Illinois General Assembly - Full Text of SB3979
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Full Text of SB3979  102nd General Assembly

SB3979 102ND GENERAL ASSEMBLY

  
  

 


 
102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
SB3979

 

Introduced 1/21/2022, by Sen. Elgie R. Sims, Jr.

 

SYNOPSIS AS INTRODUCED:
 
See Index

    Amends the Illinois Income Tax Act. Provides that each qualified teacher is entitled to an income tax credit in an aggregate amount equal to 100% of the minimum federal student loan payments required and made by a qualified teacher in each taxable year. Defines "qualified teacher" as an individual who (i) is employed as a public school teacher on or after December 31, 2022, (ii) is a full-time public school teacher during the taxable year in which he or she claims the credit, and (iii) provides specified documentation. Amends the General Provisions, Illinois Municipal Retirement Fund (IMRF), State Universities, and Downstate Teacher Articles of the Illinois Pension Code. With regard to Tier 2 members under the Downstate Teacher or State Universities Article and Tier 2 regular employees who are employees of an educational employer: makes changes to the age and service credit requirements for receiving an annuity; increases the amount of the automatic annual increases to retirement annuities; makes changes to the formula for calculating final average salary; and increases the limitation on the amount of salary that is used to calculate benefits. Provides that a person may receive optional credit for certain periods of service as a student teacher. Amends the School Code. Provides that each school district shall, from funds appropriated by the General Assembly, provide a salary to a student teacher employed by the district for certain school years. Makes other changes. Amends the Illinois Educational Labor Relations Act. Adds student teachers to a provision that excludes certain individuals from the definition of "student". Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.


LRB102 25048 RPS 34307 b

STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT
MAY APPLY

 

 

A BILL FOR

 

SB3979LRB102 25048 RPS 34307 b

1    AN ACT concerning education.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Income Tax Act is amended by
5adding Section 232 as follows:
 
6    (35 ILCS 5/232 new)
7    Sec. 232. Credit for qualified teachers.
8    (a) For taxable years ending on or after December 31,
92022, each qualified teacher is entitled to a credit against
10the taxes imposed by subsections (a) and (b) of Section 201 in
11an aggregate amount equal to 100% of the minimum federal
12student loan payments required and made by a qualified teacher
13in each taxable year. Notwithstanding the provisions of this
14subsection (a), the credit used by a qualified teacher in any
15taxable year shall not exceed $10,000.
16    (b) The credit under this Section shall be available to a
17qualified teacher for no more than 10 taxable years.
18    (c) As used in this Section, "qualified teacher" means an
19individual who (i) is employed as a public school teacher on or
20after December 31, 2022, (ii) is a full-time public school
21teacher during the taxable year in which he or she claims this
22credit, and (iii) provides documentation on an annual basis
23that he or she has submitted a Public Service Loan Forgiveness

 

 

SB3979- 2 -LRB102 25048 RPS 34307 b

1(PSLF) & Temporary Expanded PSLF (TEPSLF) Certification &
2Application or its successor form.
3    (d) The Department shall adopt rules to implement this
4Section.
5    (e) This Section is exempt from the provisions of Section
6250.
 
7    Section 10. The Illinois Pension Code is amended by
8changing Sections 1-160, 7-114, 7-116, 7-141, 7-142, 15-111,
915-112, 15-135, 15-136, 15-198, 16-127, and 16-203 as follows:
 
10    (40 ILCS 5/1-160)
11    Sec. 1-160. Provisions applicable to new hires.
12    (a) The provisions of this Section apply to a person who,
13on or after January 1, 2011, first becomes a member or a
14participant under any reciprocal retirement system or pension
15fund established under this Code, other than a retirement
16system or pension fund established under Article 2, 3, 4, 5, 6,
177, 15, or 18 of this Code, notwithstanding any other provision
18of this Code to the contrary, but do not apply to any
19self-managed plan established under this Code or to any
20participant of the retirement plan established under Section
2122-101; except that this Section applies to a person who
22elected to establish alternative credits by electing in
23writing after January 1, 2011, but before August 8, 2011,
24under Section 7-145.1 of this Code. Notwithstanding anything

 

 

SB3979- 3 -LRB102 25048 RPS 34307 b

1to the contrary in this Section, for purposes of this Section,
2a person who is a Tier 1 regular employee as defined in Section
37-109.4 of this Code or who participated in a retirement
4system under Article 15 prior to January 1, 2011 shall be
5deemed a person who first became a member or participant prior
6to January 1, 2011 under any retirement system or pension fund
7subject to this Section. The changes made to this Section by
8Public Act 98-596 are a clarification of existing law and are
9intended to be retroactive to January 1, 2011 (the effective
10date of Public Act 96-889), notwithstanding the provisions of
11Section 1-103.1 of this Code.
12    This Section does not apply to a person who first becomes a
13noncovered employee under Article 14 on or after the
14implementation date of the plan created under Section 1-161
15for that Article, unless that person elects under subsection
16(b) of Section 1-161 to instead receive the benefits provided
17under this Section and the applicable provisions of that
18Article.
19    This Section does not apply to a person who first becomes a
20member or participant under Article 16 on or after the
21implementation date of the plan created under Section 1-161
22for that Article, unless that person elects under subsection
23(b) of Section 1-161 to instead receive the benefits provided
24under this Section and the applicable provisions of that
25Article.
26    This Section does not apply to a person who elects under

 

 

SB3979- 4 -LRB102 25048 RPS 34307 b

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

 

 

SB3979- 5 -LRB102 25048 RPS 34307 b

1    withdrawal".
2        (3) In Article 13, "average final salary".
3        (4) In Article 14, "final average compensation".
4        (5) In Article 17, "average salary".
5        (6) In Section 22-207, "wages or salary received by
6    him at the date of retirement or discharge".
7    A member of the Teachers' Retirement System of the State
8of Illinois who retires on or after June 1, 2021 and for whom
9the 2020-2021 school year is used in the calculation of the
10member's final average salary shall use the higher of the
11following for the purpose of determining the member's final
12average salary:
13        (A) the amount otherwise calculated under the next
14    first paragraph of this subsection; or
15        (B) an amount calculated by the Teachers' Retirement
16    System of the State of Illinois using the average of the
17    monthly (or annual) salary obtained by dividing the total
18    salary or earnings calculated under Article 16 applicable
19    to the member or participant during the 72 96 months (or 6
20    8 years) of service within the last 120 months (or 10
21    years) of service in which the total salary or earnings
22    calculated under the Article was the highest by the number
23    of months (or years) of service in that period.
24    For a member under Article 16, "final average salary"
25means the greater of: (i) the amount otherwise calculated
26under this subsection; or (ii) the average monthly (or annual)

 

 

SB3979- 6 -LRB102 25048 RPS 34307 b

1salary obtained by dividing the total salary calculated under
2Article 16 during the 72 consecutive months (or 6 consecutive
3years) of service within the last 120 months (or 10 years) of
4service in which the total salary calculated under the Article
5was the highest by the number of months (or years) of service
6in that period.
7    (b-5) Beginning on January 1, 2011, for all purposes under
8this Code (including without limitation the calculation of
9benefits and employee contributions), the annual earnings,
10salary, or wages (based on the plan year) of a member or
11participant to whom this Section applies shall not exceed
12$106,800; however, that amount shall annually thereafter be
13increased by the lesser of (i) 3% of that amount, including all
14previous adjustments, or (ii) one-half the annual unadjusted
15percentage increase (but not less than zero) in the consumer
16price index-u for the 12 months ending with the September
17preceding each November 1, including all previous adjustments;
18except that beginning in 2022 for purposes of Article 16 of
19this Code (including, without limitation, the calculation of
20benefits and employee contributions), that amount shall
21annually be increased by the greater of: (i) 3%; or (ii) the
22annual unadjusted percentage increase in the consumer price
23index-u for the 12 months ending with the September preceding
24each November 1, including all previous adjustments.
25    For the purposes of this Section, "consumer price index-u"
26means the index published by the Bureau of Labor Statistics of

 

 

SB3979- 7 -LRB102 25048 RPS 34307 b

1the United States Department of Labor that measures the
2average change in prices of goods and services purchased by
3all urban consumers, United States city average, all items,
41982-84 = 100. The new amount resulting from each annual
5adjustment shall be determined by the Public Pension Division
6of the Department of Insurance and made available to the
7boards of the retirement systems and pension funds by November
81 of each year.
9    (c) A member or participant is entitled to a retirement
10annuity upon written application if he or she has attained age
1167 (age 65, with respect to service under Article 12 that is
12subject to this Section, for a member or participant under
13Article 12 who first becomes a member or participant under
14Article 12 on or after January 1, 2022 or who makes the
15election under item (i) of subsection (d-15) of this Section)
16and has at least 10 years of service credit and is otherwise
17eligible under the requirements of the applicable Article.
18    A member or participant who has attained age 62 (age 60,
19with respect to service under Article 12 that is subject to
20this Section, for a member or participant under Article 12 who
21first becomes a member or participant under Article 12 on or
22after January 1, 2022 or who makes the election under item (i)
23of subsection (d-15) of this Section) and has at least 10 years
24of service credit and is otherwise eligible under the
25requirements of the applicable Article may elect to receive
26the lower retirement annuity provided in subsection (d) of

 

 

SB3979- 8 -LRB102 25048 RPS 34307 b

1this Section.
2    (c-5) A person who first becomes a member or a participant
3subject to this Section on or after July 6, 2017 (the effective
4date of Public Act 100-23), notwithstanding any other
5provision of this Code to the contrary, is entitled to a
6retirement annuity under Article 8 or Article 11 upon written
7application if he or she has attained age 65 and has at least
810 years of service credit and is otherwise eligible under the
9requirements of Article 8 or Article 11 of this Code,
10whichever is applicable.
11    (c-10) Notwithstanding subsection (c), a member under
12Article 16 is entitled to a retirement annuity if he or she has
13attained age 60; has at least 35 years of service credit, not
14including any service credit for unused and uncompensated
15accumulated sick leave days; and is otherwise eligible under
16the requirements of Article 16.
17    Notwithstanding subsection (c), a member under Article 16
18is entitled to a retirement annuity upon written application
19if he or she has attained age 62; has at least 10 years of
20service credit, not including service credit for unused and
21uncompensated accumulated sick leave days; and is otherwise
22eligible under the requirements of Article 16.
23    Notwithstanding subsection (c), a member under Article 16
24is entitled to a retirement annuity upon written application
25if he or she has attained age 64; has at least 10 years of
26service credit, including any service credit for unused and

