Rep. Michael J. Madigan

Filed: 6/12/2013

 

 


 

 


 
09800SB2404ham001LRB098 09018 JDS 46840 a

1
AMENDMENT TO SENATE BILL 2404

2    AMENDMENT NO. ______. Amend Senate Bill 2404 by replacing
3everything after the enacting clause with the following:
 
4    "Section 1. Statement and Findings.
5    At the time of passage of this amendatory Act of the 98th
6General Assembly, Illinois possesses a lower credit rating than
7each of the other 49 states. This is a consequence both of
8atypically large debts and of structural imbalances that will,
9unless addressed by the General Assembly, lead to rapidly
10growing debts. The debts include a backlog of bills exceeding
11one-fourth of the State's annual general revenue, and
12approximately $100 billion in unfunded pension liabilities.
13The structural imbalances result from projected growth in
14non-discretionary and formula-driven expenses that
15significantly outpace projected revenue growth. Of the factors
16that drive this phenomenon, the most substantial by far is the
17rapid growth of the annual pension payment, which increased by

 

 

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1nearly $1 billion between Fiscal Year 2012 and Fiscal Year
22013, and will again increase by nearly $1 billion between
3Fiscal Year 2013 and Fiscal Year 2014, at which time it will
4consume approximately one-fifth of anticipated general
5revenue.
6    The State has taken significant action to ameliorate the
7State's fiscal troubles. In 2011, the State increased the
8income tax in Public Act 96-1496. Recognizing that increased
9revenue alone would not solve the problem, the State has
10enacted a series of budgets that included deep cuts to
11discretionary programs, including programs that are essential
12in order to provide for the health, safety, welfare, and
13educational development of the people of Illinois.
14    The State has both reduced the size of its workforce and
15reduced discretionary spending. The staffing level is now the
16lowest it has been in at least the last 25 years. Discretionary
17spending from the General Revenue Fund (GRF) has been reduced
18by over $2.8 billion since Fiscal Year 2009, including
19significant reductions for primary and secondary education,
20higher education, public safety, and human services, including
21health care for the poor.
22    In 2010, Public Act 96-889 established a package of pension
23benefits for new employees that has been determined to be among
24the least expensive public employee retirement schemes in the
25country. It can be argued that the new package of pension
26benefits has placed government employers at a competitive

 

 

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1disadvantage, and our public universities, which are vital
2educational and economic institutions, have been exposed to a
3significant risk.
4    In the spring of 2012, the General Assembly made
5significant reductions to the Medicaid program in Public Acts
697-687, 97-688, 97-689, 97-690, and 97-691, a series of reforms
7to the Medicaid program that is projected to reduce State debt
8by decreasing services, increasing the rate of taxation of
9tobacco purchases, and accessing available federal funds. The
10reductions include the elimination of a prescription drug
11program for low to middle income seniors, provider rate cuts,
12elimination of health care for adults whose families make above
13133% of the federal poverty limit ($31,322 for a family of
14four), elimination of restorative dental treatments for adults
15covered by Medicaid, and utilization limits on all remaining
16services covered by Medicaid. While the Medicaid reforms will
17result in savings for the State, these reforms have resulted in
18the denial of crucial health care to hundreds of thousands of
19needy citizens, threatening to further destabilize an
20already-troubled safety net.
21    The General Assembly took significant steps to reduce the
22cost of current and retired employee health care costs. With
23Public Act 97-695, the General Assembly eliminated provisions
24that require that retired state employees with more than 20
25years of service receive a 100% premium subsidy for retiree
26health care coverage after 20 years of service. Beginning with

 

 

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1Fiscal Year 2014, State employees will be required to
2contribute significantly more toward healthcare premiums,
3copays, and deductibles. However, the backlog of payments to
4providers is estimated to be nearly $1.8 billion at the end of
5Fiscal Year 2013, and providers will continue to experience a
6delayed payment cycle.
7    Notwithstanding these and many other steps and their major
8fiscal, economic, and human impact, the fiscal situation in
9Illinois continues to deteriorate. Cuts as well as the
10inability to pay bills due and owing have had a significant
11impact on each branch of government, units of local government,
12social service providers, and other vendors.
13    Two-thirds of Illinois school districts are deficit
14spending, even after layoffs and programmatic reductions. For
15Fiscal Year 2013, General State Aid payments to school
16districts are currently being prorated at 89% of the calculated
17amount. For Fiscal Year 2014, the Governor's introduced level
18of General State Aid payments would result in a proration of
1982%.
20    Cuts to the budget of the Department of Corrections have
21resulted in the closing of two major prisons and three Adult
22Transitional Centers. Similarly, the Department of Juvenile
23Justice was forced to close two youth centers. Funding for
24probation services to help break the cycle of recidivism and
25improve public safety has steadily declined over the past 5
26years due to the fiscal strain on the state budget.

 

 

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1    Consequently, the coming months and years will necessarily
2see much more action by the State to achieve fiscal
3stabilization. If these steps toward fiscal stabilization do
4not include pension reform to restrain the growth of the annual
5pension payment, the result will be devastating and dramatic
6cuts to education, public safety, human services, and
7transportation. The impact of such actions on the Illinois
8economy, and on the health, safety, welfare, and educational
9development of the people, would likely be extremely severe.
10This harm could include significant economic contraction,
11which would in turn exacerbate the underlying fiscal challenge.
12    The General Assembly has held numerous hearings and
13reviewed hundreds of documents detailing the State's pension
14liability problem, probable solutions, and constitutional
15issues with proposed reform. Given that and all of the above:
16    The General Assembly finds that the fiscal crisis in the
17State of Illinois jeopardizes the health, safety, and welfare
18of the people and compromises the ability to maintain a
19representative and orderly government.
20    The General Assembly finds that the pension liability is so
21great, and the State's fiscal condition is so challenged, that
22it is doubtful whether any set of actions by the State that do
23not include substantial reforms to its pension systems can
24result in the full payment of all promised benefits.
25    The General Assembly finds that in order to truly solve the
26State's pension problem, a reform measure must render the

 

 

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1pension liability affordable on an actuarially sound funding
2schedule, and it must commit the State to maintaining this
3schedule.
4    The General Assembly finds that the reforms in this
5amendatory Act of the 98th General Assembly are necessary to
6address the fiscal crisis without incurring further severe and
7irreparable harm to the public welfare.
8    The General Assembly finds that this amendatory Act of the
998th General Assembly constitutes the substantial reform of the
10State's pension systems that, along with a series of further
11steps toward fiscal stabilization, will enable the State to
12credibly promise the full and timely payment of all pension
13benefits without incurring unacceptable harm to other areas of
14State interest.
15    The General Assembly finds that this amendatory Act of the
1698th General Assembly, with its significant cost-savings, its
17institution of an actuarially accepted payment schedule, and
18its historic funding commitment, is reasonable and necessary in
19order to meet these goals and solve the State's pension
20problem.
 
21    Section 3. The Illinois Public Labor Relations Act is
22amended by changing Sections 4 and 15 and adding Section 7.5 as
23follows:
 
24    (5 ILCS 315/4)  (from Ch. 48, par. 1604)

 

 

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1    Sec. 4. Management Rights. Employers shall not be required
2to bargain over matters of inherent managerial policy, which
3shall include such areas of discretion or policy as the
4functions of the employer, standards of services, its overall
5budget, the organizational structure and selection of new
6employees, examination techniques and direction of employees.
7Employers, however, shall be required to bargain collectively
8with regard to policy matters directly affecting wages, hours
9and terms and conditions of employment as well as the impact
10thereon upon request by employee representatives, except as
11provided in Section 7.5.
12    To preserve the rights of employers and exclusive
13representatives which have established collective bargaining
14relationships or negotiated collective bargaining agreements
15prior to the effective date of this Act, employers shall be
16required to bargain collectively with regard to any matter
17concerning wages, hours or conditions of employment about which
18they have bargained for and agreed to in a collective
19bargaining agreement prior to the effective date of this Act,
20except as provided in Section 7.5.
21    The chief judge of the judicial circuit that employs a
22public employee who is a court reporter, as defined in the
23Court Reporters Act, has the authority to hire, appoint,
24promote, evaluate, discipline, and discharge court reporters
25within that judicial circuit.
26    Nothing in this amendatory Act of the 94th General Assembly

 

 

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1shall be construed to intrude upon the judicial functions of
2any court. This amendatory Act of the 94th General Assembly
3applies only to nonjudicial administrative matters relating to
4the collective bargaining rights of court reporters.
5(Source: P.A. 94-98, eff. 7-1-05.)
 
6    (5 ILCS 315/7.5 new)
7    Sec. 7.5. Duty to bargain regarding pension amendments.
8Notwithstanding any other provision of this Act, employers
9shall not be required to bargain over matters affected by the
10changes, the impact of changes, and the implementation of
11changes made to Article 14, 15, or 16 of the Illinois Pension
12Code, or to Article 1 of that Code as it applies to those
13Articles, by this amendatory Act of the 98th General Assembly
14or over any other provision of Article 14, 15, or 16 of the
15Illinois Pension Code, or of Article 1 of that Code as it
16applies to those Articles, which are prohibited subjects of
17bargaining; nor shall the changes, the impact of changes, or
18the implementation of changes made to Article 14, 15, or 16 of
19the Illinois Pension Code, or to Article 1 of that Code as it
20applies to those Articles, by this amendatory Act of the 98th
21General Assembly or any other provision of Article 14, 15, or
2216 of the Illinois Pension Code, or of Article 1 of that Code
23as it applies to those Articles, be subject to interest
24arbitration or any award issued pursuant to interest
25arbitration. The provisions of this Section shall not apply to

 

 

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1an employment contract or collective bargaining agreement that
2is in effect on the effective date of this amendatory Act of
3the 98th General Assembly and has not been amended, renewed, or
4terminated after that date.
5    In case of any conflict between this Section and any other
6provisions of this Act or any other law, the provisions of this
7Section shall control.
 
8    (5 ILCS 315/15)  (from Ch. 48, par. 1615)
9    Sec. 15. Act Takes Precedence.
10    (a) In case of any conflict between the provisions of this
11Act and any other law (other than Section 5 of the State
12Employees Group Insurance Act of 1971 and other than the
13changes made to the Illinois Pension Code by Public Act 96-889
14and other than as provided in Section 7.5 this amendatory Act
15of the 96th General Assembly), executive order or
16administrative regulation relating to wages, hours and
17conditions of employment and employment relations, the
18provisions of this Act or any collective bargaining agreement
19negotiated thereunder shall prevail and control. Nothing in
20this Act shall be construed to replace or diminish the rights
21of employees established by Sections 28 and 28a of the
22Metropolitan Transit Authority Act, Sections 2.15 through 2.19
23of the Regional Transportation Authority Act. The provisions of
24this Act are subject to Section 7.5 of this Act and Section 5
25of the State Employees Group Insurance Act of 1971. Nothing in

 

 

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1this Act shall be construed to replace the necessity of
2complaints against a sworn peace officer, as defined in Section
32(a) of the Uniform Peace Officer Disciplinary Act, from having
4a complaint supported by a sworn affidavit.
5    (b) Except as provided in subsection (a) above, any
6collective bargaining contract between a public employer and a
7labor organization executed pursuant to this Act shall
8supersede any contrary statutes, charters, ordinances, rules
9or regulations relating to wages, hours and conditions of
10employment and employment relations adopted by the public
11employer or its agents. Any collective bargaining agreement
12entered into prior to the effective date of this Act shall
13remain in full force during its duration.
14    (c) It is the public policy of this State, pursuant to
15paragraphs (h) and (i) of Section 6 of Article VII of the
16Illinois Constitution, that the provisions of this Act are the
17exclusive exercise by the State of powers and functions which
18might otherwise be exercised by home rule units. Such powers
19and functions may not be exercised concurrently, either
20directly or indirectly, by any unit of local government,
21including any home rule unit, except as otherwise authorized by
22this Act.
23(Source: P.A. 95-331, eff. 8-21-07; 96-889, eff. 1-1-11.)
 
24    Section 5. The Governor's Office of Management and Budget
25Act is amended by changing Sections 7 and 8 as follows:
 

 

 

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1    (20 ILCS 3005/7)  (from Ch. 127, par. 417)
2    Sec. 7. All statements and estimates of expenditures
3submitted to the Office in connection with the preparation of a
4State budget, and any other estimates of expenditures,
5supporting requests for appropriations, shall be formulated
6according to the various functions and activities for which the
7respective department, office or institution of the State
8government (including the elective officers in the executive
9department and including the University of Illinois and the
10judicial department) is responsible. All such statements and
11estimates of expenditures relating to a particular function or
12activity shall be further formulated or subject to analysis in
13accordance with the following classification of objects:
14    (1) Personal services
15    (2) State contribution for employee group insurance
16    (3) Contractual services
17    (4) Travel
18    (5) Commodities
19    (6) Equipment
20    (7) Permanent improvements
21    (8) Land
22    (9) Electronic Data Processing
23    (10) Telecommunication services
24    (11) Operation of Automotive Equipment
25    (12) Contingencies

 

 

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1    (13) Reserve
2    (14) Interest
3    (15) Awards and Grants
4    (16) Debt Retirement
5    (17) Non-cost Charges.
6    (18) State retirement contribution for annual normal cost
7    (19) State retirement contribution for unfunded accrued
8liability.
9(Source: P.A. 93-25, eff. 6-20-03.)
 
10    (20 ILCS 3005/8)  (from Ch. 127, par. 418)
11    Sec. 8. When used in connection with a State budget or
12expenditure or estimate, items (1) through (16) in the
13classification of objects stated in Section 7 shall have the
14meanings ascribed to those items in Sections 14 through 24.7,
15respectively, of the State Finance Act. "An Act in relation to
16State finance", approved June 10, 1919, as amended.
17    When used in connection with a State budget or expenditure
18or estimate, items (18) and (19) in the classification of
19objects stated in Section 7 shall have the meanings ascribed to
20those items in Sections 24.12 and 24.13, respectively, of the
21State Finance Act.
22(Source: P.A. 82-325.)
 
23    Section 10. The State Finance Act is amended by changing
24Section 13 and by adding Sections 24.12 and 24.13 as follows:
 

 

 

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1    (30 ILCS 105/13)  (from Ch. 127, par. 149)
2    Sec. 13. The objects and purposes for which appropriations
3are made are classified and standardized by items as follows:
4    (1) Personal services;
5    (2) State contribution for employee group insurance;
6    (3) Contractual services;
7    (4) Travel;
8    (5) Commodities;
9    (6) Equipment;
10    (7) Permanent improvements;
11    (8) Land;
12    (9) Electronic Data Processing;
13    (10) Operation of automotive equipment;
14    (11) Telecommunications services;
15    (12) Contingencies;
16    (13) Reserve;
17    (14) Interest;
18    (15) Awards and Grants;
19    (16) Debt Retirement;
20    (17) Non-Cost Charges;
21    (18) State retirement contribution for annual normal cost;
22    (19) State retirement contribution for unfunded accrued
23liability;
24    (20) (18) Purchase Contract for Real Estate.
25    When an appropriation is made to an officer, department,

 

 

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1institution, board, commission or other agency, or to a private
2association or corporation, in one or more of the items above
3specified, such appropriation shall be construed in accordance
4with the definitions and limitations specified in this Act,
5unless the appropriation act otherwise provides.
6    An appropriation for a purpose other than one specified and
7defined in this Act may be made only as an additional, separate
8and distinct item, specifically stating the object and purpose
9thereof.
10(Source: P.A. 84-263; 84-264.)
 
11    (30 ILCS 105/24.12 new)
12    Sec. 24.12. "State retirement contribution for annual
13normal cost" defined. The term "State retirement contribution
14for annual normal cost" means the portion of the total required
15State contribution to a retirement system for a fiscal year
16that represents the State's portion of the System's projected
17normal cost for that fiscal year, as determined and certified
18by the board of trustees of the retirement system in
19conformance with the applicable provisions of the Illinois
20Pension Code.
 
21    (30 ILCS 105/24.13 new)
22    Sec. 24.13. "State retirement contribution for unfunded
23accrued liability" defined. The term "State retirement
24contribution for unfunded accrued liability" means the portion

 

 

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1of the total required State contribution to a retirement system
2for a fiscal year that is not included in the State retirement
3contribution for annual normal cost.
 
4    Section 15. The Budget Stabilization Act is amended by
5changing Sections 20 and 25 as follows:
 
6    (30 ILCS 122/20)
7    Sec. 20. Pension Stabilization Fund.
8    (a) The Pension Stabilization Fund is hereby created as a
9special fund in the State treasury. Moneys in the fund shall be
10used for the sole purpose of making payments to the designated
11retirement systems as provided in Section 25.
12    (b) For each fiscal year when the General Assembly's
13appropriations and transfers or diversions as required by law
14from general funds do not exceed 99% of the estimated general
15funds revenues pursuant to subsection (a) of Section 10, the
16Comptroller shall transfer from the General Revenue Fund as
17provided by this Section a total amount equal to 0.5% of the
18estimated general funds revenues to the Pension Stabilization
19Fund.
20    (c) For each fiscal year through State fiscal year 2014,
21when the General Assembly's appropriations and transfers or
22diversions as required by law from general funds do not exceed
2398% of the estimated general funds revenues pursuant to
24subsection (b) of Section 10, the Comptroller shall transfer

 

 

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1from the General Revenue Fund as provided by this Section a
2total amount equal to 1.0% of the estimated general funds
3revenues to the Pension Stabilization Fund.
4    (c-10) In State fiscal year 2020 and each fiscal year
5thereafter until terminated under subsection (c-15), the State
6Comptroller shall order transferred and the State Treasurer
7shall transfer $1,000,000,000 from the General Revenue Fund to
8the Pension Stabilization Fund.
9    (c-15) The transfers made pursuant to subsection (c-10) of
10this Section shall terminate at the end of State fiscal year
112045 or when each of the designated retirement systems, as
12defined in Section 25, has achieved the funding ratio
13prescribed by law for that retirement system, whichever occurs
14first.
15    (d) The Comptroller shall transfer 1/12 of the total amount
16to be transferred each fiscal year under this Section into the
17Pension Stabilization Fund on the first day of each month of
18that fiscal year or as soon thereafter as possible; except that
19the final transfer of the fiscal year shall be made as soon as
20practical after the August 31 following the end of the fiscal
21year.
22    Until State fiscal year 2015, before Before the final
23transfer for a fiscal year is made, the Comptroller shall
24reconcile the estimated general funds revenues used in
25calculating the other transfers under this Section for that
26fiscal year with the actual general funds revenues for that

 

 

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

 

 

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1designated retirement systems. The amount deposited shall be
2apportioned among the designated retirement systems in the same
3proportion as their respective portions of the total actuarial
4reserve deficiency of the designated retirement systems, as
5most recently determined by the Governor's Office of Management
6and Budget. Amounts received by a designated retirement system
7under this Section shall be used for funding the unfunded
8liabilities of the retirement system. Payments under this
9Section are authorized by the continuing appropriation under
10Section 1.7 of the State Pension Funds Continuing Appropriation
11Act.
12    (c) At the request of the State Comptroller, the Governor's
13Office of Management and Budget shall determine the individual
14and total actuarial reserve deficiencies of the designated
15retirement systems. For this purpose, the Governor's Office of
16Management and Budget shall consider the latest available audit
17and actuarial reports of each of the retirement systems and the
18relevant reports and statistics of the Public Pension Division
19of the Department of Financial and Professional Regulation.
20    (d) Payments to the designated retirement systems under
21this Section shall be in addition to, and not in lieu of, any
22State contributions required under Section 2-124, 14-131,
2315-155, 16-158, or 18-131 of the Illinois Pension Code.
24    Payments to the designated retirement systems under this
25Section, transferred after the effective date of this
26amendatory Act of the 98th General Assembly, do not reduce and

 

 

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1do not constitute payment of any portion of the required State
2contribution under Article 2, 14, 15, 16, or 18 of the Illinois
3Pension Code in that fiscal year. Such amounts shall not
4reduce, and shall not be included in the calculation of, the
5required State contribution under Article 2, 14, 15, 16, or 18
6of the Illinois Pension Code in any future year, until the
7designated retirement system has received payment of
8contributions pursuant to this Act.
9(Source: P.A. 94-839, eff. 6-6-06.)
 
10    Section 20. The Illinois Pension Code is amended by
11changing Sections 1-103.3, 2-108, 2-108.1, 2-119, 2-119.1,
122-121.1, 2-124, 2-125, 2-126, 2-134, 2-162, 7-109, 7-114,
137-116, 7-139, 9-219, 9-220, 14-103.10, 14-104.3, 14-106,
1414-107, 14-108, 14-110, 14-114, 14-131, 14-132, 14-133,
1514-135.08, 14-152.1, 15-106, 15-107, 15-111, 15-112, 15-113.4,
1615-113.7, 15-125, 15-135, 15-136, 15-155, 15-156, 15-157,
1715-165, 15-198, 16-106, 16-121, 16-127, 16-132, 16-133,
1816-133.1, 16-152, 16-158, 16-158.1, 16-203, 17-116, and 17-134
19and by adding Sections 2-105.1, 2-105.2, 2-126.5, 14-103.40,
2014-103.41, 14-133.5 15-107.1, 15-107.2, 15-157.5, 16-106.4,
2116-106.5, 16-152.5, and 16-158.2 as follows:
 
22    (40 ILCS 5/1-103.3)
23    Sec. 1-103.3. Application of 1994 amendment; funding
24standard.

 

 

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1    (a) The provisions of Public Act 88-593 this amendatory Act
2of 1994 that change the method of calculating, certifying, and
3paying the required State contributions to the retirement
4systems established under Articles 2, 14, 15, 16, and 18 shall
5first apply to the State contributions required for State
6fiscal year 1996.
7    (b) (Blank) The General Assembly declares that a funding
8ratio (the ratio of a retirement system's total assets to its
9total actuarial liabilities) of 90% is an appropriate goal for
10State-funded retirement systems in Illinois, and it finds that
11a funding ratio of 90% is now the generally-recognized norm
12throughout the nation for public employee retirement systems
13that are considered to be financially secure and funded in an
14appropriate and responsible manner.
15    (c) Every 5 years, beginning in 1999, the Commission on
16Government Forecasting and Accountability, in consultation
17with the affected retirement systems and the Governor's Office
18of Management and Budget (formerly Bureau of the Budget), shall
19consider and determine whether the funding goals 90% funding
20ratio adopted in Articles 2, 14, 15, 16, and 18 of this Code
21continue subsection (b) continues to represent an appropriate
22funding goals goal for those State-funded retirement systems in
23Illinois, and it shall report its findings and recommendations
24on this subject to the Governor and the General Assembly.
25(Source: P.A. 93-1067, eff. 1-15-05.)
 

 

 

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1    (40 ILCS 5/2-105.1 new)
2    Sec. 2-105.1. Tier I participant. "Tier I participant": A
3participant who first became a participant before January 1,
42011.
 
5    (40 ILCS 5/2-105.2 new)
6    Sec. 2-105.2. Tier I retiree. "Tier I retiree" means a
7former Tier I participant who is receiving a retirement
8annuity.
 
9    (40 ILCS 5/2-108)  (from Ch. 108 1/2, par. 2-108)
10    Sec. 2-108. Salary. "Salary": (1) For members of the
11General Assembly, the total compensation paid to the member by
12the State for one year of service, including the additional
13amounts, if any, paid to the member as an officer pursuant to
14Section 1 of "An Act in relation to the compensation and
15emoluments of the members of the General Assembly", approved
16December 6, 1907, as now or hereafter amended.
17    (2) For the State executive officers specified in Section
182-105, the total compensation paid to the member for one year
19of service.
20    (3) For members of the System who are participants under
21Section 2-117.1, or who are serving as Clerk or Assistant Clerk
22of the House of Representatives or Secretary or Assistant
23Secretary of the Senate, the total compensation paid to the
24member for one year of service, but not to exceed the salary of

 

 

09800SB2404ham001- 22 -LRB098 09018 JDS 46840 a

1the highest salaried officer of the General Assembly.
2    However, in the event that federal law results in any
3participant receiving imputed income based on the value of
4group term life insurance provided by the State, such imputed
5income shall not be included in salary for the purposes of this
6Article.
7    Notwithstanding any other provision of this Code, the
8salary of a participant for the purposes of this Code shall not
9exceed, for periods of service in a term of office beginning on
10or after the effective date of this amendatory Act of the 98th
11General Assembly, the greater of (i) the limitation determined
12from time to time under subsection (b-5) of Section 1-160 of
13this Code for persons subject to that Section or (ii) the
14annual salary of the participant during the 365 days
15immediately preceding that effective date.
16    
17(Source: P.A. 86-27; 86-273; 86-1028; 86-1488.)
 
18    (40 ILCS 5/2-108.1)  (from Ch. 108 1/2, par. 2-108.1)
19    Sec. 2-108.1. Highest salary for annuity purposes.
20    (a) "Highest salary for annuity purposes" means whichever
21of the following is applicable to the participant:
22    Except as otherwise provided below, for For a participant
23who first becomes a participant of this System before August
2410, 2009 (the effective date of Public Act 96-207):
25        (1) For a participant who is a member of the General

 

 

09800SB2404ham001- 23 -LRB098 09018 JDS 46840 a

1    Assembly on his or her last day of service: the highest
2    salary that is prescribed by law, on the participant's last
3    day of service, for a member of the General Assembly who is
4    not an officer; plus, if the participant was elected or
5    appointed to serve as an officer of the General Assembly
6    for 2 or more years and has made contributions as required
7    under subsection (d) of Section 2-126, the highest
8    additional amount of compensation prescribed by law, at the
9    time of the participant's service as an officer, for
10    members of the General Assembly who serve in that office.
11        (2) For a participant who holds one of the State
12    executive offices specified in Section 2-105 on his or her
13    last day of service: the highest salary prescribed by law
14    for service in that office on the participant's last day of
15    service.
16        (3) For a participant who is Clerk or Assistant Clerk
17    of the House of Representatives or Secretary or Assistant
18    Secretary of the Senate on his or her last day of service:
19    the salary received for service in that capacity on the
20    last day of service, but not to exceed the highest salary
21    (including additional compensation for service as an
22    officer) that is prescribed by law on the participant's
23    last day of service for the highest paid officer of the
24    General Assembly.
25        (4) For a participant who is a continuing participant
26    under Section 2-117.1 on his or her last day of service:

 

 

09800SB2404ham001- 24 -LRB098 09018 JDS 46840 a

1    the salary received for service in that capacity on the
2    last day of service, but not to exceed the highest salary
3    (including additional compensation for service as an
4    officer) that is prescribed by law on the participant's
5    last day of service for the highest paid officer of the
6    General Assembly.
7    Except as otherwise provided below, for For a participant
8who first becomes a participant of this System on or after
9August 10, 2009 (the effective date of Public Act 96-207) and
10before January 1, 2011 (the effective date of Public Act
1196-889), the average monthly salary obtained by dividing the
12total salary of the participant during the period of: (1) the
1348 consecutive months of service within the last 120 months of
14service in which the total compensation was the highest, or (2)
15the total period of service, if less than 48 months, by the
16number of months of service in that period.
17    Except as otherwise provided below, for For a participant
18who first becomes a participant of this System on or after
19January 1, 2011 (the effective date of Public Act 96-889), the
20average monthly salary obtained by dividing the total salary of
21the participant during the 96 consecutive months of service
22within the last 120 months of service in which the total
23compensation was the highest by the number of months of service
24in that period; however, for periods of service in a term of
25office beginning on or after January 1, 2011 and before the
26effective date of this amendatory Act of the 98th General

 

 

09800SB2404ham001- 25 -LRB098 09018 JDS 46840 a

1Assembly, the highest salary for annuity purposes may not
2exceed $106,800, except that that amount shall annually
3thereafter be increased by the lesser of (i) 3% of that amount,
4including all previous adjustments, or (ii) the annual
5unadjusted percentage increase (but not less than zero) in the
6consumer price index-u for the 12 months ending with the
7September preceding each November 1. "Consumer price index-u"
8means the index published by the Bureau of Labor Statistics of
9the United States Department of Labor that measures the average
10change in prices of goods and services purchased by all urban
11consumers, United States city average, all items, 1982-84 =
12100. The new amount resulting from each annual adjustment shall
13be determined by the Public Pension Division of the Department
14of Insurance and made available to the Board by November 1 of
15each year until there is no longer any such participant who is
16in service in a term of office that began before the effective
17date of this amendatory Act of the 98th General Assembly.
18    Notwithstanding any other provision of this Section, in
19determining the highest salary for annuity purposes of a
20participant who is in service in a term of office beginning on
21or after the effective date of this amendatory Act of the 98th
22General Assembly, the participant's salary for periods of
23service in a term of office beginning on or after that
24effective date shall not exceed the greater of (i) the
25limitation on salary determined from time to time under
26subsection (b-5) of Section 1-160 of this Code for persons

 

 

09800SB2404ham001- 26 -LRB098 09018 JDS 46840 a

1subject to that Section or (ii) the annual salary of the
2participant during the 365 days immediately preceding that
3effective date.
4    (b) The earnings limitations of subsection (a) apply to
5earnings under any other participating system under the
6Retirement Systems Reciprocal Act that are considered in
7calculating a proportional annuity under this Article, except
8in the case of a person who first became a member of this
9System before August 22, 1994 and has not, on or after the
10effective date of this amendatory Act of the 97th General
11Assembly, irrevocably elected to have those limitations apply.
12The limitations of subsection (a) shall apply, however, to
13earnings under any other participating system under the
14Retirement Systems Reciprocal Act that are considered in
15calculating the proportional annuity of a person who first
16became a member of this System before August 22, 1994 if, on or
17after the effective date of this amendatory Act of the 97th
18General Assembly, that member irrevocably elects to have those
19limitations apply.
20    (c) In calculating the subsection (a) earnings limitation
21to be applied to earnings under any other participating system
22under the Retirement Systems Reciprocal Act for the purpose of
23calculating a proportional annuity under this Article, the
24participant's last day of service shall be deemed to mean the
25last day of service in any participating system from which the
26person has applied for a proportional annuity under the

 

 

09800SB2404ham001- 27 -LRB098 09018 JDS 46840 a

1Retirement Systems Reciprocal Act.
2(Source: P.A. 96-207, eff. 8-10-09; 96-889, eff. 1-1-11;
396-1490, eff. 1-1-11; 97-967, eff. 8-16-12.)
 
