103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB4065

 

Introduced 5/4/2023, by Rep. Justin Slaughter - John M. Cabello

 

SYNOPSIS AS INTRODUCED:
 
See Index

    Amends the General Provisions, Downstate Police, Downstate Firefighter, Chicago Police, Chicago Firefighter, Illinois Municipal Retirement Fund (IMRF), State Employees, and State Universities Articles of the Illinois Pension Code. With regard to police officers, firefighters, and similar public safety employees, removes Tier 2 limitations on the amount of salary for annuity purposes; provides that the automatic annual increases to a retirement pension or survivor pension are calculated under the Tier 1 formulas; and provides that the amount of and eligibility for a retirement annuity are calculated under the Tier 1 provisions. Amends the State Finance Act. Provides that each fiscal year, the Comptroller shall pay to each unit of local government that makes a certification of certain employer costs under the Illinois Pension Code or under a specified provision of the Public Safety Employee Benefits Act an amount equal to 40% of the total amount certified by the unit of local government. Creates a continuing appropriation of that amount. Amends the Public Safety Employee Benefits Act. Provides that a unit of local government that provides health insurance to police officers and firefighters shall maintain the health insurance plans of these employees after retirement and shall contribute toward the cost of the annuitant's coverage under the unit of local government's health insurance plan an amount equal to 4% of that cost for each full year of creditable service upon which the annuitant's retirement annuity is based. Makes other and conforming changes. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.


LRB103 31966 RPS 60743 b

STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT
MAY APPLY

 

 

A BILL FOR

 

HB4065LRB103 31966 RPS 60743 b

1    AN ACT concerning public employee benefits.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The State Finance Act is amended by adding
5Sections 5.990 and 6z-139 as follows:
 
6    (30 ILCS 105/5.990 new)
7    Sec. 5.990. The Local Government Retirement Fund.
 
8    (30 ILCS 105/6z-139 new)
9    Sec. 6z-139. The Local Government Retirement Fund.
10    (a) There is created in the State treasury a special fund
11known as the Local Government Retirement Fund for the purpose
12of receiving funds from any source for the purposes of making
13payments toward public safety employee health insurance costs
14and retirement contributions as provided in this Section.
15    (b) Each fiscal year beginning with fiscal year 2024, the
16State Treasurer shall direct the State Comptroller to pay to
17each unit of local government that makes a certification under
18Sections 3-125, 4-118, 5-168, 6-165, and 7-172 of the Illinois
19Pension Code or under Section 11 of the Public Safety Employee
20Benefits Act an amount equal to 40% of the total amount
21certified by that unit of local government under all of the
22applicable Sections.

 

 

HB4065- 2 -LRB103 31966 RPS 60743 b

1    (c) If, for any reason, the aggregate appropriations made
2available are insufficient to meet the amount required in
3subsection (b), this Section shall constitute a continuing
4appropriation of the amount required under subsection (b).
 
5    Section 10. The Illinois Pension Code is amended by
6changing Sections 1-160, 3-111, 3-111.1, 3-112, 3-125, 4-109,
74-109.1, 4-114, 4-118, 5-155, 5-167.1, 5-168, 5-169, 6-165,
86-210, 7-142.1, 7-171, 7-172, 14-152.1, 15-108.1, 15-108.2,
915-135, 15-136, and 15-198 and by adding Sections 3-148.5,
104-138.15, 5-239, 6-231, and 15-203 as follows:
 
11    (40 ILCS 5/1-160)
12    (Text of Section from P.A. 102-719)
13    Sec. 1-160. Provisions applicable to new hires.
14    (a) The provisions of this Section apply to a person who,
15on or after January 1, 2011, first becomes a member or a
16participant under any reciprocal retirement system or pension
17fund established under this Code, other than a retirement
18system or pension fund established under Article 2, 3, 4, 5, 6,
197, 15, or 18 of this Code, notwithstanding any other provision
20of this Code to the contrary, but do not apply to any
21self-managed plan established under this Code or to any
22participant of the retirement plan established under Section
2322-101; except that this Section applies to a person who
24elected to establish alternative credits by electing in

 

 

HB4065- 3 -LRB103 31966 RPS 60743 b

1writing after January 1, 2011, but before August 8, 2011,
2under Section 7-145.1 of this Code. Notwithstanding anything
3to the contrary in this Section, for purposes of this Section,
4a person who is a Tier 1 regular employee as defined in Section
57-109.4 of this Code or who participated in a retirement
6system under Article 15 prior to January 1, 2011 shall be
7deemed a person who first became a member or participant prior
8to January 1, 2011 under any retirement system or pension fund
9subject to this Section. The changes made to this Section by
10Public Act 98-596 are a clarification of existing law and are
11intended to be retroactive to January 1, 2011 (the effective
12date of Public Act 96-889), notwithstanding the provisions of
13Section 1-103.1 of this Code.
14    This Section does not apply to a person who first becomes a
15noncovered employee under Article 14 on or after the
16implementation date of the plan created under Section 1-161
17for that Article, unless that person elects under subsection
18(b) of Section 1-161 to instead receive the benefits provided
19under this Section and the applicable provisions of that
20Article.
21    This Section does not apply to a person who first becomes a
22member or participant under Article 16 on or after the
23implementation date of the plan created under Section 1-161
24for that Article, unless that person elects under subsection
25(b) of Section 1-161 to instead receive the benefits provided
26under this Section and the applicable provisions of that

 

 

HB4065- 4 -LRB103 31966 RPS 60743 b

1Article.
2    This Section does not apply to a person who elects under
3subsection (c-5) of Section 1-161 to receive the benefits
4under Section 1-161.
5    This Section does not apply to a person who first becomes a
6member or participant of an affected pension fund on or after 6
7months after the resolution or ordinance date, as defined in
8Section 1-162, unless that person elects under subsection (c)
9of Section 1-162 to receive the benefits provided under this
10Section and the applicable provisions of the Article under
11which he or she is a member or participant.
12    (b) "Final average salary" means, except as otherwise
13provided in this subsection, the average monthly (or annual)
14salary obtained by dividing the total salary or earnings
15calculated under the Article applicable to the member or
16participant during the 96 consecutive months (or 8 consecutive
17years) of service within the last 120 months (or 10 years) of
18service in which the total salary or earnings calculated under
19the applicable Article was the highest by the number of months
20(or years) of service in that period. For the purposes of a
21person who first becomes a member or participant of any
22retirement system or pension fund to which this Section
23applies on or after January 1, 2011, in this Code, "final
24average salary" shall be substituted for the following:
25        (1) (Blank).
26        (2) In Articles 8, 9, 10, 11, and 12, "highest average

 

 

HB4065- 5 -LRB103 31966 RPS 60743 b

1    annual salary for any 4 consecutive years within the last
2    10 years of service immediately preceding the date of
3    withdrawal".
4        (3) In Article 13, "average final salary".
5        (4) In Article 14, "final average compensation".
6        (5) In Article 17, "average salary".
7        (6) In Section 22-207, "wages or salary received by
8    him at the date of retirement or discharge".
9    A member of the Teachers' Retirement System of the State
10of Illinois who retires on or after June 1, 2021 and for whom
11the 2020-2021 school year is used in the calculation of the
12member's final average salary shall use the higher of the
13following for the purpose of determining the member's final
14average salary:
15        (A) the amount otherwise calculated under the first
16    paragraph of this subsection; or
17        (B) an amount calculated by the Teachers' Retirement
18    System of the State of Illinois using the average of the
19    monthly (or annual) salary obtained by dividing the total
20    salary or earnings calculated under Article 16 applicable
21    to the member or participant during the 96 months (or 8
22    years) of service within the last 120 months (or 10 years)
23    of service in which the total salary or earnings
24    calculated under the Article was the highest by the number
25    of months (or years) of service in that period.
26    (b-5) Beginning on January 1, 2011, for all purposes under

 

 

HB4065- 6 -LRB103 31966 RPS 60743 b

1this Code (including without limitation the calculation of
2benefits and employee contributions), the annual earnings,
3salary, or wages (based on the plan year) of a member or
4participant to whom this Section applies shall not exceed
5$106,800; however, that amount shall annually thereafter be
6increased by the lesser of (i) 3% of that amount, including all
7previous adjustments, or (ii) one-half the annual unadjusted
8percentage increase (but not less than zero) in the consumer
9price index-u for the 12 months ending with the September
10preceding each November 1, including all previous adjustments.
11    For the purposes of this Section, "consumer price index-u"
12means the index published by the Bureau of Labor Statistics of
13the United States Department of Labor that measures the
14average change in prices of goods and services purchased by
15all urban consumers, United States city average, all items,
161982-84 = 100. The new amount resulting from each annual
17adjustment shall be determined by the Public Pension Division
18of the Department of Insurance and made available to the
19boards of the retirement systems and pension funds by November
201 of each year.
21    (c) A member or participant is entitled to a retirement
22annuity upon written application if he or she has attained age
2367 (age 65, with respect to service under Article 12 that is
24subject to this Section, for a member or participant under
25Article 12 who first becomes a member or participant under
26Article 12 on or after January 1, 2022 or who makes the

 

 

HB4065- 7 -LRB103 31966 RPS 60743 b

1election under item (i) of subsection (d-15) of this Section)
2and has at least 10 years of service credit and is otherwise
3eligible under the requirements of the applicable Article.
4    A member or participant who has attained age 62 (age 60,
5with respect to service under Article 12 that is subject to
6this Section, for a member or participant under Article 12 who
7first becomes a member or participant under Article 12 on or
8after January 1, 2022 or who makes the election under item (i)
9of subsection (d-15) of this Section) and has at least 10 years
10of service credit and is otherwise eligible under the
11requirements of the applicable Article may elect to receive
12the lower retirement annuity provided in subsection (d) of
13this Section.
14    (c-5) A person who first becomes a member or a participant
15subject to this Section on or after July 6, 2017 (the effective
16date of Public Act 100-23), notwithstanding any other
17provision of this Code to the contrary, is entitled to a
18retirement annuity under Article 8 or Article 11 upon written
19application if he or she has attained age 65 and has at least
2010 years of service credit and is otherwise eligible under the
21requirements of Article 8 or Article 11 of this Code,
22whichever is applicable.
23    (d) The retirement annuity of a member or participant who
24is retiring after attaining age 62 (age 60, with respect to
25service under Article 12 that is subject to this Section, for a
26member or participant under Article 12 who first becomes a

 

 

HB4065- 8 -LRB103 31966 RPS 60743 b

1member or participant under Article 12 on or after January 1,
22022 or who makes the election under item (i) of subsection
3(d-15) of this Section) with at least 10 years of service
4credit shall be reduced by one-half of 1% for each full month
5that the member's age is under age 67 (age 65, with respect to
6service under Article 12 that is subject to this Section, for a
7member or participant under Article 12 who first becomes a
8member or participant under Article 12 on or after January 1,
92022 or who makes the election under item (i) of subsection
10(d-15) of this Section).
11    (d-5) The retirement annuity payable under Article 8 or
12Article 11 to an eligible person subject to subsection (c-5)
13of this Section who is retiring at age 60 with at least 10
14years of service credit shall be reduced by one-half of 1% for
15each full month that the member's age is under age 65.
16    (d-10) Each person who first became a member or
17participant under Article 8 or Article 11 of this Code on or
18after January 1, 2011 and prior to July 6, 2017 (the effective
19date of Public Act 100-23) shall make an irrevocable election
20either:
21        (i) to be eligible for the reduced retirement age
22    provided in subsections (c-5) and (d-5) of this Section,
23    the eligibility for which is conditioned upon the member
24    or participant agreeing to the increases in employee
25    contributions for age and service annuities provided in
26    subsection (a-5) of Section 8-174 of this Code (for

 

 

HB4065- 9 -LRB103 31966 RPS 60743 b

1    service under Article 8) or subsection (a-5) of Section
2    11-170 of this Code (for service under Article 11); or
3        (ii) to not agree to item (i) of this subsection
4    (d-10), in which case the member or participant shall
5    continue to be subject to the retirement age provisions in
6    subsections (c) and (d) of this Section and the employee
7    contributions for age and service annuity as provided in
8    subsection (a) of Section 8-174 of this Code (for service
9    under Article 8) or subsection (a) of Section 11-170 of
10    this Code (for service under Article 11).
11    The election provided for in this subsection shall be made
12between October 1, 2017 and November 15, 2017. A person
13subject to this subsection who makes the required election
14shall remain bound by that election. A person subject to this
15subsection who fails for any reason to make the required
16election within the time specified in this subsection shall be
17deemed to have made the election under item (ii).
18    (d-15) Each person who first becomes a member or
19participant under Article 12 on or after January 1, 2011 and
20prior to January 1, 2022 shall make an irrevocable election
21either:
22        (i) to be eligible for the reduced retirement age
23    specified in subsections (c) and (d) of this Section, the
24    eligibility for which is conditioned upon the member or
25    participant agreeing to the increase in employee
26    contributions for service annuities specified in

 

 

HB4065- 10 -LRB103 31966 RPS 60743 b

1    subsection (b) of Section 12-150; or
2        (ii) to not agree to item (i) of this subsection
3    (d-15), in which case the member or participant shall not
4    be eligible for the reduced retirement age specified in
5    subsections (c) and (d) of this Section and shall not be
6    subject to the increase in employee contributions for
7    service annuities specified in subsection (b) of Section
8    12-150.
9    The election provided for in this subsection shall be made
10between January 1, 2022 and April 1, 2022. A person subject to
11this subsection who makes the required election shall remain
12bound by that election. A person subject to this subsection
13who fails for any reason to make the required election within
14the time specified in this subsection shall be deemed to have
15made the election under item (ii).
16    (e) Any retirement annuity or supplemental annuity shall
17be subject to annual increases on the January 1 occurring
18either on or after the attainment of age 67 (age 65, with
19respect to service under Article 12 that is subject to this
20Section, for a member or participant under Article 12 who
21first becomes a member or participant under Article 12 on or
22after January 1, 2022 or who makes the election under item (i)
23of subsection (d-15); and beginning on July 6, 2017 (the
24effective date of Public Act 100-23), age 65 with respect to
25service under Article 8 or Article 11 for eligible persons
26who: (i) are subject to subsection (c-5) of this Section; or

 

 

HB4065- 11 -LRB103 31966 RPS 60743 b

1(ii) made the election under item (i) of subsection (d-10) of
2this Section) or the first anniversary of the annuity start
3date, whichever is later. Each annual increase shall be
4calculated at 3% or one-half the annual unadjusted percentage
5increase (but not less than zero) in the consumer price
6index-u for the 12 months ending with the September preceding
7each November 1, whichever is less, of the originally granted
8retirement annuity. If the annual unadjusted percentage change
9in the consumer price index-u for the 12 months ending with the
10September preceding each November 1 is zero or there is a
11decrease, then the annuity shall not be increased.
12    For the purposes of Section 1-103.1 of this Code, the
13changes made to this Section by Public Act 102-263 are
14applicable without regard to whether the employee was in
15active service on or after August 6, 2021 (the effective date
16of Public Act 102-263).
17    For the purposes of Section 1-103.1 of this Code, the
18changes made to this Section by Public Act 100-23 are
19applicable without regard to whether the employee was in
20active service on or after July 6, 2017 (the effective date of
21Public Act 100-23).
22    (f) The initial survivor's or widow's annuity of an
23otherwise eligible survivor or widow of a retired member or
24participant who first became a member or participant on or
25after January 1, 2011 shall be in the amount of 66 2/3% of the
26retired member's or participant's retirement annuity at the

 

 

HB4065- 12 -LRB103 31966 RPS 60743 b

1date of death. In the case of the death of a member or
2participant who has not retired and who first became a member
3or participant on or after January 1, 2011, eligibility for a
4survivor's or widow's annuity shall be determined by the
5applicable Article of this Code. The initial benefit shall be
666 2/3% of the earned annuity without a reduction due to age. A
7child's annuity of an otherwise eligible child shall be in the
8amount prescribed under each Article if applicable. Any
9survivor's or widow's annuity shall be increased (1) on each
10January 1 occurring on or after the commencement of the
11annuity if the deceased member died while receiving a
12retirement annuity or (2) in other cases, on each January 1
13occurring after the first anniversary of the commencement of
14the annuity. Each annual increase shall be calculated at 3% or
15one-half the annual unadjusted percentage increase (but not
16less than zero) in the consumer price index-u for the 12 months
17ending with the September preceding each November 1, whichever
18is less, of the originally granted survivor's annuity. If the
19annual unadjusted percentage change in the consumer price
20index-u for the 12 months ending with the September preceding
21each November 1 is zero or there is a decrease, then the
22annuity shall not be increased.
23    (g) This Section does not apply to a person who The
24benefits in Section 14-110 apply if the person is a fire
25fighter in the fire protection service of a department, a
26security employee of the Department of Corrections or the

 

 

HB4065- 13 -LRB103 31966 RPS 60743 b

1Department of Juvenile Justice, or a security employee of the
2Department of Innovation and Technology, as those terms are
3defined in subsection (b) and subsection (c) of Section
414-110. A person who meets the requirements of this Section is
5entitled to an annuity calculated under the provisions of
6Section 14-110, in lieu of the regular or minimum retirement
7annuity, only if the person has withdrawn from service with
8not less than 20 years of eligible creditable service and has
9attained age 60, regardless of whether the attainment of age
1060 occurs while the person is still in service.
11    (g-5) This Section does not apply to a person who The
12benefits in Section 14-110 apply if the person is a State
13policeman, investigator for the Secretary of State,
14conservation police officer, investigator for the Department
15of Revenue or the Illinois Gaming Board, investigator for the
16Office of the Attorney General, Commerce Commission police
17officer, or arson investigator, as those terms are defined in
18subsection (b) and subsection (c) of Section 14-110. A person
19who meets the requirements of this Section is entitled to an
20annuity calculated under the provisions of Section 14-110, in
21lieu of the regular or minimum retirement annuity, only if the
22person has withdrawn from service with not less than 20 years
23of eligible creditable service and has attained age 55,
24regardless of whether the attainment of age 55 occurs while
25the person is still in service.
26    (h) If a person who first becomes a member or a participant

 

 

HB4065- 14 -LRB103 31966 RPS 60743 b

1of a retirement system or pension fund subject to this Section
2on or after January 1, 2011 is receiving a retirement annuity
3or retirement pension under that system or fund and becomes a
4member or participant under any other system or fund created
5by this Code and is employed on a full-time basis, except for
6those members or participants exempted from the provisions of
7this Section under subsection (a) of this Section, then the
8person's retirement annuity or retirement pension under that
9system or fund shall be suspended during that employment. Upon
10termination of that employment, the person's retirement
11annuity or retirement pension payments shall resume and be
12recalculated if recalculation is provided for under the
13applicable Article of this Code.
14    If a person who first becomes a member of a retirement
15system or pension fund subject to this Section on or after
16January 1, 2012 and is receiving a retirement annuity or
17retirement pension under that system or fund and accepts on a
18contractual basis a position to provide services to a
19governmental entity from which he or she has retired, then
20that person's annuity or retirement pension earned as an
21active employee of the employer shall be suspended during that
22contractual service. A person receiving an annuity or
23retirement pension under this Code shall notify the pension
24fund or retirement system from which he or she is receiving an
25annuity or retirement pension, as well as his or her
26contractual employer, of his or her retirement status before

 

 

HB4065- 15 -LRB103 31966 RPS 60743 b

1accepting contractual employment. A person who fails to submit
2such notification shall be guilty of a Class A misdemeanor and
3required to pay a fine of $1,000. Upon termination of that
4contractual employment, the person's retirement annuity or
5retirement pension payments shall resume and, if appropriate,
6be recalculated under the applicable provisions of this Code.
7    (i) (Blank).
8    (i-5) It is the intent of this amendatory Act of the 103rd
9General Assembly to provide to the participants specified in
10subsections (g) and (g-5) who first became participants on or
11after January 1, 2011 the same level of benefits and
12eligibility criteria for benefits as those who first became
13participants before January 1, 2011. The changes made to this
14Article by this amendatory Act of the 103rd General Assembly
15that provide benefit increases for participants specified in
16subsections (g) and (g-5) apply without regard to whether the
17participant was in service on or after the effective date of
18this amendatory Act of the 103rd General Assembly,
19notwithstanding the provisions of Section 1-103.1. The benefit
20increases are intended to apply prospectively and do not
21entitle a participant to retroactive benefit payments or
22increases. The changes made to this Article by this amendatory
23Act of the 103rd General Assembly shall not cause or otherwise
24result in any retroactive adjustment of any employee
25contributions.
26    (j) In the case of a conflict between the provisions of

 

 

HB4065- 16 -LRB103 31966 RPS 60743 b

1this Section and any other provision of this Code, the
2provisions of this Section shall control.
3(Source: P.A. 101-610, eff. 1-1-20; 102-16, eff. 6-17-21;
4102-210, eff. 1-1-22; 102-263, eff. 8-6-21; 102-719, eff.
55-6-22.)
 
