Public Act 094-0004
 		





SB0027 Enrolled
LRB094 04055 AMC 34075 b






    AN ACT concerning public employee benefits.

 
    Be it enacted by the People of the State of Illinois,
 
represented in the General Assembly:

 
    Section 5. The Illinois Pension Code is amended  by changing 
Sections 2-124, 2-134, 14-108.3, 14-110, 14-131, 14-135.08, 
15-125, 15-136, 15-155, 15-165, 16-128, 16-133, 16-133.2, 
16-133.3, 16-152, 16-158, 16-176,  17-116.1, 18-131, and 18-140 
and  by adding Sections 1A-201, 2-162, 14-152.1, 15-198, 16-203, 
and 18-169 as follows:

 
    (40 ILCS 5/1A-201 new)

    Sec. 1A-201. Advisory Commission on Pension Benefits.
    (a) There is created an Advisory Commission on Pension 
Benefits. The Commission shall consist of 15 persons, of whom 8 
shall be appointed by the Governor and one each shall be  
appointed by the President and Minority Leader of the Senate 
and the Speaker and Minority Leader of the House of 
Representatives. Four of the persons appointed by the Governor 
shall represent different statewide labor organizations, of 
which 2 shall be organizations that represent primarily 
teachers and 2 shall be organizations that represent primarily 
State employees other than teachers.  The Directors of the 
retirement systems established under Articles 14, 15, and 16 of 
this Code shall be ex officio members of the Commission.
    (b) The Commission shall consider and make its 
recommendations concerning changing the age and service 
requirements, automatic annual increase benefits, and employee 
contribution rates of the State-funded retirement systems and 
other pension-related issues as determined by the Commission.   
On or before November 1, 2005, the Commission shall report its 
findings and recommendations to the Governor and the General 
Assembly.

    (c) The Commission may request actuarial data from any of 
the 5 State-funded retirement systems established under this 
Code.  That data may include, but is not limited to, the dates 
of birth, years of service, salaries, and life expectancies of 
members.  A retirement system shall provide the requested 
information as soon as practical after the request is received, 
but in no event later than any reasonable deadline imposed by 
the Commission.

 



    (40 ILCS 5/2-124)  (from Ch. 108 1/2, par. 2-124)


    Sec. 2-124. Contributions by State. 

    (a) The State shall make contributions to the System by

appropriations of amounts which, together with the 
contributions of
participants, interest earned on investments, 
and other income
will meet the cost of maintaining and 
administering the System on a 90%
funded basis in accordance 
with actuarial recommendations.

    (b) The Board shall determine the amount of State

contributions required for each fiscal year on the basis of the

actuarial tables and other assumptions adopted by the Board and 
the
prescribed rate of interest, using the formula in 
subsection (c).

    (c) For State fiscal years 2011 through 2045, the minimum 
contribution
to the System to be made by the State for each 
fiscal year shall be an amount
determined by the System to be 
sufficient to bring the total assets of the
System up to 90% of 
the total actuarial liabilities of the System by the end of

State fiscal year 2045.  In making these determinations, the 
required State
contribution shall be calculated each year as a 
level percentage of payroll
over the years remaining to and 
including fiscal year 2045 and shall be
determined under the 
projected unit credit actuarial cost method.

    For State fiscal years 1996 through 2005
2010, the State 
contribution to
the System, as a percentage of the applicable 
employee payroll, shall be
increased in equal annual increments 
so that by State fiscal year 2011, the
State is contributing at 
the rate required under this Section.

    Notwithstanding any other provision of this Article, the 
total required State
contribution for State fiscal year 2006 is 
$4,157,000.

    Notwithstanding any other provision of this Article, the 
total required State
contribution for State fiscal year 2007 is 
$5,220,300.

    For each of State fiscal years 2008 through 2010, the State 
contribution to
the System, as a percentage of the applicable 
employee payroll, shall be
increased in equal annual increments 
from the required State contribution for State fiscal year 
2007, so that by State fiscal year 2011, the
State is 
contributing at the rate otherwise required under this Section.

    Beginning in State fiscal year 2046, the minimum State 
contribution for
each fiscal year shall be the amount needed to 
maintain the total assets of
the System at 90% of the total 
actuarial liabilities of the System.

    Notwithstanding any other provision of this Section, the 
required State
contribution for State fiscal year 2005 and for 
fiscal year 2008 and each fiscal year thereafter, as
calculated 
under this Section and
certified under Section 2-134, shall not 
exceed an amount equal to (i) the
amount of the required State 
contribution that would have been calculated under
this Section 
for that fiscal year if the System had not received any 
payments
under subsection (d) of Section 7.2 of the General 
Obligation Bond Act, minus
(ii) the portion of the State's 
total debt service payments for that fiscal
year on the bonds 
issued for the purposes of that Section 7.2, as determined
and 
certified by the Comptroller, that is the same as the System's 
portion of
the total moneys distributed under subsection (d) of 
Section 7.2 of the General
Obligation Bond Act. In determining 
this maximum for State fiscal years 2008 through 2010, however, 
the amount referred to in item (i) shall be increased, as a 
percentage of the applicable employee payroll, in equal 
increments calculated from the sum of the required State 
contribution for State fiscal year 2007 plus the applicable 
portion of the State's total debt service payments for fiscal 
year 2007  on the bonds issued for the purposes of Section 7.2 
of the General
Obligation Bond Act, so that, by State fiscal 
year 2011, the
State is contributing at the rate otherwise 
required under this Section.


(Source: P.A. 93-2, eff. 4-7-03.)

 



    (40 ILCS 5/2-134)
  (from Ch. 108 1/2, par. 2-134)


    Sec. 2-134. To certify required State contributions and 
submit vouchers. 

    (a) The Board shall certify to the Governor on or before 
November 15 of each
year the amount of the required State 
contribution to the System for the next
fiscal year.  The 
certification shall include a copy of the actuarial

recommendations upon which it is based.

    On or before May 1, 2004, the Board shall recalculate and 
recertify to
the Governor the amount of the required State 
contribution to the System for
State fiscal year 2005, taking 
into account the amounts appropriated to and
received by the 
System under subsection (d) of Section 7.2 of the General

Obligation Bond Act.

    On or before July 1, 2005, the Board shall recalculate and 
recertify
to the Governor the amount of the required State

contribution to the System for State fiscal year 2006, taking 
into account the changes in required State contributions made 
by this amendatory Act of the 94th General Assembly.

    (b) Beginning in State fiscal year 1996, on or as soon as 
possible after the
15th day of each month the Board shall 
submit vouchers for payment of State
contributions to the 
System, in a total monthly amount of one-twelfth of the

required annual State contribution certified under subsection 
(a).
From the effective date of this amendatory Act
of the 93rd 
General Assembly through June 30, 2004, the Board shall not

submit vouchers for the remainder of fiscal year 2004 in excess 
of the
fiscal year 2004 certified contribution amount 
determined
under this Section after taking into consideration 
the transfer to the
System under subsection (d) of Section 
6z-61 of the State Finance Act.
These
vouchers shall be paid by 
the State Comptroller and Treasurer by warrants drawn
on the 
funds appropriated to the System for that fiscal year.  If in 
any month
the amount remaining unexpended from all other 
appropriations to the System for
the applicable fiscal year 
(including the appropriations to the System under
Section 8.12 
of the State Finance Act and Section 1 of the State Pension 
Funds
Continuing Appropriation Act) is less than the amount 
lawfully vouchered under
this Section, the difference shall be 
paid from the General Revenue Fund under
the continuing 
appropriation authority provided in Section 1.1 of the State

Pension Funds Continuing Appropriation Act.

    (c) The full amount of any annual appropriation for the 
System for
State fiscal year 1995 shall be transferred and made 
available to the System
at the beginning of that fiscal year at 
the request of the Board.
Any excess funds remaining at the end 
of any fiscal year from appropriations
shall be retained by the 
System as a general reserve to meet the System's
accrued 
liabilities.

(Source: P.A. 93-2, eff. 4-7-03; 93-665, eff. 3-5-04.)

 
    (40 ILCS 5/2-162 new)

    Sec. 2-162. Application and expiration of new benefit 
increases.
    (a) As used in this Section, "new benefit increase" means 
an increase in the amount of any benefit provided under this 
Article, or an expansion of the conditions of  eligibility for 
any benefit under this Article, that results from an amendment 
to this Code that takes effect after the effective date of this 
amendatory Act of the 94th General Assembly.
    (b) Notwithstanding any other provision of this Code or any 
subsequent amendment to this Code, every  new benefit increase 
is subject to this Section and shall be deemed to be granted 
only in conformance with and contingent upon compliance with 
the provisions of this Section.

    (c) The Public Act enacting a new benefit increase must 
identify and provide for payment to the System of additional 
funding at least sufficient to fund the resulting annual 
increase in cost to  the System as it accrues.
    Every  new benefit increase is contingent upon the General 
Assembly providing the additional funding required under this 
subsection. The Commission on Government Forecasting and 
Accountability shall analyze whether adequate additional 
funding has been provided for the new benefit increase and 
shall report its analysis to the Public Pension Division of the 
Department of Financial and Professional Regulation.  A new 
benefit increase created by a Public Act that does not include 
the additional funding required under this subsection is null 
and void. If the Public Pension Division determines that the 
additional funding provided for a new benefit increase under 
this subsection is or has become inadequate, it may so certify 
to the Governor and the State Comptroller and, in the absence 
of corrective  action by the General Assembly, the new benefit 
increase shall expire at the end of the fiscal year in which 
the certification is made.

    (d) Every  new benefit increase shall expire 5 years after 
its effective date or on such earlier date as may be specified 
in the language enacting the new benefit increase or provided 
under subsection (c).  This does  not prevent the General 
Assembly from extending or re-creating a new benefit increase 
by law.
    (e) Except as otherwise provided in the language creating 
the new benefit increase,  a new benefit increase that expires 
under this Section continues to apply to persons who applied 
and qualified for the affected benefit while the new benefit 
increase  was in effect and to the affected beneficiaries and 
alternate payees of such persons, but does not apply to any 
other person, including without limitation a person  who 
continues in service after the expiration date and did not 
apply and qualify for the affected benefit while the new 
benefit increase was in effect.
 
    (40 ILCS 5/14-108.3)

    Sec. 14-108.3. Early retirement incentives.

    (a) To be eligible for the benefits provided in this 
Section, a person
must:


        (1) be a member of this System who, on any day during 
    June, 2002, is
(i) in active payroll status in a position 
    of employment with a department
and an active contributor 
    to this System with respect to that employment,
and 
    terminates that employment before the retirement annuity 
    under this
Article begins, or (ii) on layoff status from 
    such a position with a right of
re-employment or recall to 
    service, or (iii) receiving benefits under Section
14-123, 
    14-123.1 or 14-124, but only if the member has not been 
    receiving
those benefits for a continuous period of more 
    than 2 years as of the date
of application;


        (2) not have received any retirement annuity under this 
    Article
beginning earlier than August 1, 2002;


        (3) file with the Board on or before December 31, 2002 
    a written
application requesting the benefits provided in 
    this Section;


        (4) terminate employment under this Article no later 
    than December 31,
2002 (or the date established under 
    subsection (d), if applicable);


        (5) by the date of termination of service, have at 
    least 8 years of
creditable service under this Article, 
    without the use of any creditable
service established under 
    this Section;


        (6) by the date of termination of service, have at 
    least 5 years
of membership service earned while an 
    employee under this Article, which may
include military 
    service for which credit is established under Section

    14-105(b), service during the qualifying period for which 
    credit is
established under Section 14-104(a), and service 
    for which credit has been
established by repaying a refund 
    under Section 14-130, but shall not include
service for 
    which any other optional service credit has been 
    established; and


        (7) not receive any early retirement benefit under 
    Section 16-133.3 of
this Code.


    (b)  
An eligible person may establish up to 5 years of 
creditable service
under this Article, in increments of one 
month, by making the contributions
specified in subsection (c).  
In addition, for each month of creditable
service established 
under this Section, a person's age at retirement shall
be 
deemed to be one month older than it actually is.


    The creditable service established under this Section may 
be used for
all purposes under this Article and the Retirement 
Systems Reciprocal Act,
except for the computation of final 
average compensation under Section
14-103.12 or the 
determination of compensation under this or any other
Article 
of this Code.


    The age enhancement established under this Section may not 
be used to
enable any person to begin receiving a retirement 
annuity calculated under
Section 14-110 before actually 
attaining age 50 (without any age enhancement
under this 
Section).  The age enhancement established under this Section 
may
be used for all other purposes under this Article 
(including calculation of
a proportionate annuity payable by 
this System under the Retirement Systems
Reciprocal Act), 
except for purposes of the level income option in Section

14-112, the reversionary annuity under Section 14-113, and the 
required
distributions under Section 14-121.1.


    The age enhancement established under this Section may be 
used in
determining benefits payable under Article 16 of this 
Code under the
Retirement Systems Reciprocal Act, if the person 
has at least 5 years of
service credit in the Article 16 system 
that was earned while participating
in that system as a teacher 
(as defined in Section 16-106) employed by a
department (as 
defined in Section 14-103.04).
Age enhancement established 
under this Section shall not otherwise be used
in determining 
benefits payable under other Articles of this Code under the

Retirement Systems Reciprocal Act.


    (c) For all creditable service established under this 
Section, a person
must pay to the System an employee 
contribution to be determined by the
System, based on the 
member's rate of compensation on June 1, 2002 (or
the last date 
before June 1, 2002 for which a rate can be determined) and
the 
retirement contribution rate in effect on June 1, 2002 for the 
member
(or for members with the same social security and 
alternative formula status
as the member).


    If the member receives a lump sum payment for accumulated 
vacation, sick
leave and personal leave upon withdrawal from 
service, and the net amount of
that lump sum payment is at 
least as great as the amount of the contribution
required under 
this Section, the entire contribution must be paid by the

employee by payroll deduction.  If there is no such lump sum 
payment, or if
it is less than the contribution required under 
this Section, the member shall
make an initial payment by 
payroll deduction, equal to the net amount of the
lump sum 
payment for accumulated vacation, sick leave, and personal 
leave,
and have the remaining amount due treated as a reduction 
from the retirement
annuity in 24 equal monthly installments 
beginning in the month in which the
retirement annuity takes 
effect.  The required contribution may be paid as a
pre-tax 
deduction from earnings.  For federal and Illinois tax purposes, 
the
monthly amount by which the annuitant's benefit is reduced 
shall not be
treated as a contribution by the annuitant, but 
rather as a reduction of the
annuitant's monthly benefit.


    (c-5)  The reduction in retirement annuity provided in 
subsection (c) of
Section 14-108 does not apply to the annuity 
of a person who retires under this
Section.  A person who has 
received any age enhancement or creditable service
under this 
Section may begin to receive an unreduced retirement annuity 
upon
attainment of age 55 with at least 25 years of creditable 
service (including
any age enhancement and creditable service 
established under this Section).


    (d) In order to ensure that the efficient operation of 
State government
is not jeopardized by the simultaneous 
retirement of large numbers of key
personnel, the director or 
other head of a department may, for key employees
of that 
department, extend the December 31, 2002 deadline for 
terminating
employment under this Article established in 
subdivision (a)(4) of this
Section to a date not later than 
April 30, 2003 by so notifying the System
in writing by 
December 31, 2002.


    (e) Notwithstanding Section 14-111, a person who has 
received any
age enhancement or creditable service under this 
Section and who reenters
service under this Article (or as an 
employee of a department under Article
16) other than as a 
temporary employee thereby forfeits that age enhancement
and 
creditable service and is entitled to a refund of the 
contributions
made pursuant to this Section.


    (f) The System shall determine the amount of the increase 
in the present value of future benefits resulting from the 
granting of early retirement incentives
under this Section and 
shall report that amount to the Governor and the Commission on 
Government Forecasting and Accountability
on or after the 
effective date of this amendatory Act of the 93rd General 
Assembly and on or before November 15,
2004.  Beginning with 
State fiscal year 2008, the
The increase
reported under this 
subsection (f) shall not be included in the
calculation of the 
required State contribution under Section 14-131.


    (g) In addition to the contributions otherwise required 
under this Article,
the State shall appropriate and pay to the 
System (1) an amount equal to
$70,000,000 in State fiscal years 
2004 and 2005 and (2) in each of State fiscal years 2006 
through 2015, a level dollar-payment based upon the increase in 
the present value of future benefits provided by the early 
retirement incentives provided under this Section amortized at 
8.5% interest.


