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1 | AN ACT concerning public employee benefits.
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2 | Be it enacted by the People of the State of Illinois,
| |||||||||||||||||||||||||||||||||||||||||
3 | represented in the General Assembly:
| |||||||||||||||||||||||||||||||||||||||||
4 | Section 5. The State Employees Group Insurance Act of 1971 | |||||||||||||||||||||||||||||||||||||||||
5 | is amended by changing Sections 3 and 10 as follows:
| |||||||||||||||||||||||||||||||||||||||||
6 | (5 ILCS 375/3) (from Ch. 127, par. 523)
| |||||||||||||||||||||||||||||||||||||||||
7 | Sec. 3. Definitions. Unless the context otherwise | |||||||||||||||||||||||||||||||||||||||||
8 | requires, the
following words and phrases as used in this Act | |||||||||||||||||||||||||||||||||||||||||
9 | shall have the following
meanings. The Department may define | |||||||||||||||||||||||||||||||||||||||||
10 | these and other words and phrases
separately for the purpose | |||||||||||||||||||||||||||||||||||||||||
11 | of implementing specific programs providing benefits
under | |||||||||||||||||||||||||||||||||||||||||
12 | this Act.
| |||||||||||||||||||||||||||||||||||||||||
13 | (a) "Administrative service organization" means any | |||||||||||||||||||||||||||||||||||||||||
14 | person, firm or
corporation experienced in the handling of | |||||||||||||||||||||||||||||||||||||||||
15 | claims which is
fully qualified, financially sound and capable | |||||||||||||||||||||||||||||||||||||||||
16 | of meeting the service
requirements of a contract of | |||||||||||||||||||||||||||||||||||||||||
17 | administration executed with the Department.
| |||||||||||||||||||||||||||||||||||||||||
18 | (b) "Annuitant" means (1) an employee who retires, or has | |||||||||||||||||||||||||||||||||||||||||
19 | retired,
on or after January 1, 1966 on an immediate annuity | |||||||||||||||||||||||||||||||||||||||||
20 | under the provisions
of Article Articles 2, 14 (including an | |||||||||||||||||||||||||||||||||||||||||
21 | employee who has elected to receive an alternative retirement | |||||||||||||||||||||||||||||||||||||||||
22 | cancellation payment under Section 14-108.5 of the Illinois | |||||||||||||||||||||||||||||||||||||||||
23 | Pension Code in lieu of an annuity ; an employee who, in lieu of
|
| |||||||
| |||||||
1 | receiving an annuity under that Article, has retired under the
| ||||||
2 | defined contribution plan established under Section 14-155.5
| ||||||
3 | of that Article; or an employee who meets the criteria for | ||||||
4 | retirement, but in lieu of receiving an annuity under that | ||||||
5 | Article has elected to receive an accelerated pension benefit | ||||||
6 | payment under Section 14-147.5 of that Article), or 15 | ||||||
7 | (including an employee who has retired under the optional
| ||||||
8 | retirement program established under Section 15-158.2 or who | ||||||
9 | meets the criteria for retirement but in lieu of receiving an | ||||||
10 | annuity under that Article has elected to receive an | ||||||
11 | accelerated pension benefit payment under Section 15-185.5 of | ||||||
12 | the Article), paragraph
(2), (3), or (5) of Section 16-106 | ||||||
13 | (including an employee who meets the criteria for retirement, | ||||||
14 | but in lieu of receiving an annuity under that Article has | ||||||
15 | elected to receive an accelerated pension benefit payment | ||||||
16 | under Section 16-190.5 of the Illinois Pension Code), or
| ||||||
17 | Article 18 of the Illinois Pension Code; (2) any person who was | ||||||
18 | receiving
group insurance coverage under this Act as of March | ||||||
19 | 31, 1978 by
reason of his status as an annuitant, even though | ||||||
20 | the annuity in relation
to which such coverage was provided is | ||||||
21 | a proportional annuity based on less
than the minimum period | ||||||
22 | of service required for a retirement annuity in
the system | ||||||
23 | involved; (3) any person not otherwise covered by this Act
who | ||||||
24 | has retired as a participating member under Article 2 of the | ||||||
25 | Illinois
Pension Code but is ineligible for the retirement | ||||||
26 | annuity under Section
2-119 of the Illinois Pension Code; (4) |
| |||||||
| |||||||
1 | the spouse of any person who
is receiving a retirement annuity | ||||||
2 | under Article 18 of the Illinois Pension
Code and who is | ||||||
3 | covered under a group health insurance program sponsored
by a | ||||||
4 | governmental employer other than the State of Illinois and who | ||||||
5 | has
irrevocably elected to waive his or her coverage under | ||||||
6 | this Act and to have
his or her spouse considered as the | ||||||
7 | "annuitant" under this Act and not as
a "dependent"; or (5) an | ||||||
8 | employee who retires, or has retired, from a
qualified | ||||||
9 | position, as determined according to rules promulgated by the
| ||||||
10 | Director, under a qualified local government, a qualified | ||||||
11 | rehabilitation
facility, a qualified domestic violence shelter | ||||||
12 | or service, or a qualified child advocacy center. (For | ||||||
13 | definition
of "retired employee", see (p) post).
| ||||||
14 | (b-5) (Blank).
| ||||||
15 | (b-6) (Blank).
| ||||||
16 | (b-7) (Blank).
| ||||||
17 | (c) "Carrier" means (1) an insurance company, a | ||||||
18 | corporation organized
under the Limited Health Service | ||||||
19 | Organization Act or the Voluntary Health
Services Plans Act, a | ||||||
20 | partnership, or other nongovernmental organization,
which is | ||||||
21 | authorized to do group life or group health insurance business | ||||||
22 | in
Illinois, or (2) the State of Illinois as a self-insurer.
| ||||||
23 | (d) "Compensation" means salary or wages payable on a | ||||||
24 | regular
payroll by the State Treasurer on a warrant of the | ||||||
25 | State Comptroller out
of any State, trust or federal fund, or | ||||||
26 | by the Governor of the State
through a disbursing officer of |
| |||||||
| |||||||
1 | the State out of a trust or out of
federal funds, or by any | ||||||
2 | Department out of State, trust, federal or
other funds held by | ||||||
3 | the State Treasurer or the Department, to any person
for | ||||||
4 | personal services currently performed, and ordinary or | ||||||
5 | accidental
disability benefits under Articles 2, 14, or 15 | ||||||
6 | (including ordinary or accidental
disability benefits under | ||||||
7 | the optional retirement program established under
Section | ||||||
8 | 15-158.2), paragraph (2), (3), or (5) of
Section 16-106, or | ||||||
9 | Article 18 of the Illinois Pension Code, for disability
| ||||||
10 | incurred after January 1, 1966, or benefits payable under the | ||||||
11 | Workers'
Compensation or Occupational Diseases Act or benefits | ||||||
12 | payable under a sick
pay plan established in accordance with | ||||||
13 | Section 36 of the State Finance Act.
"Compensation" also means | ||||||
14 | salary or wages paid to an employee of any
qualified local | ||||||
15 | government, qualified rehabilitation facility,
qualified | ||||||
16 | domestic violence shelter or service, or qualified child | ||||||
17 | advocacy center.
| ||||||
18 | (e) "Commission" means the State Employees Group Insurance | ||||||
19 | Advisory
Commission authorized by this Act. Commencing July 1, | ||||||
20 | 1984, "Commission"
as used in this Act means the Commission on | ||||||
21 | Government Forecasting and Accountability as
established by | ||||||
22 | the Legislative Commission Reorganization Act of 1984.
| ||||||
23 | (f) "Contributory", when referred to as contributory | ||||||
24 | coverage, shall
mean optional coverages or benefits elected by | ||||||
25 | the member toward the cost of
which such member makes | ||||||
26 | contribution, or which are funded in whole or in part
through |
| |||||||
| |||||||
1 | the acceptance of a reduction in earnings or the foregoing of | ||||||
2 | an
increase in earnings by an employee, as distinguished from | ||||||
3 | noncontributory
coverage or benefits which are paid entirely | ||||||
4 | by the State of Illinois
without reduction of the member's | ||||||
5 | salary.
| ||||||
6 | (g) "Department" means any department, institution, board,
| ||||||
7 | commission, officer, court or any agency of the State | ||||||
8 | government
receiving appropriations and having power to | ||||||
9 | certify payrolls to the
Comptroller authorizing payments of | ||||||
10 | salary and wages against such
appropriations as are made by | ||||||
11 | the General Assembly from any State fund, or
against trust | ||||||
12 | funds held by the State Treasurer and includes boards of
| ||||||
13 | trustees of the retirement systems created by Articles 2, 14, | ||||||
14 | 15, 16, and
18 of the Illinois Pension Code. "Department" also | ||||||
15 | includes the Illinois
Comprehensive Health Insurance Board, | ||||||
16 | the Board of Examiners established under
the Illinois Public | ||||||
17 | Accounting Act, and the Illinois Finance Authority.
| ||||||
18 | (h) "Dependent", when the term is used in the context of | ||||||
19 | the health
and life plan, means a member's spouse and any child | ||||||
20 | (1) from
birth to age 26 including an adopted child, a child | ||||||
21 | who lives with the
member from the time of the placement for | ||||||
22 | adoption until entry
of an order of adoption, a stepchild or | ||||||
23 | adjudicated child, or a child who lives with the member
if such | ||||||
24 | member is a court appointed guardian of the child or (2)
age 19 | ||||||
25 | or over who has a mental or physical disability from a cause | ||||||
26 | originating prior to the age of 19 (age 26 if enrolled as an |
| |||||||
| |||||||
1 | adult child dependent). For
the health plan only, the term | ||||||
2 | "dependent" also includes (1) any person
enrolled prior to the | ||||||
3 | effective date of this Section who is dependent upon
the | ||||||
4 | member to the extent that the member may claim such person as a
| ||||||
5 | dependent for income tax deduction purposes and (2) any person | ||||||
6 | who
has received after June 30, 2000 an organ transplant and | ||||||
7 | who is financially
dependent upon the member and eligible to | ||||||
8 | be claimed as a dependent for income
tax purposes. A member | ||||||
9 | requesting to cover any dependent must provide documentation | ||||||
10 | as requested by the Department of Central Management Services | ||||||
11 | and file with the Department any and all forms required by the | ||||||
12 | Department.
| ||||||
13 | (i) "Director" means the Director of the Illinois | ||||||
14 | Department of Central
Management Services.
| ||||||
15 | (j) "Eligibility period" means the period of time a member | ||||||
16 | has to
elect enrollment in programs or to select benefits | ||||||
17 | without regard to
age, sex or health.
| ||||||
18 | (k) "Employee" means and includes each officer or employee | ||||||
19 | in the
service of a department who (1) receives his | ||||||
20 | compensation for
service rendered to the department on a | ||||||
21 | warrant issued pursuant to a payroll
certified by a department | ||||||
22 | or on a warrant or check issued and drawn by a
department upon | ||||||
23 | a trust, federal or other fund or on a warrant issued
pursuant | ||||||
24 | to a payroll certified by an elected or duly appointed officer
| ||||||
25 | of the State or who receives payment of the performance of | ||||||
26 | personal
services on a warrant issued pursuant to a payroll |
| |||||||
| |||||||
1 | certified by a
Department and drawn by the Comptroller upon | ||||||
2 | the State Treasurer against
appropriations made by the General | ||||||
3 | Assembly from any fund or against
trust funds held by the State | ||||||
4 | Treasurer, and (2) is employed full-time or
part-time in a | ||||||
5 | position normally requiring actual performance of duty
during | ||||||
6 | not less than 1/2 of a normal work period, as established by | ||||||
7 | the
Director in cooperation with each department, except that | ||||||
8 | persons elected
by popular vote will be considered employees | ||||||
9 | during the entire
term for which they are elected regardless | ||||||
10 | of hours devoted to the
service of the State, and (3) except | ||||||
11 | that "employee" does not include any
person who is not | ||||||
12 | eligible by reason of such person's employment to
participate | ||||||
13 | in one of the State retirement systems under Articles 2, 14, 15
| ||||||
14 | (either the regular Article 15 system or the optional | ||||||
15 | retirement program
established under Section 15-158.2), or 18, | ||||||
16 | or under paragraph (2), (3), or
(5) of Section 16-106, of the | ||||||
17 | Illinois
Pension Code, but such term does include persons who | ||||||
18 | are employed during
the 6-month qualifying period under | ||||||
19 | Article 14 of the Illinois Pension
Code. Such term also | ||||||
20 | includes any person who (1) after January 1, 1966,
is | ||||||
21 | receiving ordinary or accidental disability benefits under | ||||||
22 | Articles
2, 14, or 15 (including ordinary or accidental | ||||||
23 | disability benefits under the
optional retirement program | ||||||
24 | established under Section 15-158.2), paragraph
(2), (3), or | ||||||
25 | (5) of Section 16-106, or Article 18 of the
Illinois Pension | ||||||
26 | Code, for disability incurred after January 1, 1966, (2)
|
| |||||||
| |||||||
1 | receives total permanent or total temporary disability under | ||||||
2 | the Workers'
Compensation Act or Occupational Disease Act as a | ||||||
3 | result of injuries
sustained or illness contracted in the | ||||||
4 | course of employment with the
State of Illinois, or (3) is not | ||||||
5 | otherwise covered under this Act and has
retired as a | ||||||
6 | participating member under Article 2 of the Illinois Pension
| ||||||
7 | Code but is ineligible for the retirement annuity under | ||||||
8 | Section 2-119 of
the Illinois Pension Code. However, a person | ||||||
9 | who satisfies the criteria
of the foregoing definition of | ||||||
10 | "employee" except that such person is made
ineligible to | ||||||
11 | participate in the State Universities Retirement System by
| ||||||
12 | clause (4) of subsection (a) of Section 15-107 of the Illinois | ||||||
13 | Pension
Code is also an "employee" for the purposes of this | ||||||
14 | Act. "Employee" also
includes any person receiving or eligible | ||||||
15 | for benefits under a sick pay
plan established in accordance | ||||||
16 | with Section 36 of the State Finance Act.
"Employee" also | ||||||
17 | includes (i) each officer or employee in the service of a
| ||||||
18 | qualified local government, including persons appointed as | ||||||
19 | trustees of
sanitary districts regardless of hours devoted to | ||||||
20 | the service of the
sanitary district, (ii) each employee in | ||||||
21 | the service of a qualified
rehabilitation facility, (iii) each | ||||||
22 | full-time employee in the service of a
qualified domestic | ||||||
23 | violence shelter or service, and (iv) each full-time employee | ||||||
24 | in the service of a qualified child advocacy center, as | ||||||
25 | determined according to
rules promulgated by the Director.
| ||||||
26 | (l) "Member" means an employee, annuitant, retired |
| |||||||
| |||||||
1 | employee, or survivor. In the case of an annuitant or retired | ||||||
2 | employee who first becomes an annuitant or retired employee on | ||||||
3 | or after January 13, 2012 (the effective date of Public Act | ||||||
4 | 97-668), the individual must meet the minimum vesting | ||||||
5 | requirements of the applicable retirement system in order to | ||||||
6 | be eligible for group insurance benefits under that system. In | ||||||
7 | the case of a survivor who is not entitled to occupational | ||||||
8 | death benefits pursuant to an applicable retirement system or | ||||||
9 | death benefits pursuant to the Illinois Workers' Compensation | ||||||
10 | Act, and who first becomes a survivor on or after January 13, | ||||||
11 | 2012 (the effective date of Public Act 97-668), the deceased | ||||||
12 | employee, annuitant, or retired employee upon whom the annuity | ||||||
13 | is based must have been eligible to participate in the group | ||||||
14 | insurance system under the applicable retirement system in | ||||||
15 | order for the survivor to be eligible for group insurance | ||||||
16 | benefits under that system. | ||||||
17 | In the case of a survivor who is entitled to occupational | ||||||
18 | death benefits pursuant to the deceased employee's applicable | ||||||
19 | retirement system or death benefits pursuant to the Illinois | ||||||
20 | Workers' Compensation Act, and first becomes a survivor on or | ||||||
21 | after January 1, 2022, the survivor is eligible for group | ||||||
22 | health insurance benefits regardless of the deceased | ||||||
23 | employee's minimum vesting requirements under the applicable | ||||||
24 | retirement system, with a State contribution rate of 100%, | ||||||
25 | until an unmarried child dependent reaches the age of 18, or | ||||||
26 | the age of 22 if the dependent child is a full-time student, or |
| |||||||
| |||||||
1 | until the adult survivor becomes eligible for benefits under | ||||||
2 | the federal Medicare health insurance program (Title XVIII of | ||||||
3 | the Social Security Act, as added by Public Law 89-97). In the | ||||||
4 | case of a survivor currently receiving occupational death | ||||||
5 | benefits pursuant to the deceased employee's applicable | ||||||
6 | retirement system or has received death benefits pursuant to | ||||||
7 | the Illinois Workers' Compensation Act, who first became a | ||||||
8 | survivor prior to January 1, 2022, the survivor is eligible | ||||||
9 | for group health insurance benefits regardless of the deceased | ||||||
10 | employee's minimum vesting requirements under the applicable | ||||||
11 | retirement system, with a State contribution rate of 100%, | ||||||
12 | until an unmarried child dependent reaches the age of 18, or | ||||||
13 | the age of 22 if the dependent child is a full-time student, or | ||||||
14 | until the adult survivor becomes eligible for benefits under | ||||||
15 | the federal Medicare health insurance program (Title XVIII of | ||||||
16 | the Social Security Act, as added by Public Law 89-97). The | ||||||
17 | changes made by this amendatory Act of the 102nd General | ||||||
18 | Assembly with respect to survivors who first became survivors | ||||||
19 | prior to January 1, 2022 shall apply upon request of the | ||||||
20 | survivor on or after the effective date of this amendatory Act | ||||||
21 | of the 102nd General Assembly.
| ||||||
22 | (m) "Optional coverages or benefits" means those coverages | ||||||
23 | or
benefits available to the member on his or her voluntary | ||||||
24 | election, and at
his or her own expense.
| ||||||
25 | (n) "Program" means the group life insurance, health | ||||||
26 | benefits and other
employee benefits designed and contracted |
| |||||||
| |||||||
1 | for by the Director under this Act.
| ||||||
2 | (o) "Health plan" means a health benefits
program offered
| ||||||
3 | by the State of Illinois for persons eligible for the plan.
| ||||||
4 | (p) "Retired employee" means any person who would be an | ||||||
5 | annuitant as
that term is defined herein but for the fact that | ||||||
6 | such person retired prior to
January 1, 1966. Such term also | ||||||
7 | includes any person formerly employed by
the University of | ||||||
8 | Illinois in the Cooperative Extension Service who would
be an | ||||||
9 | annuitant but for the fact that such person was made | ||||||
10 | ineligible to
participate in the State Universities Retirement | ||||||
11 | System by clause (4) of
subsection (a) of Section 15-107 of the | ||||||
12 | Illinois
Pension Code.
| ||||||
13 | (q) "Survivor" means a person receiving an annuity as a | ||||||
14 | survivor of an
employee or of an annuitant. "Survivor" also | ||||||
15 | includes: (1) the surviving
dependent of a person who | ||||||
16 | satisfies the definition of "employee" except that
such person | ||||||
17 | is made ineligible to participate in the State Universities
| ||||||
18 | Retirement System by clause (4) of subsection (a)
of Section | ||||||
19 | 15-107 of the Illinois Pension Code; (2) the surviving
| ||||||
20 | dependent of any person formerly employed by the University of | ||||||
21 | Illinois in
the Cooperative Extension Service who would be an | ||||||
22 | annuitant except for the
fact that such person was made | ||||||
23 | ineligible to participate in the State
Universities Retirement | ||||||
24 | System by clause (4) of subsection (a) of Section
15-107 of the | ||||||
25 | Illinois Pension Code; (3) the surviving dependent of a person | ||||||
26 | who was an annuitant under this Act by virtue of receiving an |
| |||||||
| |||||||
1 | alternative retirement cancellation payment under Section | ||||||
2 | 14-108.5 of the Illinois Pension Code; and (4) a person who | ||||||
3 | would be receiving an annuity as a survivor of an annuitant | ||||||
4 | except that the annuitant elected on or after June 4, 2018 to | ||||||
5 | receive an accelerated pension benefit payment under Section | ||||||
6 | 14-147.5, 15-185.5, or 16-190.5 of the Illinois Pension Code | ||||||
7 | in lieu of receiving an annuity.
| ||||||
8 | (q-2) "SERS" means the State Employees' Retirement System | ||||||
9 | of Illinois, created under Article 14 of the Illinois Pension | ||||||
10 | Code.
| ||||||
11 | (q-3) "SURS" means the State Universities Retirement | ||||||
12 | System, created under Article 15 of the Illinois Pension Code.
| ||||||
13 | (q-4) "TRS" means the Teachers' Retirement System of the | ||||||
14 | State of Illinois, created under Article 16 of the Illinois | ||||||
15 | Pension Code.
| ||||||
16 | (q-5) (Blank).
