Sen. Daniel Biss

Filed: 2/27/2013

 

 


 

 


 
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1
AMENDMENT TO SENATE BILL 35

2    AMENDMENT NO. ______. Amend Senate Bill 35 by replacing
3everything after the enacting clause with the following:
 
4    "Section 3. The Illinois Public Labor Relations Act is
5amended by changing Sections 4 and 15 as follows:
 
6    (5 ILCS 315/4)  (from Ch. 48, par. 1604)
7    Sec. 4. Management Rights. Employers shall not be required
8to bargain over matters of inherent managerial policy, which
9shall include such areas of discretion or policy as the
10functions of the employer, standards of services, its overall
11budget, the organizational structure and selection of new
12employees, examination techniques and direction of employees.
13Employers, however, shall be required to bargain collectively
14with regard to policy matters directly affecting wages, hours
15and terms and conditions of employment as well as the impact
16thereon upon request by employee representatives, but

 

 

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

 

 

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1    (5 ILCS 315/15)  (from Ch. 48, par. 1615)
2    Sec. 15. Act Takes Precedence.
3    (a) In case of any conflict between the provisions of this
4Act and any other law (other than Section 5 of the State
5Employees Group Insurance Act of 1971 and other than the
6changes made to the Illinois Pension Code by Public Act 96-889
7and the changes, impact of changes, and the implementation of
8the changes made to the Illinois Pension Code by this
9amendatory Act of the 98th 96th General Assembly), executive
10order or administrative regulation relating to wages, hours and
11conditions of employment and employment relations, the
12provisions of this Act or any collective bargaining agreement
13negotiated thereunder shall prevail and control. Nothing in
14this Act shall be construed to replace or diminish the rights
15of employees established by Sections 28 and 28a of the
16Metropolitan Transit Authority Act, Sections 2.15 through 2.19
17of the Regional Transportation Authority Act. The provisions of
18this Act are subject to the changes made by this amendatory Act
19of the 98th General Assembly and Section 5 of the State
20Employees Group Insurance Act of 1971. Nothing in this Act
21shall be construed to replace the necessity of complaints
22against a sworn peace officer, as defined in Section 2(a) of
23the Uniform Peace Officer Disciplinary Act, from having a
24complaint supported by a sworn affidavit.
25    (b) Except as provided in subsection (a) above, any
26collective bargaining contract between a public employer and a

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1defined in this Act may be made only as an additional, separate
2and distinct item, specifically stating the object and purpose
3thereof.
4(Source: P.A. 84-263; 84-264.)
 
5    (30 ILCS 105/24.12 new)
6    Sec. 24.12. "State retirement contribution for annual
7normal cost" defined. The term "State retirement contribution
8for annual normal cost" means the portion of the total required
9State contribution to a retirement system for a fiscal year
10that represents the State's portion of the System's projected
11normal cost for that fiscal year, as determined and certified
12by the board of trustees of the retirement system in
13conformance with the applicable provisions of the Illinois
14Pension Code.
 
15    (30 ILCS 105/24.13 new)
16    Sec. 24.13. "State retirement contribution for unfunded
17accrued liability" defined. The term "State retirement
18contribution for unfunded accrued liability" means the portion
19of the total required State contribution to a retirement system
20for a fiscal year that is not included in the State retirement
21contribution for annual normal cost.
 
22    Section 15. The Budget Stabilization Act is amended by
23changing Sections 20 and 25 as follows:
 

 

 

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1    (30 ILCS 122/20)
2    Sec. 20. Pension Stabilization Fund.
3    (a) The Pension Stabilization Fund is hereby created as a
4special fund in the State treasury. Moneys in the fund shall be
5used for the sole purpose of making payments to the designated
6retirement systems as provided in Section 25.
7    (b) For each fiscal year when the General Assembly's
8appropriations and transfers or diversions as required by law
9from general funds do not exceed 99% of the estimated general
10funds revenues pursuant to subsection (a) of Section 10, the
11Comptroller shall transfer from the General Revenue Fund as
12provided by this Section a total amount equal to 0.5% of the
13estimated general funds revenues to the Pension Stabilization
14Fund.
15    (c) For each fiscal year through State fiscal year 2013,
16when the General Assembly's appropriations and transfers or
17diversions as required by law from general funds do not exceed
1898% of the estimated general funds revenues pursuant to
19subsection (b) of Section 10, the Comptroller shall transfer
20from the General Revenue Fund as provided by this Section a
21total amount equal to 1.0% of the estimated general funds
22revenues to the Pension Stabilization Fund.
23    (c-10) In State fiscal year 2020 and each fiscal year
24thereafter, the State Comptroller shall order transferred and
25the State Treasurer shall transfer $1,000,000,000 from the

 

 

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

 

 

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

 

 

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1most recently determined by the Governor's Office of Management
2and Budget. Amounts received by a designated retirement system
3under this Section shall be used for funding the unfunded
4liabilities of the retirement system. Payments under this
5Section are authorized by the continuing appropriation under
6Section 1.7 of the State Pension Funds Continuing Appropriation
7Act.
8    (c) At the request of the State Comptroller, the Governor's
9Office of Management and Budget shall determine the individual
10and total actuarial reserve deficiencies of the designated
11retirement systems. For this purpose, the Governor's Office of
12Management and Budget shall consider the latest available audit
13and actuarial reports of each of the retirement systems and the
14relevant reports and statistics of the Public Pension Division
15of the Department of Financial and Professional Regulation.
16    (d) Payments to the designated retirement systems under
17this Section shall be in addition to, and not in lieu of, any
18State contributions required under Section 2-124, 14-131,
1915-155, 16-158, or 18-131 of the Illinois Pension Code.
20    Payments to the designated retirement systems under this
21Section, transferred after the effective date of this
22amendatory Act of the 98th General Assembly, do not reduce and
23do not constitute payment of any portion of the required State
24contribution under Article 2, 14, 15, 16, or 18 of the Illinois
25Pension Code in that fiscal year. Such amounts shall not
26reduce, and shall not be included in the calculation of, the

 

 

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1required State contribution under Article 2, 14, 15, 16, or 18
2of the Illinois Pension Code in any future year, until the
3designated retirement system has received payment of
4contributions pursuant to this Act.
5(Source: P.A. 94-839, eff. 6-6-06.)
 
6    Section 20. The Illinois Pension Code is amended by
7changing Sections 1-103.3, 1-160, 2-108, 2-119, 2-119.1,
82-121.1, 2-124, 2-125, 2-126, 2-134, 2-162, 14-103.10, 14-107,
914-108, 14-110, 14-114, 14-131, 14-132, 14-133, 14-135.08,
1014-152.1, 15-111, 15-113.6, 15-113.7, 15-135, 15-136, 15-139,
1115-153.2, 15-155, 15-156, 15-157, 15-165, 15-198, 16-121,
1216-132, 16-133, 16-133.1, 16-152, 16-158, 16-158.1, 16-203,
1320-121, 20-123, 20-124, and 20-125 and by adding Sections
142-105.1, 2-105.2, 14-103.40, 14-103.41, 15-103.4, 15-107.1,
1515-107.2, 15-107.3, 15-155.1, 15-158.5, 16-106.4, 16-106.5,
1616-106.6, 16-152.8, and 16-158.2 as follows:
 
17    (40 ILCS 5/1-103.3)
18    Sec. 1-103.3. Application of 1994 amendment; funding
19standard.
20    (a) The provisions of Public Act 88-593 this amendatory Act
21of 1994 that change the method of calculating, certifying, and
22paying the required State contributions to the retirement
23systems established under Articles 2, 14, 15, 16, and 18 shall
24first apply to the State contributions required for State

 

 

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

 

 

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1fund established under this Code, other than a retirement
2system or pension fund established under Article 2, 3, 4, 5, 6,
3or 18 of this Code, notwithstanding any other provision of this
4Code to the contrary, but do not apply (i) to any self-managed
5plan established under this Code, (ii) to any person with
6respect to service as a sheriff's law enforcement employee
7under Article 7, (iii) or to any participant of the retirement
8plan established under Section 22-101, or (iv) to any person
9who first becomes, on or after January 1, 2014, a Tier 3
10employee in a retirement system established under Article 15 or
1116 of this Code.
12    (b) "Final average salary" means the average monthly (or
13annual) salary obtained by dividing the total salary or
14earnings calculated under the Article applicable to the member
15or participant during the 96 consecutive months (or 8
16consecutive years) of service within the last 120 months (or 10
17years) of service in which the total salary or earnings
18calculated under the applicable Article was the highest by the
19number of months (or years) of service in that period. For the
20purposes of a person who first becomes a member or participant
21of any retirement system or pension fund to which this Section
22applies on or after January 1, 2011, in this Code, "final
23average salary" shall be substituted for the following:
24        (1) In Articles 7 (except for service as sheriff's law
25    enforcement employees) and 15, "final rate of earnings".
26        (2) In Articles 8, 9, 10, 11, and 12, "highest average

 

 

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1    annual salary for any 4 consecutive years within the last
2    10 years of service immediately preceding the date of
3    withdrawal".
4        (3) In Article 13, "average final salary".
5        (4) In Article 14, "final average compensation".
6        (5) In Article 17, "average salary".
7        (6) In Section 22-207, "wages or salary received by him
8    at the date of retirement or discharge".
9    (b-5) Beginning on January 1, 2011, for all purposes under
10this Code (including without limitation the calculation of
11benefits and employee contributions), the annual earnings,
12salary, or wages (based on the plan year) of a member or
13participant to whom this Section applies shall not exceed
14$106,800; however, that amount shall annually thereafter be
15increased by the lesser of (i) 3% of that amount, including all
16previous adjustments, or (ii) one-half the annual unadjusted
17percentage increase (but not less than zero) in the consumer
18price index-u for the 12 months ending with the September
19preceding each November 1, including all previous adjustments.
20    For the purposes of this Section, "consumer price index-u"
21means the index published by the Bureau of Labor Statistics of
22the United States Department of Labor that measures the average
23change in prices of goods and services purchased by all urban
24consumers, United States city average, all items, 1982-84 =
25100. The new amount resulting from each annual adjustment shall
26be determined by the Public Pension Division of the Department

 

 

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1of Insurance and made available to the boards of the retirement
2systems and pension funds by November 1 of each year.
3    (c) A member or participant is entitled to a retirement
4annuity upon written application if he or she has attained age
567 and has at least 10 years of service credit and is otherwise
6eligible under the requirements of the applicable Article.
7    A member or participant who has attained age 62 and has at
8least 10 years of service credit and is otherwise eligible
9under the requirements of the applicable Article may elect to
10receive the lower retirement annuity provided in subsection (d)
11of this Section.
12    (d) The retirement annuity of a member or participant who
13is retiring after attaining age 62 with at least 10 years of
14service credit shall be reduced by one-half of 1% for each full
15month that the member's age is under age 67.
16    (e) Any retirement annuity or supplemental annuity shall be
17subject to annual increases on the January 1 occurring either
18on or after the attainment of age 67 or the first anniversary
19of the annuity start date, whichever is later. Each annual
20increase shall be calculated at 3% or one-half the annual
21unadjusted percentage increase (but not less than zero) in the
22consumer price index-u for the 12 months ending with the
23September preceding each November 1, whichever is less, of the
24originally granted retirement annuity. If the annual
25unadjusted percentage change in the consumer price index-u for
26the 12 months ending with the September preceding each November

 

 

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11 is zero or there is a decrease, then the annuity shall not be
2increased.
3    (f) The initial survivor's or widow's annuity of an
4otherwise eligible survivor or widow of a retired member or
5participant who first became a member or participant on or
6after January 1, 2011 shall be in the amount of 66 2/3% of the
7retired member's or participant's retirement annuity at the
8date of death. In the case of the death of a member or
9participant who has not retired and who first became a member
10or participant on or after January 1, 2011, eligibility for a
11survivor's or widow's annuity shall be determined by the
12applicable Article of this Code. The initial benefit shall be
1366 2/3% of the earned annuity without a reduction due to age. A
14child's annuity of an otherwise eligible child shall be in the
15amount prescribed under each Article if applicable. Any
16survivor's or widow's annuity shall be increased (1) on each
17January 1 occurring on or after the commencement of the annuity
18if the deceased member died while receiving a retirement
19annuity or (2) in other cases, on each January 1 occurring
20after the first anniversary of the commencement of the annuity.
21Each annual increase shall be calculated at 3% or one-half the
22annual unadjusted percentage increase (but not less than zero)
23in the consumer price index-u for the 12 months ending with the
24September preceding each November 1, whichever is less, of the
25originally granted survivor's annuity. If the annual
26unadjusted percentage change in the consumer price index-u for

 

 

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1the 12 months ending with the September preceding each November
21 is zero or there is a decrease, then the annuity shall not be
3increased.
4    (g) The benefits in Section 14-110 apply only if the person
5is a State policeman, a fire fighter in the fire protection
6service of a department, or a security employee of the
7Department of Corrections or the Department of Juvenile
8Justice, as those terms are defined in subsection (b) of
9Section 14-110. A person who meets the requirements of this
10Section is entitled to an annuity calculated under the
11provisions of Section 14-110, in lieu of the regular or minimum
12retirement annuity, only if the person has withdrawn from
13service with not less than 20 years of eligible creditable
14service and has attained age 60, regardless of whether the
15attainment of age 60 occurs while the person is still in
16service.
17    (h) If a person who first becomes a member or a participant
18of a retirement system or pension fund subject to this Section
19on or after January 1, 2011 is receiving a retirement annuity
20or retirement pension under that system or fund and becomes a
21member or participant under any other system or fund created by
22this Code and is employed on a full-time basis, except for
23those members or participants exempted from the provisions of
24this Section under subsection (a) of this Section, then the
25person's retirement annuity or retirement pension under that
26system or fund shall be suspended during that employment. Upon

 

 

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1termination of that employment, the person's retirement
2annuity or retirement pension payments shall resume and be
3recalculated if recalculation is provided for under the
4applicable Article of this Code.
5    If a person who first becomes a member of a retirement
6system or pension fund subject to this Section on or after
7January 1, 2012 and is receiving a retirement annuity or
8retirement pension under that system or fund and accepts on a
9contractual basis a position to provide services to a
10governmental entity from which he or she has retired, then that
11person's annuity or retirement pension earned as an active
12employee of the employer shall be suspended during that
13contractual service. A person receiving an annuity or
14retirement pension under this Code shall notify the pension
15fund or retirement system from which he or she is receiving an
16annuity or retirement pension, as well as his or her
17contractual employer, of his or her retirement status before
18accepting contractual employment. A person who fails to submit
19such notification shall be guilty of a Class A misdemeanor and
20required to pay a fine of $1,000. Upon termination of that
21contractual employment, the person's retirement annuity or
22retirement pension payments shall resume and, if appropriate,
23be recalculated under the applicable provisions of this Code.
24    (i) Notwithstanding any other provision of this Section, a
25person who first becomes a participant of the retirement system
26established under Article 15 on or after January 1, 2011 shall

 

 

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1have the option to enroll in the self-managed plan created
2under Section 15-158.2 of this Code.
3    (j) In the case of a conflict between the provisions of
4this Section and any other provision of this Code, the
5provisions of this Section shall control.
6(Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11;
797-609, eff. 1-1-12.)
 
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 5/2-108)  (from Ch. 108 1/2, par. 2-108)
17    Sec. 2-108. Salary. "Salary": (1) For members of the
18General Assembly, the total compensation paid to the member by
19the State for one year of service, including the additional
20amounts, if any, paid to the member as an officer pursuant to
21Section 1 of "An Act in relation to the compensation and
22emoluments of the members of the General Assembly", approved
23December 6, 1907, as now or hereafter amended.

 

 

09800SB0035sam001- 22 -LRB098 05472 EFG 41210 a

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

 

 

09800SB0035sam001- 23 -LRB098 05472 EFG 41210 a

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

 

 

09800SB0035sam001- 24 -LRB098 05472 EFG 41210 a

1        For a participant who first becomes a participant of
2    this System on or after January 1, 2011 (the effective date
3    of Public Act 96-889), he or she has attained age 67 and
4    has at least 8 years of service credit.
5    (a-5) Notwithstanding subsection (a) of this Section, for a
6Tier I participant who begins receiving a retirement annuity
7under this Section after July 1, 2013:
8        (1) If the Tier I participant is at least 45 years old
9    on the effective date of this amendatory Act of the 98th
10    General Assembly, then the references to age 55 and 62 in
11    subsection (a) of this Section remain unchanged.
12        (2) If the Tier I participant is at least 40 but less
13    than 45 years old on the effective date of this amendatory
14    Act of the 98th General Assembly, then the references to
15    age 55 and 62 in subsection (a) of this Section are
16    increased by one year.
17        (3) If the Tier I participant is at least 35 but less
18    than 40 years old on the effective date of this amendatory
19    Act of the 98th General Assembly, then the references to
20    age 55 and 62 in subsection (a) of this Section are
21    increased by 3 years.
22        (4) If the Tier I participant is less than 35 years old
23    on the effective date of this amendatory Act of the 98th
24    General Assembly, then the references to age 55 and 62 in
25    subsection (a) of this Section are increased by 5 years.
26    Notwithstanding Section 1-103.1, this subsection (a-5)

 

 

09800SB0035sam001- 25 -LRB098 05472 EFG 41210 a

1applies without regard to whether or not the Tier I member is
2in active service under this Article on or after the effective
3date of this amendatory Act of the 98th General Assembly.
4    (a-5) A participant who first becomes a participant of this
5System on or after January 1, 2011 (the effective date of
6Public Act 96-889) who has attained age 62 and has at least 8
7years of service credit may elect to receive the lower
8retirement annuity provided in paragraph (c) of Section
92-119.01 of this Code.
10    (b) A participant shall be considered permanently disabled
11only if: (1) disability occurs while in service and is of such
12a nature as to prevent him or her from reasonably performing
13the duties of his or her office at the time; and (2) the board
14has received a written certificate by at least 2 licensed
15physicians appointed by the board stating that the member is
16disabled and that the disability is likely to be permanent.
17(Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11.)
 
