HB1166ham006 98TH GENERAL ASSEMBLY

Rep. Elaine Nekritz

Filed: 3/13/2013

 

 


 

 


 
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1
AMENDMENT TO HOUSE BILL 1166

2    AMENDMENT NO. ______. Amend House Bill 1166, AS AMENDED, by
3inserting in proper numerical sequence among the Sections of
4the Bill the following:
 
5    "Section 6. The Illinois Pension Code is amended by
6changing Sections 2-119, 14-107, 14-108, 14-110, 15-135,
715-136, 16-132, and 16-133 and by adding Sections 2-105.1,
814-103.40, 15-107.1, and 16-106.4 as follows:
 
9    (40 ILCS 5/2-105.1 new)
10    Sec. 2-105.1. Tier I participant. "Tier I participant": A
11participant who first became a participant before January 1,
122011.
 
13    (40 ILCS 5/2-119)  (from Ch. 108 1/2, par. 2-119)
14    Sec. 2-119. Retirement annuity - conditions for
15eligibility.

 

 

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

 

 

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1    has at least 8 years of service credit.
2    (a-5) Notwithstanding subsection (a) of this Section, for a
3Tier I participant who begins receiving a retirement annuity
4under this Section after July 1, 2013:
5        (1) If the Tier I participant is at least 45 years old
6    on the effective date of this amendatory Act of the 98th
7    General Assembly, then the references to age 55 and 62 in
8    subsection (a) of this Section remain unchanged.
9        (2) If the Tier I participant is at least 40 but less
10    than 45 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 one year.
14        (3) If the Tier I participant is at least 35 but less
15    than 40 years old on the effective date of this amendatory
16    Act of the 98th General Assembly, then the references to
17    age 55 and 62 in subsection (a) of this Section are
18    increased by 3 years.
19        (4) If the Tier I participant is less than 35 years old
20    on the effective date of this amendatory Act of the 98th
21    General Assembly, then the references to age 55 and 62 in
22    subsection (a) of this Section are increased by 5 years.
23    Notwithstanding Section 1-103.1, this subsection (a-5)
24applies without regard to whether or not the Tier I member is
25in active service under this Article on or after the effective
26date of this amendatory Act of the 98th General Assembly.

 

 

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1    (a-5) A participant who first becomes a participant of this
2System on or after January 1, 2011 (the effective date of
3Public Act 96-889) who has attained age 62 and has at least 8
4years of service credit may elect to receive the lower
5retirement annuity provided in paragraph (c) of Section
62-119.01 of this Code.
7    (b) A participant shall be considered permanently disabled
8only if: (1) disability occurs while in service and is of such
9a nature as to prevent him or her from reasonably performing
10the duties of his or her office at the time; and (2) the board
11has received a written certificate by at least 2 licensed
12physicians appointed by the board stating that the member is
13disabled and that the disability is likely to be permanent.
14(Source: P.A. 96-889, eff. 1-1-11; 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 5/14-107)  (from Ch. 108 1/2, par. 14-107)
23    Sec. 14-107. Retirement annuity - service and age -
24conditions.

 

 

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

 

 

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1    of the 98th General Assembly, then the references to age 55
2    and 60 in subsection (b) of this Section are increased by
3    one year and the references to 85 in subsection (b) are
4    increased to 87.
5        (3) If the Tier I member is at least 35 but less than
6    40 years old on the effective date of this amendatory Act
7    of the 98th General Assembly, then the references to age 55
8    and 60 in subsection (b) of this Section are increased by 3
9    years and the references to 85 in subsection (b) are
10    increased to 91.
11        (4) If the Tier I member is less than 35 years old on
12    the effective date of this amendatory Act of the 98th
13    General Assembly, then the references to age 55 and 60 in
14    subsection (b) of this Section are increased by 5 years and
15    the references to 85 in subsection (b) are increased to 95.
16    Notwithstanding Section 1-103.1, this subsection (c)
17applies without regard to whether or not the Tier I member is
18in active service under this Article on or after the effective
19date of this amendatory Act of the 98th General Assembly.
20    (d) The allowance shall begin with the first full calendar
21month specified in the member's application therefor, the first
22day of which shall not be before the date of withdrawal as
23approved by the board. Regardless of the date of withdrawal,
24the allowance need not begin within one year of application
25therefor.
26(Source: P.A. 91-927, eff. 12-14-00.)
 