| ||||||
17 | (q-6) (Blank).
| ||||||
18 | (q-7) (Blank).
| ||||||
19 | (r) "Medical services" means the services provided within | ||||||
20 | the scope
of their licenses by practitioners in all categories | ||||||
21 | licensed under the
Medical Practice Act of 1987.
| ||||||
22 | (s) "Unit of local government" means any county, | ||||||
23 | municipality,
township, school district (including a | ||||||
24 | combination of school districts under
the Intergovernmental | ||||||
25 | Cooperation Act), special district or other unit,
designated | ||||||
26 | as a
unit of local government by law, which exercises limited |
| |||||||
| |||||||
1 | governmental
powers or powers in respect to limited | ||||||
2 | governmental subjects, any
not-for-profit association with a | ||||||
3 | membership that primarily includes
townships and township | ||||||
4 | officials, that has duties that include provision of
research | ||||||
5 | service, dissemination of information, and other acts for the
| ||||||
6 | purpose of improving township government, and that is funded | ||||||
7 | wholly or
partly in accordance with Section 85-15 of the | ||||||
8 | Township Code; any
not-for-profit corporation or association, | ||||||
9 | with a membership consisting
primarily of municipalities, that | ||||||
10 | operates its own utility system, and
provides research, | ||||||
11 | training, dissemination of information, or other acts to
| ||||||
12 | promote cooperation between and among municipalities that | ||||||
13 | provide utility
services and for the advancement of the goals | ||||||
14 | and purposes of its
membership;
the Southern Illinois | ||||||
15 | Collegiate Common Market, which is a consortium of higher
| ||||||
16 | education institutions in Southern Illinois; the Illinois | ||||||
17 | Association of
Park Districts; and any hospital provider that | ||||||
18 | is owned by a county that has 100 or fewer hospital beds and | ||||||
19 | has not already joined the program. "Qualified
local | ||||||
20 | government" means a unit of local government approved by the | ||||||
21 | Director and
participating in a program created under | ||||||
22 | subsection (i) of Section 10 of this
Act.
| ||||||
23 | (t) "Qualified rehabilitation facility" means any | ||||||
24 | not-for-profit
organization that is accredited by the | ||||||
25 | Commission on Accreditation of
Rehabilitation Facilities or | ||||||
26 | certified by the Department
of Human Services (as successor to |
| |||||||
| |||||||
1 | the Department of Mental Health
and Developmental | ||||||
2 | Disabilities) to provide services to persons with
disabilities
| ||||||
3 | and which receives funds from the State of Illinois for | ||||||
4 | providing those
services, approved by the Director and | ||||||
5 | participating in a program created
under subsection (j) of | ||||||
6 | Section 10 of this Act.
| ||||||
7 | (u) "Qualified domestic violence shelter or service" means | ||||||
8 | any Illinois
domestic violence shelter or service and its | ||||||
9 | administrative offices funded
by the Department of Human | ||||||
10 | Services (as successor to the Illinois Department of
Public | ||||||
11 | Aid),
approved by the Director and
participating in a program | ||||||
12 | created under subsection (k) of Section 10.
| ||||||
13 | (v) "TRS benefit recipient" means a person who:
| ||||||
14 | (1) is not a "member" as defined in this Section; and
| ||||||
15 | (2) is receiving a monthly benefit or retirement | ||||||
16 | annuity
under Article 16 of the Illinois Pension Code or | ||||||
17 | would be receiving such monthly benefit or retirement | ||||||
18 | annuity except that the benefit recipient elected on or | ||||||
19 | after June 4, 2018 to receive an accelerated pension | ||||||
20 | benefit payment under Section 16-190.5 of the Illinois | ||||||
21 | Pension Code in lieu of receiving an annuity; and
| ||||||
22 | (3) either (i) has at least 8 years of creditable | ||||||
23 | service under Article
16 of the Illinois Pension Code, or | ||||||
24 | (ii) was enrolled in the health insurance
program offered | ||||||
25 | under that Article on January 1, 1996, or (iii) is the | ||||||
26 | survivor
of a benefit recipient who had at least 8
years of |
| |||||||
| |||||||
1 | creditable service under Article 16 of the Illinois | ||||||
2 | Pension Code or
was enrolled in the health insurance | ||||||
3 | program offered under that Article on June 21, 1995 (the | ||||||
4 | effective date of Public Act 89-25), or (iv) is a | ||||||
5 | recipient or
survivor of a recipient of a disability | ||||||
6 | benefit under Article 16 of the
Illinois Pension Code.
| ||||||
7 | (w) "TRS dependent beneficiary" means a person who:
| ||||||
8 | (1) is not a "member" or "dependent" as defined in | ||||||
9 | this Section; and
| ||||||
10 | (2) is a TRS benefit recipient's: (A) spouse, (B) | ||||||
11 | dependent parent who
is receiving at least half of his or | ||||||
12 | her support from the TRS benefit
recipient, or (C) | ||||||
13 | natural, step, adjudicated, or adopted child who is (i) | ||||||
14 | under age 26, (ii) was, on January 1, 1996, participating | ||||||
15 | as a dependent
beneficiary in the health insurance program | ||||||
16 | offered under Article 16 of the
Illinois Pension Code, or | ||||||
17 | (iii) age 19 or over who has a mental or physical | ||||||
18 | disability from a cause originating prior to the age of 19 | ||||||
19 | (age 26 if enrolled as an adult child).
| ||||||
20 | "TRS dependent beneficiary" does not include, as indicated | ||||||
21 | under paragraph (2) of this subsection (w), a dependent of the | ||||||
22 | survivor of a TRS benefit recipient who first becomes a | ||||||
23 | dependent of a survivor of a TRS benefit recipient on or after | ||||||
24 | January 13, 2012 (the effective date of Public Act 97-668) | ||||||
25 | unless that dependent would have been eligible for coverage as | ||||||
26 | a dependent of the deceased TRS benefit recipient upon whom |
| |||||||
| |||||||
1 | the survivor benefit is based. | ||||||
2 | (x) "Military leave" refers to individuals in basic
| ||||||
3 | training for reserves, special/advanced training, annual | ||||||
4 | training, emergency
call up, activation by the President of | ||||||
5 | the United States, or any other training or duty in service to | ||||||
6 | the United States Armed Forces.
| ||||||
7 | (y) (Blank).
| ||||||
8 | (z) "Community college benefit recipient" means a person | ||||||
9 | who:
| ||||||
10 | (1) is not a "member" as defined in this Section; and
| ||||||
11 | (2) is receiving a monthly survivor's annuity or | ||||||
12 | retirement annuity
under Article 15 of the Illinois | ||||||
13 | Pension Code or would be receiving such monthly survivor's | ||||||
14 | annuity or retirement annuity except that the benefit | ||||||
15 | recipient elected on or after June 4, 2018 to receive an | ||||||
16 | accelerated pension benefit payment under Section 15-185.5 | ||||||
17 | of the Illinois Pension Code in lieu of receiving an | ||||||
18 | annuity; and
| ||||||
19 | (3) either (i) was a full-time employee of a community | ||||||
20 | college district or
an association of community college | ||||||
21 | boards created under the Public Community
College Act | ||||||
22 | (other than an employee whose last employer under Article | ||||||
23 | 15 of the
Illinois Pension Code was a community college | ||||||
24 | district subject to Article VII
of the Public Community | ||||||
25 | College Act) and was eligible to participate in a group
| ||||||
26 | health benefit plan as an employee during the time of |
| |||||||
| |||||||
1 | employment with a
community college district (other than a | ||||||
2 | community college district subject to
Article VII of the | ||||||
3 | Public Community College Act) or an association of | ||||||
4 | community
college boards, or (ii) is the survivor of a | ||||||
5 | person described in item (i).
| ||||||
6 | (aa) "Community college dependent beneficiary" means a | ||||||
7 | person who:
| ||||||
8 | (1) is not a "member" or "dependent" as defined in | ||||||
9 | this Section; and
| ||||||
10 | (2) is a community college benefit recipient's: (A) | ||||||
11 | spouse, (B) dependent
parent who is receiving at least | ||||||
12 | half of his or her support from the community
college | ||||||
13 | benefit recipient, or (C) natural, step, adjudicated, or | ||||||
14 | adopted child who is (i)
under age 26, or (ii)
age 19 or | ||||||
15 | over and has a mental or physical disability from a cause | ||||||
16 | originating prior to the age of 19 (age 26 if enrolled as | ||||||
17 | an adult child).
| ||||||
18 | "Community college dependent beneficiary" does not | ||||||
19 | include, as indicated under paragraph (2) of this subsection | ||||||
20 | (aa), a dependent of the survivor of a community college | ||||||
21 | benefit recipient who first becomes a dependent of a survivor | ||||||
22 | of a community college benefit recipient on or after January | ||||||
23 | 13, 2012 (the effective date of Public Act 97-668) unless that | ||||||
24 | dependent would have been eligible for coverage as a dependent | ||||||
25 | of the deceased community college benefit recipient upon whom | ||||||
26 | the survivor annuity is based. |
| |||||||
| |||||||
1 | (bb) "Qualified child advocacy center" means any Illinois | ||||||
2 | child advocacy center and its administrative offices funded by | ||||||
3 | the Department of Children and Family Services, as defined by | ||||||
4 | the Children's Advocacy Center Act (55 ILCS 80/), approved by | ||||||
5 | the Director and participating in a program created under | ||||||
6 | subsection (n) of Section 10.
| ||||||
7 | (cc) "Placement for adoption" means the assumption and | ||||||
8 | retention by a member of a legal obligation for total or | ||||||
9 | partial support of a child in anticipation of adoption of the | ||||||
10 | child. The child's placement with the member terminates upon | ||||||
11 | the termination of such legal obligation. | ||||||
12 | (Source: P.A. 101-242, eff. 8-9-19; 102-558, eff. 8-20-21; | ||||||
13 | 102-714, eff. 4-29-22; 102-813, eff 5-13-22.)
| ||||||
14 | (5 ILCS 375/10) (from Ch. 127, par. 530)
| ||||||
15 | Sec. 10. Contributions by the State and members.
| ||||||
16 | (a) The State shall pay the cost of basic non-contributory | ||||||
17 | group life
insurance and, subject to member paid contributions | ||||||
18 | set by the Department or
required by this Section and except as | ||||||
19 | provided in this Section, the basic program of group health | ||||||
20 | benefits on each
eligible member, except a member, not | ||||||
21 | otherwise
covered by this Act, who has retired as a | ||||||
22 | participating member under Article 2
of the Illinois Pension | ||||||
23 | Code but is ineligible for the retirement annuity under
| ||||||
24 | Section 2-119 of the Illinois Pension Code, and part of each | ||||||
25 | eligible member's
and retired member's premiums for health |
| |||||||
| |||||||
1 | insurance coverage for enrolled
dependents as provided by | ||||||
2 | Section 9. The State shall pay the cost of the basic
program of | ||||||
3 | group health benefits only after benefits are reduced by the | ||||||
4 | amount
of benefits covered by Medicare for all members and | ||||||
5 | dependents
who are eligible for benefits under Social Security | ||||||
6 | or
the Railroad Retirement system or who had sufficient | ||||||
7 | Medicare-covered
government employment, except that such | ||||||
8 | reduction in benefits shall apply only
to those members and | ||||||
9 | dependents who (1) first become eligible
for such Medicare | ||||||
10 | coverage on or after July 1, 1992; or (2) are
| ||||||
11 | Medicare-eligible members or dependents of a local government | ||||||
12 | unit which began
participation in the program on or after July | ||||||
13 | 1, 1992; or (3) remain eligible
for, but no longer receive | ||||||
14 | Medicare coverage which they had been receiving on
or after | ||||||
15 | July 1, 1992. The Department may determine the aggregate level | ||||||
16 | of the
State's contribution on the basis of actual cost of | ||||||
17 | medical services adjusted
for age, sex or geographic or other | ||||||
18 | demographic characteristics which affect
the costs of such | ||||||
19 | programs.
| ||||||
20 | The cost of participation in the basic program of group | ||||||
21 | health benefits
for the dependent or survivor of a living or | ||||||
22 | deceased retired employee who was
formerly employed by the | ||||||
23 | University of Illinois in the Cooperative Extension
Service | ||||||
24 | and would be an annuitant but for the fact that he or she was | ||||||
25 | made
ineligible to participate in the State Universities | ||||||
26 | Retirement System by clause
(4) of subsection (a) of Section |
| |||||||
| |||||||
1 | 15-107 of the Illinois Pension Code shall not
be greater than | ||||||
2 | the cost of participation that would otherwise apply to that
| ||||||
3 | dependent or survivor if he or she were the dependent or | ||||||
4 | survivor of an
annuitant under the State Universities | ||||||
5 | Retirement System.
| ||||||
6 | (a-1) (Blank).
| ||||||
7 | (a-2) (Blank).
| ||||||
8 | (a-3) (Blank).
| ||||||
9 | (a-4) (Blank).
| ||||||
10 | (a-5) (Blank).
| ||||||
11 | (a-6) (Blank).
| ||||||
12 | (a-7) (Blank).
| ||||||
13 | (a-8) Any annuitant, survivor, or retired employee may | ||||||
14 | waive or terminate coverage in
the program of group health | ||||||
15 | benefits. Any such annuitant, survivor, or retired employee
| ||||||
16 | who has waived or terminated coverage may enroll or re-enroll | ||||||
17 | in the
program of group health benefits only during the annual | ||||||
18 | benefit choice period,
as determined by the Director; except | ||||||
19 | that in the event of termination of
coverage due to nonpayment | ||||||
20 | of premiums, the annuitant, survivor, or retired employee
may | ||||||
21 | not re-enroll in the program.
| ||||||
22 | (a-8.5) Beginning on the effective date of this amendatory | ||||||
23 | Act of the 97th General Assembly, the Director of Central | ||||||
24 | Management Services shall, on an annual basis, determine the | ||||||
25 | amount that the State shall contribute toward the basic | ||||||
26 | program of group health benefits on behalf of annuitants |
| |||||||
| |||||||
1 | (including individuals who (i) participated in the General | ||||||
2 | Assembly Retirement System, the State Employees' Retirement | ||||||
3 | System of Illinois, the State Universities Retirement System, | ||||||
4 | the Teachers' Retirement System of the State of Illinois, or | ||||||
5 | the Judges Retirement System of Illinois and (ii) qualify as | ||||||
6 | annuitants under subsection (b) of Section 3 of this Act), | ||||||
7 | survivors (including individuals who (i) receive an annuity as | ||||||
8 | a survivor of an individual who participated in the General | ||||||
9 | Assembly Retirement System, the State Employees' Retirement | ||||||
10 | System of Illinois, the State Universities Retirement System, | ||||||
11 | the Teachers' Retirement System of the State of Illinois, or | ||||||
12 | the Judges Retirement System of Illinois and (ii) qualify as | ||||||
13 | survivors under subsection (q) of Section 3 of this Act), and | ||||||
14 | retired employees (as defined in subsection (p) of Section 3 | ||||||
15 | of this Act). The remainder of the cost of coverage for each | ||||||
16 | annuitant, survivor, or retired employee, as determined by the | ||||||
17 | Director of Central Management Services, shall be the | ||||||
18 | responsibility of that annuitant, survivor, or retired | ||||||
19 | employee. | ||||||
20 | Contributions required of annuitants, survivors, and | ||||||
21 | retired employees shall be the same for all retirement systems | ||||||
22 | and shall also be based on whether an individual has made an | ||||||
23 | election under Section 15-135.1 of the Illinois Pension Code. | ||||||
24 | Contributions may be based on annuitants', survivors', or | ||||||
25 | retired employees' Medicare eligibility, but may not be based | ||||||
26 | on Social Security eligibility. |
| |||||||
| |||||||
1 | (a-9) No later than May 1 of each calendar year, the | ||||||
2 | Director
of Central Management Services shall certify in | ||||||
3 | writing to the Executive
Secretary of the State Employees' | ||||||
4 | Retirement System of Illinois the amounts
of the Medicare | ||||||
5 | supplement health care premiums and the amounts of the
health | ||||||
6 | care premiums for all other retirees who are not Medicare | ||||||
7 | eligible.
| ||||||
8 | A separate calculation of the premiums based upon the | ||||||
9 | actual cost of each
health care plan shall be so certified.
| ||||||
10 | The Director of Central Management Services shall provide | ||||||
11 | to the
Executive Secretary of the State Employees' Retirement | ||||||
12 | System of
Illinois such information, statistics, and other | ||||||
13 | data as he or she
may require to review the premium amounts | ||||||
14 | certified by the Director
of Central Management Services.
| ||||||
15 | The Department of Central Management Services, or any | ||||||
16 | successor agency designated to procure healthcare contracts | ||||||
17 | pursuant to this Act, is authorized to establish funds, | ||||||
18 | separate accounts provided by any bank or banks as defined by | ||||||
19 | the Illinois Banking Act, or separate accounts provided by any | ||||||
20 | savings and loan association or associations as defined by the | ||||||
21 | Illinois Savings and Loan Act of 1985 to be held by the | ||||||
22 | Director, outside the State treasury, for the purpose of | ||||||
23 | receiving the transfer of moneys from the Local Government | ||||||
24 | Health Insurance Reserve Fund. The Department may promulgate | ||||||
25 | rules further defining the methodology for the transfers. Any | ||||||
26 | interest earned by moneys in the funds or accounts shall inure |
| |||||||
| |||||||
1 | to the Local Government Health Insurance Reserve Fund. The | ||||||
2 | transferred moneys, and interest accrued thereon, shall be | ||||||
3 | used exclusively for transfers to administrative service | ||||||
4 | organizations or their financial institutions for payments of | ||||||
5 | claims to claimants and providers under the self-insurance | ||||||
6 | health plan. The transferred moneys, and interest accrued | ||||||
7 | thereon, shall not be used for any other purpose including, | ||||||
8 | but not limited to, reimbursement of administration fees due | ||||||
9 | the administrative service organization pursuant to its | ||||||
10 | contract or contracts with the Department.
| ||||||
11 | (a-10) To the extent that participation, benefits, or | ||||||
12 | premiums under this Act are based on a person's service credit | ||||||
13 | under an Article of the Illinois Pension Code, service credit | ||||||
14 | terminated in exchange for an accelerated pension benefit | ||||||
15 | payment under Section 14-147.5, 15-185.5, or 16-190.5 of that | ||||||
16 | Code shall be included in determining a person's service | ||||||
17 | credit for the purposes of this Act. | ||||||
18 | (a-15) For purposes of determining State contributions | ||||||
19 | under this Section, service established under a defined | ||||||
20 | contribution plan under Section 14-155.5 of the Illinois | ||||||
21 | Pension Code shall be included in determining an employee's | ||||||
22 | creditable service. Any credit terminated as part of a | ||||||
23 | transfer of contributions to a defined contribution plan under | ||||||
24 | Section 14-155.5 of the Illinois Pension Code shall also be | ||||||
25 | included in determining an employee's creditable service. | ||||||
26 | (b) State employees who become eligible for this program |
| |||||||
| |||||||
1 | on or after January
1, 1980 in positions normally requiring | ||||||
2 | actual performance of duty not less
than 1/2 of a normal work | ||||||
3 | period but not equal to that of a normal work period,
shall be | ||||||
4 | given the option of participating in the available program. If | ||||||
5 | the
employee elects coverage, the State shall contribute on | ||||||
6 | behalf of such employee
to the cost of the employee's benefit | ||||||
7 | and any applicable dependent supplement,
that sum which bears | ||||||
8 | the same percentage as that percentage of time the
employee | ||||||
9 | regularly works when compared to normal work period.
| ||||||
10 | (c) The basic non-contributory coverage from the basic | ||||||
11 | program of
group health benefits shall be continued for each | ||||||
12 | employee not in pay status or
on active service by reason of | ||||||
13 | (1) leave of absence due to illness or injury,
(2) authorized | ||||||
14 | educational leave of absence or sabbatical leave, or (3)
| ||||||
15 | military leave. This coverage shall continue until
expiration | ||||||
16 | of authorized leave and return to active service, but not to | ||||||
17 | exceed
24 months for leaves under item (1) or (2). This | ||||||
18 | 24-month limitation and the
requirement of returning to active | ||||||
19 | service shall not apply to persons receiving
ordinary or | ||||||
20 | accidental disability benefits or retirement benefits through | ||||||
21 | the
appropriate State retirement system or benefits under the | ||||||
22 | Workers' Compensation
or Occupational Disease Act.
| ||||||
23 | (d) The basic group life insurance coverage shall | ||||||
24 | continue, with
full State contribution, where such person is | ||||||
25 | (1) absent from active
service by reason of disability arising | ||||||
26 | from any cause other than
self-inflicted, (2) on authorized |
| |||||||
| |||||||
1 | educational leave of absence or
sabbatical leave, or (3) on | ||||||
2 | military leave.
| ||||||
3 | (e) Where the person is in non-pay status for a period in | ||||||
4 | excess of
30 days or on leave of absence, other than by reason | ||||||
5 | of disability,
educational or sabbatical leave, or military | ||||||
6 | leave, such
person may continue coverage only by making | ||||||
7 | personal
payment equal to the amount normally contributed by | ||||||
8 | the State on such person's
behalf. Such payments and coverage | ||||||
9 | may be continued: (1) until such time as
the person returns to | ||||||
10 | a status eligible for coverage at State expense, but not
to | ||||||
11 | exceed 24 months or (2) until such person's employment or | ||||||
12 | annuitant status
with the State is terminated (exclusive of | ||||||
13 | any additional service imposed pursuant to law).
| ||||||
14 | (f) The Department shall establish by rule the extent to | ||||||
15 | which other
employee benefits will continue for persons in | ||||||
16 | non-pay status or who are
not in active service.
| ||||||
17 | (g) The State shall not pay the cost of the basic | ||||||
18 | non-contributory
group life insurance, program of health | ||||||
19 | benefits and other employee benefits
for members who are | ||||||
20 | survivors as defined by paragraphs (1) and (2) of
subsection | ||||||
21 | (q) of Section 3 of this Act. The costs of benefits for these
| ||||||
22 | survivors shall be paid by the survivors or by the University | ||||||
23 | of Illinois
Cooperative Extension Service, or any combination | ||||||
24 | thereof.