18    (40 ILCS 5/2-119.1)  (from Ch. 108 1/2, par. 2-119.1)
19    Sec. 2-119.1. Automatic increase in retirement annuity.
20    (a) Except as provided in subsections (a-1) and (a-2), a A
21participant who retires after June 30, 1967, and who has not
22received an initial increase under this Section before the
23effective date of this amendatory Act of 1991, shall, in
24January or July next following the first anniversary of
25retirement, whichever occurs first, and in the same month of

 

 

09800SB0035sam001- 26 -LRB098 05472 EFG 41210 a

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

 

 

09800SB0035sam001- 27 -LRB098 05472 EFG 41210 a

1granted until the Tier I retiree meets the new eligibility
2requirements.
3    (a-3) Notwithstanding Section 1-103.1, subsections (a-1)
4and (a-2) apply without regard to whether or not the Tier I
5retiree is in active service under this Article on or after the
6effective date of this amendatory Act of the 98th General
7Assembly.
8    (b) Beginning January 1, 1990, for eligible participants
9who remain in service after attaining 20 years of creditable
10service, the 3% increases provided under subsection (a) shall
11begin to accrue on the January 1 next following the date upon
12which the participant (1) attains age 55, or (2) attains 20
13years of creditable service, whichever occurs later, and shall
14continue to accrue while the participant remains in service;
15such increases shall become payable on January 1 or July 1,
16whichever occurs first, next following the first anniversary of
17retirement. For any person who has service credit in the System
18for the entire period from January 15, 1969 through December
1931, 1992, regardless of the date of termination of service, the
20reference to age 55 in clause (1) of this subsection (b) shall
21be deemed to mean age 50.
22    This subsection (b) does not apply to any person who first
23becomes a member of the System after August 8, 2003 (the
24effective date of Public Act 93-494) this amendatory Act of the
2593rd General Assembly.
26    (b-5) Notwithstanding any other provision of this Article,

 

 

09800SB0035sam001- 28 -LRB098 05472 EFG 41210 a

1a participant who first becomes a participant on or after
2January 1, 2011 (the effective date of Public Act 96-889)
3shall, in January or July next following the first anniversary
4of retirement, whichever occurs first, and in the same month of
5each year thereafter, but in no event prior to age 67, have the
6amount of the originally granted retirement annuity then being
7paid increased by 3% or one-half the annual unadjusted
8percentage increase in the Consumer Price Index for All Urban
9Consumers as determined by the Public Pension Division of the
10Department of Insurance under subsection (a) of Section
112-108.1, whichever is less. The changes made to this subsection
12by this amendatory Act of the 98th General Assembly do not
13apply to any automatic annual increase granted under this
14subsection before the effective date of this amendatory Act.
15    (c) The foregoing provisions relating to automatic
16increases are not applicable to a participant who retires
17before having made contributions (at the rate prescribed in
18Section 2-126) for automatic increases for less than the
19equivalent of one full year. However, in order to be eligible
20for the automatic increases, such a participant may make
21arrangements to pay to the system the amount required to bring
22the total contributions for the automatic increase to the
23equivalent of one year's contributions based upon his or her
24last salary.
25    (d) A participant who terminated service prior to July 1,
261967, with at least 14 years of service is entitled to an

 

 

09800SB0035sam001- 29 -LRB098 05472 EFG 41210 a

1increase in retirement annuity beginning January, 1976, and to
2additional increases in January of each year thereafter.
3    The initial increase shall be 1 1/2% of the originally
4granted retirement annuity multiplied by the number of full
5years that the annuitant was in receipt of such annuity prior
6to January 1, 1972, plus 2% of the originally granted
7retirement annuity for each year after that date. The
8subsequent annual increases shall be at the rate of 2% of the
9originally granted retirement annuity for each year through
101979 and at the rate of 3% for 1980 and thereafter.
11    (e) Beginning January 1, 1990, all automatic annual
12increases payable under this Section shall be calculated as a
13percentage of the total annuity payable at the time of the
14increase, including previous increases granted under this
15Article.
16(Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11.)
 
17    (40 ILCS 5/2-121.1)  (from Ch. 108 1/2, par. 2-121.1)
18    Sec. 2-121.1. Survivor's annuity - amount.
19    (a) A surviving spouse shall be entitled to 66 2/3% of the
20amount of retirement annuity to which the participant or
21annuitant was entitled on the date of death, without regard to
22whether the participant had attained age 55 prior to his or her
23death, subject to a minimum payment of 10% of salary. If a
24surviving spouse, regardless of age, has in his or her care at
25the date of death any eligible child or children of the

 

 

09800SB0035sam001- 30 -LRB098 05472 EFG 41210 a

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

 

 

09800SB0035sam001- 31 -LRB098 05472 EFG 41210 a

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

 

 

09800SB0035sam001- 32 -LRB098 05472 EFG 41210 a

1(the effective date of Public Act 96-889) shall be in the
2amount of 66 2/3% of the amount of the retirement annuity to
3which the participant or annuitant was entitled on the date of
4death and shall be increased (1) on each January 1 occurring on
5or after the commencement of the annuity if the deceased member
6died while receiving a retirement annuity or (2) in other
7cases, on each January 1 occurring on or after the first
8anniversary of the commencement of the annuity, by an amount
9equal to 3% or one-half the annual unadjusted percentage
10increase in the Consumer Price Index for All Urban Consumers as
11determined by the Public Pension Division of the Department of
12Insurance under subsection (a) of Section 2-108.1, whichever is
13less, of the originally granted survivor's annuity then being
14paid. The changes made to this subsection by this amendatory
15Act of the 98th General Assembly do not apply to any automatic
16annual increase granted under this subsection before the
17effective date of this amendatory Act.
18    (e) Notwithstanding any other provision of this Article,
19beginning January 1, 1990, the minimum survivor's annuity
20payable to any person who is entitled to receive a survivor's
21annuity under this Article shall be $300 per month, without
22regard to whether or not the deceased participant was in
23service on the effective date of this amendatory Act of 1989.
24    (f) In the case of a proportional survivor's annuity
25arising under the Retirement Systems Reciprocal Act where the
26amount payable by the System on January 1, 1993 is less than

 

 

09800SB0035sam001- 33 -LRB098 05472 EFG 41210 a

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

 

 

09800SB0035sam001- 34 -LRB098 05472 EFG 41210 a

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

 

 

09800SB0035sam001- 35 -LRB098 05472 EFG 41210 a

1    For each of State fiscal years 2008 through 2009, the State
2contribution to the System, as a percentage of the applicable
3employee payroll, shall be increased in equal annual increments
4from the required State contribution for State fiscal year
52007, so that by State fiscal year 2011, the State is
6contributing at the rate otherwise required under this Section.
7    Notwithstanding any other provision of this Article, the
8total required State contribution for State fiscal year 2010 is
9$10,454,000 and shall be made from the proceeds of bonds sold
10in fiscal year 2010 pursuant to Section 7.2 of the General
11Obligation Bond Act, less (i) the pro rata share of bond sale
12expenses determined by the System's share of total bond
13proceeds, (ii) any amounts received from the General Revenue
14Fund in fiscal year 2010, and (iii) any reduction in bond
15proceeds due to the issuance of discounted bonds, if
16applicable.
17    Notwithstanding any other provision of this Article, the
18total required State contribution for State fiscal year 2011 is
19the amount recertified by the System on or before April 1, 2011
20pursuant to Section 2-134 and shall be made from the proceeds
21of bonds sold in fiscal year 2011 pursuant to Section 7.2 of
22the General Obligation Bond Act, less (i) the pro rata share of
23bond sale expenses determined by the System's share of total
24bond proceeds, (ii) any amounts received from the General
25Revenue Fund in fiscal year 2011, and (iii) any reduction in
26bond proceeds due to the issuance of discounted bonds, if

 

 

09800SB0035sam001- 36 -LRB098 05472 EFG 41210 a

1applicable.
2    Beginning in State fiscal year 2044, the minimum State
3contribution for each fiscal year shall be the amount needed to
4maintain the total assets of the System at 100% of the total
5actuarial liabilities of the System.
6    Beginning in State fiscal year 2046, the minimum State
7contribution for each fiscal year shall be the amount needed to
8maintain the total assets of the System at 90% of the total
9actuarial liabilities of the System.
10    Amounts received by the System pursuant to Section 25 of
11the Budget Stabilization Act or Section 8.12 of the State
12Finance Act in any fiscal year do not reduce and do not
13constitute payment of any portion of the minimum State
14contribution required under this Article in that fiscal year.
15Such amounts shall not reduce, and shall not be included in the
16calculation of, the required State contributions under this
17Article in any future year until the System has reached a
18funding ratio of at least 100% 90%. A reference in this Article
19to the "required State contribution" or any substantially
20similar term does not include or apply to any amounts payable
21to the System under Section 25 of the Budget Stabilization Act.
22    Notwithstanding any other provision of this Section, the
23required State contribution for State fiscal year 2005 and for
24fiscal year 2008 and each fiscal year thereafter through State
25fiscal year 2013, as calculated under this Section and
26certified under Section 2-134, shall not exceed an amount equal

 

 

09800SB0035sam001- 37 -LRB098 05472 EFG 41210 a

1to (i) the amount of the required State contribution that would
2have been calculated under this Section for that fiscal year if
3the System had not received any payments under subsection (d)
4of Section 7.2 of the General Obligation Bond Act, minus (ii)
5the portion of the State's total debt service payments for that
6fiscal year on the bonds issued in fiscal year 2003 for the
7purposes of that Section 7.2, as determined and certified by
8the Comptroller, that is the same as the System's portion of
9the total moneys distributed under subsection (d) of Section
107.2 of the General Obligation Bond Act. In determining this
11maximum for State fiscal years 2008 through 2010, however, the
12amount referred to in item (i) shall be increased, as a
13percentage of the applicable employee payroll, in equal
14increments calculated from the sum of the required State
15contribution for State fiscal year 2007 plus the applicable
16portion of the State's total debt service payments for fiscal
17year 2007 on the bonds issued in fiscal year 2003 for the
18purposes of Section 7.2 of the General Obligation Bond Act, so
19that, by State fiscal year 2011, the State is contributing at
20the rate otherwise required under this Section.
21    (d) For purposes of determining the required State
22contribution to the System, the value of the System's assets
23shall be equal to the actuarial value of the System's assets,
24which shall be calculated as follows:
25    As of June 30, 2008, the actuarial value of the System's
26assets shall be equal to the market value of the assets as of

 

 

09800SB0035sam001- 38 -LRB098 05472 EFG 41210 a

1that date. In determining the actuarial value of the System's
2assets for fiscal years after June 30, 2008, any actuarial
3gains or losses from investment return incurred in a fiscal
4year shall be recognized in equal annual amounts over the
55-year period following that fiscal year.
6    (e) For purposes of determining the required State
7contribution to the system for a particular year, the actuarial
8value of assets shall be assumed to earn a rate of return equal
9to the system's actuarially assumed rate of return.
10(Source: P.A. 96-43, eff. 7-15-09; 96-1497, eff. 1-14-11;
1196-1511, eff. 1-27-11; 96-1554, eff. 3-18-11; 97-813, eff.
127-13-12.)
 
13    (40 ILCS 5/2-125)  (from Ch. 108 1/2, par. 2-125)
14    Sec. 2-125. Obligations of State; funding guarantee.
15    (a) The payment of (1) the required State contributions,
16(2) all benefits granted under this system and (3) all expenses
17of administration and operation are obligations of the State to
18the extent specified in this Article.
19    (b) All income, interest and dividends derived from
20deposits and investments shall be credited to the account of
21the system in the State Treasury and used to pay benefits under
22this Article.
23    (c) Beginning July 1, 2013, the State shall be
24contractually obligated to contribute to the System under
25Section 2-124 in each State fiscal year an amount not less than

 

 

09800SB0035sam001- 39 -LRB098 05472 EFG 41210 a

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

 

 

09800SB0035sam001- 40 -LRB098 05472 EFG 41210 a

1obligations include any statutory fund transfers or other
2prefunding mechanisms or formulas set forth, now or hereafter,
3in State law or bond indentures, into debt service funds or
4accounts of the State related to such bonded obligations,
5consistent with the payment schedules associated with such
6obligations.
7(Source: P.A. 83-1440.)
 
8    (40 ILCS 5/2-126)  (from Ch. 108 1/2, par. 2-126)
9    Sec. 2-126. Contributions by participants.
10    (a) Each participant shall contribute toward the cost of
11his or her retirement annuity a percentage of each payment of
12salary received by him or her for service as a member as
13follows: for service between October 31, 1947 and January 1,
141959, 5%; for service between January 1, 1959 and June 30,
151969, 6%; for service between July 1, 1969 and January 10,
161973, 6 1/2%; for service after January 10, 1973, 7%; for
17service after December 31, 1981, 8 1/2%.
18    (a-5) In addition to the contributions otherwise required
19under this Article, each Tier I participant shall also make the
20following contributions toward the cost of his or her
21retirement annuity from each payment of salary received by him
22or her for service as a member:
23        (1) beginning July 1, 2013 and through June 30, 2014,
24    1% of salary; and
25        (2) beginning on July 1, 2014, 2% of salary.

 

 

09800SB0035sam001- 41 -LRB098 05472 EFG 41210 a

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

 

 

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187th General Assembly but cannot receive the additional payment
2to officers because of the ban on increases in salary during
3their terms may nonetheless make contributions based on those
4additional payments for the purpose of having the additional
5payments included in their highest salary for annuity purposes;
6however, persons electing to make these additional
7contributions must also pay an amount representing the
8corresponding employer contributions, as calculated by the
9System.
10    (e) Notwithstanding any other provision of this Article,
11the required contribution of a participant who first becomes a
12participant on or after January 1, 2011 shall not exceed the
13contribution that would be due under this Article if that
14participant's highest salary for annuity purposes were
15$106,800, plus any increases in that amount under Section
162-108.1.
17(Source: P.A. 96-1490, eff. 1-1-11.)
 
18    (40 ILCS 5/2-134)   (from Ch. 108 1/2, par. 2-134)
19    Sec. 2-134. To certify required State contributions and
20submit vouchers.
21    (a) The Board shall certify to the Governor on or before
22December 15 of each year through until December 15, 2011 the
23amount of the required State contribution to the System for the
24next fiscal year and shall specifically identify the System's
25projected State normal cost for that fiscal year. The

 

 

09800SB0035sam001- 43 -LRB098 05472 EFG 41210 a

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

 

 

09800SB0035sam001- 44 -LRB098 05472 EFG 41210 a

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

 

 

09800SB0035sam001- 45 -LRB098 05472 EFG 41210 a

1submit vouchers for the remainder of fiscal year 2004 in excess
2of the fiscal year 2004 certified contribution amount
3determined under this Section after taking into consideration
4the transfer to the System under subsection (d) of Section
56z-61 of the State Finance Act. These vouchers shall be paid by
6the State Comptroller and Treasurer by warrants drawn on the
7funds appropriated to the System for that fiscal year. If in
8any month the amount remaining unexpended from all other
9appropriations to the System for the applicable fiscal year
10(including the appropriations to the System under Section 8.12
11of the State Finance Act and Section 1 of the State Pension
12Funds Continuing Appropriation Act) is less than the amount
13lawfully vouchered under this Section, the difference shall be
14paid from the General Revenue Fund under the continuing
15appropriation authority provided in Section 1.1 of the State
16Pension Funds Continuing Appropriation Act.
17    (c) The full amount of any annual appropriation for the
18System for State fiscal year 1995 shall be transferred and made
19available to the System at the beginning of that fiscal year at
20the request of the Board. Any excess funds remaining at the end
21of any fiscal year from appropriations shall be retained by the
22System as a general reserve to meet the System's accrued
23liabilities.
24(Source: P.A. 96-1497, eff. 1-14-11; 96-1511, eff. 1-27-11;
2597-694, eff. 6-18-12.)
 

 

 

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1    (40 ILCS 5/2-162)
2    Sec. 2-162. Application and expiration of new benefit
3increases.
4    (a) As used in this Section, "new benefit increase" means
5an increase in the amount of any benefit provided under this
6Article, or an expansion of the conditions of eligibility for
7any benefit under this Article, that results from an amendment
8to this Code that takes effect after the effective date of this
9amendatory Act of the 94th General Assembly. "New benefit
10increase", however, does not include any benefit increase
11resulting from the changes made to this Article by this
12amendatory Act of the 98th General Assembly.
13    (b) Notwithstanding any other provision of this Code or any
14subsequent amendment to this Code, every new benefit increase
15is subject to this Section and shall be deemed to be granted
16only in conformance with and contingent upon compliance with
17the provisions of this Section.
18    (c) The Public Act enacting a new benefit increase must
19identify and provide for payment to the System of additional
20funding at least sufficient to fund the resulting annual
21increase in cost to the System as it accrues.
22    Every new benefit increase is contingent upon the General
23Assembly providing the additional funding required under this
24subsection. The Commission on Government Forecasting and
25Accountability shall analyze whether adequate additional
26funding has been provided for the new benefit increase and

 

 

09800SB0035sam001- 47 -LRB098 05472 EFG 41210 a

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

 

 

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

 

 

09800SB0035sam001- 49 -LRB098 05472 EFG 41210 a

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

 

 

09800SB0035sam001- 50 -LRB098 05472 EFG 41210 a

1compensation of a Tier I member for the purposes of this Code
2shall not exceed, for periods of service on or after the
3effective date of this amendatory Act of the 98th General
4Assembly, the greater of (i) the annual contribution and
5benefit base established for the applicable year by the
6Commissioner of Social Security under the federal Social
7Security Act or (ii) the annual compensation of the member
8during the 365 days immediately preceding that effective date;
9except that this limitation does not apply to a member's
10compensation that is determined under an employment contract or
11collective bargaining agreement that is in effect on the
12effective date of this amendatory Act of the 98th General
13Assembly and has not been amended or renewed after that date.
14(Source: P.A. 96-1490, eff. 1-1-11.)
 
