; and
15        (4) for approved holidays.
16    (f) Notwithstanding any other provision of this Code, the
17compensation of a Tier I member for the purposes of this Code
18shall not exceed, for periods of service on or after the
19effective date of this amendatory Act of the 98th General
20Assembly, the greater of (i) the annual contribution and
21benefit base established for the applicable year by the
22Commissioner of Social Security under the federal Social
23Security Act or (ii) the annual compensation of the member
24during the 365 days immediately preceding that effective date;
25except that this limitation does not apply to a member's
26compensation that is determined under an employment contract or

 

 

09800SB0001sam001- 51 -LRB098 05457 JDS 42954 a

1collective bargaining agreement that is in effect on the
2effective date of this amendatory Act of the 98th General
3Assembly and has not been amended or renewed after that date.
4    (g) Notwithstanding the other provisions of this Section,
5for an employee who first becomes a participant on or after the
6effective date of this amendatory Act of the 98th General
7Assembly, "compensation" does not include any payments or
8reimbursements for travel vouchers.
9(Source: P.A. 96-1490, eff. 1-1-11.)
 
10    (40 ILCS 5/14-103.40 new)
11    Sec. 14-103.40. Tier I member. "Tier I member": A member of
12this System who first became a member or participant before
13January 1, 2011 under any reciprocal retirement system or
14pension fund established under this Code other than a
15retirement system or pension fund established under Article 2,
163, 4, 5, 6, or 18 of this Code.
 
17    (40 ILCS 5/14-103.41 new)
18    Sec. 14-103.41. Tier I retiree. "Tier I retiree": A former
19Tier I member who is receiving a retirement annuity.
 
20    (40 ILCS 5/14-106)  (from Ch. 108 1/2, par. 14-106)
21    Sec. 14-106. Membership service credit.
22    (a) After January 1, 1944, all service of a member since he
23last became a member with respect to which contributions are

 

 

09800SB0001sam001- 52 -LRB098 05457 JDS 42954 a

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

 

 

09800SB0001sam001- 53 -LRB098 05457 JDS 42954 a

1accident on the date of withdrawal from service. It shall be
2the responsibility of the last Department to certify to the
3Board the length of time salary or benefits would have been
4paid to the member based upon the accumulated unused sick leave
5or the applicable sick pay plan if he had become entitled
6thereto because of sickness on the date that his status as an
7employee terminated. This period of service credit granted
8under this paragraph shall not be considered in determining the
9date the retirement annuity is to begin, or final average
10compensation.
11    Service credit is not available for unused sick leave
12accumulated by a person who first participates in this System
13on or after the effective date of this amendatory Act of the
1498th General Assembly.
15(Source: P.A. 92-14, eff. 6-28-01.)
 
16    (40 ILCS 5/14-107)  (from Ch. 108 1/2, par. 14-107)
17    Sec. 14-107. Retirement annuity - service and age -
18conditions.
19    (a) A member is entitled to a retirement annuity after
20having at least 8 years of creditable service.
21    (b) A member who has at least 35 years of creditable
22service may claim his or her retirement annuity at any age. A
23member having at least 8 years of creditable service but less
24than 35 may claim his or her retirement annuity upon or after
25attainment of age 60 or, beginning January 1, 2001, any lesser

 

 

09800SB0001sam001- 54 -LRB098 05457 JDS 42954 a

1age which, when added to the number of years of his or her
2creditable service, equals at least 85. A member upon or after
3attainment of age 55 having at least 25 years of creditable
4service (30 years if retirement is before January 1, 2001) may
5elect to receive the lower retirement annuity provided in
6paragraph (c) of Section 14-108 of this Code. For purposes of
7the rule of 85, portions of years shall be counted in whole
8months.
9    (c) Notwithstanding subsection (b) of this Section, for a
10Tier I member who begins receiving a retirement annuity under
11this Article after July 1, 2013:
12        (1) If the Tier I member is at least 45 years old on
13    the effective date of this amendatory Act of the 98th
14    General Assembly, then the references to age 55 and 60 in
15    subsection (b) of this Section remain unchanged and the
16    references to 85 in subsection (b) of this Section remain
17    unchanged.
18        (2) If the Tier I member is at least 40 but less than
19    45 years old on the effective date of this amendatory Act
20    of the 98th General Assembly, then the references to age 55
21    and 60 in subsection (b) of this Section are increased by
22    one year and the references to 85 in subsection (b) are
23    increased to 87.
24        (3) If the Tier I member is at least 35 but less than
25    40 years old on the effective date of this amendatory Act
26    of the 98th General Assembly, then the references to age 55

 

 

09800SB0001sam001- 55 -LRB098 05457 JDS 42954 a

1    and 60 in subsection (b) of this Section are increased by 3
2    years and the references to 85 in subsection (b) are
3    increased to 91.
4        (4) If the Tier I member is less than 35 years old on
5    the effective date of this amendatory Act of the 98th
6    General Assembly, then the references to age 55 and 60 in
7    subsection (b) of this Section are increased by 5 years and
8    the references to 85 in subsection (b) are increased to 95.
9    Notwithstanding Section 1-103.1, this subsection (c)
10applies without regard to whether or not the Tier I 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 has
22contributed 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

 

 

09800SB0001sam001- 56 -LRB098 05457 JDS 42954 a

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

 

 

09800SB0001sam001- 57 -LRB098 05457 JDS 42954 a

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

 

 

09800SB0001sam001- 58 -LRB098 05457 JDS 42954 a

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

 

 

09800SB0001sam001- 59 -LRB098 05457 JDS 42954 a

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

 

 

09800SB0001sam001- 60 -LRB098 05457 JDS 42954 a

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 I member who begins receiving a retirement annuity under

 

 

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1this Section after July 1, 2013:
2        (1) If the Tier I member is at least 45 years old on
3    the effective date of this amendatory Act of the 98th
4    General Assembly, then the references to age 50 and 55 in
5    subsection (a) of this Section remain unchanged.
6        (2) If the Tier I member is at least 40 but less than
7    45 years old on the effective date of this amendatory Act
8    of the 98th General Assembly, then the references to age 50
9    and 55 in subsection (a) of this Section are increased by
10    one year.
11        (3) If the Tier I member is at least 35 but less than
12    40 years old on the effective date of this amendatory Act
13    of the 98th General Assembly, then the references to age 50
14    and 55 in subsection (a) of this Section are increased by 3
15    years.
16        (4) If the Tier I member is less than 35 years old on
17    the effective date of this amendatory Act of the 98th
18    General Assembly, then the references to age 50 and 55 in
19    subsection (a) of this Section are increased by 5 years.
20    Notwithstanding Section 1-103.1, this subsection (a-5)
21applies without regard to whether or not the Tier I member is
22in active service under this Article on or after the effective
23date of this amendatory Act of the 98th General Assembly.
24    (b) For the purpose of this Section, "eligible creditable
25service" means creditable service resulting from service in one
26or more of the following positions:

 

 

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1        (1) State policeman;
2        (2) fire fighter in the fire protection service of a
3    department;
4        (3) air pilot;
5        (4) special agent;
6        (5) investigator for the Secretary of State;
7        (6) conservation police officer;
8        (7) investigator for the Department of Revenue or the
9    Illinois Gaming Board;
10        (8) security employee of the Department of Human
11    Services;
12        (9) Central Management Services security police
13    officer;
14        (10) security employee of the Department of
15    Corrections or the Department of Juvenile Justice;
16        (11) dangerous drugs investigator;
17        (12) investigator for the Department of State Police;
18        (13) investigator for the Office of the Attorney
19    General;
20        (14) controlled substance inspector;
21        (15) investigator for the Office of the State's
22    Attorneys Appellate Prosecutor;
23        (16) Commerce Commission police officer;
24        (17) arson investigator;
25        (18) State highway maintenance worker.
26    A person employed in one of the positions specified in this

 

 

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1subsection is entitled to eligible creditable service for
2service credit earned under this Article while undergoing the
3basic police training course approved by the Illinois Law
4Enforcement Training Standards Board, if completion of that
5training is required of persons serving in that position. For
6the purposes of this Code, service during the required basic
7police training course shall be deemed performance of the
8duties of the specified position, even though the person is not
9a sworn peace officer at the time of the training.
10    (c) For the purposes of this Section:
11        (1) The term "state policeman" includes any title or
12    position in the Department of State Police that is held by
13    an individual employed under the State Police Act.
14        (2) The term "fire fighter in the fire protection
15    service of a department" includes all officers in such fire
16    protection service including fire chiefs and assistant
17    fire chiefs.
18        (3) The term "air pilot" includes any employee whose
19    official job description on file in the Department of
20    Central Management Services, or in the department by which
21    he is employed if that department is not covered by the
22    Personnel Code, states that his principal duty is the
23    operation of aircraft, and who possesses a pilot's license;
24    however, the change in this definition made by this
25    amendatory Act of 1983 shall not operate to exclude any
26    noncovered employee who was an "air pilot" for the purposes

 

 

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1    of this Section on January 1, 1984.
2        (4) The term "special agent" means any person who by
3    reason of employment by the Division of Narcotic Control,
4    the Bureau of Investigation or, after July 1, 1977, the
5    Division of Criminal Investigation, the Division of
6    Internal Investigation, the Division of Operations, or any
7    other Division or organizational entity in the Department
8    of State Police is vested by law with duties to maintain
9    public order, investigate violations of the criminal law of
10    this State, enforce the laws of this State, make arrests
11    and recover property. The term "special agent" includes any
12    title or position in the Department of State Police that is
13    held by an individual employed under the State Police Act.
14        (5) The term "investigator for the Secretary of State"
15    means any person employed by the Office of the Secretary of
16    State and vested with such investigative duties as render
17    him ineligible for coverage under the Social Security Act
18    by reason of Sections 218(d)(5)(A), 218(d)(8)(D) and
19    218(l)(1) of that Act.
20        A person who became employed as an investigator for the
21    Secretary of State between January 1, 1967 and December 31,
22    1975, and who has served as such until attainment of age
23    60, either continuously or with a single break in service
24    of not more than 3 years duration, which break terminated
25    before January 1, 1976, shall be entitled to have his
26    retirement annuity calculated in accordance with

 

 

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1    subsection (a), notwithstanding that he has less than 20
2    years of credit for such service.
3        (6) The term "Conservation Police Officer" means any
4    person employed by the Division of Law Enforcement of the
5    Department of Natural Resources and vested with such law
6    enforcement duties as render him ineligible for coverage
7    under the Social Security Act by reason of Sections
8    218(d)(5)(A), 218(d)(8)(D), and 218(l)(1) of that Act. The
9    term "Conservation Police Officer" includes the positions
10    of Chief Conservation Police Administrator and Assistant
11    Conservation Police Administrator.
12        (7) The term "investigator for the Department of
13    Revenue" means any person employed by the Department of
14    Revenue and vested with such investigative duties as render
15    him ineligible for coverage under the Social Security Act
16    by reason of Sections 218(d)(5)(A), 218(d)(8)(D) and
17    218(l)(1) of that Act.
18        The term "investigator for the Illinois Gaming Board"
19    means any person employed as such by the Illinois Gaming
20    Board and vested with such peace officer duties as render
21    the person ineligible for coverage under the Social
22    Security Act by reason of Sections 218(d)(5)(A),
23    218(d)(8)(D), and 218(l)(1) of that Act.
24        (8) The term "security employee of the Department of
25    Human Services" means any person employed by the Department
26    of Human Services who (i) is employed at the Chester Mental

 

 

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1    Health Center and has daily contact with the residents
2    thereof, (ii) is employed within a security unit at a
3    facility operated by the Department and has daily contact
4    with the residents of the security unit, (iii) is employed
5    at a facility operated by the Department that includes a
6    security unit and is regularly scheduled to work at least
7    50% of his or her working hours within that security unit,
8    or (iv) is a mental health police officer. "Mental health
9    police officer" means any person employed by the Department
10    of Human Services in a position pertaining to the
11    Department's mental health and developmental disabilities
12    functions who is vested with such law enforcement duties as
13    render the person ineligible for coverage under the Social
14    Security Act by reason of Sections 218(d)(5)(A),
15    218(d)(8)(D) and 218(l)(1) of that Act. "Security unit"
16    means that portion of a facility that is devoted to the
17    care, containment, and treatment of persons committed to
18    the Department of Human Services as sexually violent
19    persons, persons unfit to stand trial, or persons not
20    guilty by reason of insanity. With respect to past
21    employment, references to the Department of Human Services
22    include its predecessor, the Department of Mental Health
23    and Developmental Disabilities.
24        The changes made to this subdivision (c)(8) by Public
25    Act 92-14 apply to persons who retire on or after January
26    1, 2001, notwithstanding Section 1-103.1.

 

 

09800SB0001sam001- 68 -LRB098 05457 JDS 42954 a

1        (9) "Central Management Services security police
2    officer" means any person employed by the Department of
3    Central Management Services who is vested with such law
4    enforcement duties as render him ineligible for coverage
5    under the Social Security Act by reason of Sections
6    218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that Act.
7        (10) For a member who first became an employee under
8    this Article before July 1, 2005, the term "security
9    employee of the Department of Corrections or the Department
10    of Juvenile Justice" means any employee of the Department
11    of Corrections or the Department of Juvenile Justice or the
12    former Department of Personnel, and any member or employee
13    of the Prisoner Review Board, who has daily contact with
14    inmates or youth by working within a correctional facility
15    or Juvenile facility operated by the Department of Juvenile
16    Justice or who is a parole officer or an employee who has
17    direct contact with committed persons in the performance of
18    his or her job duties. For a member who first becomes an
19    employee under this Article on or after July 1, 2005, the
20    term means an employee of the Department of Corrections or
21    the Department of Juvenile Justice who is any of the
22    following: (i) officially headquartered at a correctional
23    facility or Juvenile facility operated by the Department of
24    Juvenile Justice, (ii) a parole officer, (iii) a member of
25    the apprehension unit, (iv) a member of the intelligence
26    unit, (v) a member of the sort team, or (vi) an

 

 

09800SB0001sam001- 69 -LRB098 05457 JDS 42954 a

1    investigator.
2        (11) The term "dangerous drugs investigator" means any
3    person who is employed as such by the Department of Human
4    Services.
5        (12) The term "investigator for the Department of State
6    Police" means a person employed by the Department of State
7    Police who is vested under Section 4 of the Narcotic
8    Control Division Abolition Act with such law enforcement
9    powers as render him ineligible for coverage under the
10    Social Security Act by reason of Sections 218(d)(5)(A),
11    218(d)(8)(D) and 218(l)(1) of that Act.
12        (13) "Investigator for the Office of the Attorney
13    General" means any person who is employed as such by the
14    Office of the Attorney General and is vested with such
15    investigative duties as render him ineligible for coverage
16    under the Social Security Act by reason of Sections
17    218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that Act. For
18    the period before January 1, 1989, the term includes all
19    persons who were employed as investigators by the Office of
20    the Attorney General, without regard to social security
21    status.
22        (14) "Controlled substance inspector" means any person
23    who is employed as such by the Department of Professional
24    Regulation and is vested with such law enforcement duties
25    as render him ineligible for coverage under the Social
26    Security Act by reason of Sections 218(d)(5)(A),

 

 

09800SB0001sam001- 70 -LRB098 05457 JDS 42954 a

1    218(d)(8)(D) and 218(l)(1) of that Act. The term
2    "controlled substance inspector" includes the Program
3    Executive of Enforcement and the Assistant Program
4    Executive of Enforcement.
5        (15) The term "investigator for the Office of the
6    State's Attorneys Appellate Prosecutor" means a person
7    employed in that capacity on a full time basis under the
8    authority of Section 7.06 of the State's Attorneys
9    Appellate Prosecutor's Act.
10        (16) "Commerce Commission police officer" means any
11    person employed by the Illinois Commerce Commission who is
12    vested with such law enforcement duties as render him
13    ineligible for coverage under the Social Security Act by
14    reason of Sections 218(d)(5)(A), 218(d)(8)(D), and
15    218(l)(1) of that Act.
16        (17) "Arson investigator" means any person who is
17    employed as such by the Office of the State Fire Marshal
18    and is vested with such law enforcement duties as render
19    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. A person who was
22    employed as an arson investigator on January 1, 1995 and is
23    no longer in service but not yet receiving a retirement
24    annuity may convert his or her creditable service for
25    employment as an arson investigator into eligible
26    creditable service by paying to the System the difference

 

 

09800SB0001sam001- 71 -LRB098 05457 JDS 42954 a

1    between the employee contributions actually paid for that
2    service and the amounts that would have been contributed if
3    the applicant were contributing at the rate applicable to
4    persons with the same social security status earning
5    eligible creditable service on the date of application.
6        (18) The term "State highway maintenance worker" means
7    a person who is either of the following:
8            (i) A person employed on a full-time basis by the
9        Illinois Department of Transportation in the position
10        of highway maintainer, highway maintenance lead
11        worker, highway maintenance lead/lead worker, heavy
12        construction equipment operator, power shovel
13        operator, or bridge mechanic; and whose principal
14        responsibility is to perform, on the roadway, the
15        actual maintenance necessary to keep the highways that
16        form a part of the State highway system in serviceable
17        condition for vehicular traffic.
18            (ii) A person employed on a full-time basis by the
19        Illinois State Toll Highway Authority in the position
20        of equipment operator/laborer H-4, equipment
21        operator/laborer H-6, welder H-4, welder H-6,
22        mechanical/electrical H-4, mechanical/electrical H-6,
23        water/sewer H-4, water/sewer H-6, sign maker/hanger
24        H-4, sign maker/hanger H-6, roadway lighting H-4,
25        roadway lighting H-6, structural H-4, structural H-6,
26        painter H-4, or painter H-6; and whose principal

 

 

09800SB0001sam001- 72 -LRB098 05457 JDS 42954 a

1        responsibility is to perform, on the roadway, the
2        actual maintenance necessary to keep the Authority's
3        tollways in serviceable condition for vehicular
4        traffic.
5    (d) A security employee of the Department of Corrections or
6the Department of Juvenile Justice, and a security employee of
7the Department of Human Services who is not a mental health
8police officer, shall not be eligible for the alternative
9retirement annuity provided by this Section unless he or she
10meets the following minimum age and service requirements at the
11time of retirement:
12        (i) 25 years of eligible creditable service and age 55;
13    or
14        (ii) beginning January 1, 1987, 25 years of eligible
15    creditable service and age 54, or 24 years of eligible
16    creditable service and age 55; or
17        (iii) beginning January 1, 1988, 25 years of eligible
18    creditable service and age 53, or 23 years of eligible
19    creditable service and age 55; or
20        (iv) beginning January 1, 1989, 25 years of eligible
21    creditable service and age 52, or 22 years of eligible
22    creditable service and age 55; or
23        (v) beginning January 1, 1990, 25 years of eligible
24    creditable service and age 51, or 21 years of eligible
25    creditable service and age 55; or
26        (vi) beginning January 1, 1991, 25 years of eligible

 

 

09800SB0001sam001- 73 -LRB098 05457 JDS 42954 a

1    creditable service and age 50, or 20 years of eligible
2    creditable service and age 55.
3    For members to whom subsection (a-5) of this Section
4applies, the references to age 50 and 55 in item (vi) of this
5subsection are increased as provided in subsection (a-5).
6    Persons who have service credit under Article 16 of this
7Code for service as a security employee of the Department of
8Corrections or the Department of Juvenile Justice, or the
9Department of Human Services in a position requiring
10certification as a teacher may count such service toward
11establishing their eligibility under the service requirements
12of this Section; but such service may be used only for
13establishing such eligibility, and not for the purpose of
14increasing or calculating any benefit.
15    (e) If a member enters military service while working in a
16position in which eligible creditable service may be earned,
17and returns to State service in the same or another such
18position, and fulfills in all other respects the conditions
19prescribed in this Article for credit for military service,
20such military service shall be credited as eligible creditable
21service for the purposes of the retirement annuity prescribed
22in this Section.
23    (f) For purposes of calculating retirement annuities under
24this Section, periods of service rendered after December 31,
251968 and before October 1, 1975 as a covered employee in the
26position of special agent, conservation police officer, mental

 

 

09800SB0001sam001- 74 -LRB098 05457 JDS 42954 a

1health police officer, or investigator for the Secretary of
2State, shall be deemed to have been service as a noncovered
3employee, provided that the employee pays to the System prior
4to retirement an amount equal to (1) the difference between the
5employee contributions that would have been required for such
6service as a noncovered employee, and the amount of employee
7contributions actually paid, plus (2) if payment is made after
8July 31, 1987, regular interest on the amount specified in item
9(1) from the date of service to the date of payment.
10    For purposes of calculating retirement annuities under
11this Section, periods of service rendered after December 31,
121968 and before January 1, 1982 as a covered employee in the
13position of investigator for the Department of Revenue shall be
14deemed to have been service as a noncovered employee, provided
15that the employee pays to the System prior to retirement an
16amount equal to (1) the difference between the employee
17contributions that would have been required for such service as
18a noncovered employee, and the amount of employee contributions
19actually paid, plus (2) if payment is made after January 1,
201990, regular interest on the amount specified in item (1) from
21the date of service to the date of payment.
22    (g) A State policeman may elect, not later than January 1,
231990, to establish eligible creditable service for up to 10
24years of his service as a policeman under Article 3, by filing
25a written election with the Board, accompanied by payment of an
26amount to be determined by the Board, equal to (i) the

 

 

09800SB0001sam001- 75 -LRB098 05457 JDS 42954 a

1difference between the amount of employee and employer
2contributions transferred to the System under Section 3-110.5,
3and the amounts that would have been contributed had such
4contributions been made at the rates applicable to State
5policemen, plus (ii) interest thereon at the effective rate for
6each year, compounded annually, from the date of service to the
7date of payment.
8    Subject to the limitation in subsection (i), a State
9policeman may elect, not later than July 1, 1993, to establish
10eligible creditable service for up to 10 years of his service
11as a member of the County Police Department under Article 9, by
12filing a written election with the Board, accompanied by
13payment of an amount to be determined by the Board, equal to
14(i) the difference between the amount of employee and employer
15contributions transferred to the System under Section 9-121.10
16and the amounts that would have been contributed had those
17contributions been made at the rates applicable to State
18policemen, plus (ii) interest thereon at the effective rate for
19each year, compounded annually, from the date of service to the
20date of payment.
21    (h) Subject to the limitation in subsection (i), a State
22policeman or investigator for the Secretary of State may elect
23to establish eligible creditable service for up to 12 years of
24his service as a policeman under Article 5, by filing a written
25election with the Board on or before January 31, 1992, and
26paying to the System by January 31, 1994 an amount to be