 

 

SB3979- 9 -LRB102 25048 RPS 34307 b

1uncompensated sick leave days; and is otherwise eligible under
2the requirements of Article 16.
3    (d) The retirement annuity of a member or participant who
4is retiring after attaining age 62 (age 60, with respect to
5service under Article 12 that is subject to this Section, for a
6member or participant under Article 12 who first becomes a
7member or participant under Article 12 on or after January 1,
82022 or who makes the election under item (i) of subsection
9(d-15) of this Section) with at least 10 years of service
10credit shall be reduced by one-half of 1% for each full month
11that the member's age is under age 67 (age 65, with respect to
12service under Article 12 that is subject to this Section, for a
13member or participant under Article 12 who first becomes a
14member or participant under Article 12 on or after January 1,
152022 or who makes the election under item (i) of subsection
16(d-15) of this Section). This subsection does not apply to a
17person who meets the requirements under subsection (c-10).
18    (d-5) The retirement annuity payable under Article 8 or
19Article 11 to an eligible person subject to subsection (c-5)
20of this Section who is retiring at age 60 with at least 10
21years of service credit shall be reduced by one-half of 1% for
22each full month that the member's age is under age 65.
23    (d-10) Each person who first became a member or
24participant under Article 8 or Article 11 of this Code on or
25after January 1, 2011 and prior to July 6, 2017 (the effective
26date of Public Act 100-23) this amendatory Act of the 100th

 

 

SB3979- 10 -LRB102 25048 RPS 34307 b

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

 

 

SB3979- 11 -LRB102 25048 RPS 34307 b

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

 

 

SB3979- 12 -LRB102 25048 RPS 34307 b

1Section, for a member or participant under Article 12 who
2first becomes a member or participant under Article 12 on or
3after January 1, 2022 or who makes the election under item (i)
4of subsection (d-15); and beginning on July 6, 2017 (the
5effective date of Public Act 100-23) this amendatory Act of
6the 100th General Assembly, age 65 with respect to service
7under Article 8 or Article 11 for eligible persons who: (i) are
8subject to subsection (c-5) of this Section; or (ii) made the
9election under item (i) of subsection (d-10) of this Section)
10or the first anniversary of the annuity start date, whichever
11is later. Except for retirement annuities under Article 16,
12each Each annual increase shall be calculated at 3% or
13one-half the annual unadjusted percentage increase (but not
14less than zero) in the consumer price index-u for the 12 months
15ending with the September preceding each November 1, whichever
16is less, of the originally granted retirement annuity. If the
17annual unadjusted percentage change in the consumer price
18index-u for the 12 months ending with the September preceding
19each November 1 is zero or there is a decrease, then the
20annuity shall not be increased.
21    For retirement annuities under Article 16, each annual
22increase shall be calculated at 3% or one-half the annual
23unadjusted percentage increase in the consumer price index-u
24for the 12 months ending with the September preceding each
25November 1, whichever is greater, of the originally granted
26retirement annuity.

 

 

SB3979- 13 -LRB102 25048 RPS 34307 b

1    For the purposes of Section 1-103.1 of this Code, the
2changes made to this Section by this amendatory Act of the
3102nd General Assembly are applicable without regard to
4whether the employee was in active service on or after the
5effective date of this amendatory Act of the 102nd General
6Assembly.
7    For the purposes of Section 1-103.1 of this Code, the
8changes made to this Section by Public Act 102-263 this
9amendatory Act of the 102nd General Assembly are applicable
10without regard to whether the employee was in active service
11on or after August 6, 2021 (the effective date of Public Act
12102-263) this amendatory Act of the 102nd General Assembly.
13    For the purposes of Section 1-103.1 of this Code, the
14changes made to this Section by Public Act 100-23 this
15amendatory Act of the 100th General Assembly are applicable
16without regard to whether the employee was in active service
17on or after July 6, 2017 (the effective date of Public Act
18100-23) this amendatory Act of the 100th General Assembly.
19    (f) The initial survivor's or widow's annuity of an
20otherwise eligible survivor or widow of a retired member or
21participant who first became a member or participant on or
22after January 1, 2011 shall be in the amount of 66 2/3% of the
23retired member's or participant's retirement annuity at the
24date of death. In the case of the death of a member or
25participant who has not retired and who first became a member
26or participant on or after January 1, 2011, eligibility for a

 

 

SB3979- 14 -LRB102 25048 RPS 34307 b

1survivor's or widow's annuity shall be determined by the
2applicable Article of this Code. The initial benefit shall be
366 2/3% of the earned annuity without a reduction due to age. A
4child's annuity of an otherwise eligible child shall be in the
5amount prescribed under each Article if applicable. Any
6survivor's or widow's annuity shall be increased (1) on each
7January 1 occurring on or after the commencement of the
8annuity if the deceased member died while receiving a
9retirement annuity or (2) in other cases, on each January 1
10occurring after the first anniversary of the commencement of
11the annuity. Each annual increase shall be calculated at 3% or
12one-half the annual unadjusted percentage increase (but not
13less than zero) in the consumer price index-u for the 12 months
14ending with the September preceding each November 1, whichever
15is less, of the originally granted survivor's annuity. If the
16annual unadjusted percentage change in the consumer price
17index-u for the 12 months ending with the September preceding
18each November 1 is zero or there is a decrease, then the
19annuity shall not be increased.
20    (g) The benefits in Section 14-110 apply only if the
21person is a State policeman, a fire fighter in the fire
22protection service of a department, a conservation police
23officer, an investigator for the Secretary of State, an arson
24investigator, a Commerce Commission police officer,
25investigator for the Department of Revenue or the Illinois
26Gaming Board, a security employee of the Department of

 

 

SB3979- 15 -LRB102 25048 RPS 34307 b

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

 

 

SB3979- 16 -LRB102 25048 RPS 34307 b

1system or pension fund subject to this Section on or after
2January 1, 2012 and is receiving a retirement annuity or
3retirement pension under that system or fund and accepts on a
4contractual basis a position to provide services to a
5governmental entity from which he or she has retired, then
6that person's annuity or retirement pension earned as an
7active employee of the employer shall be suspended during that
8contractual service. A person receiving an annuity or
9retirement pension under this Code shall notify the pension
10fund or retirement system from which he or she is receiving an
11annuity or retirement pension, as well as his or her
12contractual employer, of his or her retirement status before
13accepting contractual employment. A person who fails to submit
14such notification shall be guilty of a Class A misdemeanor and
15required to pay a fine of $1,000. Upon termination of that
16contractual employment, the person's retirement annuity or
17retirement pension payments shall resume and, if appropriate,
18be recalculated under the applicable provisions of this Code.
19    (i) (Blank).
20    (j) In the case of a conflict between the provisions of
21this Section and any other provision of this Code, the
22provisions of this Section shall control.
23(Source: P.A. 101-610, eff. 1-1-20; 102-16, eff. 6-17-21;
24102-210, eff. 1-1-22; 102-263, eff. 8-6-21; revised 9-28-21.)
 
25    (40 ILCS 5/7-114)  (from Ch. 108 1/2, par. 7-114)

 

 

SB3979- 17 -LRB102 25048 RPS 34307 b

1    Sec. 7-114. Earnings. "Earnings":
2    (a) An amount to be determined by the board, equal to the
3sum of:
4        1. The total amount of money paid to an employee for
5    personal services or official duties as an employee
6    (except those employed as independent contractors) paid
7    out of the general fund, or out of any special funds
8    controlled by the municipality, or by any instrumentality
9    thereof, or participating instrumentality, including
10    compensation, fees, allowances (but not including amounts
11    associated with a vehicle allowance payable to an employee
12    who first becomes a participating employee on or after the
13    effective date of this amendatory Act of the 100th General
14    Assembly), or other emolument paid for official duties
15    (but not including automobile maintenance, travel expense,
16    or reimbursements for expenditures incurred in the
17    performance of duties) and, for fee offices, the fees or
18    earnings of the offices to the extent such fees are paid
19    out of funds controlled by the municipality, or
20    instrumentality or participating instrumentality; and
21        2. The money value, as determined by rules prescribed
22    by the governing body of the municipality, or
23    instrumentality thereof, of any board, lodging, fuel,
24    laundry, and other allowances provided an employee in lieu
25    of money.
26    (b) For purposes of determining benefits payable under

 

 

SB3979- 18 -LRB102 25048 RPS 34307 b

1this fund payments to a person who is engaged in an
2independently established trade, occupation, profession or
3business and who is paid for his service on a basis other than
4a monthly or other regular salary, are not earnings.
5    (c) If a disabled participating employee is eligible to
6receive Workers' Compensation for an accidental injury and the
7participating municipality or instrumentality which employed
8the participating employee when injured continues to pay the
9participating employee regular salary or other compensation or
10pays the employee an amount in excess of the Workers'
11Compensation amount, then earnings shall be deemed to be the
12total payments, including an amount equal to the Workers'
13Compensation payments. These payments shall be subject to
14employee contributions and allocated as if paid to the
15participating employee when the regular payroll amounts would
16have been paid if the participating employee had continued
17working, and creditable service shall be awarded for this
18period.
19    (d) If an elected official who is a participating employee
20becomes disabled but does not resign and is not removed from
21office, then earnings shall include all salary payments made
22for the remainder of that term of office and the official shall
23be awarded creditable service for the term of office.
24    (e) If a participating employee is paid pursuant to "An
25Act to provide for the continuation of compensation for law
26enforcement officers, correctional officers and firemen who

 

 

SB3979- 19 -LRB102 25048 RPS 34307 b

1suffer disabling injury in the line of duty", approved
2September 6, 1973, as amended, the payments shall be deemed
3earnings, and the participating employee shall be awarded
4creditable service for this period.
5    (f) Additional compensation received by a person while
6serving as a supervisor of assessments, assessor, deputy
7assessor or member of a board of review from the State of
8Illinois pursuant to Section 4-10 or 4-15 of the Property Tax
9Code shall not be earnings for purposes of this Article and
10shall not be included in the contribution formula or
11calculation of benefits for such person pursuant to this
12Article.
13    (g) Notwithstanding any other provision of this Article,
14calendar year earnings for Tier 2 regular employees to whom
15this Section applies shall not exceed the amount determined by
16the Public Pension Division of the Department of Insurance as
17required in this subsection; however, that amount shall
18annually thereafter be increased by the lesser of (i) 3% of
19that amount, including all previous adjustments, or (ii)
20one-half the annual unadjusted percentage increase (but not
21less than zero) in the consumer price index-u for the 12 months
22ending with the September preceding each November 1, including
23all previous adjustments; except that beginning in 2022, for
24Tier 2 regular employees who are employees of an educational
25employer, that amount shall annually be increased by the
26greater of: (i) 3%; or (ii) the annual unadjusted percentage

