HB1166eng 98TH GENERAL ASSEMBLY



 


 
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1    AN ACT concerning public employee benefits.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 1. Short title. This Act may be cited as the
5Pension Fund Solvency Act of 2013.
 
6    Section 6. The Illinois Pension Code is amended by changing
7Sections 2-119, 14-107, 14-108, 14-110, 15-135, 15-136,
816-132, and 16-133 and by adding Sections 2-105.1, 14-103.40,
915-107.1, and 16-106.4 as follows:
 
10    (40 ILCS 5/2-105.1 new)
11    Sec. 2-105.1. Tier I participant. "Tier I participant": A
12participant who first became a participant before January 1,
132011.
 
14    (40 ILCS 5/2-119)  (from Ch. 108 1/2, par. 2-119)
15    Sec. 2-119. Retirement annuity - conditions for
16eligibility.
17    (a) A participant whose service as a member is terminated,
18regardless of age or cause, is entitled to a retirement annuity
19beginning on the date specified by the participant in a written
20application subject to the following conditions:
21        1. The date the annuity begins does not precede the

 

 

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1    date of final termination of service, or is not more than
2    30 days before the receipt of the application by the board
3    in the case of annuities based on disability or one year
4    before the receipt of the application in the case of
5    annuities based on attained age;
6        2. The participant meets one of the following
7    eligibility requirements:
8        For a participant who first becomes a participant of
9    this System before January 1, 2011 (the effective date of
10    Public Act 96-889):
11            (A) He or she has attained age 55 and has at least
12        8 years of service credit;
13            (B) He or she has attained age 62 and terminated
14        service after July 1, 1971 with at least 4 years of
15        service credit; or
16            (C) He or she has completed 8 years of service and
17        has become permanently disabled and as a consequence,
18        is unable to perform the duties of his or her office.
19        For a participant who first becomes a participant of
20    this System on or after January 1, 2011 (the effective date
21    of Public Act 96-889), he or she has attained age 67 and
22    has at least 8 years of service credit.
23    (a-5) Notwithstanding subsection (a) of this Section, for a
24Tier I participant who begins receiving a retirement annuity
25under this Section after July 1, 2013:
26        (1) If the Tier I participant is at least 45 years old

 

 

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1    on the effective date of this amendatory Act of the 98th
2    General Assembly, then the references to age 55 and 62 in
3    subsection (a) of this Section remain unchanged.
4        (2) If the Tier I participant is at least 40 but less
5    than 45 years old on the effective date of this amendatory
6    Act of the 98th General Assembly, then the references to
7    age 55 and 62 in subsection (a) of this Section are
8    increased by one year.
9        (3) If the Tier I participant is at least 35 but less
10    than 40 years old on the effective date of this amendatory
11    Act of the 98th General Assembly, then the references to
12    age 55 and 62 in subsection (a) of this Section are
13    increased by 3 years.
14        (4) If the Tier I participant is less than 35 years old
15    on the effective date of this amendatory Act of the 98th
16    General Assembly, then the references to age 55 and 62 in
17    subsection (a) of this Section are increased by 5 years.
18    Notwithstanding Section 1-103.1, this subsection (a-5)
19applies without regard to whether or not the Tier I member is
20in active service under this Article on or after the effective
21date of this amendatory Act of the 98th General Assembly.
22    (a-10) (a-5) A participant who first becomes a participant
23of this System on or after January 1, 2011 (the effective date
24of Public Act 96-889) who has attained age 62 and has at least
258 years of service credit may elect to receive the lower
26retirement annuity provided in paragraph (c) of Section

 

 

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12-119.01 of this Code.
2    (b) A participant shall be considered permanently disabled
3only if: (1) disability occurs while in service and is of such
4a nature as to prevent him or her from reasonably performing
5the duties of his or her office at the time; and (2) the board
6has received a written certificate by at least 2 licensed
7physicians appointed by the board stating that the member is
8disabled and that the disability is likely to be permanent.
9(Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11.)
 
10    (40 ILCS 5/14-103.40 new)
11    Sec. 14-103.40. Tier I member. "Tier I member": A member of
12this System who first became a member or participant before
13January 1, 2011 under any reciprocal retirement system or
14pension fund established under this Code other than a
15retirement system or pension fund established under Article 2,
163, 4, 5, 6, or 18 of this Code.
 