 

 

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1    (40 ILCS 5/14-108)  (from Ch. 108 1/2, par. 14-108)
2    Sec. 14-108. Amount of retirement annuity. A member who has
3contributed to the System for at least 12 months shall be
4entitled to a prior service annuity for each year of certified
5prior service credited to him, except that a member shall
6receive 1/3 of the prior service annuity for each year of
7service for which contributions have been made and all of such
8annuity shall be payable after the member has made
9contributions for a period of 3 years. Proportionate amounts
10shall be payable for service of less than a full year after
11completion of at least 12 months.
12    The total period of service to be considered in
13establishing the measure of prior service annuity shall include
14service credited in the Teachers' Retirement System of the
15State of Illinois and the State Universities Retirement System
16for which contributions have been made by the member to such
17systems; provided that at least 1 year of the total period of 3
18years prescribed for the allowance of a full measure of prior
19service annuity shall consist of membership service in this
20system for which credit has been granted.
21    (a) In the case of a member who retires on or after January
221, 1998 and is a noncovered employee, the retirement annuity
23for membership service and prior service shall be 2.2% of final
24average compensation for each year of service. Any service
25credit established as a covered employee shall be computed as

 

 

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1stated in paragraph (b).
2    (b) In the case of a member who retires on or after January
31, 1998 and is a covered employee, the retirement annuity for
4membership service and prior service shall be computed as
5stated in paragraph (a) for all service credit established as a
6noncovered employee; for service credit established as a
7covered employee it shall be 1.67% of final average
8compensation for each year of service.
9    (c) For a member retiring after attaining age 55 but before
10age 60 with at least 30 but less than 35 years of creditable
11service if retirement is before January 1, 2001, or with at
12least 25 but less than 30 years of creditable service if
13retirement is on or after January 1, 2001, the retirement
14annuity shall be reduced by 1/2 of 1% for each month that the
15member's age is under age 60 at the time of retirement. For
16members to whom subsection (c) of Section 14-107 applies, the
17references to age 55 and 60 in this subsection (c) are
18increased as provided in subsection (c) of Section 14-107.
19    (d) A retirement annuity shall not exceed 75% of final
20average compensation, subject to such extension as may result
21from the application of Section 14-114 or Section 14-115.
22    (e) The retirement annuity payable to any covered employee
23who is a member of the System and in service on January 1,
241969, or in service thereafter in 1969 as a result of
25legislation enacted by the Illinois General Assembly
26transferring the member to State employment from county

 

 

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1employment in a county Department of Public Aid in counties of
23,000,000 or more population, under a plan of coordination with
3the Old Age, Survivors and Disability provisions thereof, if
4not fully insured for Old Age Insurance payments under the
5Federal Old Age, Survivors and Disability Insurance provisions
6at the date of acceptance of a retirement annuity, shall not be
7less than the amount for which the member would have been
8eligible if coordination were not applicable.
9    (f) The retirement annuity payable to any covered employee
10who is a member of the System and in service on January 1,
111969, or in service thereafter in 1969 as a result of the
12legislation designated in the immediately preceding paragraph,
13if fully insured for Old Age Insurance payments under the
14Federal Social Security Act at the date of acceptance of a
15retirement annuity, shall not be less than an amount which when
16added to the Primary Insurance Benefit payable to the member
17upon attainment of age 65 under such Federal Act, will equal
18the annuity which would otherwise be payable if the coordinated
19plan of coverage were not applicable.
20    (g) In the case of a member who is a noncovered employee,
21the retirement annuity for membership service as a security
22employee of the Department of Corrections or security employee
23of the Department of Human Services shall be: if retirement
24occurs on or after January 1, 2001, 3% of final average
25compensation for each year of creditable service; or if
26retirement occurs before January 1, 2001, 1.9% of final average

 

 

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

 

 

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1membership service and who are not eligible for the alternative
2retirement annuity provided under Section 14-110. However,
3persons transferring to this System under Section 14-108.2 or
414-108.2c who have service credit under Article 16 of this Code
5may count such service toward establishing their eligibility
6under the 20-year service requirement of this subsection; but
7such service may be used only for establishing such
8eligibility, and not for the purpose of increasing or
9calculating any benefit.
10    (k) (Blank).
11    (l) The changes to this Section made by this amendatory Act
12of 1997 (changing certain retirement annuity formulas from a
13stepped rate to a flat rate) apply to members who retire on or
14after January 1, 1998, without regard to whether employment
15terminated before the effective date of this amendatory Act of
161997. An annuity shall not be calculated in steps by using the
17new flat rate for some steps and the superseded stepped rate
18for other steps of the same type of service.
19(Source: P.A. 91-927, eff. 12-14-00; 92-14, eff. 6-28-01.)
 
20    (40 ILCS 5/14-110)  (from Ch. 108 1/2, par. 14-110)
21    Sec. 14-110. Alternative retirement annuity.
22    (a) Any member who has withdrawn from service with not less
23than 20 years of eligible creditable service and has attained
24age 55, and any member who has withdrawn from service with not
25less than 25 years of eligible creditable service and has

 

 

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1attained age 50, regardless of whether the attainment of either
2of the specified ages occurs while the member is still in
3service, shall be entitled to receive at the option of the
4member, in lieu of the regular or minimum retirement annuity, a
5retirement annuity computed as follows:
6        (i) for periods of service as a noncovered employee: if
7    retirement occurs on or after January 1, 2001, 3% of final
8    average compensation for each year of creditable service;
9    if retirement occurs before January 1, 2001, 2 1/4% of
10    final average compensation for each of the first 10 years
11    of creditable service, 2 1/2% for each year above 10 years
12    to and including 20 years of creditable service, and 2 3/4%
13    for each year of creditable service above 20 years; and
14        (ii) for periods of eligible creditable service as a
15    covered employee: if retirement occurs on or after January
16    1, 2001, 2.5% of final average compensation for each year
17    of creditable service; if retirement occurs before January
18    1, 2001, 1.67% of final average compensation for each of
19    the first 10 years of such service, 1.90% for each of the
20    next 10 years of such service, 2.10% for each year of such
21    service in excess of 20 but not exceeding 30, and 2.30% for
22    each year in excess of 30.
23    Such annuity shall be subject to a maximum of 75% of final
24average compensation if retirement occurs before January 1,
252001 or to a maximum of 80% of final average compensation if
26retirement occurs on or after January 1, 2001.