 

 

SB3979- 20 -LRB102 25048 RPS 34307 b

1increase in the consumer price index-u for the 12 months
2ending with the September preceding each November 1, including
3all previous adjustments.
4    For the purposes of this Section, "consumer price index-u"
5means the index published by the Bureau of Labor Statistics of
6the United States Department of Labor that measures the
7average change in prices of goods and services purchased by
8all urban consumers, United States city average, all items,
91982-84 = 100. The new amount resulting from each annual
10adjustment shall be determined by the Public Pension Division
11of the Department of Insurance and made available to the Fund
12by November 1 of each year.
13    For the purposes of Section 1-103.1 of this Code, the
14changes made to this Section, Section 7-141, and Section 7-142
15by this amendatory Act of the 102nd General Assembly are
16applicable without regard to whether the Tier 2 regular
17employee was in active service on or after the effective date
18of this amendatory Act of the 102nd General Assembly.
19(Source: P.A. 102-210, eff. 1-1-22.)
 
20    (40 ILCS 5/7-116)  (from Ch. 108 1/2, par. 7-116)
21    Sec. 7-116. "Final rate of earnings":
22    (a) For retirement and survivor annuities, the monthly
23earnings obtained by dividing the total earnings received by
24the employee during the period of either (1) for Tier 1 regular
25employees, the 48 consecutive months of service within the

 

 

SB3979- 21 -LRB102 25048 RPS 34307 b

1last 120 months of service in which his total earnings were the
2highest, (2) for Tier 2 regular employees who are not
3employees of an educational employer, the 96 consecutive
4months of service within the last 120 months of service in
5which his total earnings were the highest, (3) for Tier 2
6regular employees who are employees of an educational
7employer, the 72 consecutive months of service within the last
8120 months of service in which total earnings were the
9highest, or (4) (3) the employee's total period of service, by
10the number of months of service in such period.
11    (b) For death benefits, the higher of the rate determined
12under paragraph (a) of this Section or total earnings received
13in the last 12 months of service divided by twelve. If the
14deceased employee has less than 12 months of service, the
15monthly final rate shall be the monthly rate of pay the
16employee was receiving when he began service.
17    (c) For disability benefits, the total earnings of a
18participating employee in the last 12 calendar months of
19service prior to the date he becomes disabled divided by 12.
20    (d) In computing the final rate of earnings: (1) the
21earnings rate for all periods of prior service shall be
22considered equal to the average earnings rate for the last 3
23calendar years of prior service for which creditable service
24is received under Section 7-139 or, if there is less than 3
25years of creditable prior service, the average for the total
26prior service period for which creditable service is received

 

 

SB3979- 22 -LRB102 25048 RPS 34307 b

1under Section 7-139; (2) for out of state service and
2authorized leave, the earnings rate shall be the rate upon
3which service credits are granted; (3) periods of military
4leave shall not be considered; (4) the earnings rate for all
5periods of disability shall be considered equal to the rate of
6earnings upon which the employee's disability benefits are
7computed for such periods; (5) the earnings to be considered
8for each of the final three months of the final earnings period
9for persons who first became participants before January 1,
102012 and the earnings to be considered for each of the final 24
11months for participants who first become participants on or
12after January 1, 2012 shall not exceed 125% of the highest
13earnings of any other month in the final earnings period; and
14(6) the annual amount of final rate of earnings shall be the
15monthly amount multiplied by the number of months of service
16normally required by the position in a year.
17(Source: P.A. 102-210, eff. 1-1-22.)
 
18    (40 ILCS 5/7-141)  (from Ch. 108 1/2, par. 7-141)
19    Sec. 7-141. Retirement annuities; conditions. Retirement
20annuities shall be payable as hereinafter set forth:
21    (a) A participating employee who, regardless of cause, is
22separated from the service of all participating municipalities
23and instrumentalities thereof and participating
24instrumentalities shall be entitled to a retirement annuity
25provided:

 

 

SB3979- 23 -LRB102 25048 RPS 34307 b

1        1. He is at least age 55 if he is a Tier 1 regular
2    employee; , he is age 62 if he is a Tier 2 regular
3    employee; he is age 60 if he has at least 35 years of
4    creditable service (not including any service for unused
5    and uncompensated sick leave), is a Tier 2 regular
6    employee, and is an employee of an educational employer; ,
7    or, in the case of a person who is eligible to have his
8    annuity calculated under Section 7-142.1, he is at least
9    age 50;
10        2. He is not entitled to receive earnings for
11    employment in a position requiring him, or entitling him
12    to elect, to be a participating employee;
13        3. The amount of his annuity, before the application
14    of paragraph (b) of Section 7-142 is at least $10 per
15    month;
16        4. If he first became a participating employee after
17    December 31, 1961 and is a Tier 1 regular employee, he has
18    at least 8 years of service, or, if he is a Tier 2 regular
19    member, he has at least 10 years of service. This service
20    requirement shall not apply to any participating employee,
21    regardless of participation date, if the General Assembly
22    terminates the Fund.
23    (b) Retirement annuities shall be payable:
24        1. As provided in Section 7-119;
25        2. Except as provided in item 3, upon receipt by the
26    fund of a written application. The effective date may be

 

 

SB3979- 24 -LRB102 25048 RPS 34307 b

1    not more than one year prior to the date of the receipt by
2    the fund of the application;
3        3. Upon attainment of the required age of distribution
4    under Section 401(a)(9) of the Internal Revenue Code of
5    1986, as amended, if the member (i) is no longer in
6    service, and (ii) is otherwise entitled to an annuity
7    under this Article;
8        4. To the beneficiary of the deceased annuitant for
9    the unpaid amount accrued to date of death, if any.
10(Source: P.A. 102-210, Article 5, Section 5-5, eff. 7-30-21;
11102-210, Article 10, Section 10-5, eff. 1-1-22; revised
129-28-21.)
 
13    (40 ILCS 5/7-142)  (from Ch. 108 1/2, par. 7-142)
14    Sec. 7-142. Retirement annuities - Amount.
15    (a) The amount of a retirement annuity shall be the sum of
16the following, determined in accordance with the actuarial
17tables in effect at the time of the grant of the annuity:
18        1. For Tier 1 regular employees with 8 or more years of
19    service or for Tier 2 regular employees, an annuity
20    computed pursuant to subparagraphs a or b of this
21    subparagraph 1, whichever is the higher, and for employees
22    with less than 8 or 10 years of service, respectively, the
23    annuity computed pursuant to subparagraph a:
24            a. The monthly annuity which can be provided from
25        the total accumulated normal, municipality and prior

 

 

SB3979- 25 -LRB102 25048 RPS 34307 b

1        service credits, as of the attained age of the
2        employee on the date the annuity begins provided that
3        such annuity shall not exceed 75% of the final rate of
4        earnings of the employee.
5            b. (i) The monthly annuity amount determined as
6        follows by multiplying (a) 1 2/3% for annuitants with
7        not more than 15 years or (b) 1 2/3% for the first 15
8        years and 2% for each year in excess of 15 years for
9        annuitants with more than 15 years by the number of
10        years plus fractional years, prorated on a basis of
11        months, of creditable service and multiply the product
12        thereof by the employee's final rate of earnings.
13            (ii) For the sole purpose of computing the formula
14        (and not for the purposes of the limitations
15        hereinafter stated) $125 shall be considered the final
16        rate of earnings in all cases where the final rate of
17        earnings is less than such amount.
18            (iii) The monthly annuity computed in accordance
19        with this subparagraph b, shall not exceed an amount
20        equal to 75% of the final rate of earnings.
21            (iv) For employees who have less than 35 years of
22        service, the annuity computed in accordance with this
23        subparagraph b (as reduced by application of
24        subparagraph (iii) above) shall be reduced by 0.25%
25        thereof (0.5% if service was terminated before January
26        1, 1988 or if the employee is a Tier 2 regular

 

 

SB3979- 26 -LRB102 25048 RPS 34307 b

1        employee) for each month or fraction thereof (1) that
2        the employee's age is less than 60 years for Tier 1
3        regular employees, (2) that the employee's age is less
4        than 67 years for Tier 2 regular employees, or (3) if
5        the employee has at least 30 years of service credit,
6        that the employee's service credit is less than 35
7        years, whichever is less, on the date the annuity
8        begins. The following persons are not subject to this
9        subparagraph (iv): a Tier 2 regular employee who is an
10        employee of an educational employer, has attained age
11        60, and has at least 35 years of creditable service,
12        not including any creditable service for accumulated
13        unused sick leave; a Tier 2 regular employee who is an
14        employee of an educational employer, has attained age
15        62, and has at least 10 years of creditable service,
16        not including any creditable service for accumulated
17        unused sick leave; and a Tier 2 regular employee who is
18        an employee of an educational employer, has attained
19        age 64, and has at least 10 years of creditable
20        service, including any creditable service for
21        accumulated unused sick leave.
22        2. The annuity which can be provided from the total
23    accumulated additional credits as of the attained age of
24    the employee on the date the annuity begins.
25    (b) If payment of an annuity begins prior to the earliest
26age at which the employee will become eligible for an old age

 

 