17    (40 ILCS 5/14-107)  (from Ch. 108 1/2, par. 14-107)
18    Sec. 14-107. Retirement annuity - service and age -
19conditions.
20    (a) A member is entitled to a retirement annuity after
21having at least 8 years of creditable service.
22    (b) A member who has at least 35 years of creditable
23service may claim his or her retirement annuity at any age. A
24member having at least 8 years of creditable service but less

 

 

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

 

 

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1    40 years old on the effective date of this amendatory Act
2    of the 98th General Assembly, then the references to age 55
3    and 60 in subsection (b) of this Section are increased by 3
4    years and the references to 85 in subsection (b) are
5    increased to 91.
6        (4) If the Tier I member is less than 35 years old on
7    the effective date of this amendatory Act of the 98th
8    General Assembly, then the references to age 55 and 60 in
9    subsection (b) of this Section are increased by 5 years and
10    the references to 85 in subsection (b) are increased to 95.
11    Notwithstanding Section 1-103.1, this subsection (c)
12applies without regard to whether or not the Tier I member is
13in active service under this Article on or after the effective
14date of this amendatory Act of the 98th General Assembly.
15    (d) The allowance shall begin with the first full calendar
16month specified in the member's application therefor, the first
17day of which shall not be before the date of withdrawal as
18approved by the board. Regardless of the date of withdrawal,
19the allowance need not begin within one year of application
20therefor.
21(Source: P.A. 91-927, eff. 12-14-00.)
 
22    (40 ILCS 5/14-108)  (from Ch. 108 1/2, par. 14-108)
23    Sec. 14-108. Amount of retirement annuity. A member who has
24contributed to the System for at least 12 months shall be
25entitled to a prior service annuity for each year of certified

 

 

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1prior service credited to him, except that a member shall
2receive 1/3 of the prior service annuity for each year of
3service for which contributions have been made and all of such
4annuity shall be payable after the member has made
5contributions for a period of 3 years. Proportionate amounts
6shall be payable for service of less than a full year after
7completion of at least 12 months.
8    The total period of service to be considered in
9establishing the measure of prior service annuity shall include
10service credited in the Teachers' Retirement System of the
11State of Illinois and the State Universities Retirement System
12for which contributions have been made by the member to such
13systems; provided that at least 1 year of the total period of 3
14years prescribed for the allowance of a full measure of prior
15service annuity shall consist of membership service in this
16system for which credit has been granted.
17    (a) In the case of a member who retires on or after January
181, 1998 and is a noncovered employee, the retirement annuity
19for membership service and prior service shall be 2.2% of final
20average compensation for each year of service. Any service
21credit established as a covered employee shall be computed as
22stated in paragraph (b).
23    (b) In the case of a member who retires on or after January
241, 1998 and is a covered employee, the retirement annuity for
25membership service and prior service shall be computed as
26stated in paragraph (a) for all service credit established as a

 

 

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1noncovered employee; for service credit established as a
2covered employee it shall be 1.67% of final average
3compensation for each year of service.
4    (c) For a member retiring after attaining age 55 but before
5age 60 with at least 30 but less than 35 years of creditable
6service if retirement is before January 1, 2001, or with at
7least 25 but less than 30 years of creditable service if
8retirement is on or after January 1, 2001, the retirement
9annuity shall be reduced by 1/2 of 1% for each month that the
10member's age is under age 60 at the time of retirement. For
11members to whom subsection (c) of Section 14-107 applies, the
12references to age 55 and 60 in this subsection (c) are
13increased as provided in subsection (c) of Section 14-107.
14    (d) A retirement annuity shall not exceed 75% of final
15average compensation, subject to such extension as may result
16from the application of Section 14-114 or Section 14-115.
17    (e) The retirement annuity payable to any covered employee
18who is a member of the System and in service on January 1,
191969, or in service thereafter in 1969 as a result of
20legislation enacted by the Illinois General Assembly
21transferring the member to State employment from county
22employment in a county Department of Public Aid in counties of
233,000,000 or more population, under a plan of coordination with
24the Old Age, Survivors and Disability provisions thereof, if
25not fully insured for Old Age Insurance payments under the
26Federal Old Age, Survivors and Disability Insurance provisions

 

 

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1at the date of acceptance of a retirement annuity, shall not be
2less than the amount for which the member would have been
3eligible if coordination were not applicable.
4    (f) The retirement annuity payable to any covered employee
5who is a member of the System and in service on January 1,
61969, or in service thereafter in 1969 as a result of the
7legislation designated in the immediately preceding paragraph,
8if fully insured for Old Age Insurance payments under the
9Federal Social Security Act at the date of acceptance of a
10retirement annuity, shall not be less than an amount which when
11added to the Primary Insurance Benefit payable to the member
12upon attainment of age 65 under such Federal Act, will equal
13the annuity which would otherwise be payable if the coordinated
14plan of coverage were not applicable.
15    (g) In the case of a member who is a noncovered employee,
16the retirement annuity for membership service as a security
17employee of the Department of Corrections or security employee
18of the Department of Human Services shall be: if retirement
19occurs on or after January 1, 2001, 3% of final average
20compensation for each year of creditable service; or if
21retirement occurs before January 1, 2001, 1.9% of final average
22compensation for each of the first 10 years of service, 2.1%
23for each of the next 10 years of service, 2.25% for each year
24of service in excess of 20 but not exceeding 30, and 2.5% for
25each year in excess of 30; except that the annuity may be
26calculated under subsection (a) rather than this subsection (g)