However, the State shall pay the amount of the | ||||||
25 | reduction in the cost of
participation, if any, resulting from | ||||||
26 | the amendment to subsection (a) made
by this amendatory Act of |
| |||||||
| |||||||
1 | the 91st General Assembly.
| ||||||
2 | (h) Those persons occupying positions with any department | ||||||
3 | as a result
of emergency appointments pursuant to Section 8b.8 | ||||||
4 | of the Personnel Code
who are not considered employees under | ||||||
5 | this Act shall be given the option
of participating in the | ||||||
6 | programs of group life insurance, health benefits and
other | ||||||
7 | employee benefits. Such persons electing coverage may | ||||||
8 | participate only
by making payment equal to the amount | ||||||
9 | normally contributed by the State for
similarly situated | ||||||
10 | employees. Such amounts shall be determined by the
Director. | ||||||
11 | Such payments and coverage may be continued until such time as | ||||||
12 | the
person becomes an employee pursuant to this Act or such | ||||||
13 | person's appointment is
terminated.
| ||||||
14 | (i) Any unit of local government within the State of | ||||||
15 | Illinois
may apply to the Director to have its employees, | ||||||
16 | annuitants, and their
dependents provided group health | ||||||
17 | coverage under this Act on a non-insured
basis. To | ||||||
18 | participate, a unit of local government must agree to enroll
| ||||||
19 | all of its employees, who may select coverage under any group
| ||||||
20 | health benefits plan made available by the Department under | ||||||
21 | the health benefits program established under this Section or | ||||||
22 | a health maintenance organization that has
contracted with the | ||||||
23 | State to be available as a health care provider for
employees | ||||||
24 | as defined in this Act. A unit of local government must remit | ||||||
25 | the
entire cost of providing coverage under the health | ||||||
26 | benefits program established under this Section
or, for |
| |||||||
| |||||||
1 | coverage under a health maintenance organization, an amount | ||||||
2 | determined
by the Director based on an analysis of the sex, | ||||||
3 | age, geographic location, or
other relevant demographic | ||||||
4 | variables for its employees, except that the unit of
local | ||||||
5 | government shall not be required to enroll those of its | ||||||
6 | employees who are
covered spouses or dependents under the | ||||||
7 | State group health benefits plan or another group policy or | ||||||
8 | plan
providing health benefits as long as (1) an appropriate | ||||||
9 | official from the unit
of local government attests that each | ||||||
10 | employee not enrolled is a covered spouse
or dependent under | ||||||
11 | this plan or another group policy or plan, and (2) at least
50% | ||||||
12 | of the employees are enrolled and the unit of local government | ||||||
13 | remits
the entire cost of providing coverage to those | ||||||
14 | employees, except that a
participating school district must | ||||||
15 | have enrolled at least 50% of its full-time
employees who have | ||||||
16 | not waived coverage under the district's group health
plan by | ||||||
17 | participating in a component of the district's cafeteria plan. | ||||||
18 | A
participating school district is not required to enroll a | ||||||
19 | full-time employee
who has waived coverage under the | ||||||
20 | district's health plan, provided that an
appropriate official | ||||||
21 | from the participating school district attests that the
| ||||||
22 | full-time employee has waived coverage by participating in a | ||||||
23 | component of the
district's cafeteria plan. For the purposes | ||||||
24 | of this subsection, "participating
school district" includes a | ||||||
25 | unit of local government whose primary purpose is
education as | ||||||
26 | defined by the Department's rules.
|
| |||||||
| |||||||
1 | Employees of a participating unit of local government who | ||||||
2 | are not enrolled
due to coverage under another group health | ||||||
3 | policy or plan may enroll in
the event of a qualifying change | ||||||
4 | in status, special enrollment, special
circumstance as defined | ||||||
5 | by the Director, or during the annual Benefit Choice
Period. A | ||||||
6 | participating unit of local government may also elect to cover | ||||||
7 | its
annuitants. Dependent coverage shall be offered on an | ||||||
8 | optional basis, with the
costs paid by the unit of local | ||||||
9 | government, its employees, or some combination
of the two as | ||||||
10 | determined by the unit of local government. The unit of local
| ||||||
11 | government shall be responsible for timely collection and | ||||||
12 | transmission of
dependent premiums.
| ||||||
13 | The Director shall annually determine monthly rates of | ||||||
14 | payment, subject
to the following constraints:
| ||||||
15 | (1) In the first year of coverage, the rates shall be | ||||||
16 | equal to the
amount normally charged to State employees | ||||||
17 | for elected optional coverages
or for enrolled dependents | ||||||
18 | coverages or other contributory coverages, or
contributed | ||||||
19 | by the State for basic insurance coverages on behalf of | ||||||
20 | its
employees, adjusted for differences between State | ||||||
21 | employees and employees
of the local government in age, | ||||||
22 | sex, geographic location or other relevant
demographic | ||||||
23 | variables, plus an amount sufficient to pay for the | ||||||
24 | additional
administrative costs of providing coverage to | ||||||
25 | employees of the unit of
local government and their | ||||||
26 | dependents.
|
| |||||||
| |||||||
1 | (2) In subsequent years, a further adjustment shall be | ||||||
2 | made to reflect
the actual prior years' claims experience | ||||||
3 | of the employees of the unit of
local government.
| ||||||
4 | In the case of coverage of local government employees | ||||||
5 | under a health
maintenance organization, the Director shall | ||||||
6 | annually determine for each
participating unit of local | ||||||
7 | government the maximum monthly amount the unit
may contribute | ||||||
8 | toward that coverage, based on an analysis of (i) the age,
sex, | ||||||
9 | geographic location, and other relevant demographic variables | ||||||
10 | of the
unit's employees and (ii) the cost to cover those | ||||||
11 | employees under the State
group health benefits plan. The | ||||||
12 | Director may similarly determine the
maximum monthly amount | ||||||
13 | each unit of local government may contribute toward
coverage | ||||||
14 | of its employees' dependents under a health maintenance | ||||||
15 | organization.
| ||||||
16 | Monthly payments by the unit of local government or its | ||||||
17 | employees for
group health benefits plan or health maintenance | ||||||
18 | organization coverage shall
be deposited in the Local | ||||||
19 | Government Health Insurance Reserve Fund.
| ||||||
20 | The Local Government Health Insurance Reserve Fund is | ||||||
21 | hereby created as a nonappropriated trust fund to be held | ||||||
22 | outside the State Treasury, with the State Treasurer as | ||||||
23 | custodian. The Local Government Health Insurance Reserve Fund | ||||||
24 | shall be a continuing
fund not subject to fiscal year | ||||||
25 | limitations. The Local Government Health Insurance Reserve | ||||||
26 | Fund is not subject to administrative charges or charge-backs, |
| |||||||
| |||||||
1 | including but not limited to those authorized under Section 8h | ||||||
2 | of the State Finance Act. All revenues arising from the | ||||||
3 | administration of the health benefits program established | ||||||
4 | under this Section shall be deposited into the Local | ||||||
5 | Government Health Insurance Reserve Fund. Any interest earned | ||||||
6 | on moneys in the Local Government Health Insurance Reserve | ||||||
7 | Fund shall be deposited into the Fund. All expenditures from | ||||||
8 | this Fund
shall be used for payments for health care benefits | ||||||
9 | for local government and rehabilitation facility
employees, | ||||||
10 | annuitants, and dependents, and to reimburse the Department or
| ||||||
11 | its administrative service organization for all expenses | ||||||
12 | incurred in the
administration of benefits. No other State | ||||||
13 | funds may be used for these
purposes.
| ||||||
14 | A local government employer's participation or desire to | ||||||
15 | participate
in a program created under this subsection shall | ||||||
16 | not limit that employer's
duty to bargain with the | ||||||
17 | representative of any collective bargaining unit
of its | ||||||
18 | employees.
| ||||||
19 | (j) Any rehabilitation facility within the State of | ||||||
20 | Illinois may apply
to the Director to have its employees, | ||||||
21 | annuitants, and their eligible
dependents provided group | ||||||
22 | health coverage under this Act on a non-insured
basis. To | ||||||
23 | participate, a rehabilitation facility must agree to enroll | ||||||
24 | all
of its employees and remit the entire cost of providing | ||||||
25 | such coverage for
its employees, except that the | ||||||
26 | rehabilitation facility shall not be
required to enroll those |
| |||||||
| |||||||
1 | of its employees who are covered spouses or
dependents under | ||||||
2 | this plan or another group policy or plan providing health
| ||||||
3 | benefits as long as (1) an appropriate official from the | ||||||
4 | rehabilitation
facility attests that each employee not | ||||||
5 | enrolled is a covered spouse or
dependent under this plan or | ||||||
6 | another group policy or plan, and (2) at least
50% of the | ||||||
7 | employees are enrolled and the rehabilitation facility remits
| ||||||
8 | the entire cost of providing coverage to those employees. | ||||||
9 | Employees of a
participating rehabilitation facility who are | ||||||
10 | not enrolled due to coverage
under another group health policy | ||||||
11 | or plan may enroll
in the event of a qualifying change in | ||||||
12 | status, special enrollment, special
circumstance as defined by | ||||||
13 | the Director, or during the annual Benefit Choice
Period. A | ||||||
14 | participating rehabilitation facility may also elect
to cover | ||||||
15 | its annuitants. Dependent coverage shall be offered on an | ||||||
16 | optional
basis, with the costs paid by the rehabilitation | ||||||
17 | facility, its employees, or
some combination of the 2 as | ||||||
18 | determined by the rehabilitation facility. The
rehabilitation | ||||||
19 | facility shall be responsible for timely collection and
| ||||||
20 | transmission of dependent premiums.
| ||||||
21 | The Director shall annually determine quarterly rates of | ||||||
22 | payment, subject
to the following constraints:
| ||||||
23 | (1) In the first year of coverage, the rates shall be | ||||||
24 | equal to the amount
normally charged to State employees | ||||||
25 | for elected optional coverages or for
enrolled dependents | ||||||
26 | coverages or other contributory coverages on behalf of
its |
| |||||||
| |||||||
1 | employees, adjusted for differences between State | ||||||
2 | employees and
employees of the rehabilitation facility in | ||||||
3 | age, sex, geographic location
or other relevant | ||||||
4 | demographic variables, plus an amount sufficient to pay
| ||||||
5 | for the additional administrative costs of providing | ||||||
6 | coverage to employees
of the rehabilitation facility and | ||||||
7 | their dependents.
| ||||||
8 | (2) In subsequent years, a further adjustment shall be | ||||||
9 | made to reflect
the actual prior years' claims experience | ||||||
10 | of the employees of the
rehabilitation facility.
| ||||||
11 | Monthly payments by the rehabilitation facility or its | ||||||
12 | employees for
group health benefits shall be deposited in the | ||||||
13 | Local Government Health
Insurance Reserve Fund.
| ||||||
14 | (k) Any domestic violence shelter or service within the | ||||||
15 | State of Illinois
may apply to the Director to have its | ||||||
16 | employees, annuitants, and their
dependents provided group | ||||||
17 | health coverage under this Act on a non-insured
basis. To | ||||||
18 | participate, a domestic violence shelter or service must agree | ||||||
19 | to
enroll all of its employees and pay the entire cost of | ||||||
20 | providing such coverage
for its employees. The domestic | ||||||
21 | violence shelter shall not be required to enroll those of its | ||||||
22 | employees who are covered spouses or dependents under this | ||||||
23 | plan or another group policy or plan providing health benefits | ||||||
24 | as long as (1) an appropriate official from the domestic | ||||||
25 | violence shelter attests that each employee not enrolled is a | ||||||
26 | covered spouse or dependent under this plan or another group |
| |||||||
| |||||||
1 | policy or plan and (2) at least 50% of the employees are | ||||||
2 | enrolled and the domestic violence shelter remits the entire | ||||||
3 | cost of providing coverage to those employees. Employees of a | ||||||
4 | participating domestic violence shelter who are not enrolled | ||||||
5 | due to coverage under another group health policy or plan may | ||||||
6 | enroll in the event of a qualifying change in status, special | ||||||
7 | enrollment, or special circumstance as defined by the Director | ||||||
8 | or during the annual Benefit Choice Period. A participating | ||||||
9 | domestic violence shelter may also elect
to cover its | ||||||
10 | annuitants. Dependent coverage shall be offered on an optional
| ||||||
11 | basis, with
employees, or some combination of the 2 as | ||||||
12 | determined by the domestic violence
shelter or service. The | ||||||
13 | domestic violence shelter or service shall be
responsible for | ||||||
14 | timely collection and transmission of dependent premiums.
| ||||||
15 | The Director shall annually determine rates of payment,
| ||||||
16 | subject to the following constraints:
| ||||||
17 | (1) In the first year of coverage, the rates shall be | ||||||
18 | equal to the
amount normally charged to State employees | ||||||
19 | for elected optional coverages
or for enrolled dependents | ||||||
20 | coverages or other contributory coverages on
behalf of its | ||||||
21 | employees, adjusted for differences between State | ||||||
22 | employees and
employees of the domestic violence shelter | ||||||
23 | or service in age, sex, geographic
location or other | ||||||
24 | relevant demographic variables, plus an amount sufficient
| ||||||
25 | to pay for the additional administrative costs of | ||||||
26 | providing coverage to
employees of the domestic violence |
| |||||||
| |||||||
1 | shelter or service and their dependents.
| ||||||
2 | (2) In subsequent years, a further adjustment shall be | ||||||
3 | made to reflect
the actual prior years' claims experience | ||||||
4 | of the employees of the domestic
violence shelter or | ||||||
5 | service.
| ||||||
6 | Monthly payments by the domestic violence shelter or | ||||||
7 | service or its employees
for group health insurance shall be | ||||||
8 | deposited in the Local Government Health
Insurance Reserve | ||||||
9 | Fund.
| ||||||
10 | (l) A public community college or entity organized | ||||||
11 | pursuant to the
Public Community College Act may apply to the | ||||||
12 | Director initially to have
only annuitants not covered prior | ||||||
13 | to July 1, 1992 by the district's health
plan provided health | ||||||
14 | coverage under this Act on a non-insured basis. The
community | ||||||
15 | college must execute a 2-year contract to participate in the
| ||||||
16 | Local Government Health Plan.
Any annuitant may enroll in the | ||||||
17 | event of a qualifying change in status, special
enrollment, | ||||||
18 | special circumstance as defined by the Director, or during the
| ||||||
19 | annual Benefit Choice Period.
| ||||||
20 | The Director shall annually determine monthly rates of | ||||||
21 | payment subject to
the following constraints: for those | ||||||
22 | community colleges with annuitants
only enrolled, first year | ||||||
23 | rates shall be equal to the average cost to cover
claims for a | ||||||
24 | State member adjusted for demographics, Medicare
| ||||||
25 | participation, and other factors; and in the second year, a | ||||||
26 | further adjustment
of rates shall be made to reflect the |
| |||||||
| |||||||
1 | actual first year's claims experience
of the covered | ||||||
2 | annuitants.
| ||||||
3 | (l-5) The provisions of subsection (l) become inoperative | ||||||
4 | on July 1, 1999.
| ||||||
5 | (m) The Director shall adopt any rules deemed necessary | ||||||
6 | for
implementation of this amendatory Act of 1989 (Public Act | ||||||
7 | 86-978).
| ||||||
8 | (n) Any child advocacy center within the State of Illinois | ||||||
9 | may apply to the Director to have its employees, annuitants, | ||||||
10 | and their dependents provided group health coverage under this | ||||||
11 | Act on a non-insured basis. To participate, a child advocacy | ||||||
12 | center must agree to enroll all of its employees and pay the | ||||||
13 | entire cost of providing coverage for its employees. The child
| ||||||
14 | advocacy center shall not be required to enroll those of its
| ||||||
15 | employees who are covered spouses or dependents under this | ||||||
16 | plan
or another group policy or plan providing health benefits | ||||||
17 | as
long as (1) an appropriate official from the child advocacy
| ||||||
18 | center attests that each employee not enrolled is a covered
| ||||||
19 | spouse or dependent under this plan or another group policy or
| ||||||
20 | plan and (2) at least 50% of the employees are enrolled and the | ||||||
21 | child advocacy center remits the entire cost of providing | ||||||
22 | coverage to those employees. Employees of a participating | ||||||
23 | child advocacy center who are not enrolled due to coverage | ||||||
24 | under another group health policy or plan may enroll in the | ||||||
25 | event of a qualifying change in status, special enrollment, or | ||||||
26 | special circumstance as defined by the Director or during the |
| |||||||
| |||||||
1 | annual Benefit Choice Period. A participating child advocacy | ||||||
2 | center may also elect to cover its annuitants. Dependent | ||||||
3 | coverage shall be offered on an optional basis, with the costs | ||||||
4 | paid by the child advocacy center, its employees, or some | ||||||
5 | combination of the 2 as determined by the child advocacy | ||||||
6 | center. The child advocacy center shall be responsible for | ||||||
7 | timely collection and transmission of dependent premiums. | ||||||
8 | The Director shall annually determine rates of payment, | ||||||
9 | subject to the following constraints: | ||||||
10 | (1) In the first year of coverage, the rates shall be | ||||||
11 | equal to the amount normally charged to State employees | ||||||
12 | for elected optional coverages or for enrolled dependents | ||||||
13 | coverages or other contributory coverages on behalf of its | ||||||
14 | employees, adjusted for differences between State | ||||||
15 | employees and employees of the child advocacy center in | ||||||
16 | age, sex, geographic location, or other relevant | ||||||
17 | demographic variables, plus an amount sufficient to pay | ||||||
18 | for the additional administrative costs of providing | ||||||
19 | coverage to employees of the child advocacy center and | ||||||
20 | their dependents. | ||||||
21 | (2) In subsequent years, a further adjustment shall be | ||||||
22 | made to reflect the actual prior years' claims experience | ||||||
23 | of the employees of the child advocacy center. | ||||||
24 | Monthly payments by the child advocacy center or its | ||||||
25 | employees for group health insurance shall be deposited into | ||||||
26 | the Local Government Health Insurance Reserve Fund. |
| |||||||
| |||||||
1 | (Source: P.A. 102-19, eff. 7-1-21.)