SB3979- 27 -LRB102 25048 RPS 34307 b

1insurance benefit under the Federal Social Security Act, he
2may elect that the annuity payments from this fund shall
3exceed those payable after his attaining such age by an
4amount, computed as determined by rules of the Board, but not
5in excess of his estimated Social Security Benefit, determined
6as of the effective date of the annuity, provided that in no
7case shall the total annuity payments made by this fund exceed
8in actuarial value the annuity which would have been payable
9had no such election been made.
10    (c) Beginning January 1, 1984 and each January 1
11thereafter, the retirement annuity of a Tier 1 regular
12employee shall be increased by 3% each year, not compounded.
13This increase shall be computed from the effective date of the
14retirement annuity, the first increase being 0.25% of the
15monthly amount times the number of months from the effective
16date to January 1. This increase shall not be applicable to
17annuitants who are not in service on or after September 8,
181971.
19    A retirement annuity of a Tier 2 regular employee shall
20receive annual increases on the January 1 occurring either on
21or after the attainment of age 67 or the first anniversary of
22the annuity start date, whichever is later. Each annual
23increase shall be calculated at the lesser of 3% or one-half
24the annual unadjusted percentage increase (but not less than
25zero) in the consumer price index-u for the 12 months ending
26with the September preceding each November 1 of the originally

 

 

SB3979- 28 -LRB102 25048 RPS 34307 b

1granted retirement annuity; except that each annual increase
2to the retirement annuity of a Tier 2 regular employee who was
3an employee of an educational employer shall be calculated at
4the greater of 3% or one-half the annual unadjusted percentage
5increase (but not less than zero) in the consumer price
6index-u for the 12 months ending with the September preceding
7each November 1 of the originally granted retirement annuity.
8If the annual unadjusted percentage change in the consumer
9price index-u for the 12 months ending with the September
10preceding each November 1 is zero or there is a decrease, then
11the annuity shall not be increased.
12    (d) Any elected county officer who was entitled to receive
13a stipend from the State on or after July 1, 2009 and on or
14before June 30, 2010 may establish earnings credit for the
15amount of stipend not received, if the elected county official
16applies in writing to the fund within 6 months after the
17effective date of this amendatory Act of the 96th General
18Assembly and pays to the fund an amount equal to (i) employee
19contributions on the amount of stipend not received, (ii)
20employer contributions determined by the Board equal to the
21employer's normal cost of the benefit on the amount of stipend
22not received, plus (iii) interest on items (i) and (ii) at the
23actuarially assumed rate.
24(Source: P.A. 102-210, eff. 1-1-22.)
 
25    (40 ILCS 5/15-111)  (from Ch. 108 1/2, par. 15-111)

 

 

SB3979- 29 -LRB102 25048 RPS 34307 b

1    Sec. 15-111. Earnings.
2    (a) "Earnings": Subject to Section 15-111.5, an amount
3paid for personal services equal to the sum of the basic
4compensation plus extra compensation for summer teaching,
5overtime or other extra service. For periods for which an
6employee receives service credit under subsection (c) of
7Section 15-113.1 or Section 15-113.2, earnings are equal to
8the basic compensation on which contributions are paid by the
9employee during such periods. Compensation for employment
10which is irregular, intermittent and temporary shall not be
11considered earnings, unless the participant is also receiving
12earnings from the employer as an employee under Section
1315-107.
14    With respect to transition pay paid by the University of
15Illinois to a person who was a participating employee employed
16in the fire department of the University of Illinois's
17Champaign-Urbana campus immediately prior to the elimination
18of that fire department:
19        (1) "Earnings" includes transition pay paid to the
20    employee on or after the effective date of this amendatory
21    Act of the 91st General Assembly.
22        (2) "Earnings" includes transition pay paid to the
23    employee before the effective date of this amendatory Act
24    of the 91st General Assembly only if (i) employee
25    contributions under Section 15-157 have been withheld from
26    that transition pay or (ii) the employee pays to the

 

 

SB3979- 30 -LRB102 25048 RPS 34307 b

1    System before January 1, 2001 an amount representing
2    employee contributions under Section 15-157 on that
3    transition pay. Employee contributions under item (ii) may
4    be paid in a lump sum, by withholding from additional
5    transition pay accruing before January 1, 2001, or in any
6    other manner approved by the System. Upon payment of the
7    employee contributions on transition pay, the
8    corresponding employer contributions become an obligation
9    of the State.
10    (b) For a Tier 2 member, the annual earnings shall not
11exceed $106,800; however, that amount shall annually
12thereafter be increased by the lesser of (i) 3% of that amount,
13including all previous adjustments, or (ii) one half the
14annual unadjusted percentage increase (but not less than zero)
15in the consumer price index-u for the 12 months ending with the
16September preceding each November 1, including all previous
17adjustments; except that beginning in 2022, that amount shall
18annually be increased by the greater of: (i) 3% of that amount;
19or (ii) the annual unadjusted percentage increase in the
20consumer price index-u for the 12 months ending with the
21September preceding each November 1, including all previous
22adjustments.
23    For the purposes of this Section, "consumer price index u"
24means the index published by the Bureau of Labor Statistics of
25the United States Department of Labor that measures the
26average change in prices of goods and services purchased by

 

 

SB3979- 31 -LRB102 25048 RPS 34307 b

1all urban consumers, United States city average, all items,
21982-84 = 100. The new amount resulting from each annual
3adjustment shall be determined by the Public Pension Division
4of the Department of Insurance and made available to the
5boards of the retirement systems and pension funds by November
61 of each year.
7    For the purposes of Section 1-103.1 of this Code, the
8changes made to this Section, Section 15-135, and Section
915-136 by this amendatory Act of the 102nd General Assembly
10are applicable without regard to whether the employee was in
11active service on or after the effective date of this
12amendatory Act of the 102nd General Assembly.
13    (c) With each submission of payroll information in the
14manner prescribed by the System, the employer shall certify
15that the payroll information is correct and complies with all
16applicable State and federal laws.
17(Source: P.A. 98-92, eff. 7-16-13; 99-897, eff. 1-1-17.)
 
18    (40 ILCS 5/15-112)  (from Ch. 108 1/2, par. 15-112)
19    Sec. 15-112. Final rate of earnings. "Final rate of
20earnings":
21    (a) This subsection (a) applies only to a Tier 1 member.
22    For an employee who is paid on an hourly basis or who
23receives an annual salary in installments during 12 months of
24each academic year, the average annual earnings during the 48
25consecutive calendar month period ending with the last day of

 

 

SB3979- 32 -LRB102 25048 RPS 34307 b

1final termination of employment or the 4 consecutive academic
2years of service in which the employee's earnings were the
3highest, whichever is greater. For any other employee, the
4average annual earnings during the 4 consecutive academic
5years of service in which his or her earnings were the highest.
6For an employee with less than 48 months or 4 consecutive
7academic years of service, the average earnings during his or
8her entire period of service. The earnings of an employee with
9more than 36 months of service under item (a) of Section
1015-113.1 prior to the date of becoming a participant are, for
11such period, considered equal to the average earnings during
12the last 36 months of such service.
13    (b) This subsection (b) applies to a Tier 2 member.
14    For an employee who is paid on an hourly basis or who
15receives an annual salary in installments during 12 months of
16each academic year, the average annual earnings obtained by
17dividing by 6 8 the total earnings of the employee during the
1872 96 consecutive months in which the total earnings were the
19highest within the last 120 months prior to termination.
20    For any other employee, the average annual earnings during
21the 6 8 consecutive academic years within the 10 years prior to
22termination in which the employee's earnings were the highest.
23For an employee with less than 72 96 consecutive months or 6 8
24consecutive academic years of service, whichever is necessary,
25the average earnings during his or her entire period of
26service.

 

 

SB3979- 33 -LRB102 25048 RPS 34307 b

1    (c) For an employee on leave of absence with pay, or on
2leave of absence without pay who makes contributions during
3such leave, earnings are assumed to be equal to the basic
4compensation on the date the leave began.
5    (d) For an employee on disability leave, earnings are
6assumed to be equal to the basic compensation on the date
7disability occurs or the average earnings during the 24 months
8immediately preceding the month in which disability occurs,
9whichever is greater.
10    (e) For a Tier 1 member who retires on or after the
11effective date of this amendatory Act of 1997 with at least 20
12years of service as a firefighter or police officer under this
13Article, the final rate of earnings shall be the annual rate of
14earnings received by the participant on his or her last day as
15a firefighter or police officer under this Article, if that is
16greater than the final rate of earnings as calculated under
17the other provisions of this Section.
18    (f) If a Tier 1 member is an employee for at least 6 months
19during the academic year in which his or her employment is
20terminated, the annual final rate of earnings shall be 25% of
21the sum of (1) the annual basic compensation for that year, and
22(2) the amount earned during the 36 months immediately
23preceding that year, if this is greater than the final rate of
24earnings as calculated under the other provisions of this
25Section.
26    (g) In the determination of the final rate of earnings for

 

 

SB3979- 34 -LRB102 25048 RPS 34307 b

1an employee, that part of an employee's earnings for any
2academic year beginning after June 30, 1997, which exceeds the
3employee's earnings with that employer for the preceding year
4by more than 20 percent shall be excluded; in the event that an
5employee has more than one employer this limitation shall be
6calculated separately for the earnings with each employer. In
7making such calculation, only the basic compensation of
8employees shall be considered, without regard to vacation or
9overtime or to contracts for summer employment.
10    (h) The following are not considered as earnings in
11determining final rate of earnings: (1) severance or
12separation pay, (2) retirement pay, (3) payment for unused
13sick leave, and (4) payments from an employer for the period
14used in determining final rate of earnings for any purpose
15other than (i) services rendered, (ii) leave of absence or
16vacation granted during that period, and (iii) vacation of up
17to 56 work days allowed upon termination of employment; except
18that, if the benefit has been collectively bargained between
19the employer and the recognized collective bargaining agent
20pursuant to the Illinois Educational Labor Relations Act,
21payment received during a period of up to 2 academic years for
22unused sick leave may be considered as earnings in accordance
23with the applicable collective bargaining agreement, subject
24to the 20% increase limitation of this Section. Any unused
25sick leave considered as earnings under this Section shall not
26be taken into account in calculating service credit under

 

 

SB3979- 35 -LRB102 25048 RPS 34307 b

1Section 15-113.4.
2    (i) Intermittent periods of service shall be considered as
3consecutive in determining final rate of earnings.
4(Source: P.A. 98-92, eff. 7-16-13; 99-450, eff. 8-24-15.)
 
