Illinois General Assembly - Full Text of HB2352
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Full Text of HB2352  103rd General Assembly

HB2352sam003 103RD GENERAL ASSEMBLY

Sen. Robert F. Martwick

Filed: 5/16/2023

 

 


 

 


 
10300HB2352sam003LRB103 27717 RPS 62053 a

1
AMENDMENT TO HOUSE BILL 2352

2    AMENDMENT NO. ______. Amend House Bill 2352, AS AMENDED,
3by replacing everything after the enacting clause with the
4following:
 
5    "Section 5. The Illinois Pension Code is amended by
6changing Sections 1-160, 9-169, 9-179.1, 9-184, 9-185, 9-195,
7and 9-199 and by adding Sections 9-169.1, 9-169.2, and 9-240
8as follows:
 
9    (40 ILCS 5/1-160)
10    (Text of Section from P.A. 102-719)
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,

 

 

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17, 15, or 18 of this Code, notwithstanding any other provision
2of this Code to the contrary, but do not apply to any
3self-managed plan established under this Code or to any
4participant of the retirement plan established under Section
522-101; except that this Section applies to a person who
6elected to establish alternative credits by electing in
7writing after January 1, 2011, but before August 8, 2011,
8under Section 7-145.1 of this Code. Notwithstanding anything
9to the contrary in this Section, for purposes of this Section,
10a person who is a Tier 1 regular employee as defined in Section
117-109.4 of this Code or who participated in a retirement
12system under Article 15 prior to January 1, 2011 shall be
13deemed a person who first became a member or participant prior
14to January 1, 2011 under any retirement system or pension fund
15subject to this Section. The changes made to this Section by
16Public Act 98-596 are a clarification of existing law and are
17intended to be retroactive to January 1, 2011 (the effective
18date of Public Act 96-889), notwithstanding the provisions of
19Section 1-103.1 of this Code.
20    This Section does not apply to a person who first becomes a
21noncovered employee under Article 14 on or after the
22implementation date of the plan created under Section 1-161
23for that Article, unless that person elects under subsection
24(b) of Section 1-161 to instead receive the benefits provided
25under this Section and the applicable provisions of that
26Article.

 

 

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

 

 

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

 

 

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1    to the member or participant during the 96 months (or 8
2    years) of service within the last 120 months (or 10 years)
3    of service in which the total salary or earnings
4    calculated under the Article was the highest by the number
5    of months (or years) of service in that period.
6    (b-5) Beginning on January 1, 2011, for all purposes under
7this Code (including without limitation the calculation of
8benefits and employee contributions), the annual earnings,
9salary, or wages (based on the plan year) of a member or
10participant to whom this Section applies shall not exceed
11$106,800; however, that amount shall annually thereafter be
12increased by the lesser of (i) 3% of that amount, including all
13previous adjustments, or (ii) one-half the annual unadjusted
14percentage increase (but not less than zero) in the consumer
15price index-u for the 12 months ending with the September
16preceding each November 1, including all previous adjustments.
17    For the purposes of this Section, "consumer price index-u"
18means the index published by the Bureau of Labor Statistics of
19the United States Department of Labor that measures the
20average change in prices of goods and services purchased by
21all urban consumers, United States city average, all items,
221982-84 = 100. The new amount resulting from each annual
23adjustment shall be determined by the Public Pension Division
24of the Department of Insurance and made available to the
25boards of the retirement systems and pension funds by November
261 of each year.

 

 

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1    (b-10) Beginning on January 1, 2024, for all purposes
2under this Code (including, without limitation, the
3calculation of benefits and employee contributions), the
4annual earnings, salary, or wages (based on the plan year) of a
5member or participant under Article 9 to whom this Section
6applies shall include an annual earnings, salary, or wage cap
7that tracks the Social Security wage base. Maximum annual
8earnings, wages, or salary shall be the annual contribution
9and benefit base established for the applicable year by the
10Commissioner of the Social Security Administration under the
11federal Social Security Act.
12    However, in no event shall the annual earnings, salary, or
13wages for the purposes of this Article and Article 9 exceed any
14limitation imposed on annual earnings, salary, or wages under
15Section 1-117. Under no circumstances shall the maximum amount
16of annual earnings, salary, or wages be greater than the
17amount set forth in this subsection (b-10) as a result of
18reciprocal service or any provisions regarding reciprocal
19services, nor shall the Fund under Article 9 be required to pay
20any refund as a result of the application of this maximum
21annual earnings, salary, and wage cap.
22    Nothing in this subsection (b-10) shall cause or otherwise
23result in any retroactive adjustment of any employee
24contributions. Nothing in this subsection (b-10) shall cause
25or otherwise result in any retroactive adjustment of
26disability or other payments made between January 1, 2011 and

 

 

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1January 1, 2024.
2    (c) A member or participant is entitled to a retirement
3annuity upon written application if he or she has attained age
467 (age 65, with respect to service under Article 12 that is
5subject to this Section, for a member or participant under
6Article 12 who first becomes a member or participant under
7Article 12 on or after January 1, 2022 or who makes the
8election under item (i) of subsection (d-15) of this Section)
9and has at least 10 years of service credit and is otherwise
10eligible under the requirements of the applicable Article.
11    A member or participant who has attained age 62 (age 60,
12with respect to service under Article 12 that is subject to
13this Section, for a member or participant under Article 12 who
14first becomes a member or participant under Article 12 on or
15after January 1, 2022 or who makes the election under item (i)
16of subsection (d-15) of this Section) and has at least 10 years
17of service credit and is otherwise eligible under the
18requirements of the applicable Article may elect to receive
19the lower retirement annuity provided in subsection (d) of
20this Section.
21    (c-5) A person who first becomes a member or a participant
22subject to this Section on or after July 6, 2017 (the effective
23date of Public Act 100-23), notwithstanding any other
24provision of this Code to the contrary, is entitled to a
25retirement annuity under Article 8 or Article 11 upon written
26application if he or she has attained age 65 and has at least

 

 

10300HB2352sam003- 8 -LRB103 27717 RPS 62053 a

110 years of service credit and is otherwise eligible under the
2requirements of Article 8 or Article 11 of this Code,
3whichever is applicable.
4    (d) The retirement annuity of a member or participant who
5is retiring after attaining age 62 (age 60, with respect to
6service under Article 12 that is subject to this Section, for a
7member or participant under Article 12 who first becomes a
8member or participant under Article 12 on or after January 1,
92022 or who makes the election under item (i) of subsection
10(d-15) of this Section) with at least 10 years of service
11credit shall be reduced by one-half of 1% for each full month
12that the member's age is under age 67 (age 65, with respect to
13service under Article 12 that is subject to this Section, for a
14member or participant under Article 12 who first becomes a
15member or participant under Article 12 on or after January 1,
162022 or who makes the election under item (i) of subsection
17(d-15) of this Section).
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) shall make an irrevocable election