4    (40 ILCS 5/2-119)  (from Ch. 108 1/2, par. 2-119)
5    Sec. 2-119. Retirement annuity - conditions for
6eligibility.
7    (a) A participant whose service as a member is terminated,
8regardless of age or cause, is entitled to a retirement annuity
9beginning on the date specified by the participant in a written
10application subject to the following conditions:
11        1. The date the annuity begins does not precede the
12    date of final termination of service, or is not more than
13    30 days before the receipt of the application by the board
14    in the case of annuities based on disability or one year
15    before the receipt of the application in the case of
16    annuities based on attained age;
17        2. The participant meets one of the following
18    eligibility requirements:
19        For a participant who first becomes a participant of
20    this System before January 1, 2011 (the effective date of
21    Public Act 96-889):
22            (A) He or she has attained age 55 and has at least
23        8 years of service credit;
24            (B) He or she has attained age 62 and terminated
25        service after July 1, 1971 with at least 4 years of

 

 

09800SB2404ham001- 28 -LRB098 09018 JDS 46840 a

1        service credit; or
2            (C) He or she has completed 8 years of service and
3        has become permanently disabled and as a consequence,
4        is unable to perform the duties of his or her office.
5        For a participant who first becomes a participant of
6    this System on or after January 1, 2011 (the effective date
7    of Public Act 96-889), he or she has attained age 67 and
8    has at least 8 years of service credit.
9    (a-5) Notwithstanding subsection (a) of this Section, for a
10Tier I participant who begins receiving a retirement annuity
11under this Section on or after July 1, 2014:
12        (1) If the Tier I participant is at least 45 years old
13    on the effective date of this amendatory Act of the 98th
14    General Assembly, then the references to age 55 and 62 in
15    subsection (a) of this Section remain unchanged.
16        (2) If the Tier I participant is at least 40 but less
17    than 45 years old on the effective date of this amendatory
18    Act of the 98th General Assembly, then the references to
19    age 55 and 62 in subsection (a) of this Section are
20    increased by one year.
21        (3) If the Tier I participant is at least 35 but less
22    than 40 years old on the effective date of this amendatory
23    Act of the 98th General Assembly, then the references to
24    age 55 and 62 in subsection (a) of this Section are
25    increased by 3 years.
26        (4) If the Tier I participant is less than 35 years old

 

 

09800SB2404ham001- 29 -LRB098 09018 JDS 46840 a

1    on the effective date of this amendatory Act of the 98th
2    General Assembly, then the references to age 55 and 62 in
3    subsection (a) of this Section are increased by 5 years.
4    Notwithstanding Section 1-103.1, this subsection (a-5)
5applies without regard to whether or not the Tier I member is
6in active service under this Article on or after the effective
7date of this amendatory Act of the 98th General Assembly.
8    (a-5) A participant who first becomes a participant of this
9System on or after January 1, 2011 (the effective date of
10Public Act 96-889) who has attained age 62 and has at least 8
11years of service credit may elect to receive the lower
12retirement annuity provided in paragraph (c) of Section
132-119.01 of this Code.
14    (b) A participant shall be considered permanently disabled
15only if: (1) disability occurs while in service and is of such
16a nature as to prevent him or her from reasonably performing
17the duties of his or her office at the time; and (2) the board
18has received a written certificate by at least 2 licensed
19physicians appointed by the board stating that the member is
20disabled and that the disability is likely to be permanent.
21(Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11.)
 
22    (40 ILCS 5/2-119.1)  (from Ch. 108 1/2, par. 2-119.1)
23    Sec. 2-119.1. Automatic increase in retirement annuity.
24    (a) Except as provided in subsections (a-1) and (a-2), a A
25participant who retires after June 30, 1967, and who has not

 

 

09800SB2404ham001- 30 -LRB098 09018 JDS 46840 a

1received an initial increase under this Section before the
2effective date of this amendatory Act of 1991, shall, in
3January or July next following the first anniversary of
4retirement, whichever occurs first, and in the same month of
5each year thereafter, but in no event prior to age 60, have the
6amount of the originally granted retirement annuity increased
7as follows: for each year through 1971, 1 1/2%; for each year
8from 1972 through 1979, 2%; and for 1980 and each year
9thereafter, 3%. Annuitants who have received an initial
10increase under this subsection prior to the effective date of
11this amendatory Act of 1991 shall continue to receive their
12annual increases in the same month as the initial increase.
13    (a-1) Notwithstanding any other provision of this Article,
14for a Tier I retiree, the amount of each automatic annual
15increase in retirement annuity occurring on or after the
16effective date of this amendatory Act of the 98th General
17Assembly shall be 3% of the lesser of (1) the total annuity
18payable at the time of the increase, including previous
19increases granted, or (2) $1,000 multiplied by the number of
20years of creditable service upon which the annuity is based.
21    (a-2) Notwithstanding any other provision of this Article,
22for a Tier I retiree, the monthly retirement annuity shall
23first be subject to annual increases on the January 1 occurring
24on or next after the attainment of age 67 or the January 1
25occurring on or next after the fifth anniversary of the annuity
26start date, whichever occurs earlier. If on the effective date

 

 

09800SB2404ham001- 31 -LRB098 09018 JDS 46840 a

1of this amendatory Act of the 98th General Assembly a Tier I
2retiree has already received an annual increase under this
3Section but does not yet meet the new eligibility requirements
4of this subsection, the annual increases already received shall
5continue in force, but no additional annual increase shall be
6granted until the Tier I retiree meets the new eligibility
7requirements.
8    (a-3) Notwithstanding Section 1-103.1, subsections (a-1)
9and (a-2) apply without regard to whether or not the Tier I
10retiree is in active service under this Article on or after the
11effective date of this amendatory Act of the 98th General
12Assembly.
13    (b) Beginning January 1, 1990, for eligible participants
14who remain in service after attaining 20 years of creditable
15service, the 3% increases provided under subsection (a) shall
16begin to accrue on the January 1 next following the date upon
17which the participant (1) attains age 55, or (2) attains 20
18years of creditable service, whichever occurs later, and shall
19continue to accrue while the participant remains in service;
20such increases shall become payable on January 1 or July 1,
21whichever occurs first, next following the first anniversary of
22retirement. For any person who has service credit in the System
23for the entire period from January 15, 1969 through December
2431, 1992, regardless of the date of termination of service, the
25reference to age 55 in clause (1) of this subsection (b) shall
26be deemed to mean age 50.

 

 

09800SB2404ham001- 32 -LRB098 09018 JDS 46840 a

1    This subsection (b) does not apply to any person who first
2becomes a member of the System after August 8, 2003 (the
3effective date of Public Act 93-494) this amendatory Act of the
493rd General Assembly.
5    (b-5) Notwithstanding any other provision of this Article,
6a participant who first becomes a participant on or after
7January 1, 2011 (the effective date of Public Act 96-889)
8shall, in January or July next following the first anniversary
9of retirement, whichever occurs first, and in the same month of
10each year thereafter, but in no event prior to age 67, have the
11amount of the originally granted retirement annuity then being
12paid increased by 3% or one-half the annual unadjusted
13percentage increase in the Consumer Price Index for All Urban
14Consumers as determined by the Public Pension Division of the
15Department of Insurance under subsection (b-5) (a) of Section
161-160 2-108.1, whichever is less. The changes made to this
17subsection by this amendatory Act of the 98th General Assembly
18do not apply to any automatic annual increase granted under
19this subsection (b-5) before the effective date of this
20amendatory Act.
21    (c) The foregoing provisions relating to automatic
22increases are not applicable to a participant who retires
23before having made contributions (at the rate prescribed in
24Section 2-126) for automatic increases for less than the
25equivalent of one full year. However, in order to be eligible
26for the automatic increases, such a participant may make

 

 

09800SB2404ham001- 33 -LRB098 09018 JDS 46840 a

1arrangements to pay to the system the amount required to bring
2the total contributions for the automatic increase to the
3equivalent of one year's contributions based upon his or her
4last salary.
5    (d) A participant who terminated service prior to July 1,
61967, with at least 14 years of service is entitled to an
7increase in retirement annuity beginning January, 1976, and to
8additional increases in January of each year thereafter.
9    The initial increase shall be 1 1/2% of the originally
10granted retirement annuity multiplied by the number of full
11years that the annuitant was in receipt of such annuity prior
12to January 1, 1972, plus 2% of the originally granted
13retirement annuity for each year after that date. The
14subsequent annual increases shall be at the rate of 2% of the
15originally granted retirement annuity for each year through
161979 and at the rate of 3% for 1980 and thereafter.
17    (e) Beginning January 1, 1990, all automatic annual
18increases payable under this Section shall be calculated as a
19percentage of the total annuity payable at the time of the
20increase, including previous increases granted under this
21Article.
22(Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11.)
 
23    (40 ILCS 5/2-121.1)  (from Ch. 108 1/2, par. 2-121.1)
24    Sec. 2-121.1. Survivor's annuity - amount.
25    (a) A surviving spouse shall be entitled to 66 2/3% of the

 

 

09800SB2404ham001- 34 -LRB098 09018 JDS 46840 a

1amount of retirement annuity to which the participant or
2annuitant was entitled on the date of death, without regard to
3whether the participant had attained age 55 prior to his or her
4death, subject to a minimum payment of 10% of salary. If a
5surviving spouse, regardless of age, has in his or her care at
6the date of death any eligible child or children of the
7participant, the survivor's annuity shall be the greater of the
8following: (1) 66 2/3% of the amount of retirement annuity to
9which the participant or annuitant was entitled on the date of
10death, or (2) 30% of the participant's salary increased by 10%
11of salary on account of each such child, subject to a total
12payment for the surviving spouse and children of 50% of salary.
13If eligible children survive but there is no surviving spouse,
14or if the surviving spouse dies or becomes disqualified by
15remarriage while eligible children survive, each eligible
16child shall be entitled to an annuity of 20% of salary, subject
17to a maximum total payment for all such children of 50% of
18salary.
19    However, the survivor's annuity payable under this Section
20shall not be less than 100% of the amount of retirement annuity
21to which the participant or annuitant was entitled on the date
22of death, if he or she is survived by a dependent disabled
23child.
24    The salary to be used for determining these benefits shall
25be the salary used for determining the amount of retirement
26annuity as provided in Section 2-119.01.

 

 

09800SB2404ham001- 35 -LRB098 09018 JDS 46840 a

1    (b) Upon the death of a participant after the termination
2of service or upon death of an annuitant, the maximum total
3payment to a surviving spouse and eligible children, or to
4eligible children alone if there is no surviving spouse, shall
5be 75% of the retirement annuity to which the participant or
6annuitant was entitled, unless there is a dependent disabled
7child among the survivors.
8    (c) When a child ceases to be an eligible child, the
9annuity to that child, or to the surviving spouse on account of
10that child, shall thereupon cease, and the annuity payable to
11the surviving spouse or other eligible children shall be
12recalculated if necessary.
13    Upon the ineligibility of the last eligible child, the
14annuity shall immediately revert to the amount payable upon
15death of a participant or annuitant who leaves no eligible
16children. If the surviving spouse is then under age 50, the
17annuity as revised shall be deferred until the attainment of
18age 50.
19    (d) Beginning January 1, 1990, every survivor's annuity
20shall be increased (1) on each January 1 occurring on or after
21the commencement of the annuity if the deceased member died
22while receiving a retirement annuity, or (2) in other cases, on
23each January 1 occurring on or after the first anniversary of
24the commencement of the annuity, by an amount equal to 3% of
25the current amount of the annuity, including any previous
26increases under this Article. Such increases shall apply

 

 

09800SB2404ham001- 36 -LRB098 09018 JDS 46840 a

1without regard to whether the deceased member was in service on
2or after the effective date of this amendatory Act of 1991, but
3shall not accrue for any period prior to January 1, 1990.
4    (d-5) Notwithstanding any other provision of this Article,
5the initial survivor's annuity of a survivor of a participant
6who first becomes a participant on or after January 1, 2011
7(the effective date of Public Act 96-889) shall be in the
8amount of 66 2/3% of the amount of the retirement annuity to
9which the participant or annuitant was entitled on the date of
10death and shall be increased (1) on each January 1 occurring on
11or after the commencement of the annuity if the deceased member
12died while receiving a retirement annuity or (2) in other
13cases, on each January 1 occurring on or after the first
14anniversary of the commencement of the annuity, by an amount
15equal to 3% or one-half the annual unadjusted percentage
16increase in the Consumer Price Index for All Urban Consumers as
17determined by the Public Pension Division of the Department of
18Insurance under subsection (b-5) (a) of Section 1-160 2-108.1,
19whichever is less, of the originally granted survivor's annuity
20then being paid. The changes made to this subsection by this
21amendatory Act of the 98th General Assembly do not apply to any
22automatic annual increase granted under this subsection (d-5)
23before the effective date of this amendatory Act.
24    (e) Notwithstanding any other provision of this Article,
25beginning January 1, 1990, the minimum survivor's annuity
26payable to any person who is entitled to receive a survivor's

 

 

09800SB2404ham001- 37 -LRB098 09018 JDS 46840 a

1annuity under this Article shall be $300 per month, without
2regard to whether or not the deceased participant was in
3service on the effective date of this amendatory Act of 1989.
4    (f) In the case of a proportional survivor's annuity
5arising under the Retirement Systems Reciprocal Act where the
6amount payable by the System on January 1, 1993 is less than
7$300 per month, the amount payable by the System shall be
8increased beginning on that date by a monthly amount equal to
9$2 for each full year that has expired since the annuity began.
10(Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11.)
 
11    (40 ILCS 5/2-124)  (from Ch. 108 1/2, par. 2-124)
12    Sec. 2-124. Contributions by State.
13    (a) The State shall make contributions to the System by
14appropriations of amounts which, together with the
15contributions of participants, interest earned on investments,
16and other income will meet the cost of maintaining and
17administering the System on a 100% 90% funded basis in
18accordance with actuarial recommendations by the end of State
19fiscal year 2044.
20    (b) The Board shall determine the amount of State
21contributions required for each fiscal year on the basis of the
22actuarial tables and other assumptions adopted by the Board and
23the prescribed rate of interest, using the formula in
24subsection (c).
25    (c) For State fiscal years 2015 through 2044, the minimum

 

 

09800SB2404ham001- 38 -LRB098 09018 JDS 46840 a

1contribution to the System to be made by the State for each
2fiscal year shall be an amount determined by the System to be
3equal to the sum of (1) the State's portion of the projected
4normal cost for that fiscal year, plus (2) an amount sufficient
5to bring the total assets of the System up to 100% of the total
6actuarial liabilities of the System by the end of State fiscal
7year 2044. In making these determinations, the required State
8contribution shall be calculated each year as a level
9percentage of payroll over the years remaining to and including
10fiscal year 2044 and shall be determined under the entry age
11normal actuarial cost method.
12    For State fiscal years 2012 through 2014 2045, the minimum
13contribution to the System to be made by the State for each
14fiscal year shall be an amount determined by the System to be
15sufficient to bring the total assets of the System up to 90% of
16the total actuarial liabilities of the System by the end of
17State fiscal year 2045. In making these determinations, the
18required State contribution shall be calculated each year as a
19level percentage of payroll over the years remaining to and
20including fiscal year 2045 and shall be determined under the
21projected unit credit actuarial cost method.
22    For State fiscal years 1996 through 2005, the State
23contribution to the System, as a percentage of the applicable
24employee payroll, shall be increased in equal annual increments
25so that by State fiscal year 2011, the State is contributing at
26the rate required under this Section.

 

 

09800SB2404ham001- 39 -LRB098 09018 JDS 46840 a

1    Notwithstanding any other provision of this Article, the
2total required State contribution for State fiscal year 2006 is
3$4,157,000.
4    Notwithstanding any other provision of this Article, the
5total required State contribution for State fiscal year 2007 is
6$5,220,300.
7    For each of State fiscal years 2008 through 2009, the State
8contribution to the System, as a percentage of the applicable
9employee payroll, shall be increased in equal annual increments
10from the required State contribution for State fiscal year
112007, so that by State fiscal year 2011, the State is
12contributing at the rate otherwise required under this Section.
13    Notwithstanding any other provision of this Article, the
14total required State contribution for State fiscal year 2010 is
15$10,454,000 and shall be made from the proceeds of bonds sold
16in fiscal year 2010 pursuant to Section 7.2 of the General
17Obligation Bond Act, less (i) the pro rata share of bond sale
18expenses determined by the System's share of total bond
19proceeds, (ii) any amounts received from the General Revenue
20Fund in fiscal year 2010, and (iii) any reduction in bond
21proceeds due to the issuance of discounted bonds, if
22applicable.
23    Notwithstanding any other provision of this Article, the
24total required State contribution for State fiscal year 2011 is
25the amount recertified by the System on or before April 1, 2011
26pursuant to Section 2-134 and shall be made from the proceeds

 

 

09800SB2404ham001- 40 -LRB098 09018 JDS 46840 a

1of bonds sold in fiscal year 2011 pursuant to Section 7.2 of
2the General Obligation Bond Act, less (i) the pro rata share of
3bond sale expenses determined by the System's share of total
4bond proceeds, (ii) any amounts received from the General
5Revenue Fund in fiscal year 2011, and (iii) any reduction in
6bond proceeds due to the issuance of discounted bonds, if
7applicable.
8    Beginning in State fiscal year 2045, the minimum State
9contribution for each fiscal year shall be the amount needed to
10maintain the total assets of the System at 100% of the total
11actuarial liabilities of the System.
12    Beginning in State fiscal year 2046, the minimum State
13contribution for each fiscal year shall be the amount needed to
14maintain the total assets of the System at 90% of the total
15actuarial liabilities of the System.
16    Amounts received by the System pursuant to Section 25 of
17the Budget Stabilization Act or Section 8.12 of the State
18Finance Act in any fiscal year do not reduce and do not
19constitute payment of any portion of the minimum State
20contribution required under this Article in that fiscal year.
21Such amounts shall not reduce, and shall not be included in the
22calculation of, the required State contributions under this
23Article in any future year until the System has reached a
24funding ratio of at least 100% 90%. A reference in this Article
25to the "required State contribution" or any substantially
26similar term does not include or apply to any amounts payable

 

 

09800SB2404ham001- 41 -LRB098 09018 JDS 46840 a

1to the System under Section 25 of the Budget Stabilization Act.
2    Notwithstanding any other provision of this Section, the
3required State contribution for State fiscal year 2005 and for
4fiscal year 2008 and each fiscal year thereafter through State
5fiscal year 2014, as calculated under this Section and
6certified under Section 2-134, shall not exceed an amount equal
7to (i) the amount of the required State contribution that would
8have been calculated under this Section for that fiscal year if
9the System had not received any payments under subsection (d)
10of Section 7.2 of the General Obligation Bond Act, minus (ii)
11the portion of the State's total debt service payments for that
12fiscal year on the bonds issued in fiscal year 2003 for the
13purposes of that Section 7.2, as determined and certified by
14the Comptroller, that is the same as the System's portion of
15the total moneys distributed under subsection (d) of Section
167.2 of the General Obligation Bond Act. In determining this
17maximum for State fiscal years 2008 through 2010, however, the
18amount referred to in item (i) shall be increased, as a
19percentage of the applicable employee payroll, in equal
20increments calculated from the sum of the required State
21contribution for State fiscal year 2007 plus the applicable
22portion of the State's total debt service payments for fiscal
23year 2007 on the bonds issued in fiscal year 2003 for the
24purposes of Section 7.2 of the General Obligation Bond Act, so
25that, by State fiscal year 2011, the State is contributing at
26the rate otherwise required under this Section.

 

 

09800SB2404ham001- 42 -LRB098 09018 JDS 46840 a

1    (d) For purposes of determining the required State
2contribution to the System, the value of the System's assets
3shall be equal to the actuarial value of the System's assets,
4which shall be calculated as follows:
5    As of June 30, 2008, the actuarial value of the System's
6assets shall be equal to the market value of the assets as of
7that date. In determining the actuarial value of the System's
8assets for fiscal years after June 30, 2008, any actuarial
9gains or losses from investment return incurred in a fiscal
10year shall be recognized in equal annual amounts over the
115-year period following that fiscal year.
12    (e) For purposes of determining the required State
13contribution to the system for a particular year, the actuarial
14value of assets shall be assumed to earn a rate of return equal
15to the system's actuarially assumed rate of return.
16(Source: P.A. 96-43, eff. 7-15-09; 96-1497, eff. 1-14-11;
1796-1511, eff. 1-27-11; 96-1554, eff. 3-18-11; 97-813, eff.
187-13-12.)
 
19    (40 ILCS 5/2-125)  (from Ch. 108 1/2, par. 2-125)
20    Sec. 2-125. Obligations of State; funding guarantee.
21    (a) The payment of (1) the required State contributions,
22(2) all benefits granted under this system and (3) all expenses
23of administration and operation are obligations of the State to
24the extent specified in this Article.
25    (b) All income, interest and dividends derived from

 

 

09800SB2404ham001- 43 -LRB098 09018 JDS 46840 a

1deposits and investments shall be credited to the account of
2the system in the State Treasury and used to pay benefits under
3this Article.
4    (c) Beginning July 1, 2014, the State shall be
5contractually obligated to contribute to the System in each
6State fiscal year an amount not less than the sum of (i) the
7State's normal cost for the year and (ii) the portion of the
8unfunded accrued liability assigned to that year by law.
9Notwithstanding any other provision of law, if the State fails
10to pay an amount guaranteed under this subsection, it shall be
11the mandatory fiduciary obligation of the Board to seek payment
12of the guaranteed amount in compliance with the provisions of
13this Section and, if the amount remains unpaid, to bring a
14mandamus action in the Supreme Court of Illinois to compel the
15State to make the required payment.
16    If the System submits a voucher for contributions required
17under Section 2-124 and the State fails to pay that voucher
18within 90 days of its receipt, the Board shall submit a written
19request to the Comptroller seeking payment. A copy of the
20request shall be filed with the Secretary of State, and the
21Secretary of State shall provide a copy to the Governor and
22General Assembly. No earlier than the 16th day after the System
23files the request with the Comptroller and Secretary of State,
24if the amount remains unpaid, the Board shall commence a
25mandamus action in the Supreme Court of Illinois to compel the
26Comptroller to satisfy the voucher.

 

 

09800SB2404ham001- 44 -LRB098 09018 JDS 46840 a

1    This subsection (c) constitutes an express waiver of the
2State's sovereign immunity solely to the extent that it permits
3the Board to commence a mandamus action in the Supreme Court of
4Illinois to compel the Comptroller to pay a voucher for the
5contributions required under Section 2-124.
6    (d) Beginning in State fiscal year 2020, the State shall be
7contractually obligated to make the transfers set forth in
8subsections (c-10) and (c-15) of Section 20 of the Budget
9Stabilization Act and to pay to the System its proportionate
10share of the transferred amounts in accordance with Section 25
11of the Budget Stabilization Act. Notwithstanding any other
12provision of law, if the State fails to transfer an amount
13guaranteed under this subsection or to pay to the System its
14proportionate share of the transferred amount in accordance
15with Section 25 of the Budget Stabilization Act, it shall be
16the mandatory fiduciary obligation of the Board to seek
17transfer or payment of the guaranteed amount in compliance with
18the provisions of this Section and, if the required amount
19remains untransferred or the required payment remains unpaid,
20to bring a mandamus action in the Supreme Court of Illinois to
21compel the State to make the required transfer or payment or
22both, as the case may be.
23    If the State fails to make a transfer required under
24subsections (c-10) and (c-15) of Section 20 of the Budget
25Stabilization Act or a payment to the System required under
26Section 25 of that Act, the Board shall submit a written

 

 

09800SB2404ham001- 45 -LRB098 09018 JDS 46840 a

1request to the Comptroller seeking payment. A copy of the
2request shall be filed with the Secretary of State, and the
3Secretary of State shall provide a copy to the Governor and
4General Assembly. No earlier than the 16th day after the System
5files the request with the Comptroller and Secretary of State,
6if the required amount remains untransferred or the required
7payment remains unpaid, the Board shall commence a mandamus
8action in the Supreme Court of Illinois to compel the
9Comptroller to make the required transfer or payment or both,
10as the case may be.
11    This subsection (d) constitutes an express waiver of the
12State's sovereign immunity solely to the extent that it permits
13the Board to commence a mandamus action in the Supreme Court of
14Illinois to compel the Comptroller to make a transfer required
15under subsections (c-10) and (c-15) of Section 20 of the Budget
16Stabilization Act and to pay to the System its proportionate
17share of the transferred amount in accordance with Section 25
18of the Budget Stabilization Act.
19    The obligations created by this subsection (d) expire when
20all of the requirements of subsections (c-10) and (c-15) of
21Section 20 of the Budget Stabilization Act and Section 25 of
22the Budget Stabilization Act have been met.
23    (e) Any payments and transfers required to be made by the
24State pursuant to subsection (c) or (d) are expressly
25subordinate to the payment of the principal, interest, and
26premium, if any, on any bonded debt obligation of the State or

 

 

09800SB2404ham001- 46 -LRB098 09018 JDS 46840 a

1any other State-created entity, either currently outstanding
2or to be issued, for which the source of repayment or security
3thereon is derived directly or indirectly from tax revenues
4collected by the State or any other State-created entity.
5Payments on such bonded obligations include any statutory fund
6transfers or other prefunding mechanisms or formulas set forth,
7now or hereafter, in State law or bond indentures, into debt
8service funds or accounts of the State related to such bond
9obligations, consistent with the payment schedules associated
10with such obligations.
11    (f) By the enactment of this amendatory Act of the 98th
12General Assembly, the State of Illinois pledges to and agrees
13with the Board and members of the System that the State will
14make the payments and transfers required to be made by the
15State pursuant to subsections (c) and (d). The State further
16pledges that the State will not limit or alter the rights and
17powers vested in the Board so as to impair the terms of this
18Section or in any way impair the rights and remedies of the
19Board under this Section.
20(Source: P.A. 83-1440.)
 
21    (40 ILCS 5/2-126)  (from Ch. 108 1/2, par. 2-126)
22    Sec. 2-126. Contributions by participants.
23    (a) Each participant shall contribute toward the cost of
24his or her retirement annuity a percentage of each payment of
25salary received by him or her for service as a member as

 

 

09800SB2404ham001- 47 -LRB098 09018 JDS 46840 a

1follows: for service between October 31, 1947 and January 1,
21959, 5%; for service between January 1, 1959 and June 30,
31969, 6%; for service between July 1, 1969 and January 10,
41973, 6 1/2%; for service after January 10, 1973, 7%; for
5service after December 31, 1981, 8 1/2%.
6    (a-5) In addition to the contributions otherwise required
7under this Article, each Tier I participant shall also make the
8following contributions toward the cost of his or her
9retirement annuity from each payment of salary received by him
10or her for service as a member:
11        (1) beginning July 1, 2014 and through June 30, 2015,
12    1% of salary; and
13        (2) beginning on July 1, 2015, 2% of salary.
14    (b) Beginning August 2, 1949, each male participant, and
15from July 1, 1971, each female participant shall contribute
16towards the cost of the survivor's annuity 2% of salary.
17    A participant who has no eligible survivor's annuity
18beneficiary may elect to cease making contributions for
19survivor's annuity under this subsection. A survivor's annuity
20shall not be payable upon the death of a person who has made
21this election, unless prior to that death the election has been
22revoked and the amount of the contributions that would have
23been paid under this subsection in the absence of the election
24is paid to the System, together with interest at the rate of 4%
25per year from the date the contributions would have been made
26to the date of payment.

 

 

09800SB2404ham001- 48 -LRB098 09018 JDS 46840 a

1    (c) Beginning July 1, 1967, each participant shall
2contribute 1% of salary towards the cost of automatic increase
3in annuity provided in Section 2-119.1. These contributions
4shall be made concurrently with contributions for retirement
5annuity purposes.
6    (d) In addition, each participant serving as an officer of
7the General Assembly shall contribute, for the same purposes
8and at the same rates as are required of a regular participant,
9on each additional payment received as an officer. If the
10participant serves as an officer for at least 2 but less than 4
11years, he or she shall contribute an amount equal to the amount
12that would have been contributed had the participant served as
13an officer for 4 years. Persons who serve as officers in the
1487th General Assembly but cannot receive the additional payment
15to officers because of the ban on increases in salary during
16their terms may nonetheless make contributions based on those
17additional payments for the purpose of having the additional
18payments included in their highest salary for annuity purposes;
19however, persons electing to make these additional
20contributions must also pay an amount representing the
21corresponding employer contributions, as calculated by the
22System.
23    (e) Notwithstanding any other provision of this Article,
24the required contribution of a participant shall not be based
25on any salary in excess of the salary limitation applicable to
26that participant under Section 2-108 or who first becomes a

 

 

09800SB2404ham001- 49 -LRB098 09018 JDS 46840 a

1participant on or after January 1, 2011 shall not exceed the
2contribution that would be due under this Article if that
3participant's highest salary for annuity purposes were
4$106,800, plus any increases in that amount under Section
52-108.1.
6(Source: P.A. 96-1490, eff. 1-1-11.)
 
7    (40 ILCS 5/2-126.5 new)
8    Sec. 2-126.5. Use of contributions for health care
9subsidies. The System shall not use any contribution received
10by the System under this Article to provide a subsidy for the
11cost of participation in a retiree health care program.
 