5    (40 ILCS 5/15-135)  (from Ch. 108 1/2, par. 15-135)
6    Sec. 15-135. Retirement annuities; conditions.
7    (a) This subsection (a) applies only to a Tier 1 member. A
8participant who retires in one of the following specified
9years with the specified amount of service is entitled to a
10retirement annuity at any age under the retirement program
11applicable to the participant:
12        35 years if retirement is in 1997 or before;
13        34 years if retirement is in 1998;
14        33 years if retirement is in 1999;
15        32 years if retirement is in 2000;
16        31 years if retirement is in 2001;
17        30 years if retirement is in 2002 or later.
18    A participant with 8 or more years of service after
19September 1, 1941, is entitled to a retirement annuity on or
20after attainment of age 55.
21    A participant with at least 5 but less than 8 years of
22service after September 1, 1941, is entitled to a retirement
23annuity on or after attainment of age 62.
24    A participant who has at least 25 years of service in this
25system as a police officer or firefighter is entitled to a

 

 

SB3979- 36 -LRB102 25048 RPS 34307 b

1retirement annuity on or after the attainment of age 50, if
2Rule 4 of Section 15-136 is applicable to the participant.
3    (a-5) A Tier 2 member is entitled to a retirement annuity
4upon written application if he or she has attained age 60; has
5at least 35 years of service credit, not including any service
6credit for unused and uncompensated accumulated sick leave
7days; and is otherwise eligible under the requirements of this
8Article.
9    A Tier 2 member is entitled to a retirement annuity upon
10written application if he or she has attained age 62; has at
11least 10 years of service credit, not including service credit
12for unused and uncompensated accumulated sick leave days; and
13is otherwise eligible under the requirements of this Article.
14    A Tier 2 member is entitled to a retirement annuity upon
15written application if he or she has attained age 64; has at
16least 10 years of service credit, including any service credit
17for unused and uncompensated sick leave days; and is otherwise
18eligible under the requirements of this Article.
19A Tier 2 member is entitled to a retirement annuity upon
20written application if he or she has attained age 67 and has at
21least 10 years of service credit and is otherwise eligible
22under the requirements of this Article. A Tier 2 member who has
23attained age 62 and has at least 10 years of service credit and
24is otherwise eligible under the requirements of this Article
25may elect to receive the lower retirement annuity provided in
26subsection (b-5) of Section 15-136 of this Article.

 

 

SB3979- 37 -LRB102 25048 RPS 34307 b

1    (a-10) A Tier 2 member who has at least 20 years of service
2in this system as a police officer or firefighter is entitled
3to a retirement annuity upon written application on or after
4the attainment of age 60 if Rule 4 of Section 15-136 is
5applicable to the participant. The changes made to this
6subsection by this amendatory Act of the 101st General
7Assembly apply retroactively to January 1, 2011.
8    (b) The annuity payment period shall begin on the date
9specified by the participant or the recipient of a disability
10retirement annuity submitting a written application. For a
11participant, the date on which the annuity payment period
12begins shall not be prior to termination of employment or more
13than one year before the application is received by the board;
14however, if the participant is not an employee of an employer
15participating in this System or in a participating system as
16defined in Article 20 of this Code on April 1 of the calendar
17year next following the calendar year in which the participant
18attains the age specified under Section 401(a)(9) of the
19Internal Revenue Code of 1986, as amended, the annuity payment
20period shall begin on that date regardless of whether an
21application has been filed. For a recipient of a disability
22retirement annuity, the date on which the annuity payment
23period begins shall not be prior to the discontinuation of the
24disability retirement annuity under Section 15-153.2.
25    (c) An annuity is not payable if the amount provided under
26Section 15-136 is less than $10 per month.

 

 

SB3979- 38 -LRB102 25048 RPS 34307 b

1(Source: P.A. 101-610, eff. 1-1-20; 102-210, eff. 7-30-21.)
 
2    (40 ILCS 5/15-136)  (from Ch. 108 1/2, par. 15-136)
3    Sec. 15-136. Retirement annuities - Amount. The provisions
4of this Section 15-136 apply only to those participants who
5are participating in the traditional benefit package or the
6portable benefit package and do not apply to participants who
7are participating in the self-managed plan.
8    (a) The amount of a participant's retirement annuity,
9expressed in the form of a single-life annuity, shall be
10determined by whichever of the following rules is applicable
11and provides the largest annuity:
12    Rule 1: The retirement annuity shall be 1.67% of final
13rate of earnings for each of the first 10 years of service,
141.90% for each of the next 10 years of service, 2.10% for each
15year of service in excess of 20 but not exceeding 30, and 2.30%
16for each year in excess of 30; or for persons who retire on or
17after January 1, 1998, 2.2% of the final rate of earnings for
18each year of service.
19    Rule 2: The retirement annuity shall be the sum of the
20following, determined from amounts credited to the participant
21in accordance with the actuarial tables and the effective rate
22of interest in effect at the time the retirement annuity
23begins:
24        (i) the normal annuity which can be provided on an
25    actuarially equivalent basis, by the accumulated normal

 

 

SB3979- 39 -LRB102 25048 RPS 34307 b

1    contributions as of the date the annuity begins;
2        (ii) an annuity from employer contributions of an
3    amount equal to that which can be provided on an
4    actuarially equivalent basis from the accumulated normal
5    contributions made by the participant under Section
6    15-113.6 and Section 15-113.7 plus 1.4 times all other
7    accumulated normal contributions made by the participant;
8    and
9        (iii) the annuity that can be provided on an
10    actuarially equivalent basis from the entire contribution
11    made by the participant under Section 15-113.3.
12    With respect to a police officer or firefighter who
13retires on or after August 14, 1998, the accumulated normal
14contributions taken into account under clauses (i) and (ii) of
15this Rule 2 shall include the additional normal contributions
16made by the police officer or firefighter under Section
1715-157(a).
18    The amount of a retirement annuity calculated under this
19Rule 2 shall be computed solely on the basis of the
20participant's accumulated normal contributions, as specified
21in this Rule and defined in Section 15-116. Neither an
22employee or employer contribution for early retirement under
23Section 15-136.2 nor any other employer contribution shall be
24used in the calculation of the amount of a retirement annuity
25under this Rule 2.
26    This amendatory Act of the 91st General Assembly is a

 

 

SB3979- 40 -LRB102 25048 RPS 34307 b

1clarification of existing law and applies to every participant
2and annuitant without regard to whether status as an employee
3terminates before the effective date of this amendatory Act.
4    This Rule 2 does not apply to a person who first becomes an
5employee under this Article on or after July 1, 2005.
6    Rule 3: The retirement annuity of a participant who is
7employed at least one-half time during the period on which his
8or her final rate of earnings is based, shall be equal to the
9participant's years of service not to exceed 30, multiplied by
10(1) $96 if the participant's final rate of earnings is less
11than $3,500, (2) $108 if the final rate of earnings is at least
12$3,500 but less than $4,500, (3) $120 if the final rate of
13earnings is at least $4,500 but less than $5,500, (4) $132 if
14the final rate of earnings is at least $5,500 but less than
15$6,500, (5) $144 if the final rate of earnings is at least
16$6,500 but less than $7,500, (6) $156 if the final rate of
17earnings is at least $7,500 but less than $8,500, (7) $168 if
18the final rate of earnings is at least $8,500 but less than
19$9,500, and (8) $180 if the final rate of earnings is $9,500 or
20more, except that the annuity for those persons having made an
21election under Section 15-154(a-1) shall be calculated and
22payable under the portable retirement benefit program pursuant
23to the provisions of Section 15-136.4.
24    Rule 4: A participant who is at least age 50 and has 25 or
25more years of service as a police officer or firefighter, and a
26participant who is age 55 or over and has at least 20 but less

 

 

SB3979- 41 -LRB102 25048 RPS 34307 b

1than 25 years of service as a police officer or firefighter,
2shall be entitled to a retirement annuity of 2 1/4% of the
3final rate of earnings for each of the first 10 years of
4service as a police officer or firefighter, 2 1/2% for each of
5the next 10 years of service as a police officer or
6firefighter, and 2 3/4% for each year of service as a police
7officer or firefighter in excess of 20. The retirement annuity
8for all other service shall be computed under Rule 1. A Tier 2
9member is eligible for a retirement annuity calculated under
10Rule 4 only if that Tier 2 member meets the service
11requirements for that benefit calculation as prescribed under
12this Rule 4 in addition to the applicable age requirement
13under subsection (a-10) of Section 15-135.
14    For purposes of this Rule 4, a participant's service as a
15firefighter shall also include the following:
16        (i) service that is performed while the person is an
17    employee under subsection (h) of Section 15-107; and
18        (ii) in the case of an individual who was a
19    participating employee employed in the fire department of
20    the University of Illinois's Champaign-Urbana campus
21    immediately prior to the elimination of that fire
22    department and who immediately after the elimination of
23    that fire department transferred to another job with the
24    University of Illinois, service performed as an employee
25    of the University of Illinois in a position other than
26    police officer or firefighter, from the date of that

 

 

SB3979- 42 -LRB102 25048 RPS 34307 b

1    transfer until the employee's next termination of service
2    with the University of Illinois.
3    (b) For a Tier 1 member, the retirement annuity provided
4under Rules 1 and 3 above shall be reduced by 1/2 of 1% for
5each month the participant is under age 60 at the time of
6retirement. However, this reduction shall not apply in the
7following cases:
8        (1) For a disabled participant whose disability
9    benefits have been discontinued because he or she has
10    exhausted eligibility for disability benefits under clause
11    (6) of Section 15-152;
12        (2) For a participant who has at least the number of
13    years of service required to retire at any age under
14    subsection (a) of Section 15-135; or
15        (3) For that portion of a retirement annuity which has
16    been provided on account of service of the participant
17    during periods when he or she performed the duties of a
18    police officer or firefighter, if these duties were
19    performed for at least 5 years immediately preceding the
20    date the retirement annuity is to begin.
21    (b-5) (Blank). The retirement annuity of a Tier 2 member
22who is retiring under Rule 1 or 3 after attaining age 62 with
23at least 10 years of service credit shall be reduced by 1/2 of
241% for each full month that the member's age is under age 67.
25    (c) The maximum retirement annuity provided under Rules 1,
262, 4, and 5 shall be the lesser of (1) the annual limit of

 

 