 

 

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1either:
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

 

 

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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

 

 

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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), age 65 with respect to
6service under Article 8 or Article 11 for eligible persons
7who: (i) are subject to subsection (c-5) of this Section; or
8(ii) made the election under item (i) of subsection (d-10) of
9this Section) or the first anniversary of the annuity start
10date, whichever is later. Each annual increase shall be
11calculated at 3% or one-half the annual unadjusted percentage
12increase (but not less than zero) in the consumer price
13index-u for the 12 months ending with the September preceding
14each November 1, whichever is less, of the originally granted
15retirement annuity. If the annual unadjusted percentage change
16in the consumer price index-u for the 12 months ending with the
17September preceding each November 1 is zero or there is a
18decrease, then the annuity shall not be increased.
19    For the purposes of Section 1-103.1 of this Code, the
20changes made to this Section by Public Act 102-263 are
21applicable without regard to whether the employee was in
22active service on or after August 6, 2021 (the effective date
23of Public Act 102-263).
24    For the purposes of Section 1-103.1 of this Code, the
25changes made to this Section by Public Act 100-23 are
26applicable without regard to whether the employee was in

 

 

10300HB2352sam003- 12 -LRB103 27717 RPS 62053 a

1active service on or after July 6, 2017 (the effective date of
2Public Act 100-23).
3    (f) The initial survivor's or widow's annuity of an
4otherwise eligible survivor or widow of a retired member or
5participant who first became a member or participant on or
6after January 1, 2011 shall be in the amount of 66 2/3% of the
7retired member's or participant's retirement annuity at the
8date of death. In the case of the death of a member or
9participant who has not retired and who first became a member
10or participant on or after January 1, 2011, eligibility for a
11survivor's or widow's annuity shall be determined by the
12applicable Article of this Code. The initial benefit shall be
1366 2/3% of the earned annuity without a reduction due to age. A
14child's annuity of an otherwise eligible child shall be in the
15amount prescribed under each Article if applicable. Any
16survivor's or widow's annuity shall be increased (1) on each
17January 1 occurring on or after the commencement of the
18annuity if the deceased member died while receiving a
19retirement annuity or (2) in other cases, on each January 1
20occurring after the first anniversary of the commencement of
21the annuity. Each annual increase shall be calculated at 3% or
22one-half the annual unadjusted percentage increase (but not
23less than zero) in the consumer price index-u for the 12 months
24ending with the September preceding each November 1, whichever
25is less, of the originally granted survivor's annuity. If the
26annual unadjusted percentage change in the consumer price

 

 

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1index-u for the 12 months ending with the September preceding
2each November 1 is zero or there is a decrease, then the
3annuity shall not be increased.
4    (g) The benefits in Section 14-110 apply if the person is a
5fire fighter in the fire protection service of a department, a
6security employee of the Department of Corrections or the
7Department of Juvenile Justice, or a security employee of the
8Department of Innovation and Technology, as those terms are
9defined in subsection (b) and subsection (c) of Section
1014-110. A person who meets the requirements of this Section is
11entitled to an annuity calculated under the provisions of
12Section 14-110, in lieu of the regular or minimum retirement
13annuity, only if the person has withdrawn from service with
14not less than 20 years of eligible creditable service and has
15attained age 60, regardless of whether the attainment of age
1660 occurs while the person is still in service.
17    (g-5) The benefits in Section 14-110 apply if the person
18is a State policeman, investigator for the Secretary of State,
19conservation police officer, investigator for the Department
20of Revenue or the Illinois Gaming Board, investigator for the
21Office of the Attorney General, Commerce Commission police
22officer, or arson investigator, as those terms are defined in
23subsection (b) and subsection (c) of Section 14-110. A person
24who meets the requirements of this Section is entitled to an
25annuity calculated under the provisions of Section 14-110, in
26lieu of the regular or minimum retirement annuity, only if the

 

 

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1person has withdrawn from service with not less than 20 years
2of eligible creditable service and has attained age 55,
3regardless of whether the attainment of age 55 occurs while
4the person is still in service.
5    (h) If a person who first becomes a member or a participant
6of a retirement system or pension fund subject to this Section
7on or after January 1, 2011 is receiving a retirement annuity
8or retirement pension under that system or fund and becomes a
9member or participant under any other system or fund created
10by this Code and is employed on a full-time basis, except for
11those members or participants exempted from the provisions of
12this Section under subsection (a) of this Section, then the
13person's retirement annuity or retirement pension under that
14system or fund shall be suspended during that employment. Upon
15termination of that employment, the person's retirement
16annuity or retirement pension payments shall resume and be
17recalculated if recalculation is provided for under the
18applicable Article of this Code.
19    If a person who first becomes a member of a retirement
20system or pension fund subject to this Section on or after
21January 1, 2012 and is receiving a retirement annuity or
22retirement pension under that system or fund and accepts on a
23contractual basis a position to provide services to a
24governmental entity from which he or she has retired, then
25that person's annuity or retirement pension earned as an
26active employee of the employer shall be suspended during that

 

 

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1contractual service. A person receiving an annuity or
2retirement pension under this Code shall notify the pension
3fund or retirement system from which he or she is receiving an
4annuity or retirement pension, as well as his or her
5contractual employer, of his or her retirement status before
6accepting contractual employment. A person who fails to submit
7such notification shall be guilty of a Class A misdemeanor and
8required to pay a fine of $1,000. Upon termination of that
9contractual employment, the person's retirement annuity or
10retirement pension payments shall resume and, if appropriate,
11be recalculated under the applicable provisions of this Code.
12    (i) (Blank).
13    (j) In the case of a conflict between the provisions of
14this Section and any other provision of this Code, the
15provisions of this Section shall control.
16(Source: P.A. 101-610, eff. 1-1-20; 102-16, eff. 6-17-21;
17102-210, eff. 1-1-22; 102-263, eff. 8-6-21; 102-719, eff.
185-6-22.)
 