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

09800HB1166ham006- 20 -LRB098 08855 EFG 42760 a

1    term means an employee of the Department of Corrections or
2    the Department of Juvenile Justice who is any of the
3    following: (i) officially headquartered at a correctional
4    facility or Juvenile facility operated by the Department of
5    Juvenile Justice, (ii) a parole officer, (iii) a member of
6    the apprehension unit, (iv) a member of the intelligence
7    unit, (v) a member of the sort team, or (vi) an
8    investigator.
9        (11) The term "dangerous drugs investigator" means any
10    person who is employed as such by the Department of Human
11    Services.
12        (12) The term "investigator for the Department of State
13    Police" means a person employed by the Department of State
14    Police who is vested under Section 4 of the Narcotic
15    Control Division Abolition Act with such law enforcement
16    powers as render him ineligible for coverage under the
17    Social Security Act by reason of Sections 218(d)(5)(A),
18    218(d)(8)(D) and 218(l)(1) of that Act.
19        (13) "Investigator for the Office of the Attorney
20    General" means any person who is employed as such by the
21    Office of the Attorney General and is vested with such
22    investigative duties as render him ineligible for coverage
23    under the Social Security Act by reason of Sections
24    218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that Act. For
25    the period before January 1, 1989, the term includes all
26    persons who were employed as investigators by the Office of

 

 

09800HB1166ham006- 21 -LRB098 08855 EFG 42760 a

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

 

 

09800HB1166ham006- 22 -LRB098 08855 EFG 42760 a

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

 

 

09800HB1166ham006- 23 -LRB098 08855 EFG 42760 a

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

 

 

09800HB1166ham006- 24 -LRB098 08855 EFG 42760 a

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

 

 

09800HB1166ham006- 25 -LRB098 08855 EFG 42760 a

1such military service shall be credited as eligible creditable
2service for the purposes of the retirement annuity prescribed
3in this Section.
4    (f) For purposes of calculating retirement annuities under
5this Section, periods of service rendered after December 31,
61968 and before October 1, 1975 as a covered employee in the
7position of special agent, conservation police officer, mental
8health police officer, or investigator for the Secretary of
9State, shall be deemed to have been service as a noncovered
10employee, provided that the employee pays to the System prior
11to retirement an amount equal to (1) the difference between the
12employee contributions that would have been required for such
13service as a noncovered employee, and the amount of employee
14contributions actually paid, plus (2) if payment is made after
15July 31, 1987, regular interest on the amount specified in item
16(1) from the date of service to the date of payment.
17    For purposes of calculating retirement annuities under
18this Section, periods of service rendered after December 31,
191968 and before January 1, 1982 as a covered employee in the
20position of investigator for the Department of Revenue shall be
21deemed to have been service as a noncovered employee, provided
22that the employee pays to the System prior to retirement an
23amount equal to (1) the difference between the employee
24contributions that would have been required for such service as
25a noncovered employee, and the amount of employee contributions
26actually paid, plus (2) if payment is made after January 1,

 

 

09800HB1166ham006- 26 -LRB098 08855 EFG 42760 a

11990, regular interest on the amount specified in item (1) from
2the date of service to the date of payment.
3    (g) A State policeman may elect, not later than January 1,
41990, to establish eligible creditable service for up to 10
5years of his service as a policeman under Article 3, by filing
6a written election with the Board, accompanied by payment of an
7amount to be determined by the Board, equal to (i) the
8difference between the amount of employee and employer
9contributions transferred to the System under Section 3-110.5,
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), a State
16policeman may elect, not later than July 1, 1993, to establish
17eligible creditable service for up to 10 years of his service
18as a member of the County Police Department under Article 9, by
19filing a written election with the Board, accompanied by
20payment of an amount to be determined by the Board, equal to
21(i) the difference between the amount of employee and employer
22contributions transferred to the System under Section 9-121.10
23and the amounts that would have been contributed had those
24contributions been made at the rates applicable to State
25policemen, plus (ii) interest thereon at the effective rate for
26each year, compounded annually, from the date of service to the

 

 

09800HB1166ham006- 27 -LRB098 08855 EFG 42760 a

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

 

 

09800HB1166ham006- 28 -LRB098 08855 EFG 42760 a

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

 

 

09800HB1166ham006- 29 -LRB098 08855 EFG 42760 a

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

 

 

09800HB1166ham006- 30 -LRB098 08855 EFG 42760 a

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

 