6    (Text of Section from P.A. 102-813)
7    Sec. 1-160. Provisions applicable to new hires.
8    (a) The provisions of this Section apply to a person who,
9on or after January 1, 2011, first becomes a member or a
10participant under any reciprocal retirement system or pension
11fund established under this Code, other than a retirement
12system or pension fund established under Article 2, 3, 4, 5, 6,
137, 15, or 18 of this Code, notwithstanding any other provision
14of this Code to the contrary, but do not apply to any
15self-managed plan established under this Code or to any
16participant of the retirement plan established under Section
1722-101; except that this Section applies to a person who
18elected to establish alternative credits by electing in
19writing after January 1, 2011, but before August 8, 2011,
20under Section 7-145.1 of this Code. Notwithstanding anything
21to the contrary in this Section, for purposes of this Section,
22a person who is a Tier 1 regular employee as defined in Section
237-109.4 of this Code or who participated in a retirement
24system under Article 15 prior to January 1, 2011 shall be
25deemed a person who first became a member or participant prior

 

 

HB4065- 17 -LRB103 31966 RPS 60743 b

1to January 1, 2011 under any retirement system or pension fund
2subject to this Section. The changes made to this Section by
3Public Act 98-596 are a clarification of existing law and are
4intended to be retroactive to January 1, 2011 (the effective
5date of Public Act 96-889), notwithstanding the provisions of
6Section 1-103.1 of this Code.
7    This Section does not apply to a person who first becomes a
8noncovered employee under Article 14 on or after the
9implementation date of the plan created under Section 1-161
10for that Article, unless that person elects under subsection
11(b) of Section 1-161 to instead receive the benefits provided
12under this Section and the applicable provisions of that
13Article.
14    This Section does not apply to a person who first becomes a
15member or participant under Article 16 on or after the
16implementation date of the plan created under Section 1-161
17for that Article, unless that person elects under subsection
18(b) of Section 1-161 to instead receive the benefits provided
19under this Section and the applicable provisions of that
20Article.
21    This Section does not apply to a person who elects under
22subsection (c-5) of Section 1-161 to receive the benefits
23under Section 1-161.
24    This Section does not apply to a person who first becomes a
25member or participant of an affected pension fund on or after 6
26months after the resolution or ordinance date, as defined in

 

 

HB4065- 18 -LRB103 31966 RPS 60743 b

1Section 1-162, unless that person elects under subsection (c)
2of Section 1-162 to receive the benefits provided under this
3Section and the applicable provisions of the Article under
4which he or she is a member or participant.
5    (b) "Final average salary" means, except as otherwise
6provided in this subsection, the average monthly (or annual)
7salary obtained by dividing the total salary or earnings
8calculated under the Article applicable to the member or
9participant during the 96 consecutive months (or 8 consecutive
10years) of service within the last 120 months (or 10 years) of
11service in which the total salary or earnings calculated under
12the applicable Article was the highest by the number of months
13(or years) of service in that period. For the purposes of a
14person who first becomes a member or participant of any
15retirement system or pension fund to which this Section
16applies on or after January 1, 2011, in this Code, "final
17average salary" shall be substituted for the following:
18        (1) (Blank).
19        (2) In Articles 8, 9, 10, 11, and 12, "highest average
20    annual salary for any 4 consecutive years within the last
21    10 years of service immediately preceding the date of
22    withdrawal".
23        (3) In Article 13, "average final salary".
24        (4) In Article 14, "final average compensation".
25        (5) In Article 17, "average salary".
26        (6) In Section 22-207, "wages or salary received by

 

 

HB4065- 19 -LRB103 31966 RPS 60743 b

1    him at the date of retirement or discharge".
2    A member of the Teachers' Retirement System of the State
3of Illinois who retires on or after June 1, 2021 and for whom
4the 2020-2021 school year is used in the calculation of the
5member's final average salary shall use the higher of the
6following for the purpose of determining the member's final
7average salary:
8        (A) the amount otherwise calculated under the first
9    paragraph of this subsection; or
10        (B) an amount calculated by the Teachers' Retirement
11    System of the State of Illinois using the average of the
12    monthly (or annual) salary obtained by dividing the total
13    salary or earnings calculated under Article 16 applicable
14    to the member or participant during the 96 months (or 8
15    years) of service within the last 120 months (or 10 years)
16    of service in which the total salary or earnings
17    calculated under the Article was the highest by the number
18    of months (or years) of service in that period.
19    (b-5) Beginning on January 1, 2011, for all purposes under
20this Code (including without limitation the calculation of
21benefits and employee contributions), the annual earnings,
22salary, or wages (based on the plan year) of a member or
23participant to whom this Section applies shall not exceed
24$106,800; however, that amount shall annually thereafter be
25increased by the lesser of (i) 3% of that amount, including all
26previous adjustments, or (ii) one-half the annual unadjusted

 

 

HB4065- 20 -LRB103 31966 RPS 60743 b

1percentage increase (but not less than zero) in the consumer
2price index-u for the 12 months ending with the September
3preceding each November 1, including all previous adjustments.
4    For the purposes of this Section, "consumer price index-u"
5means the index published by the Bureau of Labor Statistics of
6the United States Department of Labor that measures the
7average change in prices of goods and services purchased by
8all urban consumers, United States city average, all items,
91982-84 = 100. The new amount resulting from each annual
10adjustment shall be determined by the Public Pension Division
11of the Department of Insurance and made available to the
12boards of the retirement systems and pension funds by November
131 of each year.
14    (c) A member or participant is entitled to a retirement
15annuity upon written application if he or she has attained age
1667 (age 65, with respect to service under Article 12 that is
17subject to this Section, for a member or participant under
18Article 12 who first becomes a member or participant under
19Article 12 on or after January 1, 2022 or who makes the
20election under item (i) of subsection (d-15) of this Section)
21and has at least 10 years of service credit and is otherwise
22eligible under the requirements of the applicable Article.
23    A member or participant who has attained age 62 (age 60,
24with respect to service under Article 12 that is subject to
25this Section, for a member or participant under Article 12 who
26first becomes a member or participant under Article 12 on or

 

 

HB4065- 21 -LRB103 31966 RPS 60743 b

1after January 1, 2022 or who makes the election under item (i)
2of subsection (d-15) of this Section) and has at least 10 years
3of service credit and is otherwise eligible under the
4requirements of the applicable Article may elect to receive
5the lower retirement annuity provided in subsection (d) of
6this Section.
7    (c-5) A person who first becomes a member or a participant
8subject to this Section on or after July 6, 2017 (the effective
9date of Public Act 100-23), notwithstanding any other
10provision of this Code to the contrary, is entitled to a
11retirement annuity under Article 8 or Article 11 upon written
12application if he or she has attained age 65 and has at least
1310 years of service credit and is otherwise eligible under the
14requirements of Article 8 or Article 11 of this Code,
15whichever is applicable.
16    (d) The retirement annuity of a member or participant who
17is retiring after attaining age 62 (age 60, with respect to
18service under Article 12 that is subject to this Section, for a
19member or participant under Article 12 who first becomes a
20member or participant under Article 12 on or after January 1,
212022 or who makes the election under item (i) of subsection
22(d-15) of this Section) with at least 10 years of service
23credit shall be reduced by one-half of 1% for each full month
24that the member's age is under age 67 (age 65, with respect to
25service under Article 12 that is subject to this Section, for a
26member or participant under Article 12 who first becomes a

 

 

HB4065- 22 -LRB103 31966 RPS 60743 b

1member or participant under Article 12 on or after January 1,
22022 or who makes the election under item (i) of subsection
3(d-15) of this Section).
4    (d-5) The retirement annuity payable under Article 8 or
5Article 11 to an eligible person subject to subsection (c-5)
6of this Section who is retiring at age 60 with at least 10
7years of service credit shall be reduced by one-half of 1% for
8each full month that the member's age is under age 65.
9    (d-10) Each person who first became a member or
10participant under Article 8 or Article 11 of this Code on or
11after January 1, 2011 and prior to July 6, 2017 (the effective
12date of Public Act 100-23) shall make an irrevocable election
13either:
14        (i) to be eligible for the reduced retirement age
15    provided in subsections (c-5) and (d-5) of this Section,
16    the eligibility for which is conditioned upon the member
17    or participant agreeing to the increases in employee
18    contributions for age and service annuities provided in
19    subsection (a-5) of Section 8-174 of this Code (for
20    service under Article 8) or subsection (a-5) of Section
21    11-170 of this Code (for service under Article 11); or
22        (ii) to not agree to item (i) of this subsection
23    (d-10), in which case the member or participant shall
24    continue to be subject to the retirement age provisions in
25    subsections (c) and (d) of this Section and the employee
26    contributions for age and service annuity as provided in

 

 

HB4065- 23 -LRB103 31966 RPS 60743 b

1    subsection (a) of Section 8-174 of this Code (for service
2    under Article 8) or subsection (a) of Section 11-170 of
3    this Code (for service under Article 11).
4    The election provided for in this subsection shall be made
5between October 1, 2017 and November 15, 2017. A person
6subject to this subsection who makes the required election
7shall remain bound by that election. A person subject to this
8subsection who fails for any reason to make the required
9election within the time specified in this subsection shall be
10deemed to have made the election under item (ii).
11    (d-15) Each person who first becomes a member or
12participant under Article 12 on or after January 1, 2011 and
13prior to January 1, 2022 shall make an irrevocable election
14either:
15        (i) to be eligible for the reduced retirement age
16    specified in subsections (c) and (d) of this Section, the
17    eligibility for which is conditioned upon the member or
18    participant agreeing to the increase in employee
19    contributions for service annuities specified in
20    subsection (b) of Section 12-150; or
21        (ii) to not agree to item (i) of this subsection
22    (d-15), in which case the member or participant shall not
23    be eligible for the reduced retirement age specified in
24    subsections (c) and (d) of this Section and shall not be
25    subject to the increase in employee contributions for
26    service annuities specified in subsection (b) of Section

 

 

HB4065- 24 -LRB103 31966 RPS 60743 b

1    12-150.
2    The election provided for in this subsection shall be made
3between January 1, 2022 and April 1, 2022. A person subject to
4this subsection who makes the required election shall remain
5bound by that election. A person subject to this subsection
6who fails for any reason to make the required election within
7the time specified in this subsection shall be deemed to have
8made the election under item (ii).
9    (e) Any retirement annuity or supplemental annuity shall
10be subject to annual increases on the January 1 occurring
11either on or after the attainment of age 67 (age 65, with
12respect to service under Article 12 that is subject to this
13Section, for a member or participant under Article 12 who
14first becomes a member or participant under Article 12 on or
15after January 1, 2022 or who makes the election under item (i)
16of subsection (d-15); and beginning on July 6, 2017 (the
17effective date of Public Act 100-23), age 65 with respect to
18service under Article 8 or Article 11 for eligible persons
19who: (i) are subject to subsection (c-5) of this Section; or
20(ii) made the election under item (i) of subsection (d-10) of
21this Section) or the first anniversary of the annuity start
22date, whichever is later. Each annual increase shall be
23calculated at 3% or one-half the annual unadjusted percentage
24increase (but not less than zero) in the consumer price
25index-u for the 12 months ending with the September preceding
26each November 1, whichever is less, of the originally granted

 

 

HB4065- 25 -LRB103 31966 RPS 60743 b

1retirement annuity. If the annual unadjusted percentage change
2in the consumer price index-u for the 12 months ending with the
3September preceding each November 1 is zero or there is a
4decrease, then the annuity shall not be increased.
5    For the purposes of Section 1-103.1 of this Code, the
6changes made to this Section by Public Act 102-263 are
7applicable without regard to whether the employee was in
8active service on or after August 6, 2021 (the effective date
9of Public Act 102-263).
10    For the purposes of Section 1-103.1 of this Code, the
11changes made to this Section by Public Act 100-23 are
12applicable without regard to whether the employee was in
13active service on or after July 6, 2017 (the effective date of
14Public Act 100-23).
15    (f) The initial survivor's or widow's annuity of an
16otherwise eligible survivor or widow of a retired member or
17participant who first became a member or participant on or
18after January 1, 2011 shall be in the amount of 66 2/3% of the
19retired member's or participant's retirement annuity at the
20date of death. In the case of the death of a member or
21participant who has not retired and who first became a member
22or participant on or after January 1, 2011, eligibility for a
23survivor's or widow's annuity shall be determined by the
24applicable Article of this Code. The initial benefit shall be
2566 2/3% of the earned annuity without a reduction due to age. A
26child's annuity of an otherwise eligible child shall be in the

 

 

HB4065- 26 -LRB103 31966 RPS 60743 b

1amount prescribed under each Article if applicable. Any
2survivor's or widow's annuity shall be increased (1) on each
3January 1 occurring on or after the commencement of the
4annuity if the deceased member died while receiving a
5retirement annuity or (2) in other cases, on each January 1
6occurring after the first anniversary of the commencement of
7the annuity. Each annual increase shall be calculated at 3% or
8one-half the annual unadjusted percentage increase (but not
9less than zero) in the consumer price index-u for the 12 months
10ending with the September preceding each November 1, whichever
11is less, of the originally granted survivor's annuity. If the
12annual unadjusted percentage change in the consumer price
13index-u for the 12 months ending with the September preceding
14each November 1 is zero or there is a decrease, then the
15annuity shall not be increased.
16    (g) This Section does not apply to a person who The
17benefits in Section 14-110 apply only if the person is a State
18policeman, a fire fighter in the fire protection service of a
19department, a conservation police officer, an investigator for
20the Secretary of State, an arson investigator, a Commerce
21Commission police officer, investigator for the Department of
22Revenue or the Illinois Gaming Board, a security employee of
23the Department of Corrections or the Department of Juvenile
24Justice, or a security employee of the Department of
25Innovation and Technology, as those terms are defined in
26subsection (b) and subsection (c) of Section 14-110. A person

 

 

HB4065- 27 -LRB103 31966 RPS 60743 b

1who meets the requirements of this Section is entitled to an
2annuity calculated under the provisions of Section 14-110, in
3lieu of the regular or minimum retirement annuity, only if the
4person has withdrawn from service with not less than 20 years
5of eligible creditable service and has attained age 60,
6regardless of whether the attainment of age 60 occurs while
7the person is still in service.
8    (h) If a person who first becomes a member or a participant
9of a retirement system or pension fund subject to this Section
10on or after January 1, 2011 is receiving a retirement annuity
11or retirement pension under that system or fund and becomes a
12member or participant under any other system or fund created
13by this Code and is employed on a full-time basis, except for
14those members or participants exempted from the provisions of
15this Section under subsection (a) of this Section, then the
16person's retirement annuity or retirement pension under that
17system or fund shall be suspended during that employment. Upon
18termination of that employment, the person's retirement
19annuity or retirement pension payments shall resume and be
20recalculated if recalculation is provided for under the
21applicable Article of this Code.
22    If a person who first becomes a member of a retirement
23system or pension fund subject to this Section on or after
24January 1, 2012 and is receiving a retirement annuity or
25retirement pension under that system or fund and accepts on a
26contractual basis a position to provide services to a

 

 

HB4065- 28 -LRB103 31966 RPS 60743 b

1governmental entity from which he or she has retired, then
2that person's annuity or retirement pension earned as an
3active employee of the employer shall be suspended during that
4contractual service. A person receiving an annuity or
5retirement pension under this Code shall notify the pension
6fund or retirement system from which he or she is receiving an
7annuity or retirement pension, as well as his or her
8contractual employer, of his or her retirement status before
9accepting contractual employment. A person who fails to submit
10such notification shall be guilty of a Class A misdemeanor and
11required to pay a fine of $1,000. Upon termination of that
12contractual employment, the person's retirement annuity or
13retirement pension payments shall resume and, if appropriate,
14be recalculated under the applicable provisions of this Code.
15    (i) (Blank).
16    (i-5) It is the intent of this amendatory Act of the 103rd
17General Assembly to provide to the participants specified in
18subsections (g) and (g-5) who first became participants on or
19after January 1, 2011 the same level of benefits and
20eligibility criteria for benefits as those who first became
21participants before January 1, 2011. The changes made to this
22Article by this amendatory Act of the 103rd General Assembly
23that provide benefit increases for participants specified in
24subsections (g) and (g-5) apply without regard to whether the
25participant was in service on or after the effective date of
26this amendatory Act of the 103rd General Assembly,

 

 

HB4065- 29 -LRB103 31966 RPS 60743 b

1notwithstanding the provisions of Section 1-103.1. The benefit
2increases are intended to apply prospectively and do not
3entitle a participant to retroactive benefit payments or
4increases. The changes made to this Article by this amendatory
5Act of the 103rd General Assembly shall not cause or otherwise
6result in any retroactive adjustment of any employee
7contributions.
8    (j) In the case of a conflict between the provisions of
9this Section and any other provision of this Code, the
10provisions of this Section shall control.
11(Source: P.A. 101-610, eff. 1-1-20; 102-16, eff. 6-17-21;
12102-210, eff. 1-1-22; 102-263, eff. 8-6-21; 102-813, eff.
135-13-22.)
 
14    (Text of Section from P.A. 102-956)
15    Sec. 1-160. Provisions applicable to new hires.
16    (a) The provisions of this Section apply to a person who,
17on or after January 1, 2011, first becomes a member or a
18participant under any reciprocal retirement system or pension
19fund established under this Code, other than a retirement
20system or pension fund established under Article 2, 3, 4, 5, 6,
217, 15, or 18 of this Code, notwithstanding any other provision
22of this Code to the contrary, but do not apply to any
23self-managed plan established under this Code or to any
24participant of the retirement plan established under Section
2522-101; except that this Section applies to a person who

 

 

HB4065- 30 -LRB103 31966 RPS 60743 b

1elected to establish alternative credits by electing in
2writing after January 1, 2011, but before August 8, 2011,
3under Section 7-145.1 of this Code. Notwithstanding anything
4to the contrary in this Section, for purposes of this Section,
5a person who is a Tier 1 regular employee as defined in Section
67-109.4 of this Code or who participated in a retirement
7system under Article 15 prior to January 1, 2011 shall be
8deemed a person who first became a member or participant prior
9to January 1, 2011 under any retirement system or pension fund
10subject to this Section. The changes made to this Section by
11Public Act 98-596 are a clarification of existing law and are
12intended to be retroactive to January 1, 2011 (the effective
13date of Public Act 96-889), notwithstanding the provisions of
14Section 1-103.1 of this Code.
15    This Section does not apply to a person who first becomes a
16noncovered employee under Article 14 on or after the
17implementation date of the plan created under Section 1-161
18for that Article, unless that person elects under subsection
19(b) of Section 1-161 to instead receive the benefits provided
20under this Section and the applicable provisions of that
21Article.
22    This Section does not apply to a person who first becomes a
23member or participant under Article 16 on or after the
24implementation date of the plan created under Section 1-161
25for that Article, unless that person elects under subsection
26(b) of Section 1-161 to instead receive the benefits provided

 

 

HB4065- 31 -LRB103 31966 RPS 60743 b

1under this Section and the applicable provisions of that
2Article.
3    This Section does not apply to a person who elects under
4subsection (c-5) of Section 1-161 to receive the benefits
5under Section 1-161.
6    This Section does not apply to a person who first becomes a
7member or participant of an affected pension fund on or after 6
8months after the resolution or ordinance date, as defined in
9Section 1-162, unless that person elects under subsection (c)
10of Section 1-162 to receive the benefits provided under this
11Section and the applicable provisions of the Article under
12which he or she is a member or participant.
13    (b) "Final average salary" means, except as otherwise
14provided in this subsection, the average monthly (or annual)
15salary obtained by dividing the total salary or earnings
16calculated under the Article applicable to the member or
17participant during the 96 consecutive months (or 8 consecutive
18years) of service within the last 120 months (or 10 years) of
19service in which the total salary or earnings calculated under
20the applicable Article was the highest by the number of months
21(or years) of service in that period. For the purposes of a
22person who first becomes a member or participant of any
23retirement system or pension fund to which this Section
24applies on or after January 1, 2011, in this Code, "final
25average salary" shall be substituted for the following:
26        (1) (Blank).

 

 

HB4065- 32 -LRB103 31966 RPS 60743 b

1        (2) In Articles 8, 9, 10, 11, and 12, "highest average
2    annual salary for any 4 consecutive years within the last
3    10 years of service immediately preceding the date of
4    withdrawal".
5        (3) In Article 13, "average final salary".
6        (4) In Article 14, "final average compensation".
7        (5) In Article 17, "average salary".
8        (6) In Section 22-207, "wages or salary received by
9    him at the date of retirement or discharge".
10    A member of the Teachers' Retirement System of the State
11of Illinois who retires on or after June 1, 2021 and for whom
12the 2020-2021 school year is used in the calculation of the
13member's final average salary shall use the higher of the
14following for the purpose of determining the member's final
15average salary:
16        (A) the amount otherwise calculated under the first
17    paragraph of this subsection; or
18        (B) an amount calculated by the Teachers' Retirement
19    System of the State of Illinois using the average of the
20    monthly (or annual) salary obtained by dividing the total
21    salary or earnings calculated under Article 16 applicable
22    to the member or participant during the 96 months (or 8
23    years) of service within the last 120 months (or 10 years)
24    of service in which the total salary or earnings
25    calculated under the Article was the highest by the number
26    of months (or years) of service in that period.

 

 

HB4065- 33 -LRB103 31966 RPS 60743 b

1    (b-5) Beginning on January 1, 2011, for all purposes under
2this Code (including without limitation the calculation of
3benefits and employee contributions), the annual earnings,
4salary, or wages (based on the plan year) of a member or
5participant to whom this Section applies shall not exceed
6$106,800; however, that amount shall annually thereafter be
7increased by the lesser of (i) 3% of that amount, including all
8previous adjustments, or (ii) one-half the annual unadjusted
9percentage increase (but not less than zero) in the consumer
10price index-u for the 12 months ending with the September
11preceding each November 1, including all previous adjustments.
12    For the purposes of this Section, "consumer price index-u"
13means the index published by the Bureau of Labor Statistics of
14the United States Department of Labor that measures the
15average change in prices of goods and services purchased by
16all urban consumers, United States city average, all items,
171982-84 = 100. The new amount resulting from each annual
18adjustment shall be determined by the Public Pension Division
19of the Department of Insurance and made available to the
20boards of the retirement systems and pension funds by November
211 of each year.
22    (c) A member or participant is entitled to a retirement
23annuity upon written application if he or she has attained age
2467 (age 65, with respect to service under Article 12 that is
25subject to this Section, for a member or participant under
26Article 12 who first becomes a member or participant under

 

 

HB4065- 34 -LRB103 31966 RPS 60743 b

1Article 12 on or after January 1, 2022 or who makes the
2election under item (i) of subsection (d-15) of this Section)
3and has at least 10 years of service credit and is otherwise
4eligible under the requirements of the applicable Article.
5    A member or participant who has attained age 62 (age 60,
6with respect to service under Article 12 that is subject to
7this Section, for a member or participant under Article 12 who
8first becomes a member or participant under Article 12 on or
9after January 1, 2022 or who makes the election under item (i)
10of subsection (d-15) of this Section) and has at least 10 years
11of service credit and is otherwise eligible under the
12requirements of the applicable Article may elect to receive
13the lower retirement annuity provided in subsection (d) of
14this Section.
15    (c-5) A person who first becomes a member or a participant
16subject to this Section on or after July 6, 2017 (the effective
17date of Public Act 100-23), notwithstanding any other
18provision of this Code to the contrary, is entitled to a
19retirement annuity under Article 8 or Article 11 upon written
20application if he or she has attained age 65 and has at least
2110 years of service credit and is otherwise eligible under the
22requirements of Article 8 or Article 11 of this Code,
23whichever is applicable.
24    (d) The retirement annuity of a member or participant who
25is retiring after attaining age 62 (age 60, with respect to
26service under Article 12 that is subject to this Section, for a

 

 

HB4065- 35 -LRB103 31966 RPS 60743 b

1member or participant under Article 12 who first becomes a
2member or participant under Article 12 on or after January 1,
32022 or who makes the election under item (i) of subsection
4(d-15) of this Section) with at least 10 years of service
5credit shall be reduced by one-half of 1% for each full month
6that the member's age is under age 67 (age 65, with respect to
7service under Article 12 that is subject to this Section, for a
8member or participant under Article 12 who first becomes a
9member or participant under Article 12 on or after January 1,
102022 or who makes the election under item (i) of subsection
11(d-15) of this Section).
12    (d-5) The retirement annuity payable under Article 8 or
13Article 11 to an eligible person subject to subsection (c-5)
14of this Section who is retiring at age 60 with at least 10
15years of service credit shall be reduced by one-half of 1% for
16each full month that the member's age is under age 65.
17    (d-10) Each person who first became a member or
18participant under Article 8 or Article 11 of this Code on or
19after January 1, 2011 and prior to July 6, 2017 (the effective
20date of Public Act 100-23) shall make an irrevocable election
21either:
22        (i) to be eligible for the reduced retirement age
23    provided in subsections (c-5) and (d-5) of this Section,
24    the eligibility for which is conditioned upon the member
25    or participant agreeing to the increases in employee
26    contributions for age and service annuities provided in

 

 

HB4065- 36 -LRB103 31966 RPS 60743 b

1    subsection (a-5) of Section 8-174 of this Code (for
2    service under Article 8) or subsection (a-5) of Section
3    11-170 of this Code (for service under Article 11); or
4        (ii) to not agree to item (i) of this subsection
5    (d-10), in which case the member or participant shall
6    continue to be subject to the retirement age provisions in
7    subsections (c) and (d) of this Section and the employee
8    contributions for age and service annuity as provided in
9    subsection (a) of Section 8-174 of this Code (for service
10    under Article 8) or subsection (a) of Section 11-170 of
11    this Code (for service under Article 11).
12    The election provided for in this subsection shall be made
13between October 1, 2017 and November 15, 2017. A person
14subject to this subsection who makes the required election
15shall remain bound by that election. A person subject to this
16subsection who fails for any reason to make the required
17election within the time specified in this subsection shall be
18deemed to have made the election under item (ii).
19    (d-15) Each person who first becomes a member or
20participant under Article 12 on or after January 1, 2011 and
21prior to January 1, 2022 shall make an irrevocable election
22either:
23        (i) to be eligible for the reduced retirement age
24    specified in subsections (c) and (d) of this Section, the
25    eligibility for which is conditioned upon the member or
26    participant agreeing to the increase in employee

 

 

HB4065- 37 -LRB103 31966 RPS 60743 b

1    contributions for service annuities specified in
2    subsection (b) of Section 12-150; or
3        (ii) to not agree to item (i) of this subsection
4    (d-15), in which case the member or participant shall not
5    be eligible for the reduced retirement age specified in
6    subsections (c) and (d) of this Section and shall not be
7    subject to the increase in employee contributions for
8    service annuities specified in subsection (b) of Section
9    12-150.
10    The election provided for in this subsection shall be made
11between January 1, 2022 and April 1, 2022. A person subject to
12this subsection who makes the required election shall remain
13bound by that election. A person subject to this subsection
14who fails for any reason to make the required election within
15the time specified in this subsection shall be deemed to have
16made the election under item (ii).
17    (e) Any retirement annuity or supplemental annuity shall
18be subject to annual increases on the January 1 occurring
19either on or after the attainment of age 67 (age 65, with
20respect to service under Article 12 that is subject to this
21Section, for a member or participant under Article 12 who
22first becomes a member or participant under Article 12 on or
23after January 1, 2022 or who makes the election under item (i)
24of subsection (d-15); and beginning on July 6, 2017 (the
25effective date of Public Act 100-23), age 65 with respect to
26service under Article 8 or Article 11 for eligible persons

 

 