19    (Text of Section from P.A. 102-813)
20    Sec. 1-160. Provisions applicable to new hires.
21    (a) The provisions of this Section apply to a person who,
22on or after January 1, 2011, first becomes a member or a
23participant under any reciprocal retirement system or pension
24fund established under this Code, other than a retirement
25system or pension fund established under Article 2, 3, 4, 5, 6,

 

 

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17, 15, or 18 of this Code, notwithstanding any other provision
2of this Code to the contrary, but do not apply to any
3self-managed plan established under this Code or to any
4participant of the retirement plan established under Section
522-101; except that this Section applies to a person who
6elected to establish alternative credits by electing in
7writing after January 1, 2011, but before August 8, 2011,
8under Section 7-145.1 of this Code. Notwithstanding anything
9to the contrary in this Section, for purposes of this Section,
10a person who is a Tier 1 regular employee as defined in Section
117-109.4 of this Code or who participated in a retirement
12system under Article 15 prior to January 1, 2011 shall be
13deemed a person who first became a member or participant prior
14to January 1, 2011 under any retirement system or pension fund
15subject to this Section. The changes made to this Section by
16Public Act 98-596 are a clarification of existing law and are
17intended to be retroactive to January 1, 2011 (the effective
18date of Public Act 96-889), notwithstanding the provisions of
19Section 1-103.1 of this Code.
20    This Section does not apply to a person who first becomes a
21noncovered employee under Article 14 on or after the
22implementation date of the plan created under Section 1-161
23for that Article, unless that person elects under subsection
24(b) of Section 1-161 to instead receive the benefits provided
25under this Section and the applicable provisions of that
26Article.

 

 

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

 

 

10300HB2352sam003- 18 -LRB103 27717 RPS 62053 a

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

 

 

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1    to the member or participant during the 96 months (or 8
2    years) of service within the last 120 months (or 10 years)
3    of service in which the total salary or earnings
4    calculated under the Article was the highest by the number
5    of months (or years) of service in that period.
6    (b-5) Beginning on January 1, 2011, for all purposes under
7this Code (including without limitation the calculation of
8benefits and employee contributions), the annual earnings,
9salary, or wages (based on the plan year) of a member or
10participant to whom this Section applies shall not exceed
11$106,800; however, that amount shall annually thereafter be
12increased by the lesser of (i) 3% of that amount, including all
13previous adjustments, or (ii) one-half the annual unadjusted
14percentage increase (but not less than zero) in the consumer
15price index-u for the 12 months ending with the September
16preceding each November 1, including all previous adjustments.
17    For the purposes of this Section, "consumer price index-u"
18means the index published by the Bureau of Labor Statistics of
19the United States Department of Labor that measures the
20average change in prices of goods and services purchased by
21all urban consumers, United States city average, all items,
221982-84 = 100. The new amount resulting from each annual
23adjustment shall be determined by the Public Pension Division
24of the Department of Insurance and made available to the
25boards of the retirement systems and pension funds by November
261 of each year.

 

 

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1    (b-10) Beginning on January 1, 2024, for all purposes
2under this Code (including, without limitation, the
3calculation of benefits and employee contributions), the
4annual earnings, salary, or wages (based on the plan year) of a
5member or participant under Article 9 to whom this Section
6applies shall include an annual earnings, salary, or wage cap
7that tracks the Social Security wage base. Maximum annual
8earnings, wages, or salary shall be the annual contribution
9and benefit base established for the applicable year by the
10Commissioner of the Social Security Administration under the
11federal Social Security Act.
12    However, in no event shall the annual earnings, salary, or
13wages for the purposes of this Article and Article 9 exceed any
14limitation imposed on annual earnings, salary, or wages under
15Section 1-117. Under no circumstances shall the maximum amount
16of annual earnings, salary, or wages be greater than the
17amount set forth in this subsection (b-10) as a result of
18reciprocal service or any provisions regarding reciprocal
19services, nor shall the Fund under Article 9 be required to pay
20any refund as a result of the application of this maximum
21annual earnings, salary, and wage cap.
22    Nothing in this subsection (b-10) shall cause or otherwise
23result in any retroactive adjustment of any employee
24contributions. Nothing in this subsection (b-10) shall cause
25or otherwise result in any retroactive adjustment of
26disability or other payments made between January 1, 2011 and

 

 

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1January 1, 2024.
2    (c) A member or participant is entitled to a retirement
3annuity upon written application if he or she has attained age
467 (age 65, with respect to service under Article 12 that is
5subject to this Section, for a member or participant under
6Article 12 who first becomes a member or participant under
7Article 12 on or after January 1, 2022 or who makes the
8election under item (i) of subsection (d-15) of this Section)
9and has at least 10 years of service credit and is otherwise
10eligible under the requirements of the applicable Article.
11    A member or participant who has attained age 62 (age 60,
12with respect to service under Article 12 that is subject to
13this Section, for a member or participant under Article 12 who
14first becomes a member or participant under Article 12 on or
15after January 1, 2022 or who makes the election under item (i)
16of subsection (d-15) of this Section) and has at least 10 years
17of service credit and is otherwise eligible under the
18requirements of the applicable Article may elect to receive
19the lower retirement annuity provided in subsection (d) of
20this Section.
21    (c-5) A person who first becomes a member or a participant
22subject to this Section on or after July 6, 2017 (the effective
23date of Public Act 100-23), notwithstanding any other
24provision of this Code to the contrary, is entitled to a
25retirement annuity under Article 8 or Article 11 upon written
26application if he or she has attained age 65 and has at least

 

 

10300HB2352sam003- 22 -LRB103 27717 RPS 62053 a

110 years of service credit and is otherwise eligible under the
2requirements of Article 8 or Article 11 of this Code,
3whichever is applicable.
4    (d) The retirement annuity of a member or participant who
5is retiring after attaining age 62 (age 60, with respect to
6service under Article 12 that is subject to this Section, for a
7member or participant under Article 12 who first becomes a
8member or participant under Article 12 on or after January 1,
92022 or who makes the election under item (i) of subsection
10(d-15) of this Section) with at least 10 years of service
11credit shall be reduced by one-half of 1% for each full month
12that the member's age is under age 67 (age 65, with respect to
13service under Article 12 that is subject to this Section, for a
14member or participant under Article 12 who first becomes a
15member or participant under Article 12 on or after January 1,
162022 or who makes the election under item (i) of subsection
17(d-15) of this Section).
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) shall make an irrevocable election

 

 

10300HB2352sam003- 23 -LRB103 27717 RPS 62053 a

1either:
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

 

 

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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

 

 