 

 

09800SB0001sam001- 76 -LRB098 05457 JDS 42954 a

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

 

 

09800SB0001sam001- 77 -LRB098 05457 JDS 42954 a

1sheriff's law enforcement employee under Article 7, a member of
2the county police department under Article 9, or a police
3officer under Article 15 by filing a written election with the
4Board and paying to the System an amount to be determined by
5the Board, equal to (i) the difference between the amount of
6employee and employer contributions transferred to the System
7under Section 3-110.6, 5-236, 7-139.8, 9-121.10, or 15-134.4
8and the amounts that would have been contributed had such
9contributions been made at the rates applicable to State
10policemen, plus (ii) interest thereon at the effective rate for
11each year, compounded annually, from the date of service to the
12date of payment.
13    Subject to the limitation in subsection (i), an
14investigator for the Office of the Attorney General, or an
15investigator for the Department of Revenue, may elect to
16establish eligible creditable service for up to 5 years of
17service as a police officer under Article 3, a policeman under
18Article 5, a sheriff's law enforcement employee under Article
197, or a member of the county police department under Article 9
20by filing a written election with the Board within 6 months
21after August 25, 2009 (the effective date of Public Act 96-745)
22and paying to the System an amount to be determined by the
23Board, equal to (i) the difference between the amount of
24employee and employer contributions transferred to the System
25under Section 3-110.6, 5-236, 7-139.8, or 9-121.10 and the
26amounts that would have been contributed had such contributions

 

 

09800SB0001sam001- 78 -LRB098 05457 JDS 42954 a

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

 

 

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1and (l) of this Section shall not exceed 12 years.
2    (j) Subject to the limitation in subsection (i), an
3investigator for the Office of the State's Attorneys Appellate
4Prosecutor or a controlled substance inspector may elect to
5establish eligible creditable service for up to 10 years of his
6service as a policeman under Article 3 or a sheriff's law
7enforcement employee under Article 7, by filing a written
8election with the Board, accompanied by payment of an amount to
9be determined by the Board, equal to (1) the difference between
10the amount of employee and employer contributions transferred
11to the System under Section 3-110.6 or 7-139.8, and the amounts
12that would have been contributed had such contributions been
13made at the rates applicable to State policemen, plus (2)
14interest thereon at the effective rate for each year,
15compounded annually, from the date of service to the date of
16payment.
17    (k) Subject to the limitation in subsection (i) of this
18Section, an alternative formula employee may elect to establish
19eligible creditable service for periods spent as a full-time
20law enforcement officer or full-time corrections officer
21employed by the federal government or by a state or local
22government located outside of Illinois, for which credit is not
23held in any other public employee pension fund or retirement
24system. To obtain this credit, the applicant must file a
25written application with the Board by March 31, 1998,
26accompanied by evidence of eligibility acceptable to the Board

 

 

09800SB0001sam001- 80 -LRB098 05457 JDS 42954 a

1and payment of an amount to be determined by the Board, equal
2to (1) employee contributions for the credit being established,
3based upon the applicant's salary on the first day as an
4alternative formula employee after the employment for which
5credit is being established and the rates then applicable to
6alternative formula employees, plus (2) an amount determined by
7the Board to be the employer's normal cost of the benefits
8accrued for the credit being established, plus (3) regular
9interest on the amounts in items (1) and (2) from the first day
10as an alternative formula employee after the employment for
11which credit is being established to the date of payment.
12    (l) Subject to the limitation in subsection (i), a security
13employee of the Department of Corrections may elect, not later
14than July 1, 1998, to establish eligible creditable service for
15up to 10 years of his or her service as a policeman under
16Article 3, by filing a written election with the Board,
17accompanied by payment of an amount to be determined by the
18Board, equal to (i) the difference between the amount of
19employee and employer contributions transferred to the System
20under Section 3-110.5, and the amounts that would have been
21contributed had such contributions been made at the rates
22applicable to security employees of the Department of
23Corrections, plus (ii) interest thereon at the effective rate
24for each year, compounded annually, from the date of service to
25the date of payment.
26    (m) The amendatory changes to this Section made by this

 

 

09800SB0001sam001- 81 -LRB098 05457 JDS 42954 a

1amendatory Act of the 94th General Assembly apply only to: (1)
2security employees of the Department of Juvenile Justice
3employed by the Department of Corrections before the effective
4date of this amendatory Act of the 94th General Assembly and
5transferred to the Department of Juvenile Justice by this
6amendatory Act of the 94th General Assembly; and (2) persons
7employed by the Department of Juvenile Justice on or after the
8effective date of this amendatory Act of the 94th General
9Assembly who are required by subsection (b) of Section 3-2.5-15
10of the Unified Code of Corrections to have a bachelor's or
11advanced degree from an accredited college or university with a
12specialization in criminal justice, education, psychology,
13social work, or a closely related social science or, in the
14case of persons who provide vocational training, who are
15required to have adequate knowledge in the skill for which they
16are providing the vocational training.
17    (n) A person employed in a position under subsection (b) of
18this Section who has purchased service credit under subsection
19(j) of Section 14-104 or subsection (b) of Section 14-105 in
20any other capacity under this Article may convert up to 5 years
21of that service credit into service credit covered under this
22Section by paying to the Fund an amount equal to (1) the
23additional employee contribution required under Section
2414-133, plus (2) the additional employer contribution required
25under Section 14-131, plus (3) interest on items (1) and (2) at
26the actuarially assumed rate from the date of the service to

 

 

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1the date of payment.
2(Source: P.A. 95-530, eff. 8-28-07; 95-1036, eff. 2-17-09;
396-37, eff. 7-13-09; 96-745, eff. 8-25-09; 96-1000, eff.
47-2-10.)
 
5    (40 ILCS 5/14-114)  (from Ch. 108 1/2, par. 14-114)
6    Sec. 14-114. Automatic increase in retirement annuity.
7    (a) Except as provided in subsections (a-1), (a-2), and
8(a-3) of this Section, any Any person receiving a retirement
9annuity under this Article who retires having attained age 60,
10or who retires before age 60 having at least 35 years of
11creditable service, or who retires on or after January 1, 2001
12at an age which, when added to the number of years of his or her
13creditable service, equals at least 85, shall, on January 1
14next following the first full year of retirement, have the
15amount of the then fixed and payable monthly retirement annuity
16increased 3%. Any person receiving a retirement annuity under
17this Article who retires before attainment of age 60 and with
18less than (i) 35 years of creditable service if retirement is
19before January 1, 2001, or (ii) the number of years of
20creditable service which, when added to the member's age, would
21equal 85, if retirement is on or after January 1, 2001, shall
22have the amount of the fixed and payable retirement annuity
23increased by 3% on the January 1 occurring on or next following
24(1) attainment of age 60, or (2) the first anniversary of
25retirement, whichever occurs later. However, for persons who

 

 

09800SB0001sam001- 83 -LRB098 05457 JDS 42954 a

1receive the alternative retirement annuity under Section
214-110, references in this subsection (a) to attainment of age
360 shall be deemed to refer to attainment of age 55. For a
4person receiving early retirement incentives under Section
514-108.3 whose retirement annuity began after January 1, 1992
6pursuant to an extension granted under subsection (e) of that
7Section, the first anniversary of retirement shall be deemed to
8be January 1, 1993. For a person who retires on or after June
928, 2001 and on or before October 1, 2001, and whose retirement
10annuity is calculated, in whole or in part, under Section
1114-110 or subsection (g) or (h) of Section 14-108, the first
12anniversary of retirement shall be deemed to be January 1,
132002.
14    On each January 1 following the date of the initial
15increase under this subsection, the employee's monthly
16retirement annuity shall be increased by an additional 3%.
17    Beginning January 1, 1990 and except as provided in
18subsections (a-1), (a-2), and (a-3) of this Section, all
19automatic annual increases payable under this Section shall be
20calculated as a percentage of the total annuity payable at the
21time of the increase, including previous increases granted
22under this Article.
23    (a-1) Notwithstanding any other provision of this Article,
24except subsection (a-3) of this Section, for a Tier I retiree,
25the amount of each automatic annual increase in retirement
26annuity occurring on or after the effective date of this

 

 

09800SB0001sam001- 84 -LRB098 05457 JDS 42954 a

1amendatory Act of the 98th General Assembly shall be the lesser
2of $600 ($750 if the annuity is based primarily upon service as
3a noncovered employee) or 3% of the total annuity payable at
4the time of the increase, including previous increases granted.
5    (a-2) Notwithstanding any other provision of this Article,
6except subsection (a-3) of this Section, for a Tier I retiree,
7the monthly retirement annuity shall first be subject to annual
8increases on the January 1 occurring on or next after the
9attainment of age 67 or the January 1 occurring on or next
10after the fifth anniversary of the annuity start date,
11whichever occurs earlier. If on the effective date of this
12amendatory Act of the 98th General Assembly a Tier I retiree
13has already received an annual increase under this Section but
14does not yet meet the new eligibility requirements of this
15subsection, the annual increases already received shall
16continue in force, but no additional annual increase shall be
17granted until the Tier I retiree meets the new eligibility
18requirements.
19    (a-3) Notwithstanding any other provision of this Article,
20a Tier I retiree is ineligible to receive an automatic annual
21increase in retirement annuity pursuant to this Section, unless
22he or she has 20 years of creditable service under this
23Article. If on the effective date of this amendatory Act of the
2498th General Assembly a Tier I retiree has already received an
25annual increase under this Section but does not yet meet the
26new eligibility requirements of this subsection, the annual

 

 

09800SB0001sam001- 85 -LRB098 05457 JDS 42954 a

1increases already received shall continue in force, but no
2additional annual increase shall be granted until the Tier I
3retiree meets the new eligibility requirements.
4    (a-4) Notwithstanding Section 1-103.1, subsections (a-1),
5(a-2), and (a-3) of this Section apply without regard to
6whether or not the Tier I retiree is in active service under
7this Article on or after the effective date of this amendatory
8Act of the 98th General Assembly.
9    (b) The provisions of subsection (a) of this Section shall
10be applicable to an employee only if the employee makes the
11additional contributions required after December 31, 1969 for
12the purpose of the automatic increases for not less than the
13equivalent of one full year. If an employee becomes an
14annuitant before his additional contributions equal one full
15year's contributions based on his salary at the date of
16retirement, the employee may pay the necessary balance of the
17contributions to the system, without interest, and be eligible
18for the increasing annuity authorized by this Section.
19    (c) The provisions of subsection (a) of this Section shall
20not be applicable to any annuitant who is on retirement on
21December 31, 1969, and thereafter returns to State service,
22unless the member has established at least one year of
23additional creditable service following reentry into service.
24    (d) In addition to other increases which may be provided by
25this Section, on January 1, 1981 any annuitant who was
26receiving a retirement annuity on or before January 1, 1971

 

 

09800SB0001sam001- 86 -LRB098 05457 JDS 42954 a

1shall have his retirement annuity then being paid increased $1
2per month for each year of creditable service. On January 1,
31982, any annuitant who began receiving a retirement annuity on
4or before January 1, 1977, shall have his retirement annuity
5then being paid increased $1 per month for each year of
6creditable service.
7    On January 1, 1987, any annuitant who began receiving a
8retirement annuity on or before January 1, 1977, shall have the
9monthly retirement annuity increased by an amount equal to 8
10per year of creditable service times the number of years that
11have elapsed since the annuity began.
12    (e) Every person who receives the alternative retirement
13annuity under Section 14-110 and who is eligible to receive the
143% increase under subsection (a) on January 1, 1986, shall also
15receive on that date a one-time increase in retirement annuity
16equal to the difference between (1) his actual retirement
17annuity on that date, including any increases received under
18subsection (a), and (2) the amount of retirement annuity he
19would have received on that date if the amendments to
20subsection (a) made by Public Act 84-162 had been in effect
21since the date of his retirement.
22(Source: P.A. 91-927, eff. 12-14-00; 92-14, eff. 6-28-01;
2392-651, eff. 7-11-02.)
 
24    (40 ILCS 5/14-131)
25    Sec. 14-131. Contributions by State.

 

 

09800SB0001sam001- 87 -LRB098 05457 JDS 42954 a

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

 

 

09800SB0001sam001- 88 -LRB098 05457 JDS 42954 a

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

 

 

09800SB0001sam001- 89 -LRB098 05457 JDS 42954 a

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

 

 

09800SB0001sam001- 90 -LRB098 05457 JDS 42954 a

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

 

 

09800SB0001sam001- 91 -LRB098 05457 JDS 42954 a

1law of this State, the certified percentage of the applicable
2employee payroll shall be 5.052% for employees earning eligible
3creditable service under Section 14-110 and 6.500% for all
4other employees, notwithstanding any contrary certification
5made under Section 14-135.08 before the effective date of this
6amendatory Act of 1997, and (ii) in the following specified
7State fiscal years, the State contribution to the System shall
8not be less than the following indicated percentages of the
9applicable employee payroll, even if the indicated percentage
10will produce a State contribution in excess of the amount
11otherwise required under this subsection and subsection (a):
129.8% in FY 1999; 10.0% in FY 2000; 10.2% in FY 2001; 10.4% in FY
132002; 10.6% in FY 2003; and 10.8% in FY 2004.
14    Notwithstanding any other provision of this Article, the
15total required State contribution to the System for State
16fiscal year 2006 is $203,783,900.
17    Notwithstanding any other provision of this Article, the
18total required State contribution to the System for State
19fiscal year 2007 is $344,164,400.
20    For each of State fiscal years 2008 through 2009, the State
21contribution to the System, as a percentage of the applicable
22employee payroll, shall be increased in equal annual increments
23from the required State contribution for State fiscal year
242007, so that by State fiscal year 2011, the State is
25contributing at the rate otherwise required under this Section.
26    Notwithstanding any other provision of this Article, the

 

 

09800SB0001sam001- 92 -LRB098 05457 JDS 42954 a

1total required State General Revenue Fund contribution for
2State fiscal year 2010 is $723,703,100 and shall be made from
3the proceeds of bonds sold in fiscal year 2010 pursuant to
4Section 7.2 of the General Obligation Bond Act, less (i) the
5pro rata share of bond sale expenses determined by the System's
6share of total bond proceeds, (ii) any amounts received from
7the General Revenue Fund in fiscal year 2010, and (iii) any
8reduction in bond proceeds due to the issuance of discounted
9bonds, if applicable.
10    Notwithstanding any other provision of this Article, the
11total required State General Revenue Fund contribution for
12State fiscal year 2011 is the amount recertified by the System
13on or before April 1, 2011 pursuant to Section 14-135.08 and
14shall be made from the proceeds of bonds sold in fiscal year
152011 pursuant to Section 7.2 of the General Obligation Bond
16Act, less (i) the pro rata share of bond sale expenses
17determined by the System's share of total bond proceeds, (ii)
18any amounts received from the General Revenue Fund in fiscal
19year 2011, and (iii) any reduction in bond proceeds due to the
20issuance of discounted bonds, if applicable.
21    Beginning in State fiscal year 2044, the minimum State
22contribution for each fiscal year shall be the amount needed to
23maintain the total assets of the System at 100% of the total
24actuarial liabilities of the System.
25    Beginning in State fiscal year 2046, the minimum State
26contribution for each fiscal year shall be the amount needed to

 

 

09800SB0001sam001- 93 -LRB098 05457 JDS 42954 a

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

 

 

09800SB0001sam001- 94 -LRB098 05457 JDS 42954 a

1and certified by the Comptroller, that is the same as the
2System's portion of the total moneys distributed under
3subsection (d) of Section 7.2 of the General Obligation Bond
4Act. In determining this maximum for State fiscal years 2008
5through 2010, however, the amount referred to in item (i) shall
6be increased, as a percentage of the applicable employee
7payroll, in equal increments calculated from the sum of the
8required State contribution for State fiscal year 2007 plus the
9applicable portion of the State's total debt service payments
10for fiscal year 2007 on the bonds issued in fiscal year 2003
11for the purposes of Section 7.2 of the General Obligation Bond
12Act, so that, by State fiscal year 2011, the State is
13contributing at the rate otherwise required under this Section.
14    (f) After the submission of all payments for eligible
15employees from personal services line items in fiscal year 2004
16have been made, the Comptroller shall provide to the System a
17certification of the sum of all fiscal year 2004 expenditures
18for personal services that would have been covered by payments
19to the System under this Section if the provisions of this
20amendatory Act of the 93rd General Assembly had not been
21enacted. Upon receipt of the certification, the System shall
22determine the amount due to the System based on the full rate
23certified by the Board under Section 14-135.08 for fiscal year
242004 in order to meet the State's obligation under this
25Section. The System shall compare this amount due to the amount
26received by the System in fiscal year 2004 through payments

 

 

09800SB0001sam001- 95 -LRB098 05457 JDS 42954 a

1under this Section and under Section 6z-61 of the State Finance
2Act. If the amount due is more than the amount received, the
3difference shall be termed the "Fiscal Year 2004 Shortfall" for
4purposes of this Section, and the Fiscal Year 2004 Shortfall
5shall be satisfied under Section 1.2 of the State Pension Funds
6Continuing Appropriation Act. If the amount due is less than
7the amount received, the difference shall be termed the "Fiscal
8Year 2004 Overpayment" for purposes of this Section, and the
9Fiscal Year 2004 Overpayment shall be repaid by the System to
10the Pension Contribution Fund as soon as practicable after the
11certification.
12    (g) For purposes of determining the required State
13contribution to the System, the value of the System's assets
14shall be equal to the actuarial value of the System's assets,
15which shall be calculated as follows:
16    As of June 30, 2008, the actuarial value of the System's
17assets shall be equal to the market value of the assets as of
18that date. In determining the actuarial value of the System's
19assets for fiscal years after June 30, 2008, any actuarial
20gains or losses from investment return incurred in a fiscal
21year shall be recognized in equal annual amounts over the
225-year period following that fiscal year.
23    (h) For purposes of determining the required State
24contribution to the System for a particular year, the actuarial
25value of assets shall be assumed to earn a rate of return equal
26to the System's actuarially assumed rate of return.

 

 

09800SB0001sam001- 96 -LRB098 05457 JDS 42954 a

1    (i) After the submission of all payments for eligible
2employees from personal services line items paid from the
3General Revenue Fund in fiscal year 2010 have been made, the
4Comptroller shall provide to the System a certification of the
5sum of all fiscal year 2010 expenditures for personal services
6that would have been covered by payments to the System under
7this Section if the provisions of this amendatory Act of the
896th General Assembly had not been enacted. Upon receipt of the
9certification, the System shall determine the amount due to the
10System based on the full rate certified by the Board under
11Section 14-135.08 for fiscal year 2010 in order to meet the
12State's obligation under this Section. The System shall compare
13this amount due to the amount received by the System in fiscal
14year 2010 through payments under this Section. If the amount
15due is more than the amount received, the difference shall be
16termed the "Fiscal Year 2010 Shortfall" for purposes of this
17Section, and the Fiscal Year 2010 Shortfall shall be satisfied
18under Section 1.2 of the State Pension Funds Continuing
19Appropriation Act. If the amount due is less than the amount
20received, the difference shall be termed the "Fiscal Year 2010
21Overpayment" for purposes of this Section, and the Fiscal Year
222010 Overpayment shall be repaid by the System to the General
23Revenue Fund as soon as practicable after the certification.
24    (j) After the submission of all payments for eligible
25employees from personal services line items paid from the
26General Revenue Fund in fiscal year 2011 have been made, the

 

 

09800SB0001sam001- 97 -LRB098 05457 JDS 42954 a

1Comptroller shall provide to the System a certification of the
2sum of all fiscal year 2011 expenditures for personal services
3that would have been covered by payments to the System under
4this Section if the provisions of this amendatory Act of the
596th General Assembly had not been enacted. Upon receipt of the
6certification, the System shall determine the amount due to the
7System based on the full rate certified by the Board under
8Section 14-135.08 for fiscal year 2011 in order to meet the
9State's obligation under this Section. The System shall compare
10this amount due to the amount received by the System in fiscal
11year 2011 through payments under this Section. If the amount
12due is more than the amount received, the difference shall be
13termed the "Fiscal Year 2011 Shortfall" for purposes of this
14Section, and the Fiscal Year 2011 Shortfall shall be satisfied
15under Section 1.2 of the State Pension Funds Continuing
16Appropriation Act. If the amount due is less than the amount
17received, the difference shall be termed the "Fiscal Year 2011
18Overpayment" for purposes of this Section, and the Fiscal Year
192011 Overpayment shall be repaid by the System to the General
20Revenue Fund as soon as practicable after the certification.
21    (k) For fiscal years 2012 and 2013 only, after the
22submission of all payments for eligible employees from personal
23services line items paid from the General Revenue Fund in the
24fiscal year have been made, the Comptroller shall provide to
25the System a certification of the sum of all expenditures in
26the fiscal year for personal services. Upon receipt of the

 

 

09800SB0001sam001- 98 -LRB098 05457 JDS 42954 a

1certification, the System shall determine the amount due to the
2System based on the full rate certified by the Board under
3Section 14-135.08 for the fiscal year in order to meet the
4State's obligation under this Section. The System shall compare
5this amount due to the amount received by the System for the
6fiscal year. If the amount due is more than the amount
7received, the difference shall be termed the "Prior Fiscal Year
8Shortfall" for purposes of this Section, and the Prior Fiscal
9Year Shortfall shall be satisfied under Section 1.2 of the
10State Pension Funds Continuing Appropriation Act. If the amount
11due is less than the amount received, the difference shall be
12termed the "Prior Fiscal Year Overpayment" for purposes of this
13Section, and the Prior Fiscal Year Overpayment shall be repaid
14by the System to the General Revenue Fund as soon as
15practicable after the certification.
16(Source: P.A. 96-43, eff. 7-15-09; 96-45, eff. 7-15-09;
1796-1000, eff. 7-2-10; 96-1497, eff. 1-14-11; 96-1511, eff.
181-27-11; 96-1554, eff. 3-18-11; 97-72, eff. 7-1-11; 97-732,
19eff. 6-30-12.)
 