HB4065- 38 -LRB103 31966 RPS 60743 b

1who: (i) are subject to subsection (c-5) of this Section; or
2(ii) made the election under item (i) of subsection (d-10) of
3this Section) or the first anniversary of the annuity start
4date, whichever is later. Each annual increase shall be
5calculated at 3% or one-half the annual unadjusted percentage
6increase (but not less than zero) in the consumer price
7index-u for the 12 months ending with the September preceding
8each November 1, whichever is less, of the originally granted
9retirement annuity. If the annual unadjusted percentage change
10in the consumer price index-u for the 12 months ending with the
11September preceding each November 1 is zero or there is a
12decrease, then the annuity shall not be increased.
13    For the purposes of Section 1-103.1 of this Code, the
14changes made to this Section by Public Act 102-263 are
15applicable without regard to whether the employee was in
16active service on or after August 6, 2021 (the effective date
17of Public Act 102-263).
18    For the purposes of Section 1-103.1 of this Code, the
19changes made to this Section by Public Act 100-23 are
20applicable without regard to whether the employee was in
21active service on or after July 6, 2017 (the effective date of
22Public Act 100-23).
23    (f) The initial survivor's or widow's annuity of an
24otherwise eligible survivor or widow of a retired member or
25participant who first became a member or participant on or
26after January 1, 2011 shall be in the amount of 66 2/3% of the

 

 

HB4065- 39 -LRB103 31966 RPS 60743 b

1retired member's or participant's retirement annuity at the
2date of death. In the case of the death of a member or
3participant who has not retired and who first became a member
4or participant on or after January 1, 2011, eligibility for a
5survivor's or widow's annuity shall be determined by the
6applicable Article of this Code. The initial benefit shall be
766 2/3% of the earned annuity without a reduction due to age. A
8child's annuity of an otherwise eligible child shall be in the
9amount prescribed under each Article if applicable. Any
10survivor's or widow's annuity shall be increased (1) on each
11January 1 occurring on or after the commencement of the
12annuity if the deceased member died while receiving a
13retirement annuity or (2) in other cases, on each January 1
14occurring after the first anniversary of the commencement of
15the annuity. Each annual increase shall be calculated at 3% or
16one-half the annual unadjusted percentage increase (but not
17less than zero) in the consumer price index-u for the 12 months
18ending with the September preceding each November 1, whichever
19is less, of the originally granted survivor's annuity. If the
20annual unadjusted percentage change in the consumer price
21index-u for the 12 months ending with the September preceding
22each November 1 is zero or there is a decrease, then the
23annuity shall not be increased.
24    (g) This Section does not apply to a person who The
25benefits in Section 14-110 apply only if the person is a State
26policeman, a fire fighter in the fire protection service of a

 

 

HB4065- 40 -LRB103 31966 RPS 60743 b

1department, a conservation police officer, an investigator for
2the Secretary of State, an investigator for the Office of the
3Attorney General, an arson investigator, a Commerce Commission
4police officer, investigator for the Department of Revenue or
5the Illinois Gaming Board, a security employee of the
6Department of Corrections or the Department of Juvenile
7Justice, or a security employee of the Department of
8Innovation and Technology, as those terms are defined in
9subsection (b) and subsection (c) of Section 14-110. A person
10who meets the requirements of this Section is entitled to an
11annuity calculated under the provisions of Section 14-110, in
12lieu of the regular or minimum retirement annuity, only if the
13person has withdrawn from service with not less than 20 years
14of eligible creditable service and has attained age 60,
15regardless of whether the attainment of age 60 occurs while
16the person is still in service.
17    (h) If a person who first becomes a member or a participant
18of a retirement system or pension fund subject to this Section
19on or after January 1, 2011 is receiving a retirement annuity
20or retirement pension under that system or fund and becomes a
21member or participant under any other system or fund created
22by this Code and is employed on a full-time basis, except for
23those members or participants exempted from the provisions of
24this Section under subsection (a) of this Section, then the
25person's retirement annuity or retirement pension under that
26system or fund shall be suspended during that employment. Upon

 

 

HB4065- 41 -LRB103 31966 RPS 60743 b

1termination of that employment, the person's retirement
2annuity or retirement pension payments shall resume and be
3recalculated if recalculation is provided for under the
4applicable Article of this Code.
5    If a person who first becomes a member of a retirement
6system or pension fund subject to this Section on or after
7January 1, 2012 and is receiving a retirement annuity or
8retirement pension under that system or fund and accepts on a
9contractual basis a position to provide services to a
10governmental entity from which he or she has retired, then
11that person's annuity or retirement pension earned as an
12active employee of the employer shall be suspended during that
13contractual service. A person receiving an annuity or
14retirement pension under this Code shall notify the pension
15fund or retirement system from which he or she is receiving an
16annuity or retirement pension, as well as his or her
17contractual employer, of his or her retirement status before
18accepting contractual employment. A person who fails to submit
19such notification shall be guilty of a Class A misdemeanor and
20required to pay a fine of $1,000. Upon termination of that
21contractual employment, the person's retirement annuity or
22retirement pension payments shall resume and, if appropriate,
23be recalculated under the applicable provisions of this Code.
24    (i) (Blank).
25    (i-5) It is the intent of this amendatory Act of the 103rd
26General Assembly to provide to the participants specified in

 

 

HB4065- 42 -LRB103 31966 RPS 60743 b

1subsections (g) and (g-5) who first became participants on or
2after January 1, 2011 the same level of benefits and
3eligibility criteria for benefits as those who first became
4participants before January 1, 2011. The changes made to this
5Article by this amendatory Act of the 103rd General Assembly
6that provide benefit increases for participants specified in
7subsections (g) and (g-5) apply without regard to whether the
8participant was in service on or after the effective date of
9this amendatory Act of the 103rd General Assembly,
10notwithstanding the provisions of Section 1-103.1. The benefit
11increases are intended to apply prospectively and do not
12entitle a participant to retroactive benefit payments or
13increases. The changes made to this Article by this amendatory
14Act of the 103rd General Assembly shall not cause or otherwise
15result in any retroactive adjustment of any employee
16contributions.
17    (j) In the case of a conflict between the provisions of
18this Section and any other provision of this Code, the
19provisions of this Section shall control.
20(Source: P.A. 101-610, eff. 1-1-20; 102-16, eff. 6-17-21;
21102-210, eff. 1-1-22; 102-263, eff. 8-6-21; 102-956, eff.
225-27-22.)
 
23    (40 ILCS 5/3-111)  (from Ch. 108 1/2, par. 3-111)
24    Sec. 3-111. Pension.
25    (a) A police officer age 50 or more with 20 or more years

 

 

HB4065- 43 -LRB103 31966 RPS 60743 b

1of creditable service, who is not a participant in the
2self-managed plan under Section 3-109.3 and who is no longer
3in service as a police officer, shall receive a pension of 1/2
4of the salary attached to the rank held by the officer on the
5police force for one year immediately prior to retirement or,
6beginning July 1, 1987 for persons terminating service on or
7after that date, the salary attached to the rank held on the
8last day of service or for one year prior to the last day,
9whichever is greater. The pension shall be increased by 2.5%
10of such salary for each additional year of service over 20
11years of service through 30 years of service, to a maximum of
1275% of such salary.
13    The changes made to this subsection (a) by this amendatory
14Act of the 91st General Assembly apply to all pensions that
15become payable under this subsection on or after January 1,
161999. All pensions payable under this subsection that began on
17or after January 1, 1999 and before the effective date of this
18amendatory Act shall be recalculated, and the amount of the
19increase accruing for that period shall be payable to the
20pensioner in a lump sum.
21    (a-5) No pension in effect on or granted after June 30,
221973 shall be less than $200 per month. Beginning July 1, 1987,
23the minimum retirement pension for a police officer having at
24least 20 years of creditable service shall be $400 per month,
25without regard to whether or not retirement occurred prior to
26that date. If the minimum pension established in Section

 

 

HB4065- 44 -LRB103 31966 RPS 60743 b

13-113.1 is greater than the minimum provided in this
2subsection, the Section 3-113.1 minimum controls.
3    (b) A police officer mandatorily retired from service due
4to age by operation of law, having at least 8 but less than 20
5years of creditable service, shall receive a pension equal to
62 1/2% of the salary attached to the rank he or she held on the
7police force for one year immediately prior to retirement or,
8beginning July 1, 1987 for persons terminating service on or
9after that date, the salary attached to the rank held on the
10last day of service or for one year prior to the last day,
11whichever is greater, for each year of creditable service.
12    A police officer who retires or is separated from service
13having at least 8 years but less than 20 years of creditable
14service, who is not mandatorily retired due to age by
15operation of law, and who does not apply for a refund of
16contributions at his or her last separation from police
17service, shall receive a pension upon attaining age 60 equal
18to 2.5% of the salary attached to the rank held by the police
19officer on the police force for one year immediately prior to
20retirement or, beginning July 1, 1987 for persons terminating
21service on or after that date, the salary attached to the rank
22held on the last day of service or for one year prior to the
23last day, whichever is greater, for each year of creditable
24service.
25    (c) A police officer no longer in service who has at least
26one but less than 8 years of creditable service in a police

 

 

HB4065- 45 -LRB103 31966 RPS 60743 b

1pension fund but meets the requirements of this subsection (c)
2shall be eligible to receive a pension from that fund equal to
32.5% of the salary attached to the rank held on the last day of
4service under that fund or for one year prior to that last day,
5whichever is greater, for each year of creditable service in
6that fund. The pension shall begin no earlier than upon
7attainment of age 60 (or upon mandatory retirement from the
8fund by operation of law due to age, if that occurs before age
960) and in no event before the effective date of this
10amendatory Act of 1997.
11    In order to be eligible for a pension under this
12subsection (c), the police officer must have at least 8 years
13of creditable service in a second police pension fund under
14this Article and be receiving a pension under subsection (a)
15or (b) of this Section from that second fund. The police
16officer need not be in service on or after the effective date
17of this amendatory Act of 1997.
18    (d) (Blank). Notwithstanding any other provision of this
19Article, the provisions of this subsection (d) apply to a
20person who is not a participant in the self-managed plan under
21Section 3-109.3 and who first becomes a police officer under
22this Article on or after January 1, 2011.
23    A police officer age 55 or more who has 10 or more years of
24service in that capacity shall be entitled at his option to
25receive a monthly pension for his service as a police officer
26computed by multiplying 2.5% for each year of such service by

 

 

HB4065- 46 -LRB103 31966 RPS 60743 b

1his or her final average salary.
2    The pension of a police officer who is retiring after
3attaining age 50 with 10 or more years of creditable service
4shall be reduced by one-half of 1% for each month that the
5police officer's age is under age 55.
6    The maximum pension under this subsection (d) shall be 75%
7of final average salary.
8    For the purposes of this subsection (d), "final average
9salary" means the greater of: (i) the average monthly salary
10obtained by dividing the total salary of the police officer
11during the 48 consecutive months of service within the last 60
12months of service in which the total salary was the highest by
13the number of months of service in that period; or (ii) the
14average monthly salary obtained by dividing the total salary
15of the police officer during the 96 consecutive months of
16service within the last 120 months of service in which the
17total salary was the highest by the number of months of service
18in that period.
19    Beginning on January 1, 2011, for all purposes under this
20Code (including without limitation the calculation of benefits
21and employee contributions), the annual salary based on the
22plan year of a member or participant to whom this Section
23applies shall not exceed $106,800; however, that amount shall
24annually thereafter be increased by the lesser of (i) 3% of
25that amount, including all previous adjustments, or (ii) the
26annual unadjusted percentage increase (but not less than zero)

 

 

HB4065- 47 -LRB103 31966 RPS 60743 b

1in the consumer price index-u for the 12 months ending with the
2September preceding each November 1, including all previous
3adjustments.
4    Nothing in this amendatory Act of the 101st General
5Assembly shall cause or otherwise result in any retroactive
6adjustment of any employee contributions.
7(Source: P.A. 101-610, eff. 1-1-20.)
 
8    (40 ILCS 5/3-111.1)  (from Ch. 108 1/2, par. 3-111.1)
9    Sec. 3-111.1. Increase in pension.
10    (a) Except as provided in subsection (e), the monthly
11pension of a police officer who retires after July 1, 1971, and
12prior to January 1, 1986, shall be increased, upon either the
13first of the month following the first anniversary of the date
14of retirement if the officer is 60 years of age or over at
15retirement date, or upon the first day of the month following
16attainment of age 60 if it occurs after the first anniversary
17of retirement, by 3% of the originally granted pension and by
18an additional 3% of the originally granted pension in January
19of each year thereafter.
20    (b) The monthly pension of a police officer who retired
21from service with 20 or more years of service, on or before
22July 1, 1971, shall be increased in January of the year
23following the year of attaining age 65 or in January of 1972,
24if then over age 65, by 3% of the originally granted pension
25for each year the police officer received pension payments. In

 

 

HB4065- 48 -LRB103 31966 RPS 60743 b

1each January thereafter, he or she shall receive an additional
2increase of 3% of the original pension.
3    (c) The monthly pension of a police officer who retires on
4disability or is retired for disability shall be increased in
5January of the year following the year of attaining age 60, by
63% of the original grant of pension for each year he or she
7received pension payments. In each January thereafter, the
8police officer shall receive an additional increase of 3% of
9the original pension.
10    (d) The monthly pension of a police officer who retires
11after January 1, 1986, shall be increased, upon either the
12first of the month following the first anniversary of the date
13of retirement if the officer is 55 years of age or over, or
14upon the first day of the month following attainment of age 55
15if it occurs after the first anniversary of retirement, by
161/12 of 3% of the originally granted pension for each full
17month that has elapsed since the pension began, and by an
18additional 3% of the originally granted pension in January of
19each year thereafter.
20    The changes made to this subsection (d) by this amendatory
21Act of the 91st General Assembly apply to all initial
22increases that become payable under this subsection on or
23after January 1, 1999. All initial increases that became
24payable under this subsection on or after January 1, 1999 and
25before the effective date of this amendatory Act shall be
26recalculated and the additional amount accruing for that

 

 

HB4065- 49 -LRB103 31966 RPS 60743 b

1period, if any, shall be payable to the pensioner in a lump
2sum.
3    (e) Notwithstanding the provisions of subsection (a), upon
4the first day of the month following (1) the first anniversary
5of the date of retirement, or (2) the attainment of age 55, or
6(3) July 1, 1987, whichever occurs latest, the monthly pension
7of a police officer who retired on or after January 1, 1977 and
8on or before January 1, 1986, and did not receive an increase
9under subsection (a) before July 1, 1987, shall be increased
10by 3% of the originally granted monthly pension for each full
11year that has elapsed since the pension began, and by an
12additional 3% of the originally granted pension in each
13January thereafter. The increases provided under this
14subsection are in lieu of the increases provided in subsection
15(a).
16    (f) Notwithstanding the other provisions of this Section,
17beginning with increases granted on or after July 1, 1993, the
18second and all subsequent automatic annual increases granted
19under subsection (a), (b), (d), or (e) of this Section shall be
20calculated as 3% of the amount of pension payable at the time
21of the increase, including any increases previously granted
22under this Section, rather than 3% of the originally granted
23pension amount. Section 1-103.1 does not apply to this
24subsection (f).
25    (g) Notwithstanding any other provision of this Article,
26the monthly pension of a person who first becomes a police

 

 

HB4065- 50 -LRB103 31966 RPS 60743 b

1officer under this Article on or after January 1, 2011 shall be
2increased on the January 1 occurring either on or after the
3attainment of age 60 or the first anniversary of the pension
4start date, whichever is later; except that, beginning on the
5effective date of this amendatory Act of the 103rd General
6Assembly, eligibility for and the amount of the automatic
7increase in the monthly pension of such a person shall be
8calculated as otherwise provided in this Section. Each annual
9increase shall be calculated at 3% or one-half the annual
10unadjusted percentage increase (but not less than zero) in the
11consumer price index-u for the 12 months ending with the
12September preceding each November 1, whichever is less, of the
13originally granted pension. If the annual unadjusted
14percentage change in the consumer price index-u for a 12-month
15period ending in September is zero or, when compared with the
16preceding period, decreases, then the pension shall not be
17increased.
18    For the purposes of this subsection (g), "consumer price
19index-u" means the index published by the Bureau of Labor
20Statistics of the United States Department of Labor that
21measures the average change in prices of goods and services
22purchased by all urban consumers, United States city average,
23all items, 1982-84 = 100. The new amount resulting from each
24annual adjustment shall be determined by the Public Pension
25Division of the Department of Insurance and made available to
26the boards of the pension funds.

 

 

HB4065- 51 -LRB103 31966 RPS 60743 b

1(Source: P.A. 96-1495, eff. 1-1-11.)
 
2    (40 ILCS 5/3-112)  (from Ch. 108 1/2, par. 3-112)
3    Sec. 3-112. Pension to survivors.
4    (a) Upon the death of a police officer entitled to a
5pension under Section 3-111, the surviving spouse shall be
6entitled to the pension to which the police officer was then
7entitled. Upon the death of the surviving spouse, or upon the
8remarriage of the surviving spouse if that remarriage
9terminates the surviving spouse's eligibility under Section
103-121, the police officer's unmarried children who are under
11age 18 or who are dependent because of physical or mental
12disability shall be entitled to equal shares of such pension.
13If there is no eligible surviving spouse and no eligible
14child, the dependent parent or parents of the officer shall be
15entitled to receive or share such pension until their death or
16marriage or remarriage after the death of the police officer.
17    Notwithstanding any other provision of this Article, for a
18person who first becomes a police officer under this Article
19on or after January 1, 2011, the pension to which the surviving
20spouse, children, or parents are entitled under this
21subsection (a) shall be in an amount equal to the greater of
22(i) 54% of the police officer's monthly salary at the date of
23death, or (ii) 66 2/3% of the police officer's earned pension
24at the date of death, and, if there is a surviving spouse, 12%
25of such monthly salary shall be granted to the guardian of any

 

 

HB4065- 52 -LRB103 31966 RPS 60743 b

1minor child or children, including a child who has been
2conceived but not yet born, for each such child until
3attainment of age 18. Upon the death of the surviving spouse
4leaving one or more minor children, or upon the death of a
5police officer leaving one or more minor children but no
6surviving spouse, a monthly pension of 20% of the monthly
7salary shall be granted to the duly appointed guardian of each
8such child for the support and maintenance of each such child
9until the child reaches age 18. The total pension provided
10under this paragraph shall not exceed 75% of the monthly
11salary of the deceased police officer (1) when paid to the
12survivor of a police officer who has attained 20 or more years
13of service credit and who receives or is eligible to receive a
14retirement pension under this Article, (2) when paid to the
15survivor of a police officer who dies as a result of illness or
16accident, (3) when paid to the survivor of a police officer who
17dies from any cause while in receipt of a disability pension
18under this Article, or (4) when paid to the survivor of a
19deferred pensioner. Nothing in this subsection (a) shall act
20to diminish the survivor's benefits described in subsection
21(e) of this Section.
22    Notwithstanding Section 1-103.1, the changes made to this
23subsection apply without regard to whether the deceased police
24officer was in service on or after the effective date of this
25amendatory Act of the 101st General Assembly.
26    Notwithstanding any other provision of this Article, the

 

 

HB4065- 53 -LRB103 31966 RPS 60743 b

1monthly pension of a survivor of a person who first becomes a
2police officer under this Article on or after January 1, 2011
3shall be increased on the January 1 after attainment of age 60
4by the recipient of the survivor's pension and each January 1
5thereafter by 3% or one-half the annual unadjusted percentage
6increase (but not less than zero) in the consumer price
7index-u for the 12 months ending with the September preceding
8each November 1, whichever is less, of the originally granted
9survivor's pension; except that, beginning on the effective
10date of this amendatory Act of the 103rd General Assembly,
11eligibility for and the amount of the automatic increase in
12the monthly pension of such a survivor shall be calculated as
13otherwise provided in this Section. If the annual unadjusted
14percentage change in the consumer price index-u for a 12-month
15period ending in September is zero or, when compared with the
16preceding period, decreases, then the survivor's pension shall
17not be increased.
18    For the purposes of this subsection (a), "consumer price
19index-u" means the index published by the Bureau of Labor
20Statistics of the United States Department of Labor that
21measures the average change in prices of goods and services
22purchased by all urban consumers, United States city average,
23all items, 1982-84 = 100. The new amount resulting from each
24annual adjustment shall be determined by the Public Pension
25Division of the Department of Insurance and made available to
26the boards of the pension funds.

 

 

HB4065- 54 -LRB103 31966 RPS 60743 b

1    (b) Upon the death of a police officer while in service,
2having at least 20 years of creditable service, or upon the
3death of a police officer who retired from service with at
4least 20 years of creditable service, whether death occurs
5before or after attainment of age 50, the pension earned by the
6police officer as of the date of death as provided in Section
73-111 shall be paid to the survivors in the sequence provided
8in subsection (a) of this Section.
9    (c) Upon the death of a police officer while in service,
10having at least 10 but less than 20 years of service, a pension
11of 1/2 of the salary attached to the rank or ranks held by the
12officer for one year immediately prior to death shall be
13payable to the survivors in the sequence provided in
14subsection (a) of this Section. If death occurs as a result of
15the performance of duty, the 10 year requirement shall not
16apply and the pension to survivors shall be payable after any
17period of service.
18    (d) Beginning July 1, 1987, a minimum pension of $400 per
19month shall be paid to all surviving spouses, without regard
20to the fact that the death of the police officer occurred prior
21to that date. If the minimum pension established in Section
223-113.1 is greater than the minimum provided in this
23subsection, the Section 3-113.1 minimum controls.
24    (e) The pension of the surviving spouse of a police
25officer who dies (i) on or after January 1, 2001, (ii) without
26having begun to receive either a retirement pension payable

 

 

HB4065- 55 -LRB103 31966 RPS 60743 b

1under Section 3-111 or a disability pension payable under
2Section 3-114.1, 3-114.2, 3-114.3, or 3-114.6, and (iii) as a
3result of sickness, accident, or injury incurred in or
4resulting from the performance of an act of duty shall not be
5less than 100% of the salary attached to the rank held by the
6deceased police officer on the last day of service,
7notwithstanding any provision in this Article to the contrary.
8(Source: P.A. 101-610, eff. 1-1-20.)
 
9    (40 ILCS 5/3-125)  (from Ch. 108 1/2, par. 3-125)
10    Sec. 3-125. Financing.
11    (a) The city council or the board of trustees of the
12municipality shall annually levy a tax upon all the taxable
13property of the municipality at the rate on the dollar which
14will produce an amount which, when added to the deductions
15from the salaries or wages of police officers, and revenues
16available from other sources, including State contributions,
17will equal a sum sufficient to meet the annual requirements of
18the police pension fund. The annual requirements to be
19provided by such tax levy are equal to (1) the normal cost of
20the pension fund for the year involved, plus (2) an amount
21sufficient to bring the total assets of the pension fund up to
2290% of the total actuarial liabilities of the pension fund by
23the end of municipal fiscal year 2040, as annually updated and
24determined by an enrolled actuary employed by the Illinois
25Department of Insurance or by an enrolled actuary retained by

 

 

HB4065- 56 -LRB103 31966 RPS 60743 b

1the pension fund or the municipality, minus (3) any
2anticipated State contributions from the Local Government
3Retirement Fund for the year involved. In making these
4determinations, the required minimum employer contribution
5shall be calculated each year as a level percentage of payroll
6over the years remaining up to and including fiscal year 2040
7and shall be determined under the projected unit credit
8actuarial cost method. The tax shall be levied and collected
9in the same manner as the general taxes of the municipality,
10and in addition to all other taxes now or hereafter authorized
11to be levied upon all property within the municipality, and
12shall be in addition to the amount authorized to be levied for
13general purposes as provided by Section 8-3-1 of the Illinois
14Municipal Code, approved May 29, 1961, as amended. The tax
15shall be forwarded directly to the treasurer of the board
16within 30 business days after receipt by the county.
17    (a-5) Beginning in State fiscal year 2024, the city
18council or the board of trustees of the municipality shall
19certify to the Governor the amount of (1) the normal cost of
20the pension fund for the year involved, plus (2) an amount
21sufficient to bring the total assets of the pension fund up to
2290% of the total actuarial liabilities of the pension fund by
23the end of municipal fiscal year 2040, as annually updated and
24determined by an enrolled actuary employed by the Department
25of Insurance or by an enrolled actuary retained by the pension
26fund or the municipality.