| ||||||
2 | Section 10. The Illinois Pension Code is amended by | ||||||
3 | changing Sections 1-160, 1-161, 14-103.05, 14-103.41, | ||||||
4 | 14-152.1, 20-121, 20-123, 20-124, and 20-125 and by adding | ||||||
5 | Section 14-155.5 as follows:
| ||||||
6 | (40 ILCS 5/1-160)
| ||||||
7 | (Text of Section from P.A. 102-719) | ||||||
8 | Sec. 1-160. Provisions applicable to new hires. | ||||||
9 | (a) The provisions of this Section apply to a person who, | ||||||
10 | on or after January 1, 2011, first becomes a member or a | ||||||
11 | participant under any reciprocal retirement system or pension | ||||||
12 | fund established under this Code, other than a retirement | ||||||
13 | system or pension fund established under Article 2, 3, 4, 5, 6, | ||||||
14 | 7, 15, or 18 of this Code, notwithstanding any other provision | ||||||
15 | of this Code to the contrary, but do not apply to any | ||||||
16 | self-managed plan established under this Code or to any | ||||||
17 | participant of the retirement plan established under Section | ||||||
18 | 22-101; except that this Section applies to a person who | ||||||
19 | elected to establish alternative credits by electing in | ||||||
20 | writing after January 1, 2011, but before August 8, 2011, | ||||||
21 | under Section 7-145.1 of this Code. Notwithstanding anything | ||||||
22 | to the contrary in this Section, for purposes of this Section, | ||||||
23 | a person who is a Tier 1 regular employee as defined in Section | ||||||
24 | 7-109.4 of this Code or who participated in a retirement |
| |||||||
| |||||||
1 | system under Article 15 prior to January 1, 2011 shall be | ||||||
2 | deemed a person who first became a member or participant prior | ||||||
3 | to January 1, 2011 under any retirement system or pension fund | ||||||
4 | subject to this Section. The changes made to this Section by | ||||||
5 | Public Act 98-596 are a clarification of existing law and are | ||||||
6 | intended to be retroactive to January 1, 2011 (the effective | ||||||
7 | date of Public Act 96-889), notwithstanding the provisions of | ||||||
8 | Section 1-103.1 of this Code. | ||||||
9 | This Section does not apply to a person who first becomes a | ||||||
10 | noncovered employee under Article 14 on or after the | ||||||
11 | implementation date of the plan created under Section 1-161 | ||||||
12 | for that Article, unless that person elects under subsection | ||||||
13 | (b) of Section 1-161 to instead receive the benefits provided | ||||||
14 | under this Section and the applicable provisions of that | ||||||
15 | Article. | ||||||
16 | This Section does not apply to a person who first becomes a | ||||||
17 | member or participant under Article 16 on or after the | ||||||
18 | implementation date of the plan created under Section 1-161 | ||||||
19 | for that Article, unless that person elects under subsection | ||||||
20 | (b) of Section 1-161 to instead receive the benefits provided | ||||||
21 | under this Section and the applicable provisions of that | ||||||
22 | Article. | ||||||
23 | This Section does not apply to a person who elects under | ||||||
24 | subsection (c-5) of Section 1-161 to receive the benefits | ||||||
25 | under Section 1-161. | ||||||
26 | This Section does not apply to a person who first becomes a |
| |||||||
| |||||||
1 | member or participant of an affected pension fund on or after 6 | ||||||
2 | months after the resolution or ordinance date, as defined in | ||||||
3 | Section 1-162, unless that person elects under subsection (c) | ||||||
4 | of Section 1-162 to receive the benefits provided under this | ||||||
5 | Section and the applicable provisions of the Article under | ||||||
6 | which he or she is a member or participant. | ||||||
7 | This Section does not apply to a person who participates
| ||||||
8 | in a defined contribution plan established under Section | ||||||
9 | 14-155.5. | ||||||
10 | (b) "Final average salary" means, except as otherwise | ||||||
11 | provided in this subsection, the average monthly (or annual) | ||||||
12 | salary obtained by dividing the total salary or earnings | ||||||
13 | calculated under the Article applicable to the member or | ||||||
14 | participant during the 96 consecutive months (or 8 consecutive | ||||||
15 | years) of service within the last 120 months (or 10 years) of | ||||||
16 | service in which the total salary or earnings calculated under | ||||||
17 | the applicable Article was the highest by the number of months | ||||||
18 | (or years) of service in that period. For the purposes of a | ||||||
19 | person who first becomes a member or participant of any | ||||||
20 | retirement system or pension fund to which this Section | ||||||
21 | applies on or after January 1, 2011, in this Code, "final | ||||||
22 | average salary" shall be substituted for the following: | ||||||
23 | (1) (Blank). | ||||||
24 | (2) In Articles 8, 9, 10, 11, and 12, "highest average | ||||||
25 | annual salary for any 4 consecutive years within the last | ||||||
26 | 10 years of service immediately preceding the date of |
| |||||||
| |||||||
1 | withdrawal". | ||||||
2 | (3) In Article 13, "average final salary". | ||||||
3 | (4) In Article 14, "final average compensation". | ||||||
4 | (5) In Article 17, "average salary". | ||||||
5 | (6) In Section 22-207, "wages or salary received by | ||||||
6 | him at the date of retirement or discharge". | ||||||
7 | A member of the Teachers' Retirement System of the State | ||||||
8 | of Illinois who retires on or after June 1, 2021 and for whom | ||||||
9 | the 2020-2021 school year is used in the calculation of the | ||||||
10 | member's final average salary shall use the higher of the | ||||||
11 | following for the purpose of determining the member's final | ||||||
12 | average salary: | ||||||
13 | (A) the amount otherwise calculated under the first | ||||||
14 | paragraph of this subsection; or | ||||||
15 | (B) an amount calculated by the Teachers' Retirement | ||||||
16 | System of the State of Illinois using the average of the | ||||||
17 | monthly (or annual) salary obtained by dividing the total | ||||||
18 | salary or earnings calculated under Article 16 applicable | ||||||
19 | to the member or participant during the 96 months (or 8 | ||||||
20 | years) of service within the last 120 months (or 10 years) | ||||||
21 | of service in which the total salary or earnings | ||||||
22 | calculated under the Article was the highest by the number | ||||||
23 | of months (or years) of service in that period. | ||||||
24 | (b-5) Beginning on January 1, 2011, for all purposes under | ||||||
25 | this Code (including without limitation the calculation of | ||||||
26 | benefits and employee contributions), the annual earnings, |
| |||||||
| |||||||
1 | salary, or wages (based on the plan year) of a member or | ||||||
2 | participant to whom this Section applies shall not exceed | ||||||
3 | $106,800; however, that amount shall annually thereafter be | ||||||
4 | increased by the lesser of (i) 3% of that amount, including all | ||||||
5 | previous adjustments, or (ii) one-half the annual unadjusted | ||||||
6 | percentage increase (but not less than zero) in the consumer | ||||||
7 | price index-u
for the 12 months ending with the September | ||||||
8 | preceding each November 1, including all previous adjustments. | ||||||
9 | For the purposes of this Section, "consumer price index-u" | ||||||
10 | means
the index published by the Bureau of Labor Statistics of | ||||||
11 | the United States
Department of Labor that measures the | ||||||
12 | average change in prices of goods and
services purchased by | ||||||
13 | all urban consumers, United States city average, all
items, | ||||||
14 | 1982-84 = 100. The new amount resulting from each annual | ||||||
15 | adjustment
shall be determined by the Public Pension Division | ||||||
16 | of the Department of Insurance and made available to the | ||||||
17 | boards of the retirement systems and pension funds by November | ||||||
18 | 1 of each year. | ||||||
19 | (c) A member or participant is entitled to a retirement
| ||||||
20 | annuity upon written application if he or she has attained age | ||||||
21 | 67 (age 65, with respect to service under Article 12 that is | ||||||
22 | subject to this Section, for a member or participant under | ||||||
23 | Article 12 who first becomes a member or participant under | ||||||
24 | Article 12 on or after January 1, 2022 or who makes the | ||||||
25 | election under item (i) of subsection (d-15) of this Section) | ||||||
26 | and has at least 10 years of service credit and is otherwise |
| |||||||
| |||||||
1 | eligible under the requirements of the applicable Article. | ||||||
2 | A member or participant who has attained age 62 (age 60, | ||||||
3 | with respect to service under Article 12 that is subject to | ||||||
4 | this Section, for a member or participant under Article 12 who | ||||||
5 | first becomes a member or participant under Article 12 on or | ||||||
6 | after January 1, 2022 or who makes the election under item (i) | ||||||
7 | of subsection (d-15) of this Section) and has at least 10 years | ||||||
8 | of service credit and is otherwise eligible under the | ||||||
9 | requirements of the applicable Article may elect to receive | ||||||
10 | the lower retirement annuity provided
in subsection (d) of | ||||||
11 | this Section. | ||||||
12 | (c-5) A person who first becomes a member or a participant | ||||||
13 | subject to this Section on or after July 6, 2017 (the effective | ||||||
14 | date of Public Act 100-23), notwithstanding any other | ||||||
15 | provision of this Code to the contrary, is entitled to a | ||||||
16 | retirement annuity under Article 8 or Article 11 upon written | ||||||
17 | application if he or she has attained age 65 and has at least | ||||||
18 | 10 years of service credit and is otherwise eligible under the | ||||||
19 | requirements of Article 8 or Article 11 of this Code, | ||||||
20 | whichever is applicable. | ||||||
21 | (d) The retirement annuity of a member or participant who | ||||||
22 | is retiring after attaining age 62 (age 60, with respect to | ||||||
23 | service under Article 12 that is subject to this Section, for a | ||||||
24 | member or participant under Article 12 who first becomes a | ||||||
25 | member or participant under Article 12 on or after January 1, | ||||||
26 | 2022 or who makes the election under item (i) of subsection |
| |||||||
| |||||||
1 | (d-15) of this Section) with at least 10 years of service | ||||||
2 | credit shall be reduced by one-half
of 1% for each full month | ||||||
3 | that the member's age is under age 67 (age 65, with respect to | ||||||
4 | service under Article 12 that is subject to this Section, for a | ||||||
5 | member or participant under Article 12 who first becomes a | ||||||
6 | member or participant under Article 12 on or after January 1, | ||||||
7 | 2022 or who makes the election under item (i) of subsection | ||||||
8 | (d-15) of this Section). | ||||||
9 | (d-5) The retirement annuity payable under Article 8 or | ||||||
10 | Article 11 to an eligible person subject to subsection (c-5) | ||||||
11 | of this Section who is retiring at age 60 with at least 10 | ||||||
12 | years of service credit shall be reduced by one-half of 1% for | ||||||
13 | each full month that the member's age is under age 65. | ||||||
14 | (d-10) Each person who first became a member or | ||||||
15 | participant under Article 8 or Article 11 of this Code on or | ||||||
16 | after January 1, 2011 and prior to July 6, 2017 (the effective | ||||||
17 | date of Public Act 100-23) shall make an irrevocable election | ||||||
18 | either: | ||||||
19 | (i) to be eligible for the reduced retirement age | ||||||
20 | provided in subsections (c-5)
and (d-5) of this Section, | ||||||
21 | the eligibility for which is conditioned upon the member | ||||||
22 | or participant agreeing to the increases in employee | ||||||
23 | contributions for age and service annuities provided in | ||||||
24 | subsection (a-5) of Section 8-174 of this Code (for | ||||||
25 | service under Article 8) or subsection (a-5) of Section | ||||||
26 | 11-170 of this Code (for service under Article 11); or |
| |||||||
| |||||||
1 | (ii) to not agree to item (i) of this subsection | ||||||
2 | (d-10), in which case the member or participant shall | ||||||
3 | continue to be subject to the retirement age provisions in | ||||||
4 | subsections (c) and (d) of this Section and the employee | ||||||
5 | contributions for age and service annuity as provided in | ||||||
6 | subsection (a) of Section 8-174 of this Code (for service | ||||||
7 | under Article 8) or subsection (a) of Section 11-170 of | ||||||
8 | this Code (for service under Article 11). | ||||||
9 | The election provided for in this subsection shall be made | ||||||
10 | between October 1, 2017 and November 15, 2017. A person | ||||||
11 | subject to this subsection who makes the required election | ||||||
12 | shall remain bound by that election. A person subject to this | ||||||
13 | subsection who fails for any reason to make the required | ||||||
14 | election within the time specified in this subsection shall be | ||||||
15 | deemed to have made the election under item (ii). | ||||||
16 | (d-15) Each person who first becomes a member or | ||||||
17 | participant under Article 12 on or after January 1, 2011 and | ||||||
18 | prior to January 1, 2022 shall make an irrevocable election | ||||||
19 | either: | ||||||
20 | (i) to be eligible for the reduced retirement age | ||||||
21 | specified in subsections (c) and (d) of this Section, the | ||||||
22 | eligibility for which is conditioned upon the member or | ||||||
23 | participant agreeing to the increase in employee | ||||||
24 | contributions for service annuities specified in | ||||||
25 | subsection (b) of Section 12-150; or | ||||||
26 | (ii) to not agree to item (i) of this subsection |
| |||||||
| |||||||
1 | (d-15), in which case the member or participant shall not | ||||||
2 | be eligible for the reduced retirement age specified in | ||||||
3 | subsections (c) and (d) of this Section and shall not be | ||||||
4 | subject to the increase in employee contributions for | ||||||
5 | service annuities specified in subsection (b) of Section | ||||||
6 | 12-150. | ||||||
7 | The election provided for in this subsection shall be made | ||||||
8 | between January 1, 2022 and April 1, 2022. A person subject to | ||||||
9 | this subsection who makes the required election shall remain | ||||||
10 | bound by that election. A person subject to this subsection | ||||||
11 | who fails for any reason to make the required election within | ||||||
12 | the time specified in this subsection shall be deemed to have | ||||||
13 | made the election under item (ii). | ||||||
14 | (e) Any retirement annuity or supplemental annuity shall | ||||||
15 | be subject to annual increases on the January 1 occurring | ||||||
16 | either on or after the attainment of age 67 (age 65, with | ||||||
17 | respect to service under Article 12 that is subject to this | ||||||
18 | Section, for a member or participant under Article 12 who | ||||||
19 | first becomes a member or participant under Article 12 on or | ||||||
20 | after January 1, 2022 or who makes the election under item (i) | ||||||
21 | of subsection (d-15); and beginning on July 6, 2017 (the | ||||||
22 | effective date of Public Act 100-23), age 65 with respect to | ||||||
23 | service under Article 8 or Article 11 for eligible persons | ||||||
24 | who: (i) are subject to subsection (c-5) of this Section; or | ||||||
25 | (ii) made the election under item (i) of subsection (d-10) of | ||||||
26 | this Section) or the first anniversary of the annuity start |
| |||||||
| |||||||
1 | date, whichever is later. Each annual increase shall be | ||||||
2 | calculated at 3% or one-half the annual unadjusted percentage | ||||||
3 | increase (but not less than zero) in the consumer price | ||||||
4 | index-u for the 12 months ending with the September preceding | ||||||
5 | each November 1, whichever is less, of the originally granted | ||||||
6 | retirement annuity. If the annual unadjusted percentage change | ||||||
7 | in the consumer price index-u for the 12 months ending with the | ||||||
8 | September preceding each November 1 is zero or there is a | ||||||
9 | decrease, then the annuity shall not be increased. | ||||||
10 | For the purposes of Section 1-103.1 of this Code, the | ||||||
11 | changes made to this Section by Public Act 102-263 are | ||||||
12 | applicable without regard to whether the employee was in | ||||||
13 | active service on or after August 6, 2021 (the effective date | ||||||
14 | of Public Act 102-263). | ||||||
15 | For the purposes of Section 1-103.1 of this Code, the | ||||||
16 | changes made to this Section by Public Act 100-23 are | ||||||
17 | applicable without regard to whether the employee was in | ||||||
18 | active service on or after July 6, 2017 (the effective date of | ||||||
19 | Public Act 100-23). | ||||||
20 | (f) The initial survivor's or widow's annuity of an | ||||||
21 | otherwise eligible survivor or widow of a retired member or | ||||||
22 | participant who first became a member or participant on or | ||||||
23 | after January 1, 2011 shall be in the amount of 66 2/3% of the | ||||||
24 | retired member's or participant's retirement annuity at the | ||||||
25 | date of death. In the case of the death of a member or | ||||||
26 | participant who has not retired and who first became a member |
| |||||||
| |||||||
1 | or participant on or after January 1, 2011, eligibility for a | ||||||
2 | survivor's or widow's annuity shall be determined by the | ||||||
3 | applicable Article of this Code. The initial benefit shall be | ||||||
4 | 66 2/3% of the earned annuity without a reduction due to age. A | ||||||
5 | child's annuity of an otherwise eligible child shall be in the | ||||||
6 | amount prescribed under each Article if applicable. Any | ||||||
7 | survivor's or widow's annuity shall be increased (1) on each | ||||||
8 | January 1 occurring on or after the commencement of the | ||||||
9 | annuity if
the deceased member died while receiving a | ||||||
10 | retirement annuity or (2) in
other cases, on each January 1 | ||||||
11 | occurring after the first anniversary
of the commencement of | ||||||
12 | the annuity. Each annual increase shall be calculated at 3% or | ||||||
13 | one-half the annual unadjusted percentage increase (but not | ||||||
14 | less than zero) in the consumer price index-u for the 12 months | ||||||
15 | ending with the September preceding each November 1, whichever | ||||||
16 | is less, of the originally granted survivor's annuity. If the | ||||||
17 | annual unadjusted percentage change in the consumer price | ||||||
18 | index-u for the 12 months ending with the September preceding | ||||||
19 | each November 1 is zero or there is a decrease, then the | ||||||
20 | annuity shall not be increased. | ||||||
21 | (g) The benefits in Section 14-110 apply if the person is a | ||||||
22 | fire fighter in the fire protection service of a department, a | ||||||
23 | security employee of the Department of Corrections or the | ||||||
24 | Department of Juvenile Justice, or a security employee of the | ||||||
25 | Department of Innovation and Technology, as those terms are | ||||||
26 | defined in subsection (b) and subsection (c) of Section |
| |||||||
| |||||||
1 | 14-110. A person who meets the requirements of this Section is | ||||||
2 | entitled to an annuity calculated under the provisions of | ||||||
3 | Section 14-110, in lieu of the regular or minimum retirement | ||||||
4 | annuity, only if the person has withdrawn from service with | ||||||
5 | not less than 20
years of eligible creditable service and has | ||||||
6 | attained age 60, regardless of whether
the attainment of age | ||||||
7 | 60 occurs while the person is
still in service. | ||||||
8 | (g-5) The benefits in Section 14-110 apply if the person | ||||||
9 | is a State policeman, investigator for the Secretary of State, | ||||||
10 | conservation police officer, investigator for the Department | ||||||
11 | of Revenue or the
Illinois Gaming Board, investigator for the | ||||||
12 | Office of the Attorney
General, Commerce Commission police | ||||||
13 | officer, or arson investigator, as those terms are defined in | ||||||
14 | subsection (b) and subsection (c) of Section 14-110. A person | ||||||
15 | who meets the requirements of this Section is entitled to an | ||||||
16 | annuity calculated under the provisions of Section 14-110, in | ||||||
17 | lieu of the regular or minimum retirement annuity, only if the | ||||||
18 | person has withdrawn from service with not less than 20 years | ||||||
19 | of eligible creditable service and has attained age 55, | ||||||
20 | regardless of whether the attainment of age 55 occurs while | ||||||
21 | the person is still in service. | ||||||
22 | (h) If a person who first becomes a member or a participant | ||||||
23 | of a retirement system or pension fund subject to this Section | ||||||
24 | on or after January 1, 2011 is receiving a retirement annuity | ||||||
25 | or retirement pension under that system or fund and becomes a | ||||||
26 | member or participant under any other system or fund created |
| |||||||
| |||||||
1 | by this Code and is employed on a full-time basis, except for | ||||||
2 | those members or participants exempted from the provisions of | ||||||
3 | this Section under subsection (a) of this Section, then the | ||||||
4 | person's retirement annuity or retirement pension under that | ||||||
5 | system or fund shall be suspended during that employment. Upon | ||||||
6 | termination of that employment, the person's retirement | ||||||
7 | annuity or retirement pension payments shall resume and be | ||||||
8 | recalculated if recalculation is provided for under the | ||||||
9 | applicable Article of this Code. | ||||||
10 | If a person who first becomes a member of a retirement | ||||||
11 | system or pension fund subject to this Section on or after | ||||||
12 | January 1, 2012 and is receiving a retirement annuity or | ||||||
13 | retirement pension under that system or fund and accepts on a | ||||||
14 | contractual basis a position to provide services to a | ||||||
15 | governmental entity from which he or she has retired, then | ||||||
16 | that person's annuity or retirement pension earned as an | ||||||
17 | active employee of the employer shall be suspended during that | ||||||
18 | contractual service. A person receiving an annuity or | ||||||
19 | retirement pension under this Code shall notify the pension | ||||||
20 | fund or retirement system from which he or she is receiving an | ||||||
21 | annuity or retirement pension, as well as his or her | ||||||
22 | contractual employer, of his or her retirement status before | ||||||
23 | accepting contractual employment. A person who fails to submit | ||||||
24 | such notification shall be guilty of a Class A misdemeanor and | ||||||
25 | required to pay a fine of $1,000. Upon termination of that | ||||||
26 | contractual employment, the person's retirement annuity or |
| |||||||
| |||||||
1 | retirement pension payments shall resume and, if appropriate, | ||||||
2 | be recalculated under the applicable provisions of this Code. | ||||||
3 | (i) (Blank). | ||||||
4 | (j) In the case of a conflict between the provisions of | ||||||
5 | this Section and any other provision of this Code, the | ||||||
6 | provisions of this Section shall control.