20    (40 ILCS 5/14-132)  (from Ch. 108 1/2, par. 14-132)
21    Sec. 14-132. Obligations of State; funding guarantee.
22    (a) The payment of the required department contributions,
23all allowances, annuities, benefits granted under this
24Article, and all expenses of administration of the system are
25obligations of the State of Illinois to the extent specified in

 

 

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

 

 

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

 

 

09800SB0001sam001- 101 -LRB098 05457 JDS 42954 a

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

 

 

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1under this Article, each Tier I member shall also make the
2following contributions for retirement annuity from each
3payment of compensation:
4        (1) beginning July 1, 2013 and through June 30, 2014,
5    1% of compensation; and
6        (2) beginning on July 1, 2014, 2% of compensation.
7    (b) Contributions shall be in the form of a deduction from
8compensation and shall be made notwithstanding that the
9compensation paid in cash to the employee shall be reduced
10thereby below the minimum prescribed by law or regulation. Each
11member is deemed to consent and agree to the deductions from
12compensation provided for in this Article, and shall receipt in
13full for salary or compensation.
14(Source: P.A. 92-14, eff. 6-28-01.)
 
15    (40 ILCS 5/14-135.08)  (from Ch. 108 1/2, par. 14-135.08)
16    Sec. 14-135.08. To certify required State contributions.
17    (a) To certify to the Governor and to each department, on
18or before November 15 of each year through until November 15,
192011, the required rate for State contributions to the System
20for the next State fiscal year, as determined under subsection
21(b) of Section 14-131. The certification to the Governor under
22this subsection (a) shall include a copy of the actuarial
23recommendations upon which the rate is based and shall
24specifically identify the System's projected State normal cost
25for that fiscal year.

 

 

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

 

 

09800SB0001sam001- 105 -LRB098 05457 JDS 42954 a

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

 

 

09800SB0001sam001- 106 -LRB098 05457 JDS 42954 a

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 Financial and Professional Regulation. A new
16benefit increase created by a Public Act that does not include
17the additional funding required under this subsection is null
18and void. If the Public Pension Division determines that the
19additional funding provided for a new benefit increase under
20this subsection is or has become inadequate, it may so certify
21to the Governor and the State Comptroller and, in the absence
22of corrective action by the General Assembly, the new benefit
23increase shall expire at the end of the fiscal year in which
24the 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 5/15-106)  (from Ch. 108 1/2, par. 15-106)
17    Sec. 15-106. Employer. "Employer": The University of
18Illinois, Southern Illinois University, Chicago State
19University, Eastern Illinois University, Governors State
20University, Illinois State University, Northeastern Illinois
21University, Northern Illinois University, Western Illinois
22University, the State Board of Higher Education, the Illinois
23Mathematics and Science Academy, the University Civil Service
24Merit Board, the Board of Trustees of the State Universities
25Retirement System, the Illinois Community College Board,

 

 

09800SB0001sam001- 108 -LRB098 05457 JDS 42954 a

1community college boards, any association of community college
2boards organized under Section 3-55 of the Public Community
3College Act, the Board of Examiners established under the
4Illinois Public Accounting Act, and, only during the period for
5which employer contributions required under Section 15-155 are
6paid, the following organizations: the alumni associations,
7the foundations and the athletic associations which are
8affiliated with the universities and colleges included in this
9Section as employers. An individual that begins employment
10after the effective date of this amendatory Act of the 98th
11General Assembly with an entity not defined as an employer in
12this Section shall not be deemed an employee for the purposes
13of this Article with respect to that employment and shall not
14be eligible to participate in the System with respect to that
15employment; provided, however, that those individuals who are
16employed by such an employer and already participants in the
17System on the effective date of this amendatory Act of the 98th
18General Assembly shall be entitled to remain participants in
19the System for the duration of that employment and continue to
20earn service credit.
21    Notwithstanding any provision of law to the contrary, an
22individual who begins employment with any of the following
23employers on or after the effective date of this amendatory Act
24of the 98th General Assembly shall not be deemed an employee
25and shall not be eligible to participate in the System with
26respect to that employment: any association of community

 

 

09800SB0001sam001- 109 -LRB098 05457 JDS 42954 a

1college boards organized under Section 3-55 of the Public
2Community College Act, the Association of Illinois
3Middle-Grade Schools, the Illinois Association of School
4Administrators, the Illinois Association for Supervision and
5Curriculum Development, the Illinois Principals Association,
6the Illinois Association of School Business Officials, or the
7Illinois Special Olympics; provided, however, that those
8individuals who are employed by the above listed employers and
9already participants in the System on the effective date of
10this amendatory Act of the 98th General Assembly shall be
11entitled to remain participants in the System for the duration
12of that employment and continue to earn service credit.
13    A department as defined in Section 14-103.04 is an employer
14for any person appointed by the Governor under the Civil
15Administrative Code of Illinois who is a participating employee
16as defined in Section 15-109. The Department of Central
17Management Services is an employer with respect to persons
18employed by the State Board of Higher Education in positions
19with the Illinois Century Network as of June 30, 2004 who
20remain continuously employed after that date by the Department
21of Central Management Services in positions with the Illinois
22Century Network, the Bureau of Communication and Computer
23Services, or, if applicable, any successor bureau.
24    The cities of Champaign and Urbana shall be considered
25employers, but only during the period for which contributions
26are required to be made under subsection (b-1) of Section

 

 

09800SB0001sam001- 110 -LRB098 05457 JDS 42954 a

115-155 and only with respect to individuals described in
2subsection (h) of Section 15-107.
3(Source: P.A. 95-369, eff. 8-23-07; 95-728, eff. 7-1-08 - See
4Sec. 999.)
 
5    (40 ILCS 5/15-107)  (from Ch. 108 1/2, par. 15-107)
6    Sec. 15-107. Employee.
7    (a) "Employee" means any member of the educational,
8administrative, secretarial, clerical, mechanical, labor or
9other staff of an employer whose employment is permanent and
10continuous or who is employed in a position in which services
11are expected to be rendered on a continuous basis for at least
124 months or one academic term, whichever is less, who (A)
13receives payment for personal services on a warrant issued
14pursuant to a payroll voucher certified by an employer and
15drawn by the State Comptroller upon the State Treasurer or by
16an employer upon trust, federal or other funds, or (B) is on a
17leave of absence without pay. Employment which is irregular,
18intermittent or temporary shall not be considered continuous
19for purposes of this paragraph.
20    However, a person is not an "employee" if he or she:
21        (1) is a student enrolled in and regularly attending
22    classes in a college or university which is an employer,
23    and is employed on a temporary basis at less than full
24    time;
25        (2) is currently receiving a retirement annuity or a

 

 

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1    disability retirement annuity under Section 15-153.2 from
2    this System;
3        (3) is on a military leave of absence;
4        (4) is eligible to participate in the Federal Civil
5    Service Retirement System and is currently making
6    contributions to that system based upon earnings paid by an
7    employer;
8        (5) is on leave of absence without pay for more than 60
9    days immediately following termination of disability
10    benefits under this Article;
11        (6) is hired after June 30, 1979 as a public service
12    employment program participant under the Federal
13    Comprehensive Employment and Training Act and receives
14    earnings in whole or in part from funds provided under that
15    Act; or
16        (7) is employed on or after July 1, 1991 to perform
17    services that are excluded by subdivision (a)(7)(f) or
18    (a)(19) of Section 210 of the federal Social Security Act
19    from the definition of employment given in that Section (42
20    U.S.C. 410).
21    (b) Any employer may, by filing a written notice with the
22board, exclude from the definition of "employee" all persons
23employed pursuant to a federally funded contract entered into
24after July 1, 1982 with a federal military department in a
25program providing training in military courses to federal
26military personnel on a military site owned by the United

 

 

09800SB0001sam001- 112 -LRB098 05457 JDS 42954 a

1States Government, if this exclusion is not prohibited by the
2federally funded contract or federal laws or rules governing
3the administration of the contract.
4    (c) Any person appointed by the Governor under the Civil
5Administrative Code of the State is an employee, if he or she
6is a participant in this system on the effective date of the
7appointment.
8    (d) A participant on lay-off status under civil service
9rules is considered an employee for not more than 120 days from
10the date of the lay-off.
11    (e) A participant is considered an employee during (1) the
12first 60 days of disability leave, (2) the period, not to
13exceed one year, in which his or her eligibility for disability
14benefits is being considered by the board or reviewed by the
15courts, and (3) the period he or she receives disability
16benefits under the provisions of Section 15-152, workers'
17compensation or occupational disease benefits, or disability
18income under an insurance contract financed wholly or partially
19by the employer.
20    (f) Absences without pay, other than formal leaves of
21absence, of less than 30 calendar days, are not considered as
22an interruption of a person's status as an employee. If such
23absences during any period of 12 months exceed 30 work days,
24the employee status of the person is considered as interrupted
25as of the 31st work day.
26    (g) A staff member whose employment contract requires

 

 

09800SB0001sam001- 113 -LRB098 05457 JDS 42954 a

1services during an academic term is to be considered an
2employee during the summer and other vacation periods, unless
3he or she declines an employment contract for the succeeding
4academic term or his or her employment status is otherwise
5terminated, and he or she receives no earnings during these
6periods.
7    (h) An individual who was a participating employee employed
8in the fire department of the University of Illinois's
9Champaign-Urbana campus immediately prior to the elimination
10of that fire department and who immediately after the
11elimination of that fire department became employed by the fire
12department of the City of Urbana or the City of Champaign shall
13continue to be considered as an employee for purposes of this
14Article for so long as the individual remains employed as a
15firefighter by the City of Urbana or the City of Champaign. The
16individual shall cease to be considered an employee under this
17subsection (h) upon the first termination of the individual's
18employment as a firefighter by the City of Urbana or the City
19of Champaign.
20    (i) An individual who is employed on a full-time basis as
21an officer or employee of a statewide teacher organization that
22serves System participants or an officer of a national teacher
23organization that serves System participants may participate
24in the System and shall be deemed an employee, provided that
25(1) the individual has previously earned creditable service
26under this Article, (2) the individual files with the System an

 

 

09800SB0001sam001- 114 -LRB098 05457 JDS 42954 a

1irrevocable election to become a participant before the
2effective date of this amendatory Act of the 97th General
3Assembly, (3) the individual does not receive credit for that
4employment under any other Article of this Code, and (4) the
5individual first became a full-time employee of the teacher
6organization and becomes a participant before the effective
7date of this amendatory Act of the 97th General Assembly. An
8employee under this subsection (i) is responsible for paying to
9the System both (A) employee contributions based on the actual
10compensation received for service with the teacher
11organization and (B) employer contributions equal to the normal
12costs (as defined in Section 15-155) resulting from that
13service; all or any part of these contributions may be paid on
14the employee's behalf or picked up for tax purposes (if
15authorized under federal law) by the teacher organization.
16    A person who is an employee as defined in this subsection
17(i) may establish service credit for similar employment prior
18to becoming an employee under this subsection by paying to the
19System for that employment the contributions specified in this
20subsection, plus interest at the effective rate from the date
21of service to the date of payment. However, credit shall not be
22granted under this subsection for any such prior employment for
23which the applicant received credit under any other provision
24of this Code, or during which the applicant was on a leave of
25absence under Section 15-113.2.
26    (j) A person employed by the State Board of Higher

 

 

09800SB0001sam001- 115 -LRB098 05457 JDS 42954 a

1Education in a position with the Illinois Century Network as of
2June 30, 2004 shall be considered to be an employee for so long
3as he or she remains continuously employed after that date by
4the Department of Central Management Services in a position
5with the Illinois Century Network, the Bureau of Communication
6and Computer Services, or, if applicable, any successor bureau
7and meets the requirements of subsection (a).
8    (k) In the case of doubt as to whether any person is an
9employee within the meaning of this Section, the decision of
10the Board shall be final.
11(Source: P.A. 97-651, eff. 1-5-12.)
 
12    (40 ILCS 5/15-107.1 new)
13    Sec. 15-107.1. Tier I participant. "Tier I participant": A
14participant under this Article, other than a participant in the
15self-managed plan under Section 15-158.2, who first became a
16member or participant before January 1, 2011 under any
17reciprocal retirement system or pension fund established under
18this Code other than a retirement system or pension fund
19established under Article 2, 3, 4, 5, 6, or 18 of this Code.
 
20    (40 ILCS 5/15-107.2 new)
21    Sec. 15-107.2. Tier I retiree. "Tier I retiree": A former
22Tier I participant who is receiving a retirement annuity.
23    A person does not become a Tier I retiree by virtue of
24receiving a reversionary, survivors, beneficiary, or

 

 

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1disability annuity.
 
2    (40 ILCS 5/15-111)  (from Ch. 108 1/2, par. 15-111)
3    Sec. 15-111. Earnings. "Earnings": An amount paid for
4personal services equal to the sum of the basic compensation
5plus extra compensation for summer teaching, overtime or other
6extra service. For periods for which an employee receives
7service credit under subsection (c) of Section 15-113.1 or
8Section 15-113.2, earnings are equal to the basic compensation
9on which contributions are paid by the employee during such
10periods. Compensation for employment which is irregular,
11intermittent and temporary shall not be considered earnings,
12unless the participant is also receiving earnings from the
13employer as an employee under Section 15-107.
14    With respect to transition pay paid by the University of
15Illinois to a person who was a participating employee employed
16in the fire department of the University of Illinois's
17Champaign-Urbana campus immediately prior to the elimination
18of that fire department:
19        (1) "Earnings" includes transition pay paid to the
20    employee on or after the effective date of this amendatory
21    Act of the 91st General Assembly.
22        (2) "Earnings" includes transition pay paid to the
23    employee before the effective date of this amendatory Act
24    of the 91st General Assembly only if (i) employee
25    contributions under Section 15-157 have been withheld from

 

 

09800SB0001sam001- 117 -LRB098 05457 JDS 42954 a

1    that transition pay or (ii) the employee pays to the System
2    before January 1, 2001 an amount representing employee
3    contributions under Section 15-157 on that transition pay.
4    Employee contributions under item (ii) may be paid in a
5    lump sum, by withholding from additional transition pay
6    accruing before January 1, 2001, or in any other manner
7    approved by the System. Upon payment of the employee
8    contributions on transition pay, the corresponding
9    employer contributions become an obligation of the State.
10    (f) Notwithstanding any other provision of this Code, the
11earnings of a Tier I participant for the purposes of this Code
12shall not exceed, for periods of service on or after the
13effective date of this amendatory Act of the 98th General
14Assembly, the greater of (i) the annual contribution and
15benefit base established for the applicable year by the
16Commissioner of Social Security under the federal Social
17Security Act or (ii) the annual earnings of the participant
18during the 365 days immediately preceding that effective date;
19except that this limitation does not apply to a participant's
20earnings that are determined under an employment contract or
21collective bargaining agreement that is in effect on the
22effective date of this amendatory Act of the 98th General
23Assembly and has not been amended or renewed after that date.
24(Source: P.A. 91-887, eff. 7-6-00.)
 
25    (40 ILCS 5/15-113.2)  (from Ch. 108 1/2, par. 15-113.2)

 

 

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1    Sec. 15-113.2. Service for leaves of absence. "Service for
2leaves of absence" includes those periods of leaves of absence
3at less than 50% pay, except military leave and periods of
4disability leave in excess of 60 days, for which the employee
5pays the contributions required under Section 15-157 in
6accordance with rules prescribed by the board based upon the
7employee's basic compensation on the date the leave begins, or
8in the case of leave for service with a teacher organization,
9based upon the actual compensation received by the employee for
10such service after January 26, 1988, if the employee so elects
11within 30 days of that date or the date the leave for service
12with a teacher organization begins, whichever is later;
13provided that the employee (1) returns to employment covered by
14this system at the expiration of the leave, or within 30 days
15after the termination of a disability which occurs during the
16leave and continues this employment at a percentage of time
17equal to or greater than the percentage of time immediately
18preceding the leave of absence for at least 8 consecutive
19months or a period equal to the period of the leave, whichever
20is less, or (2) is precluded from meeting the foregoing
21conditions because of disability or death. If service credit is
22denied because the employee fails to meet these conditions, the
23contributions covering the leave of absence shall be refunded
24without interest. The return to employment condition does not
25apply if the leave of absence is for service with a teacher
26organization.

 

 

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1    Service credit provided under this Section shall not exceed
23 years in any period of 10 years, unless the employee is on
3special leave granted by the employer for service with a
4teacher organization. Commencing with the fourth year in any
5period of 10 years, a participant on such special leave is also
6required to pay employer contributions equal to the normal cost
7as defined in Section 15-155, based upon the employee's basic
8compensation on the date the leave begins, or based upon the
9actual compensation received by the employee for service with a
10teacher organization if the employee has so elected.
11    Notwithstanding any other provision of this Article, a
12participant shall not be eligible to make contributions or
13receive service credit for a leave of absence for service with
14a teacher organization if that leave of absence for service
15with a teacher organization begins on or after the effective
16date of this amendatory Act of the 98th General Assembly.
17(Source: P.A. 90-65, eff. 7-7-97; 90-511, eff. 8-22-97.)
 
18    (40 ILCS 5/15-135)  (from Ch. 108 1/2, par. 15-135)
19    Sec. 15-135. Retirement annuities - Conditions.
20    (a) A participant who retires in one of the following
21specified years with the specified amount of service is
22entitled to a retirement annuity at any age under the
23retirement program applicable to the participant:
24        35 years if retirement is in 1997 or before;
25        34 years if retirement is in 1998;

 

 

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1        33 years if retirement is in 1999;
2        32 years if retirement is in 2000;
3        31 years if retirement is in 2001;
4        30 years if retirement is in 2002 or later.
5    A participant with 8 or more years of service after
6September 1, 1941, is entitled to a retirement annuity on or
7after attainment of age 55.
8    A participant with at least 5 but less than 8 years of
9service after September 1, 1941, is entitled to a retirement
10annuity on or after attainment of age 62.
11    A participant who has at least 25 years of service in this
12system as a police officer or firefighter is entitled to a
13retirement annuity on or after the attainment of age 50, if
14Rule 4 of Section 15-136 is applicable to the participant.
15    (a-5) Notwithstanding subsection (a) of this Section, for a
16Tier I participant who begins receiving a retirement annuity
17under this Article after July 1, 2013:
18        (1) If the Tier I participant is at least 45 years old
19    on the effective date of this amendatory Act of the 98th
20    General Assembly, then the reference to retirement with 30
21    years of service as well as the references to age 50, 55,
22    and 62 in subsection (a) of this Section remain unchanged.
23        (2) If the Tier I participant is at least 40 but less
24    than 45 years old on the effective date of this amendatory
25    Act of the 98th General Assembly, then the reference to
26    retirement with 30 years of service as well as the

 

 

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1    references to age 50, 55, and 62 in subsection (a) of this
2    Section shall be increased by one year.
3        (3) If the Tier I participant is at least 35 but less
4    than 40 years old on the effective date of this amendatory
5    Act of the 98th General Assembly, then the reference to
6    retirement with 30 years of service as well as the
7    references to age 50, 55, and 62 in subsection (a) of this
8    Section shall be increased by 3 years.
9        (4) If the Tier I participant is less than 35 years old
10    on the effective date of this amendatory Act of the 98th
11    General Assembly, then the reference to retirement with 30
12    years of service as well as the references to age 50, 55,
13    and 62 in subsection (a) of this Section shall be increased
14    by 5 years.
15    Notwithstanding Section 1-103.1, this subsection (a-5)
16applies without regard to whether or not the Tier I participant
17is in active service under this Article on or after the
18effective date of this amendatory Act of the 98th General
19Assembly.
20    (b) The annuity payment period shall begin on the date
21specified by the participant or the recipient of a disability
22retirement annuity submitting a written application, which
23date shall not be prior to termination of employment or more
24than one year before the application is received by the board;
25however, if the participant is not an employee of an employer
26participating in this System or in a participating system as

 

 

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1defined in Article 20 of this Code on April 1 of the calendar
2year next following the calendar year in which the participant
3attains age 70 1/2, the annuity payment period shall begin on
4that date regardless of whether an application has been filed.
5    (c) An annuity is not payable if the amount provided under
6Section 15-136 is less than $10 per month.
7(Source: P.A. 97-933, eff. 8-10-12; 97-968, eff. 8-16-12.)
 