 

 

HB4065- 57 -LRB103 31966 RPS 60743 b

1    (b) For purposes of determining the required employer
2contribution to a pension fund, the value of the pension
3fund's assets shall be equal to the actuarial value of the
4pension fund's assets, which shall be calculated as follows:
5        (1) On March 30, 2011, the actuarial value of a
6    pension fund's assets shall be equal to the market value
7    of the assets as of that date.
8        (2) In determining the actuarial value of the System's
9    assets for fiscal years after March 30, 2011, any
10    actuarial gains or losses from investment return incurred
11    in a fiscal year shall be recognized in equal annual
12    amounts over the 5-year period following that fiscal year.
13    (c) If a participating municipality fails to transmit to
14the fund contributions required of it under this Article for
15more than 90 days after the payment of those contributions is
16due, the fund may, after giving notice to the municipality,
17certify to the State Comptroller the amounts of the delinquent
18payments in accordance with any applicable rules of the
19Comptroller, and the Comptroller must, beginning in fiscal
20year 2016, deduct and remit to the fund the certified amounts
21or a portion of those amounts from the following proportions
22of payments of State funds to the municipality:
23        (1) in fiscal year 2016, one-third of the total amount
24    of any payments of State funds to the municipality;
25        (2) in fiscal year 2017, two-thirds of the total
26    amount of any payments of State funds to the municipality;

 

 

HB4065- 58 -LRB103 31966 RPS 60743 b

1    and
2        (3) in fiscal year 2018 and each fiscal year
3    thereafter, the total amount of any payments of State
4    funds to the municipality.
5    The State Comptroller may not deduct from any payments of
6State funds to the municipality more than the amount of
7delinquent payments certified to the State Comptroller by the
8fund.
9    (d) The police pension fund shall consist of the following
10moneys which shall be set apart by the treasurer of the
11municipality:
12        (1) All moneys derived from the taxes levied
13    hereunder;
14        (2) Contributions by police officers under Section
15    3-125.1;
16        (2.5) All moneys received from the Police Officers'
17    Pension Investment Fund as provided in Article 22B of this
18    Code;
19        (3) All moneys accumulated by the municipality under
20    any previous legislation establishing a fund for the
21    benefit of disabled or retired police officers;
22        (4) Donations, gifts or other transfers authorized by
23    this Article.
24    (e) The Commission on Government Forecasting and
25Accountability shall conduct a study of all funds established
26under this Article and shall report its findings to the

 

 

HB4065- 59 -LRB103 31966 RPS 60743 b

1General Assembly on or before January 1, 2013. To the fullest
2extent possible, the study shall include, but not be limited
3to, the following:
4        (1) fund balances;
5        (2) historical employer contribution rates for each
6    fund;
7        (3) the actuarial formulas used as a basis for
8    employer contributions, including the actual assumed rate
9    of return for each year, for each fund;
10        (4) available contribution funding sources;
11        (5) the impact of any revenue limitations caused by
12    PTELL and employer home rule or non-home rule status; and
13        (6) existing statutory funding compliance procedures
14    and funding enforcement mechanisms for all municipal
15    pension funds.
16(Source: P.A. 101-610, eff. 1-1-20.)
 
17    (40 ILCS 5/3-148.5 new)
18    Sec. 3-148.5. Application of this amendatory Act of the
19103rd General Assembly. It is the intent of this amendatory
20Act of the 103rd General Assembly to provide to police
21officers who first became police officers on or after January
221, 2011 the same level of benefits and eligibility criteria
23for benefits as those who first became police officers before
24January 1, 2011. The changes made to this Article by this
25amendatory Act of the 103rd General Assembly that provide

 

 

HB4065- 60 -LRB103 31966 RPS 60743 b

1benefit increases for police officers apply without regard to
2whether the police officer was in service on or after the
3effective date of this amendatory Act of the 103rd General
4Assembly, notwithstanding the provisions of Section 1-103.1.
5The benefit increases are intended to apply prospectively and
6do not entitle a police officer to retroactive benefit
7payments or increases. The changes made to this Article by
8this amendatory Act of the 103rd General Assembly shall not
9cause or otherwise result in any retroactive adjustment of any
10employee contributions.
 
11    (40 ILCS 5/4-109)  (from Ch. 108 1/2, par. 4-109)
12    Sec. 4-109. Pension.
13    (a) A firefighter age 50 or more with 20 or more years of
14creditable service, who is no longer in service as a
15firefighter, shall receive a monthly pension of 1/2 the
16monthly salary attached to the rank held by him or her in the
17fire service at the date of retirement.
18    The monthly pension shall be increased by 1/12 of 2.5% of
19such monthly salary for each additional month over 20 years of
20service through 30 years of service, to a maximum of 75% of
21such monthly salary.
22    The changes made to this subsection (a) by this amendatory
23Act of the 91st General Assembly apply to all pensions that
24become payable under this subsection on or after January 1,
251999. All pensions payable under this subsection that began on

 

 

HB4065- 61 -LRB103 31966 RPS 60743 b

1or after January 1, 1999 and before the effective date of this
2amendatory Act shall be recalculated, and the amount of the
3increase accruing for that period shall be payable to the
4pensioner in a lump sum.
5    (b) A firefighter who retires or is separated from service
6having at least 10 but less than 20 years of creditable
7service, who is not entitled to receive a disability pension,
8and who did not apply for a refund of contributions at his or
9her last separation from service shall receive a monthly
10pension upon attainment of age 60 based on the monthly salary
11attached to his or her rank in the fire service on the date of
12retirement or separation from service according to the
13following schedule:
14    For 10 years of service, 15% of salary;
15    For 11 years of service, 17.6% of salary;
16    For 12 years of service, 20.4% of salary;
17    For 13 years of service, 23.4% of salary;
18    For 14 years of service, 26.6% of salary;
19    For 15 years of service, 30% of salary;
20    For 16 years of service, 33.6% of salary;
21    For 17 years of service, 37.4% of salary;
22    For 18 years of service, 41.4% of salary;
23    For 19 years of service, 45.6% of salary.
24    (c) (Blank). Notwithstanding any other provision of this
25Article, the provisions of this subsection (c) apply to a
26person who first becomes a firefighter under this Article on

 

 

HB4065- 62 -LRB103 31966 RPS 60743 b

1or after January 1, 2011.
2    A firefighter age 55 or more who has 10 or more years of
3service in that capacity shall be entitled at his option to
4receive a monthly pension for his service as a firefighter
5computed by multiplying 2.5% for each year of such service by
6his or her final average salary.
7    The pension of a firefighter who is retiring after
8attaining age 50 with 10 or more years of creditable service
9shall be reduced by one-half of 1% for each month that the
10firefighter's age is under age 55.
11    The maximum pension under this subsection (c) shall be 75%
12of final average salary.
13    For the purposes of this subsection (c), "final average
14salary" means the greater of: (i) the average monthly salary
15obtained by dividing the total salary of the firefighter
16during the 48 consecutive months of service within the last 60
17months of service in which the total salary was the highest by
18the number of months of service in that period; or (ii) the
19average monthly salary obtained by dividing the total salary
20of the firefighter during the 96 consecutive months of service
21within the last 120 months of service in which the total salary
22was the highest by the number of months of service in that
23period.
24    Beginning on January 1, 2011, for all purposes under this
25Code (including without limitation the calculation of benefits
26and employee contributions), the annual salary based on the

 

 

HB4065- 63 -LRB103 31966 RPS 60743 b

1plan year of a member or participant to whom this Section
2applies shall not exceed $106,800; however, that amount shall
3annually thereafter be increased by the lesser of (i) 3% of
4that amount, including all previous adjustments, or (ii) the
5annual unadjusted percentage increase (but not less than zero)
6in the consumer price index-u for the 12 months ending with the
7September preceding each November 1, including all previous
8adjustments.
9    Nothing in this amendatory Act of the 101st General
10Assembly shall cause or otherwise result in any retroactive
11adjustment of any employee contributions.
12(Source: P.A. 101-610, eff. 1-1-20.)
 
13    (40 ILCS 5/4-109.1)  (from Ch. 108 1/2, par. 4-109.1)
14    Sec. 4-109.1. Increase in pension.
15    (a) Except as provided in subsection (e), the monthly
16pension of a firefighter who retires after July 1, 1971 and
17prior to January 1, 1986, shall, upon either the first of the
18month following the first anniversary of the date of
19retirement if 60 years of age or over at retirement date, or
20upon the first day of the month following attainment of age 60
21if it occurs after the first anniversary of retirement, be
22increased by 2% of the originally granted monthly pension and
23by an additional 2% in each January thereafter. Effective
24January 1976, the rate of the annual increase shall be 3% of
25the originally granted monthly pension.

 

 

HB4065- 64 -LRB103 31966 RPS 60743 b

1    (b) The monthly pension of a firefighter who retired from
2service with 20 or more years of service, on or before July 1,
31971, shall be increased, in January of the year following the
4year of attaining age 65 or in January 1972, if then over age
565, by 2% of the originally granted monthly pension, for each
6year the firefighter received pension payments. In each
7January thereafter, he or she shall receive an additional
8increase of 2% of the original monthly pension. Effective
9January 1976, the rate of the annual increase shall be 3%.
10    (c) The monthly pension of a firefighter who is receiving
11a disability pension under this Article shall be increased, in
12January of the year following the year the firefighter attains
13age 60, or in January 1974, if then over age 60, by 2% of the
14originally granted monthly pension for each year he or she
15received pension payments. In each January thereafter, the
16firefighter shall receive an additional increase of 2% of the
17original monthly pension. Effective January 1976, the rate of
18the annual increase shall be 3%.
19    (c-1) On January 1, 1998, every child's disability benefit
20payable on that date under Section 4-110 or 4-110.1 shall be
21increased by an amount equal to 1/12 of 3% of the amount of the
22benefit, multiplied by the number of months for which the
23benefit has been payable. On each January 1 thereafter, every
24child's disability benefit payable under Section 4-110 or
254-110.1 shall be increased by 3% of the amount of the benefit
26then being paid, including any previous increases received

 

 

HB4065- 65 -LRB103 31966 RPS 60743 b

1under this Article. These increases are not subject to any
2limitation on the maximum benefit amount included in Section
34-110 or 4-110.1.
4    (c-2) On July 1, 2004, every pension payable to or on
5behalf of a minor or disabled surviving child that is payable
6on that date under Section 4-114 shall be increased by an
7amount equal to 1/12 of 3% of the amount of the pension,
8multiplied by the number of months for which the benefit has
9been payable. On July 1, 2005, July 1, 2006, July 1, 2007, and
10July 1, 2008, every pension payable to or on behalf of a minor
11or disabled surviving child that is payable under Section
124-114 shall be increased by 3% of the amount of the pension
13then being paid, including any previous increases received
14under this Article. These increases are not subject to any
15limitation on the maximum benefit amount included in Section
164-114.
17    (d) The monthly pension of a firefighter who retires after
18January 1, 1986, shall, upon either the first of the month
19following the first anniversary of the date of retirement if
2055 years of age or over, or upon the first day of the month
21following attainment of age 55 if it occurs after the first
22anniversary of retirement, be increased by 1/12 of 3% of the
23originally granted monthly pension for each full month that
24has elapsed since the pension began, and by an additional 3% in
25each January thereafter.
26    The changes made to this subsection (d) by this amendatory

 

 

HB4065- 66 -LRB103 31966 RPS 60743 b

1Act of the 91st General Assembly apply to all initial
2increases that become payable under this subsection on or
3after January 1, 1999. All initial increases that became
4payable under this subsection on or after January 1, 1999 and
5before the effective date of this amendatory Act shall be
6recalculated and the additional amount accruing for that
7period, if any, shall be payable to the pensioner in a lump
8sum.
9    (e) Notwithstanding the provisions of subsection (a), upon
10the first day of the month following (1) the first anniversary
11of the date of retirement, or (2) the attainment of age 55, or
12(3) July 1, 1987, whichever occurs latest, the monthly pension
13of a firefighter who retired on or after January 1, 1977 and on
14or before January 1, 1986 and did not receive an increase under
15subsection (a) before July 1, 1987, shall be increased by 3% of
16the originally granted monthly pension for each full year that
17has elapsed since the pension began, and by an additional 3% in
18each January thereafter. The increases provided under this
19subsection are in lieu of the increases provided in subsection
20(a).
21    (f) In July 2009, the monthly pension of a firefighter who
22retired before July 1, 1977 shall be recalculated and
23increased to reflect the amount that the firefighter would
24have received in July 2009 had the firefighter been receiving
25a 3% compounded increase for each year he or she received
26pension payments after January 1, 1986, plus any increases in

 

 

HB4065- 67 -LRB103 31966 RPS 60743 b

1pension received for each year prior to January 1, 1986. In
2each January thereafter, he or she shall receive an additional
3increase of 3% of the amount of the pension then being paid.
4The changes made to this Section by this amendatory Act of the
596th General Assembly apply without regard to whether the
6firefighter was in service on or after its effective date.
7    (g) Notwithstanding any other provision of this Article,
8the monthly pension of a person who first becomes a
9firefighter under this Article on or after January 1, 2011
10shall be increased on the January 1 occurring either on or
11after the attainment of age 60 or the first anniversary of the
12pension start date, whichever is later; except that, beginning
13on the effective date of this amendatory Act of the 103rd
14General Assembly, eligibility for and the amount of the
15automatic increase in the monthly pension of such a person
16shall be calculated as otherwise provided in this Section.
17Each annual increase shall be calculated at 3% or one-half the
18annual unadjusted percentage increase (but not less than zero)
19in the consumer price index-u for the 12 months ending with the
20September preceding each November 1, whichever is less, of the
21originally granted pension. If the annual unadjusted
22percentage change in the consumer price index-u for a 12-month
23period ending in September is zero or, when compared with the
24preceding period, decreases, then the pension shall not be
25increased.
26    For the purposes of this subsection (g), "consumer price

 

 

HB4065- 68 -LRB103 31966 RPS 60743 b

1index-u" means the index published by the Bureau of Labor
2Statistics of the United States Department of Labor that
3measures the average change in prices of goods and services
4purchased by all urban consumers, United States city average,
5all items, 1982-84 = 100. The new amount resulting from each
6annual adjustment shall be determined by the Public Pension
7Division of the Department of Insurance and made available to
8the boards of the pension funds.
9(Source: P.A. 96-775, eff. 8-28-09; 96-1495, eff. 1-1-11.)
 
10    (40 ILCS 5/4-114)  (from Ch. 108 1/2, par. 4-114)
11    Sec. 4-114. Pension to survivors. If a firefighter who is
12not receiving a disability pension under Section 4-110 or
134-110.1 dies (1) as a result of any illness or accident, or (2)
14from any cause while in receipt of a disability pension under
15this Article, or (3) during retirement after 20 years service,
16or (4) while vested for or in receipt of a pension payable
17under subsection (b) of Section 4-109, or (5) while a deferred
18pensioner, having made all required contributions, a pension
19shall be paid to his or her survivors, based on the monthly
20salary attached to the firefighter's rank on the last day of
21service in the fire department, as follows:
22        (a)(1) To the surviving spouse, a monthly pension of
23    40% of the monthly salary, and if there is a surviving
24    spouse, to the guardian of any minor child or children
25    including a child which has been conceived but not yet

 

 

HB4065- 69 -LRB103 31966 RPS 60743 b

1    born, 12% of such monthly salary for each such child until
2    attainment of age 18 or until the child's marriage,
3    whichever occurs first. Beginning July 1, 1993, the
4    monthly pension to the surviving spouse shall be 54% of
5    the monthly salary for all persons receiving a surviving
6    spouse pension under this Article, regardless of whether
7    the deceased firefighter was in service on or after the
8    effective date of this amendatory Act of 1993.
9        (2) Beginning July 1, 2004, unless the amount provided
10    under paragraph (1) of this subsection (a) is greater, the
11    total monthly pension payable under this paragraph (a),
12    including any amount payable on account of children, to
13    the surviving spouse of a firefighter who died (i) while
14    receiving a retirement pension, (ii) while he or she was a
15    deferred pensioner with at least 20 years of creditable
16    service, or (iii) while he or she was in active service
17    having at least 20 years of creditable service, regardless
18    of age, shall be no less than 100% of the monthly
19    retirement pension earned by the deceased firefighter at
20    the time of death, regardless of whether death occurs
21    before or after attainment of age 50, including any
22    increases under Section 4-109.1. This minimum applies to
23    all such surviving spouses who are eligible to receive a
24    surviving spouse pension, regardless of whether the
25    deceased firefighter was in service on or after the
26    effective date of this amendatory Act of the 93rd General

 

 

HB4065- 70 -LRB103 31966 RPS 60743 b

1    Assembly, and notwithstanding any limitation on maximum
2    pension under paragraph (d) or any other provision of this
3    Article.
4        (3) If the pension paid on and after July 1, 2004 to
5    the surviving spouse of a firefighter who died on or after
6    July 1, 2004 and before the effective date of this
7    amendatory Act of the 93rd General Assembly was less than
8    the minimum pension payable under paragraph (1) or (2) of
9    this subsection (a), the fund shall pay a lump sum equal to
10    the difference within 90 days after the effective date of
11    this amendatory Act of the 93rd General Assembly.
12        The pension to the surviving spouse shall terminate in
13    the event of the surviving spouse's remarriage prior to
14    July 1, 1993; remarriage on or after that date does not
15    affect the surviving spouse's pension, regardless of
16    whether the deceased firefighter was in service on or
17    after the effective date of this amendatory Act of 1993.
18        The surviving spouse's pension shall be subject to the
19    minimum established in Section 4-109.2.
20        (b) Upon the death of the surviving spouse leaving one
21    or more minor children, or upon the death of a firefighter
22    leaving one or more minor children but no surviving
23    spouse, to the duly appointed guardian of each such child,
24    for support and maintenance of each such child until the
25    child reaches age 18 or marries, whichever occurs first, a
26    monthly pension of 20% of the monthly salary.

 

 

HB4065- 71 -LRB103 31966 RPS 60743 b

1        In a case where the deceased firefighter left one or
2    more minor children but no surviving spouse and the
3    guardian of a child is receiving a pension of 12% of the
4    monthly salary on August 16, 2013 (the effective date of
5    Public Act 98-391), the pension is increased by Public Act
6    98-391 to 20% of the monthly salary for each such child,
7    beginning on the pension payment date occurring on or next
8    following August 16, 2013. The changes to this Section
9    made by Public Act 98-391 apply without regard to whether
10    the deceased firefighter was in service on or after August
11    16, 2013.
12        (c) If a deceased firefighter leaves no surviving
13    spouse or unmarried minor children under age 18, but
14    leaves a dependent father or mother, to each dependent
15    parent a monthly pension of 18% of the monthly salary. To
16    qualify for the pension, a dependent parent must furnish
17    satisfactory proof that the deceased firefighter was at
18    the time of his or her death the sole supporter of the
19    parent or that the parent was the deceased's dependent for
20    federal income tax purposes.
21        (d) The total pension provided under paragraphs (a),
22    (b) and (c) of this Section shall not exceed 75% of the
23    monthly salary of the deceased firefighter (1) when paid
24    to the survivor of a firefighter who has attained 20 or
25    more years of service credit and who receives or is
26    eligible to receive a retirement pension under this

 

 

HB4065- 72 -LRB103 31966 RPS 60743 b

1    Article, or (2) when paid to the survivor of a firefighter
2    who dies as a result of illness or accident, or (3) when
3    paid to the survivor of a firefighter who dies from any
4    cause while in receipt of a disability pension under this
5    Article, or (4) when paid to the survivor of a deferred
6    pensioner. For all other survivors of deceased
7    firefighters, the total pension provided under paragraphs
8    (a), (b) and (c) of this Section shall not exceed 50% of
9    the retirement annuity the firefighter would have received
10    on the date of death.
11        The maximum pension limitations in this paragraph (d)
12    do not control over any contrary provision of this Article
13    explicitly establishing a minimum amount of pension or
14    granting a one-time or annual increase in pension.
15        (e) If a firefighter leaves no eligible survivors
16    under paragraphs (a), (b) and (c), the board shall refund
17    to the firefighter's estate the amount of his or her
18    accumulated contributions, less the amount of pension
19    payments, if any, made to the firefighter while living.
20        (f) (Blank).
21        (g) If a judgment of dissolution of marriage between a
22    firefighter and spouse is judicially set aside subsequent
23    to the firefighter's death, the surviving spouse is
24    eligible for the pension provided in paragraph (a) only if
25    the judicial proceedings are filed within 2 years after
26    the date of the dissolution of marriage and within one

 

 

HB4065- 73 -LRB103 31966 RPS 60743 b

1    year after the firefighter's death and the board is made a
2    party to the proceedings. In such case the pension shall
3    be payable only from the date of the court's order setting
4    aside the judgment of dissolution of marriage.
5        (h) Benefits payable on account of a child under this
6    Section shall not be reduced or terminated by reason of
7    the child's attainment of age 18 if he or she is then
8    dependent by reason of a physical or mental disability but
9    shall continue to be paid as long as such dependency
10    continues. Individuals over the age of 18 and adjudged as
11    a disabled person pursuant to Article XIa of the Probate
12    Act of 1975, except for persons receiving benefits under
13    Article III of the Illinois Public Aid Code, shall be
14    eligible to receive benefits under this Act.
15        (i) Beginning January 1, 2000, the pension of the
16    surviving spouse of a firefighter who dies on or after
17    January 1, 1994 as a result of sickness, accident, or
18    injury incurred in or resulting from the performance of an
19    act of duty or from the cumulative effects of acts of duty
20    shall not be less than 100% of the salary attached to the
21    rank held by the deceased firefighter on the last day of
22    service, notwithstanding subsection (d) or any other
23    provision of this Article.
24        (j) Beginning July 1, 2004, the pension of the
25    surviving spouse of a firefighter who dies on or after
26    January 1, 1988 as a result of sickness, accident, or

 

 

HB4065- 74 -LRB103 31966 RPS 60743 b

1    injury incurred in or resulting from the performance of an
2    act of duty or from the cumulative effects of acts of duty
3    shall not be less than 100% of the salary attached to the
4    rank held by the deceased firefighter on the last day of
5    service, notwithstanding subsection (d) or any other
6    provision of this Article.
7    Notwithstanding any other provision of this Article, if a
8person who first becomes a firefighter under this Article on
9or after January 1, 2011 and who is not receiving a disability
10pension under Section 4-110 or 4-110.1 dies (1) as a result of
11any illness or accident, (2) from any cause while in receipt of
12a disability pension under this Article, (3) during retirement
13after 20 years service, (4) while vested for or in receipt of a
14pension payable under subsection (b) of Section 4-109, or (5)
15while a deferred pensioner, having made all required
16contributions, then a pension shall be paid to his or her
17survivors in an amount equal to the greater of (i) 54% of the
18firefighter's monthly salary at the date of death, or (ii) 66
192/3% of the firefighter's earned pension at the date of death,
20and, if there is a surviving spouse, 12% of such monthly salary
21shall be granted to the guardian of any minor child or
22children, including a child who has been conceived but not yet
23born, for each such child until attainment of age 18. Upon the
24death of the surviving spouse leaving one or more minor
25children, or upon the death of a firefighter leaving one or
26more minor children but no surviving spouse, a monthly pension

 

 

HB4065- 75 -LRB103 31966 RPS 60743 b

1of 20% of the monthly salary shall be granted to the duly
2appointed guardian of each such child for the support and
3maintenance of each such child until the child reaches age 18.
4The total pension provided under this paragraph shall not
5exceed 75% of the monthly salary of the deceased firefighter
6(1) when paid to the survivor of a firefighter who has attained
720 or more years of service credit and who receives or is
8eligible to receive a retirement pension under this Article,
9(2) when paid to the survivor of a firefighter who dies as a
10result of illness or accident, (3) when paid to the survivor of
11a firefighter who dies from any cause while in receipt of a
12disability pension under this Article, or (4) when paid to the
13survivor of a deferred pensioner. Nothing in this Section
14shall act to diminish the survivor's benefits described in
15subsection (j) of this Section.
16    Notwithstanding Section 1-103.1, the changes made to this
17subsection apply without regard to whether the deceased
18firefighter was in service on or after the effective date of
19this amendatory Act of the 101st General Assembly.
20    Notwithstanding any other provision of this Article, the
21monthly pension of a survivor of a person who first becomes a
22firefighter under this Article on or after January 1, 2011
23shall be increased on the January 1 after attainment of age 60
24by the recipient of the survivor's pension and each January 1
25thereafter by 3% or one-half the annual unadjusted percentage
26increase in the consumer price index-u for the 12 months

 

 

HB4065- 76 -LRB103 31966 RPS 60743 b

1ending with the September preceding each November 1, whichever
2is less, of the originally granted survivor's pension; except
3that, beginning on the effective date of this amendatory Act
4of the 103rd General Assembly, eligibility for and the amount
5of the automatic increase in the monthly pension of such a
6survivor shall be calculated as otherwise provided in this
7Section. If the annual unadjusted percentage change in the
8consumer price index-u for a 12-month period ending in
9September is zero or, when compared with the preceding period,
10decreases, then the survivor's pension shall not be increased.
11    For the purposes of this Section, "consumer price index-u"
12means the index published by the Bureau of Labor Statistics of
13the United States Department of Labor that measures the
14average change in prices of goods and services purchased by
15all urban consumers, United States city average, all items,
161982-84 = 100. The new amount resulting from each annual
17adjustment shall be determined by the Public Pension Division
18of the Department of Insurance and made available to the
19boards of the pension funds.
20(Source: P.A. 101-610, eff. 1-1-20.)
 