    (h) The Commission on Government Forecasting and 
Accountability (i) shall hold one or more hearings on or before 
the last session day during the fall veto session of 2004 to 
review recommendations relating to funding of early retirement 
incentives under this Section and (ii) shall file its report 
with the General Assembly on or before December 31, 2004 making 
its recommendations relating to funding of early retirement 
incentives under this Section; the Commission's report may 
contain both majority recommendations and minority 
recommendations.  The System shall recalculate and recertify to 
the Governor by January 31, 2005 the amount of the required 
State contribution to the System for State fiscal year 2005 
with respect to those incentives. The Pension Laws Commission 
(or its successor, the
Commission on Government Forecasting and 
Accountability) shall determine
and report to the General

Assembly, on or before January 1, 2004 and annually thereafter 
through the year
2013, its estimate of (1) the annual amount of 
payroll savings likely to be
realized by the State as a result 
of the early retirement of persons receiving
early retirement 
incentives under this Section and (2) the net annual savings
or 
cost to the State from the program of early retirement 
incentives created
under this Section.


    The System, the Department of Central Management Services, 
the
Governor's Office of Management and Budget (formerly
Bureau 
of
the Budget), and all other departments shall provide to the 
Commission any
assistance that the Commission may request with 
respect to its reports under
this Section.  The Commission may 
require departments to provide it with any
information that it 
deems necessary or useful with respect to its reports under

this Section, including without limitation information about 
(1) the final
earnings of former department employees who 
elected to receive benefits under
this Section, (2) the 
earnings of current department employees holding the
positions 
vacated by persons who elected to receive benefits under this

Section, and (3) positions vacated by persons who elected to 
receive benefits
under this Section that have not yet been 
refilled.


    (i) The changes made to this Section by this amendatory Act 
of the 92nd
General Assembly do not apply to persons who 
retired under this Section on or
before May 1, 1992.


(Source: P.A. 92-566, eff. 6-25-02; 93-632, eff. 2-1-04; 
93-839, eff. 7-30-04; 93-1067, eff. 1-15-05.)

 



    (40 ILCS 5/14-110)  (from Ch. 108 1/2, par. 14-110)


    Sec. 14-110. Alternative retirement annuity. 

    (a) Any member who has withdrawn from service with not less 
than 20
years of eligible creditable service and has attained 
age 55, and any
member who has withdrawn from service with not 
less than 25 years of
eligible creditable service and has 
attained age 50, regardless of whether
the attainment of either 
of the specified ages occurs while the member is
still in 
service, shall be entitled to receive at the option of the 
member,
in lieu of the regular or minimum retirement annuity, a 
retirement  annuity
computed as follows:


        (i) for periods of service as a noncovered employee:
if 
    retirement occurs on or after January 1, 2001, 3% of final

    average compensation for each year of creditable service; 
    if retirement occurs
before January 1, 2001, 2 1/4% of 
    final average compensation for each of the
first 10 years 
    of creditable service, 2 1/2% for each year above 10 years 
    to
and including 20 years of creditable service, and 2 3/4% 
    for each year of
creditable service above 20 years; and


        (ii) for periods of eligible creditable service as a 
    covered employee:
if retirement occurs on or after January 
    1, 2001, 2.5% of final average
compensation for each year 
    of creditable service; if retirement occurs before
January 
    1, 2001, 1.67% of final average compensation for each of 
    the first
10 years of such service, 1.90% for each of the 
    next 10 years of such service,
2.10% for each year of such 
    service in excess of 20 but not exceeding 30, and
2.30% for 
    each year in excess of 30.

    Such annuity shall be subject to a maximum of 75% of final 
average
compensation if retirement occurs before January 1, 
2001 or to a maximum
of 80% of final average compensation if 
retirement occurs on or after January
1, 2001.

    These rates shall not be applicable to any service 
performed
by a member as a covered employee which is not 
eligible creditable service.
 Service as a covered employee 
which is not eligible creditable service
shall be subject to 
the rates and provisions of Section 14-108.

    (b) For the purpose of this Section, "eligible creditable 
service" means
creditable service resulting from service in one 
or more of the following
positions:


        (1) State policeman;


        (2) fire fighter in the fire protection service of a 
    department;


        (3) air pilot;


        (4) special agent;


        (5) investigator for the Secretary of State;


        (6) conservation police officer;


        (7) investigator for the Department of Revenue;


        (8) security employee of the Department of Human 
    Services;


        (9) Central Management Services security police 
    officer;


        (10) security employee of the Department of 
    Corrections;


        (11) dangerous drugs investigator;


        (12) investigator for the Department of State Police;


        (13) investigator for the Office of the Attorney 
    General;


        (14) controlled substance inspector;


        (15) investigator for the Office of the State's 
    Attorneys Appellate
Prosecutor;


        (16) Commerce Commission police officer;


        (17) arson investigator;


        (18) State highway maintenance worker.

    A person employed in one of the positions specified in this 
subsection is
entitled to eligible creditable service for 
service credit earned under this
Article while undergoing the 
basic police training course approved by the
Illinois Law 
Enforcement Training
Standards Board, if
completion of that 
training is required of persons serving in that position.
For 
the purposes of this Code, service during the required basic 
police
training course shall be deemed performance of the 
duties of the specified
position, even though the person is not 
a sworn peace officer at the time of
the training.

    (c) For the purposes of this Section:


        (1) The term "state policeman" includes any title or 
    position
in the Department of State Police that is held by 
    an individual employed
under the State Police Act.


        (2) The term "fire fighter in the fire protection 
    service of a
department" includes all officers in such fire 
    protection service
including fire chiefs and assistant 
    fire chiefs.


        (3) The term "air pilot" includes any employee whose 
    official job
description on file in the Department of 
    Central Management Services, or
in the department by which 
    he is employed if that department is not covered
by the 
    Personnel Code, states that his principal duty is the 
    operation of
aircraft, and who possesses a pilot's license; 
    however, the change in this
definition made by this 
    amendatory Act of 1983 shall not operate to exclude
any 
    noncovered employee who was an "air pilot" for the purposes 
    of this
Section on January 1, 1984.


        (4) The term "special agent" means any person who by 
    reason of
employment by the Division of Narcotic Control, 
    the Bureau of Investigation
or, after July 1, 1977, the 
    Division of Criminal Investigation, the
Division of 
    Internal Investigation, the Division of Operations, or any

    other Division or organizational
entity in the Department 
    of State Police is vested by law with duties to
maintain 
    public order, investigate violations of the criminal law of 
    this
State, enforce the laws of this State, make arrests 
    and recover property.
The term "special agent" includes any 
    title or position in the Department
of State Police that is 
    held by an individual employed under the State
Police Act.


        (5) The term "investigator for the Secretary of State" 
    means any person
employed by the Office of the Secretary of 
    State and vested with such
investigative duties as render 
    him ineligible for coverage under the Social
Security Act 
    by reason of Sections 218(d)(5)(A), 218(d)(8)(D) and 
    218(l)(1)
of that Act.


        A person who became employed as an investigator for the 
    Secretary of
State between January 1, 1967 and December 31, 
    1975, and who has served as
such until attainment of age 
    60, either continuously or with a single break
in service 
    of not more than 3 years duration, which break terminated 
    before
January 1, 1976, shall be entitled to have his 
    retirement annuity
calculated  in accordance with 
    subsection (a), notwithstanding
that he has less than 20 
    years of credit for such service.


        (6) The term "Conservation Police Officer" means any 
    person employed
by the Division of Law Enforcement of the 
    Department of Natural Resources and
vested with such law 
    enforcement duties as render him ineligible for coverage

    under the Social Security Act by reason of Sections 
    218(d)(5)(A), 218(d)(8)(D),
and 218(l)(1) of that Act.  The 
    term "Conservation Police Officer" includes
the positions 
    of Chief Conservation Police Administrator and Assistant

    Conservation Police Administrator.


        (7) The term "investigator for the Department of 
    Revenue" means any
person employed by the Department of 
    Revenue and vested with such
investigative duties as render 
    him ineligible for coverage under the Social
Security Act 
    by reason of Sections 218(d)(5)(A), 218(d)(8)(D) and 
    218(l)(1)
of that Act.


        (8) The term "security employee of the Department of 
    Human Services"
means any person employed by the Department 
    of Human Services who (i) is
employed at the Chester Mental 
    Health Center and has daily contact with the
residents 
    thereof, (ii) is employed within a security unit at a 
    facility
operated by the Department and has daily contact 
    with the residents of the
security unit, (iii) is employed 
    at a facility operated by the Department
that includes a 
    security unit and is regularly scheduled to work at least

    50% of his or her working hours within that security unit, 
    or (iv) is a mental health police officer.
"Mental health 
    police officer" means any person employed by the Department 
    of
Human Services in a position pertaining to the 
    Department's mental health and
developmental disabilities 
    functions who is vested with such law enforcement
duties as 
    render the person ineligible for coverage under the Social 
    Security
Act by reason of Sections 218(d)(5)(A), 
    218(d)(8)(D) and 218(l)(1) of that
Act.  "Security unit" 
    means that portion of a facility that is devoted to
the 
    care, containment, and treatment of persons committed to 
    the Department of
Human Services as sexually violent 
    persons, persons unfit to stand trial, or
persons not 
    guilty by reason of insanity.  With respect to past 
    employment,
references to the Department of Human Services 
    include its predecessor, the
Department of Mental Health 
    and Developmental Disabilities.


        The changes made to this subdivision (c)(8) by Public 
    Act 92-14 apply to persons who retire on or after January 
    1,
2001, notwithstanding Section 1-103.1.


        (9) "Central Management Services security police 
    officer" means any
person employed by the Department of 
    Central Management Services who is
vested with such law 
    enforcement duties as render him ineligible for
coverage 
    under the Social Security Act by reason of Sections 
    218(d)(5)(A),
218(d)(8)(D) and 218(l)(1) of that Act.


        (10) For a member who first became an employee under 
    this Article before July 1, 2005, the
The term "security 
    employee of the Department of Corrections"
means any 
    employee of the Department of Corrections or the former

    Department of Personnel, and any member or employee of the 
    Prisoner
Review Board, who has daily contact with inmates 
    by working within a
correctional facility or who is a 
    parole officer or an employee who has
direct contact with 
    committed persons in the performance of his or her
job 
    duties. For a member who first becomes an employee under 
    this Article on or after July 1, 2005, the  term means  an 
    employee of the Department of Corrections who is any of the 
    following: (i) officially headquartered at a correctional 
    facility, (ii) a parole officer, (iii) a member of the 
    apprehension unit, (iv) a member of the intelligence unit, 
    (v) a member of the sort team, or (vi) an investigator.


        (11) The term "dangerous drugs investigator" means any 
    person who is
employed as such by the Department of Human 
    Services.


        (12) The term "investigator for the Department of State 
    Police" means
a person employed by the Department of State 
    Police who is vested under
Section 4 of the Narcotic 
    Control Division Abolition Act with such
law enforcement 
    powers as render him ineligible for coverage under the

    Social Security Act by reason of Sections 218(d)(5)(A), 
    218(d)(8)(D) and
218(l)(1) of that Act.


        (13) "Investigator for the Office of the Attorney 
    General" means any
person who is employed as such by the 
    Office of the Attorney General and
is vested with such 
    investigative duties as render him ineligible for
coverage 
    under the Social Security Act by reason of Sections 
    218(d)(5)(A),
218(d)(8)(D) and 218(l)(1) of that Act.  For 
    the period before January 1,
1989, the term includes all 
    persons who were employed as investigators by the
Office of 
    the Attorney General, without regard to social security 
    status.


        (14) "Controlled substance inspector" means any person 
    who is employed
as such by the Department of Professional 
    Regulation and is vested with such
law enforcement duties 
    as render him ineligible for coverage under the Social

    Security Act by reason of Sections 218(d)(5)(A), 
    218(d)(8)(D) and 218(l)(1) of
that Act.  The term 
    "controlled substance inspector" includes the Program

    Executive of Enforcement and the Assistant Program 
    Executive of Enforcement.


        (15) The term "investigator for the Office of the 
    State's Attorneys
Appellate Prosecutor" means a person 
    employed in that capacity on a full
time basis under the 
    authority of Section 7.06 of the State's Attorneys

    Appellate Prosecutor's Act.


        (16) "Commerce Commission police officer" means any 
    person employed
by the Illinois Commerce Commission who is 
    vested with such law
enforcement duties as render him 
    ineligible for coverage under the Social
Security Act by 
    reason of Sections 218(d)(5)(A), 218(d)(8)(D), and

    218(l)(1) of that Act.


        (17) "Arson investigator" means any person who is 
    employed as such by
the Office of the State Fire Marshal 
    and is vested with such law enforcement
duties as render 
    the person ineligible for coverage under the Social 
    Security
Act by reason of Sections 218(d)(5)(A), 
    218(d)(8)(D), and 218(l)(1) of that
Act.  A person who was 
    employed as an arson
investigator on January 1, 1995 and is 
    no longer in service but not yet
receiving a retirement 
    annuity may convert his or her creditable service for

    employment as an arson investigator into eligible 
    creditable service by paying
to the System the difference 
    between the employee contributions actually paid
for that 
    service and the amounts that would have been contributed if 
    the
applicant were contributing at the rate applicable to 
    persons with the same
social security status earning 
    eligible creditable service on the date of
application.


        (18) The term "State highway maintenance worker" means 
    a person who is
either of the following:


            (i) A person employed on a full-time basis by the 
        Illinois
Department of Transportation in the position 
        of
highway maintainer,
highway maintenance lead 
        worker,
highway maintenance lead/lead worker,
heavy 
        construction equipment operator,
power shovel 
        operator, or
bridge mechanic; and
whose principal 
        responsibility is to perform, on the roadway, the 
        actual
maintenance necessary to keep the highways that 
        form a part of the State
highway system in serviceable 
        condition for vehicular traffic.


            (ii) A person employed on a full-time basis by the 
        Illinois
State Toll Highway Authority in the position 
        of
equipment operator/laborer H-4,
equipment  
        operator/laborer  H-6,
welder  H-4,
welder  H-6,

        mechanical/electrical H-4,
mechanical/electrical H-6,

        water/sewer H-4,
water/sewer H-6,
sign maker/hanger 
        H-4,
sign maker/hanger H-6,
roadway lighting H-4,

        roadway lighting H-6,
structural H-4,
structural H-6,

        painter H-4, or
painter H-6; and
whose principal 
        responsibility is to perform, on the roadway, the 
        actual
maintenance necessary to keep the Authority's 
        tollways in serviceable condition
for vehicular 
        traffic.

    (d) A security employee of the Department of Corrections, 
and a security
employee of the Department of Human Services who 
is not a mental health police
officer, shall not be eligible 
for the alternative retirement annuity provided
by this Section 
unless he or she meets the following minimum age and service

requirements at the time of retirement:


        (i) 25 years of eligible creditable service and age 55; 
    or


        (ii) beginning January 1, 1987, 25 years of eligible 
    creditable service
and age 54, or 24 years of eligible 
    creditable service and age 55; or


        (iii) beginning January 1, 1988, 25 years of eligible 
    creditable service
and age 53, or 23 years of eligible 
    creditable service and age 55; or


        (iv) beginning January 1, 1989, 25 years of eligible 
    creditable service
and age 52, or 22 years of eligible 
    creditable service and age 55; or


        (v) beginning January 1, 1990, 25 years of eligible 
    creditable service
and age 51, or 21 years of eligible 
    creditable service and age 55; or


        (vi) beginning January 1, 1991, 25 years of eligible 
    creditable service
and age 50, or 20 years of eligible 
    creditable service and age 55.

    Persons who have service credit under Article 16 of this 
Code for service
as a security employee of the Department of 
Corrections or the Department
of Human Services in a position 
requiring certification as a teacher may
count such service 
toward establishing their eligibility under the service

requirements of this Section; but such service may be used only 
for
establishing such eligibility, and not for the purpose of 
increasing or
calculating any benefit.

    (e) If a member enters military service while working in a 
position in
which eligible creditable service may be earned, 
and returns to State
service in the same or another such 
position, and fulfills in all other
respects the conditions 
prescribed in this Article for credit for military
service, 
such military service shall be credited as eligible creditable

service for the purposes of the retirement annuity prescribed 
in this Section.