15    (40 ILCS 5/14-103.40 new)
16    Sec. 14-103.40. Tier I member. "Tier I member": A member of
17this System who first became a member or participant before
18January 1, 2011 under any reciprocal retirement system or
19pension fund established under this Code other than a
20retirement system or pension fund established under Article 2,
213, 4, 5, 6, or 18 of this Code.
 
22    (40 ILCS 5/14-103.41 new)
23    Sec. 14-103.41. Tier I retiree. "Tier I retiree": A former
24Tier I member who is receiving a retirement annuity.
 

 

 

09800SB0035sam001- 51 -LRB098 05472 EFG 41210 a

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

 

 

09800SB0035sam001- 52 -LRB098 05472 EFG 41210 a

1    references to 85 in subsection (b) of this Section remain
2    unchanged.
3        (2) If the Tier I member is at least 40 but less than
4    45 years old on the effective date of this amendatory Act
5    of the 98th General Assembly, then the references to age 55
6    and 60 in subsection (b) of this Section are increased by
7    one year and the references to 85 in subsection (b) are
8    increased to 87.
9        (3) If the Tier I member is at least 35 but less than
10    40 years old on the effective date of this amendatory Act
11    of the 98th General Assembly, then the references to age 55
12    and 60 in subsection (b) of this Section are increased by 3
13    years and the references to 85 in subsection (b) are
14    increased to 91.
15        (4) If the Tier I member is less than 35 years old on
16    the effective date of this amendatory Act of the 98th
17    General Assembly, then the references to age 55 and 60 in
18    subsection (b) of this Section are increased by 5 years and
19    the references to 85 in subsection (b) are increased to 95.
20    Notwithstanding Section 1-103.1, this subsection (c)
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    (d) The allowance shall begin with the first full calendar
25month specified in the member's application therefor, the first
26day of which shall not be before the date of withdrawal as

 

 

09800SB0035sam001- 53 -LRB098 05472 EFG 41210 a

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

 

 

09800SB0035sam001- 54 -LRB098 05472 EFG 41210 a

11, 1998 and is a noncovered employee, the retirement annuity
2for membership service and prior service shall be 2.2% of final
3average compensation for each year of service. Any service
4credit established as a covered employee shall be computed as
5stated in paragraph (b).
6    (b) In the case of a member who retires on or after January
71, 1998 and is a covered employee, the retirement annuity for
8membership service and prior service shall be computed as
9stated in paragraph (a) for all service credit established as a
10noncovered employee; for service credit established as a
11covered employee it shall be 1.67% of final average
12compensation for each year of service.
13    (c) For a member retiring after attaining age 55 but before
14age 60 with at least 30 but less than 35 years of creditable
15service if retirement is before January 1, 2001, or with at
16least 25 but less than 30 years of creditable service if
17retirement is on or after January 1, 2001, the retirement
18annuity shall be reduced by 1/2 of 1% for each month that the
19member's age is under age 60 at the time of retirement. For
20members to whom subsection (c) of Section 14-107 applies, the
21references to age 55 and 60 in this subsection (c) are
22increased as provided in subsection (c) of Section 14-107.
23    (d) A retirement annuity shall not exceed 75% of final
24average compensation, subject to such extension as may result
25from the application of Section 14-114 or Section 14-115.
26    (e) The retirement annuity payable to any covered employee

 

 

09800SB0035sam001- 55 -LRB098 05472 EFG 41210 a

1who is a member of the System and in service on January 1,
21969, or in service thereafter in 1969 as a result of
3legislation enacted by the Illinois General Assembly
4transferring the member to State employment from county
5employment in a county Department of Public Aid in counties of
63,000,000 or more population, under a plan of coordination with
7the Old Age, Survivors and Disability provisions thereof, if
8not fully insured for Old Age Insurance payments under the
9Federal Old Age, Survivors and Disability Insurance provisions
10at the date of acceptance of a retirement annuity, shall not be
11less than the amount for which the member would have been
12eligible if coordination were not applicable.
13    (f) The retirement annuity payable to any covered employee
14who is a member of the System and in service on January 1,
151969, or in service thereafter in 1969 as a result of the
16legislation designated in the immediately preceding paragraph,
17if fully insured for Old Age Insurance payments under the
18Federal Social Security Act at the date of acceptance of a
19retirement annuity, shall not be less than an amount which when
20added to the Primary Insurance Benefit payable to the member
21upon attainment of age 65 under such Federal Act, will equal
22the annuity which would otherwise be payable if the coordinated
23plan of coverage were not applicable.
24    (g) In the case of a member who is a noncovered employee,
25the retirement annuity for membership service as a security
26employee of the Department of Corrections or security employee

 

 

09800SB0035sam001- 56 -LRB098 05472 EFG 41210 a

1of the Department of Human Services shall be: if retirement
2occurs on or after January 1, 2001, 3% of final average
3compensation for each year of creditable service; or if
4retirement occurs before January 1, 2001, 1.9% of final average
5compensation for each of the first 10 years of service, 2.1%
6for each of the next 10 years of service, 2.25% for each year
7of service in excess of 20 but not exceeding 30, and 2.5% for
8each year in excess of 30; except that the annuity may be
9calculated under subsection (a) rather than this subsection (g)
10if the resulting annuity is greater.
11    (h) In the case of a member who is a covered employee, the
12retirement annuity for membership service as a security
13employee of the Department of Corrections or security employee
14of the Department of Human Services shall be: if retirement
15occurs on or after January 1, 2001, 2.5% of final average
16compensation for each year of creditable service; if retirement
17occurs before January 1, 2001, 1.67% of final average
18compensation for each of the first 10 years of service, 1.90%
19for each of the next 10 years of service, 2.10% for each year
20of service in excess of 20 but not exceeding 30, and 2.30% for
21each year in excess of 30.
22    (i) For the purposes of this Section and Section 14-133 of
23this Act, the term "security employee of the Department of
24Corrections" and the term "security employee of the Department
25of Human Services" shall have the meanings ascribed to them in
26subsection (c) of Section 14-110.

 

 

09800SB0035sam001- 57 -LRB098 05472 EFG 41210 a

1    (j) The retirement annuity computed pursuant to paragraphs
2(g) or (h) shall be applicable only to those security employees
3of the Department of Corrections and security employees of the
4Department of Human Services who have at least 20 years of
5membership service and who are not eligible for the alternative
6retirement annuity provided under Section 14-110. However,
7persons transferring to this System under Section 14-108.2 or
814-108.2c who have service credit under Article 16 of this Code
9may count such service toward establishing their eligibility
10under the 20-year service requirement of this subsection; but
11such service may be used only for establishing such
12eligibility, and not for the purpose of increasing or
13calculating any benefit.
14    (k) (Blank).
15    (l) The changes to this Section made by this amendatory Act
16of 1997 (changing certain retirement annuity formulas from a
17stepped rate to a flat rate) apply to members who retire on or
18after January 1, 1998, without regard to whether employment
19terminated before the effective date of this amendatory Act of
201997. An annuity shall not be calculated in steps by using the
21new flat rate for some steps and the superseded stepped rate
22for other steps of the same type of service.
23(Source: P.A. 91-927, eff. 12-14-00; 92-14, eff. 6-28-01.)
 
24    (40 ILCS 5/14-110)  (from Ch. 108 1/2, par. 14-110)
25    Sec. 14-110. Alternative retirement annuity.

 

 

09800SB0035sam001- 58 -LRB098 05472 EFG 41210 a

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

 

 

09800SB0035sam001- 59 -LRB098 05472 EFG 41210 a

1    Such annuity shall be subject to a maximum of 75% of final
2average compensation if retirement occurs before January 1,
32001 or to a maximum of 80% of final average compensation if
4retirement occurs on or after January 1, 2001.
5    These rates shall not be applicable to any service
6performed by a member as a covered employee which is not
7eligible creditable service. Service as a covered employee
8which is not eligible creditable service shall be subject to
9the rates and provisions of Section 14-108.
10    (a-5) Notwithstanding subsection (a) of this Section, for a
11Tier I member who begins receiving a retirement annuity under
12this Section after July 1, 2013:
13        (1) If the Tier I member is at least 45 years old on
14    the effective date of this amendatory Act of the 98th
15    General Assembly, then the references to age 50 and 55 in
16    subsection (a) of this Section remain unchanged.
17        (2) If the Tier I member is at least 40 but less than
18    45 years old on the effective date of this amendatory Act
19    of the 98th General Assembly, then the references to age 50
20    and 55 in subsection (a) of this Section are increased by
21    one year.
22        (3) If the Tier I member is at least 35 but less than
23    40 years old on the effective date of this amendatory Act
24    of the 98th General Assembly, then the references to age 50
25    and 55 in subsection (a) of this Section are increased by 3
26    years.

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

09800SB0035sam001- 71 -LRB098 05472 EFG 41210 a

1position in which eligible creditable service may be earned,
2and returns to State service in the same or another such
3position, and fulfills in all other respects the conditions
4prescribed in this Article for credit for military service,
5such military service shall be credited as eligible creditable
6service for the purposes of the retirement annuity prescribed
7in this Section.
8    (f) For purposes of calculating retirement annuities under
9this Section, periods of service rendered after December 31,
101968 and before October 1, 1975 as a covered employee in the
11position of special agent, conservation police officer, mental
12health police officer, or investigator for the Secretary of
13State, shall be deemed to have been service as a noncovered
14employee, provided that the employee pays to the System prior
15to retirement an amount equal to (1) the difference between the
16employee contributions that would have been required for such
17service as a noncovered employee, and the amount of employee
18contributions actually paid, plus (2) if payment is made after
19July 31, 1987, regular interest on the amount specified in item
20(1) from the date of service to the date of payment.
21    For purposes of calculating retirement annuities under
22this Section, periods of service rendered after December 31,
231968 and before January 1, 1982 as a covered employee in the
24position of investigator for the Department of Revenue shall be
25deemed to have been service as a noncovered employee, provided
26that the employee pays to the System prior to retirement an

 

 

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1amount equal to (1) the difference between the employee
2contributions that would have been required for such service as
3a noncovered employee, and the amount of employee contributions
4actually paid, plus (2) if payment is made after January 1,
51990, regular interest on the amount specified in item (1) from
6the date of service to the date of payment.
7    (g) A State policeman may elect, not later than January 1,
81990, to establish eligible creditable service for up to 10
9years of his service as a policeman under Article 3, by filing
10a written election with the Board, accompanied by payment of an
11amount to be determined by the Board, equal to (i) the
12difference between the amount of employee and employer
13contributions transferred to the System under Section 3-110.5,
14and the amounts that would have been contributed had such
15contributions been made at the rates applicable to State
16policemen, plus (ii) interest thereon at the effective rate for
17each year, compounded annually, from the date of service to the
18date of payment.
19    Subject to the limitation in subsection (i), a State
20policeman may elect, not later than July 1, 1993, to establish
21eligible creditable service for up to 10 years of his service
22as a member of the County Police Department under Article 9, by
23filing a written election with the Board, accompanied by
24payment of an amount to be determined by the Board, equal to
25(i) the difference between the amount of employee and employer
26contributions transferred to the System under Section 9-121.10

 

 

09800SB0035sam001- 73 -LRB098 05472 EFG 41210 a

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

 

 

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

 

 

09800SB0035sam001- 75 -LRB098 05472 EFG 41210 a

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

 

 

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

 

 

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

 

 

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

 

 

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1are providing the vocational training.
2    (n) A person employed in a position under subsection (b) of
3this Section who has purchased service credit under subsection
4(j) of Section 14-104 or subsection (b) of Section 14-105 in
5any other capacity under this Article may convert up to 5 years
6of that service credit into service credit covered under this
7Section by paying to the Fund an amount equal to (1) the
8additional employee contribution required under Section
914-133, plus (2) the additional employer contribution required
10under Section 14-131, plus (3) interest on items (1) and (2) at
11the actuarially assumed rate from the date of the service to
12the date of payment.
13(Source: P.A. 95-530, eff. 8-28-07; 95-1036, eff. 2-17-09;
1496-37, eff. 7-13-09; 96-745, eff. 8-25-09; 96-1000, eff.
157-2-10.)
 
16    (40 ILCS 5/14-114)  (from Ch. 108 1/2, par. 14-114)
17    Sec. 14-114. Automatic increase in retirement annuity.
18    (a) Except as provided in subsections (a-1) and (a-2), any
19Any person receiving a retirement annuity under this Article
20who retires having attained age 60, or who retires before age
2160 having at least 35 years of creditable service, or who
22retires on or after January 1, 2001 at an age which, when added
23to the number of years of his or her creditable service, equals
24at least 85, shall, on January 1 next following the first full
25year of retirement, have the amount of the then fixed and

 

 

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1payable monthly retirement annuity increased 3%. Any person
2receiving a retirement annuity under this Article who retires
3before attainment of age 60 and with less than (i) 35 years of
4creditable service if retirement is before January 1, 2001, or
5(ii) the number of years of creditable service which, when
6added to the member's age, would equal 85, if retirement is on
7or after January 1, 2001, shall have the amount of the fixed
8and payable retirement annuity increased by 3% on the January 1
9occurring on or next following (1) attainment of age 60, or (2)
10the first anniversary of retirement, whichever occurs later.
11However, for persons who receive the alternative retirement
12annuity under Section 14-110, references in this subsection (a)
13to attainment of age 60 shall be deemed to refer to attainment
14of age 55. For a person receiving early retirement incentives
15under Section 14-108.3 whose retirement annuity began after
16January 1, 1992 pursuant to an extension granted under
17subsection (e) of that Section, the first anniversary of
18retirement shall be deemed to be January 1, 1993. For a person
19who retires on or after June 28, 2001 and on or before October
201, 2001, and whose retirement annuity is calculated, in whole
21or in part, under Section 14-110 or subsection (g) or (h) of
22Section 14-108, the first anniversary of retirement shall be
23deemed to be January 1, 2002.
24    On each January 1 following the date of the initial
25increase under this subsection, the employee's monthly
26retirement annuity shall be increased by an additional 3%.

 

 

09800SB0035sam001- 81 -LRB098 05472 EFG 41210 a

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

 

 

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1    (a-3) 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 provisions of subsection (a) of this Section shall
7be applicable to an employee only if the employee makes the
8additional contributions required after December 31, 1969 for
9the purpose of the automatic increases for not less than the
10equivalent of one full year. If an employee becomes an
11annuitant before his additional contributions equal one full
12year's contributions based on his salary at the date of
13retirement, the employee may pay the necessary balance of the
14contributions to the system, without interest, and be eligible
15for the increasing annuity authorized by this Section.
16    (c) The provisions of subsection (a) of this Section shall
17not be applicable to any annuitant who is on retirement on
18December 31, 1969, and thereafter returns to State service,
19unless the member has established at least one year of
20additional creditable service following reentry into service.
21    (d) In addition to other increases which may be provided by
22this Section, on January 1, 1981 any annuitant who was
23receiving a retirement annuity on or before January 1, 1971
24shall have his retirement annuity then being paid increased $1
25per month for each year of creditable service. On January 1,
261982, any annuitant who began receiving a retirement annuity on

 

 

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1or before January 1, 1977, shall have his retirement annuity
2then being paid increased $1 per month for each year of
3creditable service.
4    On January 1, 1987, any annuitant who began receiving a
5retirement annuity on or before January 1, 1977, shall have the
6monthly retirement annuity increased by an amount equal to 8
7per year of creditable service times the number of years that
8have elapsed since the annuity began.
9    (e) Every person who receives the alternative retirement
10annuity under Section 14-110 and who is eligible to receive the
113% increase under subsection (a) on January 1, 1986, shall also
12receive on that date a one-time increase in retirement annuity
13equal to the difference between (1) his actual retirement
14annuity on that date, including any increases received under
15subsection (a), and (2) the amount of retirement annuity he
16would have received on that date if the amendments to
17subsection (a) made by Public Act 84-162 had been in effect
18since the date of his retirement.
19(Source: P.A. 91-927, eff. 12-14-00; 92-14, eff. 6-28-01;
2092-651, eff. 7-11-02.)
 