21    (40 ILCS 5/4-118)  (from Ch. 108 1/2, par. 4-118)
22    Sec. 4-118. Financing.
23    (a) The city council or the board of trustees of the
24municipality shall annually levy a tax upon all the taxable
25property of the municipality at the rate on the dollar which

 

 

HB4065- 77 -LRB103 31966 RPS 60743 b

1will produce an amount which, when added to the deductions
2from the salaries or wages of firefighters and revenues
3available from other sources, will equal a sum sufficient to
4meet the annual actuarial requirements of the pension fund, as
5determined by an enrolled actuary employed by the Illinois
6Department of Insurance or by an enrolled actuary retained by
7the pension fund or municipality. For the purposes of this
8Section, the annual actuarial requirements of the pension fund
9are equal to (1) the normal cost of the pension fund, or 17.5%
10of the salaries and wages to be paid to firefighters for the
11year involved, whichever is greater, plus (2) an annual amount
12sufficient to bring the total assets of the pension fund up to
1390% of the total actuarial liabilities of the pension fund by
14the end of municipal fiscal year 2040, as annually updated and
15determined by an enrolled actuary employed by the Illinois
16Department of Insurance or by an enrolled actuary retained by
17the pension fund or the municipality, minus (3) any
18anticipated State contributions from the Local Government
19Retirement Fund for the year involved. In making these
20determinations, the required minimum employer contribution
21shall be calculated each year as a level percentage of payroll
22over the years remaining up to and including fiscal year 2040
23and shall be determined under the projected unit credit
24actuarial cost method. The amount to be applied towards the
25amortization of the unfunded accrued liability in any year
26shall not be less than the annual amount required to amortize

 

 

HB4065- 78 -LRB103 31966 RPS 60743 b

1the unfunded accrued liability, including interest, as a level
2percentage of payroll over the number of years remaining in
3the 40-year amortization period.
4    (a-1) Beginning in State fiscal year 2024, the city
5council or the board of trustees of the municipality shall
6certify to the Governor the amount of (1) the normal cost of
7the pension fund, or 17.5% of the salaries and wages to be paid
8to firefighters for the year involved, whichever is greater,
9plus (2) an annual amount sufficient to bring the total assets
10of the pension fund up to 90% of the total actuarial
11liabilities of the pension fund by the end of municipal fiscal
12year 2040, as annually updated and determined by an enrolled
13actuary employed by the Department of Insurance or by an
14enrolled actuary retained by the pension fund or the
15municipality.
16    (a-2) A municipality that has established a pension fund
17under this Article and that employs a full-time firefighter,
18as defined in Section 4-106, shall be deemed a primary
19employer with respect to that full-time firefighter. Any
20municipality of 5,000 or more inhabitants that employs or
21enrolls a firefighter while that firefighter continues to earn
22service credit as a participant in a primary employer's
23pension fund under this Article shall be deemed a secondary
24employer and such employees shall be deemed to be secondary
25employee firefighters. To ensure that the primary employer's
26pension fund under this Article is aware of additional

 

 

HB4065- 79 -LRB103 31966 RPS 60743 b

1liabilities and risks to which firefighters are exposed when
2performing work as firefighters for secondary employers, a
3secondary employer shall annually prepare a report accounting
4for all hours worked by and wages and salaries paid to the
5secondary employee firefighters it receives services from or
6employs for each fiscal year in which such firefighters are
7employed and transmit a certified copy of that report to the
8primary employer's pension fund, the Department of Insurance,
9and the secondary employee firefighter no later than 30 days
10after the end of any fiscal year in which wages were paid to
11the secondary employee firefighters.
12    Nothing in this Section shall be construed to allow a
13secondary employee to qualify for benefits or creditable
14service for employment as a firefighter for a secondary
15employer.
16    (a-5) For purposes of determining the required employer
17contribution to a pension fund, the value of the pension
18fund's assets shall be equal to the actuarial value of the
19pension fund's assets, which shall be calculated as follows:
20        (1) On March 30, 2011, the actuarial value of a
21    pension fund's assets shall be equal to the market value
22    of the assets as of that date.
23        (2) In determining the actuarial value of the pension
24    fund's assets for fiscal years after March 30, 2011, any
25    actuarial gains or losses from investment return incurred
26    in a fiscal year shall be recognized in equal annual

 

 

HB4065- 80 -LRB103 31966 RPS 60743 b

1    amounts over the 5-year period following that fiscal year.
2    (b) The tax shall be levied and collected in the same
3manner as the general taxes of the municipality, and shall be
4in addition to all other taxes now or hereafter authorized to
5be levied upon all property within the municipality, and in
6addition to the amount authorized to be levied for general
7purposes, under Section 8-3-1 of the Illinois Municipal Code
8or under Section 14 of the Fire Protection District Act. The
9tax shall be forwarded directly to the treasurer of the board
10within 30 business days of receipt by the county (or, in the
11case of amounts added to the tax levy under subsection (f),
12used by the municipality to pay the employer contributions
13required under subsection (b-1) of Section 15-155 of this
14Code).
15    (b-5) If a participating municipality fails to transmit to
16the fund contributions required of it under this Article for
17more than 90 days after the payment of those contributions is
18due, the fund may, after giving notice to the municipality,
19certify to the State Comptroller the amounts of the delinquent
20payments in accordance with any applicable rules of the
21Comptroller, and the Comptroller must, beginning in fiscal
22year 2016, deduct and remit to the fund the certified amounts
23or a portion of those amounts from the following proportions
24of payments of State funds to the municipality:
25        (1) in fiscal year 2016, one-third of the total amount
26    of any payments of State funds to the municipality;

 

 

HB4065- 81 -LRB103 31966 RPS 60743 b

1        (2) in fiscal year 2017, two-thirds of the total
2    amount of any payments of State funds to the municipality;
3    and
4        (3) in fiscal year 2018 and each fiscal year
5    thereafter, the total amount of any payments of State
6    funds to the municipality.
7    The State Comptroller may not deduct from any payments of
8State funds to the municipality more than the amount of
9delinquent payments certified to the State Comptroller by the
10fund.
11    (c) The board shall make available to the membership and
12the general public for inspection and copying at reasonable
13times the most recent Actuarial Valuation Balance Sheet and
14Tax Levy Requirement issued to the fund by the Department of
15Insurance.
16    (d) The firefighters' pension fund shall consist of the
17following moneys which shall be set apart by the treasurer of
18the municipality: (1) all moneys derived from the taxes levied
19hereunder; (2) contributions by firefighters as provided under
20Section 4-118.1; (2.5) all moneys received from the
21Firefighters' Pension Investment Fund as provided in Article
2222C of this Code; (3) all rewards in money, fees, gifts, and
23emoluments that may be paid or given for or on account of
24extraordinary service by the fire department or any member
25thereof, except when allowed to be retained by competitive
26awards; and (4) any money, real estate or personal property

 

 

HB4065- 82 -LRB103 31966 RPS 60743 b

1received by the board.
2    (e) For the purposes of this Section, "enrolled actuary"
3means an actuary: (1) who is a member of the Society of
4Actuaries or the American Academy of Actuaries; and (2) who is
5enrolled under Subtitle C of Title III of the Employee
6Retirement Income Security Act of 1974, or who has been
7engaged in providing actuarial services to one or more public
8retirement systems for a period of at least 3 years as of July
91, 1983.
10    (f) The corporate authorities of a municipality that
11employs a person who is described in subdivision (d) of
12Section 4-106 may add to the tax levy otherwise provided for in
13this Section an amount equal to the projected cost of the
14employer contributions required to be paid by the municipality
15to the State Universities Retirement System under subsection
16(b-1) of Section 15-155 of this Code.
17    (g) The Commission on Government Forecasting and
18Accountability shall conduct a study of all funds established
19under this Article and shall report its findings to the
20General Assembly on or before January 1, 2013. To the fullest
21extent possible, the study shall include, but not be limited
22to, the following:
23        (1) fund balances;
24        (2) historical employer contribution rates for each
25    fund;
26        (3) the actuarial formulas used as a basis for

 

 

HB4065- 83 -LRB103 31966 RPS 60743 b

1    employer contributions, including the actual assumed rate
2    of return for each year, for each fund;
3        (4) available contribution funding sources;
4        (5) the impact of any revenue limitations caused by
5    PTELL and employer home rule or non-home rule status; and
6        (6) existing statutory funding compliance procedures
7    and funding enforcement mechanisms for all municipal
8    pension funds.
9(Source: P.A. 101-522, eff. 8-23-19; 101-610, eff. 1-1-20;
10102-59, eff. 7-9-21; 102-558, eff. 8-20-21.)
 
11    (40 ILCS 5/4-138.15 new)
12    Sec. 4-138.15. Application of this amendatory Act of the
13103rd General Assembly. It is the intent of this amendatory
14Act of the 103rd General Assembly to provide to firefighters
15who first became firefighters on or after January 1, 2011 the
16same level of benefits and eligibility criteria for benefits
17as those who first became firefighters before January 1, 2011.
18The changes made to this Article by this amendatory Act of the
19103rd General Assembly that provide benefit increases for
20firefighters apply without regard to whether the firefighter
21was in service on or after the effective date of this
22amendatory Act of the 103rd General Assembly, notwithstanding
23the provisions of Section 1-103.1. The benefit increases are
24intended to apply prospectively and do not entitle a
25firefighter to retroactive benefit payments or increases. The

 

 

HB4065- 84 -LRB103 31966 RPS 60743 b

1changes made to this Article by this amendatory Act of the
2103rd General Assembly shall not cause or otherwise result in
3any retroactive adjustment of any employee contributions.
 
4    (40 ILCS 5/5-155)  (from Ch. 108 1/2, par. 5-155)
5    Sec. 5-155. Ordinary disability benefit. A policeman less
6than age 63 who becomes disabled after the effective date as
7the result of any cause other than injury incurred in the
8performance of an act of duty, shall receive ordinary
9disability benefit during any period or periods of disability
10exceeding 30 days, for which he does not have a right to
11receive any part of his salary. Payment of such benefit shall
12not exceed, in the aggregate, throughout the total service of
13the policeman, a period equal to one-fourth of the service
14rendered to the city prior to the time he became disabled, nor
15more than 5 years. In computing such period of service, the
16time that the policeman received ordinary disability benefit
17shall not be included.
18    When a disabled policeman becomes age 63 or would have
19been retired by operation of law, whichever is later, the
20disability benefit shall cease. The policeman, if still
21disabled, shall thereafter receive such annuity as is provided
22in accordance with other provisions of this Article.
23    Ordinary disability benefit shall be 50% of the
24policeman's salary, as salary is defined in this Article
25(including the limitation in Section 5-238 if applicable), at

 

 

HB4065- 85 -LRB103 31966 RPS 60743 b

1the time disability occurs. Until September 1, 1969, before
2any payment, an amount equal to the sum ordinarily deducted
3from the policeman's salary for all annuity purposes for the
4period for which payment of ordinary disability benefit is
5made shall be deducted from such payment and credited as a
6deduction from salary for such period. Beginning September 1,
71969, the city shall also contribute all amounts ordinarily
8contributed by it for annuity purposes for the policeman as if
9he were in active discharge of his duties. Such sums so
10credited shall be regarded, for annuity and refund purposes,
11as sums contributed by the policeman.
12(Source: P.A. 99-905, eff. 11-29-16.)
 
13    (40 ILCS 5/5-167.1)  (from Ch. 108 1/2, par. 5-167.1)
14    Sec. 5-167.1. Automatic increase in annuity; retirement
15from service after September 1, 1967.
16    (a) A policeman who retires from service after September
171, 1967 with at least 20 years of service credit shall, upon
18either the first of the month following the first anniversary
19of his date of retirement if he is age 60 (age 55 if born
20before January 1, 1966) or over on that anniversary date, or
21upon the first of the month following his attainment of age 60
22(age 55 if born before January 1, 1966) if it occurs after the
23first anniversary of his retirement date, have his then fixed
24and payable monthly annuity increased by 1 1/2% and such first
25fixed annuity as granted at retirement increased by an

 

 

HB4065- 86 -LRB103 31966 RPS 60743 b

1additional 1 1/2% in January of each year thereafter up to a
2maximum increase of 30%. Beginning January 1, 1983 for
3policemen born before January 1, 1930, and beginning January
41, 1988 for policemen born on or after January 1, 1930 but
5before January 1, 1940, and beginning January 1, 1996 for
6policemen born on or after January 1, 1940 but before January
71, 1945, and beginning January 1, 2000 for policemen born on or
8after January 1, 1945 but before January 1, 1950, and
9beginning January 1, 2005 for policemen born on or after
10January 1, 1950 but before January 1, 1955, and beginning
11January 1, 2017 for policemen born on or after January 1, 1955
12but before January 1, 1966, such increases shall be 3% and such
13policemen shall not be subject to the 30% maximum increase.
14    Any policeman born before January 1, 1945 who qualifies
15for a minimum annuity and retires after September 1, 1967 but
16has not received the initial increase under this subsection
17before January 1, 1996 is entitled to receive the initial
18increase under this subsection on (1) January 1, 1996, (2) the
19first anniversary of the date of retirement, or (3) attainment
20of age 55, whichever occurs last. The changes to this Section
21made by Public Act 89-12 apply beginning January 1, 1996 and
22without regard to whether the policeman or annuitant
23terminated service before the effective date of that Act.
24    Any policeman born before January 1, 1950 who qualifies
25for a minimum annuity and retires after September 1, 1967 but
26has not received the initial increase under this subsection

 

 

HB4065- 87 -LRB103 31966 RPS 60743 b

1before January 1, 2000 is entitled to receive the initial
2increase under this subsection on (1) January 1, 2000, (2) the
3first anniversary of the date of retirement, or (3) attainment
4of age 55, whichever occurs last. The changes to this Section
5made by this amendatory Act of the 92nd General Assembly apply
6without regard to whether the policeman or annuitant
7terminated service before the effective date of this
8amendatory Act.
9    Any policeman born before January 1, 1955 who qualifies
10for a minimum annuity and retires after September 1, 1967 but
11has not received the initial increase under this subsection
12before January 1, 2005 is entitled to receive the initial
13increase under this subsection on (1) January 1, 2005, (2) the
14first anniversary of the date of retirement, or (3) attainment
15of age 55, whichever occurs last. The changes to this Section
16made by this amendatory Act of the 94th General Assembly apply
17without regard to whether the policeman or annuitant
18terminated service before the effective date of this
19amendatory Act.
20    Any policeman born before January 1, 1966 who qualifies
21for a minimum annuity and retires after September 1, 1967 but
22has not received the initial increase under this subsection
23before January 1, 2017 is entitled to receive an initial
24increase under this subsection on (1) January 1, 2017, (2) the
25first anniversary of the date of retirement, or (3) attainment
26of age 55, whichever occurs last, in an amount equal to 3% for

 

 

HB4065- 88 -LRB103 31966 RPS 60743 b

1each complete year following the date of retirement or
2attainment of age 55, whichever occurs later. The changes to
3this subsection made by this amendatory Act of the 99th
4General Assembly apply without regard to whether the policeman
5or annuitant terminated service before the effective date of
6this amendatory Act.
7    (b) Subsection (a) of this Section is not applicable to an
8employee receiving a term annuity.
9    (c) To help defray the cost of such increases in annuity,
10there shall be deducted, beginning September 1, 1967, from
11each payment of salary to a policeman, 1/2 of 1% of each salary
12payment concurrently with and in addition to the salary
13deductions otherwise made for annuity purposes.
14    The city, in addition to the contributions otherwise made
15by it for annuity purposes under other provisions of this
16Article, shall make matching contributions concurrently with
17such salary deductions.
18    Each such 1/2 of 1% deduction from salary and each such
19contribution by the city of 1/2 of 1% of salary shall be
20credited to the Automatic Increase Reserve, to be used to
21defray the cost of the annuity increase provided by this
22Section. Any balance in such reserve as of the beginning of
23each calendar year shall be credited with interest at the rate
24of 3% per annum.
25    Such deductions from salary and city contributions shall
26continue while the policeman is in service.

 

 

HB4065- 89 -LRB103 31966 RPS 60743 b

1    The salary deductions provided in this Section are not
2subject to refund, except to the policeman himself, in any
3case in which: (i) the policeman withdraws prior to
4qualification for minimum annuity or Tier 2 monthly retirement
5annuity and applies for refund, (ii) the policeman applies for
6an annuity of a type that is not subject to annual increases
7under this Section, or (iii) a term annuity becomes payable.
8In such cases, the total of such salary deductions shall be
9refunded to the policeman, without interest, and charged to
10the Automatic Increase Reserve.
11    (d) Notwithstanding any other provision of this Article,
12the Tier 2 monthly retirement annuity of a person who first
13becomes a policeman under this Article on or after the
14effective date of this amendatory Act of the 97th General
15Assembly shall be increased on the January 1 occurring either
16on or after (i) the attainment of age 60 or (ii) the first
17anniversary of the annuity start date, whichever is later;
18except that, beginning on the effective date of this
19amendatory Act of the 103rd General Assembly, eligibility for
20and the amount of the automatic increase in the monthly
21pension of such a person shall be calculated as otherwise
22provided in this Section. Each annual increase shall be
23calculated at 3% or one-half the annual unadjusted percentage
24increase (but not less than zero) in the consumer price
25index-u for the 12 months ending with the September preceding
26each November 1, whichever is less, of the originally granted

 

 

HB4065- 90 -LRB103 31966 RPS 60743 b

1retirement annuity. If the annual unadjusted percentage change
2in the consumer price index-u for a 12-month period ending in
3September is zero or, when compared with the preceding period,
4decreases, then the annuity shall not be increased.
5    For the purposes of this subsection (d), "consumer price
6index-u" means the index published by the Bureau of Labor
7Statistics of the United States Department of Labor that
8measures the average change in prices of goods and services
9purchased by all urban consumers, United States city average,
10all items, 1982-84 = 100. The new amount resulting from each
11annual adjustment shall be determined by the Public Pension
12Division of the Department of Insurance and made available to
13the boards of the pension funds by November 1 of each year.
14(Source: P.A. 99-905, eff. 11-29-16.)
 
15    (40 ILCS 5/5-168)   (from Ch. 108 1/2, par. 5-168)
16    Sec. 5-168. Financing.
17    (a) Except as expressly provided in this Section, the city
18shall levy a tax annually upon all taxable property therein
19for the purpose of providing revenue for the fund.
20    The tax shall be at a rate that will produce a sum which,
21when added to the amounts deducted from the policemen's
22salaries and the amounts deposited in accordance with
23subsection (g), is sufficient for the purposes of the fund.
24    For the years 1968 and 1969, the city council shall levy a
25tax annually at a rate on the dollar of the assessed valuation

 

 

HB4065- 91 -LRB103 31966 RPS 60743 b

1of all taxable property that will produce, when extended, not
2to exceed $9,700,000. Beginning with the year 1970 and through
32014, the city council shall levy a tax annually at a rate on
4the dollar of the assessed valuation of all taxable property
5that will produce when extended an amount not to exceed the
6total amount of contributions by the policemen to the Fund
7made in the calendar year 2 years before the year for which the
8applicable annual tax is levied, multiplied by 1.40 for the
9tax levy year 1970; by 1.50 for the year 1971; by 1.65 for
101972; by 1.85 for 1973; by 1.90 for 1974; by 1.97 for 1975
11through 1981; by 2.00 for 1982 and for each tax levy year
12through 2014. Beginning in tax levy year 2015, the city
13council shall levy a tax annually at a rate on the dollar of
14the assessed valuation of all taxable property that will
15produce when extended an annual amount that is equal to no less
16than the amount of the city's contribution in each of the
17following payment years: for 2016, $420,000,000; for 2017,
18$464,000,000; for 2018, $500,000,000; for 2019, $557,000,000;
19for 2020, $579,000,000.
20    Beginning in tax levy year 2020 and until levy year 2024,
21the city council shall levy a tax annually at a rate on the
22dollar of the assessed valuation of all taxable property that
23will produce when extended an annual amount that is equal to no
24less than (1) the normal cost to the Fund, plus (2) an annual
25amount sufficient to bring the total assets of the Fund up to
2690% of the total actuarial liabilities of the Fund by the end

 

 

HB4065- 92 -LRB103 31966 RPS 60743 b

1of fiscal year 2055, as annually updated and determined by an
2enrolled actuary employed by the Illinois Department of
3Insurance or by an enrolled actuary retained by the Fund.
4Beginning in tax levy year 2024, the city council shall levy a
5tax annually at a rate on the dollar of the assessed valuation
6of all taxable property that will produce when extended an
7annual amount that is equal to no less than (1) the normal cost
8to the Fund, plus (2) an annual amount sufficient to bring the
9total assets of the Fund up to 90% of the total actuarial
10liabilities of the Fund by the end of fiscal year 2055, as
11annually updated and determined by an enrolled actuary
12employed by the Department of Insurance or by an enrolled
13actuary retained by the Fund, minus (3) the amount of the
14anticipated State contribution from the Local Government
15Retirement Fund for the payment year. In making these
16determinations, the required minimum employer contribution
17shall be calculated each year as a level percentage of payroll
18over the years remaining up to and including fiscal year 2055
19and shall be determined under the entry age normal actuarial
20cost method.
21    Beginning in payment year 2056, the city's total required
22contribution in that year and each year thereafter shall be an
23annual amount that is equal to no less than (1) the normal cost
24of the Fund, plus (2) the annual amount determined by an
25enrolled actuary employed by the Illinois Department of
26Insurance or by an enrolled actuary retained by the Fund to be

 

 

HB4065- 93 -LRB103 31966 RPS 60743 b

1equal to the amount, if any, needed to bring the total
2actuarial assets of the Fund up to 90% of the total actuarial
3liabilities of the Fund as of the end of the year, utilizing
4the entry age normal cost method as provided above.
5    For the purposes of this subsection (a), contributions by
6the policeman to the Fund shall not include payments made by a
7policeman to establish credit under Section 5-214.2 of this
8Code.
9    (a-1) Beginning in State fiscal year 2024, the city
10council shall annually certify to the Governor the amount of
11(1) the normal cost to the Fund, plus (2) an annual amount
12sufficient to bring the total assets of the Fund up to 90% of
13the total actuarial liabilities of the Fund by the end of
14fiscal year 2055, as annually updated and determined by an
15enrolled actuary employed by the Department of Insurance or by
16an enrolled actuary retained by the Fund.
17    (a-5) For purposes of determining the required employer
18contribution to the Fund, the value of the Fund's assets shall
19be equal to the actuarial value of the Fund's assets, which
20shall be calculated as follows:
21        (1) On March 30, 2011, the actuarial value of the
22    Fund's assets shall be equal to the market value of the
23    assets as of that date.
24        (2) In determining the actuarial value of the Fund's
25    assets for fiscal years after March 30, 2011, any
26    actuarial gains or losses from investment return incurred

 

 

HB4065- 94 -LRB103 31966 RPS 60743 b

1    in a fiscal year shall be recognized in equal annual
2    amounts over the 5-year period following that fiscal year.
3    (a-7) If the city fails to transmit to the Fund
4contributions required of it under this Article for more than
590 days after the payment of those contributions is due, the
6Fund shall, after giving notice to the city, certify to the
7State Comptroller the amounts of the delinquent payments, and
8the Comptroller must, beginning in fiscal year 2016, deduct
9and deposit into the Fund the certified amounts or a portion of
10those amounts from the following proportions of grants of
11State funds to the city:
12        (1) in fiscal year 2016, one-third of the total amount
13    of any grants of State funds to the city;
14        (2) in fiscal year 2017, two-thirds of the total
15    amount of any grants of State funds to the city; and
16        (3) in fiscal year 2018 and each fiscal year
17    thereafter, the total amount of any grants of State funds
18    to the city.
19    The State Comptroller may not deduct from any grants of
20State funds to the city more than the amount of delinquent
21payments certified to the State Comptroller by the Fund.
22    (b) The tax shall be levied and collected in like manner
23with the general taxes of the city, and is in addition to all
24other taxes which the city is now or may hereafter be
25authorized to levy upon all taxable property therein, and is
26exclusive of and in addition to the amount of tax the city is

 

 

HB4065- 95 -LRB103 31966 RPS 60743 b

1now or may hereafter be authorized to levy for general
2purposes under any law which may limit the amount of tax which
3the city may levy for general purposes. The county clerk of the
4county in which the city is located, in reducing tax levies
5under Section 8-3-1 of the Illinois Municipal Code, shall not
6consider the tax herein authorized as a part of the general tax
7levy for city purposes, and shall not include the tax in any
8limitation of the percent of the assessed valuation upon which
9taxes are required to be extended for the city.
10    (c) On or before January 10 of each year, the board shall
11notify the city council of the requirement that the tax herein
12authorized be levied by the city council for that current
13year. The board shall compute the amounts necessary for the
14purposes of this fund to be credited to the reserves
15established and maintained within the fund; shall make an
16annual determination of the amount of the required city
17contributions; and shall certify the results thereof to the
18city council.
19    As soon as any revenue derived from the tax is collected it
20shall be paid to the city treasurer of the city and shall be
21held by him for the benefit of the fund in accordance with this
22Article.
23    (d) If the funds available are insufficient during any
24year to meet the requirements of this Article, the city may
25issue tax anticipation warrants against the tax levy for the
26current fiscal year.