SB3979- 43 -LRB102 25048 RPS 34307 b

1benefits as specified in Section 415 of the Internal Revenue
2Code of 1986, as such Section may be amended from time to time
3and as such benefit limits shall be adjusted by the
4Commissioner of Internal Revenue, and (2) 80% of final rate of
5earnings.
6    (d) A Tier 1 member whose status as an employee terminates
7after August 14, 1969 shall receive automatic increases in his
8or her retirement annuity as follows:
9    Effective January 1 immediately following the date the
10retirement annuity begins, the annuitant shall receive an
11increase in his or her monthly retirement annuity of 0.125% of
12the monthly retirement annuity provided under Rule 1, Rule 2,
13Rule 3, or Rule 4 contained in this Section, multiplied by the
14number of full months which elapsed from the date the
15retirement annuity payments began to January 1, 1972, plus
160.1667% of such annuity, multiplied by the number of full
17months which elapsed from January 1, 1972, or the date the
18retirement annuity payments began, whichever is later, to
19January 1, 1978, plus 0.25% of such annuity multiplied by the
20number of full months which elapsed from January 1, 1978, or
21the date the retirement annuity payments began, whichever is
22later, to the effective date of the increase.
23    The annuitant shall receive an increase in his or her
24monthly retirement annuity on each January 1 thereafter during
25the annuitant's life of 3% of the monthly annuity provided
26under Rule 1, Rule 2, Rule 3, or Rule 4 contained in this

 

 

SB3979- 44 -LRB102 25048 RPS 34307 b

1Section. The change made under this subsection by P.A. 81-970
2is effective January 1, 1980 and applies to each annuitant
3whose status as an employee terminates before or after that
4date.
5    Beginning January 1, 1990, all automatic annual increases
6payable under this Section shall be calculated as a percentage
7of the total annuity payable at the time of the increase,
8including all increases previously granted under this Article.
9    The change made in this subsection by P.A. 85-1008 is
10effective January 26, 1988, and is applicable without regard
11to whether status as an employee terminated before that date.
12    (d-5) A retirement annuity of a Tier 2 member shall
13receive annual increases on the January 1 occurring either on
14or after the attainment of age 67 or the first anniversary of
15the annuity start date, whichever is later. Each annual
16increase shall be calculated at 3% or one half the annual
17unadjusted percentage increase (but not less than zero) in the
18consumer price index-u for the 12 months ending with the
19September preceding each November 1, whichever is greater
20less, of the originally granted retirement annuity. If the
21annual unadjusted percentage change in the consumer price
22index-u for the 12 months ending with the September preceding
23each November 1 is zero or there is a decrease, then the
24annuity shall not be increased.
25    (e) If, on January 1, 1987, or the date the retirement
26annuity payment period begins, whichever is later, the sum of

 

 

SB3979- 45 -LRB102 25048 RPS 34307 b

1the retirement annuity provided under Rule 1 or Rule 2 of this
2Section and the automatic annual increases provided under the
3preceding subsection or Section 15-136.1, amounts to less than
4the retirement annuity which would be provided by Rule 3, the
5retirement annuity shall be increased as of January 1, 1987,
6or the date the retirement annuity payment period begins,
7whichever is later, to the amount which would be provided by
8Rule 3 of this Section. Such increased amount shall be
9considered as the retirement annuity in determining benefits
10provided under other Sections of this Article. This paragraph
11applies without regard to whether status as an employee
12terminated before the effective date of this amendatory Act of
131987, provided that the annuitant was employed at least
14one-half time during the period on which the final rate of
15earnings was based.
16    (f) A participant is entitled to such additional annuity
17as may be provided on an actuarially equivalent basis, by any
18accumulated additional contributions to his or her credit.
19However, the additional contributions made by the participant
20toward the automatic increases in annuity provided under this
21Section shall not be taken into account in determining the
22amount of such additional annuity.
23    (g) If, (1) by law, a function of a governmental unit, as
24defined by Section 20-107 of this Code, is transferred in
25whole or in part to an employer, and (2) a participant
26transfers employment from such governmental unit to such

 

 

SB3979- 46 -LRB102 25048 RPS 34307 b

1employer within 6 months after the transfer of the function,
2and (3) the sum of (A) the annuity payable to the participant
3under Rule 1, 2, or 3 of this Section (B) all proportional
4annuities payable to the participant by all other retirement
5systems covered by Article 20, and (C) the initial primary
6insurance amount to which the participant is entitled under
7the Social Security Act, is less than the retirement annuity
8which would have been payable if all of the participant's
9pension credits validated under Section 20-109 had been
10validated under this system, a supplemental annuity equal to
11the difference in such amounts shall be payable to the
12participant.
13    (h) On January 1, 1981, an annuitant who was receiving a
14retirement annuity on or before January 1, 1971 shall have his
15or her retirement annuity then being paid increased $1 per
16month for each year of creditable service. On January 1, 1982,
17an annuitant whose retirement annuity began on or before
18January 1, 1977, shall have his or her retirement annuity then
19being paid increased $1 per month for each year of creditable
20service.
21    (i) On January 1, 1987, any annuitant whose retirement
22annuity began on or before January 1, 1977, shall have the
23monthly retirement annuity increased by an amount equal to 8˘
24per year of creditable service times the number of years that
25have elapsed since the annuity began.
26    (j) The changes made to this Section by this amendatory

 

 

SB3979- 47 -LRB102 25048 RPS 34307 b

1Act of the 101st General Assembly apply retroactively to
2January 1, 2011.
3(Source: P.A. 101-610, eff. 1-1-20.)
 
4    (40 ILCS 5/15-198)
5    Sec. 15-198. Application and expiration of new benefit
6increases.
7    (a) As used in this Section, "new benefit increase" means
8an increase in the amount of any benefit provided under this
9Article, or an expansion of the conditions of eligibility for
10any benefit under this Article, that results from an amendment
11to this Code that takes effect after June 1, 2005 (the
12effective date of Public Act 94-4). "New benefit increase",
13however, does not include any benefit increase resulting from
14the changes made to Article 1 or this Article by Public Act
15100-23, Public Act 100-587, Public Act 100-769, Public Act
16101-10, Public Act 101-610, Public Act 102-16, or this
17amendatory Act of the 102nd General Assembly or this
18amendatory Act of the 102nd General Assembly.
19    (b) Notwithstanding any other provision of this Code or
20any subsequent amendment to this Code, every new benefit
21increase is subject to this Section and shall be deemed to be
22granted only in conformance with and contingent upon
23compliance with the provisions of this Section.
24    (c) The Public Act enacting a new benefit increase must
25identify and provide for payment to the System of additional

 

 

SB3979- 48 -LRB102 25048 RPS 34307 b

1funding at least sufficient to fund the resulting annual
2increase in cost to the System as it accrues.
3    Every new benefit increase is contingent upon the General
4Assembly providing the additional funding required under this
5subsection. The Commission on Government Forecasting and
6Accountability shall analyze whether adequate additional
7funding has been provided for the new benefit increase and
8shall report its analysis to the Public Pension Division of
9the Department of Insurance. A new benefit increase created by
10a Public Act that does not include the additional funding
11required under this subsection is null and void. If the Public
12Pension Division determines that the additional funding
13provided for a new benefit increase under this subsection is
14or has become inadequate, it may so certify to the Governor and
15the State Comptroller and, in the absence of corrective action
16by the General Assembly, the new benefit increase shall expire
17at the end of the fiscal year in which the certification is
18made.
19    (d) Every new benefit increase shall expire 5 years after
20its effective date or on such earlier date as may be specified
21in the language enacting the new benefit increase or provided
22under subsection (c). This does not prevent the General
23Assembly from extending or re-creating a new benefit increase
24by law.
25    (e) Except as otherwise provided in the language creating
26the new benefit increase, a new benefit increase that expires

 

 

SB3979- 49 -LRB102 25048 RPS 34307 b

1under this Section continues to apply to persons who applied
2and qualified for the affected benefit while the new benefit
3increase was in effect and to the affected beneficiaries and
4alternate payees of such persons, but does not apply to any
5other person, including, without limitation, a person who
6continues in service after the expiration date and did not
7apply and qualify for the affected benefit while the new
8benefit increase was in effect.
9(Source: P.A. 101-10, eff. 6-5-19; 101-81, eff. 7-12-19;
10101-610, eff. 1-1-20; 102-16, eff. 6-17-21.)
 
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
15which satisfactory evidence is supplied and all contributions
16have been 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

 

 

SB3979- 50 -LRB102 25048 RPS 34307 b

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
9    as a recreation worker for the Illinois Department of
10    Public Safety, for a period not exceeding the lesser of
11    2/5 of the total creditable service of the member or 10
12    years. The maximum service of 10 years which is allowable
13    under this paragraph shall be reduced by the service
14    credit which is validated by other retirement systems
15    under paragraph (i) of Section 15-113 and paragraph 1 of
16    Section 17-133. Credit granted under this paragraph may
17    not be used in determination of a retirement annuity or
18    disability benefits unless the member has at least 5 years
19    of 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
25    purposes of this Article, the first service rendered in
26    point of time shall be considered. The changes to this

 

 

SB3979- 51 -LRB102 25048 RPS 34307 b

1    subdivision (b)(2) made by Public Act 86-272 shall apply
2    not only to persons who on or after its effective date
3    (August 23, 1989) are in service as a teacher under the
4    System, but also to persons whose status as such a teacher
5    terminated prior to such effective date, whether or not
6    such person is an annuitant on that date.
7        (3) Any periods immediately following teaching
8    service, under this System or under Article 17, (or
9    immediately following service prior to February 1, 1951 as
10    a recreation worker for the Illinois Department of Public
11    Safety) spent in active service with the military forces
12    of the United States; periods spent in educational
13    programs that prepare for return to teaching sponsored by
14    the federal government following such active military
15    service; if a teacher returns to teaching service within
16    one calendar year after discharge or after the completion
17    of the educational program, a further period, not
18    exceeding one calendar year, between time spent in
19    military service or in such educational programs and the
20    return to employment as a teacher under this System; and a
21    period of up to 2 years of active military service not
22    immediately following employment as a teacher.
23        The changes to this Section and Section 16-128
24    relating to military service made by P.A. 87-794 shall
25    apply not only to persons who on or after its effective
26    date are in service as a teacher under the System, but also

 

 