21    (40 ILCS 5/14-131)
22    Sec. 14-131. Contributions by State.
23    (a) The State shall make contributions to the System by
24appropriations of amounts which, together with other employer
25contributions from trust, federal, and other funds, employee

 

 

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

 

 

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

 

 

09800SB0035sam001- 86 -LRB098 05472 EFG 41210 a

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

 

 

09800SB0035sam001- 87 -LRB098 05472 EFG 41210 a

1to bring the total assets of the System up to 100% of the total
2actuarial liabilities of the System by the end of State fiscal
3year 2043. In making these determinations, the required State
4contribution shall be calculated each year as a level
5percentage of payroll over the years remaining to and including
6fiscal year 2043 and shall be determined under the projected
7unit credit actuarial cost method.
8For State fiscal years 2012 and 2013 through 2045, the minimum
9contribution to the System to be made by the State for each
10fiscal year shall be an amount determined by the System to be
11sufficient to bring the total assets of the System up to 90% of
12the total actuarial liabilities of the System by the end of
13State fiscal year 2045. In making these determinations, the
14required State contribution shall be calculated each year as a
15level percentage of payroll over the years remaining to and
16including fiscal year 2045 and shall be determined under the
17projected unit credit actuarial cost method.
18    For State fiscal years 1996 through 2005, the State
19contribution to the System, as a percentage of the applicable
20employee payroll, shall be increased in equal annual increments
21so that by State fiscal year 2011, the State is contributing at
22the rate required under this Section; except that (i) for State
23fiscal year 1998, for all purposes of this Code and any other
24law of this State, the certified percentage of the applicable
25employee payroll shall be 5.052% for employees earning eligible
26creditable service under Section 14-110 and 6.500% for all

 

 

09800SB0035sam001- 88 -LRB098 05472 EFG 41210 a

1other employees, notwithstanding any contrary certification
2made under Section 14-135.08 before the effective date of this
3amendatory Act of 1997, and (ii) in the following specified
4State fiscal years, the State contribution to the System shall
5not be less than the following indicated percentages of the
6applicable employee payroll, even if the indicated percentage
7will produce a State contribution in excess of the amount
8otherwise required under this subsection and subsection (a):
99.8% in FY 1999; 10.0% in FY 2000; 10.2% in FY 2001; 10.4% in FY
102002; 10.6% in FY 2003; and 10.8% in FY 2004.
11    Notwithstanding any other provision of this Article, the
12total required State contribution to the System for State
13fiscal year 2006 is $203,783,900.
14    Notwithstanding any other provision of this Article, the
15total required State contribution to the System for State
16fiscal year 2007 is $344,164,400.
17    For each of State fiscal years 2008 through 2009, the State
18contribution to the System, as a percentage of the applicable
19employee payroll, shall be increased in equal annual increments
20from the required State contribution for State fiscal year
212007, so that by State fiscal year 2011, the State is
22contributing at the rate otherwise required under this Section.
23    Notwithstanding any other provision of this Article, the
24total required State General Revenue Fund contribution for
25State fiscal year 2010 is $723,703,100 and shall be made from
26the proceeds of bonds sold in fiscal year 2010 pursuant to

 

 

09800SB0035sam001- 89 -LRB098 05472 EFG 41210 a

1Section 7.2 of the General Obligation Bond Act, less (i) the
2pro rata share of bond sale expenses determined by the System's
3share of total bond proceeds, (ii) any amounts received from
4the General Revenue Fund in fiscal year 2010, and (iii) any
5reduction in bond proceeds due to the issuance of discounted
6bonds, if applicable.
7    Notwithstanding any other provision of this Article, the
8total required State General Revenue Fund contribution for
9State fiscal year 2011 is the amount recertified by the System
10on or before April 1, 2011 pursuant to Section 14-135.08 and
11shall be made from the proceeds of bonds sold in fiscal year
122011 pursuant to Section 7.2 of the General Obligation Bond
13Act, less (i) the pro rata share of bond sale expenses
14determined by the System's share of total bond proceeds, (ii)
15any amounts received from the General Revenue Fund in fiscal
16year 2011, and (iii) any reduction in bond proceeds due to the
17issuance of discounted bonds, if applicable.
18    Beginning in State fiscal year 2044, the minimum State
19contribution for each fiscal year shall be the amount needed to
20maintain the total assets of the System at 100% of the total
21actuarial liabilities of the System.
22    Beginning in State fiscal year 2046, the minimum State
23contribution for each fiscal year shall be the amount needed to
24maintain the total assets of the System at 90% of the total
25actuarial liabilities of the System.
26    Amounts received by the System pursuant to Section 25 of

 

 

09800SB0035sam001- 90 -LRB098 05472 EFG 41210 a

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

 

 

09800SB0035sam001- 91 -LRB098 05472 EFG 41210 a

1Act. In determining this maximum for State fiscal years 2008
2through 2010, however, the amount referred to in item (i) shall
3be increased, as a percentage of the applicable employee
4payroll, in equal increments calculated from the sum of the
5required State contribution for State fiscal year 2007 plus the
6applicable portion of the State's total debt service payments
7for fiscal year 2007 on the bonds issued in fiscal year 2003
8for the purposes of Section 7.2 of the General Obligation Bond
9Act, so that, by State fiscal year 2011, the State is
10contributing at the rate otherwise required under this Section.
11    (f) After the submission of all payments for eligible
12employees from personal services line items in fiscal year 2004
13have been made, the Comptroller shall provide to the System a
14certification of the sum of all fiscal year 2004 expenditures
15for personal services that would have been covered by payments
16to the System under this Section if the provisions of this
17amendatory Act of the 93rd General Assembly had not been
18enacted. Upon receipt of the certification, the System shall
19determine the amount due to the System based on the full rate
20certified by the Board under Section 14-135.08 for fiscal year
212004 in order to meet the State's obligation under this
22Section. The System shall compare this amount due to the amount
23received by the System in fiscal year 2004 through payments
24under this Section and under Section 6z-61 of the State Finance
25Act. If the amount due is more than the amount received, the
26difference shall be termed the "Fiscal Year 2004 Shortfall" for

 

 

09800SB0035sam001- 92 -LRB098 05472 EFG 41210 a

1purposes of this Section, and the Fiscal Year 2004 Shortfall
2shall be satisfied under Section 1.2 of the State Pension Funds
3Continuing Appropriation Act. If the amount due is less than
4the amount received, the difference shall be termed the "Fiscal
5Year 2004 Overpayment" for purposes of this Section, and the
6Fiscal Year 2004 Overpayment shall be repaid by the System to
7the Pension Contribution Fund as soon as practicable after the
8certification.
9    (g) 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    (h) 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    (i) After the submission of all payments for eligible
25employees from personal services line items paid from the
26General Revenue Fund in fiscal year 2010 have been made, the

 

 

09800SB0035sam001- 93 -LRB098 05472 EFG 41210 a

1Comptroller shall provide to the System a certification of the
2sum of all fiscal year 2010 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 2010 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 2010 through payments under this Section. If the amount
12due is more than the amount received, the difference shall be
13termed the "Fiscal Year 2010 Shortfall" for purposes of this
14Section, and the Fiscal Year 2010 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 2010
18Overpayment" for purposes of this Section, and the Fiscal Year
192010 Overpayment shall be repaid by the System to the General
20Revenue Fund as soon as practicable after the certification.
21    (j) After the submission of all payments for eligible
22employees from personal services line items paid from the
23General Revenue Fund in fiscal year 2011 have been made, the
24Comptroller shall provide to the System a certification of the
25sum of all fiscal year 2011 expenditures for personal services
26that would have been covered by payments to the System under

 

 

09800SB0035sam001- 94 -LRB098 05472 EFG 41210 a

1this Section if the provisions of this amendatory Act of the
296th General Assembly had not been enacted. Upon receipt of the
3certification, the System shall determine the amount due to the
4System based on the full rate certified by the Board under
5Section 14-135.08 for fiscal year 2011 in order to meet the
6State's obligation under this Section. The System shall compare
7this amount due to the amount received by the System in fiscal
8year 2011 through payments under this Section. If the amount
9due is more than the amount received, the difference shall be
10termed the "Fiscal Year 2011 Shortfall" for purposes of this
11Section, and the Fiscal Year 2011 Shortfall shall be satisfied
12under Section 1.2 of the State Pension Funds Continuing
13Appropriation Act. If the amount due is less than the amount
14received, the difference shall be termed the "Fiscal Year 2011
15Overpayment" for purposes of this Section, and the Fiscal Year
162011 Overpayment shall be repaid by the System to the General
17Revenue Fund as soon as practicable after the certification.
18    (k) For fiscal years 2012 and 2013 only, after the
19submission of all payments for eligible employees from personal
20services line items paid from the General Revenue Fund in the
21fiscal year have been made, the Comptroller shall provide to
22the System a certification of the sum of all expenditures in
23the fiscal year for personal services. Upon receipt of the
24certification, the System shall determine the amount due to the
25System based on the full rate certified by the Board under
26Section 14-135.08 for the fiscal year in order to meet the

 

 

09800SB0035sam001- 95 -LRB098 05472 EFG 41210 a

1State's obligation under this Section. The System shall compare
2this amount due to the amount received by the System for the
3fiscal year. If the amount due is more than the amount
4received, the difference shall be termed the "Prior Fiscal Year
5Shortfall" for purposes of this Section, and the Prior Fiscal
6Year Shortfall shall be satisfied under Section 1.2 of the
7State Pension Funds Continuing Appropriation Act. If the amount
8due is less than the amount received, the difference shall be
9termed the "Prior Fiscal Year Overpayment" for purposes of this
10Section, and the Prior Fiscal Year Overpayment shall be repaid
11by the System to the General Revenue Fund as soon as
12practicable after the certification.
13(Source: P.A. 96-43, eff. 7-15-09; 96-45, eff. 7-15-09;
1496-1000, eff. 7-2-10; 96-1497, eff. 1-14-11; 96-1511, eff.
151-27-11; 96-1554, eff. 3-18-11; 97-72, eff. 7-1-11; 97-732,
16eff. 6-30-12.)
 
17    (40 ILCS 5/14-132)  (from Ch. 108 1/2, par. 14-132)
18    Sec. 14-132. Obligations of State; funding guarantee.
19    (a) The payment of the required department contributions,
20all allowances, annuities, benefits granted under this
21Article, and all expenses of administration of the system are
22obligations of the State of Illinois to the extent specified in
23this Article.
24    (b) All income of the system shall be credited to a
25separate account for this system in the State treasury and

 

 

09800SB0035sam001- 96 -LRB098 05472 EFG 41210 a

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

 

 

09800SB0035sam001- 97 -LRB098 05472 EFG 41210 a

1debt obligation of the State or any other State-created entity,
2either currently outstanding or to be issued, for which the
3source of repayment or security thereon is derived directly or
4indirectly from tax revenues collected by the State or any
5other State-created entity. Payments on such bonded
6obligations include any statutory fund transfers or other
7prefunding mechanisms or formulas set forth, now or hereafter,
8in State law or bond indentures, into debt service funds or
9accounts of the State related to such bonded obligations,
10consistent with the payment schedules associated with such
11obligations.
12(Source: P.A. 80-841.)
 
13    (40 ILCS 5/14-133)  (from Ch. 108 1/2, par. 14-133)
14    Sec. 14-133. Contributions on behalf of members.
15    (a) Each participating employee shall make contributions
16to the System, based on the employee's compensation, as
17follows:
18        (1) Covered employees, except as indicated below, 3.5%
19    for retirement annuity, and 0.5% for a widow or survivors
20    annuity;
21        (2) Noncovered employees, except as indicated below,
22    7% for retirement annuity and 1% for a widow or survivors
23    annuity;
24        (3) Noncovered employees serving in a position in which
25    "eligible creditable service" as defined in Section 14-110

 

 

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

 

 

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1        (1) beginning July 1, 2013 and through June 30, 2014,
2    1% of compensation; and
3        (2) beginning on July 1, 2014, 2% of compensation.
4    (b) Contributions shall be in the form of a deduction from
5compensation and shall be made notwithstanding that the
6compensation paid in cash to the employee shall be reduced
7thereby below the minimum prescribed by law or regulation. Each
8member is deemed to consent and agree to the deductions from
9compensation provided for in this Article, and shall receipt in
10full for salary or compensation.
11(Source: P.A. 92-14, eff. 6-28-01.)
 
12    (40 ILCS 5/14-135.08)  (from Ch. 108 1/2, par. 14-135.08)
13    Sec. 14-135.08. To certify required State contributions.
14    (a) To certify to the Governor and to each department, on
15or before November 15 of each year through until November 15,
162011, the required rate for State contributions to the System
17for the next State fiscal year, as determined under subsection
18(b) of Section 14-131. The certification to the Governor under
19this subsection (a) shall include a copy of the actuarial
20recommendations upon which the rate is based and shall
21specifically identify the System's projected State normal cost
22for that fiscal year.
23    (a-5) On or before November 1 of each year, beginning
24November 1, 2012, the Board shall submit to the State Actuary,
25the Governor, and the General Assembly a proposed certification

 

 

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

 

 

09800SB0035sam001- 101 -LRB098 05472 EFG 41210 a

1deposited by the State with the System in July 2003,
2representing deposits other than amounts reserved under
3Section 7.2(c) of the General Obligation Bond Act. For State
4fiscal year 2005, the Board shall make a supplemental
5certification of the additional amount necessary to pay all
6principal of and interest on those general obligation bonds due
7in State fiscal years 2004 and 2005 authorized by Section
87.2(a) of the General Obligation Bond Act and issued to provide
9the proceeds deposited by the State with the System in July
102003, representing deposits other than amounts reserved under
11Section 7.2(c) of the General Obligation Bond Act, as soon as
12practical after the effective date of this amendatory Act of
13the 93rd General Assembly.
14    On or before May 1, 2004, the Board shall recalculate and
15recertify to the Governor and to each department the amount of
16the required State contribution to the System and the required
17rates for State contributions to the System for State fiscal
18year 2005, taking into account the amounts appropriated to and
19received by the System under subsection (d) of Section 7.2 of
20the General Obligation Bond Act.
21    On or before July 1, 2005, the Board shall recalculate and
22recertify to the Governor and to each department the amount of
23the required State contribution to the System and the required
24rates for State contributions to the System for State fiscal
25year 2006, taking into account the changes in required State
26contributions made by this amendatory Act of the 94th General

 

 

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1Assembly.
2    On or before April 1, 2011, the Board shall recalculate and
3recertify to the Governor and to each department the amount of
4the required State contribution to the System for State fiscal
5year 2011, applying the changes made by Public Act 96-889 to
6the System's assets and liabilities as of June 30, 2009 as
7though Public Act 96-889 was approved on that date.
8(Source: P.A. 96-1497, eff. 1-14-11; 96-1511, eff. 1-27-11;
997-694, eff. 6-18-12.)
 
10    (40 ILCS 5/14-152.1)
11    Sec. 14-152.1. Application and expiration of new benefit
12increases.
13    (a) As used in this Section, "new benefit increase" means
14an increase in the amount of any benefit provided under this
15Article, or an expansion of the conditions of eligibility for
16any benefit under this Article, that results from an amendment
17to this Code that takes effect after June 1, 2005 (the
18effective date of Public Act 94-4). "New benefit increase",
19however, does not include any benefit increase resulting from
20the changes made to this Article by Public Act 96-37 or by this
21amendatory Act of the 98th 96th General Assembly.
22    (b) Notwithstanding any other provision of this Code or any
23subsequent amendment to this Code, every new benefit increase
24is subject to this Section and shall be deemed to be granted
25only in conformance with and contingent upon compliance with

 

 

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

 

 

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

 

 

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1self-managed plan under Section 15-158.2, who first became a
2member or participant before January 1, 2011 under any
3reciprocal retirement system or pension fund established under
4this Code other than a retirement system or pension fund
5established under Article 2, 3, 4, 5, 6, or 18 of this Code.
 
6    (40 ILCS 5/15-107.2 new)
7    Sec. 15-107.2. Tier I retiree. "Tier I retiree": A former
8Tier I participant who is receiving a retirement annuity.
9    A person does not become a Tier I retiree by virtue of
10receiving a reversionary, survivors, beneficiary, or
11disability annuity.
 
12    (40 ILCS 5/15-107.3 new)
13    Sec. 15-107.3. Tier 3 employee. "Tier 3 employee": An
14employee, other than a participant in the self-managed plan
15under Section 15-158.2, who first becomes a participant on or
16after January 1, 2014; and an employee who first became a
17participant on or after January 1, 2011 but before January 1,
182014 and has elected to transfer his or her pension credits to
19the Tier 3 retirement plan.
 
20    (40 ILCS 5/15-111)  (from Ch. 108 1/2, par. 15-111)
21    Sec. 15-111. Earnings. "Earnings": An amount paid for
22personal services equal to the sum of the basic compensation
23plus extra compensation for summer teaching, overtime or other

 

 

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

 

 

09800SB0035sam001- 107 -LRB098 05472 EFG 41210 a

1    approved by the System. Upon payment of the employee
2    contributions on transition pay, the corresponding
3    employer contributions become an obligation of the State.
4    (f) Notwithstanding any other provision of this Code, the
5earnings of a Tier I participant or a Tier 3 employee for the
6purposes of this Code shall not exceed, for periods of service
7on or after the effective date of this amendatory Act of the
898th General Assembly, the greater of (i) the annual
9contribution and benefit base established for the applicable
10year by the Commissioner of Social Security under the federal
11Social Security Act or (ii) the annual earnings of the
12participant during the 365 days immediately preceding that
13effective date; except that this limitation does not apply to a
14participant's earnings that are determined under an employment
15contract or collective bargaining agreement that is in effect
16on the effective date of this amendatory Act of the 98th
17General Assembly and has not been amended or renewed after that
18date.
19(Source: P.A. 91-887, eff. 7-6-00.)
 
20    (40 ILCS 5/15-113.6)  (from Ch. 108 1/2, par. 15-113.6)
21    Sec. 15-113.6. Service for employment in public schools.
22"Service for employment in public schools": Includes those
23periods not exceeding the lesser of 10 years or 2/3 of the
24service granted under other Sections of this Article dealing
25with service credit, during which a person who entered the

 

 

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1system after September 1, 1974 was employed full time by a
2public common school, public college and public university, or
3by an agency or instrumentality of any of the foregoing, of any
4state, territory, dependency or possession of the United States
5of America, including the Philippine Islands, or a school
6operated by or under the auspices of any agency or department
7of any other state, if the person (1) cannot qualify for a
8retirement pension or other benefit based upon employer
9contributions from another retirement system, exclusive of
10federal social security, based in whole or in part upon this
11employment, and (2) pays the lesser of (A) an amount equal to
128% of his or her annual basic compensation on the date of
13becoming a participating employee subsequent to this service
14multiplied by the number of years of such service, together
15with compound interest from the date participation begins to
16the date payment is received by the board at the rate of 6% per
17annum through August 31, 1982, and at the effective rates after
18that date, and (B) 50% of the actuarial value of the increase
19in the retirement annuity provided by this service, and (3)
20contributes for at least 5 years subsequent to this employment
21to one or more of the following systems: the State Universities
22Retirement System, the Teachers' Retirement System of the State
23of Illinois, and the Public School Teachers' Pension and
24Retirement Fund of Chicago.
25    The service granted under this Section shall not be
26considered in determining whether the person has the minimum of

 

 

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18 years of service required to qualify for a retirement annuity
2at age 55 or the 5 years of service required to qualify for a
3retirement annuity at age 62, as provided in Section 15-135, or
4the 10 years required by subsection (c) of Section 1-160, or
5the 5 years of service required by Section 15-158.5 for a
6person who first becomes a participant on or after January 1,
72011. The maximum allowable service of 10 years for this
8governmental employment shall be reduced by the service credit
9which is validated under paragraph (2) of subsection (b) of
10Section 16-127 and paragraph 1 of Section 17-133.
11(Source: P.A. 95-83, eff. 8-13-07; 96-1490, eff. 1-1-11.)
 