12    (40 ILCS 5/2-134)   (from Ch. 108 1/2, par. 2-134)
13    Sec. 2-134. To certify required State contributions and
14submit vouchers.
15    (a) The Board shall certify to the Governor on or before
16December 15 of each year through until December 15, 2011 the
17amount of the required State contribution to the System for the
18next fiscal year and shall specifically identify the System's
19projected State normal cost for that fiscal year. The
20certification shall include a copy of the actuarial
21recommendations upon which it is based and shall specifically
22identify the System's projected State normal cost for that
23fiscal year.
24    (a-5) On or before November 1 of each year, beginning

 

 

09800SB2404ham001- 50 -LRB098 09018 JDS 46840 a

1November 1, 2012, the Board shall submit to the State Actuary,
2the Governor, and the General Assembly a proposed certification
3of the amount of the required State contribution to the System
4for the next fiscal year, along with all of the actuarial
5assumptions, calculations, and data upon which that proposed
6certification is based. On or before January 1 of each year,
7beginning January 1, 2013, the State Actuary shall issue a
8preliminary report concerning the proposed certification and
9identifying, if necessary, recommended changes in actuarial
10assumptions that the Board must consider before finalizing its
11certification of the required State contributions.
12    On or before January 15, 2013 and every January 15
13thereafter, the Board shall certify to the Governor and the
14General Assembly the amount of the required State contribution
15for the next fiscal year. The Board's certification shall
16include a copy of the actuarial recommendations upon which it
17is based and shall specifically identify the System's projected
18State normal cost for that fiscal year. The Board's
19certification must note any deviations from the State Actuary's
20recommended changes, the reason or reasons for not following
21the State Actuary's recommended changes, and the fiscal impact
22of not following the State Actuary's recommended changes on the
23required State contribution.
24    (a-7) On or before May 1, 2004, the Board shall recalculate
25and recertify to the Governor the amount of the required State
26contribution to the System for State fiscal year 2005, taking

 

 

09800SB2404ham001- 51 -LRB098 09018 JDS 46840 a

1into account the amounts appropriated to and received by the
2System under subsection (d) of Section 7.2 of the General
3Obligation Bond Act.
4    On or before July 1, 2005, the Board shall recalculate and
5recertify to the Governor the amount of the required State
6contribution to the System for State fiscal year 2006, taking
7into account the changes in required State contributions made
8by this amendatory Act of the 94th General Assembly.
9    On or before April 1, 2011, the Board shall recalculate and
10recertify to the Governor the amount of the required State
11contribution to the System for State fiscal year 2011, applying
12the changes made by Public Act 96-889 to the System's assets
13and liabilities as of June 30, 2009 as though Public Act 96-889
14was approved on that date.
15    (b) Beginning in State fiscal year 1996, on or as soon as
16possible after the 15th day of each month the Board shall
17submit vouchers for payment of State contributions to the
18System, in a total monthly amount of one-twelfth of the
19required annual State contribution certified under subsection
20(a). From the effective date of this amendatory Act of the 93rd
21General Assembly through June 30, 2004, the Board shall not
22submit vouchers for the remainder of fiscal year 2004 in excess
23of the fiscal year 2004 certified contribution amount
24determined under this Section after taking into consideration
25the transfer to the System under subsection (d) of Section
266z-61 of the State Finance Act. These vouchers shall be paid by

 

 

09800SB2404ham001- 52 -LRB098 09018 JDS 46840 a

1the State Comptroller and Treasurer by warrants drawn on the
2funds appropriated to the System for that fiscal year. If in
3any month the amount remaining unexpended from all other
4appropriations to the System for the applicable fiscal year
5(including the appropriations to the System under Section 8.12
6of the State Finance Act and Section 1 of the State Pension
7Funds Continuing Appropriation Act) is less than the amount
8lawfully vouchered under this Section, the difference shall be
9paid from the General Revenue Fund under the continuing
10appropriation authority provided in Section 1.1 of the State
11Pension Funds Continuing Appropriation Act.
12    (c) The full amount of any annual appropriation for the
13System for State fiscal year 1995 shall be transferred and made
14available to the System at the beginning of that fiscal year at
15the request of the Board. Any excess funds remaining at the end
16of any fiscal year from appropriations shall be retained by the
17System as a general reserve to meet the System's accrued
18liabilities.
19(Source: P.A. 96-1497, eff. 1-14-11; 96-1511, eff. 1-27-11;
2097-694, eff. 6-18-12.)
 
21    (40 ILCS 5/2-162)
22    Sec. 2-162. Application and expiration of new benefit
23increases.
24    (a) As used in this Section, "new benefit increase" means
25an increase in the amount of any benefit provided under this

 

 

09800SB2404ham001- 53 -LRB098 09018 JDS 46840 a

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

 

 

09800SB2404ham001- 54 -LRB098 09018 JDS 46840 a

1additional funding provided for a new benefit increase under
2this subsection is or has become inadequate, it may so certify
3to the Governor and the State Comptroller and, in the absence
4of corrective action by the General Assembly, the new benefit
5increase shall expire at the end of the fiscal year in which
6the certification is made.
7    (d) Every new benefit increase shall expire 5 years after
8its effective date or on such earlier date as may be specified
9in the language enacting the new benefit increase or provided
10under subsection (c). This does not prevent the General
11Assembly from extending or re-creating a new benefit increase
12by law.
13    (e) Except as otherwise provided in the language creating
14the new benefit increase, a new benefit increase that expires
15under this Section continues to apply to persons who applied
16and qualified for the affected benefit while the new benefit
17increase was in effect and to the affected beneficiaries and
18alternate payees of such persons, but does not apply to any
19other person, including without limitation a person who
20continues in service after the expiration date and did not
21apply and qualify for the affected benefit while the new
22benefit increase was in effect.
23(Source: P.A. 94-4, eff. 6-1-05.)
 
24    (40 ILCS 5/7-109)  (from Ch. 108 1/2, par. 7-109)
25    Sec. 7-109. Employee.

 

 

09800SB2404ham001- 55 -LRB098 09018 JDS 46840 a

1    (1) "Employee" means any person who:
2        (a) 1. Receives earnings as payment for the performance
3        of personal services or official duties out of the
4        general fund of a municipality, or out of any special
5        fund or funds controlled by a municipality, or by an
6        instrumentality thereof, or a participating
7        instrumentality, including, in counties, the fees or
8        earnings of any county fee office; and
9            2. Under the usual common law rules applicable in
10        determining the employer-employee relationship, has
11        the status of an employee with a municipality, or any
12        instrumentality thereof, or a participating
13        instrumentality, including aldermen, county
14        supervisors and other persons (excepting those
15        employed as independent contractors) who are paid
16        compensation, fees, allowances or other emolument for
17        official duties, and, in counties, the several county
18        fee offices.
19        (b) Serves as a township treasurer appointed under the
20    School Code, as heretofore or hereafter amended, and who
21    receives for such services regular compensation as
22    distinguished from per diem compensation, and any regular
23    employee in the office of any township treasurer whether or
24    not his earnings are paid from the income of the permanent
25    township fund or from funds subject to distribution to the
26    several school districts and parts of school districts as

 

 

09800SB2404ham001- 56 -LRB098 09018 JDS 46840 a

1    provided in the School Code, or from both such sources; or
2    is the chief executive officer, chief educational officer,
3    chief fiscal officer, or other employee of a Financial
4    Oversight Panel established pursuant to Article 1H of the
5    School Code, other than a superintendent or certified
6    school business official, except that such person shall not
7    be treated as an employee under this Section if that person
8    has negotiated with the Financial Oversight Panel, in
9    conjunction with the school district, a contractual
10    agreement for exclusion from this Section.
11        (c) Holds an elective office in a municipality,
12    instrumentality thereof or participating instrumentality.
13    (2) "Employee" does not include persons who:
14        (a) Are eligible for inclusion under any of the
15    following laws:
16            1. "An Act in relation to an Illinois State
17        Teachers' Pension and Retirement Fund", approved May
18        27, 1915, as amended;
19            2. Articles 15 and 16 of this Code.
20        However, such persons shall be included as employees to
21    the extent of earnings that are not eligible for inclusion
22    under the foregoing laws for services not of an
23    instructional nature of any kind.
24        However, any member of the armed forces who is employed
25    as a teacher of subjects in the Reserve Officers Training
26    Corps of any school and who is not certified under the law

 

 

09800SB2404ham001- 57 -LRB098 09018 JDS 46840 a

1    governing the certification of teachers shall be included
2    as an employee.
3        (b) Are designated by the governing body of a
4    municipality in which a pension fund is required by law to
5    be established for policemen or firemen, respectively, as
6    performing police or fire protection duties, except that
7    when such persons are the heads of the police or fire
8    department and are not eligible to be included within any
9    such pension fund, they shall be included within this
10    Article; provided, that such persons shall not be excluded
11    to the extent of concurrent service and earnings not
12    designated as being for police or fire protection duties.
13    However, (i) any head of a police department who was a
14    participant under this Article immediately before October
15    1, 1977 and did not elect, under Section 3-109 of this Act,
16    to participate in a police pension fund shall be an
17    "employee", and (ii) any chief of police who elects to
18    participate in this Fund under Section 3-109.1 of this
19    Code, regardless of whether such person continues to be
20    employed as chief of police or is employed in some other
21    rank or capacity within the police department, shall be an
22    employee under this Article for so long as such person is
23    employed to perform police duties by a participating
24    municipality and has not lawfully rescinded that election.
25        (c) After August 26, 2011 (the effective date of Public
26    Act 97-609), are contributors to or eligible to contribute

 

 

09800SB2404ham001- 58 -LRB098 09018 JDS 46840 a

1    to a Taft-Hartley pension plan established on or before
2    June 1, 2011 and are employees of a theatre, arena, or
3    convention center that is located in a municipality located
4    in a county with a population greater than 5,000,000, and
5    to which the participating municipality is required to
6    contribute as the person's employer based on earnings from
7    the municipality. Nothing in this paragraph shall affect
8    service credit or creditable service for any period of
9    service prior to August 26, 2011, and this paragraph shall
10    not apply to individuals who are participating in the Fund
11    prior to August 26, 2011.
12        (d) Become an employee of any of the following
13    participating instrumentalities on or after the effective
14    date of this amendatory Act of the 98th General Assembly:
15    the Illinois Municipal League; the Illinois Association of
16    Park Districts; the Illinois Supervisors, County
17    Commissioners and Superintendents of Highways Association;
18    an association or not-for-profit corporation, membership
19    in which is authorized under Section 85-15 of the Township
20    Code; the United Counties Council; or the Will County
21    Governmental League.
22    (3) All persons, including, without limitation, public
23defenders and probation officers, who receive earnings from
24general or special funds of a county for performance of
25personal services or official duties within the territorial
26limits of the county, are employees of the county (unless

 

 

09800SB2404ham001- 59 -LRB098 09018 JDS 46840 a

1excluded by subsection (2) of this Section) notwithstanding
2that they may be appointed by and are subject to the direction
3of a person or persons other than a county board or a county
4officer. It is hereby established that an employer-employee
5relationship under the usual common law rules exists between
6such employees and the county paying their salaries by reason
7of the fact that the county boards fix their rates of
8compensation, appropriate funds for payment of their earnings
9and otherwise exercise control over them. This finding and this
10amendatory Act shall apply to all such employees from the date
11of appointment whether such date is prior to or after the
12effective date of this amendatory Act and is intended to
13clarify existing law pertaining to their status as
14participating employees in the Fund.
15(Source: P.A. 97-429, eff. 8-16-11; 97-609, eff. 8-26-11;
1697-813, eff. 7-13-12.)
 
17    (40 ILCS 5/7-114)  (from Ch. 108 1/2, par. 7-114)
18    Sec. 7-114. Earnings. "Earnings":
19    (a) An amount to be determined by the board, equal to the
20sum of:
21        1. The total amount of money paid to an employee for
22    personal services or official duties as an employee (except
23    those employed as independent contractors) paid out of the
24    general fund, or out of any special funds controlled by the
25    municipality, or by any instrumentality thereof, or

 

 

09800SB2404ham001- 60 -LRB098 09018 JDS 46840 a

1    participating instrumentality, including compensation,
2    fees, allowances, or other emolument paid for official
3    duties (but not including automobile maintenance, travel
4    expense, or reimbursements for expenditures incurred in
5    the performance of duties, or, in the case of a person who
6    first becomes a participant on or after the effective date
7    of this amendatory Act of the 98th General Assembly,
8    payments for unused sick or vacation time) and, for fee
9    offices, the fees or earnings of the offices to the extent
10    such fees are paid out of funds controlled by the
11    municipality, or instrumentality or participating
12    instrumentality; and
13        2. The money value, as determined by rules prescribed
14    by the governing body of the municipality, or
15    instrumentality thereof, of any board, lodging, fuel,
16    laundry, and other allowances provided an employee in lieu
17    of money.
18    (b) For purposes of determining benefits payable under this
19fund payments to a person who is engaged in an independently
20established trade, occupation, profession or business and who
21is paid for his service on a basis other than a monthly or
22other regular salary, are not earnings.
23    (c) If a disabled participating employee is eligible to
24receive Workers' Compensation for an accidental injury and the
25participating municipality or instrumentality which employed
26the participating employee when injured continues to pay the

 

 

09800SB2404ham001- 61 -LRB098 09018 JDS 46840 a

1participating employee regular salary or other compensation or
2pays the employee an amount in excess of the Workers'
3Compensation amount, then earnings shall be deemed to be the
4total payments, including an amount equal to the Workers'
5Compensation payments. These payments shall be subject to
6employee contributions and allocated as if paid to the
7participating employee when the regular payroll amounts would
8have been paid if the participating employee had continued
9working, and creditable service shall be awarded for this
10period.
11    (d) If an elected official who is a participating employee
12becomes disabled but does not resign and is not removed from
13office, then earnings shall include all salary payments made
14for the remainder of that term of office and the official shall
15be awarded creditable service for the term of office.
16    (e) If a participating employee is paid pursuant to "An Act
17to provide for the continuation of compensation for law
18enforcement officers, correctional officers and firemen who
19suffer disabling injury in the line of duty", approved
20September 6, 1973, as amended, the payments shall be deemed
21earnings, and the participating employee shall be awarded
22creditable service for this period.
23    (f) Additional compensation received by a person while
24serving as a supervisor of assessments, assessor, deputy
25assessor or member of a board of review from the State of
26Illinois pursuant to Section 4-10 or 4-15 of the Property Tax

 

 

09800SB2404ham001- 62 -LRB098 09018 JDS 46840 a

1Code shall not be earnings for purposes of this Article and
2shall not be included in the contribution formula or
3calculation of benefits for such person pursuant to this
4Article.
5(Source: P.A. 87-740; 88-670, eff. 12-2-94.)
 
6    (40 ILCS 5/7-116)  (from Ch. 108 1/2, par. 7-116)
7    Sec. 7-116. "Final rate of earnings":
8    (a) For retirement and survivor annuities, the monthly
9earnings obtained by dividing the total earnings received by
10the employee during the period of either (1) the 48 consecutive
11months of service within the last 120 months of service in
12which his total earnings were the highest or (2) the employee's
13total period of service, by the number of months of service in
14such period.
15    (b) For death benefits, the higher of the rate determined
16under paragraph (a) of this Section or total earnings received
17in the last 12 months of service divided by twelve. If the
18deceased employee has less than 12 months of service, the
19monthly final rate shall be the monthly rate of pay the
20employee was receiving when he began service.
21    (c) For disability benefits, the total earnings of a
22participating employee in the last 12 calendar months of
23service prior to the date he becomes disabled divided by 12.
24    (d) In computing the final rate of earnings: (1) the
25earnings rate for all periods of prior service shall be

 

 

09800SB2404ham001- 63 -LRB098 09018 JDS 46840 a

1considered equal to the average earnings rate for the last 3
2calendar years of prior service for which creditable service is
3received under Section 7-139 or, if there is less than 3 years
4of creditable prior service, the average for the total prior
5service period for which creditable service is received under
6Section 7-139; (2) for out of state service and authorized
7leave, the earnings rate shall be the rate upon which service
8credits are granted; (3) periods of military leave shall not be
9considered; (4) the earnings rate for all periods of disability
10shall be considered equal to the rate of earnings upon which
11the employee's disability benefits are computed for such
12periods; (5) the earnings to be considered for each of the
13final three months of the final earnings period for persons who
14first became participants before January 1, 2012 and the
15earnings to be considered for each of the final 24 months for
16participants who first become participants on or after January
171, 2012 shall not exceed 125% of the highest earnings of any
18other month in the final earnings period; and (6) the annual
19amount of final rate of earnings shall be the monthly amount
20multiplied by the number of months of service normally required
21by the position in a year; and (7) in the case of a person who
22first becomes a participant on or after the effective date of
23this amendatory Act of the 98th General Assembly, payments for
24unused sick or vacation time shall not be considered.
25(Source: P.A. 97-609, eff. 1-1-12.)
 

 

 

09800SB2404ham001- 64 -LRB098 09018 JDS 46840 a

1    (40 ILCS 5/7-139)  (from Ch. 108 1/2, par. 7-139)
2    Sec. 7-139. Credits and creditable service to employees.
3    (a) Each participating employee shall be granted credits
4and creditable service, for purposes of determining the amount
5of any annuity or benefit to which he or a beneficiary is
6entitled, as follows:
7        1. For prior service: Each participating employee who
8    is an employee of a participating municipality or
9    participating instrumentality on the effective date shall
10    be granted creditable service, but no credits under
11    paragraph 2 of this subsection (a), for periods of prior
12    service for which credit has not been received under any
13    other pension fund or retirement system established under
14    this Code, as follows:
15        If the effective date of participation for the
16    participating municipality or participating
17    instrumentality is on or before January 1, 1998, creditable
18    service shall be granted for the entire period of prior
19    service with that employer without any employee
20    contribution.
21        If the effective date of participation for the
22    participating municipality or participating
23    instrumentality is after January 1, 1998, creditable
24    service shall be granted for the last 20% of the period of
25    prior service with that employer, but no more than 5 years,
26    without any employee contribution. A participating

 

 

09800SB2404ham001- 65 -LRB098 09018 JDS 46840 a

1    employee may establish creditable service for the
2    remainder of the period of prior service with that employer
3    by making an application in writing, accompanied by payment
4    of an employee contribution in an amount determined by the
5    Fund, based on the employee contribution rates in effect at
6    the time of application for the creditable service and the
7    employee's salary rate on the effective date of
8    participation for that employer, plus interest at the
9    effective rate from the date of the prior service to the
10    date of payment. Application for this creditable service
11    may be made at any time while the employee is still in
12    service.
13        A municipality that (i) has at least 35 employees; (ii)
14    is located in a county with at least 2,000,000 inhabitants;
15    and (iii) maintains an independent defined benefit pension
16    plan for the benefit of its eligible employees may restrict
17    creditable service in whole or in part for periods of prior
18    service with the employer if the governing body of the
19    municipality adopts an irrevocable resolution to restrict
20    that creditable service and files the resolution with the
21    board before the municipality's effective date of
22    participation.
23        Any person who has withdrawn from the service of a
24    participating municipality or participating
25    instrumentality prior to the effective date, who reenters
26    the service of the same municipality or participating

 

 

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1    instrumentality after the effective date and becomes a
2    participating employee is entitled to creditable service
3    for prior service as otherwise provided in this subdivision
4    (a)(1) only if he or she renders 2 years of service as a
5    participating employee after the effective date.
6    Application for such service must be made while in a
7    participating status. The salary rate to be used in the
8    calculation of the required employee contribution, if any,
9    shall be the employee's salary rate at the time of first
10    reentering service with the employer after the employer's
11    effective date of participation.
12        2. For current service, each participating employee
13    shall be credited with:
14            a. Additional credits of amounts equal to each
15        payment of additional contributions received from him
16        under Section 7-173, as of the date the corresponding
17        payment of earnings is payable to him.
18            b. Normal credits of amounts equal to each payment
19        of normal contributions received from him, as of the
20        date the corresponding payment of earnings is payable
21        to him, and normal contributions made for the purpose
22        of establishing out-of-state service credits as
23        permitted under the conditions set forth in paragraph 6
24        of this subsection (a).
25            c. Municipality credits in an amount equal to 1.4
26        times the normal credits, except those established by

 

 

09800SB2404ham001- 67 -LRB098 09018 JDS 46840 a

1        out-of-state service credits, as of the date of
2        computation of any benefit if these credits would
3        increase the benefit.
4            d. Survivor credits equal to each payment of
5        survivor contributions received from the participating
6        employee as of the date the corresponding payment of
7        earnings is payable, and survivor contributions made
8        for the purpose of establishing out-of-state service
9        credits.
10        3. For periods of temporary and total and permanent
11    disability benefits, each employee receiving disability
12    benefits shall be granted creditable service for the period
13    during which disability benefits are payable. Normal and
14    survivor credits, based upon the rate of earnings applied
15    for disability benefits, shall also be granted if such
16    credits would result in a higher benefit to any such
17    employee or his beneficiary.
18        4. For authorized leave of absence without pay: A
19    participating employee shall be granted credits and
20    creditable service for periods of authorized leave of
21    absence without pay under the following conditions:
22            a. An application for credits and creditable
23        service is submitted to the board while the employee is
24        in a status of active employment.
25            b. Not more than 12 complete months of creditable
26        service for authorized leave of absence without pay

 

 

09800SB2404ham001- 68 -LRB098 09018 JDS 46840 a

1        shall be counted for purposes of determining any
2        benefits payable under this Article.
3            c. Credits and creditable service shall be granted
4        for leave of absence only if such leave is approved by
5        the governing body of the municipality, including
6        approval of the estimated cost thereof to the
7        municipality as determined by the fund, and employee
8        contributions, plus interest at the effective rate
9        applicable for each year from the end of the period of
10        leave to date of payment, have been paid to the fund in
11        accordance with Section 7-173. The contributions shall
12        be computed upon the assumption earnings continued
13        during the period of leave at the rate in effect when
14        the leave began.
15            d. Benefits under the provisions of Sections
16        7-141, 7-146, 7-150 and 7-163 shall become payable to
17        employees on authorized leave of absence, or their
18        designated beneficiary, only if such leave of absence
19        is creditable hereunder, and if the employee has at
20        least one year of creditable service other than the
21        service granted for leave of absence. Any employee
22        contributions due may be deducted from any benefits
23        payable.
24            e. No credits or creditable service shall be
25        allowed for leave of absence without pay during any
26        period of prior service.

 

 

09800SB2404ham001- 69 -LRB098 09018 JDS 46840 a

1        5. For military service: The governing body of a
2    municipality or participating instrumentality may elect to
3    allow creditable service to participating employees who
4    leave their employment to serve in the armed forces of the
5    United States for all periods of such service, provided
6    that the person returns to active employment within 90 days
7    after completion of full time active duty, but no
8    creditable service shall be allowed such person for any
9    period that can be used in the computation of a pension or
10    any other pay or benefit, other than pay for active duty,
11    for service in any branch of the armed forces of the United
12    States. If necessary to the computation of any benefit, the
13    board shall establish municipality credits for
14    participating employees under this paragraph on the
15    assumption that the employee received earnings at the rate
16    received at the time he left the employment to enter the
17    armed forces. A participating employee in the armed forces
18    shall not be considered an employee during such period of
19    service and no additional death and no disability benefits
20    are payable for death or disability during such period.
21        Any participating employee who left his employment
22    with a municipality or participating instrumentality to
23    serve in the armed forces of the United States and who
24    again became a participating employee within 90 days after
25    completion of full time active duty by entering the service
26    of a different municipality or participating

 

 

09800SB2404ham001- 70 -LRB098 09018 JDS 46840 a

1    instrumentality, which has elected to allow creditable
2    service for periods of military service under the preceding
3    paragraph, shall also be allowed creditable service for his
4    period of military service on the same terms that would
5    apply if he had been employed, before entering military
6    service, by the municipality or instrumentality which
7    employed him after he left the military service and the
8    employer costs arising in relation to such grant of
9    creditable service shall be charged to and paid by that
10    municipality or instrumentality.
11        Notwithstanding the foregoing, any participating
12    employee shall be entitled to creditable service as
13    required by any federal law relating to re-employment
14    rights of persons who served in the United States Armed
15    Services. Such creditable service shall be granted upon
16    payment by the member of an amount equal to the employee
17    contributions which would have been required had the
18    employee continued in service at the same rate of earnings
19    during the military leave period, plus interest at the
20    effective rate.
21        5.1. In addition to any creditable service established
22    under paragraph 5 of this subsection (a), creditable
23    service may be granted for up to 48 months of service in
24    the armed forces of the United States.
25        In order to receive creditable service for military
26    service under this paragraph 5.1, a participating employee

 

 

09800SB2404ham001- 71 -LRB098 09018 JDS 46840 a

1    must (1) apply to the Fund in writing and provide evidence
2    of the military service that is satisfactory to the Board;
3    (2) obtain the written approval of the current employer;
4    and (3) make contributions to the Fund equal to (i) the
5    employee contributions that would have been required had
6    the service been rendered as a member, plus (ii) an amount
7    determined by the board to be equal to the employer's
8    normal cost of the benefits accrued for that military
9    service, plus (iii) interest on items (i) and (ii) from the
10    date of first membership in the Fund to the date of
11    payment. The required interest shall be calculated at the
12    regular interest rate.
13        The changes made to this paragraph 5.1 by Public Acts
14    95-483 and 95-486 apply only to participating employees in
15    service on or after August 28, 2007 (the effective date of
16    those Public Acts).
17        6. For out-of-state service: Creditable service shall
18    be granted for service rendered to an out-of-state local
19    governmental body under the following conditions: The
20    employee had participated and has irrevocably forfeited
21    all rights to benefits in the out-of-state public employees
22    pension system; the governing body of his participating
23    municipality or instrumentality authorizes the employee to
24    establish such service; the employee has 2 years current
25    service with this municipality or participating
26    instrumentality; the employee makes a payment of

 

 

09800SB2404ham001- 72 -LRB098 09018 JDS 46840 a

1    contributions, which shall be computed at 8% (normal) plus
2    2% (survivor) times length of service purchased times the
3    average rate of earnings for the first 2 years of service
4    with the municipality or participating instrumentality
5    whose governing body authorizes the service established
6    plus interest at the effective rate on the date such
7    credits are established, payable from the date the employee
8    completes the required 2 years of current service to date
9    of payment. In no case shall more than 120 months of
10    creditable service be granted under this provision.
11        7. For retroactive service: Any employee who could have
12    but did not elect to become a participating employee, or
13    who should have been a participant in the Municipal Public
14    Utilities Annuity and Benefit Fund before that fund was
15    superseded, may receive creditable service for the period
16    of service not to exceed 50 months; however, a current or
17    former elected or appointed official of a participating
18    municipality may establish credit under this paragraph 7
19    for more than 50 months of service as an official of that
20    municipality, if the excess over 50 months is approved by
21    resolution of the governing body of the affected
22    municipality filed with the Fund before January 1, 2002.
23        Any employee who is a participating employee on or
24    after September 24, 1981 and who was excluded from
25    participation by the age restrictions removed by Public Act
26    82-596 may receive creditable service for the period, on or

 

 

09800SB2404ham001- 73 -LRB098 09018 JDS 46840 a

1    after January 1, 1979, excluded by the age restriction and,
2    in addition, if the governing body of the participating
3    municipality or participating instrumentality elects to
4    allow creditable service for all employees excluded by the
5    age restriction prior to January 1, 1979, for service
6    during the period prior to that date excluded by the age
7    restriction. Any employee who was excluded from
8    participation by the age restriction removed by Public Act
9    82-596 and who is not a participating employee on or after
10    September 24, 1981 may receive creditable service for
11    service after January 1, 1979. Creditable service under
12    this paragraph shall be granted upon payment of the
13    employee contributions which would have been required had
14    he participated, with interest at the effective rate for
15    each year from the end of the period of service established
16    to date of payment.
17        8. For accumulated unused sick leave: A participating
18    employee who first becomes a participating employee before
19    the effective date of this amendatory Act of the 98th
20    General Assembly and who is applying for a retirement
21    annuity shall be entitled to creditable service for that
22    portion of the employee's accumulated unused sick leave for
23    which payment is not received, as follows:
24            a. Sick leave days shall be limited to those
25        accumulated under a sick leave plan established by a
26        participating municipality or participating

 

 

09800SB2404ham001- 74 -LRB098 09018 JDS 46840 a

1        instrumentality which is available to all employees or
2        a class of employees.
3            b. Except as provided in item b-1, only sick leave
4        days accumulated with a participating municipality or
5        participating instrumentality with which the employee
6        was in service within 60 days of the effective date of
7        his retirement annuity shall be credited; If the
8        employee was in service with more than one employer
9        during this period only the sick leave days with the
10        employer with which the employee has the greatest
11        number of unpaid sick leave days shall be considered.
12            b-1. If the employee was in the service of more
13        than one employer as defined in item (2) of paragraph
14        (a) of subsection (A) of Section 7-132, then the sick
15        leave days from all such employers shall be credited,
16        as long as the creditable service attributed to those
17        sick leave days does not exceed the limitation in item
18        f of this paragraph 8. In calculating the creditable
19        service under this item b-1, the sick leave days from
20        the last employer shall be considered first, then the
21        remaining sick leave days shall be considered until
22        there are no more days or the maximum creditable sick
23        leave threshold under item f of this paragraph 8 has
24        been reached.
25            c. The creditable service granted shall be
26        considered solely for the purpose of computing the

 

 

09800SB2404ham001- 75 -LRB098 09018 JDS 46840 a

1        amount of the retirement annuity and shall not be used
2        to establish any minimum service period required by any
3        provision of the Illinois Pension Code, the effective
4        date of the retirement annuity, or the final rate of
5        earnings.
6            d. The creditable service shall be at the rate of
7        1/20 of a month for each full sick day, provided that
8        no more than 12 months may be credited under this
9        subdivision 8.
10            e. Employee contributions shall not be required
11        for creditable service under this subdivision 8.
12            f. Each participating municipality and
13        participating instrumentality with which an employee
14        has service within 60 days of the effective date of his
15        retirement annuity shall certify to the board the
16        number of accumulated unpaid sick leave days credited
17        to the employee at the time of termination of service.
18        9. For service transferred from another system:
19    Credits and creditable service shall be granted for service
20    under Article 3, 4, 5, 8, 14, or 16 of this Act, to any
21    active member of this Fund, and to any inactive member who
22    has been a county sheriff, upon transfer of such credits
23    pursuant to Section 3-110.3, 4-108.3, 5-235, 8-226.7,
24    14-105.6, or 16-131.4, and payment by the member of the
25    amount by which (1) the employer and employee contributions
26    that would have been required if he had participated in

 

 

09800SB2404ham001- 76 -LRB098 09018 JDS 46840 a

1    this Fund as a sheriff's law enforcement employee during
2    the period for which credit is being transferred, plus
3    interest thereon at the effective rate for each year,
4    compounded annually, from the date of termination of the
5    service for which credit is being transferred to the date
6    of payment, exceeds (2) the amount actually transferred to
7    the Fund. Such transferred service shall be deemed to be
8    service as a sheriff's law enforcement employee for the
9    purposes of Section 7-142.1.
10        10. For service transferred from an Article 3 system
11    under Section 3-110.8: Credits and creditable service
12    shall be granted for service under Article 3 of this Act as
13    provided in Section 3-110.8, to any active member of this
14    Fund upon transfer of such credits pursuant to Section
15    3-110.8. If the amount by which (1) the employer and
16    employee contributions that would have been required if he
17    had participated in this Fund during the period for which
18    credit is being transferred, plus interest thereon at the
19    effective rate for each year, compounded annually, from the
20    date of termination of the service for which credit is
21    being transferred to the date of payment, exceeds (2) the
22    amount actually transferred to the Fund, then the amount of
23    creditable service established under this paragraph 10
24    shall be reduced by a corresponding amount in accordance
25    with the rules and procedures established under this
26    paragraph 10.