    (f) For purposes of calculating retirement annuities under 
this
Section, periods of service rendered after December 31, 
1968 and before
October 1, 1975 as a covered employee in the 
position of special agent,
conservation police officer, mental 
health police officer, or investigator
for the Secretary of 
State, shall be deemed to have been service as a
noncovered 
employee, provided that the employee pays to the System prior 
to
retirement an amount equal to (1) the difference between the 
employee
contributions that would have been required for such 
service as a
noncovered employee, and the amount of employee 
contributions actually
paid, plus (2) if payment is made after 
July 31, 1987, regular interest
on the amount specified in item 
(1) from the date of service to the date
of payment.

    For purposes of calculating retirement annuities under 
this Section,
periods of service rendered after December 31, 
1968 and before January 1,
1982 as a covered employee in the 
position of investigator for the
Department of Revenue shall be 
deemed to have been service as a noncovered
employee, provided 
that the employee pays to the System prior to retirement
an 
amount equal to (1) the difference between the employee 
contributions
that would have been required for such service as 
a noncovered employee,
and the amount of employee contributions 
actually paid, plus (2) if payment
is made after January 1, 
1990, regular interest on the amount specified in
item (1) from 
the date of service to the date of payment.

    (g) A State policeman may elect, not later than January 1, 
1990, to
establish eligible creditable service for up to 10 
years of his service as
a policeman under Article 3, by filing 
a written election with the Board,
accompanied by payment of an 
amount to be determined by the Board, equal to
(i) the 
difference between the amount of employee and employer

contributions transferred to the System under Section 3-110.5, 
and the
amounts that would have been contributed had such 
contributions been made
at the rates applicable to State 
policemen, plus (ii) interest thereon at
the effective rate for 
each year, compounded annually, from the date of
service to the 
date of payment.

    Subject to the limitation in subsection (i), a State 
policeman may elect,
not later than July 1, 1993, to establish 
eligible creditable service for
up to 10 years of his service 
as a member of the County Police Department
under Article 9, by 
filing a written election with the Board, accompanied
by 
payment of an amount to be determined by the Board, equal to 
(i) the
difference between the amount of employee and employer 
contributions
transferred to the System under Section 9-121.10 
and the amounts that would
have been contributed had those 
contributions been made at the rates
applicable to State 
policemen, plus (ii) interest thereon at the effective
rate for 
each year, compounded annually, from the date of service to the

date of payment.

    (h) Subject to the limitation in subsection (i), a State 
policeman or
investigator for the Secretary of State may elect 
to establish eligible
creditable service for up to 12 years of 
his service as a policeman under
Article 5, by filing a written 
election with the Board on or before January
31, 1992, and 
paying to the System by January 31, 1994 an amount to be

determined by the Board, equal to (i) the difference between 
the amount of
employee and employer contributions transferred 
to the System under Section
5-236, and the amounts that would 
have been contributed had such
contributions been made at the 
rates applicable to State policemen, plus
(ii) interest thereon 
at the effective rate for each year, compounded
annually, from 
the date of service to the date of payment.

    Subject to the limitation in subsection (i), a State 
policeman,
conservation police officer, or investigator for 
the Secretary of State may
elect to establish eligible 
creditable service for up to 10 years of
service as a sheriff's 
law enforcement employee under Article 7, by filing
a written 
election with the Board on or before January 31, 1993, and 
paying
to the System by January 31, 1994 an amount to be 
determined by the Board,
equal to (i) the difference between 
the amount of employee and
employer contributions transferred 
to the System under Section
7-139.7, and the amounts that would 
have been contributed had such
contributions been made at the 
rates applicable to State policemen, plus
(ii) interest thereon 
at the effective rate for each year, compounded
annually, from 
the date of service to the date of payment.

    (i) The total amount of eligible creditable service 
established by any
person under subsections (g), (h), (j), (k), 
and (l) of this
Section shall not exceed 12 years.

    (j) Subject to the limitation in subsection (i), an 
investigator for
the Office of the State's Attorneys Appellate 
Prosecutor or a controlled
substance inspector may elect to

establish eligible creditable service for up to 10 years of his 
service as
a policeman under Article 3 or a sheriff's law 
enforcement employee under
Article 7, by filing a written 
election with the Board, accompanied by
payment of an amount to 
be determined by the Board, equal to (1) the
difference between 
the amount of employee and employer contributions
transferred 
to the System under Section 3-110.6 or 7-139.8, and the amounts

that would have been contributed had such contributions been 
made at the
rates applicable to State policemen, plus (2) 
interest thereon at the
effective rate for each year, 
compounded annually, from the date of service
to the date of 
payment.

    (k) Subject to the limitation in subsection (i) of this 
Section, an
alternative formula employee may elect to establish 
eligible creditable
service for periods spent as a full-time 
law enforcement officer or full-time
corrections officer 
employed by the federal government or by a state or local

government located outside of Illinois, for which credit is not 
held in any
other public employee pension fund or retirement 
system.  To obtain this
credit, the applicant must file a 
written application with the Board by March
31, 1998, 
accompanied by evidence of eligibility acceptable to the Board 
and
payment of an amount to be determined by the Board, equal 
to (1) employee
contributions for the credit being established, 
based upon the applicant's
salary on the first day as an 
alternative formula employee after the employment
for which 
credit is being established and the rates then applicable to

alternative formula employees, plus (2) an amount determined by 
the Board
to be the employer's normal cost of the benefits 
accrued for the credit being
established, plus (3) regular 
interest on the amounts in items (1) and (2) from
the first day 
as an alternative formula employee after the employment for 
which
credit is being established to the date of payment.

    (l) Subject to the limitation in subsection (i), a security 
employee of
the Department of Corrections may elect, not later 
than July 1, 1998, to
establish eligible creditable service for 
up to 10 years of his or her service
as a policeman under 
Article 3, by filing a written election with the Board,

accompanied by payment of an amount to be determined by the 
Board, equal to
(i) the difference between the amount of 
employee and employer contributions
transferred to the System 
under Section 3-110.5, and the amounts that would
have been 
contributed had such contributions been made at the rates 
applicable
to security employees of the Department of 
Corrections, plus (ii) interest
thereon at the effective rate 
for each year, compounded annually, from the date
of service to 
the date of payment.

(Source: P.A. 91-357, eff. 7-29-99; 91-760, eff. 1-1-01; 92-14, 
eff.
6-28-01; 92-257, eff. 8-6-01; 92-651, eff. 7-11-02.)


 



    (40 ILCS 5/14-131)
  (from Ch. 108 1/2, par. 14-131)



    Sec. 14-131. Contributions by State. 

    (a) The State shall make contributions to the System by 
appropriations of
amounts which, together with other employer 
contributions from trust, federal,
and other funds, employee 
contributions, investment income, and other income,
will be 
sufficient to meet the cost of maintaining and administering 
the System
on a 90% funded basis in accordance with actuarial 
recommendations.

    For the purposes of this Section and Section 14-135.08, 
references to State
contributions refer only to employer 
contributions and do not include employee
contributions that 
are picked up or otherwise paid by the State or a
department on 
behalf of the employee.

    (b) The Board shall determine the total amount of State 
contributions
required for each fiscal year on the basis of the 
actuarial tables and other
assumptions adopted by the Board, 
using the formula in subsection (e).

    The Board shall also determine a State contribution rate 
for each fiscal
year, expressed as a percentage of payroll, 
based on the total required State
contribution for that fiscal 
year (less the amount received by the System from

appropriations under Section 8.12 of the State Finance Act and 
Section 1 of the
State Pension Funds Continuing Appropriation 
Act, if any, for the fiscal year
ending on the June 30 
immediately preceding the applicable November 15
certification 
deadline), the estimated payroll (including all forms of

compensation) for personal services rendered by eligible 
employees, and the
recommendations of the actuary.

    For the purposes of this Section and Section 14.1 of the 
State Finance Act,
the term "eligible employees" includes 
employees who participate in the System,
persons who may elect 
to participate in the System but have not so elected,
persons 
who are serving a qualifying period that is required for 
participation,
and annuitants employed by a department as 
described in subdivision (a)(1) or
(a)(2) of Section 14-111.

    (c) Contributions shall be made by the several departments 
for each pay
period by warrants drawn by the State Comptroller 
against their respective
funds or appropriations based upon 
vouchers stating the amount to be so
contributed.  These amounts 
shall be based on the full rate certified by the
Board under 
Section 14-135.08 for that fiscal year.
From the effective date 
of this amendatory Act of the 93rd General
Assembly through the 
payment of the final payroll from fiscal year 2004

appropriations, the several departments shall not make 
contributions
for the remainder of fiscal year 2004 but shall 
instead make payments
as required under subsection (a-1) of 
Section 14.1 of the State Finance Act.
The several departments 
shall resume those contributions at the commencement of
fiscal 
year 2005.

    (d) If an employee is paid from trust funds or federal 
funds, the
department or other employer shall pay employer 
contributions from those funds
to the System at the certified 
rate, unless the terms of the trust or the
federal-State 
agreement preclude the use of the funds for that purpose, in

which case the required employer contributions shall be paid by 
the State.
From the effective date of this amendatory
Act of 
the 93rd General Assembly through the payment of the final

payroll from fiscal year 2004 appropriations, the department or 
other
employer shall not pay contributions for the remainder of 
fiscal year
2004 but shall instead make payments as required 
under subsection (a-1) of
Section 14.1 of the State Finance 
Act. The department or other employer shall
resume payment of

contributions at the commencement of fiscal year 2005.

    (e) For State fiscal years 2011 through 2045, the minimum 
contribution
to the System to be made by the State for each 
fiscal year shall be an amount
determined by the System to be 
sufficient to bring the total assets of the
System up to 90% of 
the total actuarial liabilities of the System by the end
of 
State fiscal year 2045.  In making these determinations, the 
required State
contribution shall be calculated each year as a 
level percentage of payroll
over the years remaining to and 
including fiscal year 2045 and shall be
determined under the 
projected unit credit actuarial cost method.

    For State fiscal years 1996 through 2005
2010, the State 
contribution to
the System, as a percentage of the applicable 
employee payroll, shall be
increased in equal annual increments 
so that by State fiscal year 2011, the
State is contributing at 
the rate required under this Section; except that
(i) for State 
fiscal year 1998, for all purposes of this Code and any other

law of this State, the certified percentage of the applicable 
employee payroll
shall be 5.052% for employees earning eligible 
creditable service under Section
14-110 and 6.500% for all 
other employees, notwithstanding any contrary
certification 
made under Section 14-135.08 before the effective date of this

amendatory Act of 1997, and (ii)
in the following specified 
State fiscal years, the State contribution to
the System shall 
not be less than the following indicated percentages of the

applicable employee payroll, even if the indicated percentage 
will produce a
State contribution in excess of the amount 
otherwise required under this
subsection and subsection (a):

9.8% in FY 1999;
10.0% in FY 2000;
10.2% in FY 2001;
10.4% in FY 
2002;
10.6% in FY 2003; and
10.8% in FY 2004.

    Notwithstanding any other provision of this Article, the 
total required State
contribution to the System for State 
fiscal year 2006 is $203,783,900.

    Notwithstanding any other provision of this Article, the 
total required State
contribution to the System for State 
fiscal year 2007 is $344,164,400.

    For each of State fiscal years 2008 through 2010, the State 
contribution to
the System, as a percentage of the applicable 
employee payroll, shall be
increased in equal annual increments 
from the required State contribution for State fiscal year 
2007, so that by State fiscal year 2011, the
State is 
contributing at the rate otherwise required under this Section.

    Beginning in State fiscal year 2046, the minimum State 
contribution for
each fiscal year shall be the amount needed to 
maintain the total assets of
the System at 90% of the total 
actuarial liabilities of the System.

    Notwithstanding any other provision of this Section, the 
required State
contribution for State fiscal year 2005 and for 
fiscal year 2008 and each fiscal year thereafter, as
calculated 
under this Section and
certified under Section 14-135.08, shall 
not exceed an amount equal to (i) the
amount of the required 
State contribution that would have been calculated under
this 
Section for that fiscal year if the System had not received any 
payments
under subsection (d) of Section 7.2 of the General 
Obligation Bond Act, minus
(ii) the portion of the State's 
total debt service payments for that fiscal
year on the bonds 
issued for the purposes of that Section 7.2, as determined
and 
certified by the Comptroller, that is the same as the System's 
portion of
the total moneys distributed under subsection (d) of 
Section 7.2 of the General
Obligation Bond Act. In determining 
this maximum for State fiscal years 2008 through 2010, however, 
the amount referred to in item (i) shall be increased, as a 
percentage of the applicable employee payroll, in equal 
increments calculated from the sum of the required State 
contribution for State fiscal year 2007 plus the applicable 
portion of the State's total debt service payments for fiscal 
year 2007  on the bonds issued for the purposes of Section 7.2 
of the General
Obligation Bond Act, so that, by State fiscal 
year 2011, the
State is contributing at the rate otherwise 
required under this Section.

    (f) After the submission of all payments for eligible 
employees
from personal services line items in fiscal year 2004 
have been made,
the Comptroller shall provide to the System a 
certification of the sum
of all fiscal year 2004 expenditures 
for personal services that would
have been covered by payments 
to the System under this Section if the
provisions of this 
amendatory Act of the 93rd General Assembly had not been

enacted. Upon
receipt of the certification, the System shall 
determine the amount
due to the System based on the full rate 
certified by the Board under
Section 14-135.08 for fiscal year 
2004 in order to meet the State's
obligation under this 
Section. The System shall compare this amount
due to the amount 
received by the System in fiscal year 2004 through
payments 
under this Section and under Section 6z-61 of the State Finance 
Act.
If the amount
due is more than the amount received, the 
difference shall be termed the
"Fiscal Year 2004 Shortfall" for 
purposes of this Section, and the
Fiscal Year 2004 Shortfall 
shall be satisfied under Section 1.2 of the State
Pension Funds 
Continuing Appropriation Act. If the amount due is less than 
the
amount received, the
difference shall be termed the "Fiscal 
Year 2004 Overpayment" for purposes of
this Section, and the 
Fiscal Year 2004 Overpayment shall be repaid by
the System to 
the Pension Contribution Fund as soon as practicable
after the 
certification.

(Source: P.A. 93-2, eff. 4-7-03; 93-665, eff. 3-5-04.)

 



    (40 ILCS 5/14-135.08)  (from Ch. 108 1/2, par. 14-135.08)


    Sec. 14-135.08. To certify required State contributions. 
    (a)
To certify to the Governor and to each department, on 
or before
November 15 of each year, the required rate for State 
contributions to the
System for the next State fiscal year, as 
determined under subsection (b) of
Section 14-131.  The 
certification to the Governor shall include a copy of the

actuarial recommendations upon which the rate is based.

    (b) The certification shall include an additional amount 
necessary to pay all principal of and interest on those general 
obligation bonds due the next fiscal year authorized by Section 
7.2(a) of the General Obligation Bond Act and issued to provide 
the proceeds deposited by the State with the System in July 
2003, representing deposits other than amounts reserved under 
Section 7.2(c) of the General Obligation Bond Act. For State 
fiscal year 2005, the Board shall make a supplemental 
certification of the additional amount necessary to pay all 
principal of and interest on those general obligation bonds due 
in State fiscal years 2004 and 2005 authorized by Section 
7.2(a) of the General Obligation Bond Act  and issued to provide 
the proceeds deposited by the State with the System in July 
2003, representing deposits other than amounts reserved under 
Section 7.2(c) of the General Obligation Bond Act, as soon as 
practical after the effective date of this amendatory Act of 
the 93rd General Assembly.

    On or before May 1, 2004, the Board shall recalculate and 
recertify
to the Governor and to each department the amount of 
the required State
contribution to the System and the required 
rates for State contributions
to the System for State fiscal 
year 2005, taking into account the amounts
appropriated to and 
received by the System under subsection (d) of Section
7.2 of 
the General Obligation Bond Act.

    On or before July 1, 2005, the Board shall recalculate and 
recertify
to the Governor and to each department the amount of 
the required State
contribution to the System and the required 
rates for State contributions
to the System for State fiscal 
year 2006, taking into account the changes in required State 
contributions made by this amendatory Act of the 94th General 
Assembly.

(Source: P.A. 93-2, eff. 4-7-03; 93-839, eff. 7-30-04.)