 

 

HB4065- 96 -LRB103 31966 RPS 60743 b

1    (e) The various sums, including interest, to be
2contributed by the city, shall be taken from the revenue
3derived from such tax or otherwise as expressly provided in
4this Section. Any moneys of the city derived from any source
5other than the tax herein authorized shall not be used for any
6purpose of the fund nor the cost of administration thereof,
7unless applied to make the deposit expressly authorized in
8this Section or the additional city contributions required
9under subsection (h).
10    (f) If it is not possible or practicable for the city to
11make its contributions at the time that salary deductions are
12made, the city shall make such contributions as soon as
13possible thereafter, with interest thereon to the time it is
14made.
15    (g) In lieu of levying all or a portion of the tax required
16under this Section in any year, the city may deposit with the
17city treasurer no later than March 1 of that year for the
18benefit of the fund, to be held in accordance with this
19Article, an amount that, together with the taxes levied under
20this Section for that year, is not less than the amount of the
21city contributions for that year as certified by the board to
22the city council. The deposit may be derived from any source
23legally available for that purpose, including, but not limited
24to, the proceeds of city borrowings and State contributions.
25The making of a deposit shall satisfy fully the requirements
26of this Section for that year to the extent of the amounts so

 

 

HB4065- 97 -LRB103 31966 RPS 60743 b

1deposited. Amounts deposited under this subsection may be used
2by the fund for any of the purposes for which the proceeds of
3the tax levied under this Section may be used, including the
4payment of any amount that is otherwise required by this
5Article to be paid from the proceeds of that tax.
6    (h) In addition to the contributions required under the
7other provisions of this Article, by November 1 of the
8following specified years, the city shall deposit with the
9city treasurer for the benefit of the fund, to be held and used
10in accordance with this Article, the following specified
11amounts: $6,300,000 in 1999; $5,880,000 in 2000; $5,460,000 in
122001; $5,040,000 in 2002; and $4,620,000 in 2003.
13    The additional city contributions required under this
14subsection are intended to decrease the unfunded liability of
15the fund and shall not decrease the amount of the city
16contributions required under the other provisions of this
17Article. The additional city contributions made under this
18subsection may be used by the fund for any of its lawful
19purposes.
20    (i) Any proceeds received by the city in relation to the
21operation of a casino or casinos within the city shall be
22expended by the city for payment to the Policemen's Annuity
23and Benefit Fund of Chicago to satisfy the city contribution
24obligation in any year.
25(Source: P.A. 99-506, eff. 5-30-16.)
 

 

 

HB4065- 98 -LRB103 31966 RPS 60743 b

1    (40 ILCS 5/5-169)  (from Ch. 108 1/2, par. 5-169)
2    Sec. 5-169. Contributions for age and service annuities or
3Tier 2 monthly retirement annuities for present employees and
4future entrants.
5    (a) Beginning on the effective date and before January 1,
61954, 3 1/2% per annum (except that beginning July 1, 1939 and
7before January 1, 1954 for a future entrant, 4%) and beginning
8January 1, 1954 and before August 1, 1957, 6%, and beginning
9August 1, 1957, 7% of each payment of the salary of each
10present employee and future entrant shall be deducted and
11contributed to the fund for age and service annuity or Tier 2
12monthly retirement annuity. The deductions shall be made from
13each payment of salary and shall continue while the employee
14is in service.
15    Any policeman whose employment has been transferred to the
16police service of the city as a result of the Chicago Park and
17City Exchange of Functions Act "An Act in relation to or
18exchange of certain functions, property and personnel among
19cities, and park districts having co-extensive geographic
20areas and populations in excess of 500,000", approved July 5,
211957, as now and hereafter amended, shall also contribute a
22sum equal to 2% of the total salary received by him in his
23employment between August 1, 1957 to July 17, 1959, with the
24park district from which he has been transferred together with
25interest on the unpaid contributions of 4% per annum from July
2617, 1959 to the date such payments are made. Such additional

 

 

HB4065- 99 -LRB103 31966 RPS 60743 b

1sum may be paid at any time before the time such policeman
2enters into age and service annuity.
3    Concurrently with each such deduction, beginning on the
4effective date and prior to January 1, 1954, 8 1/2% (except for
5a future entrant beginning on July 1, 1939, 9 5/7%) and
6beginning January 1, 1954, 9 5/7% of each payment of salary
7shall be contributed by the city, but in the case of a future
8entrant who attains age 63 prior to January 1, 1988 while still
9in service, no contributions shall be made for the period
10between the date the employee attains age 63 and January 1,
111988.
12    (b) Each deduction from salary made prior to the date the
13age and service annuity for the employee is fixed, and each
14contribution by the city, shall be credited to the employee
15and be improved by interest for a present employee during the
16time he is in service until age and service annuity is fixed,
17and, for a future entrant, during the time he is in service.
18The sum accumulated shall be used to provide age and service
19annuity for the employee.
20    Beginning September 1, 1967, the deductions from salary
21provided in Section 5-167.1 shall also be made.
22(Source: P.A. 99-905, eff. 11-29-16.)
 
23    (40 ILCS 5/5-239 new)
24    Sec. 5-239. Application of this amendatory Act of the
25103rd General Assembly. It is the intent of this amendatory

 

 

HB4065- 100 -LRB103 31966 RPS 60743 b

1Act of the 103rd General Assembly to provide to policemen who
2first became policemen on or after January 1, 2011 the same
3level of benefits and eligibility criteria for benefits as
4those who first became policemen before January 1, 2011. The
5changes made to this Article by this amendatory Act of the
6103rd General Assembly that provide benefit increases for
7policemen apply without regard to whether the policeman was in
8service on or after the effective date of this amendatory Act
9of the 103rd General Assembly, notwithstanding the provisions
10of Section 1-103.1. The benefit increases are intended to
11apply prospectively and do not entitle a policeman to
12retroactive benefit payments or increases. The changes made to
13this Article by this amendatory Act of the 103rd General
14Assembly shall not cause or otherwise result in any
15retroactive adjustment of any employee contributions.
 
16    (40 ILCS 5/6-165)   (from Ch. 108 1/2, par. 6-165)
17    Sec. 6-165. Financing; tax.
18    (a) Except as expressly provided in this Section, each
19city shall levy a tax annually upon all taxable property
20therein for the purpose of providing revenue for the fund. For
21the years prior to the year 1960, the tax rate shall be as
22provided for in the "Firemen's Annuity and Benefit Fund of the
23Illinois Municipal Code". The tax, from and after January 1,
241968 to and including the year 1971, shall not exceed .0863% of
25the value, as equalized or assessed by the Department of

 

 

HB4065- 101 -LRB103 31966 RPS 60743 b

1Revenue, of all taxable property in the city. Beginning with
2the year 1972 and through 2014, the city shall levy a tax
3annually at a rate on the dollar of the value, as equalized or
4assessed by the Department of Revenue of all taxable property
5within such city that will produce, when extended, not to
6exceed an amount equal to the total amount of contributions by
7the employees to the fund made in the calendar year 2 years
8prior to the year for which the annual applicable tax is
9levied, multiplied by 2.23 through the calendar year 1981, and
10by 2.26 for the year 1982 and for each tax levy year through
112014. Beginning in tax levy year 2015, the city council shall
12levy a tax annually at a rate on the dollar of the assessed
13valuation of all taxable property that will produce when
14extended an annual amount that is equal to no less than the
15amount of the city's contribution in each of the following
16payment years: for 2016, $199,000,000; for 2017, $208,000,000;
17for 2018, $227,000,000; for 2019, $235,000,000; for 2020,
18$245,000,000.
19    Beginning in tax levy year 2020 and until tax levy year
202024, the city council shall levy a tax annually at a rate on
21the dollar of the assessed valuation of all taxable property
22that will produce when extended an annual amount that is equal
23to no less than (1) the normal cost to the Fund, plus (2) an
24annual amount sufficient to bring the total assets of the Fund
25up to 90% of the total actuarial liabilities of the Fund by the
26end of fiscal year 2055, as annually updated and determined by

 

 

HB4065- 102 -LRB103 31966 RPS 60743 b

1an enrolled actuary employed by the Illinois Department of
2Insurance or by an enrolled actuary retained by the Fund or the
3city. Beginning in tax levy year 2024, the city council shall
4levy a tax annually at a rate on the dollar of the assessed
5valuation of all taxable property that will produce when
6extended an annual amount that is equal to no less than (1) the
7normal cost to the Fund, plus (2) an annual amount sufficient
8to bring the total assets of the Fund up to 90% of the total
9actuarial liabilities of the Fund by the end of fiscal year
102055, as annually updated and determined by an enrolled
11actuary employed by the Department of Insurance or by an
12enrolled actuary retained by the Fund or the city, minus (3)
13the amount of the anticipated State contribution from the
14Local Government Retirement Fund for the payment year. In
15making these determinations, the required minimum employer
16contribution shall be calculated each year as a level
17percentage of payroll over the years remaining up to and
18including fiscal year 2055 and shall be determined under the
19entry age normal actuarial cost method. Beginning in payment
20year 2056, the city's required contribution in that year and
21for each year thereafter shall be an annual amount that is
22equal to no less than (1) the normal cost to the Fund, plus (2)
23the annual amount determined by an enrolled actuary employed
24by the Illinois Department of Insurance or by an enrolled
25actuary retained by the Fund to be equal to the amount, if any,
26needed to bring the total actuarial assets of the Fund up to

 

 

HB4065- 103 -LRB103 31966 RPS 60743 b

190% of the total actuarial liabilities of the Fund as of the
2end of the year, utilizing the entry age normal actuarial cost
3method as provided above.
4    To provide revenue for the ordinary death benefit
5established by Section 6-150 of this Article, in addition to
6the contributions by the firemen for this purpose, the city
7council shall for the year 1962 and each year thereafter
8annually levy a tax, which shall be in addition to and
9exclusive of the taxes authorized to be levied under the
10foregoing provisions of this Section, upon all taxable
11property in the city, as equalized or assessed by the
12Department of Revenue, at such rate per cent of the value of
13such property as shall be sufficient to produce for each year
14the sum of $142,000.
15    The amounts produced by the taxes levied annually,
16together with the deposit expressly authorized in this Section
17and any State contributions, shall be sufficient, when added
18to the amounts deducted from the salaries of firemen and
19applied to the fund, to provide for the purposes of the fund.
20    (a-1) Beginning in State fiscal year 2024, the city
21council shall annually certify to the Governor the amount of
22(1) the normal cost to the Fund, plus (2) an annual amount
23sufficient to bring the total assets of the Fund up to 90% of
24the total actuarial liabilities of the Fund by the end of
25fiscal year 2055, as annually updated and determined by an
26enrolled actuary employed by the Department of Insurance or by

 

 

HB4065- 104 -LRB103 31966 RPS 60743 b

1an enrolled actuary retained by the Fund.
2    (a-5) For purposes of determining the required employer
3contribution to the Fund, the value of the Fund's assets shall
4be equal to the actuarial value of the Fund's assets, which
5shall be calculated as follows:
6        (1) On March 30, 2011, the actuarial value of the
7    Fund's assets shall be equal to the market value of the
8    assets as of that date.
9        (2) In determining the actuarial value of the Fund's
10    assets for fiscal years after March 30, 2011, any
11    actuarial gains or losses from investment return incurred
12    in a fiscal year shall be recognized in equal annual
13    amounts over the 5-year period following that fiscal year.
14    (a-7) If the city fails to transmit to the Fund
15contributions required of it under this Article for more than
1690 days after the payment of those contributions is due, the
17Fund shall, after giving notice to the city, certify to the
18State Comptroller the amounts of the delinquent payments, and
19the Comptroller must, beginning in fiscal year 2016, deduct
20and deposit into the Fund the certified amounts or a portion of
21those amounts from the following proportions of grants of
22State funds to the city:
23        (1) in fiscal year 2016, one-third of the total amount
24    of any grants of State funds to the city;
25        (2) in fiscal year 2017, two-thirds of the total
26    amount of any grants of State funds to the city; and

 

 

HB4065- 105 -LRB103 31966 RPS 60743 b

1        (3) in fiscal year 2018 and each fiscal year
2    thereafter, the total amount of any grants of State funds
3    to the city.
4    The State Comptroller may not deduct from any grants of
5State funds to the city more than the amount of delinquent
6payments certified to the State Comptroller by the Fund.
7    (b) The taxes shall be levied and collected in like manner
8with the general taxes of the city, and shall be in addition to
9all other taxes which the city may levy upon all taxable
10property therein and shall be exclusive of and in addition to
11the amount of tax the city may levy for general purposes under
12Section 8-3-1 of the Illinois Municipal Code, approved May 29,
131961, as amended, or under any other law or laws which may
14limit the amount of tax which the city may levy for general
15purposes.
16    (c) The amounts of the taxes to be levied in each year
17shall be certified to the city council by the board.
18    (d) As soon as any revenue derived from such taxes is
19collected, it shall be paid to the city treasurer and held for
20the benefit of the fund, and all such revenue shall be paid
21into the fund in accordance with the provisions of this
22Article.
23    (e) If the funds available are insufficient during any
24year to meet the requirements of this Article, the city may
25issue tax anticipation warrants, against the tax levies herein
26authorized for the current fiscal year.

 

 

HB4065- 106 -LRB103 31966 RPS 60743 b

1    (f) The various sums, hereinafter stated, including
2interest, to be contributed by the city, shall be taken from
3the revenue derived from the taxes or otherwise as expressly
4provided in this Section. Except for defraying the cost of
5administration of the fund during the calendar year in which a
6city first attains a population of 500,000 and comes under the
7provisions of this Article and the first calendar year
8thereafter, any money of the city derived from any source
9other than these taxes or the sale of tax anticipation
10warrants shall not be used to provide revenue for the fund, nor
11to pay any part of the cost of administration thereof, unless
12applied to make the deposit expressly authorized in this
13Section or the additional city contributions required under
14subsection (h).
15    (g) In lieu of levying all or a portion of the tax required
16under this Section in any year, the city may deposit with the
17city treasurer no later than March 1 of that year for the
18benefit of the fund, to be held in accordance with this
19Article, an amount that, together with the taxes levied under
20this Section for that year, is not less than the amount of the
21city contributions for that year as certified by the board to
22the city council. The deposit may be derived from any source
23legally available for that purpose, including, but not limited
24to, the proceeds of city borrowings and State contributions.
25The making of a deposit shall satisfy fully the requirements
26of this Section for that year to the extent of the amounts so

 

 

HB4065- 107 -LRB103 31966 RPS 60743 b

1deposited. Amounts deposited under this subsection may be used
2by the fund for any of the purposes for which the proceeds of
3the taxes levied under this Section may be used, including the
4payment of any amount that is otherwise required by this
5Article to be paid from the proceeds of those taxes.
6    (h) In addition to the contributions required under the
7other provisions of this Article, by November 1 of the
8following specified years, the city shall deposit with the
9city treasurer for the benefit of the fund, to be held and used
10in accordance with this Article, the following specified
11amounts: $6,300,000 in 1999; $5,880,000 in 2000; $5,460,000 in
122001; $5,040,000 in 2002; and $4,620,000 in 2003.
13    The additional city contributions required under this
14subsection are intended to decrease the unfunded liability of
15the fund and shall not decrease the amount of the city
16contributions required under the other provisions of this
17Article. The additional city contributions made under this
18subsection may be used by the fund for any of its lawful
19purposes.
20    (i) Any proceeds received by the city in relation to the
21operation of a casino or casinos within the city shall be
22expended by the city for payment to the Firemen's Annuity and
23Benefit Fund of Chicago to satisfy the city contribution
24obligation in any year.
25(Source: P.A. 99-506, eff. 5-30-16.)
 

 

 

HB4065- 108 -LRB103 31966 RPS 60743 b

1    (40 ILCS 5/6-210)  (from Ch. 108 1/2, par. 6-210)
2    Sec. 6-210. Credit allowed for service in police
3department. Service rendered by a fireman, as a regularly
4appointed and sworn policeman of the city shall be included,
5for the purposes of this Article, as if such service were
6rendered as a fireman of the city. Salary received by a fireman
7for any such service as a policeman shall be considered, for
8the purposes of this Article, as salary received as a fireman.
9Any annuity payable to a fireman under this Article shall be
10reduced by any pension or annuity payable to him from any
11policemen's annuity and benefit fund in operation in the city,
12and any member entering service after January 1, 2011 shall
13not be given service credit in this fund for any period of time
14in which the member is in receipt of retirement benefits from
15any annuity and benefit fund in operation in the city.
16    Any policeman who becomes a fireman, subsequent to July 1,
171935, may contribute to the fund an amount equal to the sum
18which would have accumulated to his credit from deductions
19from salary for annuity purposes if he had been contributing
20to the fund such sums as he contributed for annuity purposes to
21the policemen's annuity and benefit fund, and no credit for
22periods of service rendered by him in the police department
23shall be allowed, under this Article, except as to such
24periods for which he made contributions to the policemen's
25annuity and benefit fund, provided he has made the payments
26required by this Article.

 

 

HB4065- 109 -LRB103 31966 RPS 60743 b

1(Source: P.A. 96-1466, eff. 8-20-10.)
 
2    (40 ILCS 5/6-231 new)
3    Sec. 6-231. Application of this amendatory Act of the
4103rd General Assembly. It is the intent of this amendatory
5Act of the 103rd General Assembly to provide to firemen who
6first became firemen on or after January 1, 2011 the same level
7of benefits and eligibility criteria for benefits as those who
8first became firemen before January 1, 2011. The changes made
9to this Article by this amendatory Act of the 103rd General
10Assembly that provide benefit increases for firemen apply
11without regard to whether the fireman was in service on or
12after the effective date of this amendatory Act of the 103rd
13General Assembly, notwithstanding the provisions of Section
141-103.1. The benefit increases are intended to apply
15prospectively and do not entitle a fireman to retroactive
16benefit payments or increases. The changes made to this
17Article by this amendatory Act of the 103rd General Assembly
18shall not cause or otherwise result in any retroactive
19adjustment of any employee contributions.
 
20    (40 ILCS 5/7-142.1)  (from Ch. 108 1/2, par. 7-142.1)
21    Sec. 7-142.1. Sheriff's law enforcement employees.
22    (a) In lieu of the retirement annuity provided by
23subparagraph 1 of paragraph (a) of Section 7-142:
24    Any sheriff's law enforcement employee who has 20 or more

 

 

HB4065- 110 -LRB103 31966 RPS 60743 b

1years of service in that capacity and who terminates service
2prior to January 1, 1988 shall be entitled at his option to
3receive a monthly retirement annuity for his service as a
4sheriff's law enforcement employee computed by multiplying 2%
5for each year of such service up to 10 years, 2 1/4% for each
6year of such service above 10 years and up to 20 years, and 2
71/2% for each year of such service above 20 years, by his
8annual final rate of earnings and dividing by 12.
9    Any sheriff's law enforcement employee who has 20 or more
10years of service in that capacity and who terminates service
11on or after January 1, 1988 and before July 1, 2004 shall be
12entitled at his option to receive a monthly retirement annuity
13for his service as a sheriff's law enforcement employee
14computed by multiplying 2.5% for each year of such service up
15to 20 years, 2% for each year of such service above 20 years
16and up to 30 years, and 1% for each year of such service above
1730 years, by his annual final rate of earnings and dividing by
1812.
19    Any sheriff's law enforcement employee who has 20 or more
20years of service in that capacity and who terminates service
21on or after July 1, 2004 shall be entitled at his or her option
22to receive a monthly retirement annuity for service as a
23sheriff's law enforcement employee computed by multiplying
242.5% for each year of such service by his annual final rate of
25earnings and dividing by 12.
26    If a sheriff's law enforcement employee has service in any

 

 

HB4065- 111 -LRB103 31966 RPS 60743 b

1other capacity, his retirement annuity for service as a
2sheriff's law enforcement employee may be computed under this
3Section and the retirement annuity for his other service under
4Section 7-142.
5    In no case shall the total monthly retirement annuity for
6persons who retire before July 1, 2004 exceed 75% of the
7monthly final rate of earnings. In no case shall the total
8monthly retirement annuity for persons who retire on or after
9July 1, 2004 exceed 80% of the monthly final rate of earnings.
10    (b) Whenever continued group insurance coverage is elected
11in accordance with the provisions of Section 367h of the
12Illinois Insurance Code, as now or hereafter amended, the
13total monthly premium for such continued group insurance
14coverage or such portion thereof as is not paid by the
15municipality shall, upon request of the person electing such
16continued group insurance coverage, be deducted from any
17monthly pension benefit otherwise payable to such person
18pursuant to this Section, to be remitted by the Fund to the
19insurance company or other entity providing the group
20insurance coverage.
21    (c) A sheriff's law enforcement employee who began service
22in that capacity prior to the effective date of this
23amendatory Act of the 97th General Assembly and who has
24service in any other capacity may convert up to 10 years of
25that service into service as a sheriff's law enforcement
26employee by paying to the Fund an amount equal to (1) the

 

 

HB4065- 112 -LRB103 31966 RPS 60743 b

1additional employee contribution required under Section
27-173.1, plus (2) the additional employer contribution
3required under Section 7-172, plus (3) interest on items (1)
4and (2) at the prescribed rate from the date of the service to
5the date of payment. Application must be received by the Board
6while the employee is an active participant in the Fund.
7Payment must be received while the member is an active
8participant, except that one payment will be permitted after
9termination of participation.
10    (d) The changes to subsections (a) and (b) of this Section
11made by this amendatory Act of the 94th General Assembly apply
12only to persons in service on or after July 1, 2004. In the
13case of such a person who begins to receive a retirement
14annuity before the effective date of this amendatory Act of
15the 94th General Assembly, the annuity shall be recalculated
16prospectively to reflect those changes, with the resulting
17increase beginning to accrue on the first annuity payment date
18following the effective date of this amendatory Act.
19    (e) Any elected county officer who was entitled to receive
20a stipend from the State on or after July 1, 2009 and on or
21before June 30, 2010 may establish earnings credit for the
22amount of stipend not received, if the elected county official
23applies in writing to the fund within 6 months after the
24effective date of this amendatory Act of the 96th General
25Assembly and pays to the fund an amount equal to (i) employee
26contributions on the amount of stipend not received, (ii)

 

 

HB4065- 113 -LRB103 31966 RPS 60743 b

1employer contributions determined by the Board equal to the
2employer's normal cost of the benefit on the amount of stipend
3not received, plus (iii) interest on items (i) and (ii) at the
4actuarially assumed rate.
5    (f) It is the intent of this amendatory Act of the 103rd
6General Assembly to provide to sheriff's law enforcement
7employees who first became sheriff's law enforcement employees
8on or after January 1, 2011 the same level of benefits and
9eligibility criteria for benefits as those who first became
10sheriff's law enforcement employees before January 1, 2011.
11The changes made to this Article by this amendatory Act of the
12103rd General Assembly that provide benefit increases for
13sheriff's law enforcement employees apply without regard to
14whether the sheriff's law enforcement employee was in service
15on or after the effective date of this amendatory Act of the
16103rd General Assembly, notwithstanding the provisions of
17Section 1-103.1. The benefit increases are intended to apply
18prospectively and do not entitle a sheriff's law enforcement
19employee to retroactive benefit payments or increases. The
20changes made to this Article by this amendatory Act of the
21103rd General Assembly shall not cause or otherwise result in
22any retroactive adjustment of any employee contributions.
23    (f) Notwithstanding any other provision of this Article,
24the provisions of this subsection (f) apply to a person who
25first becomes a sheriff's law enforcement employee under this
26Article on or after January 1, 2011.