8    (40 ILCS 5/15-136)  (from Ch. 108 1/2, par. 15-136)
9    Sec. 15-136. Retirement annuities - Amount. The provisions
10of this Section 15-136 apply only to those participants who are
11participating in the traditional benefit package or the
12portable benefit package and do not apply to participants who
13are participating in the self-managed plan.
14    (a) The amount of a participant's retirement annuity,
15expressed in the form of a single-life annuity, shall be
16determined by whichever of the following rules is applicable
17and provides the largest annuity:
18    Rule 1: The retirement annuity shall be 1.67% of final rate
19of earnings for each of the first 10 years of service, 1.90%
20for each of the next 10 years of service, 2.10% for each year
21of service in excess of 20 but not exceeding 30, and 2.30% for
22each year in excess of 30; or for persons who retire on or
23after January 1, 1998, 2.2% of the final rate of earnings for
24each year of service.
25    Rule 2: The retirement annuity shall be the sum of the

 

 

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1following, determined from amounts credited to the participant
2in accordance with the actuarial tables and the effective rate
3of interest in effect at the time the retirement annuity
4begins:
5        (i) the normal annuity which can be provided on an
6    actuarially equivalent basis, by the accumulated normal
7    contributions as of the date the annuity begins;
8        (ii) an annuity from employer contributions of an
9    amount equal to that which can be provided on an
10    actuarially equivalent basis from the accumulated normal
11    contributions made by the participant under Section
12    15-113.6 and Section 15-113.7 plus 1.4 times all other
13    accumulated normal contributions made by the participant;
14    and
15        (iii) the annuity that can be provided on an
16    actuarially equivalent basis from the entire contribution
17    made by the participant under Section 15-113.3.
18    For the purpose of calculating an annuity under this Rule
192, the contribution required under subsection (c-5) of Section
2015-157 shall not be considered when determining the
21participant's accumulated normal contributions under clause
22(i) or the employer contribution under clause (ii).
23    With respect to a police officer or firefighter who retires
24on or after August 14, 1998, the accumulated normal
25contributions taken into account under clauses (i) and (ii) of
26this Rule 2 shall include the additional normal contributions

 

 

09800SB0001sam001- 124 -LRB098 05457 JDS 42954 a

1made by the police officer or firefighter under Section
215-157(a).
3    The amount of a retirement annuity calculated under this
4Rule 2 shall be computed solely on the basis of the
5participant's accumulated normal contributions, as specified
6in this Rule and defined in Section 15-116. Neither an employee
7or employer contribution for early retirement under Section
815-136.2 nor any other employer contribution shall be used in
9the calculation of the amount of a retirement annuity under
10this Rule 2.
11    This amendatory Act of the 91st General Assembly is a
12clarification of existing law and applies to every participant
13and annuitant without regard to whether status as an employee
14terminates before the effective date of this amendatory Act.
15    This Rule 2 does not apply to a person who first becomes an
16employee under this Article on or after July 1, 2005.
17    Rule 3: The retirement annuity of a participant who is
18employed at least one-half time during the period on which his
19or her final rate of earnings is based, shall be equal to the
20participant's years of service not to exceed 30, multiplied by
21(1) $96 if the participant's final rate of earnings is less
22than $3,500, (2) $108 if the final rate of earnings is at least
23$3,500 but less than $4,500, (3) $120 if the final rate of
24earnings is at least $4,500 but less than $5,500, (4) $132 if
25the final rate of earnings is at least $5,500 but less than
26$6,500, (5) $144 if the final rate of earnings is at least

 

 

09800SB0001sam001- 125 -LRB098 05457 JDS 42954 a

1$6,500 but less than $7,500, (6) $156 if the final rate of
2earnings is at least $7,500 but less than $8,500, (7) $168 if
3the final rate of earnings is at least $8,500 but less than
4$9,500, and (8) $180 if the final rate of earnings is $9,500 or
5more, except that the annuity for those persons having made an
6election under Section 15-154(a-1) shall be calculated and
7payable under the portable retirement benefit program pursuant
8to the provisions of Section 15-136.4.
9    Rule 4: A participant who is at least age 50 and has 25 or
10more years of service as a police officer or firefighter, and a
11participant who is age 55 or over and has at least 20 but less
12than 25 years of service as a police officer or firefighter,
13shall be entitled to a retirement annuity of 2 1/4% of the
14final rate of earnings for each of the first 10 years of
15service as a police officer or firefighter, 2 1/2% for each of
16the next 10 years of service as a police officer or
17firefighter, and 2 3/4% for each year of service as a police
18officer or firefighter in excess of 20. The retirement annuity
19for all other service shall be computed under Rule 1.
20    For purposes of this Rule 4, a participant's service as a
21firefighter shall also include the following:
22        (i) service that is performed while the person is an
23    employee under subsection (h) of Section 15-107; and
24        (ii) in the case of an individual who was a
25    participating employee employed in the fire department of
26    the University of Illinois's Champaign-Urbana campus

 

 

09800SB0001sam001- 126 -LRB098 05457 JDS 42954 a

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

 

 

09800SB0001sam001- 127 -LRB098 05457 JDS 42954 a

1    and
2        (iii) an annuity which can be provided on an
3    actuarially equivalent basis from the employee
4    contribution for early retirement under Section 15-136.2,
5    and an annuity from employer contributions of an amount
6    equal to that which can be provided on an actuarially
7    equivalent basis from the employee contribution for early
8    retirement under Section 15-136.2.
9    In no event shall a retirement annuity under this Rule 5 be
10lower than the amount obtained by adding (1) the monthly amount
11obtained by dividing the combined employee and employer
12contributions made under Section 15-136.2 by the System's
13annuity factor for the age of the participant at the beginning
14of the annuity payment period and (2) the amount equal to the
15participant's annuity if calculated under Rule 1, reduced under
16Section 15-136(b) as if no contributions had been made under
17Section 15-136.2.
18    With respect to a participant who is qualified for a
19retirement annuity under this Rule 5 whose retirement annuity
20began before the effective date of this amendatory Act of the
2191st General Assembly, and for whom an employee contribution
22was made under Section 15-136.2, the System shall recalculate
23the retirement annuity under this Rule 5 and shall pay any
24additional amounts due in the manner provided in Section
2515-186.1 for benefits mistakenly set too low.
26    The amount of a retirement annuity calculated under this

 

 

09800SB0001sam001- 128 -LRB098 05457 JDS 42954 a

1Rule 5 shall be computed solely on the basis of those
2contributions specifically set forth in this Rule 5. Except as
3provided in clause (iii) of this Rule 5, neither an employee
4nor employer contribution for early retirement under Section
515-136.2, nor any other employer contribution, shall be used in
6the calculation of the amount of a retirement annuity under
7this Rule 5.
8    The General Assembly has adopted the changes set forth in
9Section 25 of this amendatory Act of the 91st General Assembly
10in recognition that the decision of the Appellate Court for the
11Fourth District in Mattis v. State Universities Retirement
12System et al. might be deemed to give some right to the
13plaintiff in that case. The changes made by Section 25 of this
14amendatory Act of the 91st General Assembly are a legislative
15implementation of the decision of the Appellate Court for the
16Fourth District in Mattis v. State Universities Retirement
17System et al. with respect to that plaintiff.
18    The changes made by Section 25 of this amendatory Act of
19the 91st General Assembly apply without regard to whether the
20person is in service as an employee on or after its effective
21date.
22    (b) The retirement annuity provided under Rules 1 and 3
23above shall be reduced by 1/2 of 1% for each month the
24participant is under age 60 at the time of retirement. However,
25this reduction shall not apply in the following cases:
26        (1) For a disabled participant whose disability

 

 

09800SB0001sam001- 129 -LRB098 05457 JDS 42954 a

1    benefits have been discontinued because he or she has
2    exhausted eligibility for disability benefits under clause
3    (6) of Section 15-152;
4        (2) For a participant who has at least the number of
5    years of service required to retire at any age under
6    subsection (a) of Section 15-135; or
7        (3) For that portion of a retirement annuity which has
8    been provided on account of service of the participant
9    during periods when he or she performed the duties of a
10    police officer or firefighter, if these duties were
11    performed for at least 5 years immediately preceding the
12    date the retirement annuity is to begin.
13    (c) The maximum retirement annuity provided under Rules 1,
142, 4, and 5 shall be the lesser of (1) the annual limit of
15benefits as specified in Section 415 of the Internal Revenue
16Code of 1986, as such Section may be amended from time to time
17and as such benefit limits shall be adjusted by the
18Commissioner of Internal Revenue, and (2) 80% of final rate of
19earnings.
20    (d) Subject to the provisions of subsections (d-1), (d-2),
21and (d-3) of this Section, an An annuitant whose status as an
22employee terminates after August 14, 1969 shall receive
23automatic increases in his or her retirement annuity as
24follows:
25    Effective January 1 immediately following the date the
26retirement annuity begins, the annuitant shall receive an

 

 

09800SB0001sam001- 130 -LRB098 05457 JDS 42954 a

1increase in his or her monthly retirement annuity of 0.125% of
2the monthly retirement annuity provided under Rule 1, Rule 2,
3Rule 3, Rule 4, or Rule 5, contained in this Section,
4multiplied by the number of full months which elapsed from the
5date the retirement annuity payments began to January 1, 1972,
6plus 0.1667% of such annuity, multiplied by the number of full
7months which elapsed from January 1, 1972, or the date the
8retirement annuity payments began, whichever is later, to
9January 1, 1978, plus 0.25% of such annuity multiplied by the
10number of full months which elapsed from January 1, 1978, or
11the date the retirement annuity payments began, whichever is
12later, to the effective date of the increase.
13    The annuitant shall receive an increase in his or her
14monthly retirement annuity on each January 1 thereafter during
15the annuitant's life of 3% of the monthly annuity provided
16under Rule 1, Rule 2, Rule 3, Rule 4, or Rule 5 contained in
17this Section. The change made under this subsection by P.A.
1881-970 is effective January 1, 1980 and applies to each
19annuitant whose status as an employee terminates before or
20after that date.
21    Beginning January 1, 1990 and except as provided in
22subsections (d-1), (d-2), and (d-3) of this Section, all
23automatic annual increases payable under this Section shall be
24calculated as a percentage of the total annuity payable at the
25time of the increase, including all increases previously
26granted under this Article.

 

 

09800SB0001sam001- 131 -LRB098 05457 JDS 42954 a

1    The change made in this subsection by P.A. 85-1008 is
2effective January 26, 1988, and is applicable without regard to
3whether status as an employee terminated before that date.
4    (d-1) Notwithstanding any other provision of this Article,
5except subsection (d-3) of this Section, for a Tier I retiree,
6the amount of each automatic annual increase in retirement
7annuity occurring on or after the effective date of this
8amendatory Act of the 98th General Assembly shall be the lesser
9of $750 or 3% of the total annuity payable at the time of the
10increase, including previous increases granted.
11    (d-2) Notwithstanding any other provision of this Article,
12except subsection (d-3) of this Section, for a Tier I retiree,
13the monthly retirement annuity shall first be subject to annual
14increases on the January 1 occurring on or next after the
15attainment of age 67 or the January 1 occurring on or next
16after the fifth anniversary of the annuity start date,
17whichever occurs earlier. If on the effective date of this
18amendatory Act of the 98th General Assembly a Tier I retiree
19has already received an annual increase under this Section but
20does not yet meet the new eligibility requirements of this
21subsection, the annual increases already received shall
22continue in force, but no additional annual increase shall be
23granted until the Tier I retiree meets the new eligibility
24requirements.
25    (d-3) Notwithstanding any other provision of this Article,
26a Tier I retiree is ineligible to receive an automatic annual

 

 

09800SB0001sam001- 132 -LRB098 05457 JDS 42954 a

1increase in retirement annuity pursuant to this Section, unless
2he or she has 20 years of creditable service under this
3Article. If on the effective date of this amendatory Act of the
498th General Assembly a Tier I retiree has already received an
5annual increase under this Section but does not yet meet the
6new eligibility requirements of this subsection, the annual
7increases already received shall continue in force, but no
8additional annual increase shall be granted until the Tier I
9retiree meets the new eligibility requirements.
10    (d-4) Notwithstanding Section 1-103.1, subsections (d-1)
11and (d-2) apply without regard to whether or not the Tier I
12retiree is in active service under this Article on or after the
13effective date of this amendatory Act of the 98th General
14Assembly.
15    (e) If, on January 1, 1987, or the date the retirement
16annuity payment period begins, whichever is later, the sum of
17the retirement annuity provided under Rule 1 or Rule 2 of this
18Section and the automatic annual increases provided under the
19preceding subsection or Section 15-136.1, amounts to less than
20the retirement annuity which would be provided by Rule 3, the
21retirement annuity shall be increased as of January 1, 1987, or
22the date the retirement annuity payment period begins,
23whichever is later, to the amount which would be provided by
24Rule 3 of this Section. Such increased amount shall be
25considered as the retirement annuity in determining benefits
26provided under other Sections of this Article. This paragraph

 

 

09800SB0001sam001- 133 -LRB098 05457 JDS 42954 a

1applies without regard to whether status as an employee
2terminated before the effective date of this amendatory Act of
31987, provided that the annuitant was employed at least
4one-half time during the period on which the final rate of
5earnings was based.
6    (f) A participant is entitled to such additional annuity as
7may be provided on an actuarially equivalent basis, by any
8accumulated additional contributions to his or her credit.
9However, the additional contributions made by the participant
10toward the automatic increases in annuity provided under this
11Section and the contributions made under subsection (c-5) of
12Section 15-157 by this amendatory Act of the 98th General
13Assembly shall not be taken into account in determining the
14amount of such additional annuity.
15    (g) If, (1) by law, a function of a governmental unit, as
16defined by Section 20-107 of this Code, is transferred in whole
17or in part to an employer, and (2) a participant transfers
18employment from such governmental unit to such employer within
196 months after the transfer of the function, and (3) the sum of
20(A) the annuity payable to the participant under Rule 1, 2, or
213 of this Section (B) all proportional annuities payable to the
22participant by all other retirement systems covered by Article
2320, and (C) the initial primary insurance amount to which the
24participant is entitled under the Social Security Act, is less
25than the retirement annuity which would have been payable if
26all of the participant's pension credits validated under

 

 

09800SB0001sam001- 134 -LRB098 05457 JDS 42954 a

1Section 20-109 had been validated under this system, a
2supplemental annuity equal to the difference in such amounts
3shall be payable to the participant.
4    (h) On January 1, 1981, an annuitant who was receiving a
5retirement annuity on or before January 1, 1971 shall have his
6or her retirement annuity then being paid increased $1 per
7month for each year of creditable service. On January 1, 1982,
8an annuitant whose retirement annuity began on or before
9January 1, 1977, shall have his or her retirement annuity then
10being paid increased $1 per month for each year of creditable
11service.
12    (i) On January 1, 1987, any annuitant whose retirement
13annuity began on or before January 1, 1977, shall have the
14monthly retirement annuity increased by an amount equal to 8
15per year of creditable service times the number of years that
16have elapsed since the annuity began.
17    (j) For participants to whom subsection (a-5) of Section
1815-135 applies, the references to age 50, 55, and 62 in this
19Section are increased as provided in subsection (a-5) of
20Section 15-135.
21(Source: P.A. 97-933, eff. 8-10-12; 97-968, eff. 8-16-12.)
 
22    (40 ILCS 5/15-155)  (from Ch. 108 1/2, par. 15-155)
23    Sec. 15-155. Employer contributions.
24    (a) The State of Illinois shall make contributions by
25appropriations of amounts which, together with the other

 

 

09800SB0001sam001- 135 -LRB098 05457 JDS 42954 a

1employer contributions from trust, federal, and other funds,
2employee contributions, income from investments, and other
3income of this System, will be sufficient to meet the cost of
4maintaining and administering the System on a 100% 90% funded
5basis in accordance with actuarial recommendations by the end
6of State fiscal year 2043.
7    The Board shall determine the amount of State contributions
8required for each fiscal year on the basis of the actuarial
9tables and other assumptions adopted by the Board and the
10recommendations of the actuary, using the formula in subsection
11(a-1).
12    (a-1) For State fiscal years 2014 through 2043, the minimum
13contribution to the System to be made by the State for each
14fiscal year shall be an amount determined by the System to be
15equal to the sum of (1) the State's portion of the projected
16normal cost for that fiscal year, plus (2) an amount sufficient
17to bring the total assets of the System up to 100% of the total
18actuarial liabilities of the System by the end of State fiscal
19year 2043. In making these determinations, the required State
20contribution shall be calculated each year as a level
21percentage of payroll over the years remaining to and including
22fiscal year 2043 and shall be determined under the projected
23unit credit actuarial cost method.
24    Beginning in State fiscal year 2044, the minimum State
25contribution for each fiscal year shall be the amount needed to
26maintain the total assets of the System at 100% of the total

 

 

09800SB0001sam001- 136 -LRB098 05457 JDS 42954 a

1actuarial liabilities of the System.
2    For State fiscal years 2012 and 2013 through 2045, the
3minimum contribution to the System to be made by the State for
4each fiscal year shall be an amount determined by the System to
5be sufficient to bring the total assets of the System up to 90%
6of the total actuarial liabilities of the System by the end of
7State fiscal year 2045. In making these determinations, the
8required State contribution shall be calculated each year as a
9level percentage of payroll over the years remaining to and
10including fiscal year 2045 and shall be determined under the
11projected unit credit actuarial cost method.
12    For State fiscal years 1996 through 2005, the State
13contribution to the System, as a percentage of the applicable
14employee payroll, shall be increased in equal annual increments
15so that by State fiscal year 2011, the State is contributing at
16the rate required under this Section.
17    Notwithstanding any other provision of this Article, the
18total required State contribution for State fiscal year 2006 is
19$166,641,900.
20    Notwithstanding any other provision of this Article, the
21total required State contribution for State fiscal year 2007 is
22$252,064,100.
23    For each of State fiscal years 2008 through 2009, the State
24contribution to the System, as a percentage of the applicable
25employee payroll, shall be increased in equal annual increments
26from the required State contribution for State fiscal year

 

 

09800SB0001sam001- 137 -LRB098 05457 JDS 42954 a

12007, so that by State fiscal year 2011, the State is
2contributing at the rate otherwise required under this Section.
3    Notwithstanding any other provision of this Article, the
4total required State contribution for State fiscal year 2010 is
5$702,514,000 and shall be made from the State Pensions Fund and
6proceeds of bonds sold in fiscal year 2010 pursuant to Section
77.2 of the General Obligation Bond Act, less (i) the pro rata
8share of bond sale expenses determined by the System's share of
9total bond proceeds, (ii) any amounts received from the General
10Revenue Fund in fiscal year 2010, (iii) any reduction in bond
11proceeds due to the issuance of discounted bonds, if
12applicable.
13    Notwithstanding any other provision of this Article, the
14total required State contribution for State fiscal year 2011 is
15the amount recertified by the System on or before April 1, 2011
16pursuant to Section 15-165 and shall be made from the State
17Pensions Fund and proceeds of bonds sold in fiscal year 2011
18pursuant to Section 7.2 of the General Obligation Bond Act,
19less (i) the pro rata share of bond sale expenses determined by
20the System's share of total bond proceeds, (ii) any amounts
21received from the General Revenue Fund in fiscal year 2011, and
22(iii) any reduction in bond proceeds due to the issuance of
23discounted bonds, if applicable.
24    Beginning in State fiscal year 2046, the minimum State
25contribution for each fiscal year shall be the amount needed to
26maintain the total assets of the System at 90% of the total

 

 

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1actuarial liabilities of the System.
2    Amounts received by the System pursuant to Section 25 of
3the Budget Stabilization Act or Section 8.12 of the State
4Finance Act in any fiscal year do not reduce and do not
5constitute payment of any portion of the minimum State
6contribution required under this Article in that fiscal year.
7Such amounts shall not reduce, and shall not be included in the
8calculation of, the required State contributions under this
9Article in any future year until the System has reached a
10funding ratio of at least 100% 90%. A reference in this Article
11to the "required State contribution" or any substantially
12similar term does not include or apply to any amounts payable
13to the System under Section 25 of the Budget Stabilization Act.
14    Notwithstanding any other provision of this Section, the
15required State contribution for State fiscal year 2005 and for
16fiscal year 2008 and each fiscal year thereafter through State
17fiscal year 2013, as calculated under this Section and
18certified under Section 15-165, shall not exceed an amount
19equal to (i) the amount of the required State contribution that
20would have been calculated under this Section for that fiscal
21year if the System had not received any payments under
22subsection (d) of Section 7.2 of the General Obligation Bond
23Act, minus (ii) the portion of the State's total debt service
24payments for that fiscal year on the bonds issued in fiscal
25year 2003 for the purposes of that Section 7.2, as determined
26and certified by the Comptroller, that is the same as the

 

 

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

 

 

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1Article.
2    (b-1) The City of Urbana and the City of Champaign shall
3each make employer contributions to this System for their
4respective firefighter employees who participate in this
5System pursuant to subsection (h) of Section 15-107. The rate
6of contributions to be made by those municipalities shall be
7determined annually by the Board on the basis of the actuarial
8assumptions adopted by the Board and the recommendations of the
9actuary, and shall be expressed as a percentage of salary for
10each such employee. The Board shall certify the rate to the
11affected municipalities as soon as may be practical. The
12employer contributions required under this subsection shall be
13remitted by the municipality to the System at the same time and
14in the same manner as employee contributions.
15    (c) Through State fiscal year 1995: The total employer
16contribution shall be apportioned among the various funds of
17the State and other employers, whether trust, federal, or other
18funds, in accordance with actuarial procedures approved by the
19Board. State of Illinois contributions for employers receiving
20State appropriations for personal services shall be payable
21from appropriations made to the employers or to the System. The
22contributions for Class I community colleges covering earnings
23other than those paid from trust and federal funds, shall be
24payable solely from appropriations to the Illinois Community
25College Board or the System for employer contributions.
26    (d) Beginning in State fiscal year 1996, the required State

 

 

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1contributions to the System shall be appropriated directly to
2the System and shall be payable through vouchers issued in
3accordance with subsection (c) of Section 15-165, except as
4provided in subsection (g).
5    (e) The State Comptroller shall draw warrants payable to
6the System upon proper certification by the System or by the
7employer in accordance with the appropriation laws and this
8Code.
9    (f) Normal costs under this Section means liability for
10pensions and other benefits which accrues to the System because
11of the credits earned for service rendered by the participants
12during the fiscal year and expenses of administering the
13System, but shall not include the principal of or any
14redemption premium or interest on any bonds issued by the Board
15or any expenses incurred or deposits required in connection
16therewith.
17    (g) If the amount of a participant's earnings for any
18academic year used to determine the final rate of earnings,
19determined on a full-time equivalent basis, exceeds the amount
20of his or her earnings with the same employer for the previous
21academic year, determined on a full-time equivalent basis, by
22more than 6%, the participant's employer shall pay to the
23System, in addition to all other payments required under this
24Section and in accordance with guidelines established by the
25System, the present value of the increase in benefits resulting
26from the portion of the increase in earnings that is in excess

 

 

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1of 6%. This present value shall be computed by the System on
2the basis of the actuarial assumptions and tables used in the
3most recent actuarial valuation of the System that is available
4at the time of the computation. The System may require the
5employer to provide any pertinent information or
6documentation.
7    Whenever it determines that a payment is or may be required
8under this subsection (g), the System shall calculate the
9amount of the payment and bill the employer for that amount.
10The bill shall specify the calculations used to determine the
11amount due. If the employer disputes the amount of the bill, it
12may, within 30 days after receipt of the bill, apply to the
13System in writing for a recalculation. The application must
14specify in detail the grounds of the dispute and, if the
15employer asserts that the calculation is subject to subsection
16(h) or (i) of this Section, must include an affidavit setting
17forth and attesting to all facts within the employer's
18knowledge that are pertinent to the applicability of subsection
19(h) or (i). Upon receiving a timely application for
20recalculation, the System shall review the application and, if
21appropriate, recalculate the amount due.
22    The employer contributions required under this subsection
23(g) (f) may be paid in the form of a lump sum within 90 days
24after receipt of the bill. If the employer contributions are
25not paid within 90 days after receipt of the bill, then
26interest will be charged at a rate equal to the System's annual

 

 

09800SB0001sam001- 143 -LRB098 05457 JDS 42954 a

1actuarially assumed rate of return on investment compounded
2annually from the 91st day after receipt of the bill. Payments
3must be concluded within 3 years after the employer's receipt
4of the bill.
5    (h) This subsection (h) applies only to payments made or
6salary increases given on or after June 1, 2005 but before July
71, 2011. The changes made by Public Act 94-1057 shall not
8require the System to refund any payments received before July
931, 2006 (the effective date of Public Act 94-1057).
10    When assessing payment for any amount due under subsection
11(g), the System shall exclude earnings increases paid to
12participants under contracts or collective bargaining
13agreements entered into, amended, or renewed before June 1,
142005.
15    When assessing payment for any amount due under subsection
16(g), the System shall exclude earnings increases paid to a
17participant at a time when the participant is 10 or more years
18from retirement eligibility under Section 15-135.
19    When assessing payment for any amount due under subsection
20(g), the System shall exclude earnings increases resulting from
21overload work, including a contract for summer teaching, or
22overtime when the employer has certified to the System, and the
23System has approved the certification, that: (i) in the case of
24overloads (A) the overload work is for the sole purpose of
25academic instruction in excess of the standard number of
26instruction hours for a full-time employee occurring during the

 

 

09800SB0001sam001- 144 -LRB098 05457 JDS 42954 a

1academic year that the overload is paid and (B) the earnings
2increases are equal to or less than the rate of pay for
3academic instruction computed using the participant's current
4salary rate and work schedule; and (ii) in the case of
5overtime, the overtime was necessary for the educational
6mission.
7    When assessing payment for any amount due under subsection
8(g), the System shall exclude any earnings increase resulting
9from (i) a promotion for which the employee moves from one
10classification to a higher classification under the State
11Universities Civil Service System, (ii) a promotion in academic
12rank for a tenured or tenure-track faculty position, or (iii) a
13promotion that the Illinois Community College Board has
14recommended in accordance with subsection (k) of this Section.
15These earnings increases shall be excluded only if the
16promotion is to a position that has existed and been filled by
17a member for no less than one complete academic year and the
18earnings increase as a result of the promotion is an increase
19that results in an amount no greater than the average salary
20paid for other similar positions.
21    (i) When assessing payment for any amount due under
22subsection (g), the System shall exclude any salary increase
23described in subsection (h) of this Section given on or after
24July 1, 2011 but before July 1, 2014 under a contract or
25collective bargaining agreement entered into, amended, or
26renewed on or after June 1, 2005 but before July 1, 2011.