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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), age 65 with respect to
6service under Article 8 or Article 11 for eligible persons
7who: (i) are subject to subsection (c-5) of this Section; or
8(ii) made the election under item (i) of subsection (d-10) of
9this Section) or the first anniversary of the annuity start
10date, whichever is later. Each annual increase shall be
11calculated at 3% or one-half the annual unadjusted percentage
12increase (but not less than zero) in the consumer price
13index-u for the 12 months ending with the September preceding
14each November 1, whichever is less, of the originally granted
15retirement annuity. If the annual unadjusted percentage change
16in the consumer price index-u for the 12 months ending with the
17September preceding each November 1 is zero or there is a
18decrease, then the annuity shall not be increased.
19    For the purposes of Section 1-103.1 of this Code, the
20changes made to this Section by Public Act 102-263 are
21applicable without regard to whether the employee was in
22active service on or after August 6, 2021 (the effective date
23of Public Act 102-263).
24    For the purposes of Section 1-103.1 of this Code, the
25changes made to this Section by Public Act 100-23 are
26applicable without regard to whether the employee was in

 

 

10300HB2352sam003- 26 -LRB103 27717 RPS 62053 a

1active service on or after July 6, 2017 (the effective date of
2Public Act 100-23).
3    (f) The initial survivor's or widow's annuity of an
4otherwise eligible survivor or widow of a retired member or
5participant who first became a member or participant on or
6after January 1, 2011 shall be in the amount of 66 2/3% of the
7retired member's or participant's retirement annuity at the
8date of death. In the case of the death of a member or
9participant who has not retired and who first became a member
10or participant on or after January 1, 2011, eligibility for a
11survivor's or widow's annuity shall be determined by the
12applicable Article of this Code. The initial benefit shall be
1366 2/3% of the earned annuity without a reduction due to age. A
14child's annuity of an otherwise eligible child shall be in the
15amount prescribed under each Article if applicable. Any
16survivor's or widow's annuity shall be increased (1) on each
17January 1 occurring on or after the commencement of the
18annuity if the deceased member died while receiving a
19retirement annuity or (2) in other cases, on each January 1
20occurring after the first anniversary of the commencement of
21the annuity. Each annual increase shall be calculated at 3% or
22one-half the annual unadjusted percentage increase (but not
23less than zero) in the consumer price index-u for the 12 months
24ending with the September preceding each November 1, whichever
25is less, of the originally granted survivor's annuity. If the
26annual unadjusted percentage change in the consumer price

 

 

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1index-u for the 12 months ending with the September preceding
2each November 1 is zero or there is a decrease, then the
3annuity shall not be increased.
4    (g) The benefits in Section 14-110 apply only if the
5person is a State policeman, a fire fighter in the fire
6protection service of a department, a conservation police
7officer, an investigator for the Secretary of State, an arson
8investigator, a Commerce Commission police officer,
9investigator for the Department of Revenue or the Illinois
10Gaming Board, a security employee of the Department of
11Corrections or the Department of Juvenile Justice, or a
12security employee of the Department of Innovation and
13Technology, as those terms are defined in subsection (b) and
14subsection (c) of Section 14-110. A person who meets the
15requirements of this Section is entitled to an annuity
16calculated under the provisions of Section 14-110, in lieu of
17the regular or minimum retirement annuity, only if the person
18has withdrawn from service with not less than 20 years of
19eligible creditable service and has attained age 60,
20regardless of whether the attainment of age 60 occurs while
21the person is still in service.
22    (h) If a person who first becomes a member or a participant
23of a retirement system or pension fund subject to this Section
24on or after January 1, 2011 is receiving a retirement annuity
25or retirement pension under that system or fund and becomes a
26member or participant under any other system or fund created

 

 

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

 

 

10300HB2352sam003- 29 -LRB103 27717 RPS 62053 a

1retirement pension payments shall resume and, if appropriate,
2be recalculated under the applicable provisions of this Code.
3    (i) (Blank).
4    (j) In the case of a conflict between the provisions of
5this Section and any other provision of this Code, the
6provisions of this Section shall control.
7(Source: P.A. 101-610, eff. 1-1-20; 102-16, eff. 6-17-21;
8102-210, eff. 1-1-22; 102-263, eff. 8-6-21; 102-813, eff.
95-13-22.)
 
10    (Text of Section from P.A. 102-956)
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
25to the contrary in this Section, for purposes of this Section,

 

 

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1a person who is a Tier 1 regular employee as defined in Section
27-109.4 of this Code or who participated in a retirement
3system under Article 15 prior to January 1, 2011 shall be
4deemed a person who first became a member or participant prior
5to January 1, 2011 under any retirement system or pension fund
6subject to this Section. The changes made to this Section by
7Public Act 98-596 are a clarification of existing law and are
8intended to be retroactive to January 1, 2011 (the effective
9date of Public Act 96-889), notwithstanding the provisions of
10Section 1-103.1 of this Code.
11    This Section does not apply to a person who first becomes a
12noncovered employee under Article 14 on or after the
13implementation date of the plan created under Section 1-161
14for that Article, unless that person elects under subsection
15(b) of Section 1-161 to instead receive the benefits provided
16under this Section and the applicable provisions of that
17Article.
18    This Section does not apply to a person who first becomes a
19member or participant under Article 16 on or after the
20implementation date of the plan created under Section 1-161
21for that Article, unless that person elects under subsection
22(b) of Section 1-161 to instead receive the benefits provided
23under this Section and the applicable provisions of that
24Article.
25    This Section does not apply to a person who elects under
26subsection (c-5) of Section 1-161 to receive the benefits

 

 

10300HB2352sam003- 31 -LRB103 27717 RPS 62053 a

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

 

 

10300HB2352sam003- 32 -LRB103 27717 RPS 62053 a

1        (3) In Article 13, "average final salary".
2        (4) In Article 14, "final average compensation".
3        (5) In Article 17, "average salary".
4        (6) In Section 22-207, "wages or salary received by
5    him at the date of retirement or discharge".
6    A member of the Teachers' Retirement System of the State
7of Illinois who retires on or after June 1, 2021 and for whom
8the 2020-2021 school year is used in the calculation of the
9member's final average salary shall use the higher of the
10following for the purpose of determining the member's final
11average salary:
12        (A) the amount otherwise calculated under the first
13    paragraph of this subsection; or
14        (B) an amount calculated by the Teachers' Retirement
15    System of the State of Illinois using the average of the
16    monthly (or annual) salary obtained by dividing the total
17    salary or earnings calculated under Article 16 applicable
18    to the member or participant during the 96 months (or 8
19    years) of service within the last 120 months (or 10 years)
20    of service in which the total salary or earnings
21    calculated under the Article was the highest by the number
22    of months (or years) of service in that period.
23    (b-5) Beginning on January 1, 2011, for all purposes under
24this Code (including without limitation the calculation of
25benefits and employee contributions), the annual earnings,
26salary, or wages (based on the plan year) of a member or

 

 