 
    (40 ILCS 5/14-152.1 new)

    Sec. 14-152.1. Application and expiration of new benefit 
increases.
    (a) As used in this Section, "new benefit increase" means 
an increase in the amount of any benefit provided under this 
Article, or an expansion of the conditions of  eligibility for 
any benefit under this Article, that results from an amendment 
to this Code that takes effect after the effective date of this 
amendatory Act of the 94th General Assembly.
    (b) Notwithstanding any other provision of this Code or any 
subsequent amendment to this Code, every  new benefit increase 
is subject to this Section and shall be deemed to be granted 
only in conformance with and contingent upon compliance with 
the provisions of this Section.

    (c) The Public Act enacting a new benefit increase must 
identify and provide for payment to the System of additional 
funding at least sufficient to fund the resulting annual 
increase in cost to  the System as it accrues.
    Every  new benefit increase is contingent upon the General 
Assembly providing the additional funding required under this 
subsection.   The Commission on Government Forecasting and 
Accountability shall analyze whether adequate additional 
funding has been provided for the new benefit increase and 
shall report its analysis to the Public Pension Division of the 
Department of Financial and Professional Regulation. A new 
benefit increase created by a Public Act that does not include 
the additional funding required under this subsection is null 
and void. If the Public Pension Division determines that the 
additional funding provided for a new benefit increase under 
this subsection is or has become inadequate, it may so certify 
to the Governor and the State Comptroller and, in the absence 
of corrective  action by the General Assembly, the new benefit 
increase shall expire at the end of the fiscal year in which 
the certification is made.

    (d) Every  new benefit increase shall expire 5 years after 
its effective date or on such earlier date as may be specified 
in the language enacting the new benefit increase or provided 
under subsection (c).  This does  not prevent the General 
Assembly from extending or re-creating a new benefit increase 
by law.
    (e) Except as otherwise provided in the language creating 
the new benefit increase,  a new benefit increase that expires 
under this Section continues to apply to persons who applied 
and qualified for the affected benefit while the new benefit 
increase  was in effect and to the affected beneficiaries and 
alternate payees of such persons, but does not apply to any 
other person, including without limitation a person  who 
continues in service after the expiration date and did not 
apply and qualify for the affected benefit while the new 
benefit increase was in effect.
 



    (40 ILCS 5/15-125)  (from Ch. 108 1/2, par. 15-125)


    Sec. 15-125. "Prescribed Rate of Interest; Effective Rate 
of Interest": 

    (1) "Prescribed rate of interest": The rate of interest to 
be used in
actuarial valuations and in development of actuarial 
tables as determined
by the board on the basis of the probable 
average effective rate of
interest on a long term basis.

    (2) "Effective rate of interest": The interest rate for all 
or any part of
a fiscal year that is determined by the board 
based
on factors including the system's past and expected 
investment experience;
historical and expected fluctuations in 
the market value of investments; the
desirability of minimizing 
volatility in the effective rate of interest from
year to year; 
and the provision of reserves for anticipated losses upon 
sales,
redemptions, or other disposition of investments and for 
variations in interest
experience; except that for the purpose 
of determining the accumulated normal contributions used in 
calculating retirement annuities under Rule 2 of Section 
15-136, the effective rate of interest shall be determined by 
the State  Comptroller rather than the board.  The State 
Comptroller shall determine the effective rate of interest to 
be used for this purpose using the factors listed above, and 
shall certify to the board and the Commission on Government 
Forecasting and Accountability the rate to be used for this 
purpose for fiscal year 2006 as soon as possible after the 
effective date of this amendatory Act of the 94th General 
Assembly, and for each fiscal year thereafter no later than the 
September 1 immediately preceding the start of that fiscal 
year.  
    (3) The change made to this Section by Public Acts 90-65 
and 90-511
This amendatory Act of 1997 is a clarification of 
existing law.

(Source: P.A. 90-65, eff. 7-7-97; 90-511, eff. 8-22-97.)

 



    (40 ILCS 5/15-136)  (from Ch. 108 1/2, par. 15-136)


    Sec. 15-136. Retirement annuities - Amount. The provisions 
of this
Section 15-136 apply only to those participants who are 
participating in the
traditional benefit package or the 
portable benefit package and do not
apply to participants who 
are participating in the self-managed plan.

    (a) The amount of a participant's retirement annuity, 
expressed in the form
of a single-life annuity, shall be 
determined by whichever of the following
rules is applicable 
and provides the largest annuity:

    Rule 1: The retirement annuity shall be 1.67% of final rate 
of earnings for
each of the first 10 years of service, 1.90% 
for each of the next 10 years of
service, 2.10% for each year 
of service in excess of 20 but not exceeding 30,
and 2.30% for 
each year in excess of 30; or for persons who retire on or

after January 1, 1998, 2.2% of the final rate of earnings for 
each year of
service.

    Rule 2: The retirement annuity shall be the sum of the 
following,
determined from amounts credited to the participant 
in accordance with the
actuarial tables and the prescribed rate 
of interest in effect at the
time the retirement annuity 
begins:


        (i) the normal annuity which can be provided on an 
    actuarially
equivalent basis, by the accumulated normal 
    contributions as of
the date the annuity begins;


        (ii) an annuity from employer contributions of an 
    amount equal to that
which can be provided on an 
    actuarially equivalent basis from the accumulated
normal 
    contributions made by the participant under Section 
    15-113.6 and Section
15-113.7 plus 1.4 times all other 
    accumulated normal contributions made by
the participant; 
    and


        (iii) the annuity that can be provided on an 
    actuarially equivalent basis
from the entire contribution 
    made by the participant under Section 15-113.3.

    With respect to a police officer or firefighter who retires 
on or after
August 14, 1998, the accumulated normal 
contributions taken into account under
clauses (i) and (ii) of 
this Rule 2 shall include the additional normal
contributions 
made by the police officer or firefighter under Section

15-157(a).

    The amount of a retirement annuity calculated under this 
Rule 2 shall
be computed solely on the basis of the 
participant's accumulated normal
contributions, as specified 
in this Rule and defined in Section 15-116.
Neither an employee 
or employer contribution for early retirement under
Section 
15-136.2 nor any other employer contribution shall be used in 
the
calculation of the amount of a retirement annuity under 
this Rule 2.

    This amendatory Act of the 91st General Assembly is a 
clarification of
existing law and applies to every participant 
and annuitant without regard to
whether status as an employee 
terminates before the effective date of this
amendatory Act.

    This Rule 2 does not apply to a person who first becomes an 
employee under this Article on or after July 1, 2005.

    Rule 3: The retirement annuity of a participant who is 
employed
at least one-half time during the period on which his 
or her final rate of
earnings is based, shall be equal to the 
participant's years of service
not to exceed 30, multiplied by 
(1) $96 if the participant's final rate
of earnings is less 
than $3,500, (2) $108 if the final rate of earnings is
at least 
$3,500 but less than $4,500, (3) $120 if the final rate of 
earnings
is at least $4,500 but less than $5,500, (4) $132 if 
the final rate
of earnings is at least $5,500 but less than 
$6,500, (5)
$144 if the final rate of earnings is at least 
$6,500 but less than
$7,500, (6) $156 if the final rate of 
earnings is at least $7,500 but less
than $8,500, (7) $168 if 
the final rate of earnings is at least $8,500 but
less than 
$9,500, and (8) $180 if the final rate of earnings is $9,500 or

more, except that the annuity for those persons having made an 
election under
Section 15-154(a-1) shall be calculated and 
payable under the portable
retirement benefit program pursuant 
to the provisions of Section 15-136.4.

    Rule 4: A participant who is at least age 50 and has 25 or 
more years of
service as a police officer or firefighter, and a 
participant who is age 55 or
over and has at least 20 but less 
than 25 years of service as a police officer
or firefighter, 
shall be entitled to a retirement annuity of 2 1/4% of the

final rate of earnings for each of the first 10 years of 
service as a police
officer or firefighter, 2 1/2% for each of 
the next 10 years of service as a
police officer or 
firefighter, and 2 3/4% for each year of service as a police

officer or firefighter in excess of 20.  The retirement annuity 
for all other
service shall be computed under Rule 1.

    For purposes of this Rule 4, a participant's service as a 
firefighter
shall also include the following:


        (i) service that is performed while the person is an 
    employee under
subsection (h) of Section 15-107; and


        (ii) in the case of an individual who was a 
    participating employee
employed in the fire department of 
    the University of Illinois's
Champaign-Urbana campus 
    immediately prior to the elimination of that fire

    department and who immediately after the elimination of 
    that fire department
transferred to another job with the 
    University of Illinois, service performed
as an employee of 
    the University of Illinois in a position other than police

    officer or firefighter, from the date of that transfer 
    until the employee's
next termination of service with the 
    University of Illinois.

    Rule 5: The retirement annuity of a participant who elected 
early
retirement under the provisions of Section 15-136.2 and 
who, on or before
February 16, 1995, brought administrative 
proceedings pursuant to the
administrative rules adopted by the 
System to challenge the calculation of his
or her retirement 
annuity shall be the sum of the following, determined from

amounts credited to the participant in accordance with the 
actuarial tables and
the prescribed rate of interest in effect 
at the time the retirement annuity
begins:


        (i) the normal annuity which can be provided on an 
    actuarially equivalent
basis, by the accumulated normal 
    contributions as of the date the annuity
begins; and


        (ii) an annuity from employer contributions of an 
    amount equal to that
which can be provided on an 
    actuarially equivalent basis from the accumulated
normal 
    contributions made by the participant under Section 
    15-113.6 and Section
15-113.7 plus 1.4 times all other 
    accumulated normal contributions made by the
participant; 
    and


        (iii) an annuity which can be provided on an 
    actuarially equivalent basis
from the employee 
    contribution for early retirement under Section 15-136.2, 
    and
an annuity from employer contributions of an amount 
    equal to that which can be
provided on an actuarially 
    equivalent basis from the employee contribution for
early 
    retirement under Section 15-136.2.

    In no event shall a retirement annuity under this Rule 5 be 
lower than the
amount obtained by adding (1) the monthly amount 
obtained by dividing the
combined employee and employer 
contributions made under Section 15-136.2 by the
System's 
annuity factor for the age of the participant at the beginning 
of the
annuity payment period and (2) the amount equal to the 
participant's annuity if
calculated under Rule 1, reduced under 
Section 15-136(b) as if no
contributions had been made under 
Section 15-136.2.

    With respect to a participant who is qualified for a 
retirement annuity under
this Rule 5 whose retirement annuity 
began before the effective date of this
amendatory Act of the 
91st General Assembly, and for whom an employee
contribution 
was made under Section 15-136.2, the System shall recalculate 
the
retirement annuity under this Rule 5 and shall pay any 
additional amounts due
in the manner provided in Section 
15-186.1 for benefits mistakenly set too low.

    The amount of a retirement annuity calculated under this 
Rule 5 shall be
computed solely on the basis of those 
contributions specifically set forth in
this Rule 5.  Except as 
provided in clause (iii) of this Rule 5, neither an
employee 
nor employer contribution for early retirement under Section 
15-136.2,
nor any other employer contribution, shall be used in 
the calculation of the
amount of a retirement annuity under 
this Rule 5.

    The General Assembly has adopted the changes set forth in 
Section 25 of this
amendatory Act of the 91st General Assembly 
in recognition that the decision of
the Appellate Court for the 
Fourth District in Mattis v. State Universities
Retirement 
System et al. might be deemed to give some right to the 
plaintiff in
that case.  The changes made by Section 25 of this 
amendatory Act of the 91st
General Assembly are a legislative 
implementation of the decision of the
Appellate Court for the 
Fourth District in Mattis v. State Universities
Retirement 
System et al. with respect to that plaintiff.

    The changes made by Section 25 of this amendatory Act of 
the 91st General
Assembly apply without regard to whether the 
person is in service as an
employee on or after its effective 
date.

    (b) The retirement annuity provided under Rules 1 and 3 
above shall be
reduced by 1/2 of 1% for each month the 
participant is under age 60 at the
time of retirement.  However, 
this reduction shall not apply in the following
cases:


        (1) For a disabled participant whose disability 
    benefits have been
discontinued because he or she has 
    exhausted eligibility for disability
benefits under clause 
    (6) of Section 15-152;


        (2) For a participant who has at least the number of 
    years of service
required to retire at any age under 
    subsection (a) of Section 15-135; or


        (3) For that portion of a retirement annuity which has 
    been provided on
account of service of the participant 
    during periods when he or she performed
the duties of a 
    police officer or firefighter, if these duties were 
    performed
for at least 5 years immediately preceding the 
    date the retirement annuity
is to begin.

    (c) The maximum retirement annuity provided under Rules 1, 
2, 4,
and 5
shall be the lesser of (1) the annual limit of 
benefits as specified in
Section 415 of the Internal Revenue 
Code of 1986, as such Section may be
amended from time to time 
and as such benefit limits shall be adjusted by
the 
Commissioner of Internal Revenue, and (2) 80% of final rate of

earnings.

    (d) An annuitant whose status as an employee terminates 
after August 14,
1969 shall receive automatic increases in his 
or her retirement annuity as
follows:

    Effective January 1 immediately following the date the 
retirement annuity
begins, the annuitant shall receive an 
increase in his or her monthly
retirement annuity of 0.125% of 
the monthly retirement annuity provided under
Rule 1, Rule 2, 
Rule 3, Rule 4, or Rule 5, contained in this
Section, 
multiplied by
the number of full months which elapsed from the 
date the retirement annuity
payments began to January 1, 1972, 
plus 0.1667% of such annuity, multiplied by
the number of full 
months which elapsed from January 1, 1972, or the date the

retirement annuity payments began, whichever is later, to 
January 1, 1978, plus
0.25% of such annuity multiplied by the 
number of full months which elapsed
from January 1, 1978, or 
the date the retirement annuity payments began,
whichever is 
later, to the effective date of the increase.

    The annuitant shall receive an increase in his or her 
monthly retirement
annuity on each January 1 thereafter during 
the annuitant's life of 3% of
the monthly annuity provided 
under Rule 1, Rule 2, Rule 3, Rule 4, or
Rule 5 contained
in 
this Section.  The change made under this subsection by P.A. 
81-970 is
effective January 1, 1980 and applies to each 
annuitant whose status as
an employee terminates before or 
after that date.

    Beginning January 1, 1990, all automatic annual increases 
payable under
this Section shall be calculated as a percentage 
of the total annuity
payable at the time of the increase, 
including all increases previously
granted under this Article.

    The change made in this subsection by P.A. 85-1008 is 
effective January
26, 1988, and is applicable without regard to 
whether status as an employee
terminated before that date.

    (e) If, on January 1, 1987, or the date the retirement 
annuity payment
period begins, whichever is later, the sum of 
the retirement annuity
provided under Rule 1 or Rule 2 of this 
Section
and the automatic annual increases provided under the 
preceding subsection
or Section 15-136.1, amounts to less than 
the retirement
annuity which would be provided by Rule 3, the 
retirement
annuity shall be increased as of January 1, 1987, or 
the date the
retirement annuity payment period begins, 
whichever is later, to the amount
which would be provided by 
Rule 3 of this Section. Such increased
amount shall be 
considered as the retirement annuity in determining
benefits 
provided under other Sections of this Article. This paragraph

applies without regard to whether status as an employee 
terminated before the
effective date of this amendatory Act of 
1987, provided that the annuitant was
employed at least 
one-half time during the period on which the final rate of

earnings was based.

    (f) A participant is entitled to such additional annuity as 
may be provided
on an actuarially equivalent basis, by any 
accumulated
additional contributions to his or her credit.  
However,
the additional contributions made by the participant 
toward the automatic
increases in annuity provided under this 
Section shall not be taken into
account in determining the 
amount of such additional annuity.

    (g) If, (1) by law, a function of a governmental unit, as 
defined by Section
20-107 of this Code, is transferred in whole 
or in part to an employer, and (2)
a participant transfers 
employment from such governmental unit to such employer
within 
6 months after the transfer of the function, and (3) the sum of 
(A) the
annuity payable to the participant under Rule 1, 2, or 
3 of this Section (B)
all proportional annuities payable to the 
participant by all other retirement
systems covered by Article 
20, and (C) the initial primary insurance amount to
which the 
participant is entitled under the Social Security Act, is less 
than
the retirement annuity which would have been payable if 
all of the
participant's pension credits validated under 
Section 20-109 had been validated
under this system, a 
supplemental annuity equal to the difference in such
amounts 
shall be payable to the participant.