 

 

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1Notwithstanding any other provision of this Section, any
2payments made or salary increases given after June 30, 2014
3shall be used in assessing payment for any amount due under
4subsection (g) of this Section.
5    (j) The System shall prepare a report and file copies of
6the report with the Governor and the General Assembly by
7January 1, 2007 that contains all of the following information:
8        (1) The number of recalculations required by the
9    changes made to this Section by Public Act 94-1057 for each
10    employer.
11        (2) The dollar amount by which each employer's
12    contribution to the System was changed due to
13    recalculations required by Public Act 94-1057.
14        (3) The total amount the System received from each
15    employer as a result of the changes made to this Section by
16    Public Act 94-4.
17        (4) The increase in the required State contribution
18    resulting from the changes made to this Section by Public
19    Act 94-1057.
20    (k) The Illinois Community College Board shall adopt rules
21for recommending lists of promotional positions submitted to
22the Board by community colleges and for reviewing the
23promotional lists on an annual basis. When recommending
24promotional lists, the Board shall consider the similarity of
25the positions submitted to those positions recognized for State
26universities by the State Universities Civil Service System.

 

 

09800SB0001sam001- 146 -LRB098 05457 JDS 42954 a

1The Illinois Community College Board shall file a copy of its
2findings with the System. The System shall consider the
3findings of the Illinois Community College Board when making
4determinations under this Section. The System shall not exclude
5any earnings increases resulting from a promotion when the
6promotion was not submitted by a community college. Nothing in
7this subsection (k) shall require any community college to
8submit any information to the Community College Board.
9    (l) For purposes of determining the required State
10contribution to the System, the value of the System's assets
11shall be equal to the actuarial value of the System's assets,
12which shall be calculated as follows:
13    As of June 30, 2008, the actuarial value of the System's
14assets shall be equal to the market value of the assets as of
15that date. In determining the actuarial value of the System's
16assets for fiscal years after June 30, 2008, any actuarial
17gains or losses from investment return incurred in a fiscal
18year shall be recognized in equal annual amounts over the
195-year period following that fiscal year.
20    (m) For purposes of determining the required State
21contribution to the system for a particular year, the actuarial
22value of assets shall be assumed to earn a rate of return equal
23to the system's actuarially assumed rate of return.
24(Source: P.A. 96-43, eff. 7-15-09; 96-1497, eff. 1-14-11;
2596-1511, eff. 1-27-11; 96-1554, eff. 3-18-11; 97-813, eff.
267-13-12; revised 10-17-12.)
 

 

 

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1    (40 ILCS 5/15-156)  (from Ch. 108 1/2, par. 15-156)
2    Sec. 15-156. Obligations of State; funding guarantees.
3    (a) The payment of (1) the required State contributions,
4(2) all benefits granted under this system and (3) all expenses
5in connection with the administration and operation thereof are
6obligations of the State of Illinois to the extent specified in
7this Article. The accumulated employee normal, additional and
8survivors insurance contributions credited to the accounts of
9active and inactive participants shall not be used to pay the
10State's share of the obligations.
11    (b) Beginning July 1, 2013, the State shall be
12contractually obligated to contribute to the System under
13Section 15-155 in each State fiscal year an amount not less
14than the sum of (i) the State's normal cost for that year and
15(ii) the portion of the unfunded accrued liability assigned to
16that year by law in accordance with a schedule that distributes
17payments equitably over a reasonable period of time and in
18accordance with accepted actuarial practices. The obligations
19created under this subsection (b) are contractual obligations
20protected and enforceable under Article I, Section 16 and
21Article XIII, Section 5 of the Illinois Constitution.
22    Notwithstanding any other provision of law, if the State
23fails to pay in a State fiscal year the amount guaranteed under
24this subsection, the System may bring a mandamus action in the
25Circuit Court of Sangamon or Champaign County to compel the

 

 

09800SB0001sam001- 148 -LRB098 05457 JDS 42954 a

1State to make that payment, irrespective of other remedies that
2may be available to the System. In ordering the State to make
3the required payment, the court may order a reasonable payment
4schedule to enable the State to make the required payment
5without significantly imperiling the public health, safety, or
6welfare.
7    Any payments required to be made by the State pursuant to
8this subsection (b) are expressly subordinated to the payment
9of the principal, interest, and premium, if any, on any bonded
10debt obligation of the State or any other State-created entity,
11either currently outstanding or to be issued, for which the
12source of repayment or security thereon is derived directly or
13indirectly from tax revenues collected by the State or any
14other State-created entity. Payments on such bonded
15obligations include any statutory fund transfers or other
16prefunding mechanisms or formulas set forth, now or hereafter,
17in State law or bond indentures, into debt service funds or
18accounts of the State related to such bonded obligations,
19consistent with the payment schedules associated with such
20obligations.
21(Source: P.A. 83-1440.)
 
22    (40 ILCS 5/15-157)  (from Ch. 108 1/2, par. 15-157)
23    Sec. 15-157. Employee Contributions.
24    (a) Each participating employee shall make contributions
25towards the retirement benefits payable under the retirement

 

 

09800SB0001sam001- 149 -LRB098 05457 JDS 42954 a

1program applicable to the employee from each payment of
2earnings applicable to employment under this system on and
3after the date of becoming a participant as follows: Prior to
4September 1, 1949, 3 1/2% of earnings; from September 1, 1949
5to August 31, 1955, 5%; from September 1, 1955 to August 31,
61969, 6%; from September 1, 1969, 6 1/2%. These contributions
7are to be considered as normal contributions for purposes of
8this Article.
9    Each participant who is a police officer or firefighter
10shall make normal contributions of 8% of each payment of
11earnings applicable to employment as a police officer or
12firefighter under this system on or after September 1, 1981,
13unless he or she files with the board within 60 days after the
14effective date of this amendatory Act of 1991 or 60 days after
15the board receives notice that he or she is employed as a
16police officer or firefighter, whichever is later, a written
17notice waiving the retirement formula provided by Rule 4 of
18Section 15-136. This waiver shall be irrevocable. If a
19participant had met the conditions set forth in Section
2015-132.1 prior to the effective date of this amendatory Act of
211991 but failed to make the additional normal contributions
22required by this paragraph, he or she may elect to pay the
23additional contributions plus compound interest at the
24effective rate. If such payment is received by the board, the
25service shall be considered as police officer service in
26calculating the retirement annuity under Rule 4 of Section

 

 

09800SB0001sam001- 150 -LRB098 05457 JDS 42954 a

115-136. While performing service described in clause (i) or
2(ii) of Rule 4 of Section 15-136, a participating employee
3shall be deemed to be employed as a firefighter for the purpose
4of determining the rate of employee contributions under this
5Section.
6    (b) Starting September 1, 1969, each participating
7employee shall make additional contributions of 1/2 of 1% of
8earnings to finance a portion of the cost of the annual
9increases in retirement annuity provided under Section 15-136,
10except that with respect to participants in the self-managed
11plan this additional contribution shall be used to finance the
12benefits obtained under that retirement program.
13    (c) In addition to the amounts described in subsections (a)
14and (b) of this Section, each participating employee shall make
15contributions of 1% of earnings applicable under this system on
16and after August 1, 1959. The contributions made under this
17subsection (c) shall be considered as survivor's insurance
18contributions for purposes of this Article if the employee is
19covered under the traditional benefit package, and such
20contributions shall be considered as additional contributions
21for purposes of this Article if the employee is participating
22in the self-managed plan or has elected to participate in the
23portable benefit package and has completed the applicable
24one-year waiting period. Contributions in excess of $80 during
25any fiscal year beginning before August 31, 1969 and in excess
26of $120 during any fiscal year thereafter until September 1,

 

 

09800SB0001sam001- 151 -LRB098 05457 JDS 42954 a

11971 shall be considered as additional contributions for
2purposes of this Article.
3    (c-5) In addition to the contributions otherwise required
4under this Article, each Tier I participant shall also make the
5following contributions toward the retirement benefits payable
6under the retirement program applicable to the employee from
7each payment of earnings applicable to employment under this
8system:
9        (1) beginning July 1, 2013 and through June 30, 2014,
10    1% of earnings; and
11        (2) beginning on July 1, 2014, 2% of earnings.
12    Except as otherwise specified, these contributions are to
13be considered as normal contributions for purposes of this
14Article.
15    (d) If the board by board rule so permits and subject to
16such conditions and limitations as may be specified in its
17rules, a participant may make other additional contributions of
18such percentage of earnings or amounts as the participant shall
19elect in a written notice thereof received by the board.
20    (e) That fraction of a participant's total accumulated
21normal contributions, the numerator of which is equal to the
22number of years of service in excess of that which is required
23to qualify for the maximum retirement annuity, and the
24denominator of which is equal to the total service of the
25participant, shall be considered as accumulated additional
26contributions. The determination of the applicable maximum

 

 

09800SB0001sam001- 152 -LRB098 05457 JDS 42954 a

1annuity and the adjustment in contributions required by this
2provision shall be made as of the date of the participant's
3retirement.
4    (f) Notwithstanding the foregoing, a participating
5employee shall not be required to make contributions under this
6Section after the date upon which continuance of such
7contributions would otherwise cause his or her retirement
8annuity to exceed the maximum retirement annuity as specified
9in clause (1) of subsection (c) of Section 15-136.
10    (g) A participating employee may make contributions for the
11purchase of service credit under this Article.
12(Source: P.A. 90-32, eff. 6-27-97; 90-65, eff. 7-7-97; 90-448,
13eff. 8-16-97; 90-511, eff. 8-22-97; 90-576, eff. 3-31-98;
1490-655, eff. 7-30-98; 90-766, eff. 8-14-98.)
 
15    (40 ILCS 5/15-165)   (from Ch. 108 1/2, par. 15-165)
16    Sec. 15-165. To certify amounts and submit vouchers.
17    (a) The Board shall certify to the Governor on or before
18November 15 of each year through until November 15, 2011 the
19appropriation required from State funds for the purposes of
20this System for the following fiscal year. The certification
21under this subsection (a) shall include a copy of the actuarial
22recommendations upon which it is based and shall specifically
23identify the System's projected State normal cost for that
24fiscal year and the projected State cost for the self-managed
25plan for that fiscal year.

 

 

09800SB0001sam001- 153 -LRB098 05457 JDS 42954 a

1    On or before May 1, 2004, the Board shall recalculate and
2recertify to the Governor the amount of the required State
3contribution to the System for State fiscal year 2005, taking
4into account the amounts appropriated to and received by the
5System under subsection (d) of Section 7.2 of the General
6Obligation Bond Act.
7    On or before July 1, 2005, the Board shall recalculate and
8recertify to the Governor the amount of the required State
9contribution to the System for State fiscal year 2006, taking
10into account the changes in required State contributions made
11by this amendatory Act of the 94th General Assembly.
12    On or before April 1, 2011, the Board shall recalculate and
13recertify to the Governor the amount of the required State
14contribution to the System for State fiscal year 2011, applying
15the changes made by Public Act 96-889 to the System's assets
16and liabilities as of June 30, 2009 as though Public Act 96-889
17was approved on that date.
18    (a-5) On or before November 1 of each year, beginning
19November 1, 2012, the Board shall submit to the State Actuary,
20the Governor, and the General Assembly a proposed certification
21of the amount of the required State contribution to the System
22for the next fiscal year, along with all of the actuarial
23assumptions, calculations, and data upon which that proposed
24certification is based. On or before January 1 of each year,
25beginning January 1, 2013, the State Actuary shall issue a
26preliminary report concerning the proposed certification and

 

 

09800SB0001sam001- 154 -LRB098 05457 JDS 42954 a

1identifying, if necessary, recommended changes in actuarial
2assumptions that the Board must consider before finalizing its
3certification of the required State contributions.
4    On or before January 15, 2013 and each January 15
5thereafter, the Board shall certify to the Governor and the
6General Assembly the amount of the required State contribution
7for the next fiscal year. The certification shall include a
8copy of the actuarial recommendations upon which it is based
9and shall specifically identify the System's projected State
10normal cost for that fiscal year and the projected State cost
11for the self-managed plan for that fiscal year. The Board's
12certification must note, in a written response to the State
13Actuary, any deviations from the State Actuary's recommended
14changes, the reason or reasons for not following the State
15Actuary's recommended changes, and the fiscal impact of not
16following the State Actuary's recommended changes on the
17required State contribution.
18    (b) The Board shall certify to the State Comptroller or
19employer, as the case may be, from time to time, by its
20president and secretary, with its seal attached, the amounts
21payable to the System from the various funds.
22    (c) Beginning in State fiscal year 1996, on or as soon as
23possible after the 15th day of each month the Board shall
24submit vouchers for payment of State contributions to the
25System, in a total monthly amount of one-twelfth of the
26required annual State contribution certified under subsection

 

 

09800SB0001sam001- 155 -LRB098 05457 JDS 42954 a

1(a). From the effective date of this amendatory Act of the 93rd
2General Assembly through June 30, 2004, the Board shall not
3submit vouchers for the remainder of fiscal year 2004 in excess
4of the fiscal year 2004 certified contribution amount
5determined under this Section after taking into consideration
6the transfer to the System under subsection (b) of Section
76z-61 of the State Finance Act. These vouchers shall be paid by
8the State Comptroller and Treasurer by warrants drawn on the
9funds appropriated to the System for that fiscal year.
10    If in any month the amount remaining unexpended from all
11other appropriations to the System for the applicable fiscal
12year (including the appropriations to the System under Section
138.12 of the State Finance Act and Section 1 of the State
14Pension Funds Continuing Appropriation Act) is less than the
15amount lawfully vouchered under this Section, the difference
16shall be paid from the General Revenue Fund under the
17continuing appropriation authority provided in Section 1.1 of
18the State Pension Funds Continuing Appropriation Act.
19    (d) So long as the payments received are the full amount
20lawfully vouchered under this Section, payments received by the
21System under this Section shall be applied first toward the
22employer contribution to the self-managed plan established
23under Section 15-158.2. Payments shall be applied second toward
24the employer's portion of the normal costs of the System, as
25defined in subsection (f) of Section 15-155. The balance shall
26be applied toward the unfunded actuarial liabilities of the

 

 

09800SB0001sam001- 156 -LRB098 05457 JDS 42954 a

1System.
2    (e) In the event that the System does not receive, as a
3result of legislative enactment or otherwise, payments
4sufficient to fully fund the employer contribution to the
5self-managed plan established under Section 15-158.2 and to
6fully fund that portion of the employer's portion of the normal
7costs of the System, as calculated in accordance with Section
815-155(a-1), then any payments received shall be applied
9proportionately to the optional retirement program established
10under Section 15-158.2 and to the employer's portion of the
11normal costs of the System, as calculated in accordance with
12Section 15-155(a-1).
13(Source: P.A. 96-1497, eff. 1-14-11; 96-1511, eff. 1-27-11;
1497-694, eff. 6-18-12.)
 
15    (40 ILCS 5/15-198)
16    Sec. 15-198. Application and expiration of new benefit
17increases.
18    (a) As used in this Section, "new benefit increase" means
19an increase in the amount of any benefit provided under this
20Article, or an expansion of the conditions of eligibility for
21any benefit under this Article, that results from an amendment
22to this Code that takes effect after the effective date of this
23amendatory Act of the 94th General Assembly. "New benefit
24increase", however, does not include any benefit increase
25resulting from the changes made to this Article by this

 

 

09800SB0001sam001- 157 -LRB098 05457 JDS 42954 a

1amendatory Act of the 98th General Assembly.
2    (b) Notwithstanding any other provision of this Code or any
3subsequent amendment to this Code, every new benefit increase
4is subject to this Section and shall be deemed to be granted
5only in conformance with and contingent upon compliance with
6the provisions of this Section.
7    (c) The Public Act enacting a new benefit increase must
8identify and provide for payment to the System of additional
9funding at least sufficient to fund the resulting annual
10increase in cost to the System as it accrues.
11    Every new benefit increase is contingent upon the General
12Assembly providing the additional funding required under this
13subsection. The Commission on Government Forecasting and
14Accountability shall analyze whether adequate additional
15funding has been provided for the new benefit increase and
16shall report its analysis to the Public Pension Division of the
17Department of Financial and Professional Regulation. A new
18benefit increase created by a Public Act that does not include
19the additional funding required under this subsection is null
20and void. If the Public Pension Division determines that the
21additional funding provided for a new benefit increase under
22this subsection is or has become inadequate, it may so certify
23to the Governor and the State Comptroller and, in the absence
24of corrective action by the General Assembly, the new benefit
25increase shall expire at the end of the fiscal year in which
26the certification is made.

 

 

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1    (d) Every new benefit increase shall expire 5 years after
2its effective date or on such earlier date as may be specified
3in the language enacting the new benefit increase or provided
4under subsection (c). This does not prevent the General
5Assembly from extending or re-creating a new benefit increase
6by law.
7    (e) Except as otherwise provided in the language creating
8the new benefit increase, a new benefit increase that expires
9under this Section continues to apply to persons who applied
10and qualified for the affected benefit while the new benefit
11increase was in effect and to the affected beneficiaries and
12alternate payees of such persons, but does not apply to any
13other person, including without limitation a person who
14continues in service after the expiration date and did not
15apply and qualify for the affected benefit while the new
16benefit increase was in effect.
17(Source: P.A. 94-4, eff. 6-1-05.)
 
18    (40 ILCS 5/16-106)  (from Ch. 108 1/2, par. 16-106)
19    Sec. 16-106. Teacher. "Teacher": The following
20individuals, provided that, for employment prior to July 1,
211990, they are employed on a full-time basis, or if not
22full-time, on a permanent and continuous basis in a position in
23which services are expected to be rendered for at least one
24school term:
25        (1) Any educational, administrative, professional or

 

 

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1    other staff employed in the public common schools included
2    within this system in a position requiring certification
3    under the law governing the certification of teachers;
4        (2) Any educational, administrative, professional or
5    other staff employed in any facility of the Department of
6    Children and Family Services or the Department of Human
7    Services, in a position requiring certification under the
8    law governing the certification of teachers, and any person
9    who (i) works in such a position for the Department of
10    Corrections, (ii) was a member of this System on May 31,
11    1987, and (iii) did not elect to become a member of the
12    State Employees' Retirement System pursuant to Section
13    14-108.2 of this Code; except that "teacher" does not
14    include any person who (A) becomes a security employee of
15    the Department of Human Services, as defined in Section
16    14-110, after June 28, 2001 (the effective date of Public
17    Act 92-14), or (B) becomes a member of the State Employees'
18    Retirement System pursuant to Section 14-108.2c of this
19    Code;
20        (3) Any regional superintendent of schools, assistant
21    regional superintendent of schools, State Superintendent
22    of Education; any person employed by the State Board of
23    Education as an executive; any executive of the boards
24    engaged in the service of public common school education in
25    school districts covered under this system of which the
26    State Superintendent of Education is an ex-officio member;

 

 

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1        (4) Any employee of a school board association
2    operating in compliance with Article 23 of the School Code
3    who is certificated under the law governing the
4    certification of teachers, provided that he or she becomes
5    such an employee before the effective date of this
6    amendatory Act of the 98th General Assembly;
7        (5) Any person employed by the retirement system who:
8            (i) was an employee of and a participant in the
9        system on August 17, 2001 (the effective date of Public
10        Act 92-416), or
11            (ii) becomes an employee of the system on or after
12        August 17, 2001;
13        (6) Any educational, administrative, professional or
14    other staff employed by and under the supervision and
15    control of a regional superintendent of schools, provided
16    such employment position requires the person to be
17    certificated under the law governing the certification of
18    teachers and is in an educational program serving 2 or more
19    districts in accordance with a joint agreement authorized
20    by the School Code or by federal legislation;
21        (7) Any educational, administrative, professional or
22    other staff employed in an educational program serving 2 or
23    more school districts in accordance with a joint agreement
24    authorized by the School Code or by federal legislation and
25    in a position requiring certification under the laws
26    governing the certification of teachers;

 

 

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1        (8) Any officer or employee of a statewide teacher
2    organization or officer of a national teacher organization
3    who is certified under the law governing certification of
4    teachers, provided: (i) the individual had previously
5    established creditable service under this Article, (ii)
6    the individual files with the system an irrevocable
7    election to become a member before the effective date of
8    this amendatory Act of the 97th General Assembly, (iii) the
9    individual does not receive credit for such service under
10    any other Article of this Code, and (iv) the individual
11    first became an officer or employee of the teacher
12    organization and becomes a member before the effective date
13    of this amendatory Act of the 97th General Assembly;
14        (9) Any educational, administrative, professional, or
15    other staff employed in a charter school operating in
16    compliance with the Charter Schools Law who is certificated
17    under the law governing the certification of teachers; .
18        (10) Any person employed, on the effective date of this
19    amendatory Act of the 94th General Assembly, by the
20    Macon-Piatt Regional Office of Education in a
21    birth-through-age-three pilot program receiving funds
22    under Section 2-389 of the School Code who is required by
23    the Macon-Piatt Regional Office of Education to hold a
24    teaching certificate, provided that the Macon-Piatt
25    Regional Office of Education makes an election, within 6
26    months after the effective date of this amendatory Act of

 

 

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1    the 94th General Assembly, to have the person participate
2    in the system. Any service established prior to the
3    effective date of this amendatory Act of the 94th General
4    Assembly for service as an employee of the Macon-Piatt
5    Regional Office of Education in a birth-through-age-three
6    pilot program receiving funds under Section 2-389 of the
7    School Code shall be considered service as a teacher if
8    employee and employer contributions have been received by
9    the system and the system has not refunded those
10    contributions.
11    An annuitant receiving a retirement annuity under this
12Article or under Article 17 of this Code who is employed by a
13board of education or other employer as permitted under Section
1416-118 or 16-150.1 is not a "teacher" for purposes of this
15Article. A person who has received a single-sum retirement
16benefit under Section 16-136.4 of this Article is not a
17"teacher" for purposes of this Article.
18(Source: P.A. 97-651, eff. 1-5-12; revised 8-3-12.)
 