12    (40 ILCS 5/15-113.7)  (from Ch. 108 1/2, par. 15-113.7)
13    Sec. 15-113.7. Service for other public employment.
14"Service for other public employment": Includes those periods
15not exceeding the lesser of 10 years or 2/3 of the service
16granted under other Sections of this Article dealing with
17service credit, during which a person was employed full time by
18the United States government, or by the government of a state,
19or by a political subdivision of a state, or by an agency or
20instrumentality of any of the foregoing, if the person (1)
21cannot qualify for a retirement pension or other benefit based
22upon employer contributions from another retirement system,
23exclusive of federal social security, based in whole or in part
24upon this employment, and (2) pays the lesser of (A) an amount
25equal to 8% of his or her annual basic compensation on the date

 

 

09800SB0035sam001- 110 -LRB098 05472 EFG 41210 a

1of becoming a participating employee subsequent to this service
2multiplied by the number of years of such service, together
3with compound interest from the date participation begins to
4the date payment is received by the board at the rate of 6% per
5annum through August 31, 1982, and at the effective rates after
6that date, and (B) 50% of the actuarial value of the increase
7in the retirement annuity provided by this service, and (3)
8contributes for at least 5 years subsequent to this employment
9to one or more of the following systems: the State Universities
10Retirement System, the Teachers' Retirement System of the State
11of Illinois, and the Public School Teachers' Pension and
12Retirement Fund of Chicago. If a function of a governmental
13unit as defined by Section 20-107 is transferred by law, in
14whole or in part to an employer, and an employee transfers
15employment from this governmental unit to such employer within
166 months of the transfer of the function, the payment for
17service authorized under this Section shall not exceed the
18amount which would have been payable for this service to the
19retirement system covering the governmental unit from which the
20function was transferred.
21    The service granted under this Section shall not be
22considered in determining whether the person has the minimum of
238 years of service required to qualify for a retirement annuity
24at age 55 or the 5 years of service required to qualify for a
25retirement annuity at age 62, as provided in Section 15-135,
26the 10 years required by subsection (c) of Section 1-160, or

 

 

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1the 5 years of service required by Section 15-158.5. The
2maximum allowable service of 10 years for this governmental
3employment shall be reduced by the service credit which is
4validated under paragraph (2) of subsection (b) of Section
516-127 and paragraph one of Section 17-133.
6    Except as hereinafter provided, this Section shall not
7apply to persons who become participants in the system after
8September 1, 1974.
9(Source: P.A. 95-83, eff. 8-13-07.)
 
10    (40 ILCS 5/15-135)  (from Ch. 108 1/2, par. 15-135)
11    Sec. 15-135. Retirement annuities - Conditions.
12    (a) A participant who retires in one of the following
13specified years with the specified amount of service is
14entitled to a retirement annuity at any age under the
15retirement program applicable to the participant:
16        35 years if retirement is in 1997 or before;
17        34 years if retirement is in 1998;
18        33 years if retirement is in 1999;
19        32 years if retirement is in 2000;
20        31 years if retirement is in 2001;
21        30 years if retirement is in 2002 or later.
22    A participant with 8 or more years of service after
23September 1, 1941, is entitled to a retirement annuity on or
24after attainment of age 55.
25    A participant with at least 5 but less than 8 years of

 

 

09800SB0035sam001- 112 -LRB098 05472 EFG 41210 a

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

 

 

09800SB0035sam001- 113 -LRB098 05472 EFG 41210 a

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

 

 

09800SB0035sam001- 114 -LRB098 05472 EFG 41210 a

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

 

 

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1    amount equal to that which can be provided on an
2    actuarially equivalent basis from the accumulated normal
3    contributions made by the participant under Section
4    15-113.6 and Section 15-113.7 plus 1.4 times all other
5    accumulated normal contributions made by the participant;
6    and
7        (iii) the annuity that can be provided on an
8    actuarially equivalent basis from the entire contribution
9    made by the participant under Section 15-113.3.
10    For the purpose of calculating an annuity under this Rule
112, the contribution required under subsection (c-5) of Section
1215-157 shall not be considered when determining the
13participant's accumulated normal contributions under clause
14(i) or the employer contribution under clause (ii).
15    With respect to a police officer or firefighter who retires
16on or after August 14, 1998, the accumulated normal
17contributions taken into account under clauses (i) and (ii) of
18this Rule 2 shall include the additional normal contributions
19made by the police officer or firefighter under Section
2015-157(a).
21    The amount of a retirement annuity calculated under this
22Rule 2 shall be computed solely on the basis of the
23participant's accumulated normal contributions, as specified
24in this Rule and defined in Section 15-116. Neither an employee
25or employer contribution for early retirement under Section
2615-136.2 nor any other employer contribution shall be used in

 

 

09800SB0035sam001- 116 -LRB098 05472 EFG 41210 a

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

 

 

09800SB0035sam001- 117 -LRB098 05472 EFG 41210 a

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

 

 

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

 

 

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1    In no event shall a retirement annuity under this Rule 5 be
2lower than the amount obtained by adding (1) the monthly amount
3obtained by dividing the combined employee and employer
4contributions made under Section 15-136.2 by the System's
5annuity factor for the age of the participant at the beginning
6of the annuity payment period and (2) the amount equal to the
7participant's annuity if calculated under Rule 1, reduced under
8Section 15-136(b) as if no contributions had been made under
9Section 15-136.2.
10    With respect to a participant who is qualified for a
11retirement annuity under this Rule 5 whose retirement annuity
12began before the effective date of this amendatory Act of the
1391st General Assembly, and for whom an employee contribution
14was made under Section 15-136.2, the System shall recalculate
15the retirement annuity under this Rule 5 and shall pay any
16additional amounts due in the manner provided in Section
1715-186.1 for benefits mistakenly set too low.
18    The amount of a retirement annuity calculated under this
19Rule 5 shall be computed solely on the basis of those
20contributions specifically set forth in this Rule 5. Except as
21provided in clause (iii) of this Rule 5, neither an employee
22nor employer contribution for early retirement under Section
2315-136.2, nor any other employer contribution, shall be used in
24the calculation of the amount of a retirement annuity under
25this Rule 5.
26    The General Assembly has adopted the changes set forth in

 

 

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

 

 

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1    during periods when he or she performed the duties of a
2    police officer or firefighter, if these duties were
3    performed for at least 5 years immediately preceding the
4    date the retirement annuity is to begin.
5    (c) The maximum retirement annuity provided under Rules 1,
62, 4, and 5 shall be the lesser of (1) the annual limit of
7benefits as specified in Section 415 of the Internal Revenue
8Code of 1986, as such Section may be amended from time to time
9and as such benefit limits shall be adjusted by the
10Commissioner of Internal Revenue, and (2) 80% of final rate of
11earnings.
12    (d) Subject to the provisions of subsections (d-1) and
13(d-2), an An annuitant whose status as an employee terminates
14after August 14, 1969 shall receive automatic increases in his
15or her retirement annuity as follows:
16    Effective January 1 immediately following the date the
17retirement annuity begins, the annuitant shall receive an
18increase in his or her monthly retirement annuity of 0.125% of
19the monthly retirement annuity provided under Rule 1, Rule 2,
20Rule 3, Rule 4, or Rule 5, contained in this Section,
21multiplied by the number of full months which elapsed from the
22date the retirement annuity payments began to January 1, 1972,
23plus 0.1667% of such annuity, multiplied by the number of full
24months which elapsed from January 1, 1972, or the date the
25retirement annuity payments began, whichever is later, to
26January 1, 1978, plus 0.25% of such annuity multiplied by the

 

 

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1number of full months which elapsed from January 1, 1978, or
2the date the retirement annuity payments began, whichever is
3later, to the effective date of the increase.
4    The annuitant shall receive an increase in his or her
5monthly retirement annuity on each January 1 thereafter during
6the annuitant's life of 3% of the monthly annuity provided
7under Rule 1, Rule 2, Rule 3, Rule 4, or Rule 5 contained in
8this Section. The change made under this subsection by P.A.
981-970 is effective January 1, 1980 and applies to each
10annuitant whose status as an employee terminates before or
11after that date.
12    Beginning January 1, 1990 and except as provided in
13subsections (d-1) and (d-2), all automatic annual increases
14payable under this Section shall be calculated as a percentage
15of the total annuity payable at the time of the increase,
16including all increases previously granted under this Article.
17    The change made in this subsection by P.A. 85-1008 is
18effective January 26, 1988, and is applicable without regard to
19whether status as an employee terminated before that date.
20    (d-1) Notwithstanding any other provision of this Article,
21for a Tier I retiree, the amount of each automatic annual
22increase in retirement annuity occurring on or after the
23effective date of this amendatory Act of the 98th General
24Assembly shall be the lesser of $750 or 3% of the total annuity
25payable at the time of the increase, including previous
26increases granted.

 

 

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

 

 

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1whichever is later, to the amount which would be provided by
2Rule 3 of this Section. Such increased amount shall be
3considered as the retirement annuity in determining benefits
4provided under other Sections of this Article. This paragraph
5applies without regard to whether status as an employee
6terminated before the effective date of this amendatory Act of
71987, provided that the annuitant was employed at least
8one-half time during the period on which the final rate of
9earnings was based.
10    (f) A participant is entitled to such additional annuity as
11may be provided on an actuarially equivalent basis, by any
12accumulated additional contributions to his or her credit.
13However, the additional contributions made by the participant
14toward the automatic increases in annuity provided under this
15Section and the contributions made under subsection (c-5) of
16Section 15-157 by this amendatory Act of the 98th General
17Assembly shall not be taken into account in determining the
18amount of such additional annuity.
19    (g) If, (1) by law, a function of a governmental unit, as
20defined by Section 20-107 of this Code, is transferred in whole
21or in part to an employer, and (2) a participant transfers
22employment from such governmental unit to such employer within
236 months after the transfer of the function, and (3) the sum of
24(A) the annuity payable to the participant under Rule 1, 2, or
253 of this Section (B) all proportional annuities payable to the
26participant by all other retirement systems covered by Article

 

 

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120, and (C) the initial primary insurance amount to which the
2participant is entitled under the Social Security Act, is less
3than the retirement annuity which would have been payable if
4all of the participant's pension credits validated under
5Section 20-109 had been validated under this system, a
6supplemental annuity equal to the difference in such amounts
7shall be payable to the participant.
8    (h) On January 1, 1981, an annuitant who was receiving a
9retirement annuity on or before January 1, 1971 shall have his
10or her retirement annuity then being paid increased $1 per
11month for each year of creditable service. On January 1, 1982,
12an annuitant whose retirement annuity began on or before
13January 1, 1977, shall have his or her retirement annuity then
14being paid increased $1 per month for each year of creditable
15service.
16    (i) On January 1, 1987, any annuitant whose retirement
17annuity began on or before January 1, 1977, shall have the
18monthly retirement annuity increased by an amount equal to 8
19per year of creditable service times the number of years that
20have elapsed since the annuity began.
21    (j) For participants to whom subsection (a-5) of Section
2215-135 applies, the references to age 50, 55, and 62 in this
23Section are increased as provided in subsection (a-5) of
24Section 15-135.
25(Source: P.A. 97-933, eff. 8-10-12; 97-968, eff. 8-16-12.)
 

 

 

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1    (40 ILCS 5/15-139)  (from Ch. 108 1/2, par. 15-139)
2    Sec. 15-139. Retirement annuities; cancellation; suspended
3during employment.
4    (a) If an annuitant returns to employment for an employer
5within 60 days after the beginning of the retirement annuity
6payment period, the retirement annuity shall be cancelled, and
7the annuitant shall refund to the System the total amount of
8the retirement annuity payments which he or she received. If
9the retirement annuity is cancelled, the participant shall
10continue to participate in the System.
11    (b) If an annuitant retires prior to age 60 and receives or
12becomes entitled to receive during any month compensation in
13excess of the monthly retirement annuity (including any
14automatic annual increases) for services performed after the
15date of retirement for any employer under this System, that
16portion of the monthly retirement annuity provided by employer
17contributions shall not be payable.
18    If an annuitant retires at age 60 or over and receives or
19becomes entitled to receive during any academic year
20compensation in excess of the difference between his or her
21highest annual earnings prior to retirement and his or her
22annual retirement annuity computed under Rule 1, Rule 2, Rule
233, Rule 4, or Rule 5 of Section 15-136, or under Section
2415-136.4 or 15-158.5, for services performed after the date of
25retirement for any employer under this System, that portion of
26the monthly retirement annuity provided by employer

 

 

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

 

 

09800SB0035sam001- 128 -LRB098 05472 EFG 41210 a

1the initial date of retirement shall be considered in
2determining eligibility of the employee or the employee's
3beneficiary to benefits under this Article, and in calculating
4final rate of earnings.
5    In determining the death benefit payable to a beneficiary
6of an annuitant who again becomes a participating employee
7under this Section, accumulated normal and additional
8contributions shall be considered as the sum of the accumulated
9normal and additional contributions at the date of initial
10retirement and the accumulated normal and additional
11contributions credited after that date, less the sum of the
12annuity payments received by the annuitant.
13    The survivors insurance benefits provided under Section
1415-145 shall not be applicable to an annuitant who resumes his
15or her status as a participating employee, unless the
16annuitant, at the time of initial retirement, has a survivors
17insurance beneficiary who could qualify for such benefits.
18    If the participant's employment is terminated because of
19circumstances other than death before 9 months from the date of
20reemployment, the provisions of this Section regarding
21resumption of status as a participating employee shall not
22apply. The normal and survivors insurance contributions which
23are deducted during this period shall be refunded to the
24annuitant without interest, and subsequent benefits under this
25Article shall be the same as those which were applicable prior
26to the date the annuitant resumed employment.

 

 

09800SB0035sam001- 129 -LRB098 05472 EFG 41210 a

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

 

 

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1    board, stating that the participant is unable to engage in
2    any substantial gainful activity; and
3        (ii) any other medical examinations, hospital records,
4    laboratory results, or other information necessary for
5    determining the employment capacity and condition of the
6    participant.
7    The terms "medically determinable physical or mental
8impairment" and "substantial gainful activity" shall have the
9meanings ascribed to them in the federal Social Security Act,
10as now or hereafter amended, and the regulations issued
11thereunder.
12    The disability retirement annuity payment period shall
13begin immediately following the expiration of the disability
14benefit payments under clause (6) of Section 15-152 and shall
15be discontinued for a recipient of a disability retirement
16annuity when (1) the physical or mental impairment no longer
17prevents the participant from engaging in any substantial
18gainful activity, (2) the participant dies or (3) the
19participant elects to receive a retirement annuity under
20Sections 15-135 and 15-136 or Section 15-158.5. If a person's
21disability retirement annuity is discontinued under clause
22(1), all rights and credits accrued in the system on the date
23that the disability retirement annuity began shall be restored,
24and the disability retirement annuity paid shall be considered
25as disability payments under clause (6) of Section 15-152.
26(Source: P.A. 97-933, eff. 8-10-12; 97-968, eff. 8-16-12.)
 