 

09800HB1166ham006- 31 -LRB098 08855 EFG 42760 a

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

 

 

09800HB1166ham006- 32 -LRB098 08855 EFG 42760 a

1under Section 3-110.5, and the amounts that would have been
2contributed had such contributions been made at the rates
3applicable to security employees of the Department of
4Corrections, plus (ii) interest thereon at the effective rate
5for each year, compounded annually, from the date of service to
6the date of payment.
7    (m) The amendatory changes to this Section made by this
8amendatory Act of the 94th General Assembly apply only to: (1)
9security employees of the Department of Juvenile Justice
10employed by the Department of Corrections before the effective
11date of this amendatory Act of the 94th General Assembly and
12transferred to the Department of Juvenile Justice by this
13amendatory Act of the 94th General Assembly; and (2) persons
14employed by the Department of Juvenile Justice on or after the
15effective date of this amendatory Act of the 94th General
16Assembly who are required by subsection (b) of Section 3-2.5-15
17of the Unified Code of Corrections to have a bachelor's or
18advanced degree from an accredited college or university with a
19specialization in criminal justice, education, psychology,
20social work, or a closely related social science or, in the
21case of persons who provide vocational training, who are
22required to have adequate knowledge in the skill for which they
23are providing the vocational training.
24    (n) A person employed in a position under subsection (b) of
25this Section who has purchased service credit under subsection
26(j) of Section 14-104 or subsection (b) of Section 14-105 in

 

 

09800HB1166ham006- 33 -LRB098 08855 EFG 42760 a

1any other capacity under this Article may convert up to 5 years
2of that service credit into service credit covered under this
3Section by paying to the Fund an amount equal to (1) the
4additional employee contribution required under Section
514-133, plus (2) the additional employer contribution required
6under Section 14-131, plus (3) interest on items (1) and (2) at
7the actuarially assumed rate from the date of the service to
8the date of payment.
9(Source: P.A. 95-530, eff. 8-28-07; 95-1036, eff. 2-17-09;
1096-37, eff. 7-13-09; 96-745, eff. 8-25-09; 96-1000, eff.
117-2-10.)
 
12    (40 ILCS 5/15-107.1 new)
13    Sec. 15-107.1. Tier I participant. "Tier I participant": A
14participant under this Article, other than a participant in the
15self-managed plan under Section 15-158.2, who first became a
16member or participant before January 1, 2011 under any
17reciprocal retirement system or pension fund established under
18this Code other than a retirement system or pension fund
19established under Article 2, 3, 4, 5, 6, or 18 of this Code.
 
20    (40 ILCS 5/15-135)  (from Ch. 108 1/2, par. 15-135)
21    Sec. 15-135. Retirement annuities - Conditions.
22    (a) A participant who retires in one of the following
23specified years with the specified amount of service is
24entitled to a retirement annuity at any age under the

 

 

09800HB1166ham006- 34 -LRB098 08855 EFG 42760 a

1retirement program applicable to the participant:
2        35 years if retirement is in 1997 or before;
3        34 years if retirement is in 1998;
4        33 years if retirement is in 1999;
5        32 years if retirement is in 2000;
6        31 years if retirement is in 2001;
7        30 years if retirement is in 2002 or later.
8    A participant with 8 or more years of service after
9September 1, 1941, is entitled to a retirement annuity on or
10after attainment of age 55.
11    A participant with at least 5 but less than 8 years of
12service after September 1, 1941, is entitled to a retirement
13annuity on or after attainment of age 62.
14    A participant who has at least 25 years of service in this
15system as a police officer or firefighter is entitled to a
16retirement annuity on or after the attainment of age 50, if
17Rule 4 of Section 15-136 is applicable to the participant.
18    (a-5) Notwithstanding subsection (a) of this Section, for a
19Tier I participant who begins receiving a retirement annuity
20under this Article after July 1, 2013:
21        (1) If the Tier I participant is at least 45 years old
22    on the effective date of this amendatory Act of the 98th
23    General Assembly, then the reference to retirement with 30
24    years of service as well as the references to age 50, 55,
25    and 62 in subsection (a) of this Section remain unchanged.
26        (2) If the Tier I participant is at least 40 but less

 

 

09800HB1166ham006- 35 -LRB098 08855 EFG 42760 a

1    than 45 years old on the effective date of this amendatory
2    Act of the 98th General Assembly, then the reference to
3    retirement with 30 years of service as well as the
4    references to age 50, 55, and 62 in subsection (a) of this
5    Section shall be increased by one year.
6        (3) If the Tier I participant is at least 35 but less
7    than 40 years old on the effective date of this amendatory
8    Act of the 98th General Assembly, then the reference to
9    retirement with 30 years of service as well as the
10    references to age 50, 55, and 62 in subsection (a) of this
11    Section shall be increased by 3 years.
12        (4) If the Tier I participant is less than 35 years old
13    on the effective date of this amendatory Act of the 98th
14    General Assembly, then the reference to retirement with 30
15    years of service as well as the references to age 50, 55,
16    and 62 in subsection (a) of this Section shall be increased
17    by 5 years.
18    Notwithstanding Section 1-103.1, this subsection (a-5)
19applies without regard to whether or not the Tier I participant
20is in active service under this Article on or after the
21effective date of this amendatory Act of the 98th General
22Assembly.
23    (b) The annuity payment period shall begin on the date
24specified by the participant or the recipient of a disability
25retirement annuity submitting a written application, which
26date shall not be prior to termination of employment or more