 

 

09800SB2404ham001- 77 -LRB098 09018 JDS 46840 a

1        The board shall establish by rule the manner of making
2    the calculation required under this paragraph 10, taking
3    into account the appropriate actuarial assumptions; the
4    member's service, age, and salary history; the level of
5    funding of the employer; and any other factors that the
6    board determines to be relevant.
7        Until January 1, 2010, members who transferred service
8    from an Article 3 system under the provisions of Public Act
9    94-356 may establish additional credit in this Fund, but
10    only up to the amount of the service credit reduction in
11    that transfer, as calculated under the actuarial
12    assumptions. This credit may be established upon payment by
13    the member of an amount to be determined by the board,
14    equal to (1) the amount that would have been contributed as
15    employee and employer contributions had all the service
16    been as an employee under this Article, plus interest
17    thereon compounded annually from the date of service to the
18    date of transfer, less (2) the total amount transferred
19    from the Article 3 system, plus (3) interest on the
20    difference at the effective rate for each year, compounded
21    annually, from the date of the transfer to the date of
22    payment. The additional service credit is allowed under
23    this amendatory Act of the 95th General Assembly
24    notwithstanding the provisions of Article 3 terminating
25    all transferred credits on the date of transfer.
26    (b) Creditable service - amount:

 

 

09800SB2404ham001- 78 -LRB098 09018 JDS 46840 a

1        1. One month of creditable service shall be allowed for
2    each month for which a participating employee made
3    contributions as required under Section 7-173, or for which
4    creditable service is otherwise granted hereunder. Not
5    more than 1 month of service shall be credited and counted
6    for 1 calendar month, and not more than 1 year of service
7    shall be credited and counted for any calendar year. A
8    calendar month means a nominal month beginning on the first
9    day thereof, and a calendar year means a year beginning
10    January 1 and ending December 31.
11        2. A seasonal employee shall be given 12 months of
12    creditable service if he renders the number of months of
13    service normally required by the position in a 12-month
14    period and he remains in service for the entire 12-month
15    period. Otherwise a fractional year of service in the
16    number of months of service rendered shall be credited.
17        3. An intermittent employee shall be given creditable
18    service for only those months in which a contribution is
19    made under Section 7-173.
20    (c) No application for correction of credits or creditable
21service shall be considered unless the board receives an
22application for correction while (1) the applicant is a
23participating employee and in active employment with a
24participating municipality or instrumentality, or (2) while
25the applicant is actively participating in a pension fund or
26retirement system which is a participating system under the

 

 

09800SB2404ham001- 79 -LRB098 09018 JDS 46840 a

1Retirement Systems Reciprocal Act. A participating employee or
2other applicant shall not be entitled to credits or creditable
3service unless the required employee contributions are made in
4a lump sum or in installments made in accordance with board
5rule.
6    (d) Upon the granting of a retirement, surviving spouse or
7child annuity, a death benefit or a separation benefit, on
8account of any employee, all individual accumulated credits
9shall thereupon terminate. Upon the withdrawal of additional
10contributions, the credits applicable thereto shall thereupon
11terminate. Terminated credits shall not be applied to increase
12the benefits any remaining employee would otherwise receive
13under this Article.
14(Source: P.A. 96-299, eff. 8-11-09; 97-415, eff. 8-16-11.)
 
15    (40 ILCS 5/9-219)  (from Ch. 108 1/2, par. 9-219)
16    Sec. 9-219. Computation of service.
17    (1) In computing the term of service of an employee prior
18to the effective date, the entire period beginning on the date
19he was first appointed and ending on the day before the
20effective date, except any intervening period during which he
21was separated by withdrawal from service, shall be counted for
22all purposes of this Article.
23    (2) In computing the term of service of any employee on or
24after the effective date, the following periods of time shall
25be counted as periods of service for age and service, widow's

 

 

09800SB2404ham001- 80 -LRB098 09018 JDS 46840 a

1and child's annuity purposes:
2        (a) The time during which he performed the duties of
3    his position.
4        (b) Vacations, leaves of absence with whole or part
5    pay, and leaves of absence without pay not longer than 90
6    days.
7        (c) For an employee who is a member of a county police
8    department or a correctional officer with the county
9    department of corrections, approved leaves of absence
10    without pay during which the employee serves as a full-time
11    officer or employee of an employee association, the
12    membership of which consists of other participants in the
13    Fund, provided that the employee contributes to the Fund
14    (1) the amount that he would have contributed had he
15    remained an active employee in the position he occupied at
16    the time the leave of absence was granted, (2) an amount
17    calculated by the Board representing employer
18    contributions, and (3) regular interest thereon from the
19    date of service to the date of payment. However, if the
20    employee's application to establish credit under this
21    subsection is received by the Fund on or after July 1, 2002
22    and before July 1, 2003, the amount representing employer
23    contributions specified in item (2) shall be waived.
24        For a former member of a county police department who
25    has received a refund under Section 9-164, periods during
26    which the employee serves as head of an employee

 

 

09800SB2404ham001- 81 -LRB098 09018 JDS 46840 a

1    association, the membership of which consists of other
2    police officers, provided that the employee contributes to
3    the Fund (1) the amount that he would have contributed had
4    he remained an active member of the county police
5    department in the position he occupied at the time he left
6    service, (2) an amount calculated by the Board representing
7    employer contributions, and (3) regular interest thereon
8    from the date of service to the date of payment. However,
9    if the former member of the county police department
10    retires on or after January 1, 1993 but no later than March
11    1, 1993, the amount representing employer contributions
12    specified in item (2) shall be waived.
13        For leaves of absence to which this item (c) applies
14    and for other periods to which this item (c) applies,
15    including those leaves of absence and other periods of
16    service beginning before January 5, 2012 (the effective
17    date of Public Act 97-651) this amendatory Act of the 97th
18    General Assembly, the employee or former member must
19    continue to remain in sworn status, subject to the
20    professional standards of the public employer or those
21    terms established in statute.
22        (d) Any period of disability for which he received
23    disability benefit or whole or part pay.
24        (e) For a person who first becomes an employee before
25    the effective date of this amendatory Act of the 98th
26    General Assembly, accumulated Accumulated vacation or

 

 

09800SB2404ham001- 82 -LRB098 09018 JDS 46840 a

1    other time for which an employee who retires on or after
2    November 1, 1990 receives a lump sum payment at the time of
3    retirement, provided that contributions were made to the
4    fund at the time such lump sum payment was received. The
5    service granted for the lump sum payment shall not change
6    the employee's date of withdrawal for computing the
7    effective date of the annuity.
8        (f) An employee who first becomes an employee before
9    the effective date of this amendatory Act of the 98th
10    General Assembly may receive service credit for annuity
11    purposes for accumulated sick leave as of the date of the
12    employee's withdrawal from service, not to exceed a total
13    of 180 days, provided that the amount of such accumulated
14    sick leave is certified by the County Comptroller to the
15    Board and the employee pays an amount equal to 8.5% (9% for
16    members of the County Police Department who are eligible to
17    receive an annuity under Section 9-128.1) of the amount
18    that would have been paid had such accumulated sick leave
19    been paid at the employee's final rate of salary. Such
20    payment shall be made within 30 days after the date of
21    withdrawal and prior to receipt of the first annuity check.
22    The service credit granted for such accumulated sick leave
23    shall not change the employee's date of withdrawal for the
24    purpose of computing the effective date of the annuity.
25    (3) In computing the term of service of an employee on or
26after the effective date for ordinary disability benefit

 

 

09800SB2404ham001- 83 -LRB098 09018 JDS 46840 a

1purposes, the following periods of time shall be counted as
2periods of service:
3        (a) Unless otherwise specified in Section 9-157, the
4    time during which he performed the duties of his position.
5        (b) Paid vacations and leaves of absence with whole or
6    part pay.
7        (c) Any period for which he received duty disability
8    benefit.
9        (d) Any period of disability for which he received
10    whole or part pay.
11    (4) For an employee who on January 1, 1958, was transferred
12by Act of the 70th General Assembly from his position in a
13department of welfare of any city located in the county in
14which this Article is in force and effect to a similar position
15in a department of such county, service shall also be credited
16for ordinary disability benefit and child's annuity for such
17period of department of welfare service during which period he
18was a contributor to a statutory annuity and benefit fund in
19such city and for which purposes service credit would otherwise
20not be credited by virtue of such involuntary transfer.
21    (5) An employee described in subsection (e) of Section
229-108 shall receive credit for child's annuity and ordinary
23disability benefit for the period of time for which he was
24credited with service in the fund from which he was
25involuntarily separated through class or group transfer;
26provided, that no such credit shall be allowed to the extent

 

 

09800SB2404ham001- 84 -LRB098 09018 JDS 46840 a

1that it results in a duplication of credits or benefits, and
2neither shall such credit be allowed to the extent that it was
3or may be forfeited by the application for and acceptance of a
4refund from the fund from which the employee was transferred.
5    (6) Overtime or extra service shall not be included in
6computing service. Not more than 1 year of service shall be
7allowed for service rendered during any calendar year.
8    (7) Unused sick or vacation time shall not be used to
9compute the service of an employee who first becomes an
10employee on or after the effective date of this amendatory Act
11of the 98th General Assembly.
12(Source: P.A. 97-651, eff. 1-5-12.)
 
13    (40 ILCS 5/9-220)  (from Ch. 108 1/2, par. 9-220)
14    Sec. 9-220. Basis of service credit.
15    (a) In computing the period of service of any employee for
16annuity purposes under Section 9-134, the following provisions
17shall govern:
18        (1) All periods prior to the effective date shall be
19    computed in accordance with the provisions governing the
20    computation of such service.
21        (2) Service on or after the effective date shall
22    include:
23            (i) The actual period of time the employee
24        contributes or has contributed to the fund for service
25        rendered to age 65 plus the actual period of time after

 

 

09800SB2404ham001- 85 -LRB098 09018 JDS 46840 a

1        age 65 for which the employee performs the duties of
2        his position or performs such duties and is given a
3        county contribution for age and service annuity or
4        minimum annuity purposes.
5            (ii) Leaves of absence from duty, or vacation, for
6        which an employee receives all or part of his salary.
7            (iii) For a person who first becomes an employee
8        before the effective date of this amendatory Act of the
9        98th General Assembly, accumulated Accumulated
10        vacation or other time for which an employee who
11        retires on or after November 1, 1990 receives a lump
12        sum payment at the time of retirement, provided that
13        contributions were made to the fund at the time such
14        lump sum payment was received. The service granted for
15        the lump sum payment shall not change the employee's
16        date of withdrawal for computing the effective date of
17        the annuity.
18            (iv) For a person who first becomes an employee
19        before the effective date of this amendatory Act of the
20        98th General Assembly, accumulated Accumulated sick
21        leave as of the date of the employee's withdrawal from
22        service, not to exceed a total of 180 days, provided
23        that the amount of such accumulated sick leave is
24        certified by the County Comptroller to the Board and
25        the employee pays an amount equal to 8.5% (9% for
26        members of the County Police Department who are

 

 

09800SB2404ham001- 86 -LRB098 09018 JDS 46840 a

1        eligible to receive an annuity under Section 9-128.1)
2        of the amount that would have been paid had such
3        accumulated sick leave been paid at the employee's
4        final rate of salary. Such payment shall be made within
5        30 days after the date of withdrawal and prior to
6        receipt of the first annuity check. The service credit
7        granted for such accumulated sick leave shall not
8        change the employee's date of withdrawal for the
9        purpose of computing the effective date of the annuity.
10            (v) Periods during which the employee has had
11        contributions for annuity purposes made for him in
12        accordance with law while on military leave of absence
13        during World War II.
14            (vi) Periods during which the employee receives a
15        disability benefit under this Article.
16            (vii) For any person who first becomes a member on
17        or after January 1, 2011, the actual period of time the
18        employee contributes or has contributed to the fund for
19        service rendered up to the limitation on salary in
20        subsection (b-5) of Section 1-160 plus the actual
21        period of time thereafter for which the employee
22        performs the duties of his position and ceased
23        contributing due to the salary limitation in
24        subsection (b-5) of Section 1-160.
25        (3) The right to have certain periods of time
26    considered as service as stated in paragraph (2) of Section

 

 

09800SB2404ham001- 87 -LRB098 09018 JDS 46840 a

1    9-164 shall not apply for annuity purposes unless the
2    refunds shall have been repaid in accordance with this
3    Article.
4        (4) All service shall be computed in whole calendar
5    months, and at least 15 days of service in any one calendar
6    month shall constitute one calendar month of service, and 1
7    year of service shall be equal to the number of months,
8    days or hours for which an appropriation was made in the
9    annual appropriation ordinance for the position held by the
10    employee.
11        (5) Unused sick or vacation time shall not be used to
12    compute the service of an employee who first becomes an
13    employee on or after the effective date of this amendatory
14    Act of the 98th General Assembly.
15    (b) For all other annuity purposes of this Article the
16following schedule shall govern the computation of a year of
17service of an employee whose salary or wages is on the basis
18stated, and any fractional part of a year of service shall be
19determined according to said schedule:
20    Annual or Monthly Basis: Service during 4 months in any 1
21calendar year;
22    Weekly Basis: Service during any 17 weeks of any 1 calendar
23year, and service during any week shall constitute a week of
24service;
25    Daily Basis: Service during 100 days in any 1 calendar
26year, and service during any day shall constitute a day of

 

 

09800SB2404ham001- 88 -LRB098 09018 JDS 46840 a

1service;
2    Hourly Basis: Service during 800 hours in any 1 calendar
3year, and service during any hour shall constitute an hour of
4service.
5(Source: P.A. 96-1490, eff. 1-1-11.)
 
6    (40 ILCS 5/14-103.10)  (from Ch. 108 1/2, par. 14-103.10)
7    Sec. 14-103.10. Compensation.
8    (a) For periods of service prior to January 1, 1978, the
9full rate of salary or wages payable to an employee for
10personal services performed if he worked the full normal
11working period for his position, subject to the following
12maximum amounts: (1) prior to July 1, 1951, $400 per month or
13$4,800 per year; (2) between July 1, 1951 and June 30, 1957
14inclusive, $625 per month or $7,500 per year; (3) beginning
15July 1, 1957, no limitation.
16    In the case of service of an employee in a position
17involving part-time employment, compensation shall be
18determined according to the employees' earnings record.
19    (b) For periods of service on and after January 1, 1978,
20all remuneration for personal services performed defined as
21"wages" under the Social Security Enabling Act, including that
22part of such remuneration which is in excess of any maximum
23limitation provided in such Act, and including any benefits
24received by an employee under a sick pay plan in effect before
25January 1, 1981, but excluding lump sum salary payments:

 

 

09800SB2404ham001- 89 -LRB098 09018 JDS 46840 a

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

 

 

09800SB2404ham001- 90 -LRB098 09018 JDS 46840 a

1        (3) upon discharge or dismissal; and
2        (4) for approved holidays.
3    (f) Notwithstanding any other provision of this Code, the
4compensation of a Tier I member for the purposes of this Code
5shall not exceed, for periods of service on or after the
6effective date of this amendatory Act of the 98th General
7Assembly, the greater of (i) the limitation determined from
8time to time under subsection (b-5) of Section 1-160 of this
9Code for persons subject to that Section or (ii) the annual
10compensation of the member during the 365 days immediately
11preceding that effective date; except that this limitation does
12not apply to a member's compensation that is determined under
13an employment contract or collective bargaining agreement that
14is in effect on the effective date of this amendatory Act of
15the 98th General Assembly and has not been amended, renewed, or
16terminated after that date.
17(Source: P.A. 96-1490, eff. 1-1-11.)
 
18    (40 ILCS 5/14-103.40 new)
19    Sec. 14-103.40. Tier I member. "Tier I member": A member of
20this System who first became a member or participant before
21January 1, 2011 under any reciprocal retirement system or
22pension fund established under this Code other than a
23retirement system or pension fund established under Article 2,
243, 4, 5, 6, or 18 of this Code.
 

 

 

09800SB2404ham001- 91 -LRB098 09018 JDS 46840 a

1    (40 ILCS 5/14-103.41 new)
2    Sec. 14-103.41. Tier I retiree. "Tier I retiree": A former
3Tier I member who is receiving a retirement annuity.
 
4    (40 ILCS 5/14-104.3)  (from Ch. 108 1/2, par. 14-104.3)
5    Sec. 14-104.3. Notwithstanding provisions contained in
6Section 14-103.10, any person who first becomes a member before
7the effective date of this amendatory Act of the 98th General
8Assembly and who at the time of retirement and after December
96, 1983 receives compensation in a lump sum for accumulated
10vacation, sickness, or personal business may receive service
11credit for such periods by making contributions within 90 days
12of withdrawal, based on the rate of compensation in effect
13immediately prior to retirement and the contribution rate then
14in effect. Any person who first becomes a member on or after
15the effective date of this amendatory Act of the 98th General
16Assembly and who receives compensation in a lump sum for
17accumulated vacation, sickness, or personal business may not
18receive service credit for such periods. Exercising the option
19provided in this Section shall not change a member's date of
20withdrawal or final average compensation for purposes of
21computing the amount or effective date of a retirement annuity.
22Any annuitant who establishes service credit as herein provided
23shall have his retirement annuity adjusted retroactively to the
24date of retirement.
25(Source: P.A. 83-1362.)
 

 

 

09800SB2404ham001- 92 -LRB098 09018 JDS 46840 a

1    (40 ILCS 5/14-106)  (from Ch. 108 1/2, par. 14-106)
2    Sec. 14-106. Membership service credit.
3    (a) After January 1, 1944, all service of a member since he
4last became a member with respect to which contributions are
5made shall count as membership service; provided, that for
6service on and after July 1, 1950, 12 months of service shall
7constitute a year of membership service, the completion of 15
8days or more of service during any month shall constitute 1
9month of membership service, 8 to 15 days shall constitute 1/2
10month of membership service and less than 8 days shall
11constitute 1/4 month of membership service. The payroll record
12of each department shall constitute conclusive evidence of the
13record of service rendered by a member.
14    (b) For a member who is employed and paid on an
15academic-year basis rather than on a 12-month annual basis,
16employment for a full academic year shall constitute a full
17year of membership service, except that the member shall not
18receive more than one year of membership service credit (plus
19any additional service credit granted for unused sick leave)
20for service during any 12-month period. This subsection (b)
21applies to all such service for which the member has not begun
22to receive a retirement annuity before January 1, 2001.
23    (c) A person who first becomes a member before the
24effective date of this amendatory Act of the 98th General
25Assembly shall be entitled to additional service credit, under

 

 

09800SB2404ham001- 93 -LRB098 09018 JDS 46840 a

1rules prescribed by the Board, for accumulated unused sick
2leave credited to his account in the last Department on the
3date of withdrawal from service or for any period for which he
4would have been eligible to receive benefits under a sick pay
5plan authorized by law, if he had suffered a sickness or
6accident on the date of withdrawal from service. It shall be
7the responsibility of the last Department to certify to the
8Board the length of time salary or benefits would have been
9paid to the member based upon the accumulated unused sick leave
10or the applicable sick pay plan if he had become entitled
11thereto because of sickness on the date that his status as an
12employee terminated. This period of service credit granted
13under this paragraph shall not be considered in determining the
14date the retirement annuity is to begin, or final average
15compensation.
16    (d) A person who first becomes a member on or after the
17effective date of this amendatory Act of the 98th General
18Assembly shall not be entitled to additional service credit for
19accumulated unused sick leave.
20(Source: P.A. 92-14, eff. 6-28-01.)
 
21    (40 ILCS 5/14-107)  (from Ch. 108 1/2, par. 14-107)
22    Sec. 14-107. Retirement annuity - service and age -
23conditions.
24    (a) A member is entitled to a retirement annuity after
25having at least 8 years of creditable service.

 

 

09800SB2404ham001- 94 -LRB098 09018 JDS 46840 a

1    (b) A member who has at least 35 years of creditable
2service may claim his or her retirement annuity at any age. A
3member having at least 8 years of creditable service but less
4than 35 may claim his or her retirement annuity upon or after
5attainment of age 60 or, beginning January 1, 2001, any lesser
6age which, when added to the number of years of his or her
7creditable service, equals at least 85. A member upon or after
8attainment of age 55 having at least 25 years of creditable
9service (30 years if retirement is before January 1, 2001) may
10elect to receive the lower retirement annuity provided in
11paragraph (c) of Section 14-108 of this Code. For purposes of
12the rule of 85, portions of years shall be counted in whole
13months.
14    (c) Notwithstanding subsection (b) of this Section, for a
15Tier I member who begins receiving a retirement annuity under
16this Article on or after July 1, 2014:
17        (1) If the Tier I member is at least 45 years old on
18    the effective date of this amendatory Act of the 98th
19    General Assembly, then the references to age 55 and 60 in
20    subsection (b) of this Section remain unchanged and the
21    references to 85 in subsection (b) of this Section remain
22    unchanged.
23        (2) If the Tier I member is at least 40 but less than
24    45 years old on the effective date of this amendatory Act
25    of the 98th General Assembly, then the references to age 55
26    and 60 in subsection (b) of this Section are increased by

 

 

09800SB2404ham001- 95 -LRB098 09018 JDS 46840 a

1    one year and the references to 85 in subsection (b) are
2    increased to 87.
3        (3) If the Tier I member is at least 35 but less than
4    40 years old on the effective date of this amendatory Act
5    of the 98th General Assembly, then the references to age 55
6    and 60 in subsection (b) of this Section are increased by 3
7    years and the references to 85 in subsection (b) are
8    increased to 91.
9        (4) If the Tier I member is less than 35 years old on
10    the effective date of this amendatory Act of the 98th
11    General Assembly, then the references to age 55 and 60 in
12    subsection (b) of this Section are increased by 5 years and
13    the references to 85 in subsection (b) are increased to 95.
14    Notwithstanding Section 1-103.1, this subsection (c)
15applies without regard to whether or not the Tier I member is
16in active service under this Article on or after the effective
17date of this amendatory Act of the 98th General Assembly.
18    (d) The allowance shall begin with the first full calendar
19month specified in the member's application therefor, the first
20day of which shall not be before the date of withdrawal as
21approved by the board. Regardless of the date of withdrawal,
22the allowance need not begin within one year of application
23therefor.
24(Source: P.A. 91-927, eff. 12-14-00.)
 
25    (40 ILCS 5/14-108)  (from Ch. 108 1/2, par. 14-108)

 

 

09800SB2404ham001- 96 -LRB098 09018 JDS 46840 a

1    Sec. 14-108. Amount of retirement annuity. A member who has
2contributed to the System for at least 12 months shall be
3entitled to a prior service annuity for each year of certified
4prior service credited to him, except that a member shall
5receive 1/3 of the prior service annuity for each year of
6service for which contributions have been made and all of such
7annuity shall be payable after the member has made
8contributions for a period of 3 years. Proportionate amounts
9shall be payable for service of less than a full year after
10completion of at least 12 months.
11    The total period of service to be considered in
12establishing the measure of prior service annuity shall include
13service credited in the Teachers' Retirement System of the
14State of Illinois and the State Universities Retirement System
15for which contributions have been made by the member to such
16systems; provided that at least 1 year of the total period of 3
17years prescribed for the allowance of a full measure of prior
18service annuity shall consist of membership service in this
19system for which credit has been granted.
20    (a) In the case of a member who retires on or after January
211, 1998 and is a noncovered employee, the retirement annuity
22for membership service and prior service shall be 2.2% of final
23average compensation for each year of service. Any service
24credit established as a covered employee shall be computed as
25stated in paragraph (b).
26    (b) In the case of a member who retires on or after January

 

 

09800SB2404ham001- 97 -LRB098 09018 JDS 46840 a

11, 1998 and is a covered employee, the retirement annuity for
2membership service and prior service shall be computed as
3stated in paragraph (a) for all service credit established as a
4noncovered employee; for service credit established as a
5covered employee it shall be 1.67% of final average
6compensation for each year of service.
7    (c) For a member retiring after attaining age 55 but before
8age 60 with at least 30 but less than 35 years of creditable
9service if retirement is before January 1, 2001, or with at
10least 25 but less than 30 years of creditable service if
11retirement is on or after January 1, 2001, the retirement
12annuity shall be reduced by 1/2 of 1% for each month that the
13member's age is under age 60 at the time of retirement. For
14members to whom subsection (c) of Section 14-107 applies, the
15references to age 55 and 60 in this subsection (c) are
16increased as provided in subsection (c) of Section 14-107.
17    (d) A retirement annuity shall not exceed 75% of final
18average compensation, subject to such extension as may result
19from the application of Section 14-114 or Section 14-115.
20    (e) The retirement annuity payable to any covered employee
21who is a member of the System and in service on January 1,
221969, or in service thereafter in 1969 as a result of
23legislation enacted by the Illinois General Assembly
24transferring the member to State employment from county
25employment in a county Department of Public Aid in counties of
263,000,000 or more population, under a plan of coordination with

 

 

09800SB2404ham001- 98 -LRB098 09018 JDS 46840 a

1the Old Age, Survivors and Disability provisions thereof, if
2not fully insured for Old Age Insurance payments under the
3Federal Old Age, Survivors and Disability Insurance provisions
4at the date of acceptance of a retirement annuity, shall not be
5less than the amount for which the member would have been
6eligible if coordination were not applicable.
7    (f) The retirement annuity payable to any covered employee
8who is a member of the System and in service on January 1,
91969, or in service thereafter in 1969 as a result of the
10legislation designated in the immediately preceding paragraph,
11if fully insured for Old Age Insurance payments under the
12Federal Social Security Act at the date of acceptance of a
13retirement annuity, shall not be less than an amount which when
14added to the Primary Insurance Benefit payable to the member
15upon attainment of age 65 under such Federal Act, will equal
16the annuity which would otherwise be payable if the coordinated
17plan of coverage were not applicable.
18    (g) In the case of a member who is a noncovered employee,
19the retirement annuity for membership service as a security
20employee of the Department of Corrections or security employee
21of the Department of Human Services shall be: if retirement
22occurs on or after January 1, 2001, 3% of final average
23compensation for each year of creditable service; or if
24retirement occurs before January 1, 2001, 1.9% of final average
25compensation for each of the first 10 years of service, 2.1%
26for each of the next 10 years of service, 2.25% for each year

 

 

09800SB2404ham001- 99 -LRB098 09018 JDS 46840 a

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

 

 

09800SB2404ham001- 100 -LRB098 09018 JDS 46840 a

1persons transferring to this System under Section 14-108.2 or
214-108.2c who have service credit under Article 16 of this Code
3may count such service toward establishing their eligibility
4under the 20-year service requirement of this subsection; but
5such service may be used only for establishing such
6eligibility, and not for the purpose of increasing or
7calculating any benefit.
8    (k) (Blank).
9    (l) The changes to this Section made by this amendatory Act
10of 1997 (changing certain retirement annuity formulas from a
11stepped rate to a flat rate) apply to members who retire on or
12after January 1, 1998, without regard to whether employment
13terminated before the effective date of this amendatory Act of
141997. An annuity shall not be calculated in steps by using the
15new flat rate for some steps and the superseded stepped rate
16for other steps of the same type of service.
17(Source: P.A. 91-927, eff. 12-14-00; 92-14, eff. 6-28-01.)
 
