103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
SB3628

 

Introduced 2/9/2024, by Sen. Doris Turner

 

SYNOPSIS AS INTRODUCED:
 
See Index

    Amends the Illinois Pension Code. Provides that a security employee of the Department of Corrections or the Department of Juvenile Justice under the Tier 2 provisions is entitled to an annuity calculated under the alternative retirement formula, in lieu of the regular or minimum retirement annuity, only if the person has withdrawn from service with not less than 20 years of eligible creditable service and has attained age 55 (instead of age 60). With regard to Tier 2 members and participants under the Illinois Municipal Retirement Fund (IMRF), Chicago Municipal, Cook County, State Employees, and State Universities Article: changes the retirement age to age 60 with 20 years of service or age 67 with 10 years of service; changes the final average salary calculation to the total salary during the 60 months (instead of 96 months) of service within the last 120 months of service in which the total salary was the highest; rescinds an election for certain benefits for persons under the Chicago Municipal Article; provides that the automatic annual increase in retirement annuity shall be calculated at 3% or one-half the annual unadjusted increase in the consumer-price index-u, whichever is greater (instead of whichever is less) of the originally granted retirement annuity; and makes other changes. Provides that the changes made by the amendatory Act are intended to be retroactive to January 1, 2011 and are applicable without regard to whether a member or participant was in active service on or after the effective date. Amends the State Mandates Act to require implementation without reimbursement.


LRB103 37668 RPS 67795 b

STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT
MAY APPLY

 

 

A BILL FOR

 

SB3628LRB103 37668 RPS 67795 b

1    AN ACT concerning public employee benefits.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Pension Code is amended by
5changing Sections 1-160, 14-152.1, and 15-198 and by adding
6Sections 1-103.4, 1-163, 7-226, 8-251.5, 9-242, 14-157, and
715-203 as follows:
 
8    (40 ILCS 5/1-103.4 new)
9    Sec. 1-103.4. Application of this amendatory Act of the
10103rd General Assembly. The changes made by this amendatory
11Act of the 103rd General Assembly are intended to be
12retroactive to January 1, 2011 and are applicable without
13regard to whether a member or participant was in active
14service on or after the effective date of this amendatory Act
15of the 103rd General Assembly, notwithstanding Section
161-103.1.
 
17    (40 ILCS 5/1-160)
18    (Text of Section from P.A. 102-719)
19    Sec. 1-160. Provisions applicable to new hires.
20    (a) The provisions of this Section apply to a person who,
21on or after January 1, 2011, first becomes a member or a
22participant under any reciprocal retirement system or pension

 

 

SB3628- 2 -LRB103 37668 RPS 67795 b

1fund established under this Code, other than a retirement
2system or pension fund established under Article 2, 3, 4, 5, 6,
37, 15, or 18 of this Code, notwithstanding any other provision
4of this Code to the contrary, but do not apply to any
5self-managed plan established under this Code or to any
6participant of the retirement plan established under Section
722-101; except that this Section applies to a person who
8elected to establish alternative credits by electing in
9writing after January 1, 2011, but before August 8, 2011,
10under Section 7-145.1 of this Code. Notwithstanding anything
11to the contrary in this Section, for purposes of this Section,
12a person who is a Tier 1 regular employee as defined in Section
137-109.4 of this Code or who participated in a retirement
14system under Article 15 prior to January 1, 2011 shall be
15deemed a person who first became a member or participant prior
16to January 1, 2011 under any retirement system or pension fund
17subject to this Section. The changes made to this Section by
18Public Act 98-596 are a clarification of existing law and are
19intended to be retroactive to January 1, 2011 (the effective
20date of Public Act 96-889), notwithstanding the provisions of
21Section 1-103.1 of this Code.
22    This Section does not apply to a person who first becomes a
23noncovered employee under Article 14 on or after the
24implementation date of the plan created under Section 1-161
25for that Article, unless that person elects under subsection
26(b) of Section 1-161 to instead receive the benefits provided