 

 

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1if the resulting annuity is greater.
2    (h) In the case of a member who is a covered employee, the
3retirement annuity for membership service as a security
4employee of the Department of Corrections or security employee
5of the Department of Human Services shall be: if retirement
6occurs on or after January 1, 2001, 2.5% of final average
7compensation for each year of creditable service; if retirement
8occurs before January 1, 2001, 1.67% of final average
9compensation for each of the first 10 years of service, 1.90%
10for each of the next 10 years of service, 2.10% for each year
11of service in excess of 20 but not exceeding 30, and 2.30% for
12each year in excess of 30.
13    (i) For the purposes of this Section and Section 14-133 of
14this Act, the term "security employee of the Department of
15Corrections" and the term "security employee of the Department
16of Human Services" shall have the meanings ascribed to them in
17subsection (c) of Section 14-110.
18    (j) The retirement annuity computed pursuant to paragraphs
19(g) or (h) shall be applicable only to those security employees
20of the Department of Corrections and security employees of the
21Department of Human Services who have at least 20 years of
22membership service and who are not eligible for the alternative
23retirement annuity provided under Section 14-110. However,
24persons transferring to this System under Section 14-108.2 or
2514-108.2c who have service credit under Article 16 of this Code
26may count such service toward establishing their eligibility

 

 

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1under the 20-year service requirement of this subsection; but
2such service may be used only for establishing such
3eligibility, and not for the purpose of increasing or
4calculating any benefit.
5    (k) (Blank).
6    (l) The changes to this Section made by this amendatory Act
7of 1997 (changing certain retirement annuity formulas from a
8stepped rate to a flat rate) apply to members who retire on or
9after January 1, 1998, without regard to whether employment
10terminated before the effective date of this amendatory Act of
111997. An annuity shall not be calculated in steps by using the
12new flat rate for some steps and the superseded stepped rate
13for other steps of the same type of service.
14(Source: P.A. 91-927, eff. 12-14-00; 92-14, eff. 6-28-01.)
 
15    (40 ILCS 5/14-110)  (from Ch. 108 1/2, par. 14-110)
16    Sec. 14-110. Alternative retirement annuity.
17    (a) Any member who has withdrawn from service with not less
18than 20 years of eligible creditable service and has attained
19age 55, and any member who has withdrawn from service with not
20less than 25 years of eligible creditable service and has
21attained age 50, regardless of whether the attainment of either
22of the specified ages occurs while the member is still in
23service, shall be entitled to receive at the option of the
24member, in lieu of the regular or minimum retirement annuity, a
25retirement annuity computed as follows:

 

 

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1        (i) for periods of service as a noncovered employee: if
2    retirement occurs on or after January 1, 2001, 3% of final
3    average compensation for each year of creditable service;
4    if retirement occurs before January 1, 2001, 2 1/4% of
5    final average compensation for each of the first 10 years
6    of creditable service, 2 1/2% for each year above 10 years
7    to and including 20 years of creditable service, and 2 3/4%
8    for each year of creditable service above 20 years; and
9        (ii) for periods of eligible creditable service as a
10    covered employee: if retirement occurs on or after January
11    1, 2001, 2.5% of final average compensation for each year
12    of creditable service; if retirement occurs before January
13    1, 2001, 1.67% of final average compensation for each of
14    the first 10 years of such service, 1.90% for each of the
15    next 10 years of such service, 2.10% for each year of such
16    service in excess of 20 but not exceeding 30, and 2.30% for
17    each year in excess of 30.
18    Such annuity shall be subject to a maximum of 75% of final
19average compensation if retirement occurs before January 1,
202001 or to a maximum of 80% of final average compensation if
21retirement occurs on or after January 1, 2001.
22    These rates shall not be applicable to any service
23performed by a member as a covered employee which is not
24eligible creditable service. Service as a covered employee
25which is not eligible creditable service shall be subject to
26the rates and provisions of Section 14-108.