18    (40 ILCS 5/14-110)  (from Ch. 108 1/2, par. 14-110)
19    Sec. 14-110. Alternative retirement annuity.
20    (a) Any member who has withdrawn from service with not less
21than 20 years of eligible creditable service and has attained
22age 55, and any member who has withdrawn from service with not
23less than 25 years of eligible creditable service and has
24attained age 50, regardless of whether the attainment of either
25of the specified ages occurs while the member is still in

 

 

09800SB2404ham001- 101 -LRB098 09018 JDS 46840 a

1service, shall be entitled to receive at the option of the
2member, in lieu of the regular or minimum retirement annuity, a
3retirement annuity computed as follows:
4        (i) for periods of service as a noncovered employee: if
5    retirement occurs on or after January 1, 2001, 3% of final
6    average compensation for each year of creditable service;
7    if retirement occurs before January 1, 2001, 2 1/4% of
8    final average compensation for each of the first 10 years
9    of creditable service, 2 1/2% for each year above 10 years
10    to and including 20 years of creditable service, and 2 3/4%
11    for each year of creditable service above 20 years; and
12        (ii) for periods of eligible creditable service as a
13    covered employee: if retirement occurs on or after January
14    1, 2001, 2.5% of final average compensation for each year
15    of creditable service; if retirement occurs before January
16    1, 2001, 1.67% of final average compensation for each of
17    the first 10 years of such service, 1.90% for each of the
18    next 10 years of such service, 2.10% for each year of such
19    service in excess of 20 but not exceeding 30, and 2.30% for
20    each year in excess of 30.
21    Such annuity shall be subject to a maximum of 75% of final
22average compensation if retirement occurs before January 1,
232001 or to a maximum of 80% of final average compensation if
24retirement occurs on or after January 1, 2001.
25    These rates shall not be applicable to any service
26performed by a member as a covered employee which is not

 

 

09800SB2404ham001- 102 -LRB098 09018 JDS 46840 a

1eligible creditable service. Service as a covered employee
2which is not eligible creditable service shall be subject to
3the rates and provisions of Section 14-108.
4    (a-5) Notwithstanding subsection (a) of this Section, for a
5Tier I member who begins receiving a retirement annuity under
6this Section on or after July 1, 2014:
7        (1) If the Tier I member is at least 45 years old on
8    the effective date of this amendatory Act of the 98th
9    General Assembly, then the references to age 50 and 55 in
10    subsection (a) of this Section remain unchanged.
11        (2) If the Tier I member is at least 40 but less than
12    45 years old on the effective date of this amendatory Act
13    of the 98th General Assembly, then the references to age 50
14    and 55 in subsection (a) of this Section are increased by
15    one year.
16        (3) If the Tier I member is at least 35 but less than
17    40 years old on the effective date of this amendatory Act
18    of the 98th General Assembly, then the references to age 50
19    and 55 in subsection (a) of this Section are increased by 3
20    years.
21        (4) If the Tier I member is less than 35 years old on
22    the effective date of this amendatory Act of the 98th
23    General Assembly, then the references to age 50 and 55 in
24    subsection (a) of this Section are increased by 5 years.
25    Notwithstanding Section 1-103.1, this subsection (a-5)
26applies without regard to whether or not the Tier I member is

 

 

09800SB2404ham001- 103 -LRB098 09018 JDS 46840 a

1in active service under this Article on or after the effective
2date of this amendatory Act of the 98th General Assembly.
3    (b) For the purpose of this Section, "eligible creditable
4service" means creditable service resulting from service in one
5or more of the following positions:
6        (1) State policeman;
7        (2) fire fighter in the fire protection service of a
8    department;
9        (3) air pilot;
10        (4) special agent;
11        (5) investigator for the Secretary of State;
12        (6) conservation police officer;
13        (7) investigator for the Department of Revenue or the
14    Illinois Gaming Board;
15        (8) security employee of the Department of Human
16    Services;
17        (9) Central Management Services security police
18    officer;
19        (10) security employee of the Department of
20    Corrections or the Department of Juvenile Justice;
21        (11) dangerous drugs investigator;
22        (12) investigator for the Department of State Police;
23        (13) investigator for the Office of the Attorney
24    General;
25        (14) controlled substance inspector;
26        (15) investigator for the Office of the State's

 

 

09800SB2404ham001- 104 -LRB098 09018 JDS 46840 a

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

 

 

09800SB2404ham001- 105 -LRB098 09018 JDS 46840 a

1    Personnel Code, states that his principal duty is the
2    operation of aircraft, and who possesses a pilot's license;
3    however, the change in this definition made by this
4    amendatory Act of 1983 shall not operate to exclude any
5    noncovered employee who was an "air pilot" for the purposes
6    of this Section on January 1, 1984.
7        (4) The term "special agent" means any person who by
8    reason of employment by the Division of Narcotic Control,
9    the Bureau of Investigation or, after July 1, 1977, the
10    Division of Criminal Investigation, the Division of
11    Internal Investigation, the Division of Operations, or any
12    other Division or organizational entity in the Department
13    of State Police is vested by law with duties to maintain
14    public order, investigate violations of the criminal law of
15    this State, enforce the laws of this State, make arrests
16    and recover property. The term "special agent" includes any
17    title or position in the Department of State Police that is
18    held by an individual employed under the State Police Act.
19        (5) The term "investigator for the Secretary of State"
20    means any person employed by the Office of the Secretary of
21    State and vested with such investigative duties as render
22    him ineligible for coverage under the Social Security Act
23    by reason of Sections 218(d)(5)(A), 218(d)(8)(D) and
24    218(l)(1) of that Act.
25        A person who became employed as an investigator for the
26    Secretary of State between January 1, 1967 and December 31,

 

 

09800SB2404ham001- 106 -LRB098 09018 JDS 46840 a

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

 

 

09800SB2404ham001- 107 -LRB098 09018 JDS 46840 a

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

 

 

09800SB2404ham001- 108 -LRB098 09018 JDS 46840 a

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

 

 

09800SB2404ham001- 109 -LRB098 09018 JDS 46840 a

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

 

 

09800SB2404ham001- 110 -LRB098 09018 JDS 46840 a

1        (14) "Controlled substance inspector" means any person
2    who is employed as such by the Department of Professional
3    Regulation and is vested with such law enforcement duties
4    as render him ineligible for coverage under the Social
5    Security Act by reason of Sections 218(d)(5)(A),
6    218(d)(8)(D) and 218(l)(1) of that Act. The term
7    "controlled substance inspector" includes the Program
8    Executive of Enforcement and the Assistant Program
9    Executive of Enforcement.
10        (15) The term "investigator for the Office of the
11    State's Attorneys Appellate Prosecutor" means a person
12    employed in that capacity on a full time basis under the
13    authority of Section 7.06 of the State's Attorneys
14    Appellate Prosecutor's Act.
15        (16) "Commerce Commission police officer" means any
16    person employed by the Illinois Commerce Commission who is
17    vested with such law enforcement duties as render him
18    ineligible for coverage under the Social Security Act by
19    reason of Sections 218(d)(5)(A), 218(d)(8)(D), and
20    218(l)(1) of that Act.
21        (17) "Arson investigator" means any person who is
22    employed as such by the Office of the State Fire Marshal
23    and is vested with such law enforcement duties as render
24    the person ineligible for coverage under the Social
25    Security Act by reason of Sections 218(d)(5)(A),
26    218(d)(8)(D), and 218(l)(1) of that Act. A person who was

 

 

09800SB2404ham001- 111 -LRB098 09018 JDS 46840 a

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

 

 

09800SB2404ham001- 112 -LRB098 09018 JDS 46840 a

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

 

 

09800SB2404ham001- 113 -LRB098 09018 JDS 46840 a

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

 

 

09800SB2404ham001- 114 -LRB098 09018 JDS 46840 a

1in this Section.
2    (f) For purposes of calculating retirement annuities under
3this Section, periods of service rendered after December 31,
41968 and before October 1, 1975 as a covered employee in the
5position of special agent, conservation police officer, mental
6health police officer, or investigator for the Secretary of
7State, shall be deemed to have been service as a noncovered
8employee, provided that the employee pays to the System prior
9to retirement an amount equal to (1) the difference between the
10employee contributions that would have been required for such
11service as a noncovered employee, and the amount of employee
12contributions actually paid, plus (2) if payment is made after
13July 31, 1987, regular interest on the amount specified in item
14(1) from the date of service to the date of payment.
15    For purposes of calculating retirement annuities under
16this Section, periods of service rendered after December 31,
171968 and before January 1, 1982 as a covered employee in the
18position of investigator for the Department of Revenue shall be
19deemed to have been service as a noncovered employee, provided
20that the employee pays to the System prior to retirement an
21amount equal to (1) the difference between the employee
22contributions that would have been required for such service as
23a noncovered employee, and the amount of employee contributions
24actually paid, plus (2) if payment is made after January 1,
251990, regular interest on the amount specified in item (1) from
26the date of service to the date of payment.

 

 

09800SB2404ham001- 115 -LRB098 09018 JDS 46840 a

1    (g) A State policeman may elect, not later than January 1,
21990, to establish eligible creditable service for up to 10
3years of his service as a policeman under Article 3, by filing
4a written election with the Board, accompanied by payment of an
5amount to be determined by the Board, equal to (i) the
6difference between the amount of employee and employer
7contributions transferred to the System under Section 3-110.5,
8and the amounts that would have been contributed had such
9contributions been made at the rates applicable to State
10policemen, plus (ii) interest thereon at the effective rate for
11each year, compounded annually, from the date of service to the
12date of payment.
13    Subject to the limitation in subsection (i), a State
14policeman may elect, not later than July 1, 1993, to establish
15eligible creditable service for up to 10 years of his service
16as a member of the County Police Department under Article 9, by
17filing a written election with the Board, accompanied by
18payment of an amount to be determined by the Board, equal to
19(i) the difference between the amount of employee and employer
20contributions transferred to the System under Section 9-121.10
21and the amounts that would have been contributed had those
22contributions been made at the rates applicable to State
23policemen, plus (ii) interest thereon at the effective rate for
24each year, compounded annually, from the date of service to the
25date of payment.
26    (h) Subject to the limitation in subsection (i), a State

 

 

09800SB2404ham001- 116 -LRB098 09018 JDS 46840 a

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

 

 

09800SB2404ham001- 117 -LRB098 09018 JDS 46840 a

1    Subject to the limitation in subsection (i), a State
2policeman, conservation police officer, or investigator for
3the Secretary of State may elect to establish eligible
4creditable service for up to 5 years of service as a police
5officer under Article 3, a policeman under Article 5, a
6sheriff's law enforcement employee under Article 7, a member of
7the county police department under Article 9, or a police
8officer under Article 15 by filing a written election with the
9Board and paying to the System an amount to be determined by
10the Board, equal to (i) the difference between the amount of
11employee and employer contributions transferred to the System
12under Section 3-110.6, 5-236, 7-139.8, 9-121.10, or 15-134.4
13and the amounts that would have been contributed had such
14contributions been made at the rates applicable to State
15policemen, plus (ii) interest thereon at the effective rate for
16each year, compounded annually, from the date of service to the
17date of payment.
18    Subject to the limitation in subsection (i), an
19investigator for the Office of the Attorney General, or an
20investigator for the Department of Revenue, may elect to
21establish eligible creditable service for up to 5 years of
22service as a police officer under Article 3, a policeman under
23Article 5, a sheriff's law enforcement employee under Article
247, or a member of the county police department under Article 9
25by filing a written election with the Board within 6 months
26after August 25, 2009 (the effective date of Public Act 96-745)

 

 

09800SB2404ham001- 118 -LRB098 09018 JDS 46840 a

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

 

 

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

 

 

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

 

 

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

 

 

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1Section by paying to the Fund an amount equal to (1) the
2additional employee contribution required under Section
314-133, plus (2) the additional employer contribution required
4under Section 14-131, plus (3) interest on items (1) and (2) at
5the actuarially assumed rate from the date of the service to
6the date of payment.
7(Source: P.A. 95-530, eff. 8-28-07; 95-1036, eff. 2-17-09;
896-37, eff. 7-13-09; 96-745, eff. 8-25-09; 96-1000, eff.
97-2-10.)
 
10    (40 ILCS 5/14-114)  (from Ch. 108 1/2, par. 14-114)
11    Sec. 14-114. Automatic increase in retirement annuity.
12    (a) Except as provided in subsections (a-1) and (a-2), any
13Any person receiving a retirement annuity under this Article
14who retires having attained age 60, or who retires before age
1560 having at least 35 years of creditable service, or who
16retires on or after January 1, 2001 at an age which, when added
17to the number of years of his or her creditable service, equals
18at least 85, shall, on January 1 next following the first full
19year of retirement, have the amount of the then fixed and
20payable monthly retirement annuity increased 3%. Any person
21receiving a retirement annuity under this Article who retires
22before attainment of age 60 and with less than (i) 35 years of
23creditable service if retirement is before January 1, 2001, or
24(ii) the number of years of creditable service which, when
25added to the member's age, would equal 85, if retirement is on

 

 

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1or after January 1, 2001, shall have the amount of the fixed
2and payable retirement annuity increased by 3% on the January 1
3occurring on or next following (1) attainment of age 60, or (2)
4the first anniversary of retirement, whichever occurs later.
5However, for persons who receive the alternative retirement
6annuity under Section 14-110, references in this subsection (a)
7to attainment of age 60 shall be deemed to refer to attainment
8of age 55. For a person receiving early retirement incentives
9under Section 14-108.3 whose retirement annuity began after
10January 1, 1992 pursuant to an extension granted under
11subsection (e) of that Section, the first anniversary of
12retirement shall be deemed to be January 1, 1993. For a person
13who retires on or after June 28, 2001 and on or before October
141, 2001, and whose retirement annuity is calculated, in whole
15or in part, under Section 14-110 or subsection (g) or (h) of
16Section 14-108, the first anniversary of retirement shall be
17deemed to be January 1, 2002.
18    On each January 1 following the date of the initial
19increase under this subsection, the employee's monthly
20retirement annuity shall be increased by an additional 3%.
21    Beginning January 1, 1990 and except as provided in
22subsections (a-1) and (a-2), all automatic annual increases
23payable under this Section shall be calculated as a percentage
24of the total annuity payable at the time of the increase,
25including previous increases granted under this Article.
26    (a-1) Notwithstanding any other provision of this Article,

 

 

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1for a Tier I retiree, the amount of each automatic annual
2increase in retirement annuity occurring on or after the
3effective date of this amendatory Act of the 98th General
4Assembly shall be 3% of the lesser of (1) the total annuity
5payable at the time of the increase, including previous
6increases granted or (2) $800 ($1,000 if the annuity is based
7primarily upon service as a noncovered employee) multiplied by
8the number of years of creditable service upon which the
9annuity is based.
10    (a-2) Notwithstanding any other provision of this Article,
11for a Tier I retiree, the monthly retirement annuity shall
12first be subject to annual increases on the January 1 occurring
13on or next after the attainment of age 67 or the January 1
14occurring on or next after the fifth anniversary of the annuity
15start date, whichever occurs earlier. If on the effective date
16of this amendatory Act of the 98th General Assembly a Tier I
17retiree has already received an annual increase under this
18Section but does not yet meet the new eligibility requirements
19of this subsection, the annual increases already received shall
20continue in force, but no additional annual increase shall be
21granted until the Tier I retiree meets the new eligibility
22requirements.
23    (a-3) Notwithstanding Section 1-103.1, subsections (a-1)
24and (a-2) apply without regard to whether or not the Tier I
25retiree is in active service under this Article on or after the
26effective date of this amendatory Act of the 98th General

 

 

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1Assembly.
2    (b) The provisions of subsection (a) of this Section shall
3be applicable to an employee only if the employee makes the
4additional contributions required after December 31, 1969 for
5the purpose of the automatic increases for not less than the
6equivalent of one full year. If an employee becomes an
7annuitant before his additional contributions equal one full
8year's contributions based on his salary at the date of
9retirement, the employee may pay the necessary balance of the
10contributions to the system, without interest, and be eligible
11for the increasing annuity authorized by this Section.
12    (c) The provisions of subsection (a) of this Section shall
13not be applicable to any annuitant who is on retirement on
14December 31, 1969, and thereafter returns to State service,
15unless the member has established at least one year of
16additional creditable service following reentry into service.
17    (d) In addition to other increases which may be provided by
18this Section, on January 1, 1981 any annuitant who was
19receiving a retirement annuity on or before January 1, 1971
20shall have his retirement annuity then being paid increased $1
21per month for each year of creditable service. On January 1,
221982, any annuitant who began receiving a retirement annuity on
23or before January 1, 1977, shall have his retirement annuity
24then being paid increased $1 per month for each year of
25creditable service.
26    On January 1, 1987, any annuitant who began receiving a

 

 

09800SB2404ham001- 126 -LRB098 09018 JDS 46840 a

1retirement annuity on or before January 1, 1977, shall have the
2monthly retirement annuity increased by an amount equal to 8
3per year of creditable service times the number of years that
4have elapsed since the annuity began.
5    (e) Every person who receives the alternative retirement
6annuity under Section 14-110 and who is eligible to receive the
73% increase under subsection (a) on January 1, 1986, shall also
8receive on that date a one-time increase in retirement annuity
9equal to the difference between (1) his actual retirement
10annuity on that date, including any increases received under
11subsection (a), and (2) the amount of retirement annuity he
12would have received on that date if the amendments to
13subsection (a) made by Public Act 84-162 had been in effect
14since the date of his retirement.
15(Source: P.A. 91-927, eff. 12-14-00; 92-14, eff. 6-28-01;
1692-651, eff. 7-11-02.)
 
17    (40 ILCS 5/14-131)
18    Sec. 14-131. Contributions by State.
19    (a) The State shall make contributions to the System by
20appropriations of amounts which, together with other employer
21contributions from trust, federal, and other funds, employee
22contributions, investment income, and other income, will be
23sufficient to meet the cost of maintaining and administering
24the System on a 100% 90% funded basis in accordance with
25actuarial recommendations by the end of State fiscal year 2044.

 

 

09800SB2404ham001- 127 -LRB098 09018 JDS 46840 a

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

 

 

09800SB2404ham001- 128 -LRB098 09018 JDS 46840 a

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

 

 

09800SB2404ham001- 129 -LRB098 09018 JDS 46840 a

1fiscal year General Revenue Fund contribution as certified by
2the System pursuant to Section 14-135.08 of the Illinois
3Pension Code.
4    (d) If an employee is paid from trust funds or federal
5funds, the department or other employer shall pay employer
6contributions from those funds to the System at the certified
7rate, unless the terms of the trust or the federal-State
8agreement preclude the use of the funds for that purpose, in
9which case the required employer contributions shall be paid by
10the State. From the effective date of this amendatory Act of
11the 93rd General Assembly through the payment of the final
12payroll from fiscal year 2004 appropriations, the department or
13other employer shall not pay contributions for the remainder of
14fiscal year 2004 but shall instead make payments as required
15under subsection (a-1) of Section 14.1 of the State Finance
16Act. The department or other employer shall resume payment of
17contributions at the commencement of fiscal year 2005.
18    (e) For State fiscal years 2015 through 2044, the minimum
19contribution to the System to be made by the State for each
20fiscal year shall be an amount determined by the System to be
21equal to the sum of (1) the State's portion of the projected
22normal cost for that fiscal year, plus (2) an amount sufficient
23to bring the total assets of the System up to 100% of the total
24actuarial liabilities of the System by the end of State fiscal
25year 2044. In making these determinations, the required State
26contribution shall be calculated each year as a level

 

 

09800SB2404ham001- 130 -LRB098 09018 JDS 46840 a

1percentage of payroll over the years remaining to and including
2fiscal year 2044 and shall be determined under the entry age
3normal actuarial cost method.
4    For State fiscal years 2012 through 2014 2045, the minimum
5contribution to the System to be made by the State for each
6fiscal year shall be an amount determined by the System to be
7sufficient to bring the total assets of the System up to 90% of
8the total actuarial liabilities of the System by the end of
9State fiscal year 2045. In making these determinations, the
10required State contribution shall be calculated each year as a
11level percentage of payroll over the years remaining to and
12including fiscal year 2045 and shall be determined under the
13projected unit credit actuarial cost method.
14    For State fiscal years 1996 through 2005, the State
15contribution to the System, as a percentage of the applicable
16employee payroll, shall be increased in equal annual increments
17so that by State fiscal year 2011, the State is contributing at
18the rate required under this Section; except that (i) for State
19fiscal year 1998, for all purposes of this Code and any other
20law of this State, the certified percentage of the applicable
21employee payroll shall be 5.052% for employees earning eligible
22creditable service under Section 14-110 and 6.500% for all
23other employees, notwithstanding any contrary certification
24made under Section 14-135.08 before the effective date of this
25amendatory Act of 1997, and (ii) in the following specified
26State fiscal years, the State contribution to the System shall

 

 

09800SB2404ham001- 131 -LRB098 09018 JDS 46840 a

1not be less than the following indicated percentages of the
2applicable employee payroll, even if the indicated percentage
3will produce a State contribution in excess of the amount
4otherwise required under this subsection and subsection (a):
59.8% in FY 1999; 10.0% in FY 2000; 10.2% in FY 2001; 10.4% in FY
62002; 10.6% in FY 2003; and 10.8% in FY 2004.
7    Notwithstanding any other provision of this Article, the
8total required State contribution to the System for State
9fiscal year 2006 is $203,783,900.
10    Notwithstanding any other provision of this Article, the
11total required State contribution to the System for State
12fiscal year 2007 is $344,164,400.
13    For each of State fiscal years 2008 through 2009, the State
14contribution to the System, as a percentage of the applicable
15employee payroll, shall be increased in equal annual increments
16from the required State contribution for State fiscal year
172007, so that by State fiscal year 2011, the State is
18contributing at the rate otherwise required under this Section.
19    Notwithstanding any other provision of this Article, the
20total required State General Revenue Fund contribution for
21State fiscal year 2010 is $723,703,100 and shall be made from
22the proceeds of bonds sold in fiscal year 2010 pursuant to
23Section 7.2 of the General Obligation Bond Act, less (i) the
24pro rata share of bond sale expenses determined by the System's
25share of total bond proceeds, (ii) any amounts received from
26the General Revenue Fund in fiscal year 2010, and (iii) any

 

 

09800SB2404ham001- 132 -LRB098 09018 JDS 46840 a

1reduction in bond proceeds due to the issuance of discounted
2bonds, if applicable.
3    Notwithstanding any other provision of this Article, the
4total required State General Revenue Fund contribution for
5State fiscal year 2011 is the amount recertified by the System
6on or before April 1, 2011 pursuant to Section 14-135.08 and
7shall be made from the proceeds of bonds sold in fiscal year
82011 pursuant to Section 7.2 of the General Obligation Bond
9Act, less (i) the pro rata share of bond sale expenses
10determined by the System's share of total bond proceeds, (ii)
11any amounts received from the General Revenue Fund in fiscal
12year 2011, and (iii) any reduction in bond proceeds due to the
13issuance of discounted bonds, if applicable.
14    Beginning in State fiscal year 2045, the minimum State
15contribution for each fiscal year shall be the amount needed to
16maintain the total assets of the System at 100% of the total
17actuarial liabilities of the System.
18    Beginning in State fiscal year 2046, the minimum State
19contribution for each fiscal year shall be the amount needed to
20maintain the total assets of the System at 90% of the total
21actuarial liabilities of the System.
22    Amounts received by the System pursuant to Section 25 of
23the Budget Stabilization Act or Section 8.12 of the State
24Finance Act in any fiscal year do not reduce and do not
25constitute payment of any portion of the minimum State
26contribution required under this Article in that fiscal year.

 

 

09800SB2404ham001- 133 -LRB098 09018 JDS 46840 a

1Such amounts shall not reduce, and shall not be included in the
2calculation of, the required State contributions under this
3Article in any future year until the System has reached a
4funding ratio of at least 100% 90%. A reference in this Article
5to the "required State contribution" or any substantially
6similar term does not include or apply to any amounts payable
7to the System under Section 25 of the Budget Stabilization Act.
8    Notwithstanding any other provision of this Section, the
9required State contribution for State fiscal year 2005 and for
10fiscal year 2008 and each fiscal year thereafter through State
11fiscal year 2014, as calculated under this Section and
12certified under Section 14-135.08, shall not exceed an amount
13equal to (i) the amount of the required State contribution that
14would have been calculated under this Section for that fiscal
15year if the System had not received any payments under
16subsection (d) of Section 7.2 of the General Obligation Bond
17Act, minus (ii) the portion of the State's total debt service
18payments for that fiscal year on the bonds issued in fiscal
19year 2003 for the purposes of that Section 7.2, as determined
20and certified by the Comptroller, that is the same as the
21System's portion of the total moneys distributed under
22subsection (d) of Section 7.2 of the General Obligation Bond
23Act. In determining this maximum for State fiscal years 2008
24through 2010, however, the amount referred to in item (i) shall
25be increased, as a percentage of the applicable employee
26payroll, in equal increments calculated from the sum of the

 

 

09800SB2404ham001- 134 -LRB098 09018 JDS 46840 a

1required State contribution for State fiscal year 2007 plus the
2applicable portion of the State's total debt service payments
3for fiscal year 2007 on the bonds issued in fiscal year 2003
4for the purposes of Section 7.2 of the General Obligation Bond
5Act, so that, by State fiscal year 2011, the State is
6contributing at the rate otherwise required under this Section.
7    (f) After the submission of all payments for eligible
8employees from personal services line items in fiscal year 2004
9have been made, the Comptroller shall provide to the System a
10certification of the sum of all fiscal year 2004 expenditures
11for personal services that would have been covered by payments
12to the System under this Section if the provisions of this
13amendatory Act of the 93rd General Assembly had not been
14enacted. Upon receipt of the certification, the System shall
15determine the amount due to the System based on the full rate
16certified by the Board under Section 14-135.08 for fiscal year
172004 in order to meet the State's obligation under this
18Section. The System shall compare this amount due to the amount
19received by the System in fiscal year 2004 through payments
20under this Section and under Section 6z-61 of the State Finance
21Act. If the amount due is more than the amount received, the
22difference shall be termed the "Fiscal Year 2004 Shortfall" for
23purposes of this Section, and the Fiscal Year 2004 Shortfall
24shall be satisfied under Section 1.2 of the State Pension Funds
25Continuing Appropriation Act. If the amount due is less than
26the amount received, the difference shall be termed the "Fiscal

 

 

09800SB2404ham001- 135 -LRB098 09018 JDS 46840 a

1Year 2004 Overpayment" for purposes of this Section, and the
2Fiscal Year 2004 Overpayment shall be repaid by the System to
3the Pension Contribution Fund as soon as practicable after the
4certification.
5    (g) For purposes of determining the required State
6contribution to the System, the value of the System's assets
7shall be equal to the actuarial value of the System's assets,
8which shall be calculated as follows:
9    As of June 30, 2008, the actuarial value of the System's
10assets shall be equal to the market value of the assets as of
11that date. In determining the actuarial value of the System's
12assets for fiscal years after June 30, 2008, any actuarial
13gains or losses from investment return incurred in a fiscal
14year shall be recognized in equal annual amounts over the
155-year period following that fiscal year.
16    (h) For purposes of determining the required State
17contribution to the System for a particular year, the actuarial
18value of assets shall be assumed to earn a rate of return equal
19to the System's actuarially assumed rate of return.
20    (i) After the submission of all payments for eligible
21employees from personal services line items paid from the
22General Revenue Fund in fiscal year 2010 have been made, the
23Comptroller shall provide to the System a certification of the
24sum of all fiscal year 2010 expenditures for personal services
25that would have been covered by payments to the System under
26this Section if the provisions of this amendatory Act of the

 

 

09800SB2404ham001- 136 -LRB098 09018 JDS 46840 a

196th General Assembly had not been enacted. Upon receipt of the
2certification, the System shall determine the amount due to the
3System based on the full rate certified by the Board under
4Section 14-135.08 for fiscal year 2010 in order to meet the
5State's obligation under this Section. The System shall compare
6this amount due to the amount received by the System in fiscal
7year 2010 through payments under this Section. If the amount
8due is more than the amount received, the difference shall be
9termed the "Fiscal Year 2010 Shortfall" for purposes of this
10Section, and the Fiscal Year 2010 Shortfall shall be satisfied
11under Section 1.2 of the State Pension Funds Continuing
12Appropriation Act. If the amount due is less than the amount
13received, the difference shall be termed the "Fiscal Year 2010
14Overpayment" for purposes of this Section, and the Fiscal Year
152010 Overpayment shall be repaid by the System to the General
16Revenue Fund as soon as practicable after the certification.
17    (j) After the submission of all payments for eligible
18employees from personal services line items paid from the
19General Revenue Fund in fiscal year 2011 have been made, the
20Comptroller shall provide to the System a certification of the
21sum of all fiscal year 2011 expenditures for personal services
22that would have been covered by payments to the System under
23this Section if the provisions of this amendatory Act of the
2496th General Assembly had not been enacted. Upon receipt of the
25certification, the System shall determine the amount due to the
26System based on the full rate certified by the Board under

 

 

09800SB2404ham001- 137 -LRB098 09018 JDS 46840 a

1Section 14-135.08 for fiscal year 2011 in order to meet the
2State's obligation under this Section. The System shall compare
3this amount due to the amount received by the System in fiscal
4year 2011 through payments under this Section. If the amount
5due is more than the amount received, the difference shall be
6termed the "Fiscal Year 2011 Shortfall" for purposes of this
7Section, and the Fiscal Year 2011 Shortfall shall be satisfied
8under Section 1.2 of the State Pension Funds Continuing
9Appropriation Act. If the amount due is less than the amount
10received, the difference shall be termed the "Fiscal Year 2011
11Overpayment" for purposes of this Section, and the Fiscal Year
122011 Overpayment shall be repaid by the System to the General
13Revenue Fund as soon as practicable after the certification.
14    (k) For fiscal years 2012 and 2013 only, after the
15submission of all payments for eligible employees from personal
16services line items paid from the General Revenue Fund in the
17fiscal year have been made, the Comptroller shall provide to
18the System a certification of the sum of all expenditures in
19the fiscal year for personal services. Upon receipt of the
20certification, the System shall determine the amount due to the
21System based on the full rate certified by the Board under
22Section 14-135.08 for the fiscal year in order to meet the
23State's obligation under this Section. The System shall compare
24this amount due to the amount received by the System for the
25fiscal year. If the amount due is more than the amount
26received, the difference shall be termed the "Prior Fiscal Year

 

 

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1Shortfall" for purposes of this Section, and the Prior Fiscal
2Year Shortfall shall be satisfied under Section 1.2 of the
3State Pension Funds Continuing Appropriation Act. If the amount
4due is less than the amount received, the difference shall be
5termed the "Prior Fiscal Year Overpayment" for purposes of this
6Section, and the Prior Fiscal Year Overpayment shall be repaid
7by the System to the General Revenue Fund as soon as
8practicable after the certification.
9(Source: P.A. 96-43, eff. 7-15-09; 96-45, eff. 7-15-09;
1096-1000, eff. 7-2-10; 96-1497, eff. 1-14-11; 96-1511, eff.
111-27-11; 96-1554, eff. 3-18-11; 97-72, eff. 7-1-11; 97-732,
12eff. 6-30-12.)
 