    (h) On January 1, 1981, an annuitant who was receiving
a 
retirement annuity on or before January 1, 1971 shall have his 
or her
retirement annuity then being paid increased $1 per 
month for
each year of creditable service. On January 1, 1982, 
an annuitant whose
retirement annuity began on or before 
January 1, 1977, shall have his or her
retirement annuity then 
being paid increased $1 per month for each year of
creditable 
service.

    (i) On January 1, 1987, any annuitant whose retirement 
annuity began on or
before January 1, 1977, shall have the 
monthly retirement annuity increased by
an amount equal to 8¢ 
per year of creditable service times the number of years
that 
have elapsed since the annuity began.

(Source: P.A. 92-16, eff. 6-28-01; 93-347, eff. 7-24-03.)


 



    (40 ILCS 5/15-155)  (from Ch. 108 1/2, par. 15-155)


    Sec. 15-155. Employer contributions. 

    (a) The State of Illinois shall make contributions by 
appropriations of
amounts which, together with the other 
employer contributions from trust,
federal, and other funds, 
employee contributions, income from investments,
and other 
income of this System, will be sufficient to meet the cost of

maintaining and administering the System on a 90% funded basis 
in accordance
with actuarial recommendations.

    The Board shall determine the amount of State contributions 
required for
each fiscal year on the basis of the actuarial 
tables and other assumptions
adopted by the Board and the 
recommendations of the actuary, using the formula
in subsection 
(a-1).

    (a-1) For State fiscal years 2011 through 2045, the minimum 
contribution
to the System to be made by the State for each 
fiscal year shall be an amount
determined by the System to be 
sufficient to bring the total assets of the
System up to 90% of 
the total actuarial liabilities of the System by the end of

State fiscal year 2045.  In making these determinations, the 
required State
contribution shall be calculated each year as a 
level percentage of payroll
over the years remaining to and 
including fiscal year 2045 and shall be
determined under the 
projected unit credit actuarial cost method.

    For State fiscal years 1996 through 2005
2010, the State 
contribution to
the System, as a percentage of the applicable 
employee payroll, shall be
increased in equal annual increments 
so that by State fiscal year 2011, the
State is contributing at 
the rate required under this Section.

    Notwithstanding any other provision of this Article, the 
total required State
contribution for State fiscal year 2006 is 
$166,641,900.

    Notwithstanding any other provision of this Article, the 
total required State
contribution for State fiscal year 2007 is 
$252,064,100.

    For each of State fiscal years 2008 through 2010, the State 
contribution to
the System, as a percentage of the applicable 
employee payroll, shall be
increased in equal annual increments 
from the required State contribution for State fiscal year 
2007, so that by State fiscal year 2011, the
State is 
contributing at the rate otherwise required under this Section.

    Beginning in State fiscal year 2046, the minimum State 
contribution for
each fiscal year shall be the amount needed to 
maintain the total assets of
the System at 90% of the total 
actuarial liabilities of the System.

    Notwithstanding any other provision of this Section, the 
required State
contribution for State fiscal year 2005 and for 
fiscal year 2008 and each fiscal year thereafter, as
calculated 
under this Section and
certified under Section 15-165, shall 
not exceed an amount equal to (i) the
amount of the required 
State contribution that would have been calculated under
this 
Section for that fiscal year if the System had not received any 
payments
under subsection (d) of Section 7.2 of the General 
Obligation Bond Act, minus
(ii) the portion of the State's 
total debt service payments for that fiscal
year on the bonds 
issued for the purposes of that Section 7.2, as determined
and 
certified by the Comptroller, that is the same as the System's 
portion of
the total moneys distributed under subsection (d) of 
Section 7.2 of the General
Obligation Bond Act. In determining 
this maximum for State fiscal years 2008 through 2010, however, 
the amount referred to in item (i) shall be increased, as a 
percentage of the applicable employee payroll, in equal 
increments calculated from the sum of the required State 
contribution for State fiscal year 2007  plus the applicable 
portion of the State's total debt service payments for fiscal 
year 2007  on the bonds issued for the purposes of Section 7.2 
of the General
Obligation Bond Act, so that, by State fiscal 
year 2011, the
State is contributing at the rate otherwise 
required under this Section.

    (b) If an employee is paid from trust or federal funds, the 
employer
shall pay to the Board contributions from those funds 
which are
sufficient to cover the accruing normal costs on 
behalf of the employee.
However, universities having employees 
who are compensated out of local
auxiliary funds, income funds, 
or service enterprise funds are not required
to pay such 
contributions on behalf of those employees.  The local auxiliary

funds, income funds, and service enterprise funds of 
universities shall not be
considered trust funds for the 
purpose of this Article, but funds of alumni
associations, 
foundations, and athletic associations which are affiliated 
with
the universities included as employers under this Article 
and other employers
which do not receive State appropriations 
are considered to be trust funds for
the purpose of this 
Article.

    (b-1) The City of Urbana and the City of Champaign shall 
each make
employer contributions to this System for their 
respective firefighter
employees who participate in this 
System pursuant to subsection (h) of Section
15-107.  The rate 
of contributions to be made by those municipalities shall
be 
determined annually by the Board on the basis of the actuarial 
assumptions
adopted by the Board and the recommendations of the 
actuary, and shall be
expressed as a percentage of salary for 
each such employee.  The Board shall
certify the rate to the 
affected municipalities as soon as may be practical.
The 
employer contributions required under this subsection shall be 
remitted by
the municipality to the System at the same time and 
in the same manner as
employee contributions.

    (c) Through State fiscal year 1995: The total employer 
contribution shall
be apportioned among the various funds of 
the State and other employers,
whether trust, federal, or other 
funds, in accordance with actuarial procedures
approved by the 
Board.  State of Illinois contributions for employers receiving

State appropriations for personal services shall be payable 
from appropriations
made to the employers or to the System.  The 
contributions for Class I
community colleges covering earnings 
other than those paid from trust and
federal funds, shall be 
payable solely from appropriations to the Illinois
Community 
College Board or the System for employer contributions.

    (d) Beginning in State fiscal year 1996, the required State 
contributions
to the System shall be appropriated directly to 
the System and shall be payable
through vouchers issued in 
accordance with subsection (c) of Section 15-165, except as 
provided in subsection (g).

    (e) The State Comptroller shall draw warrants payable to 
the System upon
proper certification by the System or by the 
employer in accordance with the
appropriation laws and this 
Code.

    (f) Normal costs under this Section means liability for

pensions and other benefits which accrues to the System because 
of the
credits earned for service rendered by the participants 
during the
fiscal year and expenses of administering the 
System, but shall not
include the principal of or any 
redemption premium or interest on any bonds
issued by the Board 
or any expenses incurred or deposits required in
connection 
therewith.

    (g) If the amount of a participant's earnings for any 
academic year used to determine the final rate of earnings 
exceeds the amount of his or her earnings with the same 
employer for the previous academic year by more than 6%, the 
participant's employer shall pay to the System, in addition to 
all other payments required under this Section and in 
accordance with guidelines established by the System, the 
present value of the increase in benefits resulting from the 
portion of the increase in earnings that is in excess of 6%.  
This present value shall be computed by the System on the basis 
of the actuarial assumptions and tables used in the most recent 
actuarial valuation of the System that is available at the time 
of the computation.   The employer contributions required under 
this subsection (g) shall be paid in the form of a lump sum 
within 30 days after receipt of the bill after the participant 
begins receiving benefits under this Article.

    The provisions of this subsection (g) do not apply to 
earnings increases paid to participants under contracts or 
collective bargaining agreements entered into, amended, or 
renewed before the effective date of this amendatory Act of the 
94th General Assembly.

(Source: P.A. 93-2, eff. 4-7-03.)


 



    (40 ILCS 5/15-165)
  (from Ch. 108 1/2, par. 15-165)


    Sec. 15-165. To certify amounts and submit vouchers. 

    (a) The Board shall certify to the Governor on or before 
November 15 of each
year the appropriation required from State 
funds for the purposes of this
System for the following fiscal 
year.  The certification shall include a copy
of the actuarial 
recommendations upon which it is based.

    On or before May 1, 2004, the Board shall recalculate and 
recertify to
the Governor the amount of the required State 
contribution to the System for
State fiscal year 2005, taking 
into account the amounts appropriated to and
received by the 
System under subsection (d) of Section 7.2 of the General

Obligation Bond Act.

    On or before July 1, 2005, the Board shall recalculate and 
recertify
to the Governor the amount of the required State

contribution to the System for State fiscal year 2006, taking 
into account the changes in required State contributions made 
by this amendatory Act of the 94th General Assembly.

    (b) The Board shall certify to the State Comptroller or 
employer, as the
case may be, from time to time, by its 
president and secretary, with its seal
attached, the amounts 
payable to the System from the various funds.

    (c) Beginning in State fiscal year 1996, on or as soon as 
possible after the
15th day of each month the Board shall 
submit vouchers for payment of State
contributions to the 
System, in a total monthly amount of one-twelfth of the

required annual State contribution certified under subsection 
(a).
From the effective date of this amendatory Act
of the 93rd 
General Assembly through June 30, 2004, the Board shall not

submit vouchers for the remainder of fiscal year 2004 in excess 
of the
fiscal year 2004 certified contribution amount 
determined
under this Section after taking into consideration 
the transfer to the
System under subsection (b) of Section 
6z-61 of the State Finance Act.
These
vouchers shall be paid by 
the State Comptroller and Treasurer by warrants drawn
on the 
funds appropriated to the System for that fiscal year.

    If in any month the amount remaining unexpended from all 
other
appropriations to the System for the applicable fiscal 
year (including the
appropriations to the System under Section 
8.12 of the State Finance Act and
Section 1 of the State 
Pension Funds Continuing Appropriation Act) is less than
the 
amount lawfully vouchered under this Section, the difference 
shall be paid
from the General Revenue Fund under the 
continuing appropriation authority
provided in Section 1.1 of 
the State Pension Funds Continuing Appropriation
Act.

    (d) So long as the payments received are the full amount 
lawfully
vouchered under this Section, payments received by the 
System under this
Section shall be applied first toward the 
employer contribution to the
self-managed plan established 
under Section 15-158.2.  Payments shall be
applied second toward 
the employer's portion of the normal costs of the System,
as 
defined in subsection (f) of Section 15-155.  The balance shall 
be applied
toward the unfunded actuarial liabilities of the 
System.

    (e) In the event that the System does not receive, as a 
result of
legislative enactment or otherwise, payments 
sufficient to
fully fund the employer contribution to the 
self-managed plan
established under Section 15-158.2 and to 
fully fund that portion of the
employer's portion of the normal 
costs of the System, as calculated in
accordance with Section 
15-155(a-1), then any payments received shall be
applied 
proportionately to the optional retirement program established 
under
Section 15-158.2 and to the employer's portion of the 
normal costs of the
System, as calculated in accordance with 
Section 15-155(a-1).

(Source: P.A. 93-2, eff. 4-7-03; 93-665, eff. 3-5-04.)

 
    (40 ILCS 5/15-198 new)

    Sec. 15-198. Application and expiration of new benefit 
increases.
    (a) As used in this Section, "new benefit increase" means 
an increase in the amount of any benefit provided under this 
Article, or an expansion of the conditions of  eligibility for 
any benefit under this Article, that results from an amendment 
to this Code that takes effect after the effective date of this 
amendatory Act of the 94th General Assembly.
    (b) Notwithstanding any other provision of this Code or any 
subsequent amendment to this Code, every  new benefit increase 
is subject to this Section and shall be deemed to be granted 
only in conformance with and contingent upon compliance with 
the provisions of this Section.

    (c) The Public Act enacting a new benefit increase must 
identify and provide for payment to the System of additional 
funding at least sufficient to fund the resulting annual 
increase in cost to  the System as it accrues.
    Every  new benefit increase is contingent upon the General 
Assembly providing the additional funding required under this 
subsection.  The Commission on Government Forecasting and 
Accountability shall analyze whether adequate additional 
funding has been provided for the new benefit increase and 
shall report its analysis to the Public Pension Division of the 
Department of Financial and Professional Regulation. A new 
benefit increase created by a Public Act that does not include 
the additional funding required under this subsection is null 
and void. If the Public Pension Division determines that the 
additional funding provided for a new benefit increase under 
this subsection is or has become inadequate, it may so certify 
to the Governor and the State Comptroller and, in the absence 
of corrective  action by the General Assembly, the new benefit 
increase shall expire at the end of the fiscal year in which 
the certification is made.

    (d) Every  new benefit increase shall expire 5 years after 
its effective date or on such earlier date as may be specified 
in the language enacting the new benefit increase or provided 
under subsection (c).  This does  not prevent the General 
Assembly from extending or re-creating a new benefit increase 
by law.
    (e) Except as otherwise provided in the language creating 
the new benefit increase,  a new benefit increase that expires 
under this Section continues to apply to persons who applied 
and qualified for the affected benefit while the new benefit 
increase  was in effect and to the affected beneficiaries and 
alternate payees of such persons, but does not apply to any 
other person, including without limitation a person  who 
continues in service after the expiration date and did not 
apply and qualify for the affected benefit while the new 
benefit increase was in effect.

 



    (40 ILCS 5/16-128)  (from Ch. 108 1/2, par. 16-128)



    Sec. 16-128. Creditable service - required contributions. 

    (a) In order to receive the creditable service specified 
under
subsection (b) of Section 16-127, a member is required to 
make the
following contributions: (i) an amount equal to the 
contributions
which would have been required had such service 
been rendered as a member
under this System; (ii) for military 
service not immediately following
employment and for service 
established under subdivision (b)(10) of
Section 16-127, an 
amount determined by the Board to be equal to the
employer's 
normal cost of the benefits accrued for such service; and (iii)

interest from the date the contributions would have been due 
(or, in the case
of a person establishing credit for military 
service under subdivision (b)(3)
of Section 16-127, the date of 
first membership in the System, if that date
is later) to the 
date of payment, at the following rate of interest,
compounded 
annually:  for periods prior to July 1, 1965, regular interest; 
from
July 1, 1965 to June 30, 1977, 4% per year; on and after 
July 1, 1977, regular
interest.

    (b) In order to receive creditable service under paragraph 
(2) of
subsection (b) of Section 16-127 for those who were not 
members on June 30,
1963, the minimum required contribution 
shall be $420 per year of service
together with interest at 4% 
per year compounded annually from July 1,
preceding the date of 
membership until June 30, 1977 and at regular
interest 
compounded annually thereafter to the date of payment.

    (c) In determining the contribution required in order to 
receive creditable
service under paragraph (3) of subsection 
(b) of Section 16-127, the salary
rate for the remainder of the 
school term in which a member enters military
service shall be 
assumed to be equal to the member's salary rate at the
time of 
entering military service.  However, for military service not

immediately following employment, the salary rate on the last 
date as a
participating teacher prior to such military service, 
or on the first date
as a participating teacher after such 
military service, whichever is
greater, shall be assumed to be 
equal to the member's salary rate at the
time of entering 
military service.  For each school term thereafter, the
member's 
salary rate shall be assumed to be 5% higher than the salary 
rate
in the previous school term.

    (d) In determining the contribution required in order to 
receive creditable
service under paragraph (5) of subsection 
(b) of Section 16-127, a member's
salary rate during the period 
for which credit is being established shall be
assumed to be 
equal to the member's last salary
rate immediately preceding 
that period.

    (d-5) For each year of service credit to be established 
under subsection
(b-1) of Section 16-127, a member is required 
to contribute to the System (i)
16.5% of the annual salary rate 
during the first year of full-time employment
as a teacher 
under this Article following the private school service, plus

(ii) interest thereon from the date of first full-time 
employment as a teacher
under this Article following the 
private school service to the date of payment,
compounded 
annually, at the rate of 8.5% per year for periods before the

effective date of this amendatory Act of the 92nd General 
Assembly, and for
subsequent periods at a rate equal to the 
System's actuarially assumed rate of
return on investments.

    (d-10)  For service credit established under paragraph (6) 
of subsection (b) of Section 16-127 for days granted by an 
employer in excess of the member's normal annual sick leave 
allotment, the employer is required to pay the normal cost of 
benefits based upon such service credit.  This subsection (d-10) 
does not apply to sick leave granted to teachers under 
contracts or collective bargaining agreements entered into, 
amended, or renewed before the effective date of this 
amendatory Act of the 94th General Assembly.