10300HB2352sam003- 33 -LRB103 27717 RPS 62053 a

1participant to whom this Section applies shall not exceed
2$106,800; however, that amount shall annually thereafter be
3increased by the lesser of (i) 3% of that amount, including all
4previous adjustments, or (ii) one-half the annual unadjusted
5percentage increase (but not less than zero) in the consumer
6price index-u for the 12 months ending with the September
7preceding each November 1, including all previous adjustments.
8    For the purposes of this Section, "consumer price index-u"
9means the index published by the Bureau of Labor Statistics of
10the United States Department of Labor that measures the
11average change in prices of goods and services purchased by
12all urban consumers, United States city average, all items,
131982-84 = 100. The new amount resulting from each annual
14adjustment shall be determined by the Public Pension Division
15of the Department of Insurance and made available to the
16boards of the retirement systems and pension funds by November
171 of each year.
18    (b-10) Beginning on January 1, 2024, for all purposes
19under this Code (including, without limitation, the
20calculation of benefits and employee contributions), the
21annual earnings, salary, or wages (based on the plan year) of a
22member or participant under Article 9 to whom this Section
23applies shall include an annual earnings, salary, or wage cap
24that tracks the Social Security wage base. Maximum annual
25earnings, wages, or salary shall be the annual contribution
26and benefit base established for the applicable year by the

 

 

10300HB2352sam003- 34 -LRB103 27717 RPS 62053 a

1Commissioner of the Social Security Administration under the
2federal Social Security Act.
3    However, in no event shall the annual earnings, salary, or
4wages for the purposes of this Article and Article 9 exceed any
5limitation imposed on annual earnings, salary, or wages under
6Section 1-117. Under no circumstances shall the maximum amount
7of annual earnings, salary, or wages be greater than the
8amount set forth in this subsection (b-10) as a result of
9reciprocal service or any provisions regarding reciprocal
10services, nor shall the Fund under Article 9 be required to pay
11any refund as a result of the application of this maximum
12annual earnings, salary, and wage cap.
13    Nothing in this subsection (b-10) shall cause or otherwise
14result in any retroactive adjustment of any employee
15contributions. Nothing in this subsection (b-10) shall cause
16or otherwise result in any retroactive adjustment of
17disability or other payments made between January 1, 2011 and
18January 1, 2024.
19    (c) A member or participant is entitled to a retirement
20annuity upon written application if he or she has attained age
2167 (age 65, with respect to service under Article 12 that is
22subject to this Section, for a member or participant under
23Article 12 who first becomes a member or participant under
24Article 12 on or after January 1, 2022 or who makes the
25election under item (i) of subsection (d-15) of this Section)
26and has at least 10 years of service credit and is otherwise

 

 

10300HB2352sam003- 35 -LRB103 27717 RPS 62053 a

1eligible under the requirements of the applicable Article.
2    A member or participant who has attained age 62 (age 60,
3with respect to service under Article 12 that is subject to
4this Section, for a member or participant under Article 12 who
5first becomes a member or participant under Article 12 on or
6after January 1, 2022 or who makes the election under item (i)
7of subsection (d-15) of this Section) and has at least 10 years
8of service credit and is otherwise eligible under the
9requirements of the applicable Article may elect to receive
10the lower retirement annuity provided in subsection (d) of
11this Section.
12    (c-5) A person who first becomes a member or a participant
13subject to this Section on or after July 6, 2017 (the effective
14date of Public Act 100-23), notwithstanding any other
15provision of this Code to the contrary, is entitled to a
16retirement annuity under Article 8 or Article 11 upon written
17application if he or she has attained age 65 and has at least
1810 years of service credit and is otherwise eligible under the
19requirements of Article 8 or Article 11 of this Code,
20whichever is applicable.
21    (d) The retirement annuity of a member or participant who
22is retiring after attaining age 62 (age 60, with respect to
23service under Article 12 that is subject to this Section, for a
24member or participant under Article 12 who first becomes a
25member or participant under Article 12 on or after January 1,
262022 or who makes the election under item (i) of subsection

 

 

10300HB2352sam003- 36 -LRB103 27717 RPS 62053 a

1(d-15) of this Section) with at least 10 years of service
2credit shall be reduced by one-half of 1% for each full month
3that the member's age is under age 67 (age 65, with respect to
4service under Article 12 that is subject to this Section, for a
5member or participant under Article 12 who first becomes a
6member or participant under Article 12 on or after January 1,
72022 or who makes the election under item (i) of subsection
8(d-15) of this Section).
9    (d-5) The retirement annuity payable under Article 8 or
10Article 11 to an eligible person subject to subsection (c-5)
11of this Section who is retiring at age 60 with at least 10
12years of service credit shall be reduced by one-half of 1% for
13each full month that the member's age is under age 65.
14    (d-10) Each person who first became a member or
15participant under Article 8 or Article 11 of this Code on or
16after January 1, 2011 and prior to July 6, 2017 (the effective
17date of Public Act 100-23) shall make an irrevocable election
18either:
19        (i) to be eligible for the reduced retirement age
20    provided in subsections (c-5) and (d-5) of this Section,
21    the eligibility for which is conditioned upon the member
22    or participant agreeing to the increases in employee
23    contributions for age and service annuities provided in
24    subsection (a-5) of Section 8-174 of this Code (for
25    service under Article 8) or subsection (a-5) of Section
26    11-170 of this Code (for service under Article 11); or

 

 

10300HB2352sam003- 37 -LRB103 27717 RPS 62053 a

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

 

 

10300HB2352sam003- 38 -LRB103 27717 RPS 62053 a

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

 

 

10300HB2352sam003- 39 -LRB103 27717 RPS 62053 a

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

 

 

10300HB2352sam003- 40 -LRB103 27717 RPS 62053 a

1or participant on or after January 1, 2011, eligibility for a
2survivor's or widow's annuity shall be determined by the
3applicable Article of this Code. The initial benefit shall be
466 2/3% of the earned annuity without a reduction due to age. A
5child's annuity of an otherwise eligible child shall be in the
6amount prescribed under each Article if applicable. Any
7survivor's or widow's annuity shall be increased (1) on each
8January 1 occurring on or after the commencement of the
9annuity if the deceased member died while receiving a
10retirement annuity or (2) in other cases, on each January 1
11occurring after the first anniversary of the commencement of
12the annuity. 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 survivor's 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    (g) The benefits in Section 14-110 apply only if the
22person is a State policeman, a fire fighter in the fire
23protection service of a department, a conservation police
24officer, an investigator for the Secretary of State, an
25investigator for the Office of the Attorney General, an arson
26investigator, a Commerce Commission police officer,

 

 

10300HB2352sam003- 41 -LRB103 27717 RPS 62053 a

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

 

 