| ||||||
7 | (Source: P.A. 101-610, eff. 1-1-20; 102-16, eff. 6-17-21; | ||||||
8 | 102-210, eff. 1-1-22; 102-263, eff. 8-6-21; 102-719, eff. | ||||||
9 | 5-6-22.) | ||||||
10 | (Text of Section from P.A. 102-813) | ||||||
11 | Sec. 1-160. Provisions applicable to new hires. | ||||||
12 | (a) The provisions of this Section apply to a person who, | ||||||
13 | on or after January 1, 2011, first becomes a member or a | ||||||
14 | participant under any reciprocal retirement system or pension | ||||||
15 | fund established under this Code, other than a retirement | ||||||
16 | system or pension fund established under Article 2, 3, 4, 5, 6, | ||||||
17 | 7, 15, or 18 of this Code, notwithstanding any other provision | ||||||
18 | of this Code to the contrary, but do not apply to any | ||||||
19 | self-managed plan established under this Code or to any | ||||||
20 | participant of the retirement plan established under Section | ||||||
21 | 22-101; except that this Section applies to a person who | ||||||
22 | elected to establish alternative credits by electing in | ||||||
23 | writing after January 1, 2011, but before August 8, 2011, | ||||||
24 | under Section 7-145.1 of this Code. Notwithstanding anything | ||||||
25 | to the contrary in this Section, for purposes of this Section, |
| |||||||
| |||||||
1 | a person who is a Tier 1 regular employee as defined in Section | ||||||
2 | 7-109.4 of this Code or who participated in a retirement | ||||||
3 | system under Article 15 prior to January 1, 2011 shall be | ||||||
4 | deemed a person who first became a member or participant prior | ||||||
5 | to January 1, 2011 under any retirement system or pension fund | ||||||
6 | subject to this Section. The changes made to this Section by | ||||||
7 | Public Act 98-596 are a clarification of existing law and are | ||||||
8 | intended to be retroactive to January 1, 2011 (the effective | ||||||
9 | date of Public Act 96-889), notwithstanding the provisions of | ||||||
10 | Section 1-103.1 of this Code. | ||||||
11 | This Section does not apply to a person who first becomes a | ||||||
12 | noncovered employee under Article 14 on or after the | ||||||
13 | implementation date of the plan created under Section 1-161 | ||||||
14 | for that Article, unless that person elects under subsection | ||||||
15 | (b) of Section 1-161 to instead receive the benefits provided | ||||||
16 | under this Section and the applicable provisions of that | ||||||
17 | Article. | ||||||
18 | This Section does not apply to a person who first becomes a | ||||||
19 | member or participant under Article 16 on or after the | ||||||
20 | implementation date of the plan created under Section 1-161 | ||||||
21 | for that Article, unless that person elects under subsection | ||||||
22 | (b) of Section 1-161 to instead receive the benefits provided | ||||||
23 | under this Section and the applicable provisions of that | ||||||
24 | Article. | ||||||
25 | This Section does not apply to a person who elects under | ||||||
26 | subsection (c-5) of Section 1-161 to receive the benefits |
| |||||||
| |||||||
1 | under Section 1-161. | ||||||
2 | This Section does not apply to a person who first becomes a | ||||||
3 | member or participant of an affected pension fund on or after 6 | ||||||
4 | months after the resolution or ordinance date, as defined in | ||||||
5 | Section 1-162, unless that person elects under subsection (c) | ||||||
6 | of Section 1-162 to receive the benefits provided under this | ||||||
7 | Section and the applicable provisions of the Article under | ||||||
8 | which he or she is a member or participant. | ||||||
9 | This Section does not apply to a person who participates
| ||||||
10 | in a defined contribution plan established under Section | ||||||
11 | 14-155.5. | ||||||
12 | (b) "Final average salary" means, except as otherwise | ||||||
13 | provided in this subsection, the average monthly (or annual) | ||||||
14 | salary obtained by dividing the total salary or earnings | ||||||
15 | calculated under the Article applicable to the member or | ||||||
16 | participant during the 96 consecutive months (or 8 consecutive | ||||||
17 | years) of service within the last 120 months (or 10 years) of | ||||||
18 | service in which the total salary or earnings calculated under | ||||||
19 | the applicable Article was the highest by the number of months | ||||||
20 | (or years) of service in that period. For the purposes of a | ||||||
21 | person who first becomes a member or participant of any | ||||||
22 | retirement system or pension fund to which this Section | ||||||
23 | applies on or after January 1, 2011, in this Code, "final | ||||||
24 | average salary" shall be substituted for the following: | ||||||
25 | (1) (Blank). | ||||||
26 | (2) In Articles 8, 9, 10, 11, and 12, "highest average |
| |||||||
| |||||||
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 | ||||||
10 | of Illinois who retires on or after June 1, 2021 and for whom | ||||||
11 | the 2020-2021 school year is used in the calculation of the | ||||||
12 | member's final average salary shall use the higher of the | ||||||
13 | following for the purpose of determining the member's final | ||||||
14 | average 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 |
| |||||||
| |||||||
1 | this Code (including without limitation the calculation of | ||||||
2 | benefits and employee contributions), the annual earnings, | ||||||
3 | salary, or wages (based on the plan year) of a member or | ||||||
4 | participant to whom this Section applies shall not exceed | ||||||
5 | $106,800; however, that amount shall annually thereafter be | ||||||
6 | increased by the lesser of (i) 3% of that amount, including all | ||||||
7 | previous adjustments, or (ii) one-half the annual unadjusted | ||||||
8 | percentage increase (but not less than zero) in the consumer | ||||||
9 | price index-u
for the 12 months ending with the September | ||||||
10 | preceding each November 1, including all previous adjustments. | ||||||
11 | For the purposes of this Section, "consumer price index-u" | ||||||
12 | means
the index published by the Bureau of Labor Statistics of | ||||||
13 | the United States
Department of Labor that measures the | ||||||
14 | average change in prices of goods and
services purchased by | ||||||
15 | all urban consumers, United States city average, all
items, | ||||||
16 | 1982-84 = 100. The new amount resulting from each annual | ||||||
17 | adjustment
shall be determined by the Public Pension Division | ||||||
18 | of the Department of Insurance and made available to the | ||||||
19 | boards of the retirement systems and pension funds by November | ||||||
20 | 1 of each year. | ||||||
21 | (c) A member or participant is entitled to a retirement
| ||||||
22 | annuity upon written application if he or she has attained age | ||||||
23 | 67 (age 65, with respect to service under Article 12 that is | ||||||
24 | subject to this Section, for a member or participant under | ||||||
25 | Article 12 who first becomes a member or participant under | ||||||
26 | Article 12 on or after January 1, 2022 or who makes the |
| |||||||
| |||||||
1 | election under item (i) of subsection (d-15) of this Section) | ||||||
2 | and has at least 10 years of service credit and is otherwise | ||||||
3 | eligible under the requirements of the applicable Article. | ||||||
4 | A member or participant who has attained age 62 (age 60, | ||||||
5 | with respect to service under Article 12 that is subject to | ||||||
6 | this Section, for a member or participant under Article 12 who | ||||||
7 | first becomes a member or participant under Article 12 on or | ||||||
8 | after January 1, 2022 or who makes the election under item (i) | ||||||
9 | of subsection (d-15) of this Section) and has at least 10 years | ||||||
10 | of service credit and is otherwise eligible under the | ||||||
11 | requirements of the applicable Article may elect to receive | ||||||
12 | the lower retirement annuity provided
in subsection (d) of | ||||||
13 | this Section. | ||||||
14 | (c-5) A person who first becomes a member or a participant | ||||||
15 | subject to this Section on or after July 6, 2017 (the effective | ||||||
16 | date of Public Act 100-23), notwithstanding any other | ||||||
17 | provision of this Code to the contrary, is entitled to a | ||||||
18 | retirement annuity under Article 8 or Article 11 upon written | ||||||
19 | application if he or she has attained age 65 and has at least | ||||||
20 | 10 years of service credit and is otherwise eligible under the | ||||||
21 | requirements of Article 8 or Article 11 of this Code, | ||||||
22 | whichever is applicable. | ||||||
23 | (d) The retirement annuity of a member or participant who | ||||||
24 | is retiring after attaining age 62 (age 60, with respect to | ||||||
25 | service under Article 12 that is subject to this Section, for a | ||||||
26 | member or participant under Article 12 who first becomes a |
| |||||||
| |||||||
1 | member or participant under Article 12 on or after January 1, | ||||||
2 | 2022 or who makes the election under item (i) of subsection | ||||||
3 | (d-15) of this Section) with at least 10 years of service | ||||||
4 | credit shall be reduced by one-half
of 1% for each full month | ||||||
5 | that the member's age is under age 67 (age 65, with respect to | ||||||
6 | service under Article 12 that is subject to this Section, for a | ||||||
7 | member or participant under Article 12 who first becomes a | ||||||
8 | member or participant under Article 12 on or after January 1, | ||||||
9 | 2022 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 | ||||||
12 | Article 11 to an eligible person subject to subsection (c-5) | ||||||
13 | of this Section who is retiring at age 60 with at least 10 | ||||||
14 | years of service credit shall be reduced by one-half of 1% for | ||||||
15 | each full month that the member's age is under age 65. | ||||||
16 | (d-10) Each person who first became a member or | ||||||
17 | participant under Article 8 or Article 11 of this Code on or | ||||||
18 | after January 1, 2011 and prior to July 6, 2017 (the effective | ||||||
19 | date of Public Act 100-23) shall make an irrevocable election | ||||||
20 | either: | ||||||
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 |
| |||||||
| |||||||
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 | ||||||
12 | between October 1, 2017 and November 15, 2017. A person | ||||||
13 | subject to this subsection who makes the required election | ||||||
14 | shall remain bound by that election. A person subject to this | ||||||
15 | subsection who fails for any reason to make the required | ||||||
16 | election within the time specified in this subsection shall be | ||||||
17 | deemed to have made the election under item (ii). | ||||||
18 | (d-15) Each person who first becomes a member or | ||||||
19 | participant under Article 12 on or after January 1, 2011 and | ||||||
20 | prior to January 1, 2022 shall make an irrevocable election | ||||||
21 | either: | ||||||
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 |
| |||||||
| |||||||
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 | ||||||
10 | between January 1, 2022 and April 1, 2022. A person subject to | ||||||
11 | this subsection who makes the required election shall remain | ||||||
12 | bound by that election. A person subject to this subsection | ||||||
13 | who fails for any reason to make the required election within | ||||||
14 | the time specified in this subsection shall be deemed to have | ||||||
15 | made the election under item (ii). | ||||||
16 | (e) Any retirement annuity or supplemental annuity shall | ||||||
17 | be subject to annual increases on the January 1 occurring | ||||||
18 | either on or after the attainment of age 67 (age 65, with | ||||||
19 | respect to service under Article 12 that is subject to this | ||||||
20 | Section, for a member or participant under Article 12 who | ||||||
21 | first becomes a member or participant under Article 12 on or | ||||||
22 | after January 1, 2022 or who makes the election under item (i) | ||||||
23 | of subsection (d-15); and beginning on July 6, 2017 (the | ||||||
24 | effective date of Public Act 100-23), age 65 with respect to | ||||||
25 | service under Article 8 or Article 11 for eligible persons | ||||||
26 | who: (i) are subject to subsection (c-5) of this Section; or |
| |||||||
| |||||||
1 | (ii) made the election under item (i) of subsection (d-10) of | ||||||
2 | this Section) or the first anniversary of the annuity start | ||||||
3 | date, whichever is later. Each annual increase shall be | ||||||
4 | calculated at 3% or one-half the annual unadjusted percentage | ||||||
5 | increase (but not less than zero) in the consumer price | ||||||
6 | index-u for the 12 months ending with the September preceding | ||||||
7 | each November 1, whichever is less, of the originally granted | ||||||
8 | retirement annuity. If the annual unadjusted percentage change | ||||||
9 | in the consumer price index-u for the 12 months ending with the | ||||||
10 | September preceding each November 1 is zero or there is a | ||||||
11 | decrease, then the annuity shall not be increased. | ||||||
12 | For the purposes of Section 1-103.1 of this Code, the | ||||||
13 | changes made to this Section by Public Act 102-263 are | ||||||
14 | applicable without regard to whether the employee was in | ||||||
15 | active service on or after August 6, 2021 (the effective date | ||||||
16 | of Public Act 102-263). | ||||||
17 | For the purposes of Section 1-103.1 of this Code, the | ||||||
18 | changes made to this Section by Public Act 100-23 are | ||||||
19 | applicable without regard to whether the employee was in | ||||||
20 | active service on or after July 6, 2017 (the effective date of | ||||||
21 | Public Act 100-23). | ||||||
22 | (f) The initial survivor's or widow's annuity of an | ||||||
23 | otherwise eligible survivor or widow of a retired member or | ||||||
24 | participant who first became a member or participant on or | ||||||
25 | after January 1, 2011 shall be in the amount of 66 2/3% of the | ||||||
26 | retired member's or participant's retirement annuity at the |
| |||||||
| |||||||
1 | date of death. In the case of the death of a member or | ||||||
2 | participant who has not retired and who first became a member | ||||||
3 | or participant on or after January 1, 2011, eligibility for a | ||||||
4 | survivor's or widow's annuity shall be determined by the | ||||||
5 | applicable Article of this Code. The initial benefit shall be | ||||||
6 | 66 2/3% of the earned annuity without a reduction due to age. A | ||||||
7 | child's annuity of an otherwise eligible child shall be in the | ||||||
8 | amount prescribed under each Article if applicable. Any | ||||||
9 | survivor's or widow's annuity shall be increased (1) on each | ||||||
10 | January 1 occurring on or after the commencement of the | ||||||
11 | annuity if
the deceased member died while receiving a | ||||||
12 | retirement annuity or (2) in
other cases, on each January 1 | ||||||
13 | occurring after the first anniversary
of the commencement of | ||||||
14 | the annuity. Each annual increase shall be calculated at 3% or | ||||||
15 | one-half the annual unadjusted percentage increase (but not | ||||||
16 | less than zero) in the consumer price index-u for the 12 months | ||||||
17 | ending with the September preceding each November 1, whichever | ||||||
18 | is less, of the originally granted survivor's annuity. If the | ||||||
19 | annual unadjusted percentage change in the consumer price | ||||||
20 | index-u for the 12 months ending with the September preceding | ||||||
21 | each November 1 is zero or there is a decrease, then the | ||||||
22 | annuity shall not be increased. | ||||||
23 | (g) The benefits in Section 14-110 apply only if the | ||||||
24 | person is a State policeman, a fire fighter in the fire | ||||||
25 | protection service of a department, a conservation police | ||||||
26 | officer, an investigator for the Secretary of State, an arson |
| |||||||
| |||||||
1 | investigator, a Commerce Commission police officer, | ||||||
2 | investigator for the Department of Revenue or the
Illinois | ||||||
3 | Gaming Board, a security employee of the Department of | ||||||
4 | Corrections or the Department of Juvenile Justice, or a | ||||||
5 | security employee of the Department of Innovation and | ||||||
6 | Technology, as those terms are defined in subsection (b) and | ||||||
7 | subsection (c) of Section 14-110. A person who meets the | ||||||
8 | requirements of this Section is entitled to an annuity | ||||||
9 | calculated under the provisions of Section 14-110, in lieu of | ||||||
10 | the regular or minimum retirement annuity, only if the person | ||||||
11 | has withdrawn from service with not less than 20
years of | ||||||
12 | eligible creditable service and has attained age 60, | ||||||
13 | regardless of whether
the attainment of age 60 occurs while | ||||||
14 | the person is
still in service. | ||||||
15 | (h) If a person who first becomes a member or a participant | ||||||
16 | of a retirement system or pension fund subject to this Section | ||||||
17 | on or after January 1, 2011 is receiving a retirement annuity | ||||||
18 | or retirement pension under that system or fund and becomes a | ||||||
19 | member or participant under any other system or fund created | ||||||
20 | by this Code and is employed on a full-time basis, except for | ||||||
21 | those members or participants exempted from the provisions of | ||||||
22 | this Section under subsection (a) of this Section, then the | ||||||
23 | person's retirement annuity or retirement pension under that | ||||||
24 | system or fund shall be suspended during that employment. Upon | ||||||
25 | termination of that employment, the person's retirement | ||||||
26 | annuity or retirement pension payments shall resume and be |
| |||||||
| |||||||
1 | recalculated if recalculation is provided for under the | ||||||
2 | applicable Article of this Code. | ||||||
3 | If a person who first becomes a member of a retirement | ||||||
4 | system or pension fund subject to this Section on or after | ||||||
5 | January 1, 2012 and is receiving a retirement annuity or | ||||||
6 | retirement pension under that system or fund and accepts on a | ||||||
7 | contractual basis a position to provide services to a | ||||||
8 | governmental entity from which he or she has retired, then | ||||||
9 | that person's annuity or retirement pension earned as an | ||||||
10 | active employee of the employer shall be suspended during that | ||||||
11 | contractual service. A person receiving an annuity or | ||||||
12 | retirement pension under this Code shall notify the pension | ||||||
13 | fund or retirement system from which he or she is receiving an | ||||||
14 | annuity or retirement pension, as well as his or her | ||||||
15 | contractual employer, of his or her retirement status before | ||||||
16 | accepting contractual employment. A person who fails to submit | ||||||
17 | such notification shall be guilty of a Class A misdemeanor and | ||||||
18 | required to pay a fine of $1,000. Upon termination of that | ||||||
19 | contractual employment, the person's retirement annuity or | ||||||
20 | retirement pension payments shall resume and, if appropriate, | ||||||
21 | be recalculated under the applicable provisions of this Code. | ||||||
22 | (i) (Blank). | ||||||
23 | (j) In the case of a conflict between the provisions of | ||||||
24 | this Section and any other provision of this Code, the | ||||||
25 | provisions of this Section shall control.