 

 

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

 

 

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

 

 

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

 

 

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1    amendatory Act of 1983 shall not operate to exclude any
2    noncovered employee who was an "air pilot" for the purposes
3    of this Section on January 1, 1984.
4        (4) The term "special agent" means any person who by
5    reason of employment by the Division of Narcotic Control,
6    the Bureau of Investigation or, after July 1, 1977, the
7    Division of Criminal Investigation, the Division of
8    Internal Investigation, the Division of Operations, or any
9    other Division or organizational entity in the Department
10    of State Police is vested by law with duties to maintain
11    public order, investigate violations of the criminal law of
12    this State, enforce the laws of this State, make arrests
13    and recover property. The term "special agent" includes any
14    title or position in the Department of State Police that is
15    held by an individual employed under the State Police Act.
16        (5) The term "investigator for the Secretary of State"
17    means any person employed by the Office of the Secretary of
18    State and vested with such investigative duties as render
19    him ineligible for coverage under the Social Security Act
20    by reason of Sections 218(d)(5)(A), 218(d)(8)(D) and
21    218(l)(1) of that Act.
22        A person who became employed as an investigator for the
23    Secretary of State between January 1, 1967 and December 31,
24    1975, and who has served as such until attainment of age
25    60, either continuously or with a single break in service
26    of not more than 3 years duration, which break terminated

 

 

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1    before January 1, 1976, shall be entitled to have his
2    retirement annuity calculated in accordance with
3    subsection (a), notwithstanding that he has less than 20
4    years of credit for such service.
5        (6) The term "Conservation Police Officer" means any
6    person employed by the Division of Law Enforcement of the
7    Department of Natural Resources and vested with such law
8    enforcement duties as render him ineligible for coverage
9    under the Social Security Act by reason of Sections
10    218(d)(5)(A), 218(d)(8)(D), and 218(l)(1) of that Act. The
11    term "Conservation Police Officer" includes the positions
12    of Chief Conservation Police Administrator and Assistant
13    Conservation Police Administrator.
14        (7) The term "investigator for the Department of
15    Revenue" means any person employed by the Department of
16    Revenue and vested with such investigative duties as render
17    him ineligible for coverage under the Social Security Act
18    by reason of Sections 218(d)(5)(A), 218(d)(8)(D) and
19    218(l)(1) of that Act.
20        The term "investigator for the Illinois Gaming Board"
21    means any person employed as such by the Illinois Gaming
22    Board and vested with such peace officer duties as render
23    the person ineligible for coverage under the Social
24    Security Act by reason of Sections 218(d)(5)(A),
25    218(d)(8)(D), and 218(l)(1) of that Act.
26        (8) The term "security employee of the Department of

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1    creditable service and age 55; or
2        (vi) beginning January 1, 1991, 25 years of eligible
3    creditable service and age 50, or 20 years of eligible
4    creditable service and age 55.
5    For members to whom subsection (a-5) of this Section
6applies, the references to age 50 and 55 in item (vi) of this
7subsection are increased as provided in subsection (a-5).
8    Persons who have service credit under Article 16 of this
9Code for service as a security employee of the Department of
10Corrections or the Department of Juvenile Justice, or the
11Department of Human Services in a position requiring
12certification as a teacher may count such service toward
13establishing their eligibility under the service requirements
14of this Section; but such service may be used only for
15establishing such eligibility, and not for the purpose of
16increasing or calculating any benefit.
17    (e) If a member enters military service while working in a
18position in which eligible creditable service may be earned,
19and returns to State service in the same or another such
20position, and fulfills in all other respects the conditions
21prescribed in this Article for credit for military service,
22such military service shall be credited as eligible creditable
23service for the purposes of the retirement annuity prescribed
24in this Section.
25    (f) For purposes of calculating retirement annuities under
26this Section, periods of service rendered after December 31,

 

 

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11968 and before October 1, 1975 as a covered employee in the
2position of special agent, conservation police officer, mental
3health police officer, or investigator for the Secretary of
4State, shall be deemed to have been service as a noncovered
5employee, provided that the employee pays to the System prior
6to retirement an amount equal to (1) the difference between the
7employee contributions that would have been required for such
8service as a noncovered employee, and the amount of employee
9contributions actually paid, plus (2) if payment is made after
10July 31, 1987, regular interest on the amount specified in item
11(1) from the date of service to the date of payment.
12    For purposes of calculating retirement annuities under
13this Section, periods of service rendered after December 31,
141968 and before January 1, 1982 as a covered employee in the
15position of investigator for the Department of Revenue shall be
16deemed to have been service as a noncovered employee, provided
17that the employee pays to the System prior to retirement an
18amount equal to (1) the difference between the employee
19contributions that would have been required for such service as
20a noncovered employee, and the amount of employee contributions
21actually paid, plus (2) if payment is made after January 1,
221990, regular interest on the amount specified in item (1) from
23the date of service to the date of payment.
24    (g) A State policeman may elect, not later than January 1,
251990, to establish eligible creditable service for up to 10
26years of his service as a policeman under Article 3, by filing

 

 

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

 

 

HB1166 Engrossed- 27 -LRB098 08855 EFG 38985 b

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

 

 