SB3979- 52 -LRB102 25048 RPS 34307 b

1    to persons whose status as a teacher terminated prior to
2    that date, whether or not the person is an annuitant on
3    that date. In the case of an annuitant who applies for
4    credit allowable under this Section for a period of
5    military service that did not immediately follow
6    employment, and who has made the required contributions
7    for such credit, the annuity shall be recalculated to
8    include the additional service credit, with the increase
9    taking effect on the date the System received written
10    notification of the annuitant's intent to purchase the
11    credit, if payment of all the required contributions is
12    made within 60 days of such notice, or else on the first
13    annuity payment date following the date of payment of the
14    required contributions. In calculating the automatic
15    annual increase for an annuity that has been recalculated
16    under this Section, the increase attributable to the
17    additional service allowable under P.A. 87-794 shall be
18    included in the calculation of automatic annual increases
19    accruing after the effective date of the recalculation.
20        Credit for military service shall be determined as
21    follows: if entry occurs during the months of July,
22    August, or September and the member was a teacher at the
23    end of the immediately preceding school term, credit shall
24    be granted from July 1 of the year in which he or she
25    entered service; if entry occurs during the school term
26    and the teacher was in teaching service at the beginning

 

 

SB3979- 53 -LRB102 25048 RPS 34307 b

1    of the school term, credit shall be granted from July 1 of
2    such year. In all other cases where credit for military
3    service is allowed, credit shall be granted from the date
4    of entry into the service.
5        The total period of military service for which credit
6    is granted shall not exceed 5 years for any member unless
7    the service: (A) is validated before July 1, 1964, and (B)
8    does not extend beyond July 1, 1963. Credit for military
9    service shall be granted under this Section only if not
10    more than 5 years of the military service for which credit
11    is granted under this Section is used by the member to
12    qualify for a military retirement allotment from any
13    branch of the armed forces of the United States. The
14    changes to this subdivision (b)(3) made by Public Act
15    86-272 shall apply not only to persons who on or after its
16    effective date (August 23, 1989) are in service as a
17    teacher under the System, but also to persons whose status
18    as such a teacher terminated prior to such effective date,
19    whether or not such person is an annuitant on that date.
20        (4) Any periods served as a member of the General
21    Assembly.
22        (5)(i) Any periods for which a teacher, as defined in
23    Section 16-106, is granted a leave of absence, provided he
24    or she returns to teaching service creditable under this
25    System or the State Universities Retirement System
26    following the leave; (ii) periods during which a teacher

 

 

SB3979- 54 -LRB102 25048 RPS 34307 b

1    is involuntarily laid off from teaching, provided he or
2    she returns to teaching following the lay-off; (iii)
3    periods prior to July 1, 1983 during which a teacher
4    ceased covered employment due to pregnancy, provided that
5    the teacher returned to teaching service creditable under
6    this System or the State Universities Retirement System
7    following the pregnancy and submits evidence satisfactory
8    to the Board documenting that the employment ceased due to
9    pregnancy; and (iv) periods prior to July 1, 1983 during
10    which a teacher ceased covered employment for the purpose
11    of adopting an infant under 3 years of age or caring for a
12    newly adopted infant under 3 years of age, provided that
13    the teacher returned to teaching service creditable under
14    this System or the State Universities Retirement System
15    following the adoption and submits evidence satisfactory
16    to the Board documenting that the employment ceased for
17    the purpose of adopting an infant under 3 years of age or
18    caring for a newly adopted infant under 3 years of age.
19    However, total credit under this paragraph (5) may not
20    exceed 3 years.
21        Any qualified member or annuitant may apply for credit
22    under item (iii) or (iv) of this paragraph (5) without
23    regard to whether service was terminated before the
24    effective date of this amendatory Act of 1997. In the case
25    of an annuitant who establishes credit under item (iii) or
26    (iv), the annuity shall be recalculated to include the

 

 

SB3979- 55 -LRB102 25048 RPS 34307 b

1    additional service credit. The increase in annuity shall
2    take effect on the date the System receives written
3    notification of the annuitant's intent to purchase the
4    credit, if the required evidence is submitted and the
5    required contribution paid within 60 days of that
6    notification, otherwise on the first annuity payment date
7    following the System's receipt of the required evidence
8    and contribution. The increase in an annuity recalculated
9    under this provision shall be included in the calculation
10    of automatic annual increases in the annuity accruing
11    after the effective date of the recalculation.
12        Optional credit may be purchased under this subsection
13    (b)(5) for periods during which a teacher has been granted
14    a leave of absence pursuant to Section 24-13 of the School
15    Code. A teacher whose service under this Article
16    terminated prior to the effective date of P.A. 86-1488
17    shall be eligible to purchase such optional credit. If a
18    teacher who purchases this optional credit is already
19    receiving a retirement annuity under this Article, the
20    annuity shall be recalculated as if the annuitant had
21    applied for the leave of absence credit at the time of
22    retirement. The difference between the entitled annuity
23    and the actual annuity shall be credited to the purchase
24    of the optional credit. The remainder of the purchase cost
25    of the optional credit shall be paid on or before April 1,
26    1992.

 

 

SB3979- 56 -LRB102 25048 RPS 34307 b

1        The change in this paragraph made by Public Act 86-273
2    shall be applicable to teachers who retire after June 1,
3    1989, as well as to teachers who are in service on that
4    date.
5        (6) Any days of unused and uncompensated accumulated
6    sick leave earned by a teacher. The service credit granted
7    under this paragraph shall be the ratio of the number of
8    unused and uncompensated accumulated sick leave days to
9    170 days, subject to a maximum of 2 years of service
10    credit. Prior to the member's retirement, each former
11    employer shall certify to the System the number of unused
12    and uncompensated accumulated sick leave days credited to
13    the member at the time of termination of service. The
14    period of unused sick leave shall not be considered in
15    determining the effective date of retirement. A member is
16    not required to make contributions in order to obtain
17    service credit for unused sick leave.
18        Credit for sick leave shall, at retirement, be granted
19    by the System for any retiring regional or assistant
20    regional superintendent of schools at the rate of 6 days
21    per year of creditable service or portion thereof
22    established while serving as such superintendent or
23    assistant superintendent.
24        (7) Periods prior to February 1, 1987 served as an
25    employee of the Illinois Mathematics and Science Academy
26    for which credit has not been terminated under Section

 

 

SB3979- 57 -LRB102 25048 RPS 34307 b

1    15-113.9 of this Code.
2        (8) Service as a substitute teacher for work performed
3    prior to July 1, 1990.
4        (9) Service as a part-time teacher for work performed
5    prior to July 1, 1990.
6        (10) Up to 2 years of employment with Southern
7    Illinois University - Carbondale from September 1, 1959 to
8    August 31, 1961, or with Governors State University from
9    September 1, 1972 to August 31, 1974, for which the
10    teacher has no credit under Article 15. To receive credit
11    under this item (10), a teacher must apply in writing to
12    the Board and pay the required contributions before May 1,
13    1993 and have at least 12 years of service credit under
14    this Article.
15        (11) Periods of service as a student teacher as
16    described in Section 24-8.5 of the School Code for which
17    the student teacher received a salary.
18    (b-1) A member may establish optional credit for up to 2
19years of service as a teacher or administrator employed by a
20private school recognized by the Illinois State Board of
21Education, provided that the teacher (i) was certified under
22the law governing the certification of teachers at the time
23the service was rendered, (ii) applies in writing on or before
24June 30, 2023, (iii) supplies satisfactory evidence of the
25employment, (iv) completes at least 10 years of contributing
26service as a teacher as defined in Section 16-106, and (v) pays

 

 

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1the contribution required in subsection (d-5) of Section
216-128. The member may apply for credit under this subsection
3and pay the required contribution before completing the 10
4years of contributing service required under item (iv), but
5the credit may not be used until the item (iv) contributing
6service requirement has been met.
7    (c) The service credits specified in this Section shall be
8granted only if: (1) such service credits are not used for
9credit in any other statutory tax-supported public employee
10retirement system other than the federal Social Security
11program; and (2) the member makes the required contributions
12as specified in Section 16-128. Except as provided in
13subsection (b-1) of this Section, the service credit shall be
14effective as of the date the required contributions are
15completed.
16    Any service credits granted under this Section shall
17terminate upon cessation of membership for any cause.
18    Credit may not be granted under this Section covering any
19period for which an age retirement or disability retirement
20allowance has been paid.
21    Credit may not be granted under this Section for service
22as an employee of an entity that provides substitute teaching
23services under Section 2-3.173 of the School Code and is not a
24school district.
25(Source: P.A. 102-525, eff. 8-20-21.)
 

 

 

SB3979- 59 -LRB102 25048 RPS 34307 b

1    (40 ILCS 5/16-203)
2    Sec. 16-203. Application and expiration of new benefit
3increases.
4    (a) As used in this Section, "new benefit increase" means
5an increase in the amount of any benefit provided under this
6Article, or an expansion of the conditions of eligibility for
7any benefit under this Article, that results from an amendment
8to this Code that takes effect after June 1, 2005 (the
9effective date of Public Act 94-4). "New benefit increase",
10however, does not include any benefit increase resulting from
11the changes made to Article 1 or this Article by Public Act
1295-910, Public Act 100-23, Public Act 100-587, Public Act
13100-743, Public Act 100-769, Public Act 101-10, or Public Act
14101-49, or Public Act 102-16, or this amendatory Act of the
15102nd General Assembly this amendatory Act of the 102nd
16General Assembly.
17    (b) Notwithstanding any other provision of this Code or
18any subsequent amendment to this Code, every new benefit
19increase is subject to this Section and shall be deemed to be
20granted only in conformance with and contingent upon
21compliance with the provisions of this Section.
22    (c) The Public Act enacting a new benefit increase must
23identify and provide for payment to the System of additional
24funding at least sufficient to fund the resulting annual
25increase in cost to the System as it accrues.
26    Every new benefit increase is contingent upon the General

 

 

SB3979- 60 -LRB102 25048 RPS 34307 b

1Assembly providing the additional funding required under this
2subsection. The Commission on Government Forecasting and
3Accountability shall analyze whether adequate additional
4funding has been provided for the new benefit increase and
5shall report its analysis to the Public Pension Division of
6the Department of Insurance. A new benefit increase created by
7a Public Act that does not include the additional funding
8required under this subsection is null and void. If the Public
9Pension Division determines that the additional funding
10provided for a new benefit increase under this subsection is
11or has become inadequate, it may so certify to the Governor and
12the State Comptroller and, in the absence of corrective action
13by the General Assembly, the new benefit increase shall expire
14at the end of the fiscal year in which the certification is
15made.
16    (d) Every new benefit increase shall expire 5 years after
17its effective date or on such earlier date as may be specified
18in the language enacting the new benefit increase or provided
19under subsection (c). This does not prevent the General
20Assembly from extending or re-creating a new benefit increase
21by law.
22    (e) Except as otherwise provided in the language creating
23the new benefit increase, a new benefit increase that expires
24under this Section continues to apply to persons who applied
25and qualified for the affected benefit while the new benefit
26increase was in effect and to the affected beneficiaries and

 

 

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1alternate payees of such persons, but does not apply to any
2other person, including, without limitation, a person who
3continues in service after the expiration date and did not
4apply and qualify for the affected benefit while the new
5benefit increase was in effect.
6(Source: P.A. 101-10, eff. 6-5-19; 101-49, eff. 7-12-19;
7101-81, eff. 7-12-19; 102-16, eff. 6-17-21; 102-558, eff.
88-20-21; revised 10-15-21.)
 