| ||||||
26 | (Source: P.A. 101-610, eff. 1-1-20; 102-16, eff. 6-17-21; |
| |||||||
| |||||||
1 | 102-210, eff. 1-1-22; 102-263, eff. 8-6-21; 102-813, eff. | ||||||
2 | 5-13-22.) | ||||||
3 | (Text of Section from P.A. 102-956) | ||||||
4 | Sec. 1-160. Provisions applicable to new hires. | ||||||
5 | (a) The provisions of this Section apply to a person who, | ||||||
6 | on or after January 1, 2011, first becomes a member or a | ||||||
7 | participant under any reciprocal retirement system or pension | ||||||
8 | fund established under this Code, other than a retirement | ||||||
9 | system or pension fund established under Article 2, 3, 4, 5, 6, | ||||||
10 | 7, 15, or 18 of this Code, notwithstanding any other provision | ||||||
11 | of this Code to the contrary, but do not apply to any | ||||||
12 | self-managed plan established under this Code or to any | ||||||
13 | participant of the retirement plan established under Section | ||||||
14 | 22-101; except that this Section applies to a person who | ||||||
15 | elected to establish alternative credits by electing in | ||||||
16 | writing after January 1, 2011, but before August 8, 2011, | ||||||
17 | under Section 7-145.1 of this Code. Notwithstanding anything | ||||||
18 | to the contrary in this Section, for purposes of this Section, | ||||||
19 | a person who is a Tier 1 regular employee as defined in Section | ||||||
20 | 7-109.4 of this Code or who participated in a retirement | ||||||
21 | system under Article 15 prior to January 1, 2011 shall be | ||||||
22 | deemed a person who first became a member or participant prior | ||||||
23 | to January 1, 2011 under any retirement system or pension fund | ||||||
24 | subject to this Section. The changes made to this Section by | ||||||
25 | Public Act 98-596 are a clarification of existing law and are |
| |||||||
| |||||||
1 | intended to be retroactive to January 1, 2011 (the effective | ||||||
2 | date of Public Act 96-889), notwithstanding the provisions of | ||||||
3 | Section 1-103.1 of this Code. | ||||||
4 | This Section does not apply to a person who first becomes a | ||||||
5 | noncovered employee under Article 14 on or after the | ||||||
6 | implementation date of the plan created under Section 1-161 | ||||||
7 | for that Article, unless that person elects under subsection | ||||||
8 | (b) of Section 1-161 to instead receive the benefits provided | ||||||
9 | under this Section and the applicable provisions of that | ||||||
10 | Article. | ||||||
11 | This Section does not apply to a person who first becomes a | ||||||
12 | member or participant under Article 16 on or after the | ||||||
13 | implementation date of the plan created under Section 1-161 | ||||||
14 | for that Article, unless that person elects under subsection | ||||||
15 | (b) of Section 1-161 to instead receive the benefits provided | ||||||
16 | under this Section and the applicable provisions of that | ||||||
17 | Article. | ||||||
18 | This Section does not apply to a person who elects under | ||||||
19 | subsection (c-5) of Section 1-161 to receive the benefits | ||||||
20 | under Section 1-161. | ||||||
21 | This Section does not apply to a person who first becomes a | ||||||
22 | member or participant of an affected pension fund on or after 6 | ||||||
23 | months after the resolution or ordinance date, as defined in | ||||||
24 | Section 1-162, unless that person elects under subsection (c) | ||||||
25 | of Section 1-162 to receive the benefits provided under this | ||||||
26 | Section and the applicable provisions of the Article under |
| |||||||
| |||||||
1 | which he or she is a member or participant. | ||||||
2 | This Section does not apply to a person who participates
| ||||||
3 | in a defined contribution plan established under Section | ||||||
4 | 14-155.5. | ||||||
5 | (b) "Final average salary" means, except as otherwise | ||||||
6 | provided in this subsection, the average monthly (or annual) | ||||||
7 | salary obtained by dividing the total salary or earnings | ||||||
8 | calculated under the Article applicable to the member or | ||||||
9 | participant during the 96 consecutive months (or 8 consecutive | ||||||
10 | years) of service within the last 120 months (or 10 years) of | ||||||
11 | service in which the total salary or earnings calculated under | ||||||
12 | the applicable Article was the highest by the number of months | ||||||
13 | (or years) of service in that period. For the purposes of a | ||||||
14 | person who first becomes a member or participant of any | ||||||
15 | retirement system or pension fund to which this Section | ||||||
16 | applies on or after January 1, 2011, in this Code, "final | ||||||
17 | average 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 |
| |||||||
| |||||||
1 | him at the date of retirement or discharge". | ||||||
2 | A member of the Teachers' Retirement System of the State | ||||||
3 | of Illinois who retires on or after June 1, 2021 and for whom | ||||||
4 | the 2020-2021 school year is used in the calculation of the | ||||||
5 | member's final average salary shall use the higher of the | ||||||
6 | following for the purpose of determining the member's final | ||||||
7 | average 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 | ||||||
20 | this Code (including without limitation the calculation of | ||||||
21 | benefits and employee contributions), the annual earnings, | ||||||
22 | salary, or wages (based on the plan year) of a member or | ||||||
23 | participant to whom this Section applies shall not exceed | ||||||
24 | $106,800; however, that amount shall annually thereafter be | ||||||
25 | increased by the lesser of (i) 3% of that amount, including all | ||||||
26 | previous adjustments, or (ii) one-half the annual unadjusted |
| |||||||
| |||||||
1 | percentage increase (but not less than zero) in the consumer | ||||||
2 | price index-u
for the 12 months ending with the September | ||||||
3 | preceding each November 1, including all previous adjustments. | ||||||
4 | For the purposes of this Section, "consumer price index-u" | ||||||
5 | means
the index published by the Bureau of Labor Statistics of | ||||||
6 | the United States
Department of Labor that measures the | ||||||
7 | average change in prices of goods and
services purchased by | ||||||
8 | all urban consumers, United States city average, all
items, | ||||||
9 | 1982-84 = 100. The new amount resulting from each annual | ||||||
10 | adjustment
shall be determined by the Public Pension Division | ||||||
11 | of the Department of Insurance and made available to the | ||||||
12 | boards of the retirement systems and pension funds by November | ||||||
13 | 1 of each year. | ||||||
14 | (c) A member or participant is entitled to a retirement
| ||||||
15 | annuity upon written application if he or she has attained age | ||||||
16 | 67 (age 65, with respect to service under Article 12 that is | ||||||
17 | subject to this Section, for a member or participant under | ||||||
18 | Article 12 who first becomes a member or participant under | ||||||
19 | Article 12 on or after January 1, 2022 or who makes the | ||||||
20 | election under item (i) of subsection (d-15) of this Section) | ||||||
21 | and has at least 10 years of service credit and is otherwise | ||||||
22 | eligible under the requirements of the applicable Article. | ||||||
23 | A member or participant who has attained age 62 (age 60, | ||||||
24 | with respect to service under Article 12 that is subject to | ||||||
25 | this Section, for a member or participant under Article 12 who | ||||||
26 | first becomes a member or participant under Article 12 on or |
| |||||||
| |||||||
1 | after January 1, 2022 or who makes the election under item (i) | ||||||
2 | of subsection (d-15) of this Section) and has at least 10 years | ||||||
3 | of service credit and is otherwise eligible under the | ||||||
4 | requirements of the applicable Article may elect to receive | ||||||
5 | the lower retirement annuity provided
in subsection (d) of | ||||||
6 | this Section. | ||||||
7 | (c-5) A person who first becomes a member or a participant | ||||||
8 | subject to this Section on or after July 6, 2017 (the effective | ||||||
9 | date of Public Act 100-23), notwithstanding any other | ||||||
10 | provision of this Code to the contrary, is entitled to a | ||||||
11 | retirement annuity under Article 8 or Article 11 upon written | ||||||
12 | application if he or she has attained age 65 and has at least | ||||||
13 | 10 years of service credit and is otherwise eligible under the | ||||||
14 | requirements of Article 8 or Article 11 of this Code, | ||||||
15 | whichever is applicable. | ||||||
16 | (d) The retirement annuity of a member or participant who | ||||||
17 | is retiring after attaining age 62 (age 60, with respect to | ||||||
18 | service under Article 12 that is subject to this Section, for a | ||||||
19 | member or participant under Article 12 who first becomes a | ||||||
20 | member or participant under Article 12 on or after January 1, | ||||||
21 | 2022 or who makes the election under item (i) of subsection | ||||||
22 | (d-15) of this Section) with at least 10 years of service | ||||||
23 | credit shall be reduced by one-half
of 1% for each full month | ||||||
24 | that the member's age is under age 67 (age 65, with respect to | ||||||
25 | service under Article 12 that is subject to this Section, for a | ||||||
26 | member or participant under Article 12 who first becomes a |
| |||||||
| |||||||
1 | member or participant under Article 12 on or after January 1, | ||||||
2 | 2022 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 | ||||||
5 | Article 11 to an eligible person subject to subsection (c-5) | ||||||
6 | of this Section who is retiring at age 60 with at least 10 | ||||||
7 | years of service credit shall be reduced by one-half of 1% for | ||||||
8 | each full month that the member's age is under age 65. | ||||||
9 | (d-10) Each person who first became a member or | ||||||
10 | participant under Article 8 or Article 11 of this Code on or | ||||||
11 | after January 1, 2011 and prior to July 6, 2017 (the effective | ||||||
12 | date of Public Act 100-23) shall make an irrevocable election | ||||||
13 | either: | ||||||
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 |
| |||||||
| |||||||
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 | ||||||
5 | between October 1, 2017 and November 15, 2017. A person | ||||||
6 | subject to this subsection who makes the required election | ||||||
7 | shall remain bound by that election. A person subject to this | ||||||
8 | subsection who fails for any reason to make the required | ||||||
9 | election within the time specified in this subsection shall be | ||||||
10 | deemed to have made the election under item (ii). | ||||||
11 | (d-15) Each person who first becomes a member or | ||||||
12 | participant under Article 12 on or after January 1, 2011 and | ||||||
13 | prior to January 1, 2022 shall make an irrevocable election | ||||||
14 | either: | ||||||
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 |
| |||||||
| |||||||
1 | 12-150. | ||||||
2 | The election provided for in this subsection shall be made | ||||||
3 | between January 1, 2022 and April 1, 2022. A person subject to | ||||||
4 | this subsection who makes the required election shall remain | ||||||
5 | bound by that election. A person subject to this subsection | ||||||
6 | who fails for any reason to make the required election within | ||||||
7 | the time specified in this subsection shall be deemed to have | ||||||
8 | made the election under item (ii). | ||||||
9 | (e) Any retirement annuity or supplemental annuity shall | ||||||
10 | be subject to annual increases on the January 1 occurring | ||||||
11 | either on or after the attainment of age 67 (age 65, with | ||||||
12 | respect to service under Article 12 that is subject to this | ||||||
13 | Section, for a member or participant under Article 12 who | ||||||
14 | first becomes a member or participant under Article 12 on or | ||||||
15 | after January 1, 2022 or who makes the election under item (i) | ||||||
16 | of subsection (d-15); and beginning on July 6, 2017 (the | ||||||
17 | effective date of Public Act 100-23), age 65 with respect to | ||||||
18 | service under Article 8 or Article 11 for eligible persons | ||||||
19 | who: (i) are subject to subsection (c-5) of this Section; or | ||||||
20 | (ii) made the election under item (i) of subsection (d-10) of | ||||||
21 | this Section) or the first anniversary of the annuity start | ||||||
22 | date, whichever is later. Each annual increase shall be | ||||||
23 | calculated at 3% or one-half the annual unadjusted percentage | ||||||
24 | increase (but not less than zero) in the consumer price | ||||||
25 | index-u for the 12 months ending with the September preceding | ||||||
26 | each November 1, whichever is less, of the originally granted |
| |||||||
| |||||||
1 | retirement annuity. If the annual unadjusted percentage change | ||||||
2 | in the consumer price index-u for the 12 months ending with the | ||||||
3 | September preceding each November 1 is zero or there is a | ||||||
4 | decrease, then the annuity shall not be increased. | ||||||
5 | For the purposes of Section 1-103.1 of this Code, the | ||||||
6 | changes made to this Section by Public Act 102-263 are | ||||||
7 | applicable without regard to whether the employee was in | ||||||
8 | active service on or after August 6, 2021 (the effective date | ||||||
9 | of Public Act 102-263). | ||||||
10 | For the purposes of Section 1-103.1 of this Code, the | ||||||
11 | changes made to this Section by Public Act 100-23 are | ||||||
12 | applicable without regard to whether the employee was in | ||||||
13 | active service on or after July 6, 2017 (the effective date of | ||||||
14 | Public Act 100-23). | ||||||
15 | (f) The initial survivor's or widow's annuity of an | ||||||
16 | otherwise eligible survivor or widow of a retired member or | ||||||
17 | participant who first became a member or participant on or | ||||||
18 | after January 1, 2011 shall be in the amount of 66 2/3% of the | ||||||
19 | retired member's or participant's retirement annuity at the | ||||||
20 | date of death. In the case of the death of a member or | ||||||
21 | participant who has not retired and who first became a member | ||||||
22 | or participant on or after January 1, 2011, eligibility for a | ||||||
23 | survivor's or widow's annuity shall be determined by the | ||||||
24 | applicable Article of this Code. The initial benefit shall be | ||||||
25 | 66 2/3% of the earned annuity without a reduction due to age. A | ||||||
26 | child's annuity of an otherwise eligible child shall be in the |
| |||||||
| |||||||
1 | amount prescribed under each Article if applicable. Any | ||||||
2 | survivor's or widow's annuity shall be increased (1) on each | ||||||
3 | January 1 occurring on or after the commencement of the | ||||||
4 | annuity if
the deceased member died while receiving a | ||||||
5 | retirement annuity or (2) in
other cases, on each January 1 | ||||||
6 | occurring after the first anniversary
of the commencement of | ||||||
7 | the annuity. Each annual increase shall be calculated at 3% or | ||||||
8 | one-half the annual unadjusted percentage increase (but not | ||||||
9 | less than zero) in the consumer price index-u for the 12 months | ||||||
10 | ending with the September preceding each November 1, whichever | ||||||
11 | is less, of the originally granted survivor's annuity. If the | ||||||
12 | annual unadjusted percentage change in the consumer price | ||||||
13 | index-u for the 12 months ending with the September preceding | ||||||
14 | each November 1 is zero or there is a decrease, then the | ||||||
15 | annuity shall not be increased. | ||||||
16 | (g) The benefits in Section 14-110 apply only if the | ||||||
17 | person is a State policeman, a fire fighter in the fire | ||||||
18 | protection service of a department, a conservation police | ||||||
19 | officer, an investigator for the Secretary of State, an | ||||||
20 | investigator for the Office of the Attorney General, an arson | ||||||
21 | investigator, a Commerce Commission police officer, | ||||||
22 | investigator for the Department of Revenue or the
Illinois | ||||||
23 | Gaming Board, a security employee of the Department of | ||||||
24 | Corrections or the Department of Juvenile Justice, or a | ||||||
25 | security employee of the Department of Innovation and | ||||||
26 | Technology, as those terms are defined in subsection (b) and |
| |||||||
| |||||||
1 | subsection (c) of Section 14-110. A person who meets the | ||||||
2 | requirements of this Section is entitled to an annuity | ||||||
3 | calculated under the provisions of Section 14-110, in lieu of | ||||||
4 | the regular or minimum retirement annuity, only if the person | ||||||
5 | has withdrawn from service with not less than 20
years of | ||||||
6 | eligible creditable service and has attained age 60, | ||||||
7 | regardless of whether
the attainment of age 60 occurs while | ||||||
8 | the person is
still in service. | ||||||
9 | (h) If a person who first becomes a member or a participant | ||||||
10 | of a retirement system or pension fund subject to this Section | ||||||
11 | on or after January 1, 2011 is receiving a retirement annuity | ||||||
12 | or retirement pension under that system or fund and becomes a | ||||||
13 | member or participant under any other system or fund created | ||||||
14 | by this Code and is employed on a full-time basis, except for | ||||||
15 | those members or participants exempted from the provisions of | ||||||
16 | this Section under subsection (a) of this Section, then the | ||||||
17 | person's retirement annuity or retirement pension under that | ||||||
18 | system or fund shall be suspended during that employment. Upon | ||||||
19 | termination of that employment, the person's retirement | ||||||
20 | annuity or retirement pension payments shall resume and be | ||||||
21 | recalculated if recalculation is provided for under the | ||||||
22 | applicable Article of this Code. | ||||||
23 | If a person who first becomes a member of a retirement | ||||||
24 | system or pension fund subject to this Section on or after | ||||||
25 | January 1, 2012 and is receiving a retirement annuity or | ||||||
26 | retirement pension under that system or fund and accepts on a |
| |||||||
| |||||||
1 | contractual basis a position to provide services to a | ||||||
2 | governmental entity from which he or she has retired, then | ||||||
3 | that person's annuity or retirement pension earned as an | ||||||
4 | active employee of the employer shall be suspended during that | ||||||
5 | contractual service. A person receiving an annuity or | ||||||
6 | retirement pension under this Code shall notify the pension | ||||||
7 | fund or retirement system from which he or she is receiving an | ||||||
8 | annuity or retirement pension, as well as his or her | ||||||
9 | contractual employer, of his or her retirement status before | ||||||
10 | accepting contractual employment. A person who fails to submit | ||||||
11 | such notification shall be guilty of a Class A misdemeanor and | ||||||
12 | required to pay a fine of $1,000. Upon termination of that | ||||||
13 | contractual employment, the person's retirement annuity or | ||||||
14 | retirement pension payments shall resume and, if appropriate, | ||||||
15 | be recalculated under the applicable provisions of this Code. | ||||||
16 | (i) (Blank). | ||||||
17 | (j) In the case of a conflict between the provisions of | ||||||
18 | this Section and any other provision of this Code, the | ||||||
19 | provisions of this Section shall control.
| ||||||
20 | (Source: P.A. 101-610, eff. 1-1-20; 102-16, eff. 6-17-21; | ||||||
21 | 102-210, eff. 1-1-22; 102-263, eff. 8-6-21; 102-956, eff. | ||||||
22 | 5-27-22 .) | ||||||
23 | (40 ILCS 5/1-161) | ||||||
24 | Sec. 1-161. Optional benefits for certain Tier 2 members | ||||||
25 | under Articles 14, 15, and 16. |
| |||||||
| |||||||
1 | (a) Notwithstanding any other provision of this Code to | ||||||
2 | the contrary, the provisions of this Section apply to a person | ||||||
3 | who first becomes a member or a participant under Article 14, | ||||||
4 | 15, or 16 on or after the implementation date under this | ||||||
5 | Section for the applicable Article and who does not make the | ||||||
6 | election under subsection (b) or (c), whichever applies. The | ||||||
7 | provisions of this Section also apply to a person who makes the | ||||||
8 | election under subsection (c-5). However, the provisions of | ||||||
9 | this Section do not apply to any participant in a self-managed | ||||||
10 | plan or a defined contribution plan established under Section | ||||||
11 | 14-155.5 , nor to a covered employee under Article 14. | ||||||
12 | As used in this Section and Section 1-160, the | ||||||
13 | "implementation date" under this Section means the earliest | ||||||
14 | date upon which the board of a retirement system authorizes | ||||||
15 | members of that system to begin participating in accordance | ||||||
16 | with this Section, as determined by the board of that | ||||||
17 | retirement system. Each of the retirement systems subject to | ||||||
18 | this Section shall endeavor to make such participation | ||||||
19 | available as soon as possible after the effective date of this | ||||||
20 | Section and shall establish an implementation date by board | ||||||
21 | resolution. | ||||||
22 | (b) In lieu of the benefits provided under this Section, a | ||||||
23 | member or participant, except for a participant under Article | ||||||
24 | 15, may irrevocably elect the benefits under Section 1-160 and | ||||||
25 | the benefits otherwise applicable to that member or | ||||||
26 | participant. The election must be made within 30 days after |
| |||||||
| |||||||
1 | becoming a member or participant. Each retirement system shall | ||||||
2 | establish procedures for making this election. | ||||||
3 | (c) A participant under Article 15 may irrevocably elect | ||||||
4 | the benefits otherwise provided to a Tier 2 member under | ||||||
5 | Article 15. The election must be made within 30 days after | ||||||
6 | becoming a member. The retirement system under Article 15 | ||||||
7 | shall establish procedures for making this election. | ||||||
8 | (c-5) A non-covered participant under Article 14 to whom | ||||||
9 | Section 1-160 applies, a Tier 2 member under Article 15, or a | ||||||
10 | participant under Article 16 to whom Section 1-160 applies may | ||||||
11 | irrevocably elect to receive the benefits under this Section | ||||||
12 | in lieu of the benefits under Section 1-160 or the benefits | ||||||
13 | otherwise available to a Tier 2 member under Article 15, | ||||||
14 | whichever is applicable. Each retirement System shall | ||||||
15 | establish procedures for making this election. | ||||||
16 | (d) "Final average salary" means the average monthly (or | ||||||
17 | annual) salary obtained by dividing the total salary or | ||||||
18 | earnings calculated under the Article applicable to the member | ||||||
19 | or participant during the last 120 months (or 10 years) of | ||||||
20 | service in which the total salary or earnings calculated under | ||||||
21 | the applicable Article was the highest by the number of months | ||||||
22 | (or years) of service in that period. For the purposes of a | ||||||
23 | person to whom this Section applies, in this Code, "final | ||||||
24 | average salary" shall be substituted for "final average | ||||||
25 | compensation" in Article 14. | ||||||
26 | (e) Beginning on the implementation date, for all purposes |
| |||||||
| |||||||
1 | under this Code (including without limitation the calculation | ||||||
2 | of benefits and employee contributions), the annual earnings, | ||||||
3 | salary, compensation, or wages (based on the plan year) of a | ||||||
4 | member or participant to whom this Section applies shall not | ||||||
5 | at any time exceed the federal Social Security Wage Base then | ||||||
6 | in effect. | ||||||
7 | (f) A member or participant is entitled to a retirement
| ||||||
8 | annuity upon written application if he or she has attained the | ||||||
9 | normal retirement age determined by the Social Security | ||||||
10 | Administration for that member or participant's year of birth, | ||||||
11 | but no earlier than 67 years of age, and has at least 10 years | ||||||
12 | of service credit and is otherwise eligible under the | ||||||
13 | requirements of the applicable Article. | ||||||
14 | (g) The amount of the retirement annuity to which a member | ||||||
15 | or participant is entitled shall be computed by multiplying | ||||||
16 | 1.25% for each year of service credit by his or her final | ||||||
17 | average salary. | ||||||
18 | (h) Any retirement annuity or supplemental annuity shall | ||||||
19 | be subject to annual increases on the first anniversary of the | ||||||
20 | annuity start date. Each annual increase shall be one-half the | ||||||
21 | annual unadjusted percentage increase (but not less than zero) | ||||||
22 | in the consumer price index-w for the 12 months ending with the | ||||||
23 | September preceding each November 1 of the originally granted | ||||||
24 | retirement annuity. If the annual unadjusted percentage change | ||||||
25 | in the consumer price index-w for the 12 months ending with the | ||||||
26 | September preceding each November 1 is zero or there is a |
| |||||||
| |||||||
1 | decrease, then the annuity shall not be increased. | ||||||
2 | For the purposes of this Section, "consumer price index-w" | ||||||
3 | means the index published by the Bureau of Labor Statistics of | ||||||
4 | the United States Department of Labor that measures the | ||||||
5 | average change in prices of goods and services purchased by | ||||||
6 | Urban Wage Earners and Clerical Workers, United States city | ||||||
7 | average, all items, 1982-84 = 100. The new amount resulting | ||||||
8 | from each annual adjustment shall be determined by the Public | ||||||
9 | Pension Division of the Department of Insurance and made | ||||||
10 | available to the boards of the retirement systems and pension | ||||||
11 | funds by November 1 of each year. | ||||||
12 | (i) The initial survivor's or widow's annuity of an | ||||||
13 | otherwise eligible survivor or widow of a retired member or | ||||||
14 | participant to whom this Section applies shall be in the | ||||||
15 | amount of 66 2/3% of the retired member's or participant's | ||||||
16 | retirement annuity at the date of death. In the case of the | ||||||
17 | death of a member or participant who has not retired and to | ||||||
18 | whom this Section applies, eligibility for a survivor's or | ||||||
19 | widow's annuity shall be determined by the applicable Article | ||||||
20 | of this Code. The benefit shall be 66 2/3% of the earned | ||||||
21 | annuity without a reduction due to age. A child's annuity of an | ||||||
22 | otherwise eligible child shall be in the amount prescribed | ||||||
23 | under each Article if applicable. | ||||||
24 | (j) In lieu of any other employee contributions, except | ||||||
25 | for the contribution to the defined contribution plan under | ||||||
26 | subsection (k) of this Section, each employee shall contribute |
| |||||||
| |||||||
1 | 6.2% of his her or salary to the retirement system. However, | ||||||
2 | the employee contribution under this subsection shall not | ||||||
3 | exceed the amount of the total normal cost of the benefits for | ||||||
4 | all members making contributions under this Section (except | ||||||
5 | for the defined contribution plan under subsection (k) of this | ||||||
6 | Section), expressed as a percentage of payroll and certified | ||||||
7 | on or before January 15 of each year by the board of trustees | ||||||
8 | of the retirement system. If the board of trustees of the | ||||||
9 | retirement system certifies that the 6.2% employee | ||||||
10 | contribution rate exceeds the normal cost of the benefits | ||||||
11 | under this Section (except for the defined contribution plan | ||||||
12 | under subsection (k) of this Section), then on or before | ||||||
13 | December 1 of that year, the board of trustees shall certify | ||||||
14 | the amount of the normal cost of the benefits under this | ||||||
15 | Section (except for the defined contribution plan under | ||||||
16 | subsection (k) of this Section), expressed as a percentage of | ||||||
17 | payroll, to the State Actuary and the Commission on Government | ||||||
18 | Forecasting and Accountability, and the employee contribution | ||||||
19 | under this subsection shall be reduced to that amount | ||||||
20 | beginning July 1 of that year. Thereafter, if the normal cost | ||||||
21 | of the benefits under this Section (except for the defined | ||||||
22 | contribution plan under subsection (k) of this Section), | ||||||
23 | expressed as a percentage of payroll and certified on or | ||||||
24 | before January 1 of each year by the board of trustees of the | ||||||
25 | retirement system, exceeds 6.2% of salary, then on or before | ||||||
26 | January 15 of that year, the board of trustees shall certify |
| |||||||
| |||||||
1 | the normal cost to the State Actuary and the Commission on | ||||||
2 | Government Forecasting and Accountability, and the employee | ||||||
3 | contributions shall revert back to 6.2% of salary beginning | ||||||
4 | January 1 of the following year. | ||||||
5 | (k) In accordance with each retirement system's | ||||||
6 | implementation date, each retirement system under Article 14, | ||||||
7 | 15, or 16 shall prepare and implement a defined contribution | ||||||
8 | plan for members or participants who are subject to this | ||||||
9 | Section. The defined contribution plan developed under this | ||||||
10 | subsection shall be a plan that aggregates employer and | ||||||
11 | employee contributions in individual participant accounts | ||||||
12 | which, after meeting any other requirements, are used for | ||||||
13 | payouts after retirement in accordance with this subsection | ||||||
14 | and any other applicable laws. | ||||||
15 | (1) Each member or participant shall contribute a | ||||||
16 | minimum of 4% of his or her salary to the defined | ||||||
17 | contribution plan. | ||||||
18 | (2) For each participant in the defined contribution | ||||||
19 | plan who has been employed with the same employer for at | ||||||
20 | least one year, employer contributions shall be paid into | ||||||
21 | that participant's accounts at a rate expressed as a | ||||||
22 | percentage of salary. This rate may be set for individual | ||||||
23 | employees, but shall be no higher than 6% of salary and | ||||||
24 | shall be no lower than 2% of salary. | ||||||
25 | (3) Employer contributions shall vest when those | ||||||
26 | contributions are paid into a member's or participant's |
| |||||||
| |||||||
1 | account. | ||||||
2 | (4) The defined contribution plan shall provide a | ||||||
3 | variety of options for investments. These options shall | ||||||
4 | include investments handled by the Illinois State Board of | ||||||
5 | Investment as well as private sector investment options. | ||||||
6 | (5) The defined contribution plan shall provide a | ||||||
7 | variety of options for payouts to retirees and their | ||||||
8 | survivors. | ||||||
9 | (6) To the extent authorized under federal law and as | ||||||
10 | authorized by the retirement system, the defined | ||||||
11 | contribution plan shall allow former participants in the | ||||||
12 | plan to transfer or roll over employee and employer | ||||||
13 | contributions, and the earnings thereon, into other | ||||||
14 | qualified retirement plans. | ||||||
15 | (7) Each retirement system shall reduce the employee | ||||||
16 | contributions credited to the member's defined | ||||||
17 | contribution plan account by an amount determined by that | ||||||
18 | retirement system to cover the cost of offering the | ||||||
19 | benefits under this subsection and any applicable | ||||||
20 | administrative fees. | ||||||
21 | (8) No person shall begin participating in the defined | ||||||
22 | contribution plan until it has attained qualified plan | ||||||
23 | status and received all necessary approvals from the U.S. | ||||||
24 | Internal Revenue Service. | ||||||
25 | (l) In the case of a conflict between the provisions of | ||||||
26 | this Section and any other provision of this Code, the |
| |||||||
| |||||||
1 | provisions of this Section shall control.