19    (40 ILCS 5/16-106.4 new)
20    Sec. 16-106.4. Tier I member. "Tier I member": A member
21under this Article who first became a member or participant
22before January 1, 2011 under any reciprocal retirement system
23or pension fund established under this Code other than a
24retirement system or pension fund established under Article 2,
253, 4, 5, 6, or 18 of this Code.
 

 

 

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1    (40 ILCS 5/16-106.5 new)
2    Sec. 16-106.5. Tier I retiree. "Tier I retiree": A former
3Tier I member who is receiving a retirement annuity.
 
4    (40 ILCS 5/16-121)  (from Ch. 108 1/2, par. 16-121)
5    Sec. 16-121. Salary. "Salary": The actual compensation
6received by a teacher during any school year and recognized by
7the system in accordance with rules of the board. For purposes
8of this Section, "school year" includes the regular school term
9plus any additional period for which a teacher is compensated
10and such compensation is recognized by the rules of the board.
11    Notwithstanding any other provision of this Code, the
12salary of a Tier I member for the purposes of this Code shall
13not exceed, for periods of service on or after the effective
14date of this amendatory Act of the 98th General Assembly, the
15greater of (i) the annual contribution and benefit base
16established for the applicable year by the Commissioner of
17Social Security under the federal Social Security Act or (ii)
18the annual salary of the member during the 365 days immediately
19preceding that effective date; except that this limitation does
20not apply to a member's salary that is determined under an
21employment contract or collective bargaining agreement that is
22in effect on the effective date of this amendatory Act of the
2398th General Assembly and has not been amended or renewed after
24that date.

 

 

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1(Source: P.A. 84-1028.)
 
2    (40 ILCS 5/16-127)  (from Ch. 108 1/2, par. 16-127)
3    Sec. 16-127. Computation of creditable service.
4    (a) Each member shall receive regular credit for all
5service as a teacher from the date membership begins, for which
6satisfactory evidence is supplied and all contributions have
7been paid.
8    (b) The following periods of service shall earn optional
9credit and each member shall receive credit for all such
10service for which satisfactory evidence is supplied and all
11contributions have been paid as of the date specified:
12        (1) Prior service as a teacher.
13        (2) Service in a capacity essentially similar or
14    equivalent to that of a teacher, in the public common
15    schools in school districts in this State not included
16    within the provisions of this System, or of any other
17    State, territory, dependency or possession of the United
18    States, or in schools operated by or under the auspices of
19    the United States, or under the auspices of any agency or
20    department of any other State, and service during any
21    period of professional speech correction or special
22    education experience for a public agency within this State
23    or any other State, territory, dependency or possession of
24    the United States, and service prior to February 1, 1951 as
25    a recreation worker for the Illinois Department of Public

 

 

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1    Safety, for a period not exceeding the lesser of 2/5 of the
2    total creditable service of the member or 10 years. The
3    maximum service of 10 years which is allowable under this
4    paragraph shall be reduced by the service credit which is
5    validated by other retirement systems under paragraph (i)
6    of Section 15-113 and paragraph 1 of Section 17-133. Credit
7    granted under this paragraph may not be used in
8    determination of a retirement annuity or disability
9    benefits unless the member has at least 5 years of
10    creditable service earned subsequent to this employment
11    with one or more of the following systems: Teachers'
12    Retirement System of the State of Illinois, State
13    Universities Retirement System, and the Public School
14    Teachers' Pension and Retirement Fund of Chicago. Whenever
15    such service credit exceeds the maximum allowed for all
16    purposes of this Article, the first service rendered in
17    point of time shall be considered. The changes to this
18    subdivision (b)(2) made by Public Act 86-272 shall apply
19    not only to persons who on or after its effective date
20    (August 23, 1989) are in service as a teacher under the
21    System, but also to persons whose status as such a teacher
22    terminated prior to such effective date, whether or not
23    such person is an annuitant on that date.
24        (3) Any periods immediately following teaching
25    service, under this System or under Article 17, (or
26    immediately following service prior to February 1, 1951 as

 

 

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1    a recreation worker for the Illinois Department of Public
2    Safety) spent in active service with the military forces of
3    the United States; periods spent in educational programs
4    that prepare for return to teaching sponsored by the
5    federal government following such active military service;
6    if a teacher returns to teaching service within one
7    calendar year after discharge or after the completion of
8    the educational program, a further period, not exceeding
9    one calendar year, between time spent in military service
10    or in such educational programs and the return to
11    employment as a teacher under this System; and a period of
12    up to 2 years of active military service not immediately
13    following employment as a teacher.
14        The changes to this Section and Section 16-128 relating
15    to military service made by P.A. 87-794 shall apply not
16    only to persons who on or after its effective date are in
17    service as a teacher under the System, but also to persons
18    whose status as a teacher terminated prior to that date,
19    whether or not the person is an annuitant on that date. In
20    the case of an annuitant who applies for credit allowable
21    under this Section for a period of military service that
22    did not immediately follow employment, and who has made the
23    required contributions for such credit, the annuity shall
24    be recalculated to include the additional service credit,
25    with the increase taking effect on the date the System
26    received written notification of the annuitant's intent to

 

 

09800SB0001sam001- 167 -LRB098 05457 JDS 42954 a

1    purchase the credit, if payment of all the required
2    contributions is made within 60 days of such notice, or
3    else on the first annuity payment date following the date
4    of payment of the required contributions. In calculating
5    the automatic annual increase for an annuity that has been
6    recalculated under this Section, the increase attributable
7    to the additional service allowable under P.A. 87-794 shall
8    be included in the calculation of automatic annual
9    increases accruing after the effective date of the
10    recalculation.
11        Credit for military service shall be determined as
12    follows: if entry occurs during the months of July, August,
13    or September and the member was a teacher at the end of the
14    immediately preceding school term, credit shall be granted
15    from July 1 of the year in which he or she entered service;
16    if entry occurs during the school term and the teacher was
17    in teaching service at the beginning of the school term,
18    credit shall be granted from July 1 of such year. In all
19    other cases where credit for military service is allowed,
20    credit shall be granted from the date of entry into the
21    service.
22        The total period of military service for which credit
23    is granted shall not exceed 5 years for any member unless
24    the service: (A) is validated before July 1, 1964, and (B)
25    does not extend beyond July 1, 1963. Credit for military
26    service shall be granted under this Section only if not

 

 

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1    more than 5 years of the military service for which credit
2    is granted under this Section is used by the member to
3    qualify for a military retirement allotment from any branch
4    of the armed forces of the United States. The changes to
5    this subdivision (b)(3) made by Public Act 86-272 shall
6    apply not only to persons who on or after its effective
7    date (August 23, 1989) are in service as a teacher under
8    the System, but also to persons whose status as such a
9    teacher terminated prior to such effective date, whether or
10    not such person is an annuitant on that date.
11        (4) Any periods served as a member of the General
12    Assembly.
13        (5)(i) Any periods for which a teacher, as defined in
14    Section 16-106, is granted a leave of absence, provided he
15    or she returns to teaching service creditable under this
16    System or the State Universities Retirement System
17    following the leave; (ii) periods during which a teacher is
18    involuntarily laid off from teaching, provided he or she
19    returns to teaching following the lay-off; (iii) periods
20    prior to July 1, 1983 during which a teacher ceased covered
21    employment due to pregnancy, provided that the teacher
22    returned to teaching service creditable under this System
23    or the State Universities Retirement System following the
24    pregnancy and submits evidence satisfactory to the Board
25    documenting that the employment ceased due to pregnancy;
26    and (iv) periods prior to July 1, 1983 during which a

 

 

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1    teacher ceased covered employment for the purpose of
2    adopting an infant under 3 years of age or caring for a
3    newly adopted infant under 3 years of age, provided that
4    the teacher returned to teaching service creditable under
5    this System or the State Universities Retirement System
6    following the adoption and submits evidence satisfactory
7    to the Board documenting that the employment ceased for the
8    purpose of adopting an infant under 3 years of age or
9    caring for a newly adopted infant under 3 years of age.
10    However, total credit under this paragraph (5) may not
11    exceed 3 years.
12        Any qualified member or annuitant may apply for credit
13    under item (iii) or (iv) of this paragraph (5) without
14    regard to whether service was terminated before the
15    effective date of this amendatory Act of 1997. In the case
16    of an annuitant who establishes credit under item (iii) or
17    (iv), the annuity shall be recalculated to include the
18    additional service credit. The increase in annuity shall
19    take effect on the date the System receives written
20    notification of the annuitant's intent to purchase the
21    credit, if the required evidence is submitted and the
22    required contribution paid within 60 days of that
23    notification, otherwise on the first annuity payment date
24    following the System's receipt of the required evidence and
25    contribution. The increase in an annuity recalculated
26    under this provision shall be included in the calculation

 

 

09800SB0001sam001- 170 -LRB098 05457 JDS 42954 a

1    of automatic annual increases in the annuity accruing after
2    the effective date of the recalculation.
3        Optional credit may be purchased under this subsection
4    (b)(5) for periods during which a teacher has been granted
5    a leave of absence pursuant to Section 24-13 of the School
6    Code. A teacher whose service under this Article terminated
7    prior to the effective date of P.A. 86-1488 shall be
8    eligible to purchase such optional credit. If a teacher who
9    purchases this optional credit is already receiving a
10    retirement annuity under this Article, the annuity shall be
11    recalculated as if the annuitant had applied for the leave
12    of absence credit at the time of retirement. The difference
13    between the entitled annuity and the actual annuity shall
14    be credited to the purchase of the optional credit. The
15    remainder of the purchase cost of the optional credit shall
16    be paid on or before April 1, 1992.
17        The change in this paragraph made by Public Act 86-273
18    shall be applicable to teachers who retire after June 1,
19    1989, as well as to teachers who are in service on that
20    date.
21        (6) Any days of unused and uncompensated accumulated
22    sick leave earned by a teacher who first became a
23    participant in the System before the effective date of this
24    amendatory Act of the 98th General Assembly. The service
25    credit granted under this paragraph shall be the ratio of
26    the number of unused and uncompensated accumulated sick

 

 

09800SB0001sam001- 171 -LRB098 05457 JDS 42954 a

1    leave days to 170 days, subject to a maximum of 2 years of
2    service credit. Prior to the member's retirement, each
3    former employer shall certify to the System the number of
4    unused and uncompensated accumulated sick leave days
5    credited to the member at the time of termination of
6    service. The period of unused sick leave shall not be
7    considered in determining the effective date of
8    retirement. A member is not required to make contributions
9    in order to obtain service credit for unused sick leave.
10        Credit for sick leave shall, at retirement, be granted
11    by the System for any retiring regional or assistant
12    regional superintendent of schools who first became a
13    participant in this System before the effective date of
14    this amendatory Act of the 98th General Assembly at the
15    rate of 6 days per year of creditable service or portion
16    thereof established while serving as such superintendent
17    or assistant superintendent.
18    Service credit is not available for unused sick leave
19accumulated by a teacher who first becomes a participant in
20this System on or after the effective date of this amendatory
21Act of the 98th General Assembly.
22        (7) Periods prior to February 1, 1987 served as an
23    employee of the Illinois Mathematics and Science Academy
24    for which credit has not been terminated under Section
25    15-113.9 of this Code.
26        (8) Service as a substitute teacher for work performed

 

 

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1    prior to July 1, 1990.
2        (9) Service as a part-time teacher for work performed
3    prior to July 1, 1990.
4        (10) Up to 2 years of employment with Southern Illinois
5    University - Carbondale from September 1, 1959 to August
6    31, 1961, or with Governors State University from September
7    1, 1972 to August 31, 1974, for which the teacher has no
8    credit under Article 15. To receive credit under this item
9    (10), a teacher must apply in writing to the Board and pay
10    the required contributions before May 1, 1993 and have at
11    least 12 years of service credit under this Article.
12    (b-1) A member may establish optional credit for up to 2
13years of service as a teacher or administrator employed by a
14private school recognized by the Illinois State Board of
15Education, provided that the teacher (i) was certified under
16the law governing the certification of teachers at the time the
17service was rendered, (ii) applies in writing on or after
18August 1, 2009 and on or before August 1, 2012, (iii) supplies
19satisfactory evidence of the employment, (iv) completes at
20least 10 years of contributing service as a teacher as defined
21in Section 16-106, and (v) pays the contribution required in
22subsection (d-5) of Section 16-128. The member may apply for
23credit under this subsection and pay the required contribution
24before completing the 10 years of contributing service required
25under item (iv), but the credit may not be used until the item
26(iv) contributing service requirement has been met.

 

 

09800SB0001sam001- 173 -LRB098 05457 JDS 42954 a

1    (c) The service credits specified in this Section shall be
2granted only if: (1) such service credits are not used for
3credit in any other statutory tax-supported public employee
4retirement system other than the federal Social Security
5program; and (2) the member makes the required contributions as
6specified in Section 16-128. Except as provided in subsection
7(b-1) of this Section, the service credit shall be effective as
8of the date the required contributions are completed.
9    Any service credits granted under this Section shall
10terminate upon cessation of membership for any cause.
11    Credit may not be granted under this Section covering any
12period for which an age retirement or disability retirement
13allowance has been paid.
14(Source: P.A. 96-546, eff. 8-17-09.)
 
15    (40 ILCS 5/16-132)  (from Ch. 108 1/2, par. 16-132)
16    Sec. 16-132. Retirement annuity eligibility.
17    (a) A member who has at least 20 years of creditable
18service is entitled to a retirement annuity upon or after
19attainment of age 55. A member who has at least 10 but less
20than 20 years of creditable service is entitled to a retirement
21annuity upon or after attainment of age 60. A member who has at
22least 5 but less than 10 years of creditable service is
23entitled to a retirement annuity upon or after attainment of
24age 62. A member who (i) has earned during the period
25immediately preceding the last day of service at least one year

 

 

09800SB0001sam001- 174 -LRB098 05457 JDS 42954 a

1of contributing creditable service as an employee of a
2department as defined in Section 14-103.04, (ii) has earned at
3least 5 years of contributing creditable service as an employee
4of a department as defined in Section 14-103.04, and (iii)
5retires on or after January 1, 2001 is entitled to a retirement
6annuity upon or after attainment of an age which, when added to
7the number of years of his or her total creditable service,
8equals at least 85. Portions of years shall be counted as
9decimal equivalents.
10    A member who is eligible to receive a retirement annuity of
11at least 74.6% of final average salary and will attain age 55
12on or before December 31 during the year which commences on
13July 1 shall be deemed to attain age 55 on the preceding June
141.
15    (b) Notwithstanding subsection (a) of this Section, for a
16Tier I member who begins receiving a retirement annuity under
17this Article after July 1, 2013:
18        (1) If the Tier I member is at least 45 years old on
19    the effective date of this amendatory Act of the 98th
20    General Assembly, then the references to age 55, 60, and 62
21    in subsection (a) of this Section remain unchanged and the
22    reference to 85 in subsection (a) of this Section remains
23    unchanged.
24        (2) If the Tier I member is at least 40 but less than
25    45 years old on the effective date of this amendatory Act
26    of the 98th General Assembly, then the references to age

 

 

09800SB0001sam001- 175 -LRB098 05457 JDS 42954 a

1    55, 60, and 62 in subsection (a) of this Section are
2    increased by one year and the reference to 85 in subsection
3    (a) is increased to 87.
4        (3) If the Tier I member is at least 35 but less than
5    40 years old on the effective date of this amendatory Act
6    of the 98th General Assembly, then the references to age
7    55, 60, and 62 in subsection (a) of this Section are
8    increased by 3 years and the reference to 85 in subsection
9    (a) is increased to 91.
10        (4) If the Tier I member is less than 35 years old on
11    the effective date of this amendatory Act of the 98th
12    General Assembly, then the references to age 55, 60, and 62
13    in subsection (a) of this Section are increased by 5 years
14    and the reference to 85 in subsection (a) is increased to
15    95.
16    Notwithstanding Section 1-103.1, this subsection (b)
17applies without regard to whether or not the Tier I member is
18in active service under this Article on or after the effective
19date of this amendatory Act of the 98th General Assembly.
20    (c) A member meeting the above eligibility conditions is
21entitled to a retirement annuity upon written application to
22the board setting forth the date the member wishes the
23retirement annuity to commence. However, the effective date of
24the retirement annuity shall be no earlier than the day
25following the last day of creditable service, regardless of the
26date of official termination of employment.

 

 

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1    (d) To be eligible for a retirement annuity, a member shall
2not be employed as a teacher in the schools included under this
3System or under Article 17, except (i) as provided in Section
416-118 or 16-150.1, (ii) if the member is disabled (in which
5event, eligibility for salary must cease), or (iii) if the
6System is required by federal law to commence payment due to
7the member's age; the changes to this sentence made by Public
8Act 93-320 this amendatory Act of the 93rd General Assembly
9apply without regard to whether the member terminated
10employment before or after its effective date.
11(Source: P.A. 93-320, eff. 7-23-03.)
 
12    (40 ILCS 5/16-133)  (from Ch. 108 1/2, par. 16-133)
13    Sec. 16-133. Retirement annuity; amount.
14    (a) The amount of the retirement annuity shall be (i) in
15the case of a person who first became a teacher under this
16Article before July 1, 2005, the larger of the amounts
17determined under paragraphs (A) and (B) below, or (ii) in the
18case of a person who first becomes a teacher under this Article
19on or after July 1, 2005, the amount determined under the
20applicable provisions of paragraph (B):
21        (A) An amount consisting of the sum of the following:
22            (1) An amount that can be provided on an
23        actuarially equivalent basis by the member's
24        accumulated contributions at the time of retirement;
25        and

 

 

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1            (2) The sum of (i) the amount that can be provided
2        on an actuarially equivalent basis by the member's
3        accumulated contributions representing service prior
4        to July 1, 1947, and (ii) the amount that can be
5        provided on an actuarially equivalent basis by the
6        amount obtained by multiplying 1.4 times the member's
7        accumulated contributions covering service subsequent
8        to June 30, 1947; and
9            (3) If there is prior service, 2 times the amount
10        that would have been determined under subparagraph (2)
11        of paragraph (A) above on account of contributions
12        which would have been made during the period of prior
13        service creditable to the member had the System been in
14        operation and had the member made contributions at the
15        contribution rate in effect prior to July 1, 1947.
16        For the purpose of calculating the sum provided under
17    this paragraph (A), the contribution required under
18    subsection (a-5) of Section 16-152 shall not be considered
19    when determining the amount of the member's accumulated
20    contributions under subparagraph (1) or (2).
21        This paragraph (A) does not apply to a person who first
22    becomes a teacher under this Article on or after July 1,
23    2005.
24        (B) An amount consisting of the greater of the
25    following:
26            (1) For creditable service earned before July 1,

 

 

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1        1998 that has not been augmented under Section
2        16-129.1: 1.67% of final average salary for each of the
3        first 10 years of creditable service, 1.90% of final
4        average salary for each year in excess of 10 but not
5        exceeding 20, 2.10% of final average salary for each
6        year in excess of 20 but not exceeding 30, and 2.30% of
7        final average salary for each year in excess of 30; and
8            For creditable service earned on or after July 1,
9        1998 by a member who has at least 24 years of
10        creditable service on July 1, 1998 and who does not
11        elect to augment service under Section 16-129.1: 2.2%
12        of final average salary for each year of creditable
13        service earned on or after July 1, 1998 but before the
14        member reaches a total of 30 years of creditable
15        service and 2.3% of final average salary for each year
16        of creditable service earned on or after July 1, 1998
17        and after the member reaches a total of 30 years of
18        creditable service; and
19            For all other creditable service: 2.2% of final
20        average salary for each year of creditable service; or
21            (2) 1.5% of final average salary for each year of
22        creditable service plus the sum $7.50 for each of the
23        first 20 years of creditable service.
24    The amount of the retirement annuity determined under this
25    paragraph (B) shall be reduced by 1/2 of 1% for each month
26    that the member is less than age 60 at the time the

 

 

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1    retirement annuity begins. However, this reduction shall
2    not apply (i) if the member has at least 35 years of
3    creditable service, or (ii) if the member retires on
4    account of disability under Section 16-149.2 of this
5    Article with at least 20 years of creditable service, or
6    (iii) if the member (1) has earned during the period
7    immediately preceding the last day of service at least one
8    year of contributing creditable service as an employee of a
9    department as defined in Section 14-103.04, (2) has earned
10    at least 5 years of contributing creditable service as an
11    employee of a department as defined in Section 14-103.04,
12    (3) retires on or after January 1, 2001, and (4) retires
13    having attained an age which, when added to the number of
14    years of his or her total creditable service, equals at
15    least 85. Portions of years shall be counted as decimal
16    equivalents. For participants to whom subsection (b) of
17    Section 16-132 applies, the reference to age 60 in this
18    paragraph and the reference to 85 in this paragraph are
19    increased as provided in subsection (b) of Section 16-132.
20    (b) For purposes of this Section, final average salary
21shall be the average salary for the highest 4 consecutive years
22within the last 10 years of creditable service as determined
23under rules of the board. The minimum final average salary
24shall be considered to be $2,400 per year.
25    In the determination of final average salary for members
26other than elected officials and their appointees when such

 

 

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1appointees are allowed by statute, that part of a member's
2salary for any year beginning after June 30, 1979 which exceeds
3the member's annual full-time salary rate with the same
4employer for the preceding year by more than 20% shall be
5excluded. The exclusion shall not apply in any year in which
6the member's creditable earnings are less than 50% of the
7preceding year's mean salary for downstate teachers as
8determined by the survey of school district salaries provided
9in Section 2-3.103 of the School Code.
10    (c) In determining the amount of the retirement annuity
11under paragraph (B) of this Section, a fractional year shall be
12granted proportional credit.
13    (d) The retirement annuity determined under paragraph (B)
14of this Section shall be available only to members who render
15teaching service after July 1, 1947 for which member
16contributions are required, and to annuitants who re-enter
17under the provisions of Section 16-150.
18    (e) The maximum retirement annuity provided under
19paragraph (B) of this Section shall be 75% of final average
20salary.
21    (f) A member retiring after the effective date of this
22amendatory Act of 1998 shall receive a pension equal to 75% of
23final average salary if the member is qualified to receive a
24retirement annuity equal to at least 74.6% of final average
25salary under this Article or as proportional annuities under
26Article 20 of this Code.