    (e) The contributions required under this Section may be 
made from the
date the statement for such creditable service is 
issued until retirement
date.  All such required contributions 
must be made before any retirement
annuity is granted.

(Source: P.A. 92-867, eff. 1-3-03.)

 



    (40 ILCS 5/16-133)  (from Ch. 108 1/2, par. 16-133)


    Sec. 16-133. Retirement annuity; amount. 

    (a) The amount of the retirement annuity shall be (i) in 
the case of a person who first became a teacher under this 
Article before July 1, 2005, the larger of the
amounts 
determined under paragraphs (A) and (B) below, or (ii) in the 
case of a person who first becomes a teacher under this Article 
on or after July 1, 2005, the amount determined under the 
applicable provisions of paragraph (B):


        (A) An amount consisting of the sum of the following:


            (1) An amount that can be provided on an 
        actuarially equivalent basis
by the member's 
        accumulated contributions at the time of retirement; 
        and


            (2) The sum of (i) the amount that can be provided 
        on an actuarially
equivalent basis by the member's 
        accumulated contributions representing
service prior 
        to July 1, 1947, and (ii) the amount that can be 
        provided on
an actuarially equivalent basis by the 
        amount obtained by multiplying 1.4
times the member's 
        accumulated contributions covering service subsequent 
        to
June 30, 1947; and


            (3) If there is prior service, 2 times the amount 
        that would have been
determined under subparagraph (2) 
        of paragraph (A) above on account of
contributions 
        which would have been made during the period of prior 
        service
creditable to the member had the System been in 
        operation and had the
member made contributions at the 
        contribution rate in effect prior to
July 1, 1947.

        This paragraph (A) does not apply to a person who first 
    becomes a teacher under this Article on or after July 1, 
    2005.


        (B) An amount consisting of the greater of the 
    following:


            (1) For creditable service earned before July 1, 
        1998 that has not
been augmented under Section 
        16-129.1:  1.67% of final average salary for
each of the 
        first 10 years of creditable service, 1.90% of final 
        average salary
for each year in excess of 10 but not 
        exceeding 20, 2.10% of final average
salary for each 
        year in excess of 20 but not exceeding 30, and 2.30% of 
        final
average salary for each year in excess of 30; and


            For creditable service earned on or after July 1, 
        1998 by a member who
has at least 24 years of 
        creditable service on July 1, 1998 and who
does not 
        elect to augment service under Section 16-129.1:  2.2% 
        of final
average salary for each year of creditable 
        service earned on or after July 1,
1998 but before the 
        member reaches a total of 30 years of creditable 
        service
and 2.3% of final average salary for each year 
        of creditable service earned
on or after July 1, 1998 
        and after the member reaches a total of 30 years of

        creditable service; and


            For all other creditable service:  2.2% of final 
        average salary
for each year of creditable service; or


            (2) 1.5% of final average salary for each year of

        creditable service plus the sum $7.50 for each of the 
        first 20 years of
creditable service.


    The amount of the retirement annuity determined under this 
    paragraph (B)
shall be reduced by 1/2 of 1% for each month 
    that the member is less than
age 60 at the time the 
    retirement annuity begins.  However, this reduction
shall 
    not apply (i) if the member has at least 35 years of 
    creditable service,
or (ii) if the member retires on 
    account of disability under Section 16-149.2
of this 
    Article with at least 20 years of creditable service, or 
    (iii) if
the member (1) has earned during the period 
    immediately preceding the last
day of service at least one 
    year of contributing creditable service as an
employee of a 
    department as defined in Section 14-103.04, (2) has earned 
    at
least 5 years of contributing creditable service as an 
    employee of a department
as defined in Section 14-103.04, 
    (3) retires on or after January 1, 2001, and
(4) retires 
    having attained an age which, when added to the number of 
    years of
his or her total creditable service, equals at 
    least 85.  Portions of years
shall be counted as decimal 
    equivalents.

    (b) For purposes of this Section, final average salary 
shall be the
average salary for the highest 4 consecutive years 
within the last 10 years
of creditable service as determined 
under rules of the board.  The minimum
final average salary 
shall be considered to be $2,400 per year.

    In the determination of final average salary for members 
other than
elected officials and their appointees when such 
appointees are allowed by
statute, that part of a member's 
salary for any year beginning after June
30, 1979 which exceeds 
the member's annual full-time salary rate with the
same 
employer for the preceding year by more than 20% shall be 
excluded.
The exclusion shall not apply in any year in which 
the member's creditable
earnings are less than 50% of the 
preceding year's mean salary for downstate
teachers as 
determined by the survey of school district salaries provided 
in
Section 2-3.103 of the School Code.

    (c) In determining the amount of the retirement annuity 
under paragraph
(B) of this Section, a fractional year shall be 
granted proportional credit.

    (d) The retirement annuity determined under paragraph (B) 
of this Section
shall be available only to members who render 
teaching service after July
1, 1947 for which member 
contributions are required, and to annuitants who
re-enter 
under the provisions of Section 16-150.

    (e) The maximum retirement annuity provided under 
paragraph (B) of this
Section shall be 75% of final average 
salary.

    (f) A member retiring after the effective date of this 
amendatory Act
of 1998 shall receive a pension equal to 75% of 
final average salary if the
member is qualified to receive a 
retirement annuity equal to at least 74.6%
of final average 
salary under this Article or as proportional annuities under

Article 20 of this Code.

(Source: P.A. 90-582, eff. 5-27-98; 91-17, eff. 6-4-99; 91-887, 
eff.
7-6-00; 91-927, eff. 12-14-00.)


 



    (40 ILCS 5/16-133.2)  (from Ch. 108 1/2, par. 16-133.2)



    Sec. 16-133.2. Early retirement without discount. 
    (a) A  member
retiring after June 1, 1980 and on or before 
June 30, 2005 (or as provided in subsection (b) of this 
Section), and
applying for a retirement annuity within 6 months 
of the last day of
teaching for which retirement contributions 
were required,
may elect at the time of application for a 
retirement annuity, to make
a one time member contribution to 
the System and thereby
avoid the reduction in the retirement 
annuity for retirement before age
60 specified in paragraph (B) 
of Section 16-133.  The exercise of the
election shall also 
obligate the last employer to make a one time
non-refundable 
contribution to the System.  Substitute teachers wishing to

exercise this election must teach 85 or more days in one school 
term with
one employer, who shall be deemed the last employer 
for purposes of this
Section.  The last day of teaching with 
that employer must be within 6
months of the date of 
application for retirement.  All substitute
teaching credit 
applied toward the required 85 days must be earned after
June 
30, 1990.

    The one time member and employer contributions shall be a 
percentage of
the retiring member's highest annual salary rate 
used in the determination
of the average salary for retirement 
annuity purposes.  However, when
determining the one-time 
member and employer contributions, that part of a
member's 
salary with the same employer which exceeds the annual salary 
rate
for the preceding year by more than 20% shall be excluded.  
The member
contribution shall be at the rate of 7% for the 
lesser of the following 2
periods:  (1) for each year that the 
member is less than age 60; or (2) for
each year that the 
member's creditable service is less than 35 years.  If a
member 
is at least age 55 and has at least 34 years of creditable 
service, no
member or employer contribution for the early 
retirement option shall be
required.  The employer contribution 
shall be at the rate of 20% for each year
the member is under 
age 60.

    Upon receipt of the application and election, the System 
shall determine
the one time employee and employer 
contributions required.  The member
contribution shall be 
credited to the individual account of the member and
the 
employer contribution shall be credited to the Benefit Trust 
Reserve.  The
provisions of this subsection (a) providing for 
the avoidance of the reduction in retirement annuity
Section 
shall
not be applicable until the member's contribution, if 
any, has been received
by the System; however, the date such 
contributions are received shall not be
considered in 
determining the effective date of retirement.

    The number of members working for a single employer who may

retire under this subsection or subsection (b)
Section in any 
year may be limited at the option
of the employer to a 
specified percentage of those eligible, not less
than 30%, with 
the right to participate to be allocated among those
applying 
on the basis of seniority in the service of the employer.

    (b)  The provisions of subsection (a) of this Section shall 
remain in effect for a member retiring after June 30, 2005 and 
on or before July 1, 2007, provided that the member satisfies 
both of the following requirements:
        (1) the member notified his or her employer of intent 
    to retire under this Article on or before the effective 
    date of this amendatory Act of the 94th General Assembly 
    under the terms of a contract or collective bargaining 
    agreement entered into, amended, or renewed with the 
    employer on or before the effective date of this amendatory 
    Act of the 94th General Assembly; and

        (2) the effective date of the member's retirement is on 
    or before July 1, 2007.
    The member's employer must give evidence of the member's 
notification by providing to the  System:

        (i) a copy of the member's notification to the employer 
    or the record of that notification;

        (ii) an affidavit signed by the member and the 
    employer, verifying the notification; and

        (iii) any additional documentation that the System may 
    require.

    (c)  Except as otherwise provided in subsection (b), and 
subject to the provisions of Section 16-176, a member retiring 
on or after July 1, 2005, and applying for a retirement annuity 
within 6 months of the last day of teaching for which 
retirement contributions were required, may elect at the time 
of application for a retirement annuity, to make a one-time 
member contribution to the System and thereby avoid the 
reduction in the retirement annuity for retirement before age 
60 specified in paragraph (B) of Section 16-133. The exercise 
of the election shall also obligate the last employer to make a 
one-time nonrefundable contribution to the System. Substitute 
teachers wishing to exercise this election must teach 85 or 
more days in one school term with one employer, who shall be 
deemed the last employer for purposes of this Section. The last 
day of teaching with that employer must be within 6 months of 
the date of application for retirement. All substitute teaching 
credit applied toward the required 85 days must be earned after 
June 30, 1990.
    The one-time member and employer contributions shall be a 
percentage of the retiring member's highest annual salary rate 
used in the determination of the average salary for retirement 
annuity purposes. However, when determining the one-time 
member and employer contributions, that part of a member's 
salary with the same employer which exceeds the annual salary 
rate for the preceding year by more than 20% shall be excluded.  
The member contribution shall be at the rate of 11.5% for the 
lesser of the following 2 periods: (1) for each year that the 
member is less than age 60; or (2) for each year that the 
member's creditable service is less than 35 years.  The employer 
contribution shall be at the rate of 23.5% for each year the 
member is under age 60.
    Upon receipt of the application and election, the System 
shall determine the one-time employee and employer 
contributions required. The member contribution shall be 
credited to the individual account of the member and the 
employer contribution shall be credited to the Benefit Trust 
Reserve.  The avoidance of the reduction in retirement annuity 
provided under this subsection (c)  is not applicable until the 
member's contribution, if any, has been received by the System; 
however, the date that contribution is received shall not be 
considered in determining the effective date of retirement.

    The number of members working for a single employer who may 
retire under this subsection (c) in any year may be limited at 
the option of the employer to a specified percentage of those 
eligible, not less than 10%, with the right to participate to 
be allocated among those applying on the basis of seniority in 
the service of the employer.
(Source: P.A. 93-469, eff. 8-8-03.)

 
    (40 ILCS 5/16-133.3)  (from Ch. 108 1/2, par. 16-133.3)
    Sec. 16-133.3. Early retirement incentives for State 
employees.

    (a) To be eligible for the benefits provided in this 
Section, a person
must:


        (1) be a member of this System who, on any day during 
    June, 2002, is
(i) in active payroll status as a full-time 
    teacher employed by a department
and an active contributor 
    to this System with respect to that employment, or
(ii) on 
    layoff status from such a position with a right of 
    re-employment or
recall to service, or (iii) receiving a 
    disability benefit under Section
16-149 or 16-149.1, but 
    only if the member has not been receiving that benefit
for 
    a continuous period of more than 2 years as of the date of 
    application;


        (2) not have received any retirement annuity under this 
    Article
beginning earlier than August 1, 2002;


        (3) file with the Board on or before December 31, 2002 
    a written
application requesting the benefits provided in 
    this Section;


        (4) terminate employment under this Article no later 
    than December 31,
2002 (or the date established under 
    subsection (d), if applicable);


        (5) by the date of termination of service, have at 
    least 8 years of
creditable service under this Article, 
    without the use of any creditable
service established under 
    this Section;


        (6) by the date of termination of service, have at 
    least 5 years
of service credit earned while participating 
    in the System as a teacher
employed by a department; and


        (7) not receive any early retirement benefit under 
    Section 14-108.3 of
this Code.


    For the purposes of this Section, "department" means a 
department as defined
in Section 14-103.04 that employs a 
teacher as defined in this Article.


    (b) An eligible person may establish up to 5 years of 
creditable service
under this Article by making the 
contributions
specified in subsection (c).  In addition, for 
each period of creditable
service established under this 
Section, a person's age at retirement shall
be deemed to be 
enhanced by an equivalent period.


    The creditable service established under this Section may 
be used for all
purposes under this Article and the Retirement 
Systems Reciprocal Act,
except for the computation of final 
average salary, the determination of salary
or compensation 
under this Article or any other Article of this Code, or the

determination of eligibility for or the computation of benefits 
under Section
16-133.2.


    The age enhancement established under this Section may be 
used for all
purposes under this Article (including calculation 
of a proportionate annuity
payable by this System under the 
Retirement Systems Reciprocal Act), except for
purposes of a 
retirement annuity under Section 16-133(a)(A), a
reversionary 
annuity under Section 16-136, the required distributions under

Section 16-142.3, and the determination of eligibility for or 
the computation
of benefits under Section 16-133.2.  Age 
enhancement established under this
Section may be used in 
determining benefits payable under Article 14 of this
Code 
under the Retirement Systems Reciprocal Act (subject to the 
limitations
on the use of age enhancement provided in Section 
14-108.3); age enhancement
established under this Section 
shall not be used in determining benefits
payable under other 
Articles of this Code under the Retirement Systems
Reciprocal 
Act.


    (c) For all creditable service established under this 
Section, a person
must pay to the System an employee 
contribution to be determined by the
System, equal to 9.0% of 
the member's highest annual salary rate that would be
used in 
the determination of the average salary for retirement annuity 
purposes
if the member retired immediately after withdrawal, 
for each year of creditable
service established under this 
Section.


    If the member receives a lump sum payment for accumulated 
vacation, sick
leave, and personal leave upon withdrawal from 
service, and the net amount of
that lump sum payment is at 
least as great as the amount of the contribution
required under 
this Section, the entire contribution must be paid by the

employee by payroll deduction.  If there is no such lump sum 
payment, or if it
is less than the contribution required under 
this Section, the member shall
make an initial payment by 
payroll deduction, equal to the net amount of the
lump sum 
payment for accumulated vacation, sick leave, and personal 
leave,
and have the remaining amount due treated as a reduction 
from the retirement
annuity in 24 equal monthly installments 
beginning in the month in which the
retirement annuity takes 
effect.  The required contribution may be paid as a
pre-tax 
deduction from earnings.


    (d) In order to ensure that the efficient operation of 
State government
is not jeopardized by the simultaneous 
retirement of large numbers of key
personnel, the director or 
other head of a department may, for key employees
of that 
department, extend the December 31, 2002 deadline for 
terminating
employment under this Article established in 
subdivision (a)(4) of this
Section to a date not later than 
April 30, 2003 by so notifying the
System in writing by 
December 31, 2002.


    (e) A person who has received any age enhancement or 
creditable service
under this Section and who reenters 
contributing service under this Article or
Article 14 shall 
thereby forfeit that age enhancement and creditable service,

and become entitled to a refund of the contributions made 
pursuant to this
Section.


    (f) The System shall determine the amount of the increase 
in the present value of future benefits resulting from the 
granting of early retirement incentives
under this Section and 
shall report that amount to the Governor and the Commission on 
Government Forecasting and Accountability
on or after the 
effective date of this amendatory Act of the 93rd General 
Assembly and on or before November 15,
2004.  Beginning with 
State fiscal year 2008, the
The increase in
liability reported 
under this subsection (f) shall not be included in the

calculation of the required State contribution under Section 
16-158.


    (g)
In addition to the contributions otherwise required 
under this Article,
the State shall appropriate and pay to the 
System (1) an amount equal to
$1,000,000 in State fiscal year 
2004 and (2) in each of State fiscal years
2006 through 2015, a 
level dollar-payment based upon the increase in the present 
value of future benefits provided by the early retirement 
incentives provided under this Section amortized at 8.5% 
interest.