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1creditable service for up to 5 years of service as a police
2officer under Article 3, a policeman under Article 5, a
3sheriff's law enforcement employee under Article 7, a member of
4the county police department under Article 9, or a police
5officer under Article 15 by filing a written election with the
6Board and paying to the System an amount to be determined by
7the Board, equal to (i) the difference between the amount of
8employee and employer contributions transferred to the System
9under Section 3-110.6, 5-236, 7-139.8, 9-121.10, or 15-134.4
10and the amounts that would have been contributed had such
11contributions been made at the rates applicable to State
12policemen, plus (ii) interest thereon at the effective rate for
13each year, compounded annually, from the date of service to the
14date of payment.
15    Subject to the limitation in subsection (i), an
16investigator for the Office of the Attorney General, or an
17investigator for the Department of Revenue, may elect to
18establish eligible creditable service for up to 5 years of
19service as a police officer under Article 3, a policeman under
20Article 5, a sheriff's law enforcement employee under Article
217, or a member of the county police department under Article 9
22by filing a written election with the Board within 6 months
23after August 25, 2009 (the effective date of Public Act 96-745)
24and paying to the System an amount to be determined by the
25Board, equal to (i) the difference between the amount of
26employee and employer contributions transferred to the System

 

 

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

 

 

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

 

 

HB1166 Engrossed- 31 -LRB098 08855 EFG 38985 b

1written application with the Board by March 31, 1998,
2accompanied by evidence of eligibility acceptable to the Board
3and payment of an amount to be determined by the Board, equal
4to (1) employee contributions for the credit being established,
5based upon the applicant's salary on the first day as an
6alternative formula employee after the employment for which
7credit is being established and the rates then applicable to
8alternative formula employees, plus (2) an amount determined by
9the Board to be the employer's normal cost of the benefits
10accrued for the credit being established, plus (3) regular
11interest on the amounts in items (1) and (2) from the first day
12as an alternative formula employee after the employment for
13which credit is being established to the date of payment.
14    (l) Subject to the limitation in subsection (i), a security
15employee of the Department of Corrections may elect, not later
16than July 1, 1998, to establish eligible creditable service for
17up to 10 years of his or her service as a policeman under
18Article 3, by filing a written election with the Board,
19accompanied by payment of an amount to be determined by the
20Board, equal to (i) the difference between the amount of
21employee and employer contributions transferred to the System
22under Section 3-110.5, and the amounts that would have been
23contributed had such contributions been made at the rates
24applicable to security employees of the Department of
25Corrections, plus (ii) interest thereon at the effective rate
26for each year, compounded annually, from the date of service to

 

 

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1the date of payment.
2    (m) The amendatory changes to this Section made by this
3amendatory Act of the 94th General Assembly apply only to: (1)
4security employees of the Department of Juvenile Justice
5employed by the Department of Corrections before the effective
6date of this amendatory Act of the 94th General Assembly and
7transferred to the Department of Juvenile Justice by this
8amendatory Act of the 94th General Assembly; and (2) persons
9employed by the Department of Juvenile Justice on or after the
10effective date of this amendatory Act of the 94th General
11Assembly who are required by subsection (b) of Section 3-2.5-15
12of the Unified Code of Corrections to have a bachelor's or
13advanced degree from an accredited college or university with a
14specialization in criminal justice, education, psychology,
15social work, or a closely related social science or, in the
16case of persons who provide vocational training, who are
17required to have adequate knowledge in the skill for which they
18are providing the vocational training.
19    (n) A person employed in a position under subsection (b) of
20this Section who has purchased service credit under subsection
21(j) of Section 14-104 or subsection (b) of Section 14-105 in
22any other capacity under this Article may convert up to 5 years
23of that service credit into service credit covered under this
24Section by paying to the Fund an amount equal to (1) the
25additional employee contribution required under Section
2614-133, plus (2) the additional employer contribution required

 

 

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1under Section 14-131, plus (3) interest on items (1) and (2) at
2the actuarially assumed rate from the date of the service to
3the date of payment.
4(Source: P.A. 95-530, eff. 8-28-07; 95-1036, eff. 2-17-09;
596-37, eff. 7-13-09; 96-745, eff. 8-25-09; 96-1000, eff.
67-2-10.)
 
7    (40 ILCS 5/15-107.1 new)
8    Sec. 15-107.1. Tier I participant. "Tier I participant": A
9participant under this Article, other than a participant in the
10self-managed plan under Section 15-158.2, who first became a
11member or participant before January 1, 2011 under any
12reciprocal retirement system or pension fund established under
13this Code other than a retirement system or pension fund
14established under Article 2, 3, 4, 5, 6, or 18 of this Code.
 