13    (40 ILCS 5/14-132)  (from Ch. 108 1/2, par. 14-132)
14    Sec. 14-132. Obligations of State; funding guarantee.
15    (a) The payment of the required department contributions,
16all allowances, annuities, benefits granted under this
17Article, and all expenses of administration of the system are
18obligations of the State of Illinois to the extent specified in
19this Article.
20    (b) All income of the system shall be credited to a
21separate account for this system in the State treasury and
22shall be used to pay allowances, annuities, benefits and
23administration expense.
24    (c) Beginning July 1, 2014, the State shall be
25contractually obligated to contribute to the System in each

 

 

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1State fiscal year an amount not less than the sum of (i) the
2State's normal cost for the year and (ii) the portion of the
3unfunded accrued liability assigned to that year by law.
4Notwithstanding any other provision of law, if the State fails
5to pay an amount guaranteed under this subsection, it shall be
6the mandatory fiduciary obligation of the Board to seek payment
7of the guaranteed amount in compliance with the provisions of
8this Section and, if the amount remains unpaid, to bring a
9mandamus action in the Supreme Court of Illinois to compel the
10State to make the required payment.
11    If the System or a department submits a voucher for
12contributions required under Section 14-131 and the State fails
13to pay that voucher within 90 days of its receipt, the Board
14shall submit a written request to the Comptroller seeking
15payment. A copy of the request shall be filed with the
16Secretary of State, and the Secretary of State shall provide a
17copy to the Governor and General Assembly. No earlier than the
1816th day after the System files the request with the
19Comptroller and Secretary of State, if the amount remains
20unpaid, the Board shall commence a mandamus action in the
21Supreme Court of Illinois to compel the Comptroller to satisfy
22the voucher.
23    This subsection (c) constitutes an express waiver of the
24State's sovereign immunity solely to the extent that it permits
25the Board to commence a mandamus action in the Supreme Court of
26Illinois to compel the Comptroller to pay a voucher for the

 

 

09800SB2404ham001- 140 -LRB098 09018 JDS 46840 a

1contributions required under Section 14-131.
2    (d) Beginning in State fiscal year 2020, the State shall be
3contractually obligated to make the transfers set forth in
4subsections (c-10) and (c-15) of Section 20 of the Budget
5Stabilization Act and to pay to the System its proportionate
6share of the transferred amounts in accordance with Section 25
7of the Budget Stabilization Act. Notwithstanding any other
8provision of law, if the State fails to transfer an amount
9guaranteed under this subsection or to pay to the System its
10proportionate share of the transferred amount in accordance
11with Section 25 of the Budget Stabilization Act, it shall be
12the mandatory fiduciary obligation of the Board to seek
13transfer or payment of the guaranteed amount in compliance with
14the provisions of this Section and, if the required amount
15remains untransferred or the required payment remains unpaid,
16to bring a mandamus action in the Supreme Court of Illinois to
17compel the State to make the required transfer or payment or
18both, as the case may be.
19    If the State fails to make a transfer required under
20subsections (c-10) and (c-15) of Section 20 of the Budget
21Stabilization Act or a payment to the System required under
22Section 25 of that Act, the Board shall submit a written
23request to the Comptroller seeking payment. A copy of the
24request shall be filed with the Secretary of State, and the
25Secretary of State shall provide a copy to the Governor and
26General Assembly. No earlier than the 16th day after the System

 

 

09800SB2404ham001- 141 -LRB098 09018 JDS 46840 a

1files the request with the Comptroller and Secretary of State,
2if the required amount remains untransferred or the required
3payment remains unpaid, the Board shall commence a mandamus
4action in the Supreme Court of Illinois to compel the
5Comptroller to make the required transfer or payment or both,
6as the case may be.
7    This subsection (d) constitutes an express waiver of the
8State's sovereign immunity solely to the extent that it permits
9the Board to commence a mandamus action in the Supreme Court of
10Illinois to compel the Comptroller to make a transfer required
11under subsections (c-10) and (c-15) of Section 20 of the Budget
12Stabilization Act and to pay to the System its proportionate
13share of the transferred amount in accordance with Section 25
14of the Budget Stabilization Act.
15    The obligations created by this subsection (d) expire when
16all of the requirements of subsections (c-10) and (c-15) of
17Section 20 of the Budget Stabilization Act and Section 25 of
18the Budget Stabilization Act have been met.
19    (e) Any payments and transfers required to be made by the
20State pursuant to subsection (c) or (d) are expressly
21subordinate to the payment of the principal, interest, and
22premium, if any, on any bonded debt obligation of the State or
23any other State-created entity, either currently outstanding
24or to be issued, for which the source of repayment or security
25thereon is derived directly or indirectly from tax revenues
26collected by the State or any other State-created entity.

 

 

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1Payments on such bonded obligations include any statutory fund
2transfers or other prefunding mechanisms or formulas set forth,
3now or hereafter, in State law or bond indentures, into debt
4service funds or accounts of the State related to such bond
5obligations, consistent with the payment schedules associated
6with such obligations.
7    (f) By the enactment of this amendatory Act of the 98th
8General Assembly, the State of Illinois pledges to and agrees
9with the Board and members of the System that the State will
10make the payments and transfers required to be made by the
11State pursuant to subsections (c) and (d). The State further
12pledges that the State will not limit or alter the rights and
13powers vested in the Board so as to impair the terms of this
14Section or in any way impair the rights and remedies of the
15Board under this Section.
16(Source: P.A. 80-841.)
 
17    (40 ILCS 5/14-133)  (from Ch. 108 1/2, par. 14-133)
18    Sec. 14-133. Contributions on behalf of members.
19    (a) Each participating employee shall make contributions
20to the System, based on the employee's compensation, as
21follows:
22        (1) Covered employees, except as indicated below, 3.5%
23    for retirement annuity, and 0.5% for a widow or survivors
24    annuity;
25        (2) Noncovered employees, except as indicated below,

 

 

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

 

 

09800SB2404ham001- 144 -LRB098 09018 JDS 46840 a

1    (a-5) In addition to the contributions otherwise required
2under this Article, each Tier I member shall also make the
3following contributions for retirement annuity from each
4payment of compensation:
5        (1) beginning July 1, 2014 and through June 30, 2015,
6    1% of compensation; and
7        (2) beginning on July 1, 2015, 2% of compensation.
8    (b) Contributions shall be in the form of a deduction from
9compensation and shall be made notwithstanding that the
10compensation paid in cash to the employee shall be reduced
11thereby below the minimum prescribed by law or regulation. Each
12member is deemed to consent and agree to the deductions from
13compensation provided for in this Article, and shall receipt in
14full for salary or compensation.
15(Source: P.A. 92-14, eff. 6-28-01.)
 
16    (40 ILCS 5/14-133.5 new)
17    Sec. 14-133.5. Use of contributions for health care
18subsidies. The System shall not use any contribution received
19by the System under this Article to provide a subsidy for the
20cost of participation in a retiree health care program.
 
21    (40 ILCS 5/14-135.08)  (from Ch. 108 1/2, par. 14-135.08)
22    Sec. 14-135.08. To certify required State contributions.
23    (a) To certify to the Governor and to each department, on
24or before November 15 of each year through until November 15,

 

 

09800SB2404ham001- 145 -LRB098 09018 JDS 46840 a

12011, the required rate for State contributions to the System
2for the next State fiscal year, as determined under subsection
3(b) of Section 14-131. The certification to the Governor under
4this subsection (a) shall include a copy of the actuarial
5recommendations upon which the rate is based and shall
6specifically identify the System's projected State normal cost
7for that fiscal year.
8    (a-5) On or before November 1 of each year, beginning
9November 1, 2012, the Board shall submit to the State Actuary,
10the Governor, and the General Assembly a proposed certification
11of the amount of the required State contribution to the System
12for the next fiscal year, along with all of the actuarial
13assumptions, calculations, and data upon which that proposed
14certification is based. On or before January 1 of each year,
15beginning January 1, 2013, the State Actuary shall issue a
16preliminary report concerning the proposed certification and
17identifying, if necessary, recommended changes in actuarial
18assumptions that the Board must consider before finalizing its
19certification of the required State contributions.
20    On or before January 15, 2013 and each January 15
21thereafter, the Board shall certify to the Governor and the
22General Assembly the amount of the required State contribution
23for the next fiscal year. The certification shall include a
24copy of the actuarial recommendations upon which it is based
25and shall specifically identify the System's projected State
26normal cost for that fiscal year. The Board's certification

 

 

09800SB2404ham001- 146 -LRB098 09018 JDS 46840 a

1must note any deviations from the State Actuary's recommended
2changes, the reason or reasons for not following the State
3Actuary's recommended changes, and the fiscal impact of not
4following the State Actuary's recommended changes on the
5required State contribution.
6    (b) The certifications under subsections (a) and (a-5)
7shall include an additional amount necessary to pay all
8principal of and interest on those general obligation bonds due
9the next fiscal year authorized by Section 7.2(a) of the
10General Obligation Bond Act and issued to provide the proceeds
11deposited by the State with the System in July 2003,
12representing deposits other than amounts reserved under
13Section 7.2(c) of the General Obligation Bond Act. For State
14fiscal year 2005, the Board shall make a supplemental
15certification of the additional amount necessary to pay all
16principal of and interest on those general obligation bonds due
17in State fiscal years 2004 and 2005 authorized by Section
187.2(a) of the General Obligation Bond Act and issued to provide
19the proceeds deposited by the State with the System in July
202003, representing deposits other than amounts reserved under
21Section 7.2(c) of the General Obligation Bond Act, as soon as
22practical after the effective date of this amendatory Act of
23the 93rd General Assembly.
24    On or before May 1, 2004, the Board shall recalculate and
25recertify to the Governor and to each department the amount of
26the required State contribution to the System and the required

 

 

09800SB2404ham001- 147 -LRB098 09018 JDS 46840 a

1rates for State contributions to the System for State fiscal
2year 2005, taking into account the amounts appropriated to and
3received by the System under subsection (d) of Section 7.2 of
4the General Obligation Bond Act.
5    On or before July 1, 2005, the Board shall recalculate and
6recertify to the Governor and to each department the amount of
7the required State contribution to the System and the required
8rates for State contributions to the System for State fiscal
9year 2006, taking into account the changes in required State
10contributions made by this amendatory Act of the 94th General
11Assembly.
12    On or before April 1, 2011, the Board shall recalculate and
13recertify to the Governor and to each department the amount of
14the required State contribution to the System for State fiscal
15year 2011, applying the changes made by Public Act 96-889 to
16the System's assets and liabilities as of June 30, 2009 as
17though Public Act 96-889 was approved on that date.
18(Source: P.A. 96-1497, eff. 1-14-11; 96-1511, eff. 1-27-11;
1997-694, eff. 6-18-12.)
 
20    (40 ILCS 5/14-152.1)
21    Sec. 14-152.1. Application and expiration of new benefit
22increases.
23    (a) As used in this Section, "new benefit increase" means
24an increase in the amount of any benefit provided under this
25Article, or an expansion of the conditions of eligibility for

 

 

09800SB2404ham001- 148 -LRB098 09018 JDS 46840 a

1any benefit under this Article, that results from an amendment
2to this Code that takes effect after June 1, 2005 (the
3effective date of Public Act 94-4). "New benefit increase",
4however, does not include any benefit increase resulting from
5the changes made to this Article or Article 1 by Public Act
696-37 or by this amendatory Act of the 98th 96th General
7Assembly.
8    (b) Notwithstanding any other provision of this Code or any
9subsequent amendment to this Code, every new benefit increase
10is subject to this Section and shall be deemed to be granted
11only in conformance with and contingent upon compliance with
12the provisions of this Section.
13    (c) The Public Act enacting a new benefit increase must
14identify and provide for payment to the System of additional
15funding at least sufficient to fund the resulting annual
16increase in cost to the System as it accrues.
17    Every new benefit increase is contingent upon the General
18Assembly providing the additional funding required under this
19subsection. The Commission on Government Forecasting and
20Accountability shall analyze whether adequate additional
21funding has been provided for the new benefit increase and
22shall report its analysis to the Public Pension Division of the
23Department of Financial and Professional Regulation. A new
24benefit increase created by a Public Act that does not include
25the additional funding required under this subsection is null
26and void. If the Public Pension Division determines that the

 

 

09800SB2404ham001- 149 -LRB098 09018 JDS 46840 a

1additional funding provided for a new benefit increase under
2this subsection is or has become inadequate, it may so certify
3to the Governor and the State Comptroller and, in the absence
4of corrective action by the General Assembly, the new benefit
5increase shall expire at the end of the fiscal year in which
6the certification is made.
7    (d) Every new benefit increase shall expire 5 years after
8its effective date or on such earlier date as may be specified
9in the language enacting the new benefit increase or provided
10under subsection (c). This does not prevent the General
11Assembly from extending or re-creating a new benefit increase
12by law.
13    (e) Except as otherwise provided in the language creating
14the new benefit increase, a new benefit increase that expires
15under this Section continues to apply to persons who applied
16and qualified for the affected benefit while the new benefit
17increase was in effect and to the affected beneficiaries and
18alternate payees of such persons, but does not apply to any
19other person, including without limitation a person who
20continues in service after the expiration date and did not
21apply and qualify for the affected benefit while the new
22benefit increase was in effect.
23(Source: P.A. 96-37, eff. 7-13-09.)
 
24    (40 ILCS 5/15-106)  (from Ch. 108 1/2, par. 15-106)
25    Sec. 15-106. Employer. "Employer": The University of

 

 

09800SB2404ham001- 150 -LRB098 09018 JDS 46840 a

1Illinois, Southern Illinois University, Chicago State
2University, Eastern Illinois University, Governors State
3University, Illinois State University, Northeastern Illinois
4University, Northern Illinois University, Western Illinois
5University, the State Board of Higher Education, the Illinois
6Mathematics and Science Academy, the University Civil Service
7Merit Board, the Board of Trustees of the State Universities
8Retirement System, the Illinois Community College Board,
9community college boards, any association of community college
10boards organized under Section 3-55 of the Public Community
11College Act, the Board of Examiners established under the
12Illinois Public Accounting Act, and, only during the period for
13which employer contributions required under Section 15-155 are
14paid, the following organizations: the alumni associations,
15the foundations and the athletic associations which are
16affiliated with the universities and colleges included in this
17Section as employers. An individual that begins employment
18after the effective date of this amendatory Act of the 98th
19General Assembly with an entity not defined as an employer in
20this Section shall not be deemed an employee for the purposes
21of this Article with respect to that employment and shall not
22be eligible to participate in the System with respect to that
23employment; provided, however, that those individuals who are
24both employed and already participants in the System on the
25effective date of this amendatory Act of the 98th General
26Assembly shall be allowed to continue as participants in the

 

 

09800SB2404ham001- 151 -LRB098 09018 JDS 46840 a

1System for the duration of that employment.
2    Notwithstanding any provision of law to the contrary, an
3individual who begins employment with any of the following
4employers on or after the effective date of this amendatory Act
5of the 98th General Assembly shall not be deemed an employee
6and shall not be eligible to participate in the System with
7respect to that employment: any association of community
8college boards organized under Section 3-55 of the Public
9Community College Act, the Association of Illinois
10Middle-Grade Schools, the Illinois Association of School
11Administrators, the Illinois Association for Supervision and
12Curriculum Development, the Illinois Principals Association,
13the Illinois Association of School Business Officials, or the
14Illinois Special Olympics; provided, however, that those
15individuals who are both employed and already participants in
16the System on the effective date of this amendatory Act of the
1798th General Assembly shall be allowed to continue as
18participants in the System for the duration of that employment.
19    A department as defined in Section 14-103.04 is an employer
20for any person appointed by the Governor under the Civil
21Administrative Code of Illinois who is a participating employee
22as defined in Section 15-109. The Department of Central
23Management Services is an employer with respect to persons
24employed by the State Board of Higher Education in positions
25with the Illinois Century Network as of June 30, 2004 who
26remain continuously employed after that date by the Department

 

 

09800SB2404ham001- 152 -LRB098 09018 JDS 46840 a

1of Central Management Services in positions with the Illinois
2Century Network, the Bureau of Communication and Computer
3Services, or, if applicable, any successor bureau.
4    The cities of Champaign and Urbana shall be considered
5employers, but only during the period for which contributions
6are required to be made under subsection (b-1) of Section
715-155 and only with respect to individuals described in
8subsection (h) of Section 15-107.
9(Source: P.A. 95-369, eff. 8-23-07; 95-728, eff. 7-1-08 - See
10Sec. 999.)
 
11    (40 ILCS 5/15-107)  (from Ch. 108 1/2, par. 15-107)
12    Sec. 15-107. Employee.
13    (a) "Employee" means any member of the educational,
14administrative, secretarial, clerical, mechanical, labor or
15other staff of an employer whose employment is permanent and
16continuous or who is employed in a position in which services
17are expected to be rendered on a continuous basis for at least
184 months or one academic term, whichever is less, who (A)
19receives payment for personal services on a warrant issued
20pursuant to a payroll voucher certified by an employer and
21drawn by the State Comptroller upon the State Treasurer or by
22an employer upon trust, federal or other funds, or (B) is on a
23leave of absence without pay. Employment which is irregular,
24intermittent or temporary shall not be considered continuous
25for purposes of this paragraph.

 

 

09800SB2404ham001- 153 -LRB098 09018 JDS 46840 a

1    However, a person is not an "employee" if he or she:
2        (1) is a student enrolled in and regularly attending
3    classes in a college or university which is an employer,
4    and is employed on a temporary basis at less than full
5    time;
6        (2) is currently receiving a retirement annuity or a
7    disability retirement annuity under Section 15-153.2 from
8    this System;
9        (3) is on a military leave of absence;
10        (4) is eligible to participate in the Federal Civil
11    Service Retirement System and is currently making
12    contributions to that system based upon earnings paid by an
13    employer;
14        (5) is on leave of absence without pay for more than 60
15    days immediately following termination of disability
16    benefits under this Article;
17        (6) is hired after June 30, 1979 as a public service
18    employment program participant under the Federal
19    Comprehensive Employment and Training Act and receives
20    earnings in whole or in part from funds provided under that
21    Act; or
22        (7) is employed on or after July 1, 1991 to perform
23    services that are excluded by subdivision (a)(7)(f) or
24    (a)(19) of Section 210 of the federal Social Security Act
25    from the definition of employment given in that Section (42
26    U.S.C. 410).

 

 

09800SB2404ham001- 154 -LRB098 09018 JDS 46840 a

1    (b) Any employer may, by filing a written notice with the
2board, exclude from the definition of "employee" all persons
3employed pursuant to a federally funded contract entered into
4after July 1, 1982 with a federal military department in a
5program providing training in military courses to federal
6military personnel on a military site owned by the United
7States Government, if this exclusion is not prohibited by the
8federally funded contract or federal laws or rules governing
9the administration of the contract.
10    (c) Any person appointed by the Governor under the Civil
11Administrative Code of the State is an employee, if he or she
12is a participant in this system on the effective date of the
13appointment.
14    (d) A participant on lay-off status under civil service
15rules is considered an employee for not more than 120 days from
16the date of the lay-off.
17    (e) A participant is considered an employee during (1) the
18first 60 days of disability leave, (2) the period, not to
19exceed one year, in which his or her eligibility for disability
20benefits is being considered by the board or reviewed by the
21courts, and (3) the period he or she receives disability
22benefits under the provisions of Section 15-152, workers'
23compensation or occupational disease benefits, or disability
24income under an insurance contract financed wholly or partially
25by the employer.
26    (f) Absences without pay, other than formal leaves of

 

 

09800SB2404ham001- 155 -LRB098 09018 JDS 46840 a

1absence, of less than 30 calendar days, are not considered as
2an interruption of a person's status as an employee. If such
3absences during any period of 12 months exceed 30 work days,
4the employee status of the person is considered as interrupted
5as of the 31st work day.
6    (g) A staff member whose employment contract requires
7services during an academic term is to be considered an
8employee during the summer and other vacation periods, unless
9he or she declines an employment contract for the succeeding
10academic term or his or her employment status is otherwise
11terminated, and he or she receives no earnings during these
12periods.
13    (h) An individual who was a participating employee employed
14in the fire department of the University of Illinois's
15Champaign-Urbana campus immediately prior to the elimination
16of that fire department and who immediately after the
17elimination of that fire department became employed by the fire
18department of the City of Urbana or the City of Champaign shall
19continue to be considered as an employee for purposes of this
20Article for so long as the individual remains employed as a
21firefighter by the City of Urbana or the City of Champaign. The
22individual shall cease to be considered an employee under this
23subsection (h) upon the first termination of the individual's
24employment as a firefighter by the City of Urbana or the City
25of Champaign.
26    (i) An individual who is employed on a full-time basis as

 

 

09800SB2404ham001- 156 -LRB098 09018 JDS 46840 a

1an officer or employee of a statewide teacher organization that
2serves System participants or an officer of a national teacher
3organization that serves System participants may participate
4in the System and shall be deemed an employee, provided that
5(1) the individual has previously earned creditable service
6under this Article, (2) the individual files with the System an
7irrevocable election to become a participant before the
8effective date of this amendatory Act of the 97th General
9Assembly, (3) the individual does not receive credit for that
10employment under any other Article of this Code, and (4) the
11individual first became a full-time employee of the teacher
12organization and becomes a participant before the effective
13date of this amendatory Act of the 97th General Assembly. An
14employee under this subsection (i) is responsible for paying to
15the System both (A) employee contributions based on the actual
16compensation received for service with the teacher
17organization and (B) employer contributions equal to the normal
18costs (as defined in Section 15-155) resulting from that
19service; all or any part of these contributions may be paid on
20the employee's behalf or picked up for tax purposes (if
21authorized under federal law) by the teacher organization.
22    A person who is an employee as defined in this subsection
23(i) may establish service credit for similar employment prior
24to becoming an employee under this subsection by paying to the
25System for that employment the contributions specified in this
26subsection, plus interest at the effective rate from the date

 

 

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1of service to the date of payment. However, credit shall not be
2granted under this subsection for any such prior employment for
3which the applicant received credit under any other provision
4of this Code, or during which the applicant was on a leave of
5absence under Section 15-113.2.
6    (j) A person employed by the State Board of Higher
7Education in a position with the Illinois Century Network as of
8June 30, 2004 shall be considered to be an employee for so long
9as he or she remains continuously employed after that date by
10the Department of Central Management Services in a position
11with the Illinois Century Network, the Bureau of Communication
12and Computer Services, or, if applicable, any successor bureau
13and meets the requirements of subsection (a).
14    (k) In the case of doubt as to whether any person is an
15employee within the meaning of this Section, the decision of
16the Board shall be final.
17(Source: P.A. 97-651, eff. 1-5-12.)
 
18    (40 ILCS 5/15-107.1 new)
19    Sec. 15-107.1. Tier I participant. "Tier I participant": A
20participant under this Article, other than a participant in the
21self-managed plan under Section 15-158.2, who first became a
22member or participant before January 1, 2011 under any
23reciprocal retirement system or pension fund established under
24this Code other than a retirement system or pension fund
25established under Article 2, 3, 4, 5, 6, or 18 of this Code.
 

 

 

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1    (40 ILCS 5/15-107.2 new)
2    Sec. 15-107.2. Tier I retiree. "Tier I retiree": A former
3Tier I participant who is receiving a retirement annuity.
4    A person does not become a Tier I retiree by virtue of
5receiving a reversionary, survivors, beneficiary, or
6disability annuity.
 
7    (40 ILCS 5/15-111)  (from Ch. 108 1/2, par. 15-111)
8    Sec. 15-111. Earnings. "Earnings": An amount paid for
9personal services equal to the sum of the basic compensation
10plus extra compensation for summer teaching, overtime or other
11extra service. For periods for which an employee receives
12service credit under subsection (c) of Section 15-113.1 or
13Section 15-113.2, earnings are equal to the basic compensation
14on which contributions are paid by the employee during such
15periods. Compensation for employment which is irregular,
16intermittent and temporary shall not be considered earnings,
17unless the participant is also receiving earnings from the
18employer as an employee under Section 15-107.
19    With respect to transition pay paid by the University of
20Illinois to a person who was a participating employee employed
21in the fire department of the University of Illinois's
22Champaign-Urbana campus immediately prior to the elimination
23of that fire department:
24        (1) "Earnings" includes transition pay paid to the

 

 

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1    employee on or after the effective date of this amendatory
2    Act of the 91st General Assembly.
3        (2) "Earnings" includes transition pay paid to the
4    employee before the effective date of this amendatory Act
5    of the 91st General Assembly only if (i) employee
6    contributions under Section 15-157 have been withheld from
7    that transition pay or (ii) the employee pays to the System
8    before January 1, 2001 an amount representing employee
9    contributions under Section 15-157 on that transition pay.
10    Employee contributions under item (ii) may be paid in a
11    lump sum, by withholding from additional transition pay
12    accruing before January 1, 2001, or in any other manner
13    approved by the System. Upon payment of the employee
14    contributions on transition pay, the corresponding
15    employer contributions become an obligation of the State.
16    Notwithstanding any other provision of this Code, the
17earnings of a Tier I participant for the purposes of this Code
18shall not exceed, for periods of service on or after the
19effective date of this amendatory Act of the 98th General
20Assembly, the greater of (i) the limitation determined from
21time to time under subsection (b-5) of Section 1-160 of this
22Code for persons subject to that Section or (ii) the annual
23earnings of the participant during the 365 days immediately
24preceding that effective date; except that this limitation does
25not apply to a participant's earnings that are determined under
26an employment contract or collective bargaining agreement that

 

 

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1is in effect on the effective date of this amendatory Act of
2the 98th General Assembly and has not been amended, renewed, or
3terminated after that date.
4(Source: P.A. 91-887, eff. 7-6-00.)
 
5    (40 ILCS 5/15-112)  (from Ch. 108 1/2, par. 15-112)
6    Sec. 15-112. Final rate of earnings.
7    "Final rate of earnings":
8    (a) This subsection (a) applies only to a person who first
9becomes a participant of any system before January 1, 2011.
10     For an employee who is paid on an hourly basis or who
11receives an annual salary in installments during 12 months of
12each academic year, the average annual earnings during the 48
13consecutive calendar month period ending with the last day of
14final termination of employment or the 4 consecutive academic
15years of service in which the employee's earnings were the
16highest, whichever is greater. For any other employee, the
17average annual earnings during the 4 consecutive academic years
18of service in which his or her earnings were the highest. For
19an employee with less than 48 months or 4 consecutive academic
20years of service, the average earnings during his or her entire
21period of service. The earnings of an employee with more than
2236 months of service prior to the date of becoming a
23participant are, for such period, considered equal to the
24average earnings during the last 36 months of such service.
25    (b) This subsection (b) applies to a person to whom

 

 

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1subsection (a) does not apply.
2    For an employee who is paid on an hourly basis or who
3receives an annual salary in installments during 12 months of
4each academic year, the average annual earnings obtained by
5dividing by 8 the total earnings of the employee during the 96
6consecutive months in which the total earnings were the highest
7within the last 120 months prior to termination.
8    For any other employee, the average annual earnings during
9the 8 consecutive academic years within the 10 years prior to
10termination in which the employee's earnings were the highest.
11For an employee with less than 96 consecutive months or 8
12consecutive academic years of service, whichever is necessary,
13the average earnings during his or her entire period of
14service.
15    (c) For an employee on leave of absence with pay, or on
16leave of absence without pay who makes contributions during
17such leave, earnings are assumed to be equal to the basic
18compensation on the date the leave began.
19    (d) For an employee on disability leave, earnings are
20assumed to be equal to the basic compensation on the date
21disability occurs or the average earnings during the 24 months
22immediately preceding the month in which disability occurs,
23whichever is greater.
24    (e) For a participant who retires on or after the effective
25date of this amendatory Act of 1997 with at least 20 years of
26service as a firefighter or police officer under this Article,

 

 

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1the final rate of earnings shall be the annual rate of earnings
2received by the participant on his or her last day as a
3firefighter or police officer under this Article, if that is
4greater than the final rate of earnings as calculated under the
5other provisions of this Section.
6    (f) If a participant to whom subsection (a) of this Section
7applies is an employee for at least 6 months during the
8academic year in which his or her employment is terminated, the
9annual final rate of earnings shall be 25% of the sum of (1)
10the annual basic compensation for that year, and (2) the amount
11earned during the 36 months immediately preceding that year, if
12this is greater than the final rate of earnings as calculated
13under the other provisions of this Section.
14    (g) In the determination of the final rate of earnings for
15an employee, that part of an employee's earnings for any
16academic year beginning after June 30, 1997, which exceeds the
17employee's earnings with that employer for the preceding year
18by more than 20 percent shall be excluded; in the event that an
19employee has more than one employer this limitation shall be
20calculated separately for the earnings with each employer. In
21making such calculation, only the basic compensation of
22employees shall be considered, without regard to vacation or
23overtime or to contracts for summer employment.
24    (h) The following are not considered as earnings in
25determining final rate of earnings: (1) severance or separation
26pay, (2) retirement pay, (3) payment for unused sick leave, and

 

 

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1(4) payments from an employer for the period used in
2determining final rate of earnings for any purpose other than
3(i) services rendered, (ii) leave of absence or vacation
4granted during that period, and (iii) vacation of up to 56 work
5days allowed upon termination of employment; except that, if
6the benefit has been collectively bargained between the
7employer and the recognized collective bargaining agent
8pursuant to the Illinois Educational Labor Relations Act,
9payment received during a period of up to 2 academic years for
10unused sick leave may be considered as earnings in accordance
11with the applicable collective bargaining agreement, subject
12to the 20% increase limitation of this Section, and if the
13person first becomes a participant on or after the effective
14date of this amendatory Act of the 98th General Assembly,
15payments for unused sick or vacation time shall not be
16considered as earnings. Any unused sick leave considered as
17earnings under this Section shall not be taken into account in
18calculating service credit under Section 15-113.4.
19    (i) Intermittent periods of service shall be considered as
20consecutive in determining final rate of earnings.
21(Source: P.A. 96-1490, eff. 1-1-11.)
 
22    (40 ILCS 5/15-113.4)  (from Ch. 108 1/2, par. 15-113.4)
23    Sec. 15-113.4. Service for unused sick leave. "Service for
24unused sick leave": A person who first becomes a participant
25before the effective date of this amendatory Act of the 98th

 

 

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1General Assembly and who is an employee under this System or
2one of the other systems subject to Article 20 of this Code
3within 60 days immediately preceding the date on which his or
4her retirement annuity begins, is entitled to credit for
5service for that portion of unused sick leave earned in the
6course of employment with an employer and credited on the date
7of termination of employment by an employer for which payment
8is not received, in accordance with the following schedule: 30
9through 90 full calendar days and 20 through 59 full work days
10of unused sick leave, 1/4 of a year of service; 91 through 180
11full calendar days and 60 through 119 full work days, 1/2 of a
12year of service; 181 through 270 full calendar days and 120
13through 179 full work days, 3/4 of a year of service; 271
14through 360 full calendar days and 180 through 240 full work
15days, one year of service. Only uncompensated, unused sick
16leave earned in accordance with an employer's sick leave
17accrual policy generally applicable to employees or a class of
18employees shall be taken into account in calculating service
19credit under this Section. Any uncompensated, unused sick leave
20granted by an employer to facilitate the hiring, retirement,
21termination, or other special circumstances of an employee
22shall not be taken into account in calculating service credit
23under this Section. If a participant transfers from one
24employer to another, the unused sick leave credited by the
25previous employer shall be considered in determining service to
26be credited under this Section, even if the participant

 

 

09800SB2404ham001- 165 -LRB098 09018 JDS 46840 a

1terminated service prior to the effective date of P.A. 86-272
2(August 23, 1989); if necessary, the retirement annuity shall
3be recalculated to reflect such sick leave credit. Each
4employer shall certify to the board the number of days of
5unused sick leave accrued to the participant's credit on the
6date that the participant's status as an employee terminated.
7This period of unused sick leave shall not be considered in
8determining the date the retirement annuity begins. A person
9who first becomes a participant on or after the effective date
10of this amendatory Act of the 98th General Assembly shall not
11receive service credit for unused sick leave.
12(Source: P.A. 90-65, eff. 7-7-97; 90-511, eff. 8-22-97.)
 