 

 

09800SB0001sam001- 181 -LRB098 05457 JDS 42954 a

1(Source: P.A. 94-4, eff. 6-1-05.)
 
2    (40 ILCS 5/16-133.1)  (from Ch. 108 1/2, par. 16-133.1)
3    Sec. 16-133.1. Automatic annual increase in annuity.
4    (a) Each member with creditable service and retiring on or
5after August 26, 1969 is entitled to the automatic annual
6increases in annuity provided under this Section while
7receiving a retirement annuity or disability retirement
8annuity from the system.
9    An annuitant shall first be entitled to an initial increase
10under this Section on the January 1 next following the first
11anniversary of retirement, or January 1 of the year next
12following attainment of age 61, whichever is later. At such
13time, the system shall pay an initial increase determined as
14follows or as provided in subsections (a-1), (a-2), and (a-3)
15of this Section:
16        (1) 1.5% of the originally granted retirement annuity
17    or disability retirement annuity multiplied by the number
18    of years elapsed, if any, from the date of retirement until
19    January 1, 1972, plus
20        (2) 2% of the originally granted annuity multiplied by
21    the number of years elapsed, if any, from the date of
22    retirement or January 1, 1972, whichever is later, until
23    January 1, 1978, plus
24        (3) 3% of the originally granted annuity multiplied by
25    the number of years elapsed from the date of retirement or

 

 

09800SB0001sam001- 182 -LRB098 05457 JDS 42954 a

1    January 1, 1978, whichever is later, until the effective
2    date of the initial increase.
3However, the initial annual increase calculated under this
4Section for the recipient of a disability retirement annuity
5granted under Section 16-149.2 shall be reduced by an amount
6equal to the total of all increases in that annuity received
7under Section 16-149.5 (but not exceeding 100% of the amount of
8the initial increase otherwise provided under this Section).
9    Following the initial increase, automatic annual increases
10in annuity shall be payable on each January 1 thereafter during
11the lifetime of the annuitant, determined as a percentage of
12the originally granted retirement annuity or disability
13retirement annuity for increases granted prior to January 1,
141990, and calculated as a percentage of the total amount of
15annuity, including previous increases under this Section, for
16increases granted on or after January 1, 1990, as follows: 1.5%
17for periods prior to January 1, 1972, 2% for periods after
18December 31, 1971 and prior to January 1, 1978, and 3% for
19periods after December 31, 1977, or as provided in subsections
20(a-1), (a-2), and (a-3) of this Section.
21    (a-1) Notwithstanding any other provision of this Article,
22except subsection (a-3) of this Section, for a Tier I retiree,
23the amount of each automatic annual increase in retirement
24annuity occurring on or after the effective date of this
25amendatory Act of the 98th General Assembly shall be the lesser
26of $750 or 3% of the total annuity payable at the time of the

 

 

09800SB0001sam001- 183 -LRB098 05457 JDS 42954 a

1increase, including previous increases granted.
2    (a-2) Notwithstanding any other provision of this Article,
3except subsection (a-3) of this Section, for a Tier I retiree,
4the monthly retirement annuity shall first be subject to annual
5increases on the January 1 occurring on or next after the
6attainment of age 67 or the January 1 occurring on or next
7after the fifth anniversary of the annuity start date,
8whichever occurs earlier. If on the effective date of this
9amendatory Act of the 98th General Assembly a Tier I retiree
10has already received an annual increase under this Section but
11does not yet meet the new eligibility requirements of this
12subsection, the annual increases already received shall
13continue in force, but no additional annual increase shall be
14granted until the Tier I retiree meets the new eligibility
15requirements.
16    (a-3) Notwithstanding any other provision of this Article,
17a Tier I retiree is ineligible to receive an automatic annual
18increase in retirement annuity pursuant to this Section, unless
19he or she has 20 years of creditable service under this
20Article. If on the effective date of this amendatory Act of the
2198th General Assembly a Tier I retiree has already received an
22annual increase under this Section but does not yet meet the
23new eligibility requirements of this subsection, the annual
24increases already received shall continue in force, but no
25additional annual increase shall be granted until the Tier I
26retiree meets the new eligibility requirements.

 

 

09800SB0001sam001- 184 -LRB098 05457 JDS 42954 a

1    (a-4) Notwithstanding Section 1-103.1, subsections (a-1)
2and (a-2) apply without regard to whether or not the Tier I
3retiree is in active service under this Article on or after the
4effective date of this amendatory Act of the 98th General
5Assembly.
6    (b) The automatic annual increases in annuity provided
7under this Section shall not be applicable unless a member has
8made contributions toward such increases for a period
9equivalent to one full year of creditable service. If a member
10contributes for service performed after August 26, 1969 but the
11member becomes an annuitant before such contributions amount to
12one full year's contributions based on the salary at the date
13of retirement, he or she may pay the necessary balance of the
14contributions to the system and be eligible for the automatic
15annual increases in annuity provided under this Section.
16    (c) Each member shall make contributions toward the cost of
17the automatic annual increases in annuity as provided under
18Section 16-152.
19    (d) An annuitant receiving a retirement annuity or
20disability retirement annuity on July 1, 1969, who subsequently
21re-enters service as a teacher is eligible for the automatic
22annual increases in annuity provided under this Section if he
23or she renders at least one year of creditable service
24following the latest re-entry.
25    (e) In addition to the automatic annual increases in
26annuity provided under this Section, an annuitant who meets the

 

 

09800SB0001sam001- 185 -LRB098 05457 JDS 42954 a

1service requirements of this Section and whose retirement
2annuity or disability retirement annuity began on or before
3January 1, 1971 shall receive, on January 1, 1981, an increase
4in the annuity then being paid of one dollar per month for each
5year of creditable service. On January 1, 1982, an annuitant
6whose retirement annuity or disability retirement annuity
7began on or before January 1, 1977 shall receive an increase in
8the annuity then being paid of one dollar per month for each
9year of creditable service.
10    On January 1, 1987, any annuitant whose retirement annuity
11began on or before January 1, 1977, shall receive an increase
12in the monthly retirement annuity equal to 8 per year of
13creditable service times the number of years that have elapsed
14since the annuity began.
15(Source: P.A. 91-927, eff. 12-14-00.)
 
16    (40 ILCS 5/16-152)  (from Ch. 108 1/2, par. 16-152)
17    Sec. 16-152. Contributions by members.
18    (a) Each member shall make contributions for membership
19service to this System as follows:
20        (1) Effective July 1, 1998, contributions of 7.50% of
21    salary towards the cost of the retirement annuity. Such
22    contributions shall be deemed "normal contributions".
23        (2) Effective July 1, 1969, contributions of 1/2 of 1%
24    of salary toward the cost of the automatic annual increase
25    in retirement annuity provided under Section 16-133.1.

 

 

09800SB0001sam001- 186 -LRB098 05457 JDS 42954 a

1        (3) Effective July 24, 1959, contributions of 1% of
2    salary towards the cost of survivor benefits. Such
3    contributions shall not be credited to the individual
4    account of the member and shall not be subject to refund
5    except as provided under Section 16-143.2.
6        (4) Effective July 1, 2005, contributions of 0.40% of
7    salary toward the cost of the early retirement without
8    discount option provided under Section 16-133.2. This
9    contribution shall cease upon termination of the early
10    retirement without discount option as provided in Section
11    16-176.
12    (a-5) In addition to the contributions otherwise required
13under this Article, each Tier I member shall also make the
14following contributions toward the cost of the retirement
15annuity from each payment of salary:
16        (1) beginning July 1, 2013 and through June 30, 2014,
17    1% of salary; and
18        (2) beginning on July 1, 2014, 2% of salary.
19    Except as otherwise specified, these contributions are to
20be considered as normal contributions for purposes of this
21Article.
22    (b) The minimum required contribution for any year of
23full-time teaching service shall be $192.
24    (c) Contributions shall not be required of any annuitant
25receiving a retirement annuity who is given employment as
26permitted under Section 16-118 or 16-150.1.

 

 

09800SB0001sam001- 187 -LRB098 05457 JDS 42954 a

1    (d) A person who (i) was a member before July 1, 1998, (ii)
2retires with more than 34 years of creditable service, and
3(iii) does not elect to qualify for the augmented rate under
4Section 16-129.1 shall be entitled, at the time of retirement,
5to receive a partial refund of contributions made under this
6Section for service occurring after the later of June 30, 1998
7or attainment of 34 years of creditable service, in an amount
8equal to 1.00% of the salary upon which those contributions
9were based.
10    (e) A member's contributions toward the cost of early
11retirement without discount made under item (a)(4) of this
12Section shall not be refunded if the member has elected early
13retirement without discount under Section 16-133.2 and has
14begun to receive a retirement annuity under this Article
15calculated in accordance with that election. Otherwise, a
16member's contributions toward the cost of early retirement
17without discount made under item (a)(4) of this Section shall
18be refunded according to whichever one of the following
19circumstances occurs first:
20        (1) The contributions shall be refunded to the member,
21    without interest, within 120 days after the member's
22    retirement annuity commences, if the member does not elect
23    early retirement without discount under Section 16-133.2.
24        (2) The contributions shall be included, without
25    interest, in any refund claimed by the member under Section
26    16-151.

 

 

09800SB0001sam001- 188 -LRB098 05457 JDS 42954 a

1        (3) The contributions shall be refunded to the member's
2    designated beneficiary (or if there is no beneficiary, to
3    the member's estate), without interest, if the member dies
4    without having begun to receive a retirement annuity under
5    this Article.
6        (4) The contributions shall be refunded to the member,
7    without interest, within 120 days after the early
8    retirement without discount option provided under Section
9    16-133.2 is terminated under Section 16-176.
10(Source: P.A. 93-320, eff. 7-23-03; 94-4, eff. 6-1-05.)
 
11    (40 ILCS 5/16-158)   (from Ch. 108 1/2, par. 16-158)
12    Sec. 16-158. Contributions by State and other employing
13units.
14    (a) The State shall make contributions to the System by
15means of appropriations from the Common School Fund and other
16State funds of amounts which, together with other employer
17contributions, employee contributions, investment income, and
18other income, will be sufficient to meet the cost of
19maintaining and administering the System on a 100% 90% funded
20basis in accordance with actuarial recommendations by the end
21of State fiscal year 2043.
22    The Board shall determine the amount of State contributions
23required for each fiscal year on the basis of the actuarial
24tables and other assumptions adopted by the Board and the
25recommendations of the actuary, using the formula in subsection

 

 

09800SB0001sam001- 189 -LRB098 05457 JDS 42954 a

1(b-3).
2    (a-1) Annually, on or before November 15 through until
3November 15, 2011, the Board shall certify to the Governor the
4amount of the required State contribution for the coming fiscal
5year. The certification under this subsection (a-1) shall
6include a copy of the actuarial recommendations upon which it
7is based and shall specifically identify the System's projected
8State normal cost for that fiscal year.
9    On or before May 1, 2004, the Board shall recalculate and
10recertify to the Governor the amount of the required State
11contribution to the System for State fiscal year 2005, taking
12into account the amounts appropriated to and received by the
13System under subsection (d) of Section 7.2 of the General
14Obligation Bond Act.
15    On or before July 1, 2005, the Board shall recalculate and
16recertify to the Governor the amount of the required State
17contribution to the System for State fiscal year 2006, taking
18into account the changes in required State contributions made
19by this amendatory Act of the 94th General Assembly.
20    On or before April 1, 2011, the Board shall recalculate and
21recertify to the Governor the amount of the required State
22contribution to the System for State fiscal year 2011, applying
23the changes made by Public Act 96-889 to the System's assets
24and liabilities as of June 30, 2009 as though Public Act 96-889
25was approved on that date.
26    (a-5) On or before November 1 of each year, beginning

 

 

09800SB0001sam001- 190 -LRB098 05457 JDS 42954 a

1November 1, 2012, the Board shall submit to the State Actuary,
2the Governor, and the General Assembly a proposed certification
3of the amount of the required State contribution to the System
4for the next fiscal year, along with all of the actuarial
5assumptions, calculations, and data upon which that proposed
6certification is based. On or before January 1 of each year,
7beginning January 1, 2013, the State Actuary shall issue a
8preliminary report concerning the proposed certification and
9identifying, if necessary, recommended changes in actuarial
10assumptions that the Board must consider before finalizing its
11certification of the required State contributions.
12    On or before January 15, 2013 and each January 15
13thereafter, the Board shall certify to the Governor and the
14General Assembly the amount of the required State contribution
15for the next fiscal year. The certification shall include a
16copy of the actuarial recommendations upon which it is based
17and shall specifically identify the System's projected State
18normal cost for that fiscal year. The Board's certification
19must note any deviations from the State Actuary's recommended
20changes, the reason or reasons for not following the State
21Actuary's recommended changes, and the fiscal impact of not
22following the State Actuary's recommended changes on the
23required State contribution.
24    (b) Through State fiscal year 1995, the State contributions
25shall be paid to the System in accordance with Section 18-7 of
26the School Code.

 

 

09800SB0001sam001- 191 -LRB098 05457 JDS 42954 a

1    (b-1) Beginning in State fiscal year 1996, on the 15th day
2of each month, or as soon thereafter as may be practicable, the
3Board shall submit vouchers for payment of State contributions
4to the System, in a total monthly amount of one-twelfth of the
5required annual State contribution certified under subsection
6(a-1). From the effective date of this amendatory Act of the
793rd General Assembly through June 30, 2004, the Board shall
8not submit vouchers for the remainder of fiscal year 2004 in
9excess of the fiscal year 2004 certified contribution amount
10determined under this Section after taking into consideration
11the transfer to the System under subsection (a) of Section
126z-61 of the State Finance Act. These vouchers shall be paid by
13the State Comptroller and Treasurer by warrants drawn on the
14funds appropriated to the System for that fiscal year.
15    If in any month the amount remaining unexpended from all
16other appropriations to the System for the applicable fiscal
17year (including the appropriations to the System under Section
188.12 of the State Finance Act and Section 1 of the State
19Pension Funds Continuing Appropriation Act) is less than the
20amount lawfully vouchered under this subsection, the
21difference shall be paid from the Common School Fund under the
22continuing appropriation authority provided in Section 1.1 of
23the State Pension Funds Continuing Appropriation Act.
24    (b-2) Allocations from the Common School Fund apportioned
25to school districts not coming under this System shall not be
26diminished or affected by the provisions of this Article.

 

 

09800SB0001sam001- 192 -LRB098 05457 JDS 42954 a

1    (b-3) For State fiscal years 2014 through 2043, 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 State fiscal
8year 2043. In making these determinations, the required State
9contribution shall be calculated each year as a level
10percentage of payroll over the years remaining to and including
11fiscal year 2043 and shall be determined under the projected
12unit credit actuarial cost method.
13    Beginning in State fiscal year 2044, the minimum State
14contribution for each fiscal year shall be the amount needed to
15maintain the total assets of the System at 100% of the total
16actuarial liabilities of the System.
17    For State fiscal years 2012 and 2013 through 2045, the
18minimum contribution to the System to be made by the State for
19each fiscal year shall be an amount determined by the System to
20be sufficient to bring the total assets of the System up to 90%
21of the total actuarial liabilities of the System by the end of
22State fiscal year 2045. In making these determinations, the
23required State contribution shall be calculated each year as a
24level percentage of payroll over the years remaining to and
25including fiscal year 2045 and shall be determined under the
26projected unit credit actuarial cost method.

 

 

09800SB0001sam001- 193 -LRB098 05457 JDS 42954 a

1    For State fiscal years 1996 through 2005, the State
2contribution to the System, as a percentage of the applicable
3employee payroll, shall be increased in equal annual increments
4so that by State fiscal year 2011, the State is contributing at
5the rate required under this Section; except that in the
6following specified State fiscal years, the State contribution
7to the System shall not be less than the following indicated
8percentages of the applicable employee payroll, even if the
9indicated percentage will produce a State contribution in
10excess of the amount otherwise required under this subsection
11and subsection (a), and notwithstanding any contrary
12certification made under subsection (a-1) before the effective
13date of this amendatory Act of 1998: 10.02% in FY 1999; 10.77%
14in FY 2000; 11.47% in FY 2001; 12.16% in FY 2002; 12.86% in FY
152003; and 13.56% in FY 2004.
16    Notwithstanding any other provision of this Article, the
17total required State contribution for State fiscal year 2006 is
18$534,627,700.
19    Notwithstanding any other provision of this Article, the
20total required State contribution for State fiscal year 2007 is
21$738,014,500.
22    For each of State fiscal years 2008 through 2009, the State
23contribution to the System, as a percentage of the applicable
24employee payroll, shall be increased in equal annual increments
25from the required State contribution for State fiscal year
262007, so that by State fiscal year 2011, the State is

 

 

09800SB0001sam001- 194 -LRB098 05457 JDS 42954 a

1contributing at the rate otherwise required under this Section.
2    Notwithstanding any other provision of this Article, the
3total required State contribution for State fiscal year 2010 is
4$2,089,268,000 and shall be made from the proceeds of bonds
5sold in fiscal year 2010 pursuant to Section 7.2 of the General
6Obligation Bond Act, less (i) the pro rata share of bond sale
7expenses determined by the System's share of total bond
8proceeds, (ii) any amounts received from the Common School Fund
9in fiscal year 2010, and (iii) any reduction in bond proceeds
10due to the issuance of discounted bonds, if applicable.
11    Notwithstanding any other provision of this Article, the
12total required State contribution for State fiscal year 2011 is
13the amount recertified by the System on or before April 1, 2011
14pursuant to subsection (a-1) of this Section and shall be made
15from the proceeds of bonds sold in fiscal year 2011 pursuant to
16Section 7.2 of the General Obligation Bond Act, less (i) the
17pro rata share of bond sale expenses determined by the System's
18share of total bond proceeds, (ii) any amounts received from
19the Common School Fund in fiscal year 2011, and (iii) any
20reduction in bond proceeds due to the issuance of discounted
21bonds, if applicable. This amount shall include, in addition to
22the amount certified by the System, an amount necessary to meet
23employer contributions required by the State as an employer
24under paragraph (e) of this Section, which may also be used by
25the System for contributions required by paragraph (a) of
26Section 16-127.