9    Section 15. The School Code is amended by changing Section
1024-8.5 as follows:
 
11    (105 ILCS 5/24-8.5)
12    Sec. 24-8.5. Student teacher; salary.
13    (a) Except as otherwise provided in subsection (b), each
14Each school district may provide a salary to a student teacher
15employed by the district. A school district may fix the amount
16of salary to pay a student teacher under this subsection (a)
17Section.
18    (b) For the 2022-2023 and 2023-2024 school years, from
19funds appropriated by the General Assembly for this purpose,
20each school district shall provide a salary to a student
21teacher employed by the district. The salary paid to a student
22teacher shall be the amount specified in Section 24-8 of the
23School Code.
24(Source: P.A. 101-220, eff. 8-7-19.)
 

 

 

SB3979- 62 -LRB102 25048 RPS 34307 b

1    Section 20. The Illinois Educational Labor Relations Act
2is amended by changing Section 2 as follows:
 
3    (115 ILCS 5/2)  (from Ch. 48, par. 1702)
4    Sec. 2. Definitions. As used in this Act:
5    (a) "Educational employer" or "employer" means the
6governing body of a public school district, including the
7governing body of a charter school established under Article
827A of the School Code or of a contract school or contract
9turnaround school established under paragraph 30 of Section
1034-18 of the School Code, combination of public school
11districts, including the governing body of joint agreements of
12any type formed by 2 or more school districts, public
13community college district or State college or university, a
14subcontractor of instructional services of a school district
15(other than a school district organized under Article 34 of
16the School Code), combination of school districts, charter
17school established under Article 27A of the School Code, or
18contract school or contract turnaround school established
19under paragraph 30 of Section 34-18 of the School Code, an
20Independent Authority created under Section 2-3.25f-5 of the
21School Code, and any State agency whose major function is
22providing educational services. "Educational employer" or
23"employer" does not include (1) a Financial Oversight Panel
24created pursuant to Section 1A-8 of the School Code due to a

 

 

SB3979- 63 -LRB102 25048 RPS 34307 b

1district violating a financial plan or (2) an approved
2nonpublic special education facility that contracts with a
3school district or combination of school districts to provide
4special education services pursuant to Section 14-7.02 of the
5School Code, but does include a School Finance Authority
6created under Article 1E or 1F of the School Code and a
7Financial Oversight Panel created under Article 1B or 1H of
8the School Code. The change made by this amendatory Act of the
996th General Assembly to this paragraph (a) to make clear that
10the governing body of a charter school is an "educational
11employer" is declaratory of existing law.
12    (b) "Educational employee" or "employee" means any
13individual, excluding supervisors, managerial, confidential,
14short term employees, student, and part-time academic
15employees of community colleges employed full or part time by
16an educational employer, but shall not include elected
17officials and appointees of the Governor with the advice and
18consent of the Senate, firefighters as defined by subsection
19(g-1) of Section 3 of the Illinois Public Labor Relations Act,
20and peace officers employed by a State university. For the
21purposes of this Act, part-time academic employees of
22community colleges shall be defined as those employees who
23provide less than 3 credit hours of instruction per academic
24semester. In this subsection (b), the term "student" does not
25include student teachers, graduate students who are research
26assistants primarily performing duties that involve research,

 

 

SB3979- 64 -LRB102 25048 RPS 34307 b

1graduate assistants primarily performing duties that are
2pre-professional, graduate students who are teaching
3assistants primarily performing duties that involve the
4delivery and support of instruction, or any other graduate
5assistants.
6    (c) "Employee organization" or "labor organization" means
7an organization of any kind in which membership includes
8educational employees, and which exists for the purpose, in
9whole or in part, of dealing with employers concerning
10grievances, employee-employer disputes, wages, rates of pay,
11hours of employment, or conditions of work, but shall not
12include any organization which practices discrimination in
13membership because of race, color, creed, age, gender,
14national origin or political affiliation.
15    (d) "Exclusive representative" means the labor
16organization which has been designated by the Illinois
17Educational Labor Relations Board as the representative of the
18majority of educational employees in an appropriate unit, or
19recognized by an educational employer prior to January 1, 1984
20as the exclusive representative of the employees in an
21appropriate unit or, after January 1, 1984, recognized by an
22employer upon evidence that the employee organization has been
23designated as the exclusive representative by a majority of
24the employees in an appropriate unit.
25    (e) "Board" means the Illinois Educational Labor Relations
26Board.

 

 

SB3979- 65 -LRB102 25048 RPS 34307 b

1    (f) "Regional Superintendent" means the regional
2superintendent of schools provided for in Articles 3 and 3A of
3The School Code.
4    (g) "Supervisor" means any individual having authority in
5the interests of the employer to hire, transfer, suspend, lay
6off, recall, promote, discharge, reward or discipline other
7employees within the appropriate bargaining unit and adjust
8their grievances, or to effectively recommend such action if
9the exercise of such authority is not of a merely routine or
10clerical nature but requires the use of independent judgment.
11The term "supervisor" includes only those individuals who
12devote a preponderance of their employment time to such
13exercising authority.
14    (h) "Unfair labor practice" or "unfair practice" means any
15practice prohibited by Section 14 of this Act.
16    (i) "Person" includes an individual, educational employee,
17educational employer, legal representative, or employee
18organization.
19    (j) "Wages" means salaries or other forms of compensation
20for services rendered.
21    (k) "Professional employee" means, in the case of a public
22community college, State college or university, State agency
23whose major function is providing educational services, the
24Illinois School for the Deaf, and the Illinois School for the
25Visually Impaired, (1) any employee engaged in work (i)
26predominantly intellectual and varied in character as opposed

 

 

SB3979- 66 -LRB102 25048 RPS 34307 b

1to routine mental, manual, mechanical, or physical work; (ii)
2involving the consistent exercise of discretion and judgment
3in its performance; (iii) of such character that the output
4produced or the result accomplished cannot be standardized in
5relation to a given period of time; and (iv) requiring
6knowledge of an advanced type in a field of science or learning
7customarily acquired by a prolonged course of specialized
8intellectual instruction and study in an institution of higher
9learning or a hospital, as distinguished from a general
10academic education or from an apprenticeship or from training
11in the performance of routine mental, manual, or physical
12processes; or (2) any employee, who (i) has completed the
13courses of specialized intellectual instruction and study
14described in clause (iv) of paragraph (1) of this subsection,
15and (ii) is performing related work under the supervision of a
16professional person to qualify himself or herself to become a
17professional as defined in paragraph (l).
18    (l) "Professional employee" means, in the case of any
19public school district, or combination of school districts
20pursuant to joint agreement, any employee who has a
21certificate issued under Article 21 or Section 34-83 of the
22School Code, as now or hereafter amended.
23    (m) "Unit" or "bargaining unit" means any group of
24employees for which an exclusive representative is selected.
25    (n) "Confidential employee" means an employee, who (i) in
26the regular course of his or her duties, assists and acts in a

 

 

SB3979- 67 -LRB102 25048 RPS 34307 b

1confidential capacity to persons who formulate, determine and
2effectuate management policies with regard to labor relations
3or who (ii) in the regular course of his or her duties has
4access to information relating to the effectuation or review
5of the employer's collective bargaining policies.
6    (o) "Managerial employee" means an individual who is
7engaged predominantly in executive and management functions
8and is charged with the responsibility of directing the
9effectuation of such management policies and practices.
10    (p) "Craft employee" means a skilled journeyman, craft
11person, and his or her apprentice or helper.
12    (q) "Short-term employee" is an employee who is employed
13for less than 2 consecutive calendar quarters during a
14calendar year and who does not have a reasonable expectation
15that he or she will be rehired by the same employer for the
16same service in a subsequent calendar year. Nothing in this
17subsection shall affect the employee status of individuals who
18were covered by a collective bargaining agreement on the
19effective date of this amendatory Act of 1991.
20(Source: P.A. 101-380, eff. 1-1-20.)
 
21    Section 90. The State Mandates Act is amended by adding
22Section 8.46 as follows:
 
23    (30 ILCS 805/8.46 new)
24    Sec. 8.46. Exempt mandate. Notwithstanding Sections 6 and

 

 

SB3979- 68 -LRB102 25048 RPS 34307 b

18 of this Act, no reimbursement by the State is required for
2the implementation of any mandate created by this amendatory
3Act of the 102nd General Assembly.
 
4    Section 99. Effective date. This Act takes effect upon
5becoming law.

 

 

SB3979- 69 -LRB102 25048 RPS 34307 b

1 INDEX
2 Statutes amended in order of appearance
3    35 ILCS 5/232 new
4    40 ILCS 5/1-160
5    40 ILCS 5/7-114from Ch. 108 1/2, par. 7-114
6    40 ILCS 5/7-116from Ch. 108 1/2, par. 7-116
7    40 ILCS 5/7-141from Ch. 108 1/2, par. 7-141
8    40 ILCS 5/7-142from Ch. 108 1/2, par. 7-142
9    40 ILCS 5/15-111from Ch. 108 1/2, par. 15-111
10    40 ILCS 5/15-112from Ch. 108 1/2, par. 15-112
11    40 ILCS 5/15-135from Ch. 108 1/2, par. 15-135
12    40 ILCS 5/15-136from Ch. 108 1/2, par. 15-136
13    40 ILCS 5/15-198
14    40 ILCS 5/16-127from Ch. 108 1/2, par. 16-127
15    40 ILCS 5/16-203
16    105 ILCS 5/24-8.5
17    115 ILCS 5/2from Ch. 48, par. 1702
18    30 ILCS 805/8.46 new