 

 

HB4065- 114 -LRB103 31966 RPS 60743 b

1    A sheriff's law enforcement employee age 55 or more who
2has 10 or more years of service in that capacity shall be
3entitled at his option to receive a monthly retirement annuity
4for his or her service as a sheriff's law enforcement employee
5computed by multiplying 2.5% for each year of such service by
6his or her final rate of earnings.
7    The retirement annuity of a sheriff's law enforcement
8employee who is retiring after attaining age 50 with 10 or more
9years of creditable service shall be reduced by one-half of 1%
10for each month that the sheriff's law enforcement employee's
11age is under age 55.
12    The maximum retirement annuity under this subsection (f)
13shall be 75% of final rate of earnings.
14    For the purposes of this subsection (f), "final rate of
15earnings" means the average monthly earnings obtained by
16dividing the total salary of the sheriff's law enforcement
17employee during the 96 consecutive months of service within
18the last 120 months of service in which the total earnings was
19the highest by the number of months of service in that period.
20    Notwithstanding any other provision of this Article,
21beginning on January 1, 2011, for all purposes under this Code
22(including without limitation the calculation of benefits and
23employee contributions), the annual earnings of a sheriff's
24law enforcement employee to whom this Section applies shall
25not include overtime and shall not exceed $106,800; however,
26that amount shall annually thereafter be increased by the

 

 

HB4065- 115 -LRB103 31966 RPS 60743 b

1lesser of (i) 3% of that amount, including all previous
2adjustments, or (ii) one-half the annual unadjusted percentage
3increase (but not less than zero) in the consumer price
4index-u for the 12 months ending with the September preceding
5each November 1, including all previous adjustments.
6    (g) Notwithstanding any other provision of this Article,
7the monthly annuity of a person who first becomes a sheriff's
8law enforcement employee under this Article on or after
9January 1, 2011 shall be increased on the January 1 occurring
10either on or after the attainment of age 60 or the first
11anniversary of the annuity start date, whichever is later.
12Each annual increase shall be calculated at 3% or one-half the
13annual unadjusted percentage increase (but not less than zero)
14in the consumer price index-u for the 12 months ending with the
15September preceding each November 1, whichever is less, of the
16originally granted retirement annuity. If the annual
17unadjusted percentage change in the consumer price index-u for
18a 12-month period ending in September is zero or, when
19compared with the preceding period, decreases, then the
20annuity shall not be increased.
21    (h) Notwithstanding any other provision of this Article,
22for a person who first becomes a sheriff's law enforcement
23employee under this Article on or after January 1, 2011, the
24annuity to which the surviving spouse, children, or parents
25are entitled under this subsection (h) shall be in the amount
26of 66 2/3% of the sheriff's law enforcement employee's earned

 

 

HB4065- 116 -LRB103 31966 RPS 60743 b

1annuity at the date of death.
2    (i) Notwithstanding any other provision of this Article,
3the monthly annuity of a survivor of a person who first becomes
4a sheriff's law enforcement employee under this Article on or
5after January 1, 2011 shall be increased on the January 1 after
6attainment of age 60 by the recipient of the survivor's
7annuity and each January 1 thereafter by 3% or one-half the
8annual unadjusted percentage increase in the consumer price
9index-u for the 12 months ending with the September preceding
10each November 1, whichever is less, of the originally granted
11pension. If the annual unadjusted percentage change in the
12consumer price index-u for a 12-month period ending in
13September is zero or, when compared with the preceding period,
14decreases, then the annuity shall not be increased.
15    (j) For the purposes of this Section, "consumer price
16index-u" means the index published by the Bureau of Labor
17Statistics of the United States Department of Labor that
18measures the average change in prices of goods and services
19purchased by all urban consumers, United States city average,
20all items, 1982-84 = 100. The new amount resulting from each
21annual adjustment shall be determined by the Public Pension
22Division of the Department of Insurance and made available to
23the boards of the pension funds.
24(Source: P.A. 100-148, eff. 8-18-17.)
 
25    (40 ILCS 5/7-171)  (from Ch. 108 1/2, par. 7-171)

 

 

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1    Sec. 7-171. Finance; taxes.
2    (a) Each municipality other than a school district shall
3appropriate an amount sufficient to provide for the current
4municipality contributions required by Section 7-172 of this
5Article, for the fiscal year for which the appropriation is
6made and all amounts due for municipal contributions for
7previous years. Those municipalities which have been assessed
8an annual amount to amortize its unfunded obligation, as
9provided in subparagraph 4 of paragraph (a) of Section 7-172
10of this Article, shall include in the appropriation an amount
11sufficient to pay the amount assessed. The appropriation shall
12be based upon an estimate of assets available for municipality
13contributions and liabilities therefor for the fiscal year for
14which appropriations are to be made, including funds available
15from levies for this purpose in prior years.
16    (b) For the purpose of providing monies for municipality
17contributions, beginning for the year in which a municipality
18is included in this fund:
19        (1) A municipality other than a school district may
20    levy a tax which shall not exceed the amount appropriated
21    for municipality contributions minus the amount of the
22    anticipated State contribution from the Local Government
23    Retirement Fund to the municipality for that year.
24        (2) A school district may levy a tax in an amount
25    reasonably calculated at the time of the levy to provide
26    for the municipality contributions required under Section

 

 

HB4065- 118 -LRB103 31966 RPS 60743 b

1    7-172 of this Article for the fiscal years for which
2    revenues from the levy will be received and all amounts
3    due for municipal contributions for previous years. Any
4    levy adopted before the effective date of this amendatory
5    Act of 1995 by a school district shall be considered valid
6    and authorized to the extent that the amount was
7    reasonably calculated at the time of the levy to provide
8    for the municipality contributions required under Section
9    7-172 for the fiscal years for which revenues from the
10    levy will be received and all amounts due for municipal
11    contributions for previous years. In no event shall a
12    budget adopted by a school district limit a levy of that
13    school district adopted under this Section.
14    (c) Any county which is served by a regional office of
15education that serves 2 or more counties may include in its
16appropriation an amount sufficient to provide its
17proportionate share of the municipality contributions for that
18regional office of education. The tax levy authorized by this
19Section may include an amount necessary to provide monies for
20this contribution.
21    (d) Any county that is a part of a multiple-county health
22department or consolidated health department which is formed
23under "An Act in relation to the establishment and maintenance
24of county and multiple-county public health departments",
25approved July 9, 1943, as amended, and which is a
26participating instrumentality may include in the county's

 

 

HB4065- 119 -LRB103 31966 RPS 60743 b

1appropriation an amount sufficient to provide its
2proportionate share of municipality contributions of the
3department. The tax levy authorized by this Section may
4include the amount necessary to provide monies for this
5contribution.
6    (d-5) A school district participating in a special
7education joint agreement created under Section 10-22.31 of
8the School Code that is a participating instrumentality may
9include in the school district's tax levy under this Section
10an amount sufficient to provide its proportionate share of the
11municipality contributions for current and prior service by
12employees of the participating instrumentality created under
13the joint agreement.
14    (e) Such tax shall be levied and collected in like manner,
15with the general taxes of the municipality and shall be in
16addition to all other taxes which the municipality is now or
17may hereafter be authorized to levy upon all taxable property
18therein, and shall be exclusive of and in addition to the
19amount of tax levied for general purposes under Section 8-3-1
20of the "Illinois Municipal Code", approved May 29, 1961, as
21amended, or under any other law or laws which may limit the
22amount of tax which the municipality may levy for general
23purposes. The tax may be levied by the governing body of the
24municipality without being authorized as being additional to
25all other taxes by a vote of the people of the municipality.
26    (f) The county clerk of the county in which any such

 

 

HB4065- 120 -LRB103 31966 RPS 60743 b

1municipality is located, in reducing tax levies shall not
2consider any such tax as a part of the general tax levy for
3municipality purposes, and shall not include the same in the
4limitation of any other tax rate which may be extended.
5    (g) The amount of the tax to be levied in any year shall,
6within the limits herein prescribed, be determined by the
7governing body of the respective municipality.
8    (h) The revenue derived from any such tax levy shall be
9used only for the contributions required under Section 7-172
10and, as collected, shall be paid to the treasurer of the
11municipality levying the tax. Monies received by a county
12treasurer for use in making contributions to a regional office
13of education for its municipality contributions shall be held
14by him for that purpose and paid to the regional office of
15education in the same manner as other monies appropriated for
16the expense of the regional office.
17(Source: P.A. 96-1084, eff. 7-16-10; 97-933, eff. 8-10-12.)
 
18    (40 ILCS 5/7-172)  (from Ch. 108 1/2, par. 7-172)
19    Sec. 7-172. Contributions by participating municipalities
20and participating instrumentalities.
21    (a) Each participating municipality and each participating
22instrumentality shall make payment to the fund as follows:
23        1. municipality contributions in an amount determined
24    by applying the municipality contribution rate to each
25    payment of earnings paid to each of its participating

 

 

HB4065- 121 -LRB103 31966 RPS 60743 b

1    employees;
2        2. an amount equal to the employee contributions
3    provided by paragraph (a) of Section 7-173, whether or not
4    the employee contributions are withheld as permitted by
5    that Section;
6        3. all accounts receivable, together with interest
7    charged thereon, as provided in Section 7-209, and any
8    amounts due under subsection (a-5) of Section 7-144;
9        4. if it has no participating employees with current
10    earnings, an amount payable which, over a closed period of
11    20 years for participating municipalities and 10 years for
12    participating instrumentalities, will amortize, at the
13    effective rate for that year, any unfunded obligation. The
14    unfunded obligation shall be computed as provided in
15    paragraph 2 of subsection (b);
16        5. if it has fewer than 7 participating employees or a
17    negative balance in its municipality reserve, the greater
18    of (A) an amount payable that, over a period of 20 years,
19    will amortize at the effective rate for that year any
20    unfunded obligation, computed as provided in paragraph 2
21    of subsection (b) or (B) the amount required by paragraph
22    1 of this subsection (a).
23    (b) A separate municipality contribution rate shall be
24determined for each calendar year for all participating
25municipalities together with all instrumentalities thereof.
26The municipality contribution rate shall be determined for

 

 

HB4065- 122 -LRB103 31966 RPS 60743 b

1participating instrumentalities as if they were participating
2municipalities. The municipality contribution rate shall be
3the sum of the following percentages:
4        1. The percentage of earnings of all the participating
5    employees of all participating municipalities and
6    participating instrumentalities which, if paid over the
7    entire period of their service, will be sufficient when
8    combined with all employee contributions available for the
9    payment of benefits, to provide all annuities for
10    participating employees, and the $3,000 death benefit
11    payable under Sections 7-158 and 7-164, such percentage to
12    be known as the normal cost rate.
13        2. The percentage of earnings of the participating
14    employees of each participating municipality and
15    participating instrumentalities necessary to adjust for
16    the difference between the present value of all benefits,
17    excluding temporary and total and permanent disability and
18    death benefits, to be provided for its participating
19    employees and the sum of its accumulated municipality
20    contributions and the accumulated employee contributions
21    and the present value of expected future employee and
22    municipality contributions pursuant to subparagraph 1 of
23    this paragraph (b). This adjustment shall be spread over a
24    period determined by the Board, not to exceed 30 years for
25    participating municipalities or 10 years for participating
26    instrumentalities.

 

 

HB4065- 123 -LRB103 31966 RPS 60743 b

1        3. The percentage of earnings of the participating
2    employees of all municipalities and participating
3    instrumentalities necessary to provide the present value
4    of all temporary and total and permanent disability
5    benefits granted during the most recent year for which
6    information is available.
7        4. The percentage of earnings of the participating
8    employees of all participating municipalities and
9    participating instrumentalities necessary to provide the
10    present value of the net single sum death benefits
11    expected to become payable from the reserve established
12    under Section 7-206 during the year for which this rate is
13    fixed.
14        5. The percentage of earnings necessary to meet any
15    deficiency arising in the Terminated Municipality Reserve.
16    (c) A separate municipality contribution rate shall be
17computed for each participating municipality or participating
18instrumentality for its sheriff's law enforcement employees.
19    A separate municipality contribution rate shall be
20computed for the sheriff's law enforcement employees of each
21forest preserve district that elects to have such employees.
22For the period from January 1, 1986 to December 31, 1986, such
23rate shall be the forest preserve district's regular rate plus
242%.
25    Beginning in fiscal year 2024, the Board shall annually
26certify to the Governor the amount of each participant

 

 

HB4065- 124 -LRB103 31966 RPS 60743 b

1municipality's and participating instrumentality's
2contribution for its sheriff's law enforcement employees.
3    In the event that the Board determines that there is an
4actuarial deficiency in the account of any municipality with
5respect to a person who has elected to participate in the Fund
6under Section 3-109.1 of this Code, the Board may adjust the
7municipality's contribution rate so as to make up that
8deficiency over such reasonable period of time as the Board
9may determine.
10    (d) The Board may establish a separate municipality
11contribution rate for all employees who are program
12participants employed under the federal Comprehensive
13Employment Training Act by all of the participating
14municipalities and instrumentalities. The Board may also
15provide that, in lieu of a separate municipality rate for
16these employees, a portion of the municipality contributions
17for such program participants shall be refunded or an extra
18charge assessed so that the amount of municipality
19contributions retained or received by the fund for all CETA
20program participants shall be an amount equal to that which
21would be provided by the separate municipality contribution
22rate for all such program participants. Refunds shall be made
23to prime sponsors of programs upon submission of a claim
24therefor and extra charges shall be assessed to participating
25municipalities and instrumentalities. In establishing the
26municipality contribution rate as provided in paragraph (b) of

 

 

HB4065- 125 -LRB103 31966 RPS 60743 b

1this Section, the use of a separate municipality contribution
2rate for program participants or the refund of a portion of the
3municipality contributions, as the case may be, may be
4considered.
5    (e) Computations of municipality contribution rates for
6the following calendar year shall be made prior to the
7beginning of each year, from the information available at the
8time the computations are made, and on the assumption that the
9employees in each participating municipality or participating
10instrumentality at such time will continue in service until
11the end of such calendar year at their respective rates of
12earnings at such time.
13    (f) Any municipality which is the recipient of State
14allocations representing that municipality's contributions for
15retirement annuity purposes on behalf of its employees as
16provided in Section 12-21.16 of the Illinois Public Aid Code
17shall pay the allocations so received to the Board for such
18purpose. Estimates of State allocations to be received during
19any taxable year shall be considered in the determination of
20the municipality's tax rate for that year under Section 7-171.
21If a special tax is levied under Section 7-171, none of the
22proceeds may be used to reimburse the municipality for the
23amount of State allocations received and paid to the Board.
24Any multiple-county or consolidated health department which
25receives contributions from a county under Section 11.2 of "An
26Act in relation to establishment and maintenance of county and

 

 

HB4065- 126 -LRB103 31966 RPS 60743 b

1multiple-county health departments", approved July 9, 1943, as
2amended, or distributions under Section 3 of the Department of
3Public Health Act, shall use these only for municipality
4contributions by the health department.
5    (g) Municipality contributions for the several purposes
6specified shall, for township treasurers and employees in the
7offices of the township treasurers who meet the qualifying
8conditions for coverage hereunder, be allocated among the
9several school districts and parts of school districts
10serviced by such treasurers and employees in the proportion
11which the amount of school funds of each district or part of a
12district handled by the treasurer bears to the total amount of
13all school funds handled by the treasurer.
14    From the funds subject to allocation among districts and
15parts of districts pursuant to the School Code, the trustees
16shall withhold the proportionate share of the liability for
17municipality contributions imposed upon such districts by this
18Section, in respect to such township treasurers and employees
19and remit the same to the Board.
20    The municipality contribution rate for an educational
21service center shall initially be the same rate for each year
22as the regional office of education or school district which
23serves as its administrative agent. When actuarial data become
24available, a separate rate shall be established as provided in
25subparagraph (i) of this Section.
26    The municipality contribution rate for a public agency,

 

 

HB4065- 127 -LRB103 31966 RPS 60743 b

1other than a vocational education cooperative, formed under
2the Intergovernmental Cooperation Act shall initially be the
3average rate for the municipalities which are parties to the
4intergovernmental agreement. When actuarial data become
5available, a separate rate shall be established as provided in
6subparagraph (i) of this Section.
7    (h) Each participating municipality and participating
8instrumentality shall make the contributions in the amounts
9provided in this Section in the manner prescribed from time to
10time by the Board and all such contributions shall be
11obligations of the respective participating municipalities and
12participating instrumentalities to this fund. The failure to
13deduct any employee contributions shall not relieve the
14participating municipality or participating instrumentality of
15its obligation to this fund. Delinquent payments of
16contributions due under this Section may, with interest, be
17recovered by civil action against the participating
18municipalities or participating instrumentalities.
19Municipality contributions, other than the amount necessary
20for employee contributions, for periods of service by
21employees from whose earnings no deductions were made for
22employee contributions to the fund, may be charged to the
23municipality reserve for the municipality or participating
24instrumentality.
25    (i) Contributions by participating instrumentalities shall
26be determined as provided herein except that the percentage

 

 

HB4065- 128 -LRB103 31966 RPS 60743 b

1derived under subparagraph 2 of paragraph (b) of this Section,
2and the amount payable under subparagraph 4 of paragraph (a)
3of this Section, shall be based on an amortization period of 10
4years.
5    (j) Notwithstanding the other provisions of this Section,
6the additional unfunded liability accruing as a result of
7Public Act 94-712 shall be amortized over a period of 30 years
8beginning on January 1 of the second calendar year following
9the calendar year in which Public Act 94-712 takes effect,
10except that the employer may provide for a longer amortization
11period by adopting a resolution or ordinance specifying a
1235-year or 40-year period and submitting a certified copy of
13the ordinance or resolution to the fund no later than June 1 of
14the calendar year following the calendar year in which Public
15Act 94-712 takes effect.
16    (k) If the amount of a participating employee's reported
17earnings for any of the 12-month periods used to determine the
18final rate of earnings exceeds the employee's 12-month
19reported earnings with the same employer for the previous year
20by the greater of 6% or 1.5 times the annual increase in the
21Consumer Price Index-U, as established by the United States
22Department of Labor for the preceding September, the
23participating municipality or participating instrumentality
24that paid those earnings shall pay to the Fund, in addition to
25any other contributions required under this Article, the
26present value of the increase in the pension resulting from

 

 

HB4065- 129 -LRB103 31966 RPS 60743 b

1the portion of the increase in reported earnings that is in
2excess of the greater of 6% or 1.5 times the annual increase in
3the Consumer Price Index-U, as determined by the Fund. This
4present value shall be computed on the basis of the actuarial
5assumptions and tables used in the most recent actuarial
6valuation of the Fund that is available at the time of the
7computation.
8    Whenever it determines that a payment is or may be
9required under this subsection (k), the fund shall calculate
10the amount of the payment and bill the participating
11municipality or participating instrumentality for that amount.
12The bill shall specify the calculations used to determine the
13amount due. If the participating municipality or participating
14instrumentality disputes the amount of the bill, it may,
15within 30 days after receipt of the bill, apply to the fund in
16writing for a recalculation. The application must specify in
17detail the grounds of the dispute. Upon receiving a timely
18application for recalculation, the fund shall review the
19application and, if appropriate, recalculate the amount due.
20The participating municipality and participating
21instrumentality contributions required under this subsection
22(k) may be paid in the form of a lump sum within 90 days after
23receipt of the bill. If the participating municipality and
24participating instrumentality contributions are not paid
25within 90 days after receipt of the bill, then interest will be
26charged at a rate equal to the fund's annual actuarially

 

 

HB4065- 130 -LRB103 31966 RPS 60743 b

1assumed rate of return on investment compounded annually from
2the 91st day after receipt of the bill. Payments must be
3concluded within 3 years after receipt of the bill by the
4participating municipality or participating instrumentality.
5    When assessing payment for any amount due under this
6subsection (k), the fund shall exclude earnings increases
7resulting from overload or overtime earnings.
8    When assessing payment for any amount due under this
9subsection (k), the fund shall exclude earnings increases
10resulting from payments for unused vacation time, but only for
11payments for unused vacation time made in the final 3 months of
12the final rate of earnings period.
13    When assessing payment for any amount due under this
14subsection (k), the fund shall also exclude earnings increases
15attributable to standard employment promotions resulting in
16increased responsibility and workload.
17    When assessing payment for any amount due under this
18subsection (k), the fund shall exclude reportable earnings
19increases resulting from periods where the member was paid
20through workers' compensation.
21    This subsection (k) does not apply to earnings increases
22paid to individuals under contracts or collective bargaining
23agreements entered into, amended, or renewed before January 1,
242012 (the effective date of Public Act 97-609), earnings
25increases paid to members who are 10 years or more from
26retirement eligibility, or earnings increases resulting from

 

 

HB4065- 131 -LRB103 31966 RPS 60743 b

1an increase in the number of hours required to be worked.
2    When assessing payment for any amount due under this
3subsection (k), the fund shall also exclude earnings
4attributable to personnel policies adopted before January 1,
52012 (the effective date of Public Act 97-609) as long as those
6policies are not applicable to employees who begin service on
7or after January 1, 2012 (the effective date of Public Act
897-609).
9    The change made to this Section by Public Act 100-139 is a
10clarification of existing law and is intended to be
11retroactive to January 1, 2012 (the effective date of Public
12Act 97-609).
13(Source: P.A. 102-849, eff. 5-13-22.)
 
14    (40 ILCS 5/14-152.1)
15    Sec. 14-152.1. Application and expiration of new benefit
16increases.
17    (a) As used in this Section, "new benefit increase" means
18an increase in the amount of any benefit provided under this
19Article, or an expansion of the conditions of eligibility for
20any benefit under this Article, that results from an amendment
21to this Code that takes effect after June 1, 2005 (the
22effective date of Public Act 94-4). "New benefit increase",
23however, does not include any benefit increase resulting from
24the changes made to Article 1 or this Article by Public Act
2596-37, Public Act 100-23, Public Act 100-587, Public Act

 

 

HB4065- 132 -LRB103 31966 RPS 60743 b

1100-611, Public Act 101-10, Public Act 101-610, Public Act
2102-210, Public Act 102-856, Public Act 102-956, or this
3amendatory Act of the 103rd General Assembly this amendatory
4Act of the 102nd General Assembly.
5    (b) Notwithstanding any other provision of this Code or
6any subsequent amendment to this Code, every new benefit
7increase is subject to this Section and shall be deemed to be
8granted only in conformance with and contingent upon
9compliance with the provisions of this Section.
10    (c) The Public Act enacting a new benefit increase must
11identify and provide for payment to the System of additional
12funding at least sufficient to fund the resulting annual
13increase in cost to the System as it accrues.
14    Every new benefit increase is contingent upon the General
15Assembly providing the additional funding required under this
16subsection. The Commission on Government Forecasting and
17Accountability shall analyze whether adequate additional
18funding has been provided for the new benefit increase and
19shall report its analysis to the Public Pension Division of
20the Department of Insurance. A new benefit increase created by
21a Public Act that does not include the additional funding
22required under this subsection is null and void. If the Public
23Pension Division determines that the additional funding
24provided for a new benefit increase under this subsection is
25or has become inadequate, it may so certify to the Governor and
26the State Comptroller and, in the absence of corrective action

 

 

HB4065- 133 -LRB103 31966 RPS 60743 b

1by the General Assembly, the new benefit increase shall expire
2at the end of the fiscal year in which the certification is
3made.
4    (d) Every new benefit increase shall expire 5 years after
5its effective date or on such earlier date as may be specified
6in the language enacting the new benefit increase or provided
7under subsection (c). This does not prevent the General
8Assembly from extending or re-creating a new benefit increase
9by law.
10    (e) Except as otherwise provided in the language creating
11the new benefit increase, a new benefit increase that expires
12under this Section continues to apply to persons who applied
13and qualified for the affected benefit while the new benefit
14increase was in effect and to the affected beneficiaries and
15alternate payees of such persons, but does not apply to any
16other person, including, without limitation, a person who
17continues in service after the expiration date and did not
18apply and qualify for the affected benefit while the new
19benefit increase was in effect.
20(Source: P.A. 101-10, eff. 6-5-19; 101-81, eff. 7-12-19;
21101-610, eff. 1-1-20; 102-210, eff. 7-30-21; 102-856, eff.
221-1-23; 102-956, eff. 5-27-22.)
 