 

 

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1    (40 ILCS 5/15-155)  (from Ch. 108 1/2, par. 15-155)
2    Sec. 15-155. Employer contributions.
3    (a) The State of Illinois shall make contributions by
4appropriations of amounts which, together with the other
5employer contributions from trust, federal, and other funds,
6employee contributions, income from investments, and other
7income of this System, will be sufficient to meet the cost of
8maintaining and administering the System on a 100% 90% funded
9basis in accordance with actuarial recommendations by the end
10of State fiscal year 2043.
11    The Board shall determine the amount of State contributions
12required for each fiscal year on the basis of the actuarial
13tables and other assumptions adopted by the Board and the
14recommendations of the actuary, using the formula in subsection
15(a-1).
16    (a-1) 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

 

 

09800SB0035sam001- 132 -LRB098 05472 EFG 41210 a

1fiscal year 2043 and shall be determined under the projected
2unit credit actuarial cost method.
3    Beginning in State fiscal year 2044, the minimum State
4contribution for each fiscal year shall be the amount needed to
5maintain the total assets of the System at 100% of the total
6actuarial liabilities of the System.
7    For State fiscal years 2012 and 2013 through 2045, the
8minimum contribution to the System to be made by the State for
9each fiscal year shall be an amount determined by the System to
10be sufficient to bring the total assets of the System up to 90%
11of the total actuarial liabilities of the System by the end of
12State fiscal year 2045. In making these determinations, the
13required State contribution shall be calculated each year as a
14level percentage of payroll over the years remaining to and
15including fiscal year 2045 and shall be determined under the
16projected unit credit actuarial cost method.
17    For State fiscal years 1996 through 2005, the State
18contribution to the System, as a percentage of the applicable
19employee payroll, shall be increased in equal annual increments
20so that by State fiscal year 2011, the State is contributing at
21the rate required under this Section.
22    Notwithstanding any other provision of this Article, the
23total required State contribution for State fiscal year 2006 is
24$166,641,900.
25    Notwithstanding any other provision of this Article, the
26total required State contribution for State fiscal year 2007 is

 

 

09800SB0035sam001- 133 -LRB098 05472 EFG 41210 a

1$252,064,100.
2    For each of State fiscal years 2008 through 2009, the State
3contribution to the System, as a percentage of the applicable
4employee payroll, shall be increased in equal annual increments
5from the required State contribution for State fiscal year
62007, so that by State fiscal year 2011, the State is
7contributing at the rate otherwise required under this Section.
8    Notwithstanding any other provision of this Article, the
9total required State contribution for State fiscal year 2010 is
10$702,514,000 and shall be made from the State Pensions Fund and
11proceeds of bonds sold in fiscal year 2010 pursuant to Section
127.2 of the General Obligation Bond Act, less (i) the pro rata
13share of bond sale expenses determined by the System's share of
14total bond proceeds, (ii) any amounts received from the General
15Revenue Fund in fiscal year 2010, (iii) any reduction in bond
16proceeds due to the issuance of discounted bonds, if
17applicable.
18    Notwithstanding any other provision of this Article, the
19total required State contribution for State fiscal year 2011 is
20the amount recertified by the System on or before April 1, 2011
21pursuant to Section 15-165 and shall be made from the State
22Pensions Fund and proceeds of bonds sold in fiscal year 2011
23pursuant to Section 7.2 of the General Obligation Bond Act,
24less (i) the pro rata share of bond sale expenses determined by
25the System's share of total bond proceeds, (ii) any amounts
26received from the General Revenue Fund in fiscal year 2011, and

 

 

09800SB0035sam001- 134 -LRB098 05472 EFG 41210 a

1(iii) any reduction in bond proceeds due to the issuance of
2discounted bonds, if applicable.
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 15-165, shall not exceed an amount
24equal to (i) the amount of the required State contribution that
25would have been calculated under this Section for that fiscal
26year if the System had not received any payments under

 

 

09800SB0035sam001- 135 -LRB098 05472 EFG 41210 a

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

 

 

09800SB0035sam001- 136 -LRB098 05472 EFG 41210 a

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

 

 

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

 

 

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

 

 

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1    The employer contributions required under this subsection
2(g) (f) may be paid in the form of a lump sum within 90 days
3after receipt of the bill. If the employer contributions are
4not paid within 90 days after receipt of the bill, then
5interest will be charged at a rate equal to the System's annual
6actuarially assumed rate of return on investment compounded
7annually from the 91st day after receipt of the bill. Payments
8must be concluded within 3 years after the employer's receipt
9of the bill.
10    (h) This subsection (h) applies only to payments made or
11salary increases given on or after June 1, 2005 but before July
121, 2011. The changes made by Public Act 94-1057 shall not
13require the System to refund any payments received before July
1431, 2006 (the effective date of Public Act 94-1057).
15    When assessing payment for any amount due under subsection
16(g), the System shall exclude earnings increases paid to
17participants under contracts or collective bargaining
18agreements entered into, amended, or renewed before June 1,
192005.
20    When assessing payment for any amount due under subsection
21(g), the System shall exclude earnings increases paid to a
22participant at a time when the participant is 10 or more years
23from retirement eligibility under Section 15-135.
24    When assessing payment for any amount due under subsection
25(g), the System shall exclude earnings increases resulting from
26overload work, including a contract for summer teaching, or

 

 

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

 

 

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1subsection (g), the System shall exclude any salary increase
2described in subsection (h) 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 (g) of this Section.
10    (j) 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    (k) The Illinois Community College Board shall adopt rules
26for recommending lists of promotional positions submitted to

 

 

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

 

 

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1value of assets shall be assumed to earn a rate of return equal
2to the system's actuarially assumed rate of return.
3(Source: P.A. 96-43, eff. 7-15-09; 96-1497, eff. 1-14-11;
496-1511, eff. 1-27-11; 96-1554, eff. 3-18-11; 97-813, eff.
57-13-12; revised 10-17-12.)
 
6    (40 ILCS 5/15-155.1 new)
7    Sec. 15-155.1. Actions to enforce payments by employers
8other than the State. Any employer, other than the State, that
9fails to transmit to the System contributions required of it
10under this Article or contributions required of employees, for
11more than 90 days after such contributions are due, is subject
12to the following: after giving notice to the employer, the
13System may certify to the State Comptroller or the Illinois
14Community College Board, whichever is applicable, the amounts
15of such delinquent payments and the State Comptroller or the
16Illinois Community College Board, whichever is applicable,
17shall deduct the amounts so certified or any part thereof from
18any State funds to be remitted to the employer and shall pay
19the amount so deducted to the System. If State funds from which
20such deductions may be made are not available, the System may
21proceed against the employer to recover the amounts of such
22delinquent payments in the appropriate circuit court.
23    The System may provide for an audit of the records of an
24employer, other than the State, as may be required to establish
25the amounts of required contributions. The employer shall make

 

 

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

 

 

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1Article XIII, Section 5 of the Illinois Constitution.
2    Notwithstanding any other provision of law, if the State
3fails to pay in a State fiscal year the amount guaranteed under
4this subsection, the System may bring a mandamus action in the
5Circuit Court of Sangamon or Champaign County to compel the
6State to make that payment, irrespective of other remedies that
7may be available to the System. In ordering the State to make
8the required payment, the court may order a reasonable payment
9schedule to enable the State to make the required payment
10without significantly imperiling the public health, safety, or
11welfare.
12    Any payments required to be made by the State pursuant to
13this subsection (b) are expressly subordinated to the payment
14of the principal, interest, and premium, if any, on any bonded
15debt obligation of the State or any other State-created entity,
16either currently outstanding or to be issued, for which the
17source of repayment or security thereon is derived directly or
18indirectly from tax revenues collected by the State or any
19other State-created entity. Payments on such bonded
20obligations include any statutory fund transfers or other
21prefunding mechanisms or formulas set forth, now or hereafter,
22in State law or bond indentures, into debt service funds or
23accounts of the State related to such bonded obligations,
24consistent with the payment schedules associated with such
25obligations.
26(Source: P.A. 83-1440.)
 

 

 

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1    (40 ILCS 5/15-157)  (from Ch. 108 1/2, par. 15-157)
2    Sec. 15-157. Employee Contributions.
3    (a) Each participating employee shall make contributions
4towards the retirement benefits payable under the retirement
5program applicable to the employee from each payment of
6earnings applicable to employment under this system on and
7after the date of becoming a participant as follows: Prior to
8September 1, 1949, 3 1/2% of earnings; from September 1, 1949
9to August 31, 1955, 5%; from September 1, 1955 to August 31,
101969, 6%; from September 1, 1969, 6 1/2%. These contributions
11are to be considered as normal contributions for purposes of
12this Article.
13    Each participant who is a police officer or firefighter
14shall make normal contributions of 8% of each payment of
15earnings applicable to employment as a police officer or
16firefighter under this system on or after September 1, 1981,
17unless he or she files with the board within 60 days after the
18effective date of this amendatory Act of 1991 or 60 days after
19the board receives notice that he or she is employed as a
20police officer or firefighter, whichever is later, a written
21notice waiving the retirement formula provided by Rule 4 of
22Section 15-136. This waiver shall be irrevocable. If a
23participant had met the conditions set forth in Section
2415-132.1 prior to the effective date of this amendatory Act of
251991 but failed to make the additional normal contributions

 

 

09800SB0035sam001- 147 -LRB098 05472 EFG 41210 a

1required by this paragraph, he or she may elect to pay the
2additional contributions plus compound interest at the
3effective rate. If such payment is received by the board, the
4service shall be considered as police officer service in
5calculating the retirement annuity under Rule 4 of Section
615-136. While performing service described in clause (i) or
7(ii) of Rule 4 of Section 15-136, a participating employee
8shall be deemed to be employed as a firefighter for the purpose
9of determining the rate of employee contributions under this
10Section.
11    (b) Starting September 1, 1969, each participating
12employee shall make additional contributions of 1/2 of 1% of
13earnings to finance a portion of the cost of the annual
14increases in retirement annuity provided under Section 15-136,
15except that with respect to participants in the self-managed
16plan this additional contribution shall be used to finance the
17benefits obtained under that retirement program.
18    (c) In addition to the amounts described in subsections (a)
19and (b) of this Section, each participating employee shall make
20contributions of 1% of earnings applicable under this system on
21and after August 1, 1959. The contributions made under this
22subsection (c) shall be considered as survivor's insurance
23contributions for purposes of this Article if the employee is
24covered under the traditional benefit package, and such
25contributions shall be considered as additional contributions
26for purposes of this Article if the employee is participating

 

 

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1in the self-managed plan or has elected to participate in the
2portable benefit package and has completed the applicable
3one-year waiting period. Contributions in excess of $80 during
4any fiscal year beginning before August 31, 1969 and in excess
5of $120 during any fiscal year thereafter until September 1,
61971 shall be considered as additional contributions for
7purposes of this Article.
8    (c-5) In addition to the contributions otherwise required
9under this Article, each Tier I participant shall also make the
10following contributions toward the retirement benefits payable
11under the retirement program applicable to the employee from
12each payment of earnings applicable to employment under this
13system:
14        (1) beginning July 1, 2013 and through June 30, 2014,
15    1% of earnings; and
16        (2) beginning on July 1, 2014, 2% of earnings.
17    Except as otherwise specified, these contributions are to
18be considered as normal contributions for purposes of this
19Article.
20    (d) If the board by board rule so permits and subject to
21such conditions and limitations as may be specified in its
22rules, a participant may make other additional contributions of
23such percentage of earnings or amounts as the participant shall
24elect in a written notice thereof received by the board.
25    (e) That fraction of a participant's total accumulated
26normal contributions, the numerator of which is equal to the

 

 

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1number of years of service in excess of that which is required
2to qualify for the maximum retirement annuity, and the
3denominator of which is equal to the total service of the
4participant, shall be considered as accumulated additional
5contributions. The determination of the applicable maximum
6annuity and the adjustment in contributions required by this
7provision shall be made as of the date of the participant's
8retirement.
9    (f) Notwithstanding the foregoing, a participating
10employee shall not be required to make contributions under this
11Section after the date upon which continuance of such
12contributions would otherwise cause his or her retirement
13annuity to exceed the maximum retirement annuity as specified
14in clause (1) of subsection (c) of Section 15-136.
15    (g) A participating employee may make contributions for the
16purchase of service credit under this Article.
17(Source: P.A. 90-32, eff. 6-27-97; 90-65, eff. 7-7-97; 90-448,
18eff. 8-16-97; 90-511, eff. 8-22-97; 90-576, eff. 3-31-98;
1990-655, eff. 7-30-98; 90-766, eff. 8-14-98.)
 
20    (40 ILCS 5/15-158.5 new)
21    Sec. 15-158.5. Tier 3 retirement plan.
22    (a) Contents of Tier 3 retirement plan. The Tier 3
23retirement plan consists of a defined-benefit component and a
24defined-contribution component; both components apply to all
25participants in the Tier 3 retirement plan. The plan also

 

 

09800SB0035sam001- 150 -LRB098 05472 EFG 41210 a

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

 

 

09800SB0035sam001- 151 -LRB098 05472 EFG 41210 a

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

 

 

09800SB0035sam001- 152 -LRB098 05472 EFG 41210 a

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

 

 

09800SB0035sam001- 153 -LRB098 05472 EFG 41210 a

1becomes a participant of the System on or after January 1, 2014
2shall have the option to elect to participate in the
3self-managed plan established under Section 15-158.2 in lieu of
4participating in the Tier 3 retirement plan.
5    An employee who first became a participant of this System
6on or after January 1, 2011 and before January 1, 2014 may
7choose to transfer his or her pension credits into the Tier 3
8retirement plan by making, on or before June 1, 2014, an
9irrevocable election to transfer his or her pension credits
10into the Tier 3 retirement plan. An employee so electing will
11be credited with employee contributions and employer normal
12cost contributions plus interest at the actual rate of return.
13The System shall calculate the total cost of transferring an
14equal amount of service credit into the Tier 3 defined benefit
15plan and use the credited contributions to cover the cost of
16the transfer. Any unused contributions shall be deposited into
17the employee's defined contribution account.
18    (d) Retirement annuity.
19        (1) A participant in the Tier 3 retirement plan is
20    entitled to a retirement annuity under this Section upon
21    written application if he or she has attained age 67, has
22    at least 5 years of service credit, and has terminated
23    employment under this Article.
24        A participant in the Tier 3 retirement plan is entitled
25    to a reduced retirement annuity upon written application if
26    he or she has attained age 62 but is below age 67 at the

 

 

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

 

 

09800SB0035sam001- 155 -LRB098 05472 EFG 41210 a

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

 

 

09800SB0035sam001- 156 -LRB098 05472 EFG 41210 a

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

 

 

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

 

 

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1extent permitted under the rules of the plan.
2    (h) Actual employer contributions.
3        (1) To fund the Tier 3 retirement plan, the actual
4    employer of an employee who participates in the Tier 3
5    retirement plan shall annually contribute to the System an
6    amount determined by the System equal to the sum of: (i)
7    the annual employer's normal cost of the defined-benefit
8    component of the Tier 3 retirement plan for employees of
9    that employer, (ii) any unfunded accrued liability arising
10    from the Tier 3 retirement plan assigned to the employer
11    that year in accordance with subsection (h-5), and (iii)
12    any optional matching contribution to be made for that year
13    to the defined-contribution accounts of the local
14    employers' employees by the local employer pursuant to a
15    collective bargaining agreement or other employment
16    contract, provided that the optional matching contribution
17    shall not be less than 3% or greater than 10% of the
18    applicable employee salary.
19        (2) Each year, the retirement system shall obtain an
20    actuarial estimate of the annual normal cost of the
21    defined-benefit component of the Tier 3 retirement plan.
22        (3) The contributions required under this subsection
23    (h) are in addition to the contributions required under
24    Section 15-155 and any other contributions required under
25    this Article.
26        (4) In no event shall a participant have an option of

 

 

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

 

 

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1    (40 ILCS 5/15-165)   (from Ch. 108 1/2, par. 15-165)
2    Sec. 15-165. To certify amounts and submit vouchers.
3    (a) The Board shall certify to the Governor on or before
4November 15 of each year through until November 15, 2011 the
5appropriation required from State funds for the purposes of
6this System for the following fiscal year. The certification
7under this subsection (a) shall include a copy of the actuarial
8recommendations upon which it is based and shall specifically
9identify the System's projected State normal cost for that
10fiscal year and the projected State cost for the self-managed
11plan for that fiscal year.
12    On or before May 1, 2004, the Board shall recalculate and
13recertify to the Governor the amount of the required State
14contribution to the System for State fiscal year 2005, taking
15into account the amounts appropriated to and received by the
16System under subsection (d) of Section 7.2 of the General
17Obligation Bond Act.
18    On or before July 1, 2005, the Board shall recalculate and
19recertify to the Governor the amount of the required State
20contribution to the System for State fiscal year 2006, taking
21into account the changes in required State contributions made
22by this amendatory Act of the 94th General Assembly.
23    On or before April 1, 2011, the Board shall recalculate and
24recertify to the Governor the amount of the required State
25contribution to the System for State fiscal year 2011, applying
26the changes made by Public Act 96-889 to the System's assets

 

 

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

 

 

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1following the State Actuary's recommended changes on the
2required State contribution.
3    (b) The Board shall certify to the State Comptroller or
4employer, as the case may be, from time to time, by its
5president and secretary, with its seal attached, the amounts
6payable to the System from the various funds.
7    (c) Beginning in State fiscal year 1996, on or as soon as
8possible after the 15th day of each month the Board shall
9submit vouchers for payment of State contributions to the
10System, in a total monthly amount of one-twelfth of the
11required annual State contribution certified under subsection
12(a). From the effective date of this amendatory Act of the 93rd
13General Assembly through June 30, 2004, the Board shall not
14submit vouchers for the remainder of fiscal year 2004 in excess
15of the fiscal year 2004 certified contribution amount
16determined under this Section after taking into consideration
17the transfer to the System under subsection (b) of Section
186z-61 of the State Finance Act. These vouchers shall be paid by
19the State Comptroller and Treasurer by warrants drawn on the
20funds appropriated to the System for that fiscal year.
21    If in any month the amount remaining unexpended from all
22other appropriations to the System for the applicable fiscal
23year (including the appropriations to the System under Section
248.12 of the State Finance Act and Section 1 of the State
25Pension Funds Continuing Appropriation Act) is less than the
26amount lawfully vouchered under this Section, the difference

 

 

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1shall be paid from the General Revenue Fund under the
2continuing appropriation authority provided in Section 1.1 of
3the State Pension Funds Continuing Appropriation Act.
4    (d) So long as the payments received are the full amount
5lawfully vouchered under this Section, payments received by the
6System under this Section shall be applied first toward the
7employer contribution to the self-managed plan established
8under Section 15-158.2. Payments shall be applied second toward
9the employer's portion of the normal costs of the System, as
10defined in subsection (f) of Section 15-155. The balance shall
11be applied toward the unfunded actuarial liabilities of the
12System.
13    (e) In the event that the System does not receive, as a
14result of legislative enactment or otherwise, payments
15sufficient to fully fund the employer contribution to the
16self-managed plan established under Section 15-158.2 and to
17fully fund that portion of the employer's portion of the normal
18costs of the System, as calculated in accordance with Section
1915-155(a-1), then any payments received shall be applied
20proportionately to the optional retirement program established
21under Section 15-158.2 and to the employer's portion of the
22normal costs of the System, as calculated in accordance with
23Section 15-155(a-1).
24(Source: P.A. 96-1497, eff. 1-14-11; 96-1511, eff. 1-27-11;
2597-694, eff. 6-18-12.)
 