13    (40 ILCS 5/15-113.7)  (from Ch. 108 1/2, par. 15-113.7)
14    Sec. 15-113.7. Service for other public employment.
15"Service for other public employment": Includes those periods
16not exceeding the lesser of 10 years or 2/3 of the service
17granted under other Sections of this Article dealing with
18service credit, during which a person was employed full time by
19the United States government, or by the government of a state,
20or by a political subdivision of a state, or by an agency or
21instrumentality of any of the foregoing, if the person (1)
22cannot qualify for a retirement pension or other benefit based
23upon employer contributions from another retirement system,
24exclusive of federal social security, based in whole or in part
25upon this employment, and (2) pays the lesser of (A) an amount

 

 

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1equal to 8% of his or her annual basic compensation on the date
2of becoming a participating employee subsequent to this service
3multiplied by the number of years of such service, together
4with compound interest from the date participation begins to
5the date payment is received by the board at the rate of 6% per
6annum through August 31, 1982, and at the effective rates after
7that date, and (B) 50% of the actuarial value of the increase
8in the retirement annuity provided by this service, and (3)
9contributes for at least 5 years subsequent to this employment
10to one or more of the following systems: the State Universities
11Retirement System, the Teachers' Retirement System of the State
12of Illinois, and the Public School Teachers' Pension and
13Retirement Fund of Chicago. If a function of a governmental
14unit as defined by Section 20-107 is transferred by law, in
15whole or in part to an employer, and an employee transfers
16employment from this governmental unit to such employer within
176 months of the transfer of the function, the payment for
18service authorized under this Section shall not exceed the
19amount which would have been payable for this service to the
20retirement system covering the governmental unit from which the
21function was transferred.
22    The service granted under this Section shall not be
23considered in determining whether the person has the minimum of
248 years of service required to qualify for a retirement annuity
25at age 55 or the 5 years of service required to qualify for a
26retirement annuity at age 62, as provided in Section 15-135 or

 

 

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1the 10 years required by subsection (c) of Section 1-160. The
2maximum allowable service of 10 years for this governmental
3employment shall be reduced by the service credit which is
4validated under paragraph (2) of subsection (b) of Section
516-127 and paragraph one of Section 17-133.
6    Except as hereinafter provided, this Section shall not
7apply to persons who become participants in the system after
8September 1, 1974.
9(Source: P.A. 95-83, eff. 8-13-07.)
 
10    (40 ILCS 5/15-125)  (from Ch. 108 1/2, par. 15-125)
11    Sec. 15-125. "Prescribed Rate of Interest; Effective Rate
12of Interest".
13    (1) "Prescribed rate of interest": The rate of interest to
14be used in actuarial valuations and in development of actuarial
15tables as determined by the board on the basis of the probable
16average effective rate of interest on a long term basis.
17    (2) "Effective rate of interest": The interest rate for all
18or any part of a fiscal year that is determined by the State
19Comptroller board based on factors including the system's past
20and expected investment experience; historical and expected
21fluctuations in the market value of investments; the
22desirability of minimizing volatility in the effective rate of
23interest from year to year; and the provision of reserves for
24anticipated losses upon sales, redemptions, or other
25disposition of investments and for variations in interest

 

 

09800SB2404ham001- 168 -LRB098 09018 JDS 46840 a

1experience; except that for the purpose of determining the
2accumulated normal contributions used in calculating
3retirement annuities under Rule 2 of Section 15-136, the
4effective rate of interest shall be determined by the State
5Comptroller rather than the board. The State Comptroller shall
6determine the effective rate of interest to be used for this
7purpose using the factors listed above, and shall certify to
8the board and the Commission on Government Forecasting and
9Accountability the rate to be used for this purpose for fiscal
10year 2006 as soon as possible after the effective date of this
11amendatory Act of the 94th General Assembly, and for each
12fiscal year thereafter no later than the January 31 immediately
13preceding the start of that fiscal year.
14    (2.1) The phrase "expected investment experience" as
15providing special consideration to the rates of return achieved
16by long-term U.S. Treasury Bonds. Subject to the limitations
17set forth in Section 1-103.1 of the Pension Code the definition
18of this phrase is a clarification of existing law.
19    (3) The change made to this Section by Public Acts 90-65
20and 90-511 is a clarification of existing law.
21(Source: P.A. 94-4, eff. 6-1-05; 94-982, eff. 6-30-06.)
 
22    (40 ILCS 5/15-135)  (from Ch. 108 1/2, par. 15-135)
23    Sec. 15-135. Retirement annuities - Conditions.
24    (a) A participant who retires in one of the following
25specified years with the specified amount of service is

 

 

09800SB2404ham001- 169 -LRB098 09018 JDS 46840 a

1entitled to a retirement annuity at any age under the
2retirement program applicable to the participant:
3        35 years if retirement is in 1997 or before;
4        34 years if retirement is in 1998;
5        33 years if retirement is in 1999;
6        32 years if retirement is in 2000;
7        31 years if retirement is in 2001;
8        30 years if retirement is in 2002 or later.
9    A participant with 8 or more years of service after
10September 1, 1941, is entitled to a retirement annuity on or
11after attainment of age 55.
12    A participant with at least 5 but less than 8 years of
13service after September 1, 1941, is entitled to a retirement
14annuity on or after attainment of age 62.
15    A participant who has at least 25 years of service in this
16system as a police officer or firefighter is entitled to a
17retirement annuity on or after the attainment of age 50, if
18Rule 4 of Section 15-136 is applicable to the participant.
19    (a-5) Notwithstanding subsection (a) of this Section, for a
20Tier I participant who begins receiving a retirement annuity
21under this Article on or after July 1, 2014:
22        (1) If the Tier I participant is at least 45 years old
23    on the effective date of this amendatory Act of the 98th
24    General Assembly, then the reference to retirement with 30
25    years of service as well as the references to age 50, 55,
26    and 62 in subsection (a) of this Section remain unchanged.

 

 

09800SB2404ham001- 170 -LRB098 09018 JDS 46840 a

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

 

 

09800SB2404ham001- 171 -LRB098 09018 JDS 46840 a

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

 

 

09800SB2404ham001- 172 -LRB098 09018 JDS 46840 a

1each year in excess of 30; or for persons who retire on or
2after January 1, 1998, 2.2% of the final rate of earnings for
3each year of service.
4    Rule 2: The retirement annuity shall be the sum of the
5following, determined from amounts credited to the participant
6in accordance with the actuarial tables and the effective rate
7of interest in effect at the time the retirement annuity
8begins:
9        (i) the normal annuity which can be provided on an
10    actuarially equivalent basis, by the accumulated normal
11    contributions as of the date the annuity begins;
12        (ii) an annuity from employer contributions of an
13    amount equal to that which can be provided on an
14    actuarially equivalent basis from the accumulated normal
15    contributions made by the participant under Section
16    15-113.6 and Section 15-113.7 plus 1.4 times all other
17    accumulated normal contributions made by the participant;
18    and
19        (iii) the annuity that can be provided on an
20    actuarially equivalent basis from the entire contribution
21    made by the participant under Section 15-113.3.
22    For the purpose of calculating an annuity under this Rule
232, the contribution required under subsection (c-5) of Section
2415-157 shall not be considered when determining the
25participant's accumulated normal contributions under clause
26(i) or the employer contribution under clause (ii).

 

 

09800SB2404ham001- 173 -LRB098 09018 JDS 46840 a

1    With respect to a police officer or firefighter who retires
2on or after August 14, 1998, the accumulated normal
3contributions taken into account under clauses (i) and (ii) of
4this Rule 2 shall include the additional normal contributions
5made by the police officer or firefighter under Section
615-157(a).
7    The amount of a retirement annuity calculated under this
8Rule 2 shall be computed solely on the basis of the
9participant's accumulated normal contributions, as specified
10in this Rule and defined in Section 15-116. Neither an employee
11or employer contribution for early retirement under Section
1215-136.2 nor any other employer contribution shall be used in
13the calculation of the amount of a retirement annuity under
14this Rule 2.
15    This amendatory Act of the 91st General Assembly is a
16clarification of existing law and applies to every participant
17and annuitant without regard to whether status as an employee
18terminates before the effective date of this amendatory Act.
19    This Rule 2 does not apply to a person who first becomes an
20employee under this Article on or after July 1, 2005.
21    Rule 3: The retirement annuity of a participant who is
22employed at least one-half time during the period on which his
23or her final rate of earnings is based, shall be equal to the
24participant's years of service not to exceed 30, multiplied by
25(1) $96 if the participant's final rate of earnings is less
26than $3,500, (2) $108 if the final rate of earnings is at least

 

 

09800SB2404ham001- 174 -LRB098 09018 JDS 46840 a

1$3,500 but less than $4,500, (3) $120 if the final rate of
2earnings is at least $4,500 but less than $5,500, (4) $132 if
3the final rate of earnings is at least $5,500 but less than
4$6,500, (5) $144 if the final rate of earnings is at least
5$6,500 but less than $7,500, (6) $156 if the final rate of
6earnings is at least $7,500 but less than $8,500, (7) $168 if
7the final rate of earnings is at least $8,500 but less than
8$9,500, and (8) $180 if the final rate of earnings is $9,500 or
9more, except that the annuity for those persons having made an
10election under Section 15-154(a-1) shall be calculated and
11payable under the portable retirement benefit program pursuant
12to the provisions of Section 15-136.4.
13    Rule 4: A participant who is at least age 50 and has 25 or
14more years of service as a police officer or firefighter, and a
15participant who is age 55 or over and has at least 20 but less
16than 25 years of service as a police officer or firefighter,
17shall be entitled to a retirement annuity of 2 1/4% of the
18final rate of earnings for each of the first 10 years of
19service as a police officer or firefighter, 2 1/2% for each of
20the next 10 years of service as a police officer or
21firefighter, and 2 3/4% for each year of service as a police
22officer or firefighter in excess of 20. The retirement annuity
23for all other service shall be computed under Rule 1.
24    For purposes of this Rule 4, a participant's service as a
25firefighter shall also include the following:
26        (i) service that is performed while the person is an

 

 

09800SB2404ham001- 175 -LRB098 09018 JDS 46840 a

1    employee under subsection (h) of Section 15-107; and
2        (ii) in the case of an individual who was a
3    participating employee employed in the fire department of
4    the University of Illinois's Champaign-Urbana campus
5    immediately prior to the elimination of that fire
6    department and who immediately after the elimination of
7    that fire department transferred to another job with the
8    University of Illinois, service performed as an employee of
9    the University of Illinois in a position other than police
10    officer or firefighter, from the date of that transfer
11    until the employee's next termination of service with the
12    University of Illinois.
13    Rule 5: The retirement annuity of a participant who elected
14early retirement under the provisions of Section 15-136.2 and
15who, on or before February 16, 1995, brought administrative
16proceedings pursuant to the administrative rules adopted by the
17System to challenge the calculation of his or her retirement
18annuity shall be the sum of the following, determined from
19amounts credited to the participant in accordance with the
20actuarial tables and the prescribed rate of interest in effect
21at the time the retirement annuity begins:
22        (i) the normal annuity which can be provided on an
23    actuarially equivalent basis, by the accumulated normal
24    contributions as of the date the annuity begins; and
25        (ii) an annuity from employer contributions of an
26    amount equal to that which can be provided on an

 

 

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1    actuarially equivalent basis from the accumulated normal
2    contributions made by the participant under Section
3    15-113.6 and Section 15-113.7 plus 1.4 times all other
4    accumulated normal contributions made by the participant;
5    and
6        (iii) an annuity which can be provided on an
7    actuarially equivalent basis from the employee
8    contribution for early retirement under Section 15-136.2,
9    and an annuity from employer contributions of an amount
10    equal to that which can be provided on an actuarially
11    equivalent basis from the employee contribution for early
12    retirement under Section 15-136.2.
13    In no event shall a retirement annuity under this Rule 5 be
14lower than the amount obtained by adding (1) the monthly amount
15obtained by dividing the combined employee and employer
16contributions made under Section 15-136.2 by the System's
17annuity factor for the age of the participant at the beginning
18of the annuity payment period and (2) the amount equal to the
19participant's annuity if calculated under Rule 1, reduced under
20Section 15-136(b) as if no contributions had been made under
21Section 15-136.2.
22    With respect to a participant who is qualified for a
23retirement annuity under this Rule 5 whose retirement annuity
24began before the effective date of this amendatory Act of the
2591st General Assembly, and for whom an employee contribution
26was made under Section 15-136.2, the System shall recalculate

 

 

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1the retirement annuity under this Rule 5 and shall pay any
2additional amounts due in the manner provided in Section
315-186.1 for benefits mistakenly set too low.
4    The amount of a retirement annuity calculated under this
5Rule 5 shall be computed solely on the basis of those
6contributions specifically set forth in this Rule 5. Except as
7provided in clause (iii) of this Rule 5, neither an employee
8nor employer contribution for early retirement under Section
915-136.2, nor any other employer contribution, shall be used in
10the calculation of the amount of a retirement annuity under
11this Rule 5.
12    The General Assembly has adopted the changes set forth in
13Section 25 of this amendatory Act of the 91st General Assembly
14in recognition that the decision of the Appellate Court for the
15Fourth District in Mattis v. State Universities Retirement
16System et al. might be deemed to give some right to the
17plaintiff in that case. The changes made by Section 25 of this
18amendatory Act of the 91st General Assembly are a legislative
19implementation of the decision of the Appellate Court for the
20Fourth District in Mattis v. State Universities Retirement
21System et al. with respect to that plaintiff.
22    The changes made by Section 25 of this amendatory Act of
23the 91st General Assembly apply without regard to whether the
24person is in service as an employee on or after its effective
25date.
26    (b) The retirement annuity provided under Rules 1 and 3

 

 

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1above shall be reduced by 1/2 of 1% for each month the
2participant is under age 60 at the time of retirement. However,
3this reduction shall not apply in the following cases:
4        (1) For a disabled participant whose disability
5    benefits have been discontinued because he or she has
6    exhausted eligibility for disability benefits under clause
7    (6) of Section 15-152;
8        (2) For a participant who has at least the number of
9    years of service required to retire at any age under
10    subsection (a) of Section 15-135; or
11        (3) For that portion of a retirement annuity which has
12    been provided on account of service of the participant
13    during periods when he or she performed the duties of a
14    police officer or firefighter, if these duties were
15    performed for at least 5 years immediately preceding the
16    date the retirement annuity is to begin.
17    (c) The maximum retirement annuity provided under Rules 1,
182, 4, and 5 shall be the lesser of (1) the annual limit of
19benefits as specified in Section 415 of the Internal Revenue
20Code of 1986, as such Section may be amended from time to time
21and as such benefit limits shall be adjusted by the
22Commissioner of Internal Revenue, and (2) 80% of final rate of
23earnings.
24    (d) Subject to the provisions of subsections (d-1) and
25(d-2), an An annuitant whose status as an employee terminates
26after August 14, 1969 shall receive automatic increases in his

 

 

09800SB2404ham001- 179 -LRB098 09018 JDS 46840 a

1or her retirement annuity as follows:
2    Effective January 1 immediately following the date the
3retirement annuity begins, the annuitant shall receive an
4increase in his or her monthly retirement annuity of 0.125% of
5the monthly retirement annuity provided under Rule 1, Rule 2,
6Rule 3, Rule 4, or Rule 5, contained in this Section,
7multiplied by the number of full months which elapsed from the
8date the retirement annuity payments began to January 1, 1972,
9plus 0.1667% of such annuity, multiplied by the number of full
10months which elapsed from January 1, 1972, or the date the
11retirement annuity payments began, whichever is later, to
12January 1, 1978, plus 0.25% of such annuity multiplied by the
13number of full months which elapsed from January 1, 1978, or
14the date the retirement annuity payments began, whichever is
15later, to the effective date of the increase.
16    The annuitant shall receive an increase in his or her
17monthly retirement annuity on each January 1 thereafter during
18the annuitant's life of 3% of the monthly annuity provided
19under Rule 1, Rule 2, Rule 3, Rule 4, or Rule 5 contained in
20this Section. The change made under this subsection by P.A.
2181-970 is effective January 1, 1980 and applies to each
22annuitant whose status as an employee terminates before or
23after that date.
24    Beginning January 1, 1990 and except as provided in
25subsections (d-1) and (d-2), all automatic annual increases
26payable under this Section shall be calculated as a percentage

 

 

09800SB2404ham001- 180 -LRB098 09018 JDS 46840 a

1of the total annuity payable at the time of the increase,
2including all increases previously granted under this Article.
3    The change made in this subsection by P.A. 85-1008 is
4effective January 26, 1988, and is applicable without regard to
5whether status as an employee terminated before that date.
6    (d-1) Notwithstanding any other provision of this Article,
7for a Tier I retiree, the amount of each automatic annual
8increase in retirement annuity occurring on or after the
9effective date of this amendatory Act of the 98th General
10Assembly shall be 3% of the lesser of (1) the total annuity
11payable at the time of the increase, including previous
12increases granted, or (2) $1,000 multiplied by the number of
13years of creditable service upon which the annuity is based.
14    (d-2) Notwithstanding any other provision of this Article,
15for a Tier I retiree, the monthly retirement annuity shall
16first be subject to annual increases on the January 1 occurring
17on or next after the attainment of age 67 or the January 1
18occurring on or next after the fifth anniversary of the annuity
19start date, whichever occurs earlier. If on the effective date
20of this amendatory Act of the 98th General Assembly a Tier I
21retiree has already received an annual increase under this
22Section but does not yet meet the new eligibility requirements
23of this subsection, the annual increases already received shall
24continue in force, but no additional annual increase shall be
25granted until the Tier I retiree meets the new eligibility
26requirements.

 

 

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1    (d-3) Notwithstanding Section 1-103.1, subsections (d-1)
2and (d-2) apply without regard to whether or not the Tier I
3retiree is in active service under this Article on or after the
4effective date of this amendatory Act of the 98th General
5Assembly.
6    (e) If, on January 1, 1987, or the date the retirement
7annuity payment period begins, whichever is later, the sum of
8the retirement annuity provided under Rule 1 or Rule 2 of this
9Section and the automatic annual increases provided under the
10preceding subsection or Section 15-136.1, amounts to less than
11the retirement annuity which would be provided by Rule 3, the
12retirement annuity shall be increased as of January 1, 1987, or
13the date the retirement annuity payment period begins,
14whichever is later, to the amount which would be provided by
15Rule 3 of this Section. Such increased amount shall be
16considered as the retirement annuity in determining benefits
17provided under other Sections of this Article. This paragraph
18applies without regard to whether status as an employee
19terminated before the effective date of this amendatory Act of
201987, provided that the annuitant was employed at least
21one-half time during the period on which the final rate of
22earnings was based.
23    (f) A participant is entitled to such additional annuity as
24may be provided on an actuarially equivalent basis, by any
25accumulated additional contributions to his or her credit.
26However, the additional contributions made by the participant

 

 

09800SB2404ham001- 182 -LRB098 09018 JDS 46840 a

1toward the automatic increases in annuity provided under this
2Section and the contributions made under subsection (c-5) of
3Section 15-157 by this amendatory Act of the 98th General
4Assembly shall not be taken into account in determining the
5amount of such additional annuity.
6    (g) If, (1) by law, a function of a governmental unit, as
7defined by Section 20-107 of this Code, is transferred in whole
8or in part to an employer, and (2) a participant transfers
9employment from such governmental unit to such employer within
106 months after the transfer of the function, and (3) the sum of
11(A) the annuity payable to the participant under Rule 1, 2, or
123 of this Section (B) all proportional annuities payable to the
13participant by all other retirement systems covered by Article
1420, and (C) the initial primary insurance amount to which the
15participant is entitled under the Social Security Act, is less
16than the retirement annuity which would have been payable if
17all of the participant's pension credits validated under
18Section 20-109 had been validated under this system, a
19supplemental annuity equal to the difference in such amounts
20shall be payable to the participant.
21    (h) On January 1, 1981, an annuitant who was receiving a
22retirement annuity on or before January 1, 1971 shall have his
23or her retirement annuity then being paid increased $1 per
24month for each year of creditable service. On January 1, 1982,
25an annuitant whose retirement annuity began on or before
26January 1, 1977, shall have his or her retirement annuity then

 

 

09800SB2404ham001- 183 -LRB098 09018 JDS 46840 a

1being paid increased $1 per month for each year of creditable
2service.
3    (i) On January 1, 1987, any annuitant whose retirement
4annuity began on or before January 1, 1977, shall have the
5monthly retirement annuity increased by an amount equal to 8
6per year of creditable service times the number of years that
7have elapsed since the annuity began.
8    (j) For participants to whom subsection (a-5) of Section
915-135 applies, the references to age 50, 55, and 62 in this
10Section are increased as provided in subsection (a-5) of
11Section 15-135.
12(Source: P.A. 97-933, eff. 8-10-12; 97-968, eff. 8-16-12.)
 
13    (40 ILCS 5/15-155)  (from Ch. 108 1/2, par. 15-155)
14    Sec. 15-155. Employer contributions.
15    (a) The State of Illinois shall make contributions by
16appropriations of amounts which, together with the other
17employer contributions from trust, federal, and other funds,
18employee contributions, income from investments, and other
19income of this System, will be sufficient to meet the cost of
20maintaining and administering the System on a 100% 90% funded
21basis in accordance with actuarial recommendations by the end
22of State fiscal year 2044.
23    The Board shall determine the amount of State contributions
24required for each fiscal year on the basis of the actuarial
25tables and other assumptions adopted by the Board and the

 

 

09800SB2404ham001- 184 -LRB098 09018 JDS 46840 a

1recommendations of the actuary, using the formula in subsection
2(a-1).
3    (a-1) For State fiscal years 2015 through 2044, the minimum
4contribution to the System to be made by the State for each
5fiscal year shall be an amount determined by the System to be
6equal to the sum of (1) the State's portion of the projected
7normal cost for that fiscal year, plus (2) an amount sufficient
8to bring the total assets of the System up to 100% of the total
9actuarial liabilities of the System by the end of State fiscal
10year 2044. In making these determinations, the required State
11contribution shall be calculated each year as a level
12percentage of payroll over the years remaining to and including
13fiscal year 2044 and shall be determined under the entry age
14normal actuarial cost method.
15    Beginning in State fiscal year 2045, the minimum State
16contribution for each fiscal year shall be the amount needed to
17maintain the total assets of the System at 100% of the total
18actuarial liabilities of the System.
19    For State fiscal years 2012 and 2014 through 2045, the
20minimum contribution to the System to be made by the State for
21each fiscal year shall be an amount determined by the System to
22be sufficient to bring the total assets of the System up to 90%
23of the total actuarial liabilities of the System by the end of
24State fiscal year 2045. In making these determinations, the
25required State contribution shall be calculated each year as a
26level percentage of payroll over the years remaining to and

 

 

09800SB2404ham001- 185 -LRB098 09018 JDS 46840 a

1including fiscal year 2045 and shall be determined under the
2projected unit credit actuarial cost method.
3    For State fiscal years 1996 through 2005, the State
4contribution to the System, as a percentage of the applicable
5employee payroll, shall be increased in equal annual increments
6so that by State fiscal year 2011, the State is contributing at
7the rate required under this Section.
8    Notwithstanding any other provision of this Article, the
9total required State contribution for State fiscal year 2006 is
10$166,641,900.
11    Notwithstanding any other provision of this Article, the
12total required State contribution for State fiscal year 2007 is
13$252,064,100.
14    For each of State fiscal years 2008 through 2009, the State
15contribution to the System, as a percentage of the applicable
16employee payroll, shall be increased in equal annual increments
17from the required State contribution for State fiscal year
182007, so that by State fiscal year 2011, the State is
19contributing at the rate otherwise required under this Section.
20    Notwithstanding any other provision of this Article, the
21total required State contribution for State fiscal year 2010 is
22$702,514,000 and shall be made from the State Pensions Fund and
23proceeds of bonds sold in fiscal year 2010 pursuant to Section
247.2 of the General Obligation Bond Act, less (i) the pro rata
25share of bond sale expenses determined by the System's share of
26total bond proceeds, (ii) any amounts received from the General

 

 

09800SB2404ham001- 186 -LRB098 09018 JDS 46840 a

1Revenue Fund in fiscal year 2010, (iii) any reduction in bond
2proceeds due to the issuance of discounted bonds, if
3applicable.
4    Notwithstanding any other provision of this Article, the
5total required State contribution for State fiscal year 2011 is
6the amount recertified by the System on or before April 1, 2011
7pursuant to Section 15-165 and shall be made from the State
8Pensions Fund and proceeds of bonds sold in fiscal year 2011
9pursuant to Section 7.2 of the General Obligation Bond Act,
10less (i) the pro rata share of bond sale expenses determined by
11the System's share of total bond proceeds, (ii) any amounts
12received from the General Revenue Fund in fiscal year 2011, and
13(iii) any reduction in bond proceeds due to the issuance of
14discounted bonds, if applicable.
15    Beginning in State fiscal year 2046, the minimum State
16contribution for each fiscal year shall be the amount needed to
17maintain the total assets of the System at 90% of the total
18actuarial liabilities of the System.
19    Amounts received by the System pursuant to Section 25 of
20the Budget Stabilization Act or Section 8.12 of the State
21Finance Act in any fiscal year do not reduce and do not
22constitute payment of any portion of the minimum State
23contribution required under this Article in that fiscal year.
24Such amounts shall not reduce, and shall not be included in the
25calculation of, the required State contributions under this
26Article in any future year until the System has reached a

 

 

09800SB2404ham001- 187 -LRB098 09018 JDS 46840 a

1funding ratio of at least 100% 90%. A reference in this Article
2to the "required State contribution" or any substantially
3similar term does not include or apply to any amounts payable
4to the System under Section 25 of the Budget Stabilization Act.
5    Notwithstanding any other provision of this Section, the
6required State contribution for State fiscal year 2005 and for
7fiscal year 2008 and each fiscal year thereafter through State
8fiscal year 2014, as calculated under this Section and
9certified under Section 15-165, shall not exceed an amount
10equal to (i) the amount of the required State contribution that
11would have been calculated under this Section for that fiscal
12year if the System had not received any payments under
13subsection (d) of Section 7.2 of the General Obligation Bond
14Act, minus (ii) the portion of the State's total debt service
15payments for that fiscal year on the bonds issued in fiscal
16year 2003 for the purposes of that Section 7.2, as determined
17and certified by the Comptroller, that is the same as the
18System's portion of the total moneys distributed under
19subsection (d) of Section 7.2 of the General Obligation Bond
20Act. In determining this maximum for State fiscal years 2008
21through 2010, however, the amount referred to in item (i) shall
22be increased, as a percentage of the applicable employee
23payroll, in equal increments calculated from the sum of the
24required State contribution for State fiscal year 2007 plus the
25applicable portion of the State's total debt service payments
26for fiscal year 2007 on the bonds issued in fiscal year 2003

 

 

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1for the purposes of Section 7.2 of the General Obligation Bond
2Act, so that, by State fiscal year 2011, the State is
3contributing at the rate otherwise required under this Section.
4    (b) If an employee is paid from trust or federal funds, the
5employer shall pay to the Board contributions from those funds
6which are sufficient to cover the accruing normal costs on
7behalf of the employee. However, universities having employees
8who are compensated out of local auxiliary funds, income funds,
9or service enterprise funds are not required to pay such
10contributions on behalf of those employees. The local auxiliary
11funds, income funds, and service enterprise funds of
12universities shall not be considered trust funds for the
13purpose of this Article, but funds of alumni associations,
14foundations, and athletic associations which are affiliated
15with the universities included as employers under this Article
16and other employers which do not receive State appropriations
17are considered to be trust funds for the purpose of this
18Article.
19    (b-1) The City of Urbana and the City of Champaign shall
20each make employer contributions to this System for their
21respective firefighter employees who participate in this
22System pursuant to subsection (h) of Section 15-107. The rate
23of contributions to be made by those municipalities shall be
24determined annually by the Board on the basis of the actuarial
25assumptions adopted by the Board and the recommendations of the
26actuary, and shall be expressed as a percentage of salary for

 

 

09800SB2404ham001- 189 -LRB098 09018 JDS 46840 a

1each such employee. The Board shall certify the rate to the
2affected municipalities as soon as may be practical. The
3employer contributions required under this subsection shall be
4remitted by the municipality to the System at the same time and
5in the same manner as employee contributions.
6    (c) Through State fiscal year 1995: The total employer
7contribution shall be apportioned among the various funds of
8the State and other employers, whether trust, federal, or other
9funds, in accordance with actuarial procedures approved by the
10Board. State of Illinois contributions for employers receiving
11State appropriations for personal services shall be payable
12from appropriations made to the employers or to the System. The
13contributions for Class I community colleges covering earnings
14other than those paid from trust and federal funds, shall be
15payable solely from appropriations to the Illinois Community
16College Board or the System for employer contributions.
17    (d) Beginning in State fiscal year 1996, the required State
18contributions to the System shall be appropriated directly to
19the System and shall be payable through vouchers issued in
20accordance with subsection (c) of Section 15-165, except as
21provided in subsection (g).
22    (e) The State Comptroller shall draw warrants payable to
23the System upon proper certification by the System or by the
24employer in accordance with the appropriation laws and this
25Code.
26    (f) Normal costs under this Section means liability for

 

 

09800SB2404ham001- 190 -LRB098 09018 JDS 46840 a

1pensions and other benefits which accrues to the System because
2of the credits earned for service rendered by the participants
3during the fiscal year and expenses of administering the
4System, but shall not include the principal of or any
5redemption premium or interest on any bonds issued by the Board
6or any expenses incurred or deposits required in connection
7therewith.
8    (g) If the amount of a participant's earnings for any
9academic year used to determine the final rate of earnings,
10determined on a full-time equivalent basis, exceeds the amount
11of his or her earnings with the same employer for the previous
12academic year, determined on a full-time equivalent basis, by
13more than 6%, the participant's employer shall pay to the
14System, in addition to all other payments required under this
15Section and in accordance with guidelines established by the
16System, the present value of the increase in benefits resulting
17from the portion of the increase in earnings that is in excess
18of 6%. This present value shall be computed by the System on
19the basis of the actuarial assumptions and tables used in the
20most recent actuarial valuation of the System that is available
21at the time of the computation. The System may require the
22employer to provide any pertinent information or
23documentation.
24    Whenever it determines that a payment is or may be required
25under this subsection (g), the System shall calculate the
26amount of the payment and bill the employer for that amount.