15    (40 ILCS 5/15-135)  (from Ch. 108 1/2, par. 15-135)
16    Sec. 15-135. Retirement annuities - Conditions.
17    (a) A participant who retires in one of the following
18specified years with the specified amount of service is
19entitled to a retirement annuity at any age under the
20retirement program applicable to the participant:
21        35 years if retirement is in 1997 or before;
22        34 years if retirement is in 1998;
23        33 years if retirement is in 1999;
24        32 years if retirement is in 2000;

 

 

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

 

 

HB1166 Engrossed- 35 -LRB098 08855 EFG 38985 b

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

 

 

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

 

 

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1of interest in effect at the time the retirement annuity
2begins:
3        (i) the normal annuity which can be provided on an
4    actuarially equivalent basis, by the accumulated normal
5    contributions as of the date the annuity begins;
6        (ii) an annuity from employer contributions of an
7    amount equal to that which can be provided on an
8    actuarially equivalent basis from the accumulated normal
9    contributions made by the participant under Section
10    15-113.6 and Section 15-113.7 plus 1.4 times all other
11    accumulated normal contributions made by the participant;
12    and
13        (iii) the annuity that can be provided on an
14    actuarially equivalent basis from the entire contribution
15    made by the participant under Section 15-113.3.
16    With respect to a police officer or firefighter who retires
17on or after August 14, 1998, the accumulated normal
18contributions taken into account under clauses (i) and (ii) of
19this Rule 2 shall include the additional normal contributions
20made by the police officer or firefighter under Section
2115-157(a).
22    The amount of a retirement annuity calculated under this
23Rule 2 shall be computed solely on the basis of the
24participant's accumulated normal contributions, as specified
25in this Rule and defined in Section 15-116. Neither an employee
26or employer contribution for early retirement under Section

 

 

HB1166 Engrossed- 38 -LRB098 08855 EFG 38985 b

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1    been provided on account of service of the participant
2    during periods when he or she performed the duties of a
3    police officer or firefighter, if these duties were
4    performed for at least 5 years immediately preceding the
5    date the retirement annuity is to begin.
6    (c) The maximum retirement annuity provided under Rules 1,
72, 4, and 5 shall be the lesser of (1) the annual limit of
8benefits as specified in Section 415 of the Internal Revenue
9Code of 1986, as such Section may be amended from time to time
10and as such benefit limits shall be adjusted by the
11Commissioner of Internal Revenue, and (2) 80% of final rate of
12earnings.
13    (d) 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, all automatic annual increases
13payable under this Section shall be calculated as a percentage
14of the total annuity payable at the time of the increase,
15including all increases previously granted under this Article.
16    The change made in this subsection by P.A. 85-1008 is
17effective January 26, 1988, and is applicable without regard to
18whether status as an employee terminated before that date.
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 shall not be taken into account in determining the
16amount of such additional annuity.
17    (g) If, (1) by law, a function of a governmental unit, as
18defined by Section 20-107 of this Code, is transferred in whole
19or in part to an employer, and (2) a participant transfers
20employment from such governmental unit to such employer within
216 months after the transfer of the function, and (3) the sum of
22(A) the annuity payable to the participant under Rule 1, 2, or
233 of this Section (B) all proportional annuities payable to the
24participant by all other retirement systems covered by Article
2520, and (C) the initial primary insurance amount to which the
26participant is entitled under the Social Security Act, is less

 

 

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1than the retirement annuity which would have been payable if
2all of the participant's pension credits validated under
3Section 20-109 had been validated under this system, a
4supplemental annuity equal to the difference in such amounts
5shall be payable to the participant.
6    (h) On January 1, 1981, an annuitant who was receiving a
7retirement annuity on or before January 1, 1971 shall have his
8or her retirement annuity then being paid increased $1 per
9month for each year of creditable service. On January 1, 1982,
10an annuitant whose retirement annuity began on or before
11January 1, 1977, shall have his or her retirement annuity then
12being paid increased $1 per month for each year of creditable
13service.
14    (i) On January 1, 1987, any annuitant whose retirement
15annuity began on or before January 1, 1977, shall have the
16monthly retirement annuity increased by an amount equal to 8
17per year of creditable service times the number of years that
18have elapsed since the annuity began.
19    (j) For participants to whom subsection (a-5) of Section
2015-135 applies, the references to age 50, 55, and 62 in this
21Section are increased as provided in subsection (a-5) of
22Section 15-135.
23(Source: P.A. 97-933, eff. 8-10-12; 97-968, eff. 8-16-12.)
 
24    (40 ILCS 5/16-106.4 new)
25    Sec. 16-106.4. Tier I member. "Tier I member": A member

 

 

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1under this Article who first became a member or participant
2before January 1, 2011 under any reciprocal retirement system
3or pension fund established under this Code other than a
4retirement system or pension fund established under Article 2,
53, 4, 5, 6, or 18 of this Code.
 