 

 

09800HB1166ham006- 36 -LRB098 08855 EFG 42760 a

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

 

 

09800HB1166ham006- 37 -LRB098 08855 EFG 42760 a

1after January 1, 1998, 2.2% of the final rate of earnings for
2each year of service.
3    Rule 2: The retirement annuity shall be the sum of the
4following, determined from amounts credited to the participant
5in accordance with the actuarial tables and the effective rate
6of interest in effect at the time the retirement annuity
7begins:
8        (i) the normal annuity which can be provided on an
9    actuarially equivalent basis, by the accumulated normal
10    contributions as of the date the annuity begins;
11        (ii) an annuity from employer contributions of an
12    amount equal to that which can be provided on an
13    actuarially equivalent basis from the accumulated normal
14    contributions made by the participant under Section
15    15-113.6 and Section 15-113.7 plus 1.4 times all other
16    accumulated normal contributions made by the participant;
17    and
18        (iii) the annuity that can be provided on an
19    actuarially equivalent basis from the entire contribution
20    made by the participant under Section 15-113.3.
21    With respect to a police officer or firefighter who retires
22on or after August 14, 1998, the accumulated normal
23contributions taken into account under clauses (i) and (ii) of
24this Rule 2 shall include the additional normal contributions
25made by the police officer or firefighter under Section
2615-157(a).

 

 

09800HB1166ham006- 38 -LRB098 08855 EFG 42760 a

1    The amount of a retirement annuity calculated under this
2Rule 2 shall be computed solely on the basis of the
3participant's accumulated normal contributions, as specified
4in this Rule and defined in Section 15-116. Neither an employee
5or employer contribution for early retirement under Section
615-136.2 nor any other employer contribution shall be used in
7the calculation of the amount of a retirement annuity under
8this Rule 2.
9    This amendatory Act of the 91st General Assembly is a
10clarification of existing law and applies to every participant
11and annuitant without regard to whether status as an employee
12terminates before the effective date of this amendatory Act.
13    This Rule 2 does not apply to a person who first becomes an
14employee under this Article on or after July 1, 2005.
15    Rule 3: The retirement annuity of a participant who is
16employed at least one-half time during the period on which his
17or her final rate of earnings is based, shall be equal to the
18participant's years of service not to exceed 30, multiplied by
19(1) $96 if the participant's final rate of earnings is less
20than $3,500, (2) $108 if the final rate of earnings is at least
21$3,500 but less than $4,500, (3) $120 if the final rate of
22earnings is at least $4,500 but less than $5,500, (4) $132 if
23the final rate of earnings is at least $5,500 but less than
24$6,500, (5) $144 if the final rate of earnings is at least
25$6,500 but less than $7,500, (6) $156 if the final rate of
26earnings is at least $7,500 but less than $8,500, (7) $168 if

 

 

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

 

 

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

 

 

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1    actuarially equivalent basis from the employee
2    contribution for early retirement under Section 15-136.2,
3    and an annuity from employer contributions of an amount
4    equal to that which can be provided on an actuarially
5    equivalent basis from the employee contribution for early
6    retirement under Section 15-136.2.
7    In no event shall a retirement annuity under this Rule 5 be
8lower than the amount obtained by adding (1) the monthly amount
9obtained by dividing the combined employee and employer
10contributions made under Section 15-136.2 by the System's
11annuity factor for the age of the participant at the beginning
12of the annuity payment period and (2) the amount equal to the
13participant's annuity if calculated under Rule 1, reduced under
14Section 15-136(b) as if no contributions had been made under
15Section 15-136.2.
16    With respect to a participant who is qualified for a
17retirement annuity under this Rule 5 whose retirement annuity
18began before the effective date of this amendatory Act of the
1991st General Assembly, and for whom an employee contribution
20was made under Section 15-136.2, the System shall recalculate
21the retirement annuity under this Rule 5 and shall pay any
22additional amounts due in the manner provided in Section
2315-186.1 for benefits mistakenly set too low.
24    The amount of a retirement annuity calculated under this
25Rule 5 shall be computed solely on the basis of those
26contributions specifically set forth in this Rule 5. Except as

 

 