10300HB2352sam003- 42 -LRB103 27717 RPS 62053 a

1applicable Article of this Code.
2    If a person who first becomes a member of a retirement
3system or pension fund subject to this Section on or after
4January 1, 2012 and is receiving a retirement annuity or
5retirement pension under that system or fund and accepts on a
6contractual basis a position to provide services to a
7governmental entity from which he or she has retired, then
8that person's annuity or retirement pension earned as an
9active employee of the employer shall be suspended during that
10contractual service. A person receiving an annuity or
11retirement pension under this Code shall notify the pension
12fund or retirement system from which he or she is receiving an
13annuity or retirement pension, as well as his or her
14contractual employer, of his or her retirement status before
15accepting contractual employment. A person who fails to submit
16such notification shall be guilty of a Class A misdemeanor and
17required to pay a fine of $1,000. Upon termination of that
18contractual employment, the person's retirement annuity or
19retirement pension payments shall resume and, if appropriate,
20be recalculated under the applicable provisions of this Code.
21    (i) (Blank).
22    (j) In the case of a conflict between the provisions of
23this Section and any other provision of this Code, the
24provisions of this Section shall control.
25(Source: P.A. 101-610, eff. 1-1-20; 102-16, eff. 6-17-21;
26102-210, eff. 1-1-22; 102-263, eff. 8-6-21; 102-956, eff.

 

 

10300HB2352sam003- 43 -LRB103 27717 RPS 62053 a

15-27-22.)
 
2    (40 ILCS 5/9-169)  (from Ch. 108 1/2, par. 9-169)
3    Sec. 9-169. Financing; tax Financing - Tax levy and other
4funding sources.
5    (a) The county board shall levy a tax annually upon all
6taxable property in the county at the rate that will produce a
7sum which, when added to the amounts deducted from the
8salaries of the employees or otherwise contributed by them is
9sufficient for the requirements of this Article.
10    For the years before 1962 the tax rate shall be as provided
11in "The 1925 Act". For the years 1962 and 1963 the tax rate
12shall be not more than .0200 per cent; for the years 1964 and
131965 the tax rate shall be not more than .0202 per cent; for
14the years 1966 and 1967 the tax rate shall be not more than
15.0207 per cent; for the year 1968 the tax rate shall be not
16more than .0220 per cent; for the year 1969 the tax rate shall
17be not more than .0233 per cent; for the year 1970 the tax rate
18shall be not more than .0255 per cent; for the year 1971 the
19tax rate shall be not more than .0268 per cent of the value, as
20equalized or assessed by the Department of Revenue upon all
21taxable property in the county. Beginning with the year 1972
22and for each year thereafter the county shall levy a tax
23annually at a rate on the dollar of the value, as equalized or
24assessed by the Department of Revenue of all taxable property
25within the county that will produce, when extended, not to

 

 

10300HB2352sam003- 44 -LRB103 27717 RPS 62053 a

1exceed an amount equal to the total amount of contributions
2made by the employees to the fund in the calendar year 2 years
3prior to the year for which the annual applicable tax is levied
4multiplied by .8 for the years 1972 through 1976; by .8 for the
5year 1977; by .87 for the year 1978; by .94 for the year 1979;
6by 1.02 for the year 1980 and by 1.10 for the year 1981 and by
71.18 for the year 1982 and by 1.36 for the year 1983 and by
81.54 for the year 1984 and for each year thereafter.
9    This tax shall be levied and collected in like manner with
10the general taxes of the county, and shall be in addition to
11all other taxes which the county is authorized to levy upon the
12aggregate valuation of all taxable property within the county
13and shall be exclusive of and in addition to the amount of tax
14the county is authorized to levy for general purposes under
15any laws which may limit the amount of tax which the county may
16levy for general purposes. The county clerk, in reducing tax
17levies under any Act concerning the levy and extension of
18taxes, shall not consider this tax as a part of the general tax
19levy for county purposes, and shall not include it within any
20limitation of the per cent of the assessed valuation upon
21which taxes are required to be extended for the county. It is
22lawful to extend this tax in addition to the general county
23rate fixed by statute, without being authorized as additional
24by a vote of the people of the county.
25    Revenues derived from this tax shall be paid to the
26treasurer of the county and held by the treasurer him for the

 

 

10300HB2352sam003- 45 -LRB103 27717 RPS 62053 a

1benefit of the fund.
2    If the payments on account of taxes are insufficient
3during any year to meet the requirements of this Article, the
4county may issue tax anticipation warrants against the current
5tax levy.
6    (b) By January 10, annually, the board shall notify the
7county board of the requirement of this Article that this tax
8shall be levied. The board shall make an annual determination
9of the required county contributions, and shall certify the
10results thereof to the county board.
11    (c) Beginning in the year 2024, the county's minimum
12required employer contribution as provided in Section 9-169.2
13shall be paid with the portion of the tax levy as provided in
14subsection (a) of this Section and any other lawfully
15available funds of the county. The county shall disburse to
16and deposit with the county treasurer on a monthly basis
17beginning no later than the December 31 preceding the
18beginning of the Fund's fiscal year 1/12 of the balance of what
19is not paid under subsection (a), for the benefit of the Fund,
20to be held in accordance with this Article. This amount,
21together with such real estate taxes as are specifically
22levied under this Section for that year, shall not be less than
23the amount of the minimum required employer contribution for
24that year as certified by the Fund to the county board. The
25deposit may be derived from any source otherwise legally
26available to the county for that purpose, including, but not

 

 

10300HB2352sam003- 46 -LRB103 27717 RPS 62053 a

1limited to, home rule taxes. The making of a deposit shall
2satisfy the requirements of this Section for that year to the
3extent of the amounts so deposited. Amounts deposited under
4this subsection may be used by the Fund for any of the purposes
5for which the proceeds of real estate taxes levied by the
6county under this Section may otherwise be used, including the
7payment of any amount that is otherwise required by this
8Article to be paid from the proceeds of that tax. If the
9county, before the effective date of this amendatory Act of
10the 103rd General Assembly, made a contribution or agreed to
11make a contribution to the Fund from sources other than real
12estate taxes, this paragraph confirms the validity of or
13ratifies such contribution or agreement, and neither the
14county nor any of its officers or employees shall be required
15to answer for such contribution or agreement in any court. The
16various sums to be contributed by the county board and
17allocated for the purposes of this Article and any interest to
18be contributed by the county shall be taken from the revenue
19derived from this tax and no money of the county derived from
20any source other than the levy and collection of this tax or
21the sale of tax anticipation warrants, except state or federal
22funds contributed for annuity and benefit purposes for
23employees of a county department of public aid under "The
24Illinois Public Aid Code", approved April 11, 1967, as now or
25hereafter amended, may be used to provide revenue for the
26fund.