 

 

SB3628- 3 -LRB103 37668 RPS 67795 b

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

 

 

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

 

 

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1    monthly (or annual) salary obtained by dividing the total
2    salary or earnings calculated under Article 16 applicable
3    to the member or participant during the 96 months (or 8
4    years) of service within the last 120 months (or 10 years)
5    of service in which the total salary or earnings
6    calculated under the Article was the highest by the number
7    of months (or years) of service in that period.
8    (b-5) Beginning on January 1, 2011, for all purposes under
9this Code (including without limitation the calculation of
10benefits and employee contributions), the annual earnings,
11salary, or wages (based on the plan year) of a member or
12participant to whom this Section applies shall not exceed
13$106,800; however, that amount shall annually thereafter be
14increased by the lesser of (i) 3% of that amount, including all
15previous adjustments, or (ii) one-half the annual unadjusted
16percentage increase (but not less than zero) in the consumer
17price index-u for the 12 months ending with the September
18preceding each November 1, including all previous adjustments.
19    For the purposes of this Section, "consumer price index-u"
20means the index published by the Bureau of Labor Statistics of
21the United States Department of Labor that measures the
22average change in prices of goods and services purchased by
23all urban consumers, United States city average, all items,
241982-84 = 100. The new amount resulting from each annual
25adjustment shall be determined by the Public Pension Division
26of the Department of Insurance and made available to the

 

 

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

 

 

SB3628- 7 -LRB103 37668 RPS 67795 b

1or otherwise result in any retroactive adjustment of
2disability or other payments made between January 1, 2011 and
3January 1, 2024.
4    (c) A member or participant is entitled to a retirement
5annuity upon written application if he or she has attained age
667 (age 65, with respect to service under Article 12 that is
7subject to this Section, for a member or participant under
8Article 12 who first becomes a member or participant under
9Article 12 on or after January 1, 2022 or who makes the
10election under item (i) of subsection (d-15) of this Section)
11and has at least 10 years of service credit and is otherwise
12eligible under the requirements of the applicable Article.
13    A member or participant who has attained age 62 (age 60,
14with respect to service under Article 12 that is subject to
15this Section, for a member or participant under Article 12 who
16first becomes a member or participant under Article 12 on or
17after January 1, 2022 or who makes the election under item (i)
18of subsection (d-15) of this Section) and has at least 10 years
19of service credit and is otherwise eligible under the
20requirements of the applicable Article may elect to receive
21the lower retirement annuity provided in subsection (d) of
22this Section.
23    (c-5) A person who first becomes a member or a participant
24subject to this Section on or after July 6, 2017 (the effective
25date of Public Act 100-23), notwithstanding any other
26provision of this Code to the contrary, is entitled to a

 

 

SB3628- 8 -LRB103 37668 RPS 67795 b

1retirement annuity under Article 8 or Article 11 upon written
2application if he or she has attained age 65 and has at least
310 years of service credit and is otherwise eligible under the
4requirements of Article 8 or Article 11 of this Code,
5whichever is applicable.
6    (d) The retirement annuity of a member or participant who
7is retiring after attaining age 62 (age 60, with respect to
8service under Article 12 that is subject to this Section, for a
9member or participant under Article 12 who first becomes a
10member or participant under Article 12 on or after January 1,
112022 or who makes the election under item (i) of subsection
12(d-15) of this Section) with at least 10 years of service
13credit shall be reduced by one-half of 1% for each full month
14that the member's age is under age 67 (age 65, with respect to
15service under Article 12 that is subject to this Section, for a
16member or participant under Article 12 who first becomes a
17member or participant under Article 12 on or after January 1,
182022 or who makes the election under item (i) of subsection
19(d-15) of this Section).
20    (d-5) The retirement annuity payable under Article 8 or
21Article 11 to an eligible person subject to subsection (c-5)
22of this Section who is retiring at age 60 with at least 10
23years of service credit shall be reduced by one-half of 1% for
24each full month that the member's age is under age 65.
25    (d-10) Each person who first became a member or
26participant under Article 8 or Article 11 of this Code on or