| ||||||
2 | (Source: P.A. 100-23, eff. 7-6-17.)
| ||||||
3 | (40 ILCS 5/14-103.05) (from Ch. 108 1/2, par. 14-103.05)
| ||||||
4 | Sec. 14-103.05. Employee.
| ||||||
5 | (a) Except as provided in subsection (e), any Any person | ||||||
6 | employed by a Department who receives salary
for personal | ||||||
7 | services rendered to the Department on a warrant
issued | ||||||
8 | pursuant to a payroll voucher certified by a Department and | ||||||
9 | drawn
by the State Comptroller upon the State Treasurer, | ||||||
10 | including an elected
official described in subparagraph (d) of | ||||||
11 | Section 14-104, shall become
an employee for purpose of | ||||||
12 | membership in the Retirement System on the
first day of such | ||||||
13 | employment.
| ||||||
14 | A person entering service on or after January 1, 1972 and | ||||||
15 | prior to January
1, 1984 shall become a member as a condition | ||||||
16 | of employment and shall begin
making contributions as of the | ||||||
17 | first day of employment.
| ||||||
18 | A person entering service on or after January 1, 1984 | ||||||
19 | shall, upon completion
of 6 months of continuous service which | ||||||
20 | is not interrupted by a break of more
than 2 months, become a | ||||||
21 | member as a condition of employment. Contributions
shall begin | ||||||
22 | the first of the month after completion of the qualifying | ||||||
23 | period.
| ||||||
24 | A person employed by the Chicago Metropolitan Agency for | ||||||
25 | Planning on the effective date of this amendatory Act of the |
| |||||||
| |||||||
1 | 95th General Assembly who was a member of this System as an | ||||||
2 | employee of the Chicago Area Transportation Study and makes an | ||||||
3 | election under Section 14-104.13 to participate in this System | ||||||
4 | for his or her employment with the Chicago Metropolitan Agency | ||||||
5 | for Planning.
| ||||||
6 | The qualifying period of 6 months of service is not | ||||||
7 | applicable to: (1)
a person who has been granted credit for | ||||||
8 | service in a position covered by
the State Universities | ||||||
9 | Retirement System, the Teachers' Retirement System
of the | ||||||
10 | State of Illinois, the General Assembly Retirement System, or | ||||||
11 | the
Judges Retirement System of Illinois unless that service | ||||||
12 | has been forfeited
under the laws of those systems; (2) a | ||||||
13 | person entering service on or
after July 1, 1991 in a | ||||||
14 | noncovered position; (3) a person to whom Section
14-108.2a or | ||||||
15 | 14-108.2b applies; or (4) a person to whom subsection (a-5) of | ||||||
16 | this Section applies.
| ||||||
17 | (a-5) Except as provided in subsection (e), a A person | ||||||
18 | entering service on or after December 1, 2010 and before the | ||||||
19 | effective date of this amendatory Act of the 103rd General | ||||||
20 | Assembly shall become a member as a condition of employment | ||||||
21 | and shall begin making contributions as of the first day of | ||||||
22 | employment. A person serving in the qualifying period on | ||||||
23 | December 1, 2010 will become a member on December 1, 2010 and | ||||||
24 | shall begin making contributions as of December 1, 2010. | ||||||
25 | (b) The term "employee" does not include the following:
| ||||||
26 | (1) members of the State Legislature, and persons |
| |||||||
| |||||||
1 | electing to become
members of the General Assembly | ||||||
2 | Retirement System pursuant to Section 2-105;
| ||||||
3 | (2) incumbents of offices normally filled by vote of | ||||||
4 | the people;
| ||||||
5 | (3) except as otherwise provided in this Section, any | ||||||
6 | person
appointed by the Governor with the advice and | ||||||
7 | consent
of the Senate unless that person elects to | ||||||
8 | participate in this system;
| ||||||
9 | (3.1) any person serving as a commissioner of an | ||||||
10 | ethics commission created under the State Officials and | ||||||
11 | Employees Ethics Act unless that person elects to | ||||||
12 | participate in this system with respect to that service as | ||||||
13 | a commissioner;
| ||||||
14 | (3.2) any person serving as a part-time employee in | ||||||
15 | any of the following positions: Legislative Inspector | ||||||
16 | General, Special Legislative Inspector General, employee | ||||||
17 | of the Office of the Legislative Inspector General, | ||||||
18 | Executive Director of the Legislative Ethics Commission, | ||||||
19 | or staff of the Legislative Ethics Commission, regardless | ||||||
20 | of whether he or she is in active service on or after July | ||||||
21 | 8, 2004 (the effective date of Public Act 93-685), unless | ||||||
22 | that person elects to participate in this System with | ||||||
23 | respect to that service; in this item (3.2), a "part-time | ||||||
24 | employee" is a person who is not required to work at least | ||||||
25 | 35 hours per week; | ||||||
26 | (3.3) any person who has made an election under |
| |||||||
| |||||||
1 | Section 1-123 and who is serving either as legal counsel | ||||||
2 | in the Office of the Governor or as Chief Deputy Attorney | ||||||
3 | General;
| ||||||
4 | (4) except as provided in Section 14-108.2 or | ||||||
5 | 14-108.2c, any person
who is covered or eligible to be | ||||||
6 | covered by the Teachers' Retirement System of
the State of | ||||||
7 | Illinois, the State Universities Retirement System, or the | ||||||
8 | Judges
Retirement System of Illinois;
| ||||||
9 | (5) an employee of a municipality or any other | ||||||
10 | political subdivision
of the State;
| ||||||
11 | (6) any person who becomes an employee after June 30, | ||||||
12 | 1979 as a
public service employment program participant | ||||||
13 | under the Federal
Comprehensive Employment and Training | ||||||
14 | Act and whose wages or fringe
benefits are paid in whole or | ||||||
15 | in part by funds provided under such Act;
| ||||||
16 | (7) enrollees of the Illinois Young Adult Conservation | ||||||
17 | Corps program,
administered by the Department of Natural | ||||||
18 | Resources, authorized grantee
pursuant to Title VIII of | ||||||
19 | the "Comprehensive Employment and Training Act of
1973", | ||||||
20 | 29 USC 993, as now or hereafter amended;
| ||||||
21 | (8) enrollees and temporary staff of programs | ||||||
22 | administered by the
Department of Natural Resources under | ||||||
23 | the Youth
Conservation Corps Act of 1970;
| ||||||
24 | (9) any person who is a member of any professional | ||||||
25 | licensing or
disciplinary board created under an Act | ||||||
26 | administered by the Department of
Professional Regulation |
| |||||||
| |||||||
1 | or a successor agency or created or re-created
after the | ||||||
2 | effective date of this amendatory Act of 1997, and who | ||||||
3 | receives
per diem compensation rather than a salary, | ||||||
4 | notwithstanding that such per diem
compensation is paid by | ||||||
5 | warrant issued pursuant to a payroll voucher; such
persons | ||||||
6 | have never been included in the membership of this System, | ||||||
7 | and this
amendatory Act of 1987 (P.A. 84-1472) is not | ||||||
8 | intended to effect any change in
the status of such | ||||||
9 | persons;
| ||||||
10 | (10) any person who is a member of the Illinois Health | ||||||
11 | Care Cost
Containment Council, and receives per diem | ||||||
12 | compensation rather than a
salary, notwithstanding that | ||||||
13 | such per diem compensation is paid by warrant
issued | ||||||
14 | pursuant to a payroll voucher; such persons have never | ||||||
15 | been included
in the membership of this System, and this | ||||||
16 | amendatory Act of 1987 is not
intended to effect any | ||||||
17 | change in the status of such persons;
| ||||||
18 | (11) any person who is a member of the Oil and Gas | ||||||
19 | Board created by
Section 1.2 of the Illinois Oil and Gas | ||||||
20 | Act, and receives per diem
compensation rather than a | ||||||
21 | salary, notwithstanding that such per diem
compensation is | ||||||
22 | paid by warrant issued pursuant to a payroll voucher;
| ||||||
23 | (12) a person employed by the State Board of Higher | ||||||
24 | Education in a position with the Illinois Century Network | ||||||
25 | as of June 30, 2004, who remains continuously employed | ||||||
26 | after that date by the Department of Central Management |
| |||||||
| |||||||
1 | Services in a position with the Illinois Century Network | ||||||
2 | and participates in the Article 15 system with respect to | ||||||
3 | that employment;
| ||||||
4 | (13) any person who first becomes a member of the | ||||||
5 | Civil Service Commission on or after January 1, 2012; | ||||||
6 | (14) any person, other than the Director of Employment | ||||||
7 | Security, who first becomes a member of the Board of | ||||||
8 | Review of the Department of Employment Security on or | ||||||
9 | after January 1, 2012; | ||||||
10 | (15) any person who first becomes a member of the | ||||||
11 | Civil Service Commission on or after January 1, 2012; | ||||||
12 | (16) any person who first becomes a member of the | ||||||
13 | Illinois Liquor Control Commission on or after January 1, | ||||||
14 | 2012; | ||||||
15 | (17) any person who first becomes a member of the | ||||||
16 | Secretary of State Merit Commission on or after January 1, | ||||||
17 | 2012; | ||||||
18 | (18) any person who first becomes a member of the | ||||||
19 | Human Rights Commission on or after January 1, 2012 unless | ||||||
20 | he or she is eligible to participate in accordance with | ||||||
21 | subsection (d) of this Section; | ||||||
22 | (19) any person who first becomes a member of the | ||||||
23 | State Mining Board on or after January 1, 2012; | ||||||
24 | (20) any person who first becomes a member of the | ||||||
25 | Property Tax Appeal Board on or after January 1, 2012; | ||||||
26 | (21) any person who first becomes a member of the |
| |||||||
| |||||||
1 | Illinois Racing Board on or after January 1, 2012; | ||||||
2 | (22) any person who first becomes a member of the | ||||||
3 | Illinois State Police Merit Board on or after January 1, | ||||||
4 | 2012; | ||||||
5 | (23) any person who first becomes a member of the | ||||||
6 | Illinois State Toll Highway Authority on or after January | ||||||
7 | 1, 2012; or | ||||||
8 | (24) any person who first becomes a member of the | ||||||
9 | Illinois State Board of Elections on or after January 1, | ||||||
10 | 2012. | ||||||
11 | (c) An individual who represents or is employed as an | ||||||
12 | officer or employee of a statewide labor organization that | ||||||
13 | represents members of this System may participate in the | ||||||
14 | System and shall be deemed an employee, provided that (1) the | ||||||
15 | individual has previously earned creditable service under this | ||||||
16 | Article, (2) the individual files with the System an | ||||||
17 | irrevocable election to become a participant within 6 months | ||||||
18 | after the effective date of this amendatory Act of the 94th | ||||||
19 | General Assembly, and (3) the individual does not receive | ||||||
20 | credit for that employment under any other provisions of this | ||||||
21 | Code. An employee under this subsection (c) is responsible for | ||||||
22 | paying to the System both (i) employee contributions based on | ||||||
23 | the actual compensation received for service with the labor | ||||||
24 | organization and (ii) employer contributions based on the | ||||||
25 | percentage of payroll certified by the board; all or any part | ||||||
26 | of these contributions may be paid on the employee's behalf or |
| |||||||
| |||||||
1 | picked up for tax purposes (if authorized under federal law) | ||||||
2 | by the labor organization. | ||||||
3 | A person who is an employee as defined in this subsection | ||||||
4 | (c) may establish service credit for similar employment prior | ||||||
5 | to becoming an employee under this subsection by paying to the | ||||||
6 | System for that employment the contributions specified in this | ||||||
7 | subsection, plus interest at the effective rate from the date | ||||||
8 | of service to the date of payment. However, credit shall not be | ||||||
9 | granted under this subsection (c) for any such prior | ||||||
10 | employment for which the applicant received credit under any | ||||||
11 | other provision of this Code or during which the applicant was | ||||||
12 | on a leave of absence.
| ||||||
13 | (d) A person appointed as a member of the Human Rights | ||||||
14 | Commission on or after June 1, 2019 may elect to participate in | ||||||
15 | the System and shall be deemed an employee. Service and | ||||||
16 | contributions shall begin on the first payroll period | ||||||
17 | immediately following the employee's election to participate | ||||||
18 | in the System. | ||||||
19 | A person who is an employee as described in this | ||||||
20 | subsection (d) may establish service credit for employment as | ||||||
21 | a Human Rights Commissioner that occurred on or after June 1, | ||||||
22 | 2019 and before establishing service under this subsection by | ||||||
23 | paying to the System for that employment the contributions | ||||||
24 | specified in paragraph (1) of subsection (a) of Section | ||||||
25 | 14-133, plus regular interest from the date of service to the | ||||||
26 | date of payment. |
| |||||||
| |||||||
1 | (e) Notwithstanding any other provision of this Article, a | ||||||
2 | person who first becomes an employee after the effective date | ||||||
3 | of this amendatory Act of the 103rd General Assembly is not | ||||||
4 | required, as a condition of employment or otherwise, to | ||||||
5 | participate in this System. An employee may elect not to | ||||||
6 | participate in this System by notifying the System in a manner | ||||||
7 | specified by the System. | ||||||
8 | (Source: P.A. 101-10, eff. 6-5-19; 102-538, eff. 8-20-21.)
| ||||||
9 | (40 ILCS 5/14-103.41) | ||||||
10 | Sec. 14-103.41. Tier 1 member ; Tier 2 member; defined | ||||||
11 | contribution plan member . "Tier 1 member": A member of this | ||||||
12 | System who first became a member or participant before January | ||||||
13 | 1, 2011 under any reciprocal retirement system or pension fund | ||||||
14 | established under this Code other than a retirement system or | ||||||
15 | pension fund established under Article 2, 3, 4, 5, 6, or 18 of | ||||||
16 | this Code.
| ||||||
17 | In the case of a Tier 1 member who elects to participate in
| ||||||
18 | the defined contribution plan under Section 14-155.5 of this | ||||||
19 | Code, that Tier
1 member shall be deemed a Tier 1 member only | ||||||
20 | with respect to
service performed or established before the | ||||||
21 | effective date of
that election. | ||||||
22 | "Tier 2 member": A member of this System who first becomes | ||||||
23 | a member under this Article on or after January 1, 2011 and who | ||||||
24 | is not a Tier 1 member. | ||||||
25 | In the case of a Tier 2 member who elects to participate in |
| |||||||
| |||||||
1 | the defined contribution plan under Section 14-155.5 of this | ||||||
2 | Code, that Tier 2 member shall be deemed a Tier 2 member only | ||||||
3 | with respect to service performed or established before the | ||||||
4 | effective date of that election. | ||||||
5 | "Defined contribution plan member": A Tier 1 or Tier 2 | ||||||
6 | member who elects to participate in the defined contribution | ||||||
7 | plan under Section 14-155.5 of this Code, but only with | ||||||
8 | respect to service performed on or after the effective date of | ||||||
9 | that election. | ||||||
10 | (Source: P.A. 100-587, eff. 6-4-18.) | ||||||
11 | (40 ILCS 5/14-152.1) | ||||||
12 | Sec. 14-152.1. Application and expiration of new benefit | ||||||
13 | increases. | ||||||
14 | (a) As used in this Section, "new benefit increase" means | ||||||
15 | an increase in the amount of any benefit provided under this | ||||||
16 | Article, or an expansion of the conditions of eligibility for | ||||||
17 | any benefit under this Article, that results from an amendment | ||||||
18 | to this Code that takes effect after June 1, 2005 (the | ||||||
19 | effective date of Public Act 94-4). "New benefit increase", | ||||||
20 | however, does not include any benefit increase resulting from | ||||||
21 | the changes made to Article 1 or this Article by Public Act | ||||||
22 | 96-37, Public Act 100-23, Public Act 100-587, Public Act | ||||||
23 | 100-611, Public Act 101-10, Public Act 101-610, Public Act | ||||||
24 | 102-210, Public Act 102-856, Public Act 102-956, or this | ||||||
25 | amendatory Act of the 103rd General Assembly or this |
| |||||||
| |||||||
1 | amendatory Act of the 102nd General Assembly .
| ||||||
2 | (b) Notwithstanding any other provision of this Code or | ||||||
3 | any subsequent amendment to this Code, every new benefit | ||||||
4 | increase is subject to this Section and shall be deemed to be | ||||||
5 | granted only in conformance with and contingent upon | ||||||
6 | compliance with the provisions of this Section.