 

 

10300HB2352sam003- 47 -LRB103 27717 RPS 62053 a

1    If it is not possible or practicable for the county to make
2contributions for age and service annuity and widow's annuity
3concurrently with the employee contributions made for such
4purposes, such county shall make such contributions as soon as
5possible and practicable thereafter with interest thereon at
6the effective rate until the time it shall be made.
7    (d) With respect to employees whose wages are funded as
8participants under the Comprehensive Employment and Training
9Act of 1973, as amended (P.L. 93-203, 87 Stat. 839, P.L.
1093-567, 88 Stat. 1845), hereinafter referred to as CETA,
11subsequent to October 1, 1978, and in instances where the
12board has elected to establish a manpower program reserve, the
13board shall compute the amounts necessary to be credited to
14the manpower program reserves established and maintained as
15herein provided, and shall make a periodic determination of
16the amount of required contributions from the County to the
17reserve to be reimbursed by the federal government in
18accordance with rules and regulations established by the
19Secretary of the United States Department of Labor or his
20designee, and certify the results thereof to the County Board.
21Any such amounts shall become a credit to the County and will
22be used to reduce the amount which the County would otherwise
23contribute during succeeding years for all employees.
24    (e) In lieu of establishing a manpower program reserve
25with respect to employees whose wages are funded as
26participants under the Comprehensive Employment and Training

 

 

10300HB2352sam003- 48 -LRB103 27717 RPS 62053 a

1Act of 1973, as authorized by subsection (d), the board may
2elect to establish a special County contribution rate for all
3such employees. If this option is elected, the County shall
4contribute to the Fund from federal funds provided under the
5Comprehensive Employment and Training Act program at the
6special rate so established and such contributions shall
7become a credit to the County and be used to reduce the amount
8which the County would otherwise contribute during succeeding
9years for all employees.
10(Source: P.A. 95-369, eff. 8-23-07.)
 
11    (40 ILCS 5/9-169.1 new)
12    Sec. 9-169.1. Annual actuarial report. The retirement
13board shall retain an actuary who is a member in good standing
14of the American Academy of Actuaries to produce an annual
15actuarial report of the Fund. The annual actuarial report
16shall include, but not be limited to: (1) a statement of the
17minimum required contribution, the actuarial value of the
18Fund's assets as projected over at least 30 years' time, and
19the actuarial value of the Fund's liabilities as projected
20over the same period of time; and (2) the minimum required
21employer contribution, as determined under Section 9-169.2,
22for the second year immediately following the year ending on
23the valuation date upon which the annual actuarial report is
24based.
25    The annual actuarial report may be prepared as part of the

 

 

10300HB2352sam003- 49 -LRB103 27717 RPS 62053 a

1annual audit required under Section 9-195. The annual
2actuarial report shall be reviewed and formally adopted by the
3retirement board and shall be included in the annual report
4that is required to be submitted to the county in July of each
5year under Section 9-199.
6    In this Section, "valuation date" means the date that the
7value of the assets and liabilities of the Fund is based on in
8the annual actuarial report.
 
9    (40 ILCS 5/9-169.2 new)
10    Sec. 9-169.2. Minimum required employer contribution. The
11minimum required employer contribution for a specified year,
12as set forth in the annual actuarial report required under
13Section 9-169.1, shall be the amount determined by the Fund's
14actuary to be equal to the sum of: (i) the projected normal
15cost for pensions for that fiscal year based on the entry age
16actuarial cost method, plus (ii) a projected unfunded
17actuarial accrued liability amortization payment for pensions
18for the fiscal year, plus (iii) projected expenses for that
19fiscal year, plus (iv) interest to adjust for payment pattern
20during the fiscal year, less (v) projected employee
21contributions for that fiscal year.
22    The minimum required employer contribution for the next
23year shall be submitted annually by the county on or before
24June 14 of each year unless another time frame is agreed upon
25by the county and the Fund.

 

 

10300HB2352sam003- 50 -LRB103 27717 RPS 62053 a

1    For the purposes of this Section:
2    "5-Year smoothed actuarial value of assets" means the
3value of assets as determined by a method that spreads the
4effect of each year's investment return in excess of or below
5the expected return.
6    "Entry age actuarial cost method" means a method of
7determining the normal cost and is determined as a level
8percentage of pay that, if paid from entry age to the assumed
9retirement age, assuming all the actuarial assumptions are
10exactly met by experience and no changes in assumptions or
11benefit provisions, would accumulate to a fund sufficient to
12pay all benefits provided by the Fund.
13    "Layered amortization" means a technique that separately
14layers the different components of the unfunded actuarial
15accrued liabilities to be amortized over a fixed period not to
16exceed 30 years.
17    "Projected expenses" means the projected administrative
18expenses for the cost of administrating the Fund.
19    "Projected normal costs for pensions" means the cost of
20the benefits that accrue during the year for active members
21under the entry age actuarial cost method.
22    "Unfunded actuarial accrued liability amortization
23payment" means the annual contribution equal to the difference
24between the values of assets and the accrued liabilities of
25the plan, calculated by an actuary, needed to amortize the
26Fund's liabilities over a period of 30 years starting in 2017,

 

 

10300HB2352sam003- 51 -LRB103 27717 RPS 62053 a

1with layered amortization of the Fund's unexpected unfunded
2actuarial accrued liability amortization payment following
32017 in periods of 30 years, with amortization payments
4increasing 2% per year, and reflecting a discount rate for all
5liabilities consistent with the assumed investment rate of
6return on fund assets and a 5-year smoothed actuarial value of
7assets.
 
8    (40 ILCS 5/9-179.1)  (from Ch. 108 1/2, par. 9-179.1)
9    Sec. 9-179.1. Military service. A contributing employee as
10of January 1, 1993 with at least 25 years of service credit may
11apply for creditable service for up to 2 years of military
12service whether or not the military service followed service
13as a county employee. The military service need not have been
14served in wartime, but the employee must not have been
15dishonorably discharged. To establish this creditable service
16the applicant must pay to the Fund, while in the service of the
17county, an amount determined by the Fund to represent the
18employee contributions for the creditable service established,
19based on the employee's rate of compensation on his or her last
20day as a contributor before the military service, or on his or
21her first day as a contributor after the military service,
22whichever is greater, plus interest at the effective rate from
23the date of discharge to the date of payment. If a person who
24has established any credit under this Section applies for or
25receives any early retirement incentive under Section 9-134.2,

 

 

10300HB2352sam003- 52 -LRB103 27717 RPS 62053 a

1the credit under this Section shall be forfeited and the
2amount paid to the Fund under this Section shall be refunded.
3(Source: P.A. 87-1265.)
 