23    (40 ILCS 5/15-108.1)
24    Sec. 15-108.1. Tier 1 member. "Tier 1 member": A
25participant or an annuitant of a retirement annuity under this

 

 

HB4065- 134 -LRB103 31966 RPS 60743 b

1Article, other than a participant in the self-managed plan
2under Section 15-158.2, who first became a participant or
3member before January 1, 2011 under any reciprocal retirement
4system or pension fund established under this Code, other than
5a retirement system or pension fund established under Articles
62, 3, 4, 5, 6, or 18 of this Code. "Tier 1 member" includes a
7participant or an annuitant who is a police officer or
8firefighter regardless of when the participant or annuitant
9first became a participant or member of a reciprocal
10retirement system or pension fund established under this Code,
11other than a retirement system or pension fund established
12under Articles 2, 3, 4, 5, 6, or 18 of this Code. "Tier 1
13member" includes a person who first became a participant under
14this System before January 1, 2011 and who accepts a refund and
15is subsequently reemployed by an employer on or after January
161, 2011.
17(Source: P.A. 98-92, eff. 7-16-13.)
 
18    (40 ILCS 5/15-108.2)
19    Sec. 15-108.2. Tier 2 member. "Tier 2 member": A person
20who first becomes a participant under this Article on or after
21January 1, 2011 and before the implementation date, as defined
22under subsection (a) of Section 1-161, determined by the
23Board, other than a person in the self-managed plan
24established under Section 15-158.2 or a person who makes the
25election under subsection (c) of Section 1-161, unless the

 

 

HB4065- 135 -LRB103 31966 RPS 60743 b

1person is otherwise a Tier 1 member. The changes made to this
2Section by this amendatory Act of the 98th General Assembly
3are a correction of existing law and are intended to be
4retroactive to the effective date of Public Act 96-889,
5notwithstanding the provisions of Section 1-103.1 of this
6Code. "Tier 2 member" does not include a participant or an
7annuitant who is a police officer or firefighter regardless of
8when the participant or annuitant first became a participant
9or member of a reciprocal retirement system or pension fund
10established under this Code.
11(Source: P.A. 100-23, eff. 7-6-17; 100-563, eff. 12-8-17.)
 
12    (40 ILCS 5/15-135)  (from Ch. 108 1/2, par. 15-135)
13    Sec. 15-135. Retirement annuities; conditions.
14    (a) This subsection (a) applies only to a Tier 1 member. A
15participant who retires in one of the following specified
16years with the specified amount of service is entitled to a
17retirement annuity at any age under the retirement program
18applicable to the participant:
19        35 years if retirement is in 1997 or before;
20        34 years if retirement is in 1998;
21        33 years if retirement is in 1999;
22        32 years if retirement is in 2000;
23        31 years if retirement is in 2001;
24        30 years if retirement is in 2002 or later.
25    A participant with 8 or more years of service after

 

 

HB4065- 136 -LRB103 31966 RPS 60743 b

1September 1, 1941, is entitled to a retirement annuity on or
2after attainment of age 55.
3    A participant with at least 5 but less than 8 years of
4service after September 1, 1941, is entitled to a retirement
5annuity on or after attainment of age 62.
6    A participant who has at least 25 years of service in this
7system as a police officer or firefighter is entitled to a
8retirement annuity on or after the attainment of age 50, if
9Rule 4 of Section 15-136 is applicable to the participant.
10    (a-5) A Tier 2 member is entitled to a retirement annuity
11upon written application if he or she has attained age 67 and
12has at least 10 years of service credit and is otherwise
13eligible under the requirements of this Article. A Tier 2
14member who has attained age 62 and has at least 10 years of
15service credit and is otherwise eligible under the
16requirements of this Article may elect to receive the lower
17retirement annuity provided in subsection (b-5) of Section
1815-136 of this Article.
19    (a-10) (Blank). A Tier 2 member who has at least 20 years
20of service in this system as a police officer or firefighter is
21entitled to a retirement annuity upon written application on
22or after the attainment of age 60 if Rule 4 of Section 15-136
23is applicable to the participant. The changes made to this
24subsection by this amendatory Act of the 101st General
25Assembly apply retroactively to January 1, 2011.
26    (b) The annuity payment period shall begin on the date

 

 

HB4065- 137 -LRB103 31966 RPS 60743 b

1specified by the participant or the recipient of a disability
2retirement annuity submitting a written application. For a
3participant, the date on which the annuity payment period
4begins shall not be prior to termination of employment or more
5than one year before the application is received by the board;
6however, if the participant is not an employee of an employer
7participating in this System or in a participating system as
8defined in Article 20 of this Code on April 1 of the calendar
9year next following the calendar year in which the participant
10attains the age specified under Section 401(a)(9) of the
11Internal Revenue Code of 1986, as amended, the annuity payment
12period shall begin on that date regardless of whether an
13application has been filed. For a recipient of a disability
14retirement annuity, the date on which the annuity payment
15period begins shall not be prior to the discontinuation of the
16disability retirement annuity under Section 15-153.2.
17    (c) An annuity is not payable if the amount provided under
18Section 15-136 is less than $10 per month.
19(Source: P.A. 101-610, eff. 1-1-20; 102-210, eff. 7-30-21.)
 
20    (40 ILCS 5/15-136)  (from Ch. 108 1/2, par. 15-136)
21    Sec. 15-136. Retirement annuities; amount - Amount. The
22provisions of this Section 15-136 apply only to those
23participants who are participating in the traditional benefit
24package or the portable benefit package and do not apply to
25participants who are participating in the self-managed plan.

 

 

HB4065- 138 -LRB103 31966 RPS 60743 b

1    (a) The amount of a participant's retirement annuity,
2expressed in the form of a single-life annuity, shall be
3determined by whichever of the following rules is applicable
4and provides the largest annuity:
5    Rule 1: The retirement annuity shall be 1.67% of final
6rate of earnings for each of the first 10 years of service,
71.90% for each of the next 10 years of service, 2.10% for each
8year of service in excess of 20 but not exceeding 30, and 2.30%
9for each year in excess of 30; or for persons who retire on or
10after January 1, 1998, 2.2% of the final rate of earnings for
11each year of service.
12    Rule 2: The retirement annuity shall be the sum of the
13following, determined from amounts credited to the participant
14in accordance with the actuarial tables and the effective rate
15of interest in effect at the time the retirement annuity
16begins:
17        (i) the normal annuity which can be provided on an
18    actuarially equivalent basis, by the accumulated normal
19    contributions as of the date the annuity begins;
20        (ii) an annuity from employer contributions of an
21    amount equal to that which can be provided on an
22    actuarially equivalent basis from the accumulated normal
23    contributions made by the participant under Section
24    15-113.6 and Section 15-113.7 plus 1.4 times all other
25    accumulated normal contributions made by the participant;
26    and

 

 

HB4065- 139 -LRB103 31966 RPS 60743 b

1        (iii) the annuity that can be provided on an
2    actuarially equivalent basis from the entire contribution
3    made by the participant under Section 15-113.3.
4    With respect to a police officer or firefighter who
5retires on or after August 14, 1998, the accumulated normal
6contributions taken into account under clauses (i) and (ii) of
7this Rule 2 shall include the additional normal contributions
8made by the police officer or firefighter under Section
915-157(a).
10    The amount of a retirement annuity calculated under this
11Rule 2 shall be computed solely on the basis of the
12participant's accumulated normal contributions, as specified
13in this Rule and defined in Section 15-116. Neither an
14employee or employer contribution for early retirement under
15Section 15-136.2 nor any other employer contribution shall be
16used in the calculation of the amount of a retirement annuity
17under this Rule 2.
18    This amendatory Act of the 91st General Assembly is a
19clarification of existing law and applies to every participant
20and annuitant without regard to whether status as an employee
21terminates before the effective date of this amendatory Act.
22    This Rule 2 does not apply to a person who first becomes an
23employee under this Article on or after July 1, 2005.
24    Rule 3: The retirement annuity of a participant who is
25employed at least one-half time during the period on which his
26or her final rate of earnings is based, shall be equal to the

 

 

HB4065- 140 -LRB103 31966 RPS 60743 b

1participant's years of service not to exceed 30, multiplied by
2(1) $96 if the participant's final rate of earnings is less
3than $3,500, (2) $108 if the final rate of earnings is at least
4$3,500 but less than $4,500, (3) $120 if the final rate of
5earnings is at least $4,500 but less than $5,500, (4) $132 if
6the final rate of earnings is at least $5,500 but less than
7$6,500, (5) $144 if the final rate of earnings is at least
8$6,500 but less than $7,500, (6) $156 if the final rate of
9earnings is at least $7,500 but less than $8,500, (7) $168 if
10the final rate of earnings is at least $8,500 but less than
11$9,500, and (8) $180 if the final rate of earnings is $9,500 or
12more, except that the annuity for those persons having made an
13election under Section 15-154(a-1) shall be calculated and
14payable under the portable retirement benefit program pursuant
15to the provisions of Section 15-136.4.
16    Rule 4: A participant who is at least age 50 and has 25 or
17more years of service as a police officer or firefighter, and a
18participant who is age 55 or over and has at least 20 but less
19than 25 years of service as a police officer or firefighter,
20shall be entitled to a retirement annuity of 2 1/4% of the
21final rate of earnings for each of the first 10 years of
22service as a police officer or firefighter, 2 1/2% for each of
23the next 10 years of service as a police officer or
24firefighter, and 2 3/4% for each year of service as a police
25officer or firefighter in excess of 20. The retirement annuity
26for all other service shall be computed under Rule 1. A Tier 2

 

 

HB4065- 141 -LRB103 31966 RPS 60743 b

1member is eligible for a retirement annuity calculated under
2Rule 4 only if that Tier 2 member meets the service
3requirements for that benefit calculation as prescribed under
4this Rule 4 in addition to the applicable age requirement
5under subsection (a-10) of Section 15-135.
6    For purposes of this Rule 4, a participant's service as a
7firefighter shall also include the following:
8        (i) service that is performed while the person is an
9    employee under subsection (h) of Section 15-107; and
10        (ii) in the case of an individual who was a
11    participating employee employed in the fire department of
12    the University of Illinois's Champaign-Urbana campus
13    immediately prior to the elimination of that fire
14    department and who immediately after the elimination of
15    that fire department transferred to another job with the
16    University of Illinois, service performed as an employee
17    of the University of Illinois in a position other than
18    police officer or firefighter, from the date of that
19    transfer until the employee's next termination of service
20    with the University of Illinois.
21    (b) For a Tier 1 member, the retirement annuity provided
22under Rules 1 and 3 above shall be reduced by 1/2 of 1% for
23each month the participant is under age 60 at the time of
24retirement. However, this reduction shall not apply in the
25following cases:
26        (1) For a disabled participant whose disability

 

 

HB4065- 142 -LRB103 31966 RPS 60743 b

1    benefits have been discontinued because he or she has
2    exhausted eligibility for disability benefits under clause
3    (6) of Section 15-152;
4        (2) For a participant who has at least the number of
5    years of service required to retire at any age under
6    subsection (a) of Section 15-135; or
7        (3) For that portion of a retirement annuity which has
8    been provided on account of service of the participant
9    during periods when he or she performed the duties of a
10    police officer or firefighter, if these duties were
11    performed for at least 5 years immediately preceding the
12    date the retirement annuity is to begin.
13    (b-5) The retirement annuity of a Tier 2 member who is
14retiring under Rule 1 or 3 after attaining age 62 with at least
1510 years of service credit shall be reduced by 1/2 of 1% for
16each full month that the member's age is under age 67.
17    (c) The maximum retirement annuity provided under Rules 1,
182, 4, and 5 shall be the lesser of (1) the annual limit of
19benefits as specified in Section 415 of the Internal Revenue
20Code of 1986, as such Section may be amended from time to time
21and as such benefit limits shall be adjusted by the
22Commissioner of Internal Revenue, and (2) 80% of final rate of
23earnings.
24    (d) A Tier 1 member whose status as an employee terminates
25after August 14, 1969 shall receive automatic increases in his
26or her retirement annuity as follows:

 

 

HB4065- 143 -LRB103 31966 RPS 60743 b

1    Effective January 1 immediately following the date the
2retirement annuity begins, the annuitant shall receive an
3increase in his or her monthly retirement annuity of 0.125% of
4the monthly retirement annuity provided under Rule 1, Rule 2,
5Rule 3, or Rule 4 contained in this Section, multiplied by the
6number of full months which elapsed from the date the
7retirement annuity payments began to January 1, 1972, plus
80.1667% of such annuity, multiplied by the number of full
9months which elapsed from January 1, 1972, or the date the
10retirement annuity payments began, whichever is later, to
11January 1, 1978, plus 0.25% of such annuity multiplied by the
12number of full months which elapsed from January 1, 1978, or
13the date the retirement annuity payments began, whichever is
14later, to the effective date of the increase.
15    The annuitant shall receive an increase in his or her
16monthly retirement annuity on each January 1 thereafter during
17the annuitant's life of 3% of the monthly annuity provided
18under Rule 1, Rule 2, Rule 3, or Rule 4 contained in this
19Section. The change made under this subsection by P.A. 81-970
20is effective January 1, 1980 and applies to each annuitant
21whose status as an employee terminates before or after that
22date.
23    Beginning January 1, 1990, all automatic annual increases
24payable under this Section shall be calculated as a percentage
25of the total annuity payable at the time of the increase,
26including all increases previously granted under this Article.

 

 

HB4065- 144 -LRB103 31966 RPS 60743 b

1    The change made in this subsection by P.A. 85-1008 is
2effective January 26, 1988, and is applicable without regard
3to whether status as an employee terminated before that date.
4    (d-5) A retirement annuity of a Tier 2 member shall
5receive annual increases on the January 1 occurring either on
6or after the attainment of age 67 or the first anniversary of
7the annuity start date, whichever is later. Each annual
8increase shall be calculated at 3% or one half the annual
9unadjusted percentage increase (but not less than zero) in the
10consumer price index-u for the 12 months ending with the
11September preceding each November 1, whichever is less, of the
12originally granted retirement annuity. If the annual
13unadjusted percentage change in the consumer price index-u for
14the 12 months ending with the September preceding each
15November 1 is zero or there is a decrease, then the annuity
16shall not be increased.
17    (e) If, on January 1, 1987, or the date the retirement
18annuity payment period begins, whichever is later, the sum of
19the retirement annuity provided under Rule 1 or Rule 2 of this
20Section and the automatic annual increases provided under the
21preceding subsection or Section 15-136.1, amounts to less than
22the retirement annuity which would be provided by Rule 3, the
23retirement annuity shall be increased as of January 1, 1987,
24or the date the retirement annuity payment period begins,
25whichever is later, to the amount which would be provided by
26Rule 3 of this Section. Such increased amount shall be

 

 

HB4065- 145 -LRB103 31966 RPS 60743 b

1considered as the retirement annuity in determining benefits
2provided under other Sections of this Article. This paragraph
3applies without regard to whether status as an employee
4terminated before the effective date of this amendatory Act of
51987, provided that the annuitant was employed at least
6one-half time during the period on which the final rate of
7earnings was based.
8    (f) A participant is entitled to such additional annuity
9as may be provided on an actuarially equivalent basis, by any
10accumulated additional contributions to his or her credit.
11However, the additional contributions made by the participant
12toward the automatic increases in annuity provided under this
13Section shall not be taken into account in determining the
14amount of such additional annuity.
15    (g) If, (1) by law, a function of a governmental unit, as
16defined by Section 20-107 of this Code, is transferred in
17whole or in part to an employer, and (2) a participant
18transfers employment from such governmental unit to such
19employer within 6 months after the transfer of the function,
20and (3) the sum of (A) the annuity payable to the participant
21under Rule 1, 2, or 3 of this Section (B) all proportional
22annuities payable to the participant by all other retirement
23systems covered by Article 20, and (C) the initial primary
24insurance amount to which the participant is entitled under
25the Social Security Act, is less than the retirement annuity
26which would have been payable if all of the participant's

 

 

HB4065- 146 -LRB103 31966 RPS 60743 b

1pension credits validated under Section 20-109 had been
2validated under this system, a supplemental annuity equal to
3the difference in such amounts shall be payable to the
4participant.
5    (h) On January 1, 1981, an annuitant who was receiving a
6retirement annuity on or before January 1, 1971 shall have his
7or her retirement annuity then being paid increased $1 per
8month for each year of creditable service. On January 1, 1982,
9an annuitant whose retirement annuity began on or before
10January 1, 1977, shall have his or her retirement annuity then
11being paid increased $1 per month for each year of creditable
12service.
13    (i) On January 1, 1987, any annuitant whose retirement
14annuity began on or before January 1, 1977, shall have the
15monthly retirement annuity increased by an amount equal to 8
16per year of creditable service times the number of years that
17have elapsed since the annuity began.
18    (j) The changes made to this Section by this amendatory
19Act of the 101st General Assembly apply retroactively to
20January 1, 2011.
21(Source: P.A. 101-610, eff. 1-1-20.)
 
22    (40 ILCS 5/15-198)
23    Sec. 15-198. Application and expiration of new benefit
24increases.
25    (a) As used in this Section, "new benefit increase" means

 

 

HB4065- 147 -LRB103 31966 RPS 60743 b

1an increase in the amount of any benefit provided under this
2Article, or an expansion of the conditions of eligibility for
3any benefit under this Article, that results from an amendment
4to this Code that takes effect after June 1, 2005 (the
5effective date of Public Act 94-4). "New benefit increase",
6however, does not include any benefit increase resulting from
7the changes made to Article 1 or this Article by Public Act
8100-23, Public Act 100-587, Public Act 100-769, Public Act
9101-10, Public Act 101-610, Public Act 102-16, or this
10amendatory Act of the 103rd General Assembly this amendatory
11Act of the 102nd General Assembly.
12    (b) Notwithstanding any other provision of this Code or
13any subsequent amendment to this Code, every new benefit
14increase is subject to this Section and shall be deemed to be
15granted only in conformance with and contingent upon
16compliance with the provisions of this Section.
17    (c) The Public Act enacting a new benefit increase must
18identify and provide for payment to the System of additional
19funding at least sufficient to fund the resulting annual
20increase in cost to the System as it accrues.
21    Every new benefit increase is contingent upon the General
22Assembly providing the additional funding required under this
23subsection. The Commission on Government Forecasting and
24Accountability shall analyze whether adequate additional
25funding has been provided for the new benefit increase and
26shall report its analysis to the Public Pension Division of

 

 

HB4065- 148 -LRB103 31966 RPS 60743 b

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

 

 

HB4065- 149 -LRB103 31966 RPS 60743 b

1(Source: P.A. 101-10, eff. 6-5-19; 101-81, eff. 7-12-19;
2101-610, eff. 1-1-20; 102-16, eff. 6-17-21.)
 
3    (40 ILCS 5/15-203 new)
4    Sec. 15-203. Application of this amendatory Act of the
5103rd General Assembly. It is the intent of this amendatory
6Act of the 103rd General Assembly to provide to police
7officers and firefighters who first became participants on or
8after January 1, 2011 the same level of benefits and
9eligibility criteria for benefits as those who first became
10participants before January 1, 2011. The changes made to this
11Article by this amendatory Act of the 103rd General Assembly
12that provide benefit increases for police officers and
13firefighters apply without regard to whether the participant
14was in service on or after the effective date of this
15amendatory Act of the 103rd General Assembly, notwithstanding
16the provisions of Section 1-103.1. The benefit increases are
17intended to apply prospectively and do not entitle a
18participant to retroactive benefit payments or increases. The
19changes made to this Article by this amendatory Act of the
20103rd General Assembly shall not cause or otherwise result in
21any retroactive adjustment of any employee contributions.
 
22    (40 ILCS 5/5-238 rep.)
23    (40 ILCS 5/6-229 rep.)
24    Section 15. The Illinois Pension Code is amended by

 

 

HB4065- 150 -LRB103 31966 RPS 60743 b

1repealing Sections 5-238 and 6-229.
 
2    Section 20. The Public Safety Employee Benefits Act is
3amended by adding Section 11 as follows:
 
4    (820 ILCS 320/11 new)
5    Sec. 11. Retired police officers and firefighters. A unit
6of local government that provides health insurance to police
7officers and firefighters shall maintain the health insurance
8plans of these employees after retirement and shall contribute
9toward the cost of the annuitant's coverage under the unit of
10local government's health insurance plan an amount equal to 4%
11of that cost for each full year of creditable service upon
12which the annuitant's retirement annuity is based, up to a
13maximum of 100% for an annuitant with 25 or more years of
14creditable service.
15    On or before November 15, 2023 and on or before November 15
16of each year thereafter, the unit of local government shall
17calculate and certify to the State Comptroller the health
18insurance costs of the unit of local government's active and
19retired police officers and firefighters for the next fiscal
20year for the purposes of disbursement under Section 6z-139 of
21the State Finance Act.
 
22    Section 90. The State Mandates Act is amended by adding
23Section 8.47 as follows:
 

 

 

HB4065- 151 -LRB103 31966 RPS 60743 b

1    (30 ILCS 805/8.47 new)
2    Sec. 8.47. Exempt mandate. Notwithstanding Sections 6 and
38 of this Act, no reimbursement by the State is required for
4the implementation of any mandate created by this amendatory
5Act of the 103rd General Assembly.
 
6    Section 95. No acceleration or delay. Where this Act makes
7changes in a statute that is represented in this Act by text
8that is not yet or no longer in effect (for example, a Section
9represented by multiple versions), the use of that text does
10not accelerate or delay the taking effect of (i) the changes
11made by this Act or (ii) provisions derived from any other
12Public Act.
 
13    Section 99. Effective date. This Act takes effect upon
14becoming law.

 

 

HB4065- 152 -LRB103 31966 RPS 60743 b

1 INDEX
2 Statutes amended in order of appearance
3    30 ILCS 105/5.990 new
4    30 ILCS 105/6z-139 new
5    40 ILCS 5/1-160
6    40 ILCS 5/3-111from Ch. 108 1/2, par. 3-111
7    40 ILCS 5/3-111.1from Ch. 108 1/2, par. 3-111.1
8    40 ILCS 5/3-112from Ch. 108 1/2, par. 3-112
9    40 ILCS 5/3-125from Ch. 108 1/2, par. 3-125
10    40 ILCS 5/3-148.5 new
11    40 ILCS 5/4-109from Ch. 108 1/2, par. 4-109
12    40 ILCS 5/4-109.1from Ch. 108 1/2, par. 4-109.1
13    40 ILCS 5/4-114from Ch. 108 1/2, par. 4-114
14    40 ILCS 5/4-118from Ch. 108 1/2, par. 4-118
15    40 ILCS 5/4-138.15 new
16    40 ILCS 5/5-155from Ch. 108 1/2, par. 5-155
17    40 ILCS 5/5-167.1from Ch. 108 1/2, par. 5-167.1
18    40 ILCS 5/5-168from Ch. 108 1/2, par. 5-168
19    40 ILCS 5/5-169from Ch. 108 1/2, par. 5-169
20    40 ILCS 5/5-239 new
21    40 ILCS 5/6-165from Ch. 108 1/2, par. 6-165
22    40 ILCS 5/6-210from Ch. 108 1/2, par. 6-210
23    40 ILCS 5/6-231 new
24    40 ILCS 5/7-142.1from Ch. 108 1/2, par. 7-142.1
25    40 ILCS 5/7-171from Ch. 108 1/2, par. 7-171

 

 

HB4065- 153 -LRB103 31966 RPS 60743 b

1    40 ILCS 5/7-172from Ch. 108 1/2, par. 7-172
2    40 ILCS 5/14-152.1
3    40 ILCS 5/15-108.1
4    40 ILCS 5/15-108.2
5    40 ILCS 5/15-135from Ch. 108 1/2, par. 15-135
6    40 ILCS 5/15-136from Ch. 108 1/2, par. 15-136
7    40 ILCS 5/15-198
8    40 ILCS 5/15-203 new
9    40 ILCS 5/5-238 rep.
10    40 ILCS 5/6-229 rep.
11    820 ILCS 320/11 new
12    30 ILCS 805/8.47 new