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1provided in clause (iii) of this Rule 5, neither an employee
2nor employer contribution for early retirement under Section
315-136.2, nor any other employer contribution, shall be used in
4the calculation of the amount of a retirement annuity under
5this Rule 5.
6    The General Assembly has adopted the changes set forth in
7Section 25 of this amendatory Act of the 91st General Assembly
8in recognition that the decision of the Appellate Court for the
9Fourth District in Mattis v. State Universities Retirement
10System et al. might be deemed to give some right to the
11plaintiff in that case. The changes made by Section 25 of this
12amendatory Act of the 91st General Assembly are a legislative
13implementation of the decision of the Appellate Court for the
14Fourth District in Mattis v. State Universities Retirement
15System et al. with respect to that plaintiff.
16    The changes made by Section 25 of this amendatory Act of
17the 91st General Assembly apply without regard to whether the
18person is in service as an employee on or after its effective
19date.
20    (b) The retirement annuity provided under Rules 1 and 3
21above shall be reduced by 1/2 of 1% for each month the
22participant is under age 60 at the time of retirement. However,
23this reduction shall not apply in the following cases:
24        (1) For a disabled participant whose disability
25    benefits have been discontinued because he or she has
26    exhausted eligibility for disability benefits under clause

 

 

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1    (6) of Section 15-152;
2        (2) For a participant who has at least the number of
3    years of service required to retire at any age under
4    subsection (a) of Section 15-135; or
5        (3) For that portion of a retirement annuity which has
6    been provided on account of service of the participant
7    during periods when he or she performed the duties of a
8    police officer or firefighter, if these duties were
9    performed for at least 5 years immediately preceding the
10    date the retirement annuity is to begin.
11    (c) The maximum retirement annuity provided under Rules 1,
122, 4, and 5 shall be the lesser of (1) the annual limit of
13benefits as specified in Section 415 of the Internal Revenue
14Code of 1986, as such Section may be amended from time to time
15and as such benefit limits shall be adjusted by the
16Commissioner of Internal Revenue, and (2) 80% of final rate of
17earnings.
18    (d) An annuitant whose status as an employee terminates
19after August 14, 1969 shall receive automatic increases in his
20or her retirement annuity as follows:
21    Effective January 1 immediately following the date the
22retirement annuity begins, the annuitant shall receive an
23increase in his or her monthly retirement annuity of 0.125% of
24the monthly retirement annuity provided under Rule 1, Rule 2,
25Rule 3, Rule 4, or Rule 5, contained in this Section,
26multiplied by the number of full months which elapsed from the

 

 

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1date the retirement annuity payments began to January 1, 1972,
2plus 0.1667% of such annuity, multiplied by the number of full
3months which elapsed from January 1, 1972, or the date the
4retirement annuity payments began, whichever is later, to
5January 1, 1978, plus 0.25% of such annuity multiplied by the
6number of full months which elapsed from January 1, 1978, or
7the date the retirement annuity payments began, whichever is
8later, to the effective date of the increase.
9    The annuitant shall receive an increase in his or her
10monthly retirement annuity on each January 1 thereafter during
11the annuitant's life of 3% of the monthly annuity provided
12under Rule 1, Rule 2, Rule 3, Rule 4, or Rule 5 contained in
13this Section. The change made under this subsection by P.A.
1481-970 is effective January 1, 1980 and applies to each
15annuitant whose status as an employee terminates before or
16after that date.
17    Beginning January 1, 1990, all automatic annual increases
18payable under this Section shall be calculated as a percentage
19of the total annuity payable at the time of the increase,
20including all increases previously granted under this Article.
21    The change made in this subsection by P.A. 85-1008 is
22effective January 26, 1988, and is applicable without regard to
23whether status as an employee terminated before that date.
24    (e) If, on January 1, 1987, or the date the retirement
25annuity payment period begins, whichever is later, the sum of
26the retirement annuity provided under Rule 1 or Rule 2 of this

 

 

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1Section and the automatic annual increases provided under the
2preceding subsection or Section 15-136.1, amounts to less than
3the retirement annuity which would be provided by Rule 3, the
4retirement annuity shall be increased as of January 1, 1987, or
5the date the retirement annuity payment period begins,
6whichever is later, to the amount which would be provided by
7Rule 3 of this Section. Such increased amount shall be
8considered as the retirement annuity in determining benefits
9provided under other Sections of this Article. This paragraph
10applies without regard to whether status as an employee
11terminated before the effective date of this amendatory Act of
121987, provided that the annuitant was employed at least
13one-half time during the period on which the final rate of
14earnings was based.
15    (f) A participant is entitled to such additional annuity as
16may be provided on an actuarially equivalent basis, by any
17accumulated additional contributions to his or her credit.
18However, the additional contributions made by the participant
19toward the automatic increases in annuity provided under this
20Section shall not be taken into account in determining the
21amount of such additional annuity.
22    (g) If, (1) by law, a function of a governmental unit, as
23defined by Section 20-107 of this Code, is transferred in whole
24or in part to an employer, and (2) a participant transfers
25employment from such governmental unit to such employer within
266 months after the transfer of the function, and (3) the sum of

 

 