4    (40 ILCS 5/9-184)  (from Ch. 108 1/2, par. 9-184)
5    Sec. 9-184. Estimates of sums required for certain
6annuities and benefits. The board shall estimate and itemize
7the amounts required each year to pay for all annuities, each
8benefit category, and benefits and administrative expenses
9associated with this Article, by way of a written report and
10request to the County Board of Commissioners. The amounts
11shall be paid into the fund annually by the county as provided
12in Section 9-169 from the prescribed tax levy.
13(Source: Laws 1963, p. 161.)
 
14    (40 ILCS 5/9-185)  (from Ch. 108 1/2, par. 9-185)
15    Sec. 9-185. Board created.
16    (a) A board of 9 members shall constitute the board of
17trustees authorized to carry out the provisions of this
18Article. The board of trustees shall be known as "The
19Retirement Board of the County Employees' Annuity and Benefit
20Fund of .... County". The board shall consist of 2 members
21appointed and 7 members elected as hereinafter prescribed.
22    (b) The appointed members shall be appointed as follows:
23One member shall be appointed by the comptroller of such
24county, who may be the comptroller or some person chosen by the

 

 

10300HB2352sam003- 53 -LRB103 27717 RPS 62053 a

1comptroller him from among employees of the county, who are
2versed in the affairs of the comptroller's office; and one
3member shall be appointed by the treasurer of such county, who
4may be the treasurer or some person chosen by the treasurer him
5from among employees of the County who are versed in the
6affairs of the treasurer's office.
7    The member appointed by the comptroller shall hold office
8for a term ending on December 1st of the first year following
9the year of appointment. The member appointed by the county
10treasurer shall hold office for a term ending on December 1st
11of the second year following the year of appointment.
12    Thereafter, each appointed member shall be appointed by
13the officer that appointed the his predecessor for a term of 2
14years.
15    (c) Three county employee members of the board shall be
16elected as follows: within 30 days from and after the date upon
17which this Article comes into effect in the county, the clerk
18of the county shall arrange for and hold an election. One
19employee shall be elected for a term ending on the first day in
20the month of December of the first year next following the
21effective date; one for a term ending on December 1st of the
22following year; and one for a term ending December 1st of the
23second following year.
24    (d) Beginning December 1, 1988, and every 3 years
25thereafter, an annuitant member of the board shall be elected
26as follows: the board shall arrange for and hold an election in

 

 

10300HB2352sam003- 54 -LRB103 27717 RPS 62053 a

1which only those participants who are currently receiving
2retirement benefits under this Article shall be eligible to
3vote and be elected. Each such member shall be elected to a
4term ending on the first day in the month of December of the
5third following year.
6    (d-1) Beginning December 1, 2001, and every 3 years
7thereafter, an annuitant member of the board shall be elected
8as follows: the board shall arrange for and hold an election in
9which only those participants who are currently receiving
10retirement benefits under this Article shall be eligible to
11vote and be elected. Each such member shall be elected to a
12term ending on the first day in the month of December of the
13third following year. Until December 1, 2001, the position
14created under this subsection (d-1) may be filled by the board
15as in the case of a vacancy.
16    (e) Beginning December 1, 1988, if a Forest Preserve
17District Employees' Annuity and Benefit Fund shall be in force
18in such county and the board of this fund is charged with
19administering the affairs of such annuity and benefit fund for
20employees of such forest preserve district, a forest preserve
21district member of the board shall be elected as of December 1,
221988, and every 3 years thereafter as follows: the board shall
23arrange for and hold an election in which only those employees
24of such forest preserve district who are contributors to the
25annuity and benefit fund for employees of such forest preserve
26district shall be eligible to vote and be elected. Each such

 

 

10300HB2352sam003- 55 -LRB103 27717 RPS 62053 a

1member shall be elected to a term ending on the first day in
2the month of December of the third following year.
3    (f) Beginning December 1, 2001, and every 3 years
4thereafter, if a Forest Preserve District Employees' Annuity
5and Benefit Fund is in force in the county and the board of
6this Fund is charged with administering the affairs of that
7annuity and benefit fund for employees of the forest preserve
8district, a forest preserve district annuitant member of the
9board shall be elected as follows: the board shall arrange for
10and hold an election in which only those participants who are
11currently receiving retirement benefits under Article 10 shall
12be eligible to vote and be elected. Each such member shall be
13elected to a term ending on the first day in the month of
14December of the third following year. Until December 1, 2001,
15the position created under this subsection (f) may be filled
16by the board as in the case of a vacancy.
17(Source: P.A. 92-66, eff. 7-12-01.)
 
18    (40 ILCS 5/9-195)  (from Ch. 108 1/2, par. 9-195)
19    Sec. 9-195. To have an audit. To have an audit of the
20accounts of the fund made at least once each year by certified
21public accountants. The audit may include the preparation of
22the annual actuarial report required under Section 9-169.1.
23(Source: Laws 1963, p. 161.)
 
24    (40 ILCS 5/9-199)  (from Ch. 108 1/2, par. 9-199)

 

 

10300HB2352sam003- 56 -LRB103 27717 RPS 62053 a

1    Sec. 9-199. To submit an annual report. To submit a report
2in July of each year to the county board of the county as of
3the close of business on December 31st of the preceding year.
4The report shall contain a detailed statement of the affairs
5of the fund, its income and expenditures, and assets and
6liabilities, and it shall include the annual actuarial report
7required under Section 9-169.1. The county board shall have
8power to require and compel the retirement board to prepare
9and submit such reports.
10(Source: P.A. 95-369, eff. 8-23-07.)
 
11    (40 ILCS 5/9-240 new)
12    Sec. 9-240. Group health benefit funding. Beginning on the
13effective date of this amendatory Act of the 103rd General
14Assembly, the county shall be notified by June 14 of each year
15of the proposed costs of any such payments allocated by the
16Fund for all or any portion of the total health premium paid by
17the Fund pursuant to Section 9-239.
 
18    Section 90. The State Mandates Act is amended by adding
19Section 8.47 as follows:
 
20    (30 ILCS 805/8.47 new)
21    Sec. 8.47. Exempt mandate. Notwithstanding Sections 6 and
228 of this Act, no reimbursement by the State is required for
23the implementation of any mandate created by this amendatory

 

 

10300HB2352sam003- 57 -LRB103 27717 RPS 62053 a

1Act of the 103rd General Assembly.
 
2    Section 99. Effective date. This Act takes effect upon
3becoming law.".