 

 

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1    (40 ILCS 5/15-198)
2    Sec. 15-198. Application and expiration of new benefit
3increases.
4    (a) As used in this Section, "new benefit increase" means
5an increase in the amount of any benefit provided under this
6Article, or an expansion of the conditions of eligibility for
7any benefit under this Article or Article 1, that results from
8an amendment to this Code that takes effect after the effective
9date of this amendatory Act of the 94th General Assembly. "New
10benefit increase", however, does not include any benefit
11increase resulting from the changes made to this Article or
12Article 1 by this amendatory Act of the 98th General Assembly.
13    (b) Notwithstanding any other provision of this Code or any
14subsequent amendment to this Code, every new benefit increase
15is subject to this Section and shall be deemed to be granted
16only in conformance with and contingent upon compliance with
17the provisions of this Section.
18    (c) The Public Act enacting a new benefit increase must
19identify and provide for payment to the System of additional
20funding at least sufficient to fund the resulting annual
21increase in cost to the System as it accrues.
22    Every new benefit increase is contingent upon the General
23Assembly providing the additional funding required under this
24subsection. The Commission on Government Forecasting and
25Accountability shall analyze whether adequate additional
26funding has been provided for the new benefit increase and

 

 

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

 

 

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1benefit increase was in effect.
2(Source: P.A. 94-4, eff. 6-1-05.)
 
3    (40 ILCS 5/16-106.4 new)
4    Sec. 16-106.4. Tier I member. "Tier I member": A member
5under this Article who first became a member or participant
6before January 1, 2011 under any reciprocal retirement system
7or pension fund established under this Code other than a
8retirement system or pension fund established under Article 2,
93, 4, 5, 6, or 18 of this Code.
 
10    (40 ILCS 5/16-106.5 new)
11    Sec. 16-106.5. Tier I retiree. "Tier I retiree": A former
12Tier I member who is receiving a retirement annuity.
 
13    (40 ILCS 5/16-106.6 new)
14    Sec. 16-106.6. Tier 3 employee. "Tier 3 employee": A
15teacher who first becomes a member on or after January 1, 2014
16and is subject to Section 16-152.8 of this Article; and a
17teacher who first became a member on or after January 1, 2011
18but before January 1, 2014 and has elected to transfer his or
19her pension credits to the Tier 3 retirement plan.
 
20    (40 ILCS 5/16-121)  (from Ch. 108 1/2, par. 16-121)
21    Sec. 16-121. Salary. "Salary": The actual compensation
22received by a teacher during any school year and recognized by

 

 

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1the system in accordance with rules of the board. For purposes
2of this Section, "school year" includes the regular school term
3plus any additional period for which a teacher is compensated
4and such compensation is recognized by the rules of the board.
5    Notwithstanding any other provision of this Code, the
6salary of a Tier I member or Tier 3 employee for the purposes
7of this Code shall not exceed, for periods of service on or
8after the effective date of this amendatory Act of the 98th
9General Assembly, the greater of (i) the annual contribution
10and benefit base established for the applicable year by the
11Commissioner of Social Security under the federal Social
12Security Act or (ii) the annual salary of the member during the
13365 days immediately preceding that effective date; except that
14this limitation does not apply to a member's salary that is
15determined under an employment contract or collective
16bargaining agreement that is in effect on the effective date of
17this amendatory Act of the 98th General Assembly and has not
18been amended or renewed after that date.
19(Source: P.A. 84-1028.)
 
20    (40 ILCS 5/16-132)  (from Ch. 108 1/2, par. 16-132)
21    Sec. 16-132. Retirement annuity eligibility.
22    (a) A member who has at least 20 years of creditable
23service is entitled to a retirement annuity upon or after
24attainment of age 55. A member who has at least 10 but less
25than 20 years of creditable service is entitled to a retirement

 

 

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1annuity upon or after attainment of age 60. A member who has at
2least 5 but less than 10 years of creditable service is
3entitled to a retirement annuity upon or after attainment of
4age 62. A member who (i) has earned during the period
5immediately preceding the last day of service at least one year
6of contributing creditable service as an employee of a
7department as defined in Section 14-103.04, (ii) has earned at
8least 5 years of contributing creditable service as an employee
9of a department as defined in Section 14-103.04, and (iii)
10retires on or after January 1, 2001 is entitled to a retirement
11annuity upon or after attainment of an age which, when added to
12the number of years of his or her total creditable service,
13equals at least 85. Portions of years shall be counted as
14decimal equivalents.
15    A member who is eligible to receive a retirement annuity of
16at least 74.6% of final average salary and will attain age 55
17on or before December 31 during the year which commences on
18July 1 shall be deemed to attain age 55 on the preceding June
191.
20    (b) Notwithstanding subsection (a) of this Section, for a
21Tier I member who begins receiving a retirement annuity under
22this Article after July 1, 2013:
23        (1) If the Tier I member is at least 45 years old on
24    the effective date of this amendatory Act of the 98th
25    General Assembly, then the references to age 55, 60, and 62
26    in subsection (a) of this Section remain unchanged and the

 

 

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

 

 

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1the board setting forth the date the member wishes the
2retirement annuity to commence. However, the effective date of
3the retirement annuity shall be no earlier than the day
4following the last day of creditable service, regardless of the
5date of official termination of employment.
6    (d) To be eligible for a retirement annuity, a member shall
7not be employed as a teacher in the schools included under this
8System or under Article 17, except (i) as provided in Section
916-118 or 16-150.1, (ii) if the member is disabled (in which
10event, eligibility for salary must cease), or (iii) if the
11System is required by federal law to commence payment due to
12the member's age; the changes to this sentence made by Public
13Act 93-320 this amendatory Act of the 93rd General Assembly
14apply without regard to whether the member terminated
15employment before or after its effective date.
16(Source: P.A. 93-320, eff. 7-23-03.)
 
17    (40 ILCS 5/16-133)  (from Ch. 108 1/2, par. 16-133)
18    Sec. 16-133. Retirement annuity; amount.
19    (a) The amount of the retirement annuity shall be (i) in
20the case of a person who first became a teacher under this
21Article before July 1, 2005, the larger of the amounts
22determined under paragraphs (A) and (B) below, or (ii) in the
23case of a person who first becomes a teacher under this Article
24on or after July 1, 2005, the amount determined under the
25applicable provisions of paragraph (B):

 

 

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

 

 

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1    becomes a teacher under this Article on or after July 1,
2    2005.
3        (B) An amount consisting of the greater of the
4    following:
5            (1) For creditable service earned before July 1,
6        1998 that has not been augmented under Section
7        16-129.1: 1.67% of final average salary for each of the
8        first 10 years of creditable service, 1.90% of final
9        average salary for each year in excess of 10 but not
10        exceeding 20, 2.10% of final average salary for each
11        year in excess of 20 but not exceeding 30, and 2.30% of
12        final average salary for each year in excess of 30; and
13            For creditable service earned on or after July 1,
14        1998 by a member who has at least 24 years of
15        creditable service on July 1, 1998 and who does not
16        elect to augment service under Section 16-129.1: 2.2%
17        of final average salary for each year of creditable
18        service earned on or after July 1, 1998 but before the
19        member reaches a total of 30 years of creditable
20        service and 2.3% of final average salary for each year
21        of creditable service earned on or after July 1, 1998
22        and after the member reaches a total of 30 years of
23        creditable service; and
24            For all other creditable service: 2.2% of final
25        average salary for each year of creditable service; or
26            (2) 1.5% of final average salary for each year of

 

 

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

 

 

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

 

 

09800SB0035sam001- 175 -LRB098 05472 EFG 41210 a

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

 

 

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1    retirement or January 1, 1972, whichever is later, until
2    January 1, 1978, plus
3        (3) 3% of the originally granted annuity multiplied by
4    the number of years elapsed from the date of retirement or
5    January 1, 1978, whichever is later, until the effective
6    date of the initial increase.
7However, the initial annual increase calculated under this
8Section for the recipient of a disability retirement annuity
9granted under Section 16-149.2 shall be reduced by an amount
10equal to the total of all increases in that annuity received
11under Section 16-149.5 (but not exceeding 100% of the amount of
12the initial increase otherwise provided under this Section).
13    Following the initial increase, automatic annual increases
14in annuity shall be payable on each January 1 thereafter during
15the lifetime of the annuitant, determined as a percentage of
16the originally granted retirement annuity or disability
17retirement annuity for increases granted prior to January 1,
181990, and calculated as a percentage of the total amount of
19annuity, including previous increases under this Section, for
20increases granted on or after January 1, 1990, as follows: 1.5%
21for periods prior to January 1, 1972, 2% for periods after
22December 31, 1971 and prior to January 1, 1978, and 3% for
23periods after December 31, 1977, or as provided in subsections
24(a-1) and (a-2).
25    (a-1) Notwithstanding any other provision of this Article,
26for a Tier I retiree, the amount of each automatic annual

 

 

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1increase in retirement annuity occurring on or after the
2effective date of this amendatory Act of the 98th General
3Assembly shall be the lesser of $750 or 3% of the total annuity
4payable at the time of the increase, including previous
5increases granted.
6    (a-2) Notwithstanding any other provision of this Article,
7for a Tier I retiree, the monthly retirement annuity shall
8first be subject to annual increases on the January 1 occurring
9on or next after the attainment of age 67 or the January 1
10occurring on or next after the fifth anniversary of the annuity
11start date, whichever occurs earlier. If on the effective date
12of this amendatory Act of the 98th General Assembly a Tier I
13retiree has already received an annual increase under this
14Section but does not yet meet the new eligibility requirements
15of this subsection, 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 Section 1-103.1, subsections (a-1)
20and (a-2) apply without regard to whether or not the Tier I
21retiree is in active service under this Article on or after the
22effective date of this amendatory Act of the 98th General
23Assembly.
24    (b) The automatic annual increases in annuity provided
25under this Section shall not be applicable unless a member has
26made contributions toward such increases for a period

 

 

09800SB0035sam001- 178 -LRB098 05472 EFG 41210 a

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

 

 

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1year of creditable service.
2    On January 1, 1987, any annuitant whose retirement annuity
3began on or before January 1, 1977, shall receive an increase
4in the monthly retirement annuity equal to 8 per year of
5creditable service times the number of years that have elapsed
6since the annuity began.
7(Source: P.A. 91-927, eff. 12-14-00.)
 
8    (40 ILCS 5/16-152)  (from Ch. 108 1/2, par. 16-152)
9    Sec. 16-152. Contributions by members.
10    (a) Each member shall make contributions for membership
11service to this System as follows:
12        (1) Effective July 1, 1998, contributions of 7.50% of
13    salary towards the cost of the retirement annuity. Such
14    contributions shall be deemed "normal contributions".
15        (2) Effective July 1, 1969, contributions of 1/2 of 1%
16    of salary toward the cost of the automatic annual increase
17    in retirement annuity provided under Section 16-133.1.
18        (3) Effective July 24, 1959, contributions of 1% of
19    salary towards the cost of survivor benefits. Such
20    contributions shall not be credited to the individual
21    account of the member and shall not be subject to refund
22    except as provided under Section 16-143.2.
23        (4) Effective July 1, 2005, contributions of 0.40% of
24    salary toward the cost of the early retirement without
25    discount option provided under Section 16-133.2. This

 

 

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1    contribution shall cease upon termination of the early
2    retirement without discount option as provided in Section
3    16-176.
4    (a-5) In addition to the contributions otherwise required
5under this Article, each Tier I member shall also make the
6following contributions toward the cost of the retirement
7annuity from each payment of salary:
8        (1) beginning July 1, 2013 and through June 30, 2014,
9    1% of salary; and
10        (2) beginning on July 1, 2014, 2% of salary.
11    Except as otherwise specified, these contributions are to
12be considered as normal contributions for purposes of this
13Article.
14    (b) The minimum required contribution for any year of
15full-time teaching service shall be $192.
16    (c) Contributions shall not be required of any annuitant
17receiving a retirement annuity who is given employment as
18permitted under Section 16-118 or 16-150.1.
19    (d) A person who (i) was a member before July 1, 1998, (ii)
20retires with more than 34 years of creditable service, and
21(iii) does not elect to qualify for the augmented rate under
22Section 16-129.1 shall be entitled, at the time of retirement,
23to receive a partial refund of contributions made under this
24Section for service occurring after the later of June 30, 1998
25or attainment of 34 years of creditable service, in an amount
26equal to 1.00% of the salary upon which those contributions

 

 

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

 

 

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1    16-133.2 is terminated under Section 16-176.
2(Source: P.A. 93-320, eff. 7-23-03; 94-4, eff. 6-1-05.)
 
3    (40 ILCS 5/16-152.8 new)
4    Sec. 16-152.8. Tier 3 retirement plan.
5    (a) Contents of Tier 3 retirement plan. The Tier 3
6retirement plan consists of a defined-benefit component and a
7defined-contribution component; both components apply to all
8participants in the Tier 3 retirement plan. The plan also
9includes provisions relating to contributions and refunds.
10    The defined-benefit component includes a retirement
11annuity as provided under this Section, a surviving spouse
12annuity as provided under this Section, and a disability
13benefit as provided in this Section.
14    The defined-contribution component shall be a defined
15contribution plan that shall be established by the System. Each
16participant shall have an individual account whose assets are
17managed by the System, which shall design a target-date or
18life-cycle investment allocation mechanism for this plan. This
19mechanism shall invest all assets in participants' defined
20contribution accounts in vehicles already in use by the
21System's defined-benefit Fund, but the specific allocation
22will vary with the participant's age, with more aggressive
23investments for younger participants and more conservative
24investments for older participants.
25    The balance in a participant's defined-contribution

 

 

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

 

 

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1depend upon the benefit package or plan. A participant in the
2Tier 3 retirement plan is entitled to the applicable benefits
3of Article 20 of this Code.
4    The Tier 3 retirement plan is subject to the provisions of
5Article 1 of this Code that apply to retirement systems
6generally and must be qualified under the Internal Revenue Code
7of 1986.
8    (b) Definitions. As used in this Section:
9    "Consumer Price Index-U" means the Consumer Price Index
10published by the Bureau of Labor Statistics of the United
11States Department of Labor that measures the average change in
12prices of goods and services purchased by all urban consumers,
13United States city average, all items, 1982-84 = 100.
14    "Final average salary" means:
15        (1) for a teacher who is paid on an hourly basis or who
16    receives an annual salary in installments during 12 months
17    of each school year, the average annual salary obtained by
18    dividing by 8 the total salary of the teacher during the 96
19    consecutive months in which the total salary was the
20    highest within the last 120 months prior to termination;
21        (2) for any other teacher, the average annual salary
22    during the 8 consecutive school years within the 10 years
23    prior to termination in which the teacher's salary was the
24    highest; and
25        (3) for a teacher with less than 96 consecutive months
26    or 8 consecutive school years of service, whichever is

 

 

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

 

 

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

 

 

09800SB0035sam001- 187 -LRB098 05472 EFG 41210 a

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

 

 

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

 

 

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

 

 

09800SB0035sam001- 190 -LRB098 05472 EFG 41210 a

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

 

 

09800SB0035sam001- 191 -LRB098 05472 EFG 41210 a

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

 

 

09800SB0035sam001- 192 -LRB098 05472 EFG 41210 a

1units.
2    (a) The State shall make contributions to the System by
3means of appropriations from the Common School Fund and other
4State funds of amounts which, together with other employer
5contributions, employee contributions, investment income, and
6other income, will be sufficient to meet the cost of
7maintaining and administering the System on a 100% 90% funded
8basis in accordance with actuarial recommendations by the end
9of State fiscal year 2043.
10    The Board shall determine the amount of State contributions
11required for each fiscal year on the basis of the actuarial
12tables and other assumptions adopted by the Board and the
13recommendations of the actuary, using the formula in subsection
14(b-3).
15    (a-1) Annually, on or before November 15 through until
16November 15, 2011, the Board shall certify to the Governor the
17amount of the required State contribution for the coming fiscal
18year. The certification under this subsection (a-1) shall
19include a copy of the actuarial recommendations upon which it
20is based and shall specifically identify the System's projected
21State normal cost for that fiscal year.
22    On or before May 1, 2004, the Board shall recalculate and
23recertify to the Governor the amount of the required State
24contribution to the System for State fiscal year 2005, taking
25into account the amounts appropriated to and received by the
26System under subsection (d) of Section 7.2 of the General

 

 

09800SB0035sam001- 193 -LRB098 05472 EFG 41210 a

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

 

 

09800SB0035sam001- 194 -LRB098 05472 EFG 41210 a

1General Assembly the amount of the required State contribution
2for the next fiscal year. The certification shall include a
3copy of the actuarial recommendations upon which it is based
4and shall specifically identify the System's projected State
5normal cost for that fiscal year. The Board's certification
6must note any deviations from the State Actuary's recommended
7changes, the reason or reasons for not following the State
8Actuary's recommended changes, and the fiscal impact of not
9following the State Actuary's recommended changes on the
10required State contribution.
11    (b) Through State fiscal year 1995, the State contributions
12shall be paid to the System in accordance with Section 18-7 of
13the School Code.
14    (b-1) Beginning in State fiscal year 1996, on the 15th day
15of each month, or as soon thereafter as may be practicable, the
16Board shall submit vouchers for payment of State contributions
17to the System, in a total monthly amount of one-twelfth of the
18required annual State contribution certified under subsection
19(a-1). From the effective date of this amendatory Act of the
2093rd General Assembly through June 30, 2004, the Board shall
21not submit vouchers for the remainder of fiscal year 2004 in
22excess of the fiscal year 2004 certified contribution amount
23determined under this Section after taking into consideration
24the transfer to the System under subsection (a) of Section
256z-61 of the State Finance Act. These vouchers shall be paid by
26the State Comptroller and Treasurer by warrants drawn on the