    (h) The Pension Laws Commission (or its successor, the 
Commission on Government Forecasting and Accountability) shall 
determine
and report to the General
Assembly, on or before 
January 1, 2004 and annually thereafter through the year
2013, 
its estimate of (1) the annual amount of payroll savings likely 
to be
realized by the State as a result of the early retirement 
of persons receiving
early retirement incentives under this 
Section and (2) the net annual savings
or cost to the State 
from the program of early retirement incentives created
under 
this Section.


    The System, the Department of Central Management Services, 
the
Governor's Office of Management and Budget (formerly
Bureau 
of
the Budget), and all other departments shall provide to the 
Commission any
assistance that the Commission may request with 
respect to its reports under
this Section.  The Commission may 
require departments to provide it with any
information that it 
deems necessary or useful with respect to its reports under

this Section, including without limitation information about 
(1) the final
earnings of former department employees who 
elected to receive benefits under
this Section, (2) the 
earnings of current department employees holding the
positions 
vacated by persons who elected to receive benefits under this

Section, and (3) positions vacated by persons who elected to 
receive benefits
under this Section that have not yet been 
refilled.


    (i) The changes made to this Section by this amendatory Act 
of the 92nd
General Assembly do not apply to persons who 
retired under this Section on or
before May 1, 1992.


(Source: P.A. 92-566, eff. 6-25-02; 93-632, eff. 2-1-04; 
93-839, eff. 7-30-04; 93-1067, eff. 1-15-05.)

 



    (40 ILCS 5/16-152)  (from Ch. 108 1/2, par. 16-152)



    Sec. 16-152. Contributions by members. 

    (a) Each member shall make contributions for membership 
service to this
System as follows:


        (1) Effective July 1, 1998, contributions of 7.50% of 
    salary towards the
cost of the retirement annuity.  Such 
    contributions shall be deemed "normal
contributions".


        (2) Effective July 1, 1969, contributions of 1/2 of 1% 
    of salary toward
the cost of the automatic annual increase 
    in retirement annuity provided
under Section 16-133.1.


        (3) Effective July 24, 1959, contributions of 1% of 
    salary towards the
cost of survivor benefits.  Such 
    contributions shall not be credited to
the individual 
    account of the member and shall not be subject to refund

    except as provided under Section 16-143.2.

        (4) Effective July 1, 2005, contributions of 0.40% of 
    salary toward the cost of the early retirement without 
    discount option provided under Section 16-133.2. This 
    contribution shall cease upon termination of the early 
    retirement without discount option as provided in Section 
    16-176.

    (b) The minimum required contribution for any year of 
full-time
teaching service shall be $192.

    (c) Contributions shall not be required of any annuitant 
receiving
a retirement annuity who is given employment as 
permitted under Section 16-118 or 16-150.1.

    (d) A person who (i) was a member before July 1, 1998, (ii) 
retires with
more than 34 years of creditable service, and 
(iii) does not elect to qualify
for the augmented rate under 
Section 16-129.1 shall be entitled, at the time
of retirement, 
to receive a partial refund of contributions made under this

Section for service occurring after the later of June 30, 1998 
or attainment
of 34 years of creditable service, in an amount 
equal to 1.00% of the salary
upon which those contributions 
were based.

    (e) A member's contributions toward the cost of early 
retirement without discount made under item (a)(4) of this 
Section  shall not be refunded if the member has elected early 
retirement without discount under Section 16-133.2 and has 
begun to receive a retirement annuity under this Article 
calculated in accordance with that election. Otherwise, a 
member's contributions toward the cost of early retirement 
without discount made under item (a)(4) of this Section  shall 
be refunded according to whichever one of the following 
circumstances occurs first:
        (1) The contributions shall be refunded to the member, 
    without interest, within 120 days after the member's 
    retirement annuity commences, if the member does not elect 
    early retirement without discount under Section 16-133.2.
        (2) The contributions shall be included, without 
    interest,  in any refund claimed by the member under Section 
    16-151.
        (3) The contributions shall be refunded to the member's 
    designated beneficiary (or if there is no beneficiary, to 
    the member's estate), without interest, if the member dies 
    without having begun to receive a retirement annuity under 
    this Article.
        (4) The contributions shall be refunded to the member, 
    without interest,  within 120 days after the early 
    retirement without discount option provided under Section 
    16-133.2 is terminated under Section 16-176.

(Source: P.A. 93-320, eff. 7-23-03.)

 



    (40 ILCS 5/16-158)
  (from Ch. 108 1/2, par. 16-158)


    Sec. 16-158. Contributions by State and other employing 
units. 

    (a) The State shall make contributions to the System by 
means of
appropriations from the Common School Fund and other 
State funds of amounts
which, together with other employer 
contributions, employee contributions,
investment income, and 
other income, will be sufficient to meet the cost of

maintaining and administering the System on a 90% funded basis 
in accordance
with actuarial recommendations.

    The Board shall determine the amount of State contributions 
required for
each fiscal year on the basis of the actuarial 
tables and other assumptions
adopted by the Board and the 
recommendations of the actuary, using the formula
in subsection 
(b-3).

    (a-1) Annually, on or before November 15, the Board shall 
certify to the
Governor the amount of the required State 
contribution for the coming fiscal
year.  The certification 
shall include a copy of the actuarial recommendations
upon 
which it is based.

    On or before May 1, 2004, the Board shall recalculate and 
recertify to
the Governor the amount of the required State 
contribution to the System for
State fiscal year 2005, taking 
into account the amounts appropriated to and
received by the 
System under subsection (d) of Section 7.2 of the General

Obligation Bond Act.

    On or before July 1, 2005, the Board shall recalculate and 
recertify
to the Governor the amount of the required State

contribution to the System for State fiscal year 2006, taking 
into account the changes in required State contributions made 
by this amendatory Act of the 94th General Assembly.

    (b) Through State fiscal year 1995, the State contributions 
shall be
paid to the System in accordance with Section 18-7 of 
the School Code.

    (b-1) Beginning in State fiscal year 1996, on the 15th day 
of each month,
or as soon thereafter as may be practicable, the 
Board shall submit vouchers
for payment of State contributions 
to the System, in a total monthly amount of
one-twelfth of the 
required annual State contribution certified under
subsection 
(a-1).
From the
effective date of this amendatory Act of the 
93rd General Assembly
through June 30, 2004, the Board shall 
not submit vouchers for the
remainder of fiscal year 2004 in 
excess of the fiscal year 2004
certified contribution amount 
determined under this Section
after taking into consideration 
the transfer to the System
under subsection (a) of Section 
6z-61 of the State Finance Act.
These vouchers shall be paid by 
the State Comptroller and
Treasurer by warrants drawn on the 
funds appropriated to the System for that
fiscal year.

    If in any month the amount remaining unexpended from all 
other appropriations
to the System for the applicable fiscal 
year (including the appropriations to
the System under Section 
8.12 of the State Finance Act and Section 1 of the
State 
Pension Funds Continuing Appropriation Act) is less than the 
amount
lawfully vouchered under this subsection, the 
difference shall be paid from the
Common School Fund under the 
continuing appropriation authority provided in
Section 1.1 of 
the State Pension Funds Continuing Appropriation Act.

    (b-2) Allocations from the Common School Fund apportioned 
to school
districts not coming under this System shall not be 
diminished or affected by
the provisions of this Article.

    (b-3) For State fiscal years 2011 through 2045, the minimum 
contribution
to the System to be made by the State for each 
fiscal year shall be an amount
determined by the System to be 
sufficient to bring the total assets of the
System up to 90% of 
the total actuarial liabilities of the System by the end of

State fiscal year 2045.  In making these determinations, the 
required State
contribution shall be calculated each year as a 
level percentage of payroll
over the years remaining to and 
including fiscal year 2045 and shall be
determined under the 
projected unit credit actuarial cost method.

    For State fiscal years 1996 through 2005
2010, the State 
contribution to the
System, as a percentage of the applicable 
employee payroll, shall be increased
in equal annual increments 
so that by State fiscal year 2011, the State is
contributing at 
the rate required under this Section; except that in the

following specified State fiscal years, the State contribution 
to the System
shall not be less than the following indicated 
percentages of the applicable
employee payroll, even if the 
indicated percentage will produce a State
contribution in 
excess of the amount otherwise required under this subsection

and subsection (a), and notwithstanding any contrary 
certification made under
subsection (a-1) before the effective 
date of this amendatory Act of 1998:
10.02% in FY 1999;
10.77% 
in FY 2000;
11.47% in FY 2001;
12.16% in FY 2002;
12.86% in FY 
2003; and
13.56% in FY 2004.

    Notwithstanding any other provision of this Article, the 
total required State
contribution for State fiscal year 2006 is 
$534,627,700.

    Notwithstanding any other provision of this Article, the 
total required State
contribution for State fiscal year 2007 is 
$738,014,500.

    For each of State fiscal years 2008 through 2010, the State 
contribution to
the System, as a percentage of the applicable 
employee payroll, shall be
increased in equal annual increments 
from the required State contribution for State fiscal year 
2007, so that by State fiscal year 2011, the
State is 
contributing at the rate otherwise required under this Section.

    Beginning in State fiscal year 2046, the minimum State 
contribution for
each fiscal year shall be the amount needed to 
maintain the total assets of
the System at 90% of the total 
actuarial liabilities of the System.

    Notwithstanding any other provision of this Section, the 
required State
contribution for State fiscal year 2005 and for 
fiscal year 2008 and each fiscal year thereafter, as
calculated 
under this Section and
certified under subsection (a-1), shall 
not exceed an amount equal to (i) the
amount of the required 
State contribution that would have been calculated under
this 
Section for that fiscal year if the System had not received any 
payments
under subsection (d) of Section 7.2 of the General 
Obligation Bond Act, minus
(ii) the portion of the State's 
total debt service payments for that fiscal
year on the bonds 
issued for the purposes of that Section 7.2, as determined
and 
certified by the Comptroller, that is the same as the System's 
portion of
the total moneys distributed under subsection (d) of 
Section 7.2 of the General
Obligation Bond Act. In determining 
this maximum for State fiscal years 2008 through 2010, however, 
the amount referred to in item (i) shall be increased, as a 
percentage of the applicable employee payroll, in equal 
increments calculated from the sum of the required State 
contribution for State fiscal year 2007 plus the applicable 
portion of the State's total debt service payments for fiscal 
year 2007  on the bonds issued for the purposes of Section 7.2 
of the General
Obligation Bond Act, so that, by State fiscal 
year 2011, the
State is contributing at the rate otherwise 
required under this Section.

    (c) Payment of the required State contributions and of all 
pensions,
retirement annuities, death benefits, refunds, and 
other benefits granted
under or assumed by this System, and all 
expenses in connection with the
administration and operation 
thereof, are obligations of the State.

    If members are paid from special trust or federal funds 
which are
administered by the employing unit, whether school 
district or other
unit, the employing unit shall pay to the 
System from such
funds the full accruing retirement costs based 
upon that
service, as determined by the System.  Employer 
contributions, based on
salary paid to members from federal 
funds, may be forwarded by the distributing
agency of the State 
of Illinois to the System prior to allocation, in an
amount 
determined in accordance with guidelines established by such

agency and the System.

    (d) Effective July 1, 1986, any employer of a teacher as 
defined in
paragraph (8) of Section 16-106 shall pay the 
employer's normal cost
of benefits based upon the teacher's 
service, in addition to
employee contributions, as determined 
by the System.  Such employer
contributions shall be forwarded 
monthly in accordance with guidelines
established by the 
System.

    However, with respect to benefits granted under Section 
16-133.4 or
16-133.5 to a teacher as defined in paragraph (8) 
of Section 16-106, the
employer's contribution shall be 12% 
(rather than 20%) of the member's
highest annual salary rate 
for each year of creditable service granted, and
the employer 
shall also pay the required employee contribution on behalf of

the teacher.  For the purposes of Sections 16-133.4 and 
16-133.5, a teacher
as defined in paragraph (8) of Section 
16-106 who is serving in that capacity
while on leave of 
absence from another employer under this Article shall not
be 
considered an employee of the employer from which the teacher 
is on leave.

    (e) Beginning July 1, 1998, every employer of a teacher

shall pay to the System an employer contribution computed as 
follows:


        (1) Beginning July 1, 1998 through June 30, 1999, the 
    employer
contribution shall be equal to 0.3% of each 
    teacher's salary.


        (2) Beginning July 1, 1999 and thereafter, the employer

    contribution shall be equal to 0.58% of each teacher's 
    salary.

The school district or other employing unit may pay these 
employer
contributions out of any source of funding available 
for that purpose and
shall forward the contributions to the 
System on the schedule established
for the payment of member 
contributions.

    These employer contributions are intended to offset a 
portion of the cost
to the System of the increases in 
retirement benefits resulting from this
amendatory Act of 1998.

    Each employer of teachers is entitled to a credit against 
the contributions
required under this subsection (e) with 
respect to salaries paid to teachers
for the period January 1, 
2002 through June 30, 2003, equal to the amount paid
by that 
employer under subsection (a-5) of Section 6.6 of the State 
Employees
Group Insurance Act of 1971 with respect to salaries 
paid to teachers for that
period.

    The additional 1% employee contribution required under 
Section 16-152 by
this amendatory Act of 1998 is the 
responsibility of the teacher and not the
teacher's employer, 
unless the employer agrees, through collective bargaining
or 
otherwise, to make the contribution on behalf of the teacher.

    If an employer is required by a contract in effect on May 
1, 1998 between the
employer and an employee organization to 
pay, on behalf of all its full-time
employees
covered by this 
Article, all mandatory employee contributions required under

this Article, then the employer shall be excused from paying 
the employer
contribution required under this subsection (e) 
for the balance of the term
of that contract.  The employer and 
the employee organization shall jointly
certify to the System 
the existence of the contractual requirement, in such
form as 
the System may prescribe.  This exclusion shall cease upon the

termination, extension, or renewal of the contract at any time 
after May 1,
1998.

    (f) If the amount of a teacher's salary for any school year 
used to determine final average salary exceeds the amount of 
his or her salary with the same employer for the previous 
school year by more than 6%, the teacher's employer shall pay 
to the System, in addition to all other payments required under 
this Section and in accordance with guidelines established by 
the System, the present value of the increase in benefits 
resulting from the portion of the increase in salary that is in 
excess of 6%.  This present value shall be computed by the 
System on the basis of the actuarial assumptions and tables 
used in the most recent actuarial valuation of the System that 
is available at the time of the computation.   The employer 
contributions required under this subsection (f) shall be paid 
in the form of a lump sum within 30 days after receipt of the 
bill after the teacher begins receiving benefits under this 
Article.

    The provisions of this subsection (f) do not apply to 
salary increases paid to teachers under contracts or collective 
bargaining agreements entered into, amended, or renewed before 
the effective date of this amendatory Act of the 94th General 
Assembly.

(Source: P.A. 92-505, eff. 12-20-01; 93-2, eff. 4-7-03; 93-665, 
eff. 3-5-04.)

 



    (40 ILCS 5/16-176)  (from Ch. 108 1/2, par. 16-176)



    Sec. 16-176. To adopt actuarial assumptions. For the 5-year 
period ending
June 30, 1997 and every 5 years thereafter, the 
actuary, as technical advisor,
shall make an actuarial

investigation into the mortality, service and compensation 
experience of the
members, annuitants, and beneficiaries of the 
retirement system.   Based upon
the result of that investigation, 
the board shall adopt such
actuarial assumptions as it deems 
appropriate.

    Beginning with the 5-year period ending June 30, 2012 and 
every 5 years thereafter, the actuarial investigation required 
under this Section shall include the System's experience under 
the early retirement without discount option established in 
Section 16-133.2, including consideration of the sufficiency 
of the member and employer contributions under Section 16-133.2 
and the active member contribution under Section 16-152 to 
adequately fund the early retirement without discount option. 
The Board shall promptly communicate the results of the 
actuarial investigation to the Commission on Government 
Forecasting and Accountability. Based on the actuarial  
investigation, the Commission on Government Forecasting and 
Accountability shall, no later than February 1 of the next 
year,  recommend to the General Assembly any proportional 
adjustment in the amounts of the member and employer 
contributions under Section 16-133.2 that it deems necessary. 
If the General Assembly fails to adjust the member and employer 
contributions under Section 16-133.2 in response to the 
Commission's recommendations, then the early retirement 
without discount option under Section 16-133.2 is terminated 
and shall cease to be available at the end of the fiscal year 
in which the Commission made its recommendation to the General 
Assembly.