6    (40 ILCS 5/16-132)  (from Ch. 108 1/2, par. 16-132)
7    Sec. 16-132. Retirement annuity eligibility.
8    (a) A member who has at least 20 years of creditable
9service is entitled to a retirement annuity upon or after
10attainment of age 55. A member who has at least 10 but less
11than 20 years of creditable service is entitled to a retirement
12annuity upon or after attainment of age 60. A member who has at
13least 5 but less than 10 years of creditable service is
14entitled to a retirement annuity upon or after attainment of
15age 62. A member who (i) has earned during the period
16immediately preceding the last day of service at least one year
17of contributing creditable service as an employee of a
18department as defined in Section 14-103.04, (ii) has earned at
19least 5 years of contributing creditable service as an employee
20of a department as defined in Section 14-103.04, and (iii)
21retires on or after January 1, 2001 is entitled to a retirement
22annuity upon or after attainment of an age which, when added to
23the number of years of his or her total creditable service,
24equals at least 85. Portions of years shall be counted as
25decimal equivalents.

 

 

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1    A member who is eligible to receive a retirement annuity of
2at least 74.6% of final average salary and will attain age 55
3on or before December 31 during the year which commences on
4July 1 shall be deemed to attain age 55 on the preceding June
51.
6    (b) Notwithstanding subsection (a) of this Section, for a
7Tier I member who begins receiving a retirement annuity under
8this Article after July 1, 2013:
9        (1) If the Tier I member is at least 45 years old on
10    the effective date of this amendatory Act of the 98th
11    General Assembly, then the references to age 55, 60, and 62
12    in subsection (a) of this Section remain unchanged and the
13    reference to 85 in subsection (a) of this Section remains
14    unchanged.
15        (2) If the Tier I member is at least 40 but less than
16    45 years old on the effective date of this amendatory Act
17    of the 98th General Assembly, then the references to age
18    55, 60, and 62 in subsection (a) of this Section are
19    increased by one year and the reference to 85 in subsection
20    (a) is increased to 87.
21        (3) If the Tier I member is at least 35 but less than
22    40 years old on the effective date of this amendatory Act
23    of the 98th General Assembly, then the references to age
24    55, 60, and 62 in subsection (a) of this Section are
25    increased by 3 years and the reference to 85 in subsection
26    (a) is increased to 91.

 

 

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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 55, 60, and 62
4    in subsection (a) of this Section are increased by 5 years
5    and the reference to 85 in subsection (a) is increased to
6    95.
7    Notwithstanding Section 1-103.1, this subsection (b)
8applies without regard to whether or not the Tier I member is
9in active service under this Article on or after the effective
10date of this amendatory Act of the 98th General Assembly.
11    (c) A member meeting the above eligibility conditions is
12entitled to a retirement annuity upon written application to
13the board setting forth the date the member wishes the
14retirement annuity to commence. However, the effective date of
15the retirement annuity shall be no earlier than the day
16following the last day of creditable service, regardless of the
17date of official termination of employment.
18    (d) To be eligible for a retirement annuity, a member shall
19not be employed as a teacher in the schools included under this
20System or under Article 17, except (i) as provided in Section
2116-118 or 16-150.1, (ii) if the member is disabled (in which
22event, eligibility for salary must cease), or (iii) if the
23System is required by federal law to commence payment due to
24the member's age; the changes to this sentence made by Public
25Act 93-320 this amendatory Act of the 93rd General Assembly
26apply without regard to whether the member terminated

 

 

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1employment before or after its effective date.
2(Source: P.A. 93-320, eff. 7-23-03.)
 
3    (40 ILCS 5/16-133)  (from Ch. 108 1/2, par. 16-133)
4    Sec. 16-133. Retirement annuity; amount.
5    (a) The amount of the retirement annuity shall be (i) in
6the case of a person who first became a teacher under this
7Article before July 1, 2005, the larger of the amounts
8determined under paragraphs (A) and (B) below, or (ii) in the
9case of a person who first becomes a teacher under this Article
10on or after July 1, 2005, the amount determined under the
11applicable provisions of paragraph (B):
12        (A) An amount consisting of the sum of the following:
13            (1) An amount that can be provided on an
14        actuarially equivalent basis by the member's
15        accumulated contributions at the time of retirement;
16        and
17            (2) The sum of (i) the amount that can be provided
18        on an actuarially equivalent basis by the member's
19        accumulated contributions representing service prior
20        to July 1, 1947, and (ii) the amount that can be
21        provided on an actuarially equivalent basis by the
22        amount obtained by multiplying 1.4 times the member's
23        accumulated contributions covering service subsequent
24        to June 30, 1947; and
25            (3) If there is prior service, 2 times the amount