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1(A) the annuity payable to the participant under Rule 1, 2, or
23 of this Section (B) all proportional annuities payable to the
3participant by all other retirement systems covered by Article
420, and (C) the initial primary insurance amount to which the
5participant is entitled under the Social Security Act, is less
6than the retirement annuity which would have been payable if
7all of the participant's pension credits validated under
8Section 20-109 had been validated under this system, a
9supplemental annuity equal to the difference in such amounts
10shall be payable to the participant.
11    (h) On January 1, 1981, an annuitant who was receiving a
12retirement annuity on or before January 1, 1971 shall have his
13or her retirement annuity then being paid increased $1 per
14month for each year of creditable service. On January 1, 1982,
15an annuitant whose retirement annuity began on or before
16January 1, 1977, shall have his or her retirement annuity then
17being paid increased $1 per month for each year of creditable
18service.
19    (i) On January 1, 1987, any annuitant whose retirement
20annuity began on or before January 1, 1977, shall have the
21monthly retirement annuity increased by an amount equal to 8
22per year of creditable service times the number of years that
23have elapsed since the annuity began.
24    (j) For participants to whom subsection (a-5) of Section
2515-135 applies, the references to age 50, 55, and 62 in this
26Section are increased as provided in subsection (a-5) of

 

 

09800HB1166ham006- 47 -LRB098 08855 EFG 42760 a

1Section 15-135.
2(Source: P.A. 97-933, eff. 8-10-12; 97-968, eff. 8-16-12.)
 
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 5/16-132)  (from Ch. 108 1/2, par. 16-132)
11    Sec. 16-132. Retirement annuity eligibility.
12    (a) A member who has at least 20 years of creditable
13service is entitled to a retirement annuity upon or after
14attainment of age 55. A member who has at least 10 but less
15than 20 years of creditable service is entitled to a retirement
16annuity upon or after attainment of age 60. A member who has at
17least 5 but less than 10 years of creditable service is
18entitled to a retirement annuity upon or after attainment of
19age 62. A member who (i) has earned during the period
20immediately preceding the last day of service at least one year
21of contributing creditable service as an employee of a
22department as defined in Section 14-103.04, (ii) has earned at
23least 5 years of contributing creditable service as an employee
24of a department as defined in Section 14-103.04, and (iii)

 

 

09800HB1166ham006- 48 -LRB098 08855 EFG 42760 a

1retires on or after January 1, 2001 is entitled to a retirement
2annuity upon or after attainment of an age which, when added to
3the number of years of his or her total creditable service,
4equals at least 85. Portions of years shall be counted as
5decimal equivalents.
6    A member who is eligible to receive a retirement annuity of
7at least 74.6% of final average salary and will attain age 55
8on or before December 31 during the year which commences on
9July 1 shall be deemed to attain age 55 on the preceding June
101.
11    (b) Notwithstanding subsection (a) 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, 60, and 62
17    in subsection (a) of this Section remain unchanged and the
18    reference to 85 in subsection (a) of this Section remains
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
23    55, 60, and 62 in subsection (a) of this Section are
24    increased by one year and the reference to 85 in subsection
25    (a) is increased to 87.
26        (3) If the Tier I member is at least 35 but less than

 

 

09800HB1166ham006- 49 -LRB098 08855 EFG 42760 a

1    40 years old on the effective date of this amendatory Act
2    of the 98th General Assembly, then the references to age
3    55, 60, and 62 in subsection (a) of this Section are
4    increased by 3 years and the reference to 85 in subsection
5    (a) is 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, 60, and 62
9    in subsection (a) of this Section are increased by 5 years
10    and the reference to 85 in subsection (a) is increased to
11    95.
12    Notwithstanding Section 1-103.1, this subsection (b)
13applies without regard to whether or not the Tier I member is
14in active service under this Article on or after the effective
15date of this amendatory Act of the 98th General Assembly.
16    (c) A member meeting the above eligibility conditions is
17entitled to a retirement annuity upon written application to
18the board setting forth the date the member wishes the
19retirement annuity to commence. However, the effective date of
20the retirement annuity shall be no earlier than the day
21following the last day of creditable service, regardless of the
22date of official termination of employment.
23    (d) To be eligible for a retirement annuity, a member shall
24not be employed as a teacher in the schools included under this
25System or under Article 17, except (i) as provided in Section
2616-118 or 16-150.1, (ii) if the member is disabled (in which

 

 

09800HB1166ham006- 50 -LRB098 08855 EFG 42760 a

1event, eligibility for salary must cease), or (iii) if the
2System is required by federal law to commence payment due to
3the member's age; the changes to this sentence made by Public
4Act 93-320 this amendatory Act of the 93rd General Assembly
5apply without regard to whether the member terminated
6employment before or after its effective date.
7(Source: P.A. 93-320, eff. 7-23-03.)
 