(Source: P.A. 89-136, eff. 7-14-95.)

 
    (40 ILCS 5/16-203 new)

    Sec. 16-203. Application and expiration of new benefit 
increases.
    (a) As used in this Section, "new benefit increase" means 
an increase in the amount of any benefit provided under this 
Article, or an expansion of the conditions of  eligibility for 
any benefit under this Article, that results from an amendment 
to this Code that takes effect after the effective date of this 
amendatory Act of the 94th General Assembly.
    (b) Notwithstanding any other provision of this Code or any 
subsequent amendment to this Code, every  new benefit increase 
is subject to this Section and shall be deemed to be granted 
only in conformance with and contingent upon compliance with 
the provisions of this Section.

    (c) The Public Act enacting a new benefit increase must 
identify and provide for payment to the System of additional 
funding at least sufficient to fund the resulting annual 
increase in cost to  the System as it accrues.
    Every  new benefit increase is contingent upon the General 
Assembly providing the additional funding required under this 
subsection. The Commission on Government Forecasting and 
Accountability shall analyze whether adequate additional 
funding has been provided for the new benefit increase and 
shall report its analysis to the Public Pension Division of the 
Department of Financial and Professional Regulation.   A new 
benefit increase created by a Public Act that does not include 
the additional funding required under this subsection is null 
and void. If the Public Pension Division determines that the 
additional funding provided for a new benefit increase under 
this subsection is or has become inadequate, it may so certify 
to the Governor and the State Comptroller and, in the absence 
of corrective  action by the General Assembly, the new benefit 
increase shall expire at the end of the fiscal year in which 
the certification is made.

    (d) Every  new benefit increase shall expire 5 years after 
its effective date or on such earlier date as may be specified 
in the language enacting the new benefit increase or provided 
under subsection (c).  This does  not prevent the General 
Assembly from extending or re-creating a new benefit increase 
by law.
    (e) Except as otherwise provided in the language creating 
the new benefit increase,  a new benefit increase that expires 
under this Section continues to apply to persons who applied 
and qualified for the affected benefit while the new benefit 
increase  was in effect and to the affected beneficiaries and 
alternate payees of such persons, but does not apply to any 
other person, including without limitation a person  who 
continues in service after the expiration date and did not 
apply and qualify for the affected benefit while the new 
benefit increase was in effect.

 



    (40 ILCS 5/17-116.1)  (from Ch. 108 1/2, par. 17-116.1)



    Sec. 17-116.1. Early retirement without discount. 

    (a) A member retiring after June 1, 1980 and before June 
30, 1995 and within
6 months of the last day of teaching for 
which retirement contributions were
required, may elect at the 
time of application to make a one time employee
contribution to 
the system and thereby avoid the early retirement reduction in

allowance specified in paragraph (4) of Section 17-116 of this 
Article.  The
exercise of the election shall obligate the last 
Employer to also make a one
time non-refundable contribution to 
the Fund.

    (b) Subject to authorization by the Employer as provided in 
subsection (c),
a member retiring on or after June 30, 1995 and 
on or before June 30, 2010
2005 and
within 6 months of the last 
day of teaching for which retirement
contributions were 
required may elect at the time of application to make a

one-time employee contribution to the Fund and thereby avoid 
the early
retirement reduction in allowance specified in 
paragraph (4) of Section
17-116.  The exercise of the election 
shall obligate the last Employer to
also make a one-time 
nonrefundable contribution to the Fund.

    (c) The benefits provided in subsection (b) are available 
only to members
who retire, during a specified period, from 
employment with an Employer that
has adopted and filed with the 
Board a resolution expressly providing for the
creation of an 
early retirement without discount program under this Section 
for
that period.

    The Employer has the full discretion and authority to 
determine whether an
early retirement without discount program 
is in its best interest and to
provide such a program to its 
eligible employees in accordance with this
Section.  The 
Employer may decide to authorize such a program for one or more

of the following periods:  for the period beginning July 1, 1997 
and ending
June 30, 1998, in which case the resolution must be 
adopted by January 1, 1998;
for the period beginning July 1, 
1998 and ending June 30, 1999, in which case
the resolution 
must be adopted by March 31, 1998; for the period
beginning 
July 1, 1999 and ending June 30, 2000, in which case the 
resolution
must be adopted by March 31, 1999; for the period 
beginning July 1, 2000 and
ending June 30, 2001, in which case 
the resolution must be adopted by March 31,
2000; for the 
period beginning July 1, 2001 and ending June 30, 2002, in 
which
case the resolution must be adopted by March 31, 2001; 
for the period beginning
July 1, 2002 and ending June 30, 2003, 
in which case the resolution must be
adopted by March 31, 2002; 
for the period beginning July 1, 2003 and ending
June 30, 2004, 
in which case the resolution must be adopted by March 31, 2003;

and for the period beginning July 1, 2004 and ending June 30, 
2005, in which
case the resolution must be adopted by March 31, 
2004; for the period
beginning July 1, 2005 and ending June 30, 
2006, in which case the resolution
must be adopted by August 
31, 2005; for the period beginning July 1, 2006 and
ending June 
30, 2007, in which case the resolution must be adopted by June 
30,
2006; for the period beginning July 1, 2007 and ending June 
30, 2008, in which
case the resolution must be adopted by June 
30, 2007; for the period beginning
July 1, 2008 and ending June 
30, 2009, in which case the resolution must be
adopted by June 
30, 2008; and for the period beginning July 1, 2009 and ending

June 30, 2010, in which case the resolution must be adopted by 
June 30, 2009.
The resolution must be filed with the Board 
within 10 days after it is
adopted.  A single resolution may 
authorize an early retirement without
discount program as 
provided in this Section for more than one period.

    Notwithstanding Section 17-157, the Employer shall also 
have full discretion
and authority to determine whether to 
allow its employees who withdrew from
service on or after June 
30, 1995 and before June 27, 1997 to participate in an
early 
retirement without discount program under subsection (b).  An 
early
retirement without discount program for those who 
withdrew from service on or
after June 30, 1995 and before June 
27, 1997 may be authorized only by a
resolution of the Employer 
that is adopted by January 1, 1998 and filed with
the Board 
within 10 days after its adoption.  If such a resolution is duly

adopted and filed, a person who (i) withdrew from service with 
the Employer on
or after June 30, 1995 and before June 27, 
1997, (ii) qualifies for early
retirement without discount 
under subsection (b), (iii) applies to the Fund
within 90 days 
after the authorizing resolution is adopted, and (iv) pays the

required employee contribution shall have his or her retirement 
pension
recalculated in accordance with subsection (b).  The 
resulting increase shall
be effective retroactively to the 
starting date of the retirement pension.

    (d) The one-time employee contribution shall be equal to 7% 
of the retiring
member's highest full-time annual salary rate 
used in the determination of the
average salary rate for 
retirement pension, or if not full-time then the
full-time 
equivalent, multiplied by (1) the number of years the teacher 
is
under age 60, or (2) the number of years the employee's 
creditable service is
less than 34 years, whichever is less.

    The Employer contribution shall be 20% of such salary 
multiplied by such
number of years.

    (e) Upon receipt of the application and election, the Board 
shall determine
the one time employee and Employer 
contributions.  The provisions of this
Section shall not be 
applicable until the employee contribution, if any,
has been 
received by the Fund;
however, the date that contribution is 
received
shall not be considered in determining the effective 
date of retirement.

    (f) The number of employees who may retire under this 
Section in any year
may be limited at the option of the 
Employer to a specified number
percentage of those
eligible, 
not lower than 200, but the Employer and the collective 
bargaining agent for teachers may agree upon a greater 
limitation to the specified number of employees who may retire 
under this Section in any year. The
30%, with the right to 
participate in the early retirement without discount 
authorized under this Section shall
to be allocated
among those 
applying on the basis of seniority in the service of the 
Employer or on such other basis for allocation as the Employer 
and the collective bargaining agent for teachers agree, in 
which case, such other basis may be employed among other 
eligible employees as well.

(Source: P.A. 90-32, eff. 6-27-97; 90-448, eff. 8-16-97; 
90-566, eff.
1-2-98; 91-17, eff. 6-4-99.)

 



    (40 ILCS 5/18-131)  (from Ch. 108 1/2, par. 18-131)


    Sec. 18-131. Financing; employer contributions. 

    (a) The State of Illinois shall make contributions to this 
System by
appropriations of the amounts which, together with 
the contributions of
participants, net earnings on 
investments, and other income, will meet the
costs of 
maintaining and administering this System on a 90% funded basis 
in
accordance with actuarial recommendations.

    (b) The Board shall determine the amount of State 
contributions
required for each fiscal year on the basis of the 
actuarial tables and other
assumptions adopted by the Board and 
the prescribed rate of interest, using
the formula in 
subsection (c).

    (c) For State fiscal years 2011 through 2045, the minimum 
contribution
to the System to be made by the State for each 
fiscal year shall be an amount
determined by the System to be 
sufficient to bring the total assets of the
System up to 90% of 
the total actuarial liabilities of the System by the end of

State fiscal year 2045.  In making these determinations, the 
required State
contribution shall be calculated each year as a 
level percentage of payroll
over the years remaining to and 
including fiscal year 2045 and shall be
determined under the 
projected unit credit actuarial cost method.

    For State fiscal years 1996 through 2005
2010, the State 
contribution to
the System, as a percentage of the applicable 
employee payroll, shall be
increased in equal annual increments 
so that by State fiscal year 2011, the
State is contributing at 
the rate required under this Section.

    Notwithstanding any other provision of this Article, the 
total required State
contribution for State fiscal year 2006 is 
$29,189,400.

    Notwithstanding any other provision of this Article, the 
total required State
contribution for State fiscal year 2007 is 
$35,236,800.

    For each of State fiscal years 2008 through 2010, the State 
contribution to
the System, as a percentage of the applicable 
employee payroll, shall be
increased in equal annual increments 
from the required State contribution for State fiscal year 
2007, so that by State fiscal year 2011, the
State is 
contributing at the rate otherwise required under this Section.

    Beginning in State fiscal year 2046, the minimum State 
contribution for
each fiscal year shall be the amount needed to 
maintain the total assets of
the System at 90% of the total 
actuarial liabilities of the System.

    Notwithstanding any other provision of this Section, the 
required State
contribution for State fiscal year 2005 and for 
fiscal year 2008 and each fiscal year thereafter, as
calculated 
under this Section and
certified under Section 18-140, shall 
not exceed an amount equal to (i) the
amount of the required 
State contribution that would have been calculated under
this 
Section for that fiscal year if the System had not received any 
payments
under subsection (d) of Section 7.2 of the General 
Obligation Bond Act, minus
(ii) the portion of the State's 
total debt service payments for that fiscal
year on the bonds 
issued for the purposes of that Section 7.2, as determined
and 
certified by the Comptroller, that is the same as the System's 
portion of
the total moneys distributed under subsection (d) of 
Section 7.2 of the General
Obligation Bond Act. In determining 
this maximum for State fiscal years 2008 through 2010, however, 
the amount referred to in item (i) shall be increased, as a 
percentage of the applicable employee payroll, in equal 
increments calculated from the sum of the required State 
contribution for State fiscal year 2007 plus the applicable 
portion of the State's total debt service payments for fiscal 
year 2007  on the bonds issued for the purposes of Section 7.2 
of the General
Obligation Bond Act, so that, by State fiscal 
year 2011, the
State is contributing at the rate otherwise 
required under this Section.

(Source: P.A. 93-2, eff. 4-7-03.)

 



    (40 ILCS 5/18-140)
  (from Ch. 108 1/2, par. 18-140)


    Sec. 18-140. To certify required State contributions and 
submit vouchers. 

    (a) The Board shall certify to the Governor, on or before 
November 15 of
each year, the amount of the required State 
contribution to the System for the
following fiscal year.  The 
certification shall include a copy of the actuarial

recommendations upon which it is based.

    On or before May 1, 2004, the Board shall recalculate and 
recertify to
the Governor the amount of the required State 
contribution to the System for
State fiscal year 2005, taking 
into account the amounts appropriated to and
received by the 
System under subsection (d) of Section 7.2 of the General

Obligation Bond Act.

    On or before July 1, 2005, the Board shall recalculate and 
recertify
to the Governor the amount of the required State

contribution to the System for State fiscal year 2006, taking 
into account the changes in required State contributions made 
by this amendatory Act of the 94th General Assembly.

    (b) Beginning in State fiscal year 1996, on or as soon as 
possible after
the 15th day of each month the Board shall 
submit vouchers for payment of State
contributions to the 
System, in a total monthly amount of one-twelfth of the

required annual State contribution certified under subsection 
(a).
From the effective date of this amendatory Act
of the 93rd 
General Assembly through June 30, 2004, the Board shall not

submit vouchers for the remainder of fiscal year 2004 in excess 
of the
fiscal year 2004 certified contribution amount 
determined
under this Section after taking into consideration 
the transfer to the
System under subsection (c) of Section 
6z-61 of the State Finance Act.
These
vouchers shall be paid by 
the State Comptroller and Treasurer by warrants drawn
on the 
funds appropriated to the System for that fiscal year.

    If in any month the amount remaining unexpended from all 
other
appropriations to the System for the applicable fiscal 
year (including the
appropriations to the System under Section 
8.12 of the State Finance Act and
Section 1 of the State 
Pension Funds Continuing Appropriation Act) is less than
the 
amount lawfully vouchered under this Section, the difference 
shall be paid
from the General Revenue Fund under the 
continuing appropriation authority
provided in Section 1.1 of 
the State Pension Funds Continuing Appropriation
Act.

(Source: P.A. 93-2, eff. 4-7-03; 93-665, eff. 3-5-04.)

 
    (40 ILCS 5/18-169 new)

    Sec. 18-169. Application and expiration of new benefit 
increases.
    (a) As used in this Section, "new benefit increase" means 
an increase in the amount of any benefit provided under this 
Article, or an expansion of the conditions of  eligibility for 
any benefit under this Article, that results from an amendment 
to this Code that takes effect after the effective date of this 
amendatory Act of the 94th General Assembly.
    (b) Notwithstanding any other provision of this Code or any 
subsequent amendment to this Code, every  new benefit increase 
is subject to this Section and shall be deemed to be granted 
only in conformance with and contingent upon compliance with 
the provisions of this Section.

    (c) The Public Act enacting a new benefit increase must 
identify and provide for payment to the System of additional 
funding at least sufficient to fund the resulting annual 
increase in cost to  the System as it accrues.
    Every  new benefit increase is contingent upon the General 
Assembly providing the additional funding required under this 
subsection.  The Commission on Government Forecasting and 
Accountability shall analyze whether adequate additional 
funding has been provided for the new benefit increase and 
shall report its analysis to the Public Pension Division of the 
Department of Financial and Professional Regulation. A new 
benefit increase created by a Public Act that does not include 
the additional funding required under this subsection is null 
and void. If the Public Pension Division determines that the 
additional funding provided for a new benefit increase under 
this subsection is or has become inadequate, it may so certify 
to the Governor and the State Comptroller and, in the absence 
of corrective  action by the General Assembly, the new benefit 
increase shall expire at the end of the fiscal year in which 
the certification is made.

    (d) Every  new benefit increase shall expire 5 years after 
its effective date or on such earlier date as may be specified 
in the language enacting the new benefit increase or provided 
under subsection (c).  This does  not prevent the General 
Assembly from extending or re-creating a new benefit increase 
by law.
    (e) Except as otherwise provided in the language creating 
the new benefit increase,  a new benefit increase that expires 
under this Section continues to apply to persons who applied 
and qualified for the affected benefit while the new benefit 
increase  was in effect and to the affected beneficiaries and 
alternate payees of such persons, but does not apply to any 
other person, including without limitation a person  who 
continues in service after the expiration date and did not 
apply and qualify for the affected benefit while the new 
benefit increase was in effect.

 
    Section 90. The State Mandates Act is amended by adding 
Section 8.29 as
follows:


 
    (30 ILCS 805/8.29 new)

    Sec. 8.29. Exempt mandate. Notwithstanding Sections 6 and 8 
of this
Act, no reimbursement by the State is required for the 
implementation of
any mandate created by this amendatory Act of 
the 94th General Assembly.

 
    Section 97. Severability.  The provisions of this Act are 
severable under Section 1.31 of the Statute on Statutes.

 

    Section 99. Effective date. This Act takes effect upon 
becoming law.