 

 

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1    Beginning in State fiscal year 2046, the minimum State
2contribution for each fiscal year shall be the amount needed to
3maintain the total assets of the System at 90% of the total
4actuarial liabilities of the System.
5    Amounts received by the System pursuant to Section 25 of
6the Budget Stabilization Act or Section 8.12 of the State
7Finance Act in any fiscal year do not reduce and do not
8constitute payment of any portion of the minimum State
9contribution required under this Article in that fiscal year.
10Such amounts shall not reduce, and shall not be included in the
11calculation of, the required State contributions under this
12Article in any future year until the System has reached a
13funding ratio of at least 100% 90%. A reference in this Article
14to the "required State contribution" or any substantially
15similar term does not include or apply to any amounts payable
16to the System under Section 25 of the Budget Stabilization Act.
17    Notwithstanding any other provision of this Section, the
18required State contribution for State fiscal year 2005 and for
19fiscal year 2008 and each fiscal year thereafter through State
20fiscal year 2013, as calculated under this Section and
21certified under subsection (a-1), shall not exceed an amount
22equal to (i) the amount of the required State contribution that
23would have been calculated under this Section for that fiscal
24year if the System had not received any payments under
25subsection (d) of Section 7.2 of the General Obligation Bond
26Act, minus (ii) the portion of the State's total debt service

 

 

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1payments for that fiscal year on the bonds issued in fiscal
2year 2003 for the purposes of that Section 7.2, as determined
3and certified by the Comptroller, that is the same as the
4System's portion of the total moneys distributed under
5subsection (d) of Section 7.2 of the General Obligation Bond
6Act. In determining this maximum for State fiscal years 2008
7through 2010, however, the amount referred to in item (i) shall
8be increased, as a percentage of the applicable employee
9payroll, in equal increments calculated from the sum of the
10required State contribution for State fiscal year 2007 plus the
11applicable portion of the State's total debt service payments
12for fiscal year 2007 on the bonds issued in fiscal year 2003
13for the purposes of Section 7.2 of the General Obligation Bond
14Act, so that, by State fiscal year 2011, the State is
15contributing at the rate otherwise required under this Section.
16    (c) Payment of the required State contributions and of all
17pensions, retirement annuities, death benefits, refunds, and
18other benefits granted under or assumed by this System, and all
19expenses in connection with the administration and operation
20thereof, are obligations of the State.
21    If members are paid from special trust or federal funds
22which are administered by the employing unit, whether school
23district or other unit, the employing unit shall pay to the
24System from such funds the full accruing retirement costs based
25upon that service, as determined by the System. Employer
26contributions, based on salary paid to members from federal

 

 

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1funds, may be forwarded by the distributing agency of the State
2of Illinois to the System prior to allocation, in an amount
3determined in accordance with guidelines established by such
4agency and the System.
5    (d) Effective July 1, 1986, any employer of a teacher as
6defined in paragraph (8) of Section 16-106 shall pay the
7employer's normal cost of benefits based upon the teacher's
8service, in addition to employee contributions, as determined
9by the System. Such employer contributions shall be forwarded
10monthly in accordance with guidelines established by the
11System.
12    However, with respect to benefits granted under Section
1316-133.4 or 16-133.5 to a teacher as defined in paragraph (8)
14of Section 16-106, the employer's contribution shall be 12%
15(rather than 20%) of the member's highest annual salary rate
16for each year of creditable service granted, and the employer
17shall also pay the required employee contribution on behalf of
18the teacher. For the purposes of Sections 16-133.4 and
1916-133.5, a teacher as defined in paragraph (8) of Section
2016-106 who is serving in that capacity while on leave of
21absence from another employer under this Article shall not be
22considered an employee of the employer from which the teacher
23is on leave.
24    (e) Beginning July 1, 1998, every employer of a teacher
25shall pay to the System an employer contribution computed as
26follows:

 

 

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1        (1) Beginning July 1, 1998 through June 30, 1999, the
2    employer contribution shall be equal to 0.3% of each
3    teacher's salary.
4        (2) Beginning July 1, 1999 and thereafter, the employer
5    contribution shall be equal to 0.58% of each teacher's
6    salary.
7The school district or other employing unit may pay these
8employer contributions out of any source of funding available
9for that purpose and shall forward the contributions to the
10System on the schedule established for the payment of member
11contributions.
12    These employer contributions are intended to offset a
13portion of the cost to the System of the increases in
14retirement benefits resulting from this amendatory Act of 1998.
15    Each employer of teachers is entitled to a credit against
16the contributions required under this subsection (e) with
17respect to salaries paid to teachers for the period January 1,
182002 through June 30, 2003, equal to the amount paid by that
19employer under subsection (a-5) of Section 6.6 of the State
20Employees Group Insurance Act of 1971 with respect to salaries
21paid to teachers for that period.
22    The additional 1% employee contribution required under
23Section 16-152 by this amendatory Act of 1998 is the
24responsibility of the teacher and not the teacher's employer,
25unless the employer agrees, through collective bargaining or
26otherwise, to make the contribution on behalf of the teacher.

 

 

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1    If an employer is required by a contract in effect on May
21, 1998 between the employer and an employee organization to
3pay, on behalf of all its full-time employees covered by this
4Article, all mandatory employee contributions required under
5this Article, then the employer shall be excused from paying
6the employer contribution required under this subsection (e)
7for the balance of the term of that contract. The employer and
8the employee organization shall jointly certify to the System
9the existence of the contractual requirement, in such form as
10the System may prescribe. This exclusion shall cease upon the
11termination, extension, or renewal of the contract at any time
12after May 1, 1998.
13    (f) If the amount of a teacher's salary for any school year
14used to determine final average salary exceeds the member's
15annual full-time salary rate with the same employer for the
16previous school year by more than 6%, the teacher's employer
17shall pay to the System, in addition to all other payments
18required under this Section and in accordance with guidelines
19established by the System, the present value of the increase in
20benefits resulting from the portion of the increase in salary
21that is in excess of 6%. This present value shall be computed
22by the System on the basis of the actuarial assumptions and
23tables used in the most recent actuarial valuation of the
24System that is available at the time of the computation. If a
25teacher's salary for the 2005-2006 school year is used to
26determine final average salary under this subsection (f), then

 

 

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1the changes made to this subsection (f) by Public Act 94-1057
2shall apply in calculating whether the increase in his or her
3salary is in excess of 6%. For the purposes of this Section,
4change in employment under Section 10-21.12 of the School Code
5on or after June 1, 2005 shall constitute a change in employer.
6The System may require the employer to provide any pertinent
7information or documentation. The changes made to this
8subsection (f) by this amendatory Act of the 94th General
9Assembly apply without regard to whether the teacher was in
10service on or after its effective date.
11    Whenever it determines that a payment is or may be required
12under this subsection, the System shall calculate the amount of
13the payment and bill the employer for that amount. The bill
14shall specify the calculations used to determine the amount
15due. If the employer disputes the amount of the bill, it may,
16within 30 days after receipt of the bill, apply to the System
17in writing for a recalculation. The application must specify in
18detail the grounds of the dispute and, if the employer asserts
19that the calculation is subject to subsection (g) or (h) of
20this Section, must include an affidavit setting forth and
21attesting to all facts within the employer's knowledge that are
22pertinent to the applicability of that subsection. Upon
23receiving a timely application for recalculation, the System
24shall review the application and, if appropriate, recalculate
25the amount due.
26    The employer contributions required under this subsection

 

 

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1(f) may be paid in the form of a lump sum within 90 days after
2receipt of the bill. If the employer contributions are not paid
3within 90 days after receipt of the bill, then interest will be
4charged at a rate equal to the System's annual actuarially
5assumed rate of return on investment compounded annually from
6the 91st day after receipt of the bill. Payments must be
7concluded within 3 years after the employer's receipt of the
8bill.
9    (g) This subsection (g) applies only to payments made or
10salary increases given on or after June 1, 2005 but before July
111, 2011. The changes made by Public Act 94-1057 shall not
12require the System to refund any payments received before July
1331, 2006 (the effective date of Public Act 94-1057).
14    When assessing payment for any amount due under subsection
15(f), the System shall exclude salary increases paid to teachers
16under contracts or collective bargaining agreements entered
17into, amended, or renewed before June 1, 2005.
18    When assessing payment for any amount due under subsection
19(f), the System shall exclude salary increases paid to a
20teacher at a time when the teacher is 10 or more years from
21retirement eligibility under Section 16-132 or 16-133.2.
22    When assessing payment for any amount due under subsection
23(f), the System shall exclude salary increases resulting from
24overload work, including summer school, when the school
25district has certified to the System, and the System has
26approved the certification, that (i) the overload work is for

 

 

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1the sole purpose of classroom instruction in excess of the
2standard number of classes for a full-time teacher in a school
3district during a school year and (ii) the salary increases are
4equal to or less than the rate of pay for classroom instruction
5computed on the teacher's current salary and work schedule.
6    When assessing payment for any amount due under subsection
7(f), the System shall exclude a salary increase resulting from
8a promotion (i) for which the employee is required to hold a
9certificate or supervisory endorsement issued by the State
10Teacher Certification Board that is a different certification
11or supervisory endorsement than is required for the teacher's
12previous position and (ii) to a position that has existed and
13been filled by a member for no less than one complete academic
14year and the salary increase from the promotion is an increase
15that results in an amount no greater than the lesser of the
16average salary paid for other similar positions in the district
17requiring the same certification or the amount stipulated in
18the collective bargaining agreement for a similar position
19requiring the same certification.
20    When assessing payment for any amount due under subsection
21(f), the System shall exclude any payment to the teacher from
22the State of Illinois or the State Board of Education over
23which the employer does not have discretion, notwithstanding
24that the payment is included in the computation of final
25average salary.
26    (h) When assessing payment for any amount due under

 

 

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

 

 

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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    (k) 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; 97-694, eff.
166-18-12; 97-813, eff. 7-13-12.)
 
17    (40 ILCS 5/16-158.1)  (from Ch. 108 1/2, par. 16-158.1)
18    Sec. 16-158.1. Actions to enforce payments by school
19districts and other employing units other than the State. Any
20school district or other employing unit, other than the State,
21that fails failing to transmit to the System contributions
22required of it under this Article or contributions required of
23teachers, for more than 90 days after such contributions are
24due is subject to the following: after giving notice to the
25district or other unit, the System may certify to the State

 

 

09800SB0001sam001- 205 -LRB098 05457 JDS 42954 a

1Comptroller or the Regional Superintendent of Schools the
2amounts of such delinquent payments and the State Comptroller
3or the Regional Superintendent of Schools shall deduct the
4amounts so certified or any part thereof from any State funds
5to be remitted to the school district or other employing unit
6involved and shall pay the amount so deducted to the System. If
7State funds from which such deductions may be made are not
8available, the System may proceed against the school district
9or other employing unit to recover the amounts of such
10delinquent payments in the appropriate circuit court.
11    The System may provide for an audit of the records of a
12school district or other employing unit, other than the State,
13as may be required to establish the amounts of required
14contributions. The school district or other employing unit
15shall make its records available to the System for the purpose
16of such audit. The cost of such audit shall be added to the
17amount of the delinquent payments and shall be recovered by the
18System from the school district or other employing unit at the
19same time and in the same manner as the delinquent payments are
20recovered.
21(Source: P.A. 90-448, eff. 8-16-97.)
 
22    (40 ILCS 5/16-158.2 new)
23    Sec. 16-158.2. Obligations of State; funding guarantee.
24Beginning July 1, 2013, the State shall be contractually
25obligated to contribute to the System under Section 16-158 in

 

 

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

 

 

09800SB0001sam001- 207 -LRB098 05457 JDS 42954 a

1other State-created entity. Payments on such bonded
2obligations include any statutory fund transfers or other
3prefunding mechanisms or formulas set forth, now or hereafter,
4in State law or bond indentures, into debt service funds or
5accounts of the State related to such bonded obligations,
6consistent with the payment schedules associated with such
7obligations.
 
8    (40 ILCS 5/16-203)
9    Sec. 16-203. Application and expiration of new benefit
10increases.
11    (a) As used in this Section, "new benefit increase" means
12an increase in the amount of any benefit provided under this
13Article, or an expansion of the conditions of eligibility for
14any benefit under this Article, that results from an amendment
15to this Code that takes effect after June 1, 2005 (the
16effective date of Public Act 94-4). "New benefit increase",
17however, does not include any benefit increase resulting from
18the changes made to this Article by Public Act 95-910 or this
19amendatory Act of the 98th 95th General Assembly.
20    (b) Notwithstanding any other provision of this Code or any
21subsequent amendment to this Code, every new benefit increase
22is subject to this Section and shall be deemed to be granted
23only in conformance with and contingent upon compliance with
24the provisions of this Section.
25    (c) The Public Act enacting a new benefit increase must

 

 

09800SB0001sam001- 208 -LRB098 05457 JDS 42954 a

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

 

 

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1the new benefit increase, a new benefit increase that expires
2under this Section continues to apply to persons who applied
3and qualified for the affected benefit while the new benefit
4increase was in effect and to the affected beneficiaries and
5alternate payees of such persons, but does not apply to any
6other person, including without limitation a person who
7continues in service after the expiration date and did not
8apply and qualify for the affected benefit while the new
9benefit increase was in effect.
10(Source: P.A. 94-4, eff. 6-1-05; 95-910, eff. 8-26-08.)
 
11    Section A-25. The Illinois Educational Labor Relations Act
12is amended by changing Sections 4 and 17 as follows:
 
13    (115 ILCS 5/4)  (from Ch. 48, par. 1704)
14    Sec. 4. Employer rights. Employers shall not be required to
15bargain over matters of inherent managerial policy, which shall
16include such areas of discretion or policy as the functions of
17the employer, standards of services, its overall budget, the
18organizational structure and selection of new employees and
19direction of employees. Employers, however, shall be required
20to bargain collectively with regard to policy matters directly
21affecting wages, hours and terms and conditions of employment
22as well as the impact thereon upon request by employee
23representatives, but excluding the changes, the impact of
24changes, and the implementation of the changes set forth in

 

 

09800SB0001sam001- 210 -LRB098 05457 JDS 42954 a

1this amendatory Act of the 98th General Assembly. To preserve
2the rights of employers and exclusive representatives which
3have established collective bargaining relationships or
4negotiated collective bargaining agreements prior to the
5effective date of this Act, employers shall be required to
6bargain collectively with regard to any matter concerning
7wages, hours or conditions of employment about which they have
8bargained for and agreed to in a collective bargaining
9agreement prior to the effective date of this Act, but
10excluding the changes, the impact of changes, and the
11implementation of the changes set forth in this amendatory Act
12of the 98th General Assembly.
13(Source: P.A. 83-1014.)
 
14    (115 ILCS 5/17)  (from Ch. 48, par. 1717)
15    Sec. 17. Effect on other laws. In case of any conflict
16between the provisions of this Act and any other law (other
17than the changes, the impact of changes, and the implementation
18of the changes made to the Illinois Pension Code by this
19amendatory Act of the 98th General Assembly), executive order
20or administrative regulation, the provisions of this Act shall
21prevail and control. The provisions of this Act are subject to
22the changes made by this amendatory Act of the 98th General
23Assembly. Nothing in this Act shall be construed to replace or
24diminish the rights of employees established by Section 36d of
25"An Act to create the State Universities Civil Service System",

 

 

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1approved May 11, 1905, as amended or modified.
2(Source: P.A. 83-1014.)
 
3    Section A-90. The State Mandates Act is amended by adding
4Section 8.37 as follows:
 
5    (30 ILCS 805/8.37 new)
6    Sec. 8.37. Exempt mandate. Notwithstanding Sections 6 and 8
7of this Act, no reimbursement by the State is required for the
8implementation of any mandate created by this amendatory Act of
9the 98th General Assembly.
 
10    Section A-97. Severability and inseverability. The changes
11made by this Part A to Acts other than the Illinois Pension
12Code are severable from the other changes made by this Act. The
13changes made by this Part A to an Article of the Illinois
14Pension Code are severable from the changes made by this Part A
15to another Article of the Illinois Pension Code. However, the
16changes made by this Part A in an Article of the Illinois
17Pension Code that relate to (i) automatic annual increases,
18(ii) employee or member contributions, (iii) State or employer
19contributions, (iv) State funding guarantees, or (v) salary,
20earnings, or compensation are mutually dependent and
21inseverable.
 
22
PART B

 

 

 

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1    Section B-1. The Illinois Pension Code is amended by adding
2Section 1-103.5 as follows:
 
3    (40 ILCS 5/1-103.5 new)
4    Sec. 1-103.5. Explanation of Senate Bill 1.
5    (a) Part A of Senate Bill 1 is intended by the General
6Assembly as a stand-alone reform of certain Articles of this
7Code, which takes effect upon becoming law. Part B of Senate
8Bill 1 contains alternative provisions that take effect only if
9and when a corresponding portion of Part A is determined to be
10unconstitutional or otherwise invalid or unenforceable.
11    (b) If one or more of the changes made in Part A to
12portions of a specific Article of the Illinois Pension Code
13that are designated as inseverable under Section 97 of Part A
14are determined to be unconstitutional or otherwise invalid by a
15final judgment of the Illinois Supreme Court or by a final
16unappealable judgment of the Illinois Appellate Court or a
17court of competent jurisdiction, then the invalid provisions of
18Part A and the provisions of Part A that are inseverable from
19those provisions shall be superseded by the Sections of Part B
20that take effect due to that invalidity.
 
21    Section B-5. If and only if Section B-30, B-35, B-40, or
22B-45 of this Part B takes effect, then the Illinois Public
23Labor Relations Act is amended by changing Sections 4 and 15 as

 

 

09800SB0001sam001- 213 -LRB098 05457 JDS 42954 a

1follows:
 
2    (5 ILCS 315/4)  (from Ch. 48, par. 1604)
3    Sec. 4. Management Rights. Employers shall not be required
4to bargain over matters of inherent managerial policy, which
5shall include such areas of discretion or policy as the
6functions of the employer, standards of services, its overall
7budget, the organizational structure and selection of new
8employees, examination techniques and direction of employees.
9Employers, however, shall be required to bargain collectively
10with regard to policy matters directly affecting wages (but
11subject to any applicable restrictions in Section 14-106.5,
1215-132.9, or 16-122.9 of the Illinois Pension Code), hours and
13terms and conditions of employment as well as the impact
14thereon upon request by employee representatives, but
15excluding the changes, the impact of changes, and the
16implementation of the changes set forth in this amendatory Act
17of the 98th General Assembly.
18    To preserve the rights of employers and exclusive
19representatives which have established collective bargaining
20relationships or negotiated collective bargaining agreements
21prior to the effective date of this Act, employers shall be
22required to bargain collectively with regard to any matter
23concerning wages (but subject to any applicable restrictions in
24Section 14-106.5, 15-132.9, or 16-122.9 of the Illinois Pension
25Code), hours or conditions of employment about which they have

 

 

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1bargained for and agreed to in a collective bargaining
2agreement prior to the effective date of this Act, but
3excluding the changes, the impact of changes, and the
4implementation of the changes set forth in this amendatory Act
5of the 98th General Assembly.
6    The chief judge of the judicial circuit that employs a
7public employee who is a court reporter, as defined in the
8Court Reporters Act, has the authority to hire, appoint,
9promote, evaluate, discipline, and discharge court reporters
10within that judicial circuit.
11    Nothing in this amendatory Act of the 94th General Assembly
12shall be construed to intrude upon the judicial functions of
13any court. This amendatory Act of the 94th General Assembly
14applies only to nonjudicial administrative matters relating to
15the collective bargaining rights of court reporters.
16(Source: P.A. 94-98, eff. 7-1-05.)
 
17    (5 ILCS 315/15)  (from Ch. 48, par. 1615)
18    Sec. 15. Act Takes Precedence.
19    (a) In case of any conflict between the provisions of this
20Act and any other law (other than Section 5 of the State
21Employees Group Insurance Act of 1971 and other than the
22changes made to the Illinois Pension Code by Public Act 96-889
23and the changes, impact of changes, and the implementation of
24the changes made to the Illinois Pension Code and the State
25Employees Group Insurance Act of 1971 by this amendatory Act of

 

 

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1the 98th 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 the changes made by this amendatory Act
11of the 98th General Assembly, including Sections 14-106.5,
1215-132.9, and 16-122.9 of the Illinois Pension Code, and
13Section 5 of the State Employees Group Insurance Act of 1971.
14Nothing in this Act shall be construed to replace the necessity
15of complaints against a sworn peace officer, as defined in
16Section 2(a) of the Uniform Peace Officer Disciplinary Act,
17from having a complaint supported by a sworn affidavit.
18    (b) Except as provided in subsection (a) above, any
19collective bargaining contract between a public employer and a
20labor organization executed pursuant to this Act shall
21supersede any contrary statutes, charters, ordinances, rules
22or regulations relating to wages, hours and conditions of
23employment and employment relations adopted by the public
24employer or its agents. Any collective bargaining agreement
25entered into prior to the effective date of this Act shall
26remain in full force during its duration.

 

 

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1    (c) It is the public policy of this State, pursuant to
2paragraphs (h) and (i) of Section 6 of Article VII of the
3Illinois Constitution, that the provisions of this Act are the
4exclusive exercise by the State of powers and functions which
5might otherwise be exercised by home rule units. Such powers
6and functions may not be exercised concurrently, either
7directly or indirectly, by any unit of local government,
8including any home rule unit, except as otherwise authorized by
9this Act.
10(Source: P.A. 95-331, eff. 8-21-07; 96-889, eff. 1-1-11.)
 
11    Section B-10. If and only if any of the changes made by
12Part A of this Act to provisions in Article 15 of the Illinois
13Pension Code concerning (i) automatic annual increases, (ii)
14employee or member contributions, (iii) State or employer
15contributions, (iv) State funding guarantees, or (v) salary,
16earnings, or compensation is declared to be unconstitutional or
17otherwise invalid, then the State Employees Group Insurance Act
18of 1971 is amended by changing Sections 6.9 and 6.10 and by
19adding 6.10A as follows:
 
20    (5 ILCS 375/6.9)
21    Sec. 6.9. Health benefits for community college benefit
22recipients and community college dependent beneficiaries.
23    (a) Purpose. It is the purpose of this amendatory Act of
241997 to establish a uniform program of health benefits for

 

 

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1community college benefit recipients and their dependent
2beneficiaries under the administration of the Department of
3Central Management Services.
4    (b) Creation of program. Beginning July 1, 1999, the
5Department of Central Management Services shall be responsible
6for administering a program of health benefits for community
7college benefit recipients and community college dependent
8beneficiaries under this Section. The State Universities
9Retirement System and the boards of trustees of the various
10community college districts shall cooperate with the
11Department in this endeavor.
12    (c) Eligibility. All community college benefit recipients
13and community college dependent beneficiaries shall be
14eligible to participate in the program established under this
15Section, without any interruption or delay in coverage or
16limitation as to pre-existing medical conditions. Eligibility
17to participate shall be determined by the State Universities
18Retirement System. Eligibility information shall be
19communicated to the Department of Central Management Services
20in a format acceptable to the Department.
21    (d) Coverage. The health benefit coverage provided under
22this Section shall be a program of health, dental, and vision
23benefits.
24    The program of health benefits under this Section may
25include any or all of the benefit limitations, including but
26not limited to a reduction in benefits based on eligibility for

 

 

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1federal medicare benefits, that are provided under subsection
2(a) of Section 6 of this Act for other health benefit programs
3under this Act.
4    (e) Insurance rates and premiums. The Director shall
5determine the insurance rates and premiums for community
6college benefit recipients and community college dependent
7beneficiaries. Rates and premiums may be based in part on age
8and eligibility for federal Medicare coverage. The Director
9shall also determine premiums that will allow for the
10establishment of an actuarially sound reserve for this program.
11    The cost of health benefits under the program shall be paid
12as follows:
13        (1) For a community college benefit recipient, costs
14    shall be an amount equal to the difference between the
15    projected costs of health benefits under the program and
16    projected contributions from community college districts,
17    active contributors, and other income of the program. Other
18    income of the program shall exclude contributions made by
19    the State to retire unpaid claims of the program up to 75%
20    of the total insurance rate shall be paid from the
21    Community College Health Insurance Securi