8    (40 ILCS 5/16-133)  (from Ch. 108 1/2, par. 16-133)
9    Sec. 16-133. Retirement annuity; amount.
10    (a) The amount of the retirement annuity shall be (i) in
11the case of a person who first became a teacher under this
12Article before July 1, 2005, the larger of the amounts
13determined under paragraphs (A) and (B) below, or (ii) in the
14case of a person who first becomes a teacher under this Article
15on or after July 1, 2005, the amount determined under the
16applicable provisions of paragraph (B):
17        (A) An amount consisting of the sum of the following:
18            (1) An amount that can be provided on an
19        actuarially equivalent basis by the member's
20        accumulated contributions at the time of retirement;
21        and
22            (2) The sum of (i) the amount that can be provided
23        on an actuarially equivalent basis by the member's
24        accumulated contributions representing service prior
25        to July 1, 1947, and (ii) the amount that can be

 

 

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1        provided on an actuarially equivalent basis by the
2        amount obtained by multiplying 1.4 times the member's
3        accumulated contributions covering service subsequent
4        to June 30, 1947; and
5            (3) If there is prior service, 2 times the amount
6        that would have been determined under subparagraph (2)
7        of paragraph (A) above on account of contributions
8        which would have been made during the period of prior
9        service creditable to the member had the System been in
10        operation and had the member made contributions at the
11        contribution rate in effect prior to July 1, 1947.
12        This paragraph (A) does not apply to a person who first
13    becomes a teacher under this Article on or after July 1,
14    2005.
15        (B) An amount consisting of the greater of the
16    following:
17            (1) For creditable service earned before July 1,
18        1998 that has not been augmented under Section
19        16-129.1: 1.67% of final average salary for each of the
20        first 10 years of creditable service, 1.90% of final
21        average salary for each year in excess of 10 but not
22        exceeding 20, 2.10% of final average salary for each
23        year in excess of 20 but not exceeding 30, and 2.30% of
24        final average salary for each year in excess of 30; and
25            For creditable service earned on or after July 1,
26        1998 by a member who has at least 24 years of

 

 

09800HB1166ham006- 52 -LRB098 08855 EFG 42760 a

1        creditable service on July 1, 1998 and who does not
2        elect to augment service under Section 16-129.1: 2.2%
3        of final average salary for each year of creditable
4        service earned on or after July 1, 1998 but before the
5        member reaches a total of 30 years of creditable
6        service and 2.3% of final average salary for each year
7        of creditable service earned on or after July 1, 1998
8        and after the member reaches a total of 30 years of
9        creditable service; and
10            For all other creditable service: 2.2% of final
11        average salary for each year of creditable service; or
12            (2) 1.5% of final average salary for each year of
13        creditable service plus the sum $7.50 for each of the
14        first 20 years of creditable service.
15    The amount of the retirement annuity determined under this
16    paragraph (B) shall be reduced by 1/2 of 1% for each month
17    that the member is less than age 60 at the time the
18    retirement annuity begins. However, this reduction shall
19    not apply (i) if the member has at least 35 years of
20    creditable service, or (ii) if the member retires on
21    account of disability under Section 16-149.2 of this
22    Article with at least 20 years of creditable service, or
23    (iii) if the member (1) has earned during the period
24    immediately preceding the last day of service at least one
25    year of contributing creditable service as an employee of a
26    department as defined in Section 14-103.04, (2) has earned

 

 

09800HB1166ham006- 53 -LRB098 08855 EFG 42760 a

1    at least 5 years of contributing creditable service as an
2    employee of a department as defined in Section 14-103.04,
3    (3) retires on or after January 1, 2001, and (4) retires
4    having attained an age which, when added to the number of
5    years of his or her total creditable service, equals at
6    least 85. Portions of years shall be counted as decimal
7    equivalents. For participants to whom subsection (b) of
8    Section 16-132 applies, the reference to age 60 in this
9    paragraph and the reference to 85 in this paragraph are
10    increased as provided in subsection (b) of Section 16-132.
11    (b) For purposes of this Section, final average salary
12shall be the average salary for the highest 4 consecutive years
13within the last 10 years of creditable service as determined
14under rules of the board. The minimum final average salary
15shall be considered to be $2,400 per year.
16    In the determination of final average salary for members
17other than elected officials and their appointees when such
18appointees are allowed by statute, that part of a member's
19salary for any year beginning after June 30, 1979 which exceeds
20the member's annual full-time salary rate with the same
21employer for the preceding year by more than 20% shall be
22excluded. The exclusion shall not apply in any year in which
23the member's creditable earnings are less than 50% of the
24preceding year's mean salary for downstate teachers as
25determined by the survey of school district salaries provided
26in Section 2-3.103 of the School Code.

 

 

09800HB1166ham006- 54 -LRB098 08855 EFG 42760 a

1    (c) In determining the amount of the retirement annuity
2under paragraph (B) of this Section, a fractional year shall be
3granted proportional credit.
4    (d) The retirement annuity determined under paragraph (B)
5of this Section shall be available only to members who render
6teaching service after July 1, 1947 for which member
7contributions are required, and to annuitants who re-enter
8under the provisions of Section 16-150.
9    (e) The maximum retirement annuity provided under
10paragraph (B) of this Section shall be 75% of final average
11salary.
12    (f) A member retiring after the effective date of this
13amendatory Act of 1998 shall receive a pension equal to 75% of
14final average salary if the member is qualified to receive a
15retirement annuity equal to at least 74.6% of final average
16salary under this Article or as proportional annuities under
17Article 20 of this Code.
18(Source: P.A. 94-4, eff. 6-1-05.)".