 

 

09800SB2404ham001- 191 -LRB098 09018 JDS 46840 a

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

 

 

09800SB2404ham001- 192 -LRB098 09018 JDS 46840 a

1    When assessing payment for any amount due under subsection
2(g), the System shall exclude earnings increases paid to
3participants under contracts or collective bargaining
4agreements entered into, amended, or renewed before June 1,
52005.
6    When assessing payment for any amount due under subsection
7(g), the System shall exclude earnings increases paid to a
8participant at a time when the participant is 10 or more years
9from retirement eligibility under Section 15-135.
10    When assessing payment for any amount due under subsection
11(g), the System shall exclude earnings increases resulting from
12overload work, including a contract for summer teaching, or
13overtime when the employer has certified to the System, and the
14System has approved the certification, that: (i) in the case of
15overloads (A) the overload work is for the sole purpose of
16academic instruction in excess of the standard number of
17instruction hours for a full-time employee occurring during the
18academic year that the overload is paid and (B) the earnings
19increases are equal to or less than the rate of pay for
20academic instruction computed using the participant's current
21salary rate and work schedule; and (ii) in the case of
22overtime, the overtime was necessary for the educational
23mission.
24    When assessing payment for any amount due under subsection
25(g), the System shall exclude any earnings increase resulting
26from (i) a promotion for which the employee moves from one

 

 

09800SB2404ham001- 193 -LRB098 09018 JDS 46840 a

1classification to a higher classification under the State
2Universities Civil Service System, (ii) a promotion in academic
3rank for a tenured or tenure-track faculty position, or (iii) a
4promotion that the Illinois Community College Board has
5recommended in accordance with subsection (k) of this Section.
6These earnings increases shall be excluded only if the
7promotion is to a position that has existed and been filled by
8a member for no less than one complete academic year and the
9earnings increase as a result of the promotion is an increase
10that results in an amount no greater than the average salary
11paid for other similar positions.
12    (i) When assessing payment for any amount due under
13subsection (g), the System shall exclude any salary increase
14described in subsection (h) of this Section given on or after
15July 1, 2011 but before July 1, 2014 under a contract or
16collective bargaining agreement entered into, amended, or
17renewed on or after June 1, 2005 but before July 1, 2011.
18Notwithstanding any other provision of this Section, any
19payments made or salary increases given after June 30, 2014
20shall be used in assessing payment for any amount due under
21subsection (g) of this Section.
22    (j) The System shall prepare a report and file copies of
23the report with the Governor and the General Assembly by
24January 1, 2007 that contains all of the following information:
25        (1) The number of recalculations required by the
26    changes made to this Section by Public Act 94-1057 for each

 

 

09800SB2404ham001- 194 -LRB098 09018 JDS 46840 a

1    employer.
2        (2) The dollar amount by which each employer's
3    contribution to the System was changed due to
4    recalculations required by Public Act 94-1057.
5        (3) The total amount the System received from each
6    employer as a result of the changes made to this Section by
7    Public Act 94-4.
8        (4) The increase in the required State contribution
9    resulting from the changes made to this Section by Public
10    Act 94-1057.
11    (k) The Illinois Community College Board shall adopt rules
12for recommending lists of promotional positions submitted to
13the Board by community colleges and for reviewing the
14promotional lists on an annual basis. When recommending
15promotional lists, the Board shall consider the similarity of
16the positions submitted to those positions recognized for State
17universities by the State Universities Civil Service System.
18The Illinois Community College Board shall file a copy of its
19findings with the System. The System shall consider the
20findings of the Illinois Community College Board when making
21determinations under this Section. The System shall not exclude
22any earnings increases resulting from a promotion when the
23promotion was not submitted by a community college. Nothing in
24this subsection (k) shall require any community college to
25submit any information to the Community College Board.
26    (l) For purposes of determining the required State

 

 

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1contribution to the System, the value of the System's assets
2shall be equal to the actuarial value of the System's assets,
3which shall be calculated as follows:
4    As of June 30, 2008, the actuarial value of the System's
5assets shall be equal to the market value of the assets as of
6that date. In determining the actuarial value of the System's
7assets for fiscal years after June 30, 2008, any actuarial
8gains or losses from investment return incurred in a fiscal
9year shall be recognized in equal annual amounts over the
105-year period following that fiscal year.
11    (m) For purposes of determining the required State
12contribution to the system for a particular year, the actuarial
13value of assets shall be assumed to earn a rate of return equal
14to the system's actuarially assumed rate of return.
15(Source: P.A. 96-43, eff. 7-15-09; 96-1497, eff. 1-14-11;
1696-1511, eff. 1-27-11; 96-1554, eff. 3-18-11; 97-813, eff.
177-13-12; revised 10-17-12.)
 
18    (40 ILCS 5/15-156)  (from Ch. 108 1/2, par. 15-156)
19    Sec. 15-156. Obligations of State; funding guarantees.
20    (a) The payment of (1) the required State contributions,
21(2) all benefits granted under this system and (3) all expenses
22in connection with the administration and operation thereof are
23obligations of the State of Illinois to the extent specified in
24this Article. The accumulated employee normal, additional and
25survivors insurance contributions credited to the accounts of

 

 

09800SB2404ham001- 196 -LRB098 09018 JDS 46840 a

1active and inactive participants shall not be used to pay the
2State's share of the obligations.
3    (b) (Reserved).
4    (c) Beginning July 1, 2014, the State shall be
5contractually obligated to contribute to the System in each
6State fiscal year an amount not less than the sum of (i) the
7State's normal cost for the year and (ii) the portion of the
8unfunded accrued liability assigned to that year by law.
9Notwithstanding any other provision of law, if the State fails
10to pay an amount guaranteed under this subsection, it shall be
11the mandatory fiduciary obligation of the Board to seek payment
12of the guaranteed amount in compliance with the provisions of
13this Section and, if the amount remains unpaid, to bring a
14mandamus action in the Supreme Court of Illinois to compel the
15State to make the required payment.
16    If the System submits a voucher for contributions required
17under Section 15-155 and the State fails to pay that voucher
18within 90 days of its receipt, the Board shall submit a written
19request to the Comptroller seeking payment. A copy of the
20request shall be filed with the Secretary of State, and the
21Secretary of State shall provide a copy to the Governor and
22General Assembly. No earlier than the 16th day after the System
23files the request with the Comptroller and Secretary of State,
24if the amount remains unpaid, the Board shall commence a
25mandamus action in the Supreme Court of Illinois to compel the
26Comptroller to satisfy the voucher.

 

 

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1    This subsection (c) constitutes an express waiver of the
2State's sovereign immunity solely to the extent that it permits
3the Board to commence a mandamus action in the Supreme Court of
4Illinois to compel the Comptroller to pay a voucher for the
5contributions required under Section 15-155.
6    (d) Beginning in State fiscal year 2020, the State shall be
7contractually obligated to make the transfers set forth in
8subsections (c-10) and (c-15) of Section 20 of the Budget
9Stabilization Act and to pay to the System its proportionate
10share of the transferred amounts in accordance with Section 25
11of the Budget Stabilization Act. Notwithstanding any other
12provision of law, if the State fails to transfer an amount
13guaranteed under this subsection or to pay to the System its
14proportionate share of the transferred amount in accordance
15with Section 25 of the Budget Stabilization Act, it shall be
16the mandatory fiduciary obligation of the Board to seek
17transfer or payment of the guaranteed amount in compliance with
18the provisions of this Section and, if the required amount
19remains untransferred or the required payment remains unpaid,
20to bring a mandamus action in the Supreme Court of Illinois to
21compel the State to make the required transfer or payment or
22both, as the case may be.
23    If the State fails to make a transfer required under
24subsections (c-10) and (c-15) of Section 20 of the Budget
25Stabilization Act or a payment to the System required under
26Section 25 of that Act, the Board shall submit a written

 

 

09800SB2404ham001- 198 -LRB098 09018 JDS 46840 a

1request to the Comptroller seeking payment. A copy of the
2request shall be filed with the Secretary of State, and the
3Secretary of State shall provide a copy to the Governor and
4General Assembly. No earlier than the 16th day after the System
5files the request with the Comptroller and Secretary of State,
6if the required amount remains untransferred or the required
7payment remains unpaid, the Board shall commence a mandamus
8action in the Supreme Court of Illinois to compel the
9Comptroller to make the required transfer or payment or both,
10as the case may be.
11    This subsection (d) constitutes an express waiver of the
12State's sovereign immunity solely to the extent that it permits
13the Board to commence a mandamus action in the Supreme Court of
14Illinois to compel the Comptroller to make a transfer required
15under subsections (c-10) and (c-15) of Section 20 of the Budget
16Stabilization Act and to pay to the System its proportionate
17share of the transferred amount in accordance with Section 25
18of the Budget Stabilization Act.
19    The obligations created by this subsection (d) expire when
20all of the requirements of subsections (c-10) and (c-15) of
21Section 20 of the Budget Stabilization Act and Section 25 of
22the Budget Stabilization Act have been met.
23    (e) Any payments and transfers required to be made by the
24State pursuant to subsection (c) or (d) are expressly
25subordinate to the payment of the principal, interest, and
26premium, if any, on any bonded debt obligation of the State or

 

 

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1any other State-created entity, either currently outstanding
2or to be issued, for which the source of repayment or security
3thereon is derived directly or indirectly from tax revenues
4collected by the State or any other State-created entity.
5Payments on such bonded obligations include any statutory fund
6transfers or other prefunding mechanisms or formulas set forth,
7now or hereafter, in State law or bond indentures, into debt
8service funds or accounts of the State related to such bond
9obligations, consistent with the payment schedules associated
10with such obligations.
11    (f) By the enactment of this amendatory Act of the 98th
12General Assembly, the State of Illinois pledges to and agrees
13with the Board and members of the System that the State will
14make the payments and transfers required to be made by the
15State pursuant to subsections (c) and (d). The State further
16pledges that the State will not limit or alter the rights and
17powers vested in the Board so as to impair the terms of this
18Section or in any way impair the rights and remedies of the
19Board under this Section.
20(Source: P.A. 83-1440.)
 
21    (40 ILCS 5/15-157)  (from Ch. 108 1/2, par. 15-157)
22    Sec. 15-157. Employee Contributions.
23    (a) Each participating employee shall make contributions
24towards the retirement benefits payable under the retirement
25program applicable to the employee from each payment of

 

 

09800SB2404ham001- 200 -LRB098 09018 JDS 46840 a

1earnings applicable to employment under this system on and
2after the date of becoming a participant as follows: Prior to
3September 1, 1949, 3 1/2% of earnings; from September 1, 1949
4to August 31, 1955, 5%; from September 1, 1955 to August 31,
51969, 6%; from September 1, 1969, 6 1/2%. These contributions
6are to be considered as normal contributions for purposes of
7this Article.
8    Each participant who is a police officer or firefighter
9shall make normal contributions of 8% of each payment of
10earnings applicable to employment as a police officer or
11firefighter under this system on or after September 1, 1981,
12unless he or she files with the board within 60 days after the
13effective date of this amendatory Act of 1991 or 60 days after
14the board receives notice that he or she is employed as a
15police officer or firefighter, whichever is later, a written
16notice waiving the retirement formula provided by Rule 4 of
17Section 15-136. This waiver shall be irrevocable. If a
18participant had met the conditions set forth in Section
1915-132.1 prior to the effective date of this amendatory Act of
201991 but failed to make the additional normal contributions
21required by this paragraph, he or she may elect to pay the
22additional contributions plus compound interest at the
23effective rate. If such payment is received by the board, the
24service shall be considered as police officer service in
25calculating the retirement annuity under Rule 4 of Section
2615-136. While performing service described in clause (i) or

 

 

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1(ii) of Rule 4 of Section 15-136, a participating employee
2shall be deemed to be employed as a firefighter for the purpose
3of determining the rate of employee contributions under this
4Section.
5    (b) Starting September 1, 1969, each participating
6employee shall make additional contributions of 1/2 of 1% of
7earnings to finance a portion of the cost of the annual
8increases in retirement annuity provided under Section 15-136,
9except that with respect to participants in the self-managed
10plan this additional contribution shall be used to finance the
11benefits obtained under that retirement program.
12    (c) In addition to the amounts described in subsections (a)
13and (b) of this Section, each participating employee shall make
14contributions of 1% of earnings applicable under this system on
15and after August 1, 1959. The contributions made under this
16subsection (c) shall be considered as survivor's insurance
17contributions for purposes of this Article if the employee is
18covered under the traditional benefit package, and such
19contributions shall be considered as additional contributions
20for purposes of this Article if the employee is participating
21in the self-managed plan or has elected to participate in the
22portable benefit package and has completed the applicable
23one-year waiting period. Contributions in excess of $80 during
24any fiscal year beginning before August 31, 1969 and in excess
25of $120 during any fiscal year thereafter until September 1,
261971 shall be considered as additional contributions for

 

 

09800SB2404ham001- 202 -LRB098 09018 JDS 46840 a

1purposes of this Article.
2    (c-5) In addition to the contributions otherwise required
3under this Article, each Tier I participant shall also make the
4following contributions toward the retirement benefits payable
5under the retirement program applicable to the employee from
6each payment of earnings applicable to employment under this
7system:
8        (1) beginning July 1, 2014 and through June 30, 2015,
9    1% of earnings; and
10        (2) beginning on July 1, 2015, 2% of earnings.
11    Except as otherwise specified, these contributions are to
12be considered as normal contributions for purposes of this
13Article.
14    (d) If the board by board rule so permits and subject to
15such conditions and limitations as may be specified in its
16rules, a participant may make other additional contributions of
17such percentage of earnings or amounts as the participant shall
18elect in a written notice thereof received by the board.
19    (e) That fraction of a participant's total accumulated
20normal contributions, the numerator of which is equal to the
21number of years of service in excess of that which is required
22to qualify for the maximum retirement annuity, and the
23denominator of which is equal to the total service of the
24participant, shall be considered as accumulated additional
25contributions. The determination of the applicable maximum
26annuity and the adjustment in contributions required by this

 

 

09800SB2404ham001- 203 -LRB098 09018 JDS 46840 a

1provision shall be made as of the date of the participant's
2retirement.
3    (f) Notwithstanding the foregoing, a participating
4employee shall not be required to make contributions under this
5Section after the date upon which continuance of such
6contributions would otherwise cause his or her retirement
7annuity to exceed the maximum retirement annuity as specified
8in clause (1) of subsection (c) of Section 15-136.
9    (g) A participating employee may make contributions for the
10purchase of service credit under this Article.
11(Source: P.A. 90-32, eff. 6-27-97; 90-65, eff. 7-7-97; 90-448,
12eff. 8-16-97; 90-511, eff. 8-22-97; 90-576, eff. 3-31-98;
1390-655, eff. 7-30-98; 90-766, eff. 8-14-98.)
 
14    (40 ILCS 5/15-157.5 new)
15    Sec. 15-157.5. Use of contributions for health care
16subsidies. The System shall not use any contribution received
17by the System under this Article to provide a subsidy for the
18cost of participation in a retiree health care program.
 
19    (40 ILCS 5/15-165)   (from Ch. 108 1/2, par. 15-165)
20    Sec. 15-165. To certify amounts and submit vouchers.
21    (a) The Board shall certify to the Governor on or before
22November 15 of each year through until November 15, 2011 the
23appropriation required from State funds for the purposes of
24this System for the following fiscal year. The certification

 

 

09800SB2404ham001- 204 -LRB098 09018 JDS 46840 a

1under this subsection (a) shall include a copy of the actuarial
2recommendations upon which it is based and shall specifically
3identify the System's projected State normal cost for that
4fiscal year and the projected State cost for the self-managed
5plan for that fiscal year.
6    On or before May 1, 2004, the Board shall recalculate and
7recertify to the Governor the amount of the required State
8contribution to the System for State fiscal year 2005, taking
9into account the amounts appropriated to and received by the
10System under subsection (d) of Section 7.2 of the General
11Obligation Bond Act.
12    On or before July 1, 2005, the Board shall recalculate and
13recertify to the Governor the amount of the required State
14contribution to the System for State fiscal year 2006, taking
15into account the changes in required State contributions made
16by this amendatory Act of the 94th General Assembly.
17    On or before April 1, 2011, the Board shall recalculate and
18recertify to the Governor the amount of the required State
19contribution to the System for State fiscal year 2011, applying
20the changes made by Public Act 96-889 to the System's assets
21and liabilities as of June 30, 2009 as though Public Act 96-889
22was approved on that date.
23    (a-5) On or before November 1 of each year, beginning
24November 1, 2012, the Board shall submit to the State Actuary,
25the Governor, and the General Assembly a proposed certification
26of the amount of the required State contribution to the System

 

 

09800SB2404ham001- 205 -LRB098 09018 JDS 46840 a

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

 

 

09800SB2404ham001- 206 -LRB098 09018 JDS 46840 a

1    (c) Beginning in State fiscal year 1996, on or as soon as
2possible after the 15th day of each month the Board shall
3submit vouchers for payment of State contributions to the
4System, in a total monthly amount of one-twelfth of the
5required annual State contribution certified under subsection
6(a). From the effective date of this amendatory Act of the 93rd
7General Assembly through June 30, 2004, the Board shall not
8submit vouchers for the remainder of fiscal year 2004 in excess
9of the fiscal year 2004 certified contribution amount
10determined under this Section after taking into consideration
11the transfer to the System under subsection (b) of Section
126z-61 of the State Finance Act. These vouchers shall be paid by
13the State Comptroller and Treasurer by warrants drawn on the
14funds appropriated to the System for that fiscal year.
15    If in any month the amount remaining unexpended from all
16other appropriations to the System for the applicable fiscal
17year (including the appropriations to the System under Section
188.12 of the State Finance Act and Section 1 of the State
19Pension Funds Continuing Appropriation Act) is less than the
20amount lawfully vouchered under this Section, the difference
21shall be paid from the General Revenue Fund under the
22continuing appropriation authority provided in Section 1.1 of
23the State Pension Funds Continuing Appropriation Act.
24    (d) So long as the payments received are the full amount
25lawfully vouchered under this Section, payments received by the
26System under this Section shall be applied first toward the

 

 

09800SB2404ham001- 207 -LRB098 09018 JDS 46840 a

1employer contribution to the self-managed plan established
2under Section 15-158.2. Payments shall be applied second toward
3the employer's portion of the normal costs of the System, as
4defined in subsection (f) of Section 15-155. The balance shall
5be applied toward the unfunded actuarial liabilities of the
6System.
7    (e) In the event that the System does not receive, as a
8result of legislative enactment or otherwise, payments
9sufficient to fully fund the employer contribution to the
10self-managed plan established under Section 15-158.2 and to
11fully fund that portion of the employer's portion of the normal
12costs of the System, as calculated in accordance with Section
1315-155(a-1), then any payments received shall be applied
14proportionately to the optional retirement program established
15under Section 15-158.2 and to the employer's portion of the
16normal costs of the System, as calculated in accordance with
17Section 15-155(a-1).
18(Source: P.A. 96-1497, eff. 1-14-11; 96-1511, eff. 1-27-11;
1997-694, eff. 6-18-12.)
 
20    (40 ILCS 5/15-198)
21    Sec. 15-198. Application and expiration of new benefit
22increases.
23    (a) As used in this Section, "new benefit increase" means
24an increase in the amount of any benefit provided under this
25Article, or an expansion of the conditions of eligibility for

 

 

09800SB2404ham001- 208 -LRB098 09018 JDS 46840 a

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

 

 

09800SB2404ham001- 209 -LRB098 09018 JDS 46840 a

1this subsection is or has become inadequate, it may so certify
2to the Governor and the State Comptroller and, in the absence
3of corrective action by the General Assembly, the new benefit
4increase shall expire at the end of the fiscal year in which
5the certification is made.
6    (d) Every new benefit increase shall expire 5 years after
7its effective date or on such earlier date as may be specified
8in the language enacting the new benefit increase or provided
9under subsection (c). This does not prevent the General
10Assembly from extending or re-creating a new benefit increase
11by law.
12    (e) Except as otherwise provided in the language creating
13the new benefit increase, a new benefit increase that expires
14under this Section continues to apply to persons who applied
15and qualified for the affected benefit while the new benefit
16increase was in effect and to the affected beneficiaries and
17alternate payees of such persons, but does not apply to any
18other person, including without limitation a person who
19continues in service after the expiration date and did not
20apply and qualify for the affected benefit while the new
21benefit increase was in effect.
22(Source: P.A. 94-4, eff. 6-1-05.)
 
23    (40 ILCS 5/16-106)  (from Ch. 108 1/2, par. 16-106)
24    Sec. 16-106. Teacher. "Teacher": The following
25individuals, provided that, for employment prior to July 1,

 

 

09800SB2404ham001- 210 -LRB098 09018 JDS 46840 a

11990, they are employed on a full-time basis, or if not
2full-time, on a permanent and continuous basis in a position in
3which services are expected to be rendered for at least one
4school term:
5        (1) Any educational, administrative, professional or
6    other staff employed in the public common schools included
7    within this system in a position requiring certification
8    under the law governing the certification of teachers;
9        (2) Any educational, administrative, professional or
10    other staff employed in any facility of the Department of
11    Children and Family Services or the Department of Human
12    Services, in a position requiring certification under the
13    law governing the certification of teachers, and any person
14    who (i) works in such a position for the Department of
15    Corrections, (ii) was a member of this System on May 31,
16    1987, and (iii) did not elect to become a member of the
17    State Employees' Retirement System pursuant to Section
18    14-108.2 of this Code; except that "teacher" does not
19    include any person who (A) becomes a security employee of
20    the Department of Human Services, as defined in Section
21    14-110, after June 28, 2001 (the effective date of Public
22    Act 92-14), or (B) becomes a member of the State Employees'
23    Retirement System pursuant to Section 14-108.2c of this
24    Code;
25        (3) Any regional superintendent of schools, assistant
26    regional superintendent of schools, State Superintendent

 

 

09800SB2404ham001- 211 -LRB098 09018 JDS 46840 a

1    of Education; any person employed by the State Board of
2    Education as an executive; any executive of the boards
3    engaged in the service of public common school education in
4    school districts covered under this system of which the
5    State Superintendent of Education is an ex-officio member;
6        (4) Any employee of a school board association
7    operating in compliance with Article 23 of the School Code
8    who is certificated under the law governing the
9    certification of teachers, provided that he or she becomes
10    such an employee before the effective date of this
11    amendatory Act of the 98th General Assembly;
12        (5) Any person employed by the retirement system who:
13            (i) was an employee of and a participant in the
14        system on August 17, 2001 (the effective date of Public
15        Act 92-416), or
16            (ii) becomes an employee of the system on or after
17        August 17, 2001;
18        (6) Any educational, administrative, professional or
19    other staff employed by and under the supervision and
20    control of a regional superintendent of schools, provided
21    such employment position requires the person to be
22    certificated under the law governing the certification of
23    teachers and is in an educational program serving 2 or more
24    districts in accordance with a joint agreement authorized
25    by the School Code or by federal legislation;
26        (7) Any educational, administrative, professional or

 

 

09800SB2404ham001- 212 -LRB098 09018 JDS 46840 a

1    other staff employed in an educational program serving 2 or
2    more school districts in accordance with a joint agreement
3    authorized by the School Code or by federal legislation and
4    in a position requiring certification under the laws
5    governing the certification of teachers;
6        (8) Any officer or employee of a statewide teacher
7    organization or officer of a national teacher organization
8    who is certified under the law governing certification of
9    teachers, provided: (i) the individual had previously
10    established creditable service under this Article, (ii)
11    the individual files with the system an irrevocable
12    election to become a member before the effective date of
13    this amendatory Act of the 97th General Assembly, (iii) the
14    individual does not receive credit for such service under
15    any other Article of this Code, and (iv) the individual
16    first became an officer or employee of the teacher
17    organization and becomes a member before the effective date
18    of this amendatory Act of the 97th General Assembly;
19        (9) Any educational, administrative, professional, or
20    other staff employed in a charter school operating in
21    compliance with the Charter Schools Law who is certificated
22    under the law governing the certification of teachers; .
23        (10) Any person employed, on the effective date of this
24    amendatory Act of the 94th General Assembly, by the
25    Macon-Piatt Regional Office of Education in a
26    birth-through-age-three pilot program receiving funds

 

 

09800SB2404ham001- 213 -LRB098 09018 JDS 46840 a

1    under Section 2-389 of the School Code who is required by
2    the Macon-Piatt Regional Office of Education to hold a
3    teaching certificate, provided that the Macon-Piatt
4    Regional Office of Education makes an election, within 6
5    months after the effective date of this amendatory Act of
6    the 94th General Assembly, to have the person participate
7    in the system. Any service established prior to the
8    effective date of this amendatory Act of the 94th General
9    Assembly for service as an employee of the Macon-Piatt
10    Regional Office of Education in a birth-through-age-three
11    pilot program receiving funds under Section 2-389 of the
12    School Code shall be considered service as a teacher if
13    employee and employer contributions have been received by
14    the system and the system has not refunded those
15    contributions.
16    An annuitant receiving a retirement annuity under this
17Article or under Article 17 of this Code who is employed by a
18board of education or other employer as permitted under Section
1916-118 or 16-150.1 is not a "teacher" for purposes of this
20Article. A person who has received a single-sum retirement
21benefit under Section 16-136.4 of this Article is not a
22"teacher" for purposes of this Article.
23(Source: P.A. 97-651, eff. 1-5-12; revised 8-3-12.)
 
24    (40 ILCS 5/16-106.4 new)
25    Sec. 16-106.4. Tier I member. "Tier I member": A member

 

 

09800SB2404ham001- 214 -LRB098 09018 JDS 46840 a

1under this Article who first became a member or participant
2before January 1, 2011 under any reciprocal retirement system
3or pension fund established under this Code other than a
4retirement system or pension fund established under Article 2,
53, 4, 5, 6, or 18 of this Code.
 
6    (40 ILCS 5/16-106.5 new)
7    Sec. 16-106.5. Tier I retiree. "Tier I retiree": A former
8Tier I member who is receiving a retirement annuity.
 
9    (40 ILCS 5/16-121)  (from Ch. 108 1/2, par. 16-121)
10    Sec. 16-121. Salary. "Salary": The actual compensation
11received by a teacher during any school year and recognized by
12the system in accordance with rules of the board. For purposes
13of this Section, "school year" includes the regular school term
14plus any additional period for which a teacher is compensated
15and such compensation is recognized by the rules of the board.
16In the case of a person who first becomes a member on or after
17the effective date of this amendatory Act of the 98th General
18Assembly, "salary" shall not include any payment for unused
19sick or vacation time.
20    Notwithstanding any other provision of this Code, the
21salary of a Tier I member for the purposes of this Code shall
22not exceed, for periods of service on or after the effective
23date of this amendatory Act of the 98th General Assembly, the
24greater of (i) the limitation determined from time to time

 

 

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1under subsection (b-5) of Section 1-160 of this Code for
2persons subject to that Section or (ii) the annual salary of
3the member during the 365 days immediately preceding that
4effective date; except that this limitation does not apply to a
5member's salary that is determined under an employment contract
6or collective bargaining agreement that is in effect on the
7effective date of this amendatory Act of the 98th General
8Assembly and has not been amended, renewed, or terminated after
9that date.
10(Source: P.A. 84-1028.)
 
11    (40 ILCS 5/16-127)  (from Ch. 108 1/2, par. 16-127)
12    Sec. 16-127. Computation of creditable service.
13    (a) Each member shall receive regular credit for all
14service as a teacher from the date membership begins, for which
15satisfactory evidence is supplied and all contributions have
16been paid.
17    (b) The following periods of service shall earn optional
18credit and each member shall receive credit for all such
19service for which satisfactory evidence is supplied and all
20contributions have been paid as of the date specified:
21        (1) Prior service as a teacher.
22        (2) Service in a capacity essentially similar or
23    equivalent to that of a teacher, in the public common
24    schools in school districts in this State not included
25    within the provisions of this System, or of any other

 

 

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1    State, territory, dependency or possession of the United
2    States, or in schools operated by or under the auspices of
3    the United States, or under the auspices of any agency or
4    department of any other State, and service during any
5    period of professional speech correction or special
6    education experience for a public agency within this State
7    or any other State, territory, dependency or possession of
8    the United States, and service prior to February 1, 1951 as
9    a recreation worker for the Illinois Department of Public
10    Safety, for a period not exceeding the lesser of 2/5 of the
11    total creditable service of the member or 10 years. The
12    maximum service of 10 years which is allowable under this
13    paragraph shall be reduced by the service credit which is
14    validated by other retirement systems under paragraph (i)
15    of Section 15-113 and paragraph 1 of Section 17-133. Credit
16    granted under this paragraph may not be used in
17    determination of a retirement annuity or disability
18    benefits unless the member has at least 5 years of
19    creditable service earned subsequent to this employment
20    with one or more of the following systems: Teachers'
21    Retirement System of the State of Illinois, State
22    Universities Retirement System, and the Public School
23    Teachers' Pension and Retirement Fund of Chicago. Whenever
24    such service credit exceeds the maximum allowed for all