 

 

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1        that would have been determined under subparagraph (2)
2        of paragraph (A) above on account of contributions
3        which would have been made during the period of prior
4        service creditable to the member had the System been in
5        operation and had the member made contributions at the
6        contribution rate in effect prior to July 1, 1947.
7        This paragraph (A) does not apply to a person who first
8    becomes a teacher under this Article on or after July 1,
9    2005.
10        (B) An amount consisting of the greater of the
11    following:
12            (1) For creditable service earned before July 1,
13        1998 that has not been augmented under Section
14        16-129.1: 1.67% of final average salary for each of the
15        first 10 years of creditable service, 1.90% of final
16        average salary for each year in excess of 10 but not
17        exceeding 20, 2.10% of final average salary for each
18        year in excess of 20 but not exceeding 30, and 2.30% of
19        final average salary for each year in excess of 30; and
20            For creditable service earned on or after July 1,
21        1998 by a member who has at least 24 years of
22        creditable service on July 1, 1998 and who does not
23        elect to augment service under Section 16-129.1: 2.2%
24        of final average salary for each year of creditable
25        service earned on or after July 1, 1998 but before the
26        member reaches a total of 30 years of creditable

 

 

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1        service and 2.3% of final average salary for each year
2        of creditable service earned on or after July 1, 1998
3        and after the member reaches a total of 30 years of
4        creditable service; and
5            For all other creditable service: 2.2% of final
6        average salary for each year of creditable service; or
7            (2) 1.5% of final average salary for each year of
8        creditable service plus the sum $7.50 for each of the
9        first 20 years of creditable service.
10    The amount of the retirement annuity determined under this
11    paragraph (B) shall be reduced by 1/2 of 1% for each month
12    that the member is less than age 60 at the time the
13    retirement annuity begins. However, this reduction shall
14    not apply (i) if the member has at least 35 years of
15    creditable service, or (ii) if the member retires on
16    account of disability under Section 16-149.2 of this
17    Article with at least 20 years of creditable service, or
18    (iii) if the member (1) has earned during the period
19    immediately preceding the last day of service at least one
20    year of contributing creditable service as an employee of a
21    department as defined in Section 14-103.04, (2) has earned
22    at least 5 years of contributing creditable service as an
23    employee of a department as defined in Section 14-103.04,
24    (3) retires on or after January 1, 2001, and (4) retires
25    having attained an age which, when added to the number of
26    years of his or her total creditable service, equals at

 

 

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1    least 85. Portions of years shall be counted as decimal
2    equivalents. For participants to whom subsection (b) of
3    Section 16-132 applies, the reference to age 60 in this
4    paragraph and the reference to 85 in this paragraph are
5    increased as provided in subsection (b) of Section 16-132.
6    (b) For purposes of this Section, final average salary
7shall be the average salary for the highest 4 consecutive years
8within the last 10 years of creditable service as determined
9under rules of the board. The minimum final average salary
10shall be considered to be $2,400 per year.
11    In the determination of final average salary for members
12other than elected officials and their appointees when such
13appointees are allowed by statute, that part of a member's
14salary for any year beginning after June 30, 1979 which exceeds
15the member's annual full-time salary rate with the same
16employer for the preceding year by more than 20% shall be
17excluded. The exclusion shall not apply in any year in which
18the member's creditable earnings are less than 50% of the
19preceding year's mean salary for downstate teachers as
20determined by the survey of school district salaries provided
21in Section 2-3.103 of the School Code.
22    (c) In determining the amount of the retirement annuity
23under paragraph (B) of this Section, a fractional year shall be
24granted proportional credit.
25    (d) The retirement annuity determined under paragraph (B)
26of this Section shall be available only to members who render

 

 

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1teaching service after July 1, 1947 for which member
2contributions are required, and to annuitants who re-enter
3under the provisions of Section 16-150.
4    (e) The maximum retirement annuity provided under
5paragraph (B) of this Section shall be 75% of final average
6salary.
7    (f) A member retiring after the effective date of this
8amendatory Act of 1998 shall receive a pension equal to 75% of
9final average salary if the member is qualified to receive a
10retirement annuity equal to at least 74.6% of final average
11salary under this Article or as proportional annuities under
12Article 20 of this Code.
13(Source: P.A. 94-4, eff. 6-1-05.)
 
14    Section 90. The State Mandates Act is amended by adding
15Section 8.37 as follows:
 
16    (30 ILCS 805/8.37 new)
17    Sec. 8.37. Exempt mandate. Notwithstanding Sections 6 and 8
18of this Act, no reimbursement by the State is required for the
19implementation of any mandate created by this amendatory Act of
20the 98th General Assembly.
 
21    Section 99. Effective date. This Act takes effect upon
22becoming law.