| ||||||
7 | (c) The Public Act enacting a new benefit increase must | ||||||
8 | identify and provide for payment to the System of additional | ||||||
9 | funding at least sufficient to fund the resulting annual | ||||||
10 | increase in cost to the System as it accrues. | ||||||
11 | Every new benefit increase is contingent upon the General | ||||||
12 | Assembly providing the additional funding required under this | ||||||
13 | subsection. The Commission on Government Forecasting and | ||||||
14 | Accountability shall analyze whether adequate additional | ||||||
15 | funding has been provided for the new benefit increase and | ||||||
16 | shall report its analysis to the Public Pension Division of | ||||||
17 | the Department of Insurance. A new benefit increase created by | ||||||
18 | a Public Act that does not include the additional funding | ||||||
19 | required under this subsection is null and void. If the Public | ||||||
20 | Pension Division determines that the additional funding | ||||||
21 | provided for a new benefit increase under this subsection is | ||||||
22 | or has become inadequate, it may so certify to the Governor and | ||||||
23 | the State Comptroller and, in the absence of corrective action | ||||||
24 | by the General Assembly, the new benefit increase shall expire | ||||||
25 | at the end of the fiscal year in which the certification is | ||||||
26 | made.
|
| |||||||
| |||||||
1 | (d) Every new benefit increase shall expire 5 years after | ||||||
2 | its effective date or on such earlier date as may be specified | ||||||
3 | in the language enacting the new benefit increase or provided | ||||||
4 | under subsection (c). This does not prevent the General | ||||||
5 | Assembly from extending or re-creating a new benefit increase | ||||||
6 | by law. | ||||||
7 | (e) Except as otherwise provided in the language creating | ||||||
8 | the new benefit increase, a new benefit increase that expires | ||||||
9 | under this Section continues to apply to persons who applied | ||||||
10 | and qualified for the affected benefit while the new benefit | ||||||
11 | increase was in effect and to the affected beneficiaries and | ||||||
12 | alternate payees of such persons, but does not apply to any | ||||||
13 | other person, including, without limitation, a person who | ||||||
14 | continues in service after the expiration date and did not | ||||||
15 | apply and qualify for the affected benefit while the new | ||||||
16 | benefit increase was in effect.
| ||||||
17 | (Source: P.A. 101-10, eff. 6-5-19; 101-81, eff. 7-12-19; | ||||||
18 | 101-610, eff. 1-1-20; 102-210, eff. 7-30-21; 102-856, eff. | ||||||
19 | 1-1-23; 102-956, eff. 5-27-22 .) | ||||||
20 | (40 ILCS 5/14-155.5 new) | ||||||
21 | Sec. 14-155.5. Defined contribution plan. | ||||||
22 | (a) As used in this Section, "defined benefit plan" means | ||||||
23 | the retirement plan available under this Article to Tier 1 or | ||||||
24 | Tier 2 members who have not made the election authorized under | ||||||
25 | this Section. |
| |||||||
| |||||||
1 | (b) By July 1, 2025, the System shall prepare and
| ||||||
2 | implement a defined contribution plan. The defined
| ||||||
3 | contribution plan developed under this Section shall be a plan
| ||||||
4 | that aggregates State and employee contributions in individual
| ||||||
5 | participant accounts that, after meeting any other
| ||||||
6 | requirements, are used for payouts after retirement in
| ||||||
7 | accordance with this Section and any other applicable laws. | ||||||
8 | (1) Participation in the defined contribution plan for | ||||||
9 | persons who elect to participate shall begin on July 1, | ||||||
10 | 2025. | ||||||
11 | (2) A participant in the defined contribution plan | ||||||
12 | shall pay employee contributions at a rate determined by | ||||||
13 | the participant, but not less than 3% of compensation and | ||||||
14 | not more than a percentage of compensation determined by | ||||||
15 | the board in accordance with the requirements of State and | ||||||
16 | federal law. | ||||||
17 | (3) State contributions shall be paid into the | ||||||
18 | accounts of all participants in the defined contribution | ||||||
19 | plan at a uniform rate, expressed as a percentage of | ||||||
20 | compensation and determined for each year. This rate shall | ||||||
21 | be no higher than 7.6% of compensation and shall be no | ||||||
22 | lower than 3% of compensation. The State shall adjust this | ||||||
23 | rate annually. | ||||||
24 | (4) The defined contribution plan shall require 5 | ||||||
25 | years of participation in the defined contribution plan | ||||||
26 | before vesting in State contributions. If the participant |
| |||||||
| |||||||
1 | fails to vest in them, the State contributions, and the | ||||||
2 | earnings thereon, shall be forfeited. | ||||||
3 | (5) The defined contribution plan may provide for | ||||||
4 | participants in the plan to be eligible for the defined | ||||||
5 | disability benefits available to other participants under | ||||||
6 | this Article. If it does, the System shall reduce the | ||||||
7 | employee contributions credited to the member's defined | ||||||
8 | contribution plan account by an amount determined by the | ||||||
9 | System to cover the cost of offering such benefits. | ||||||
10 | (6) The defined contribution plan shall provide a | ||||||
11 | variety of options for investments. These options shall | ||||||
12 | include investments handled by the Illinois State Board of | ||||||
13 | Investment as well as private sector investment options. | ||||||
14 | (7) The defined contribution plan shall provide a | ||||||
15 | variety of options for payouts to participants in the | ||||||
16 | defined contribution plan who are no longer active in the | ||||||
17 | System and their survivors. | ||||||
18 | (8) To the extent authorized under federal law and as | ||||||
19 | authorized by the System, the plan shall allow former | ||||||
20 | participants in the plan to transfer or roll over employee | ||||||
21 | and vested State contributions, and the earnings thereon, | ||||||
22 | from the defined contribution plan into other qualified | ||||||
23 | retirement plans. | ||||||
24 | (9) The System shall reduce the employee contributions | ||||||
25 | credited to the member's defined contribution plan account | ||||||
26 | by an amount determined by the System to cover the cost of |
| |||||||
| |||||||
1 | offering these benefits and any applicable administrative | ||||||
2 | fees. | ||||||
3 | (b) Under the defined contribution plan, an active Tier 1 | ||||||
4 | or Tier 2 member of this System may elect, in writing, to cease | ||||||
5 | accruing benefits in the defined benefit plan and begin | ||||||
6 | accruing benefits for future service in the defined | ||||||
7 | contribution plan. The election to participate in the defined | ||||||
8 | contribution plan is voluntary and irrevocable and must be | ||||||
9 | made on or before December 31, 2024. | ||||||
10 | (1) Service credit under the defined contribution plan | ||||||
11 | may be used for determining retirement eligibility under | ||||||
12 | the defined benefit plan. | ||||||
13 | (2) On or before December 31, 2023, the System shall | ||||||
14 | notify all active Tier 1 and Tier 2 members who are | ||||||
15 | eligible to participate in the defined contribution plan. | ||||||
16 | The System shall mail information describing the option to | ||||||
17 | join the defined contribution plan to each of these | ||||||
18 | employees to his or her last known address on file with the | ||||||
19 | System. If the employee is not responsive to other means | ||||||
20 | of contact, it is sufficient for the System to publish the | ||||||
21 | details of the option on its website. | ||||||
22 | (3) If a person becomes an active participant of this | ||||||
23 | System on or after January 1, 2024, the System shall | ||||||
24 | notify the participant within one month after he or she | ||||||
25 | became an active participant that he or she is eligible to | ||||||
26 | participate in the defined contribution plan. The notice |
| |||||||
| |||||||
1 | shall be provided in the manner specified in paragraph (2) | ||||||
2 | of this subsection. | ||||||
3 | (4) Upon request for further information describing | ||||||
4 | the option, the System shall provide employees with | ||||||
5 | information from the System before exercising the option | ||||||
6 | to join the plan, including information on the impact to | ||||||
7 | their benefits and service. The individual consultation | ||||||
8 | shall include projections of the member's defined benefits | ||||||
9 | at retirement or earlier termination of service and the | ||||||
10 | value of the member's account at retirement or earlier | ||||||
11 | termination of service. The System shall not provide | ||||||
12 | advice or counseling with respect to whether the employee | ||||||
13 | should exercise the option. The System shall inform Tier 1 | ||||||
14 | and Tier 2 members who are eligible to participate in the | ||||||
15 | defined contribution plan that they may also wish to | ||||||
16 | obtain information and counsel relating to their option | ||||||
17 | from any other available source, including but not limited | ||||||
18 | to labor organizations, private counsel, and financial | ||||||
19 | advisors. | ||||||
20 | (c) A Tier 1 or Tier 2 member who elects to participate in | ||||||
21 | the defined contribution plan may irrevocably elect to | ||||||
22 | terminate all participation in the defined benefit plan. Upon | ||||||
23 | that election, the System shall transfer to the member's | ||||||
24 | individual account an amount equal to the amount of | ||||||
25 | contribution refund that the member would be eligible to | ||||||
26 | receive if the member terminated employment on that date and |
| |||||||
| |||||||
1 | elected a refund of contributions, including regular interest | ||||||
2 | for the respective years. The System shall make the transfer | ||||||
3 | as a tax-free transfer in accordance with Internal Revenue | ||||||
4 | Service guidelines, for purposes of funding the amount | ||||||
5 | credited to the member's individual account. | ||||||
6 | (d) In no event shall the System, its staff, its | ||||||
7 | authorized representatives, or the Board be liable for any | ||||||
8 | information given to an employee under this Section. The | ||||||
9 | System may coordinate with the Department of Central | ||||||
10 | Management Services in accordance with this amendatory Act of | ||||||
11 | the 103rd General Assembly to provide information concerning | ||||||
12 | the impact of the defined contribution plan set forth in this | ||||||
13 | Section. | ||||||
14 | (e) Notwithstanding any other provision of this Section, | ||||||
15 | no person shall begin participating in the defined | ||||||
16 | contribution plan until it has attained qualified plan status | ||||||
17 | and received all necessary approvals from the U.S. Internal | ||||||
18 | Revenue Service. | ||||||
19 | (f) The System shall report on its progress under this | ||||||
20 | Section, including the available details of the defined | ||||||
21 | contribution plan and the System's plans for informing | ||||||
22 | eligible Tier 1 and Tier 2 members about the plan, to the | ||||||
23 | Governor and the General Assembly on or before January 15, | ||||||
24 | 2025. | ||||||
25 | (g) The Illinois State Board of Investment shall be the | ||||||
26 | plan sponsor for the defined contribution plan established |
| |||||||
| |||||||
1 | under this Section. | ||||||
2 | (h) The intent of this amendatory Act of the 103rd General | ||||||
3 | Assembly is to ensure that the State's normal cost of | ||||||
4 | participation in the defined contribution plan is similar, and | ||||||
5 | if possible equal, to the State's normal cost of participation | ||||||
6 | in the defined benefit plan, unless a lower State's normal | ||||||
7 | cost is necessary to ensure cost neutrality.
| ||||||
8 | (40 ILCS 5/20-121) (from Ch. 108 1/2, par. 20-121)
| ||||||
9 | (Text of Section WITHOUT the changes made by P.A. 98-599, | ||||||
10 | which has been held unconstitutional)
| ||||||
11 | Sec. 20-121. Calculation of proportional retirement | ||||||
12 | annuities. | ||||||
13 | (a) Upon
retirement of the employee, a proportional | ||||||
14 | retirement annuity shall be computed
by each participating | ||||||
15 | system in which pension credit has been established on
the | ||||||
16 | basis of pension credits under each system. The computation | ||||||
17 | shall be in
accordance with the formula or method prescribed | ||||||
18 | by each participating system
which is in effect at the date of | ||||||
19 | the employee's latest withdrawal from service
covered by any | ||||||
20 | of the systems in which he has pension credits which he elects
| ||||||
21 | to have considered under this Article. However, the amount of | ||||||
22 | any retirement
annuity payable under the self-managed plan | ||||||
23 | established under Section 15-158.2
of this Code depends solely | ||||||
24 | on the value of the participant's vested account
balances and | ||||||
25 | is not subject to any proportional adjustment under this
|
| |||||||
| |||||||
1 | Section.
| ||||||
2 | (a-5) For persons who participate in a defined | ||||||
3 | contribution plan established under Article 14 of this Code to | ||||||
4 | whom the provisions of this Article apply, the pension credits | ||||||
5 | established under the defined contribution plan may be | ||||||
6 | considered in
determining eligibility for or the amount of the | ||||||
7 | defined benefit retirement annuity that is
payable by any | ||||||
8 | other participating system. | ||||||
9 | (b) Combined pension credit under all retirement systems | ||||||
10 | subject to this
Article shall be considered in determining | ||||||
11 | whether the minimum qualification
has been met and the formula | ||||||
12 | or method of computation which shall be applied , except as may | ||||||
13 | be otherwise provided with respect to vesting in State or | ||||||
14 | employer contributions in a defined contribution plan .
If a | ||||||
15 | system has a step-rate formula for calculation of the | ||||||
16 | retirement annuity,
pension credits covering previous service | ||||||
17 | which have been established under
another system shall be | ||||||
18 | considered in determining which range or ranges of
the | ||||||
19 | step-rate formula are to be applicable to the employee.
| ||||||
20 | (c) Interest on pension credit shall continue to | ||||||
21 | accumulate in accordance with
the provisions of the law | ||||||
22 | governing the retirement system in which the same
has been | ||||||
23 | established during the time an employee is in the service of | ||||||
24 | another
employer, on the assumption such employee, for | ||||||
25 | interest purposes for pension
credit, is continuing in the | ||||||
26 | service covered by such retirement system.
|
| |||||||
| |||||||
1 | (Source: P.A. 91-887, eff. 7-6-00.)
| ||||||
2 | (40 ILCS 5/20-123) (from Ch. 108 1/2, par. 20-123)
| ||||||
3 | (Text of Section WITHOUT the changes made by P.A. 98-599, | ||||||
4 | which has been held unconstitutional)
| ||||||
5 | Sec. 20-123. Survivor's annuity. The provisions governing | ||||||
6 | a retirement
annuity shall be applicable to a survivor's | ||||||
7 | annuity. Appropriate credits shall
be established for | ||||||
8 | survivor's annuity purposes in those participating systems
| ||||||
9 | which provide survivor's annuities, according to the same | ||||||
10 | conditions and
subject to the same limitations and | ||||||
11 | restrictions herein prescribed for a
retirement annuity. If a | ||||||
12 | participating system has no survivor's annuity
benefit, or if | ||||||
13 | the survivor's annuity benefit under that system is waived,
| ||||||
14 | pension credit established in that system shall not be | ||||||
15 | considered
in determining eligibility for or the amount of the | ||||||
16 | survivor's annuity which
may be payable by any other | ||||||
17 | participating system.
| ||||||
18 | For persons who participate in the self-managed plan | ||||||
19 | established under
Section 15-158.2 or the portable benefit | ||||||
20 | package established under Section
15-136.4, pension credit | ||||||
21 | established under Article 15 may be considered in
determining | ||||||
22 | eligibility for or the amount of the survivor's annuity that | ||||||
23 | is
payable by any other participating system, but pension | ||||||
24 | credit established in
any other system shall not result in any | ||||||
25 | right to a survivor's annuity under
the Article 15 system.
|
| |||||||
| |||||||
1 | For persons who participate in a defined contribution plan | ||||||
2 | established under Article 14 of this Code to whom the | ||||||
3 | provisions of this Article apply, the pension credits | ||||||
4 | established under the defined contribution plan may be | ||||||
5 | considered in
determining eligibility for or the amount of the | ||||||
6 | defined benefit survivor's annuity that is
payable by any | ||||||
7 | other participating system, but pension credits established in
| ||||||
8 | any other system shall not result in any right to or increase | ||||||
9 | in the value of a survivor's annuity under
the defined | ||||||
10 | contribution plan, which depends solely on the options chosen | ||||||
11 | and the value of the participant's vested account
balances and | ||||||
12 | is not subject to any proportional adjustment under this
| ||||||
13 | Section. | ||||||
14 | (Source: P.A. 91-887, eff. 7-6-00.)
| ||||||
15 | (40 ILCS 5/20-124) (from Ch. 108 1/2, par. 20-124)
| ||||||
16 | (Text of Section WITHOUT the changes made by P.A. 98-599, | ||||||
17 | which has been held unconstitutional)
| ||||||
18 | Sec. 20-124. Maximum benefits. | ||||||
19 | (a) In no event shall the combined retirement
or survivors | ||||||
20 | annuities exceed the highest annuity which would have been | ||||||
21 | payable
by any participating system in which the employee has | ||||||
22 | pension credits, if all
of his pension credits had been | ||||||
23 | validated in that system.
| ||||||
24 | If the combined annuities should exceed the highest | ||||||
25 | maximum as determined
in accordance with this Section, the |
| |||||||
| |||||||
1 | respective annuities shall be reduced
proportionately | ||||||
2 | according to the ratio which the amount of each proportional
| ||||||
3 | annuity bears to the aggregate of all such annuities.
| ||||||
4 | (b) In the case of a participant in the self-managed plan | ||||||
5 | established under
Section 15-158.2 of this Code to whom the | ||||||
6 | provisions of this Article apply:
| ||||||
7 | (i) For purposes of calculating the combined | ||||||
8 | retirement annuity and
the proportionate reduction, if | ||||||
9 | any, in a retirement annuity other than one
payable under | ||||||
10 | the self-managed plan, the amount of the Article 15 | ||||||
11 | retirement
annuity shall be deemed to be the highest | ||||||
12 | annuity to which the annuitant would
have been entitled if | ||||||
13 | he or she had participated in the traditional benefit
| ||||||
14 | package as defined in Section 15-103.1 rather than the | ||||||
15 | self-managed plan.
| ||||||
16 | (ii) For purposes of calculating the combined | ||||||
17 | survivor's annuity and
the proportionate reduction, if | ||||||
18 | any, in a survivor's annuity other than one
payable under | ||||||
19 | the self-managed plan, the amount of the Article 15 | ||||||
20 | survivor's
annuity shall be deemed to be the highest | ||||||
21 | survivor's annuity to which the
survivor would have been | ||||||
22 | entitled if the deceased employee had participated in
the | ||||||
23 | traditional benefit package as defined in Section 15-103.1 | ||||||
24 | rather than the
self-managed plan.
| ||||||
25 | (iii) Benefits payable under the self-managed plan are | ||||||
26 | not subject to
proportionate reduction under this Section.
|
| |||||||
| |||||||
1 | (c) In the case of a participant in a defined contribution | ||||||
2 | plan established under
Article 14 of this Code to whom the | ||||||
3 | provisions of this Article apply: | ||||||
4 | (i) For purposes of calculating the combined | ||||||
5 | retirement annuity and
the proportionate reduction, if | ||||||
6 | any, in a defined benefit retirement annuity, any benefit | ||||||
7 | payable under the defined contribution plan shall not be | ||||||
8 | considered. | ||||||
9 | (ii) For purposes of calculating the combined | ||||||
10 | survivor's annuity and
the proportionate reduction, if | ||||||
11 | any, in a defined benefit survivor's annuity, any benefit | ||||||
12 | payable under the defined contribution plan shall not be | ||||||
13 | considered. | ||||||
14 | (iii) Benefits payable under a defined contribution | ||||||
15 | plan established under Article 14 of this Code are not | ||||||
16 | subject to
proportionate reduction under this Section. | ||||||
17 | (Source: P.A. 91-887, eff. 7-6-00.)
| ||||||
18 | (40 ILCS 5/20-125) (from Ch. 108 1/2, par. 20-125)
| ||||||
19 | (Text of Section WITHOUT the changes made by P.A. 98-599, | ||||||
20 | which has been held unconstitutional)
| ||||||
21 | Sec. 20-125. Return to employment - suspension of | ||||||
22 | benefits. If a retired
employee returns to employment which is | ||||||
23 | covered by a system from which he is
receiving a proportional | ||||||
24 | annuity under this Article, his proportional annuity
from all | ||||||
25 | participating systems shall be suspended during the period of
|
| |||||||
| |||||||
1 | re-employment, except that this suspension does not apply to | ||||||
2 | any
distributions payable under the self-managed plan | ||||||
3 | established under Section
15-158.2 of this Code or under a | ||||||
4 | defined contribution plan established under Article 14 of this | ||||||
5 | Code .
| ||||||
6 | The provisions of the Article under which such employment | ||||||
7 | would be
covered shall govern the determination of whether the | ||||||
8 | employee has returned
to employment, and if applicable the | ||||||
9 | exemption of temporary employment or
employment not exceeding | ||||||
10 | a specified duration or frequency, for all
participating | ||||||
11 | systems from which the retired employee is receiving a
| ||||||
12 | proportional annuity under this Article, notwithstanding any | ||||||
13 | contrary
provisions in the other Articles governing such | ||||||
14 | systems.
| ||||||
15 | (Source: P.A. 91-887, eff. 7-6-00.)
| ||||||
16 | Section 99. Effective date. This Act takes effect upon | ||||||
17 | becoming law.
|