 

 

09800SB0035sam001- 195 -LRB098 05472 EFG 41210 a

1funds appropriated to the System for that fiscal year.
2    If in any month the amount remaining unexpended from all
3other appropriations to the System for the applicable fiscal
4year (including the appropriations to the System under Section
58.12 of the State Finance Act and Section 1 of the State
6Pension Funds Continuing Appropriation Act) is less than the
7amount lawfully vouchered under this subsection, the
8difference shall be paid from the Common School Fund under the
9continuing appropriation authority provided in Section 1.1 of
10the State Pension Funds Continuing Appropriation Act.
11    (b-2) Allocations from the Common School Fund apportioned
12to school districts not coming under this System shall not be
13diminished or affected by the provisions of this Article.
14    (b-3) For State fiscal years 2014 through 2043, the minimum
15contribution to the System to be made by the State for each
16fiscal year shall be an amount determined by the System to be
17equal to the sum of (1) the State's portion of the projected
18normal cost for that fiscal year, plus (2) an amount sufficient
19to bring the total assets of the System up to 100% of the total
20actuarial liabilities of the System by the end of State fiscal
21year 2043. In making these determinations, the required State
22contribution shall be calculated each year as a level
23percentage of payroll over the years remaining to and including
24fiscal year 2043 and shall be determined under the projected
25unit credit actuarial cost method.
26    Beginning in State fiscal year 2044, the minimum State

 

 

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1contribution for each fiscal year shall be the amount needed to
2maintain the total assets of the System at 100% of the total
3actuarial liabilities of the System.
4    For State fiscal years 2012 and 2013 through 2045, the
5minimum contribution to the System to be made by the State for
6each fiscal year shall be an amount determined by the System to
7be sufficient to bring the total assets of the System up to 90%
8of the total actuarial liabilities of the System by the end of
9State fiscal year 2045. In making these determinations, the
10required State contribution shall be calculated each year as a
11level percentage of payroll over the years remaining to and
12including fiscal year 2045 and shall be determined under the
13projected unit credit actuarial cost method.
14    For State fiscal years 1996 through 2005, the State
15contribution to the System, as a percentage of the applicable
16employee payroll, shall be increased in equal annual increments
17so that by State fiscal year 2011, the State is contributing at
18the rate required under this Section; except that in the
19following specified State fiscal years, the State contribution
20to the System shall not be less than the following indicated
21percentages of the applicable employee payroll, even if the
22indicated percentage will produce a State contribution in
23excess of the amount otherwise required under this subsection
24and subsection (a), and notwithstanding any contrary
25certification made under subsection (a-1) before the effective
26date of this amendatory Act of 1998: 10.02% in FY 1999; 10.77%

 

 

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1in FY 2000; 11.47% in FY 2001; 12.16% in FY 2002; 12.86% in FY
22003; and 13.56% in FY 2004.
3    Notwithstanding any other provision of this Article, the
4total required State contribution for State fiscal year 2006 is
5$534,627,700.
6    Notwithstanding any other provision of this Article, the
7total required State contribution for State fiscal year 2007 is
8$738,014,500.
9    For each of State fiscal years 2008 through 2009, the State
10contribution to the System, as a percentage of the applicable
11employee payroll, shall be increased in equal annual increments
12from the required State contribution for State fiscal year
132007, so that by State fiscal year 2011, the State is
14contributing at the rate otherwise required under this Section.
15    Notwithstanding any other provision of this Article, the
16total required State contribution for State fiscal year 2010 is
17$2,089,268,000 and shall be made from the proceeds of bonds
18sold in fiscal year 2010 pursuant to Section 7.2 of the General
19Obligation Bond Act, less (i) the pro rata share of bond sale
20expenses determined by the System's share of total bond
21proceeds, (ii) any amounts received from the Common School Fund
22in fiscal year 2010, and (iii) any reduction in bond proceeds
23due to the issuance of discounted bonds, if applicable.
24    Notwithstanding any other provision of this Article, the
25total required State contribution for State fiscal year 2011 is
26the amount recertified by the System on or before April 1, 2011

 

 

09800SB0035sam001- 198 -LRB098 05472 EFG 41210 a

1pursuant to subsection (a-1) of this Section and shall be made
2from the proceeds of bonds sold in fiscal year 2011 pursuant to
3Section 7.2 of the General Obligation Bond Act, less (i) the
4pro rata share of bond sale expenses determined by the System's
5share of total bond proceeds, (ii) any amounts received from
6the Common School Fund in fiscal year 2011, and (iii) any
7reduction in bond proceeds due to the issuance of discounted
8bonds, if applicable. This amount shall include, in addition to
9the amount certified by the System, an amount necessary to meet
10employer contributions required by the State as an employer
11under paragraph (e) of this Section, which may also be used by
12the System for contributions required by paragraph (a) of
13Section 16-127.
14    Beginning in State fiscal year 2046, the minimum State
15contribution for each fiscal year shall be the amount needed to
16maintain the total assets of the System at 90% of the total
17actuarial liabilities of the System.
18    Amounts received by the System pursuant to Section 25 of
19the Budget Stabilization Act or Section 8.12 of the State
20Finance Act in any fiscal year do not reduce and do not
21constitute payment of any portion of the minimum State
22contribution required under this Article in that fiscal year.
23Such amounts shall not reduce, and shall not be included in the
24calculation of, the required State contributions under this
25Article in any future year until the System has reached a
26funding ratio of at least 100% 90%. A reference in this Article

 

 

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

 

 

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1Act, so that, by State fiscal year 2011, the State is
2contributing at the rate otherwise required under this Section.
3    (c) Payment of the required State contributions and of all
4pensions, retirement annuities, death benefits, refunds, and
5other benefits granted under or assumed by this System, and all
6expenses in connection with the administration and operation
7thereof, are obligations of the State.
8    If members are paid from special trust or federal funds
9which are administered by the employing unit, whether school
10district or other unit, the employing unit shall pay to the
11System from such funds the full accruing retirement costs based
12upon that service, as determined by the System. Employer
13contributions, based on salary paid to members from federal
14funds, may be forwarded by the distributing agency of the State
15of Illinois to the System prior to allocation, in an amount
16determined in accordance with guidelines established by such
17agency and the System.
18    (d) Effective July 1, 1986, any employer of a teacher as
19defined in paragraph (8) of Section 16-106 shall pay the
20employer's normal cost of benefits based upon the teacher's
21service, in addition to employee contributions, as determined
22by the System. Such employer contributions shall be forwarded
23monthly in accordance with guidelines established by the
24System.
25    However, with respect to benefits granted under Section
2616-133.4 or 16-133.5 to a teacher as defined in paragraph (8)

 

 

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1of Section 16-106, the employer's contribution shall be 12%
2(rather than 20%) of the member's highest annual salary rate
3for each year of creditable service granted, and the employer
4shall also pay the required employee contribution on behalf of
5the teacher. For the purposes of Sections 16-133.4 and
616-133.5, a teacher as defined in paragraph (8) of Section
716-106 who is serving in that capacity while on leave of
8absence from another employer under this Article shall not be
9considered an employee of the employer from which the teacher
10is on leave.
11    (e) Beginning July 1, 1998, every employer of a teacher
12shall pay to the System an employer contribution computed as
13follows:
14        (1) Beginning July 1, 1998 through June 30, 1999, the
15    employer contribution shall be equal to 0.3% of each
16    teacher's salary.
17        (2) Beginning July 1, 1999 and thereafter, the employer
18    contribution shall be equal to 0.58% of each teacher's
19    salary.
20The school district or other employing unit may pay these
21employer contributions out of any source of funding available
22for that purpose and shall forward the contributions to the
23System on the schedule established for the payment of member
24contributions.
25    These employer contributions are intended to offset a
26portion of the cost to the System of the increases in

 

 

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1retirement benefits resulting from this amendatory Act of 1998.
2    Each employer of teachers is entitled to a credit against
3the contributions required under this subsection (e) with
4respect to salaries paid to teachers for the period January 1,
52002 through June 30, 2003, equal to the amount paid by that
6employer under subsection (a-5) of Section 6.6 of the State
7Employees Group Insurance Act of 1971 with respect to salaries
8paid to teachers for that period.
9    The additional 1% employee contribution required under
10Section 16-152 by this amendatory Act of 1998 is the
11responsibility of the teacher and not the teacher's employer,
12unless the employer agrees, through collective bargaining or
13otherwise, to make the contribution on behalf of the teacher.
14    If an employer is required by a contract in effect on May
151, 1998 between the employer and an employee organization to
16pay, on behalf of all its full-time employees covered by this
17Article, all mandatory employee contributions required under
18this Article, then the employer shall be excused from paying
19the employer contribution required under this subsection (e)
20for the balance of the term of that contract. The employer and
21the employee organization shall jointly certify to the System
22the existence of the contractual requirement, in such form as
23the System may prescribe. This exclusion shall cease upon the
24termination, extension, or renewal of the contract at any time
25after May 1, 1998.
26    (f) If the amount of a teacher's salary for any school year

 

 

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

 

 

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

 

 

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1    When assessing payment for any amount due under subsection
2(f), the System shall exclude salary increases paid to teachers
3under contracts or collective bargaining agreements entered
4into, amended, or renewed before June 1, 2005.
5    When assessing payment for any amount due under subsection
6(f), the System shall exclude salary increases paid to a
7teacher at a time when the teacher is 10 or more years from
8retirement eligibility under Section 16-132 or 16-133.2.
9    When assessing payment for any amount due under subsection
10(f), the System shall exclude salary increases resulting from
11overload work, including summer school, when the school
12district has certified to the System, and the System has
13approved the certification, that (i) the overload work is for
14the sole purpose of classroom instruction in excess of the
15standard number of classes for a full-time teacher in a school
16district during a school year and (ii) the salary increases are
17equal to or less than the rate of pay for classroom instruction
18computed on the teacher's current salary and work schedule.
19    When assessing payment for any amount due under subsection
20(f), the System shall exclude a salary increase resulting from
21a promotion (i) for which the employee is required to hold a
22certificate or supervisory endorsement issued by the State
23Teacher Certification Board that is a different certification
24or supervisory endorsement than is required for the teacher's
25previous position and (ii) to a position that has existed and
26been filled by a member for no less than one complete academic

 

 

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

 

 

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1    changes made to this Section by Public Act 94-1057 for each
2    employer.
3        (2) The dollar amount by which each employer's
4    contribution to the System was changed due to
5    recalculations required by Public Act 94-1057.
6        (3) The total amount the System received from each
7    employer as a result of the changes made to this Section by
8    Public Act 94-4.
9        (4) The increase in the required State contribution
10    resulting from the changes made to this Section by Public
11    Act 94-1057.
12    (j) 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    (k) 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.

 

 

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1(Source: P.A. 96-43, eff. 7-15-09; 96-1497, eff. 1-14-11;
296-1511, eff. 1-27-11; 96-1554, eff. 3-18-11; 97-694, eff.
36-18-12; 97-813, eff. 7-13-12.)
 
4    (40 ILCS 5/16-158.1)  (from Ch. 108 1/2, par. 16-158.1)
5    Sec. 16-158.1. Actions to enforce payments by school
6districts and other employing units other than the State. Any
7school district or other employing unit, other than the State,
8that fails failing to transmit to the System contributions
9required of it under this Article or contributions required of
10teachers, for more than 90 days after such contributions are
11due is subject to the following: after giving notice to the
12district or other unit, the System may certify to the State
13Comptroller or the Regional Superintendent of Schools the
14amounts of such delinquent payments and the State Comptroller
15or the Regional Superintendent of Schools shall deduct the
16amounts so certified or any part thereof from any State funds
17to be remitted to the school district or other employing unit
18involved and shall pay the amount so deducted to the System. If
19State funds from which such deductions may be made are not
20available, the System may proceed against the school district
21or other employing unit to recover the amounts of such
22delinquent payments in the appropriate circuit court.
23    The System may provide for an audit of the records of a
24school district or other employing unit, other than the State,
25as may be required to establish the amounts of required

 

 

09800SB0035sam001- 209 -LRB098 05472 EFG 41210 a

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

 

 

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1that payment, irrespective of other remedies that may be
2available to the System. In ordering the State to make the
3required 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 Section are expressly subordinated to the payment of the
9principal, interest, and premium, if any, on any bonded debt
10obligation 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    (40 ILCS 5/16-203)
22    Sec. 16-203. Application and expiration of new benefit
23increases.
24    (a) As used in this Section, "new benefit increase" means
25an increase in the amount of any benefit provided under this

 

 

09800SB0035sam001- 211 -LRB098 05472 EFG 41210 a

1Article, or an expansion of the conditions of eligibility for
2any benefit under this Article, that results from an amendment
3to this Code that takes effect after June 1, 2005 (the
4effective date of Public Act 94-4). "New benefit increase",
5however, does not include any benefit increase resulting from
6the changes made to this Article or Article 1 by Public Act
795-910 or this amendatory Act of the 98th 95th General
8Assembly.
9    (b) Notwithstanding any other provision of this Code or any
10subsequent amendment to this Code, every new benefit increase
11is subject to this Section and shall be deemed to be granted
12only in conformance with and contingent upon compliance with
13the provisions of this Section.
14    (c) The Public Act enacting a new benefit increase must
15identify and provide for payment to the System of additional
16funding at least sufficient to fund the resulting annual
17increase in cost to the System as it accrues.
18    Every new benefit increase is contingent upon the General
19Assembly providing the additional funding required under this
20subsection. The Commission on Government Forecasting and
21Accountability shall analyze whether adequate additional
22funding has been provided for the new benefit increase and
23shall report its analysis to the Public Pension Division of the
24Department of Financial and Professional Regulation. A new
25benefit increase created by a Public Act that does not include
26the additional funding required under this subsection is null

 

 

09800SB0035sam001- 212 -LRB098 05472 EFG 41210 a

1and void. If the Public Pension Division determines that the
2additional funding provided for a new benefit increase under
3this subsection is or has become inadequate, it may so certify
4to the Governor and the State Comptroller and, in the absence
5of corrective action by the General Assembly, the new benefit
6increase shall expire at the end of the fiscal year in which
7the certification is made.
8    (d) Every new benefit increase shall expire 5 years after
9its effective date or on such earlier date as may be specified
10in the language enacting the new benefit increase or provided
11under subsection (c). This does not prevent the General
12Assembly from extending or re-creating a new benefit increase
13by law.
14    (e) Except as otherwise provided in the language creating
15the new benefit increase, a new benefit increase that expires
16under this Section continues to apply to persons who applied
17and qualified for the affected benefit while the new benefit
18increase was in effect and to the affected beneficiaries and
19alternate payees of such persons, but does not apply to any
20other person, including without limitation a person who
21continues in service after the expiration date and did not
22apply and qualify for the affected benefit while the new
23benefit increase was in effect.
24(Source: P.A. 94-4, eff. 6-1-05; 95-910, eff. 8-26-08.)
 
25    (40 ILCS 5/20-121)  (from Ch. 108 1/2, par. 20-121)

 

 

09800SB0035sam001- 213 -LRB098 05472 EFG 41210 a

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

 

 

09800SB0035sam001- 214 -LRB098 05472 EFG 41210 a

1    Interest on pension credit shall continue to accumulate in
2accordance with the provisions of the law governing the
3retirement system in which the same has been established during
4the time an employee is in the service of another employer, on
5the assumption such employee, for interest purposes for pension
6credit, is continuing in the service covered by such retirement
7system.
8(Source: P.A. 91-887, eff. 7-6-00.)
 
9    (40 ILCS 5/20-123)  (from Ch. 108 1/2, par. 20-123)
10    Sec. 20-123. Survivor's annuity. The provisions governing
11a retirement annuity shall be applicable to a survivor's
12annuity. Appropriate credits shall be established for
13survivor's annuity purposes in those participating systems
14which provide survivor's annuities, according to the same
15conditions and subject to the same limitations and restrictions
16herein prescribed for a retirement annuity. If a participating
17system has no survivor's annuity benefit, or if the survivor's
18annuity benefit under that system is waived, pension credit
19established in that system shall not be considered in
20determining eligibility for or the amount of the survivor's
21annuity which may be payable by any other participating system.
22    For persons who participate in the self-managed plan
23established under Section 15-158.2 or the portable benefit
24package established under Section 15-136.4, or in a Tier 3
25retirement plan established under Section 15-158.5, pension

 

 

09800SB0035sam001- 215 -LRB098 05472 EFG 41210 a

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

 

 

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1the aggregate of all such annuities.
2    (b) In the case of a participant in the self-managed plan
3established under Section 15-158.2 of this Code to whom the
4provisions of this Article apply:
5        (i) For purposes of calculating the combined
6    retirement annuity and the proportionate reduction, if
7    any, in a retirement annuity other than one payable under
8    the self-managed plan, the amount of the Article 15
9    retirement annuity shall be deemed to be the highest
10    annuity to which the annuitant would have been entitled if
11    he or she had participated in the traditional benefit
12    package as defined in Section 15-103.1 rather than the
13    self-managed plan.
14        (ii) For purposes of calculating the combined
15    survivor's annuity and the proportionate reduction, if
16    any, in a survivor's annuity other than one payable under
17    the self-managed plan, the amount of the Article 15
18    survivor's annuity shall be deemed to be the highest
19    survivor's annuity to which the survivor would have been
20    entitled if the deceased employee had participated in the
21    traditional benefit package as defined in Section 15-103.1
22    rather than the self-managed plan.
23        (iii) Benefits payable under the self-managed plan are
24    not subject to proportionate reduction under this Section.
25    (c) In the case of a participant in a Tier 3 retirement
26plan established under Section 15-158.5 of this Code to whom

 

 

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

 

 

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