 

 

SB3628- 9 -LRB103 37668 RPS 67795 b

1after January 1, 2011 and prior to July 6, 2017 (the effective
2date of Public Act 100-23) shall make an irrevocable election
3either:
4        (i) to be eligible for the reduced retirement age
5    provided in subsections (c-5) and (d-5) of this Section,
6    the eligibility for which is conditioned upon the member
7    or participant agreeing to the increases in employee
8    contributions for age and service annuities provided in
9    subsection (a-5) of Section 8-174 of this Code (for
10    service under Article 8) or subsection (a-5) of Section
11    11-170 of this Code (for service under Article 11); or
12        (ii) to not agree to item (i) of this subsection
13    (d-10), in which case the member or participant shall
14    continue to be subject to the retirement age provisions in
15    subsections (c) and (d) of this Section and the employee
16    contributions for age and service annuity as provided in
17    subsection (a) of Section 8-174 of this Code (for service
18    under Article 8) or subsection (a) of Section 11-170 of
19    this Code (for service under Article 11).
20    The election provided for in this subsection shall be made
21between October 1, 2017 and November 15, 2017. A person
22subject to this subsection who makes the required election
23shall remain bound by that election, except that an election
24made under this subsection by a participant under Article 8 is
25rescinded by operation of law and such person is subject to the
26provisions otherwise applicable to a participant who first

 

 

SB3628- 10 -LRB103 37668 RPS 67795 b

1became a participant under Article 8 on or after January 1,
22011. A person subject to this subsection who fails for any
3reason to make the required election within the time specified
4in this subsection shall be deemed to have made the election
5under item (ii).
6    (d-15) Each person who first becomes a member or
7participant under Article 12 on or after January 1, 2011 and
8prior to January 1, 2022 shall make an irrevocable election
9either:
10        (i) to be eligible for the reduced retirement age
11    specified in subsections (c) and (d) of this Section, the
12    eligibility for which is conditioned upon the member or
13    participant agreeing to the increase in employee
14    contributions for service annuities specified in
15    subsection (b) of Section 12-150; or
16        (ii) to not agree to item (i) of this subsection
17    (d-15), in which case the member or participant shall not
18    be eligible for the reduced retirement age specified in
19    subsections (c) and (d) of this Section and shall not be
20    subject to the increase in employee contributions for
21    service annuities specified in subsection (b) of Section
22    12-150.
23    The election provided for in this subsection shall be made
24between January 1, 2022 and April 1, 2022. A person subject to
25this subsection who makes the required election shall remain
26bound by that election. A person subject to this subsection

 

 

SB3628- 11 -LRB103 37668 RPS 67795 b

1who fails for any reason to make the required election within
2the time specified in this subsection shall be deemed to have
3made the election under item (ii).
4    (e) Any retirement annuity or supplemental annuity shall
5be subject to annual increases on the January 1 occurring
6either on or after the attainment of age 67 (age 65, with
7respect to service under Article 12 that is subject to this
8Section, for a member or participant under Article 12 who
9first becomes a member or participant under Article 12 on or
10after January 1, 2022 or who makes the election under item (i)
11of subsection (d-15); and beginning on July 6, 2017 (the
12effective date of Public Act 100-23), age 65 with respect to
13service under Article 8 or Article 11 for eligible persons
14who: (i) are subject to subsection (c-5) of this Section; or
15(ii) made the election under item (i) of subsection (d-10) of
16this Section) or the first anniversary of the annuity start
17date, whichever is later. Each annual increase shall be
18calculated at 3% or one-half the annual unadjusted percentage
19increase (but not less than zero) in the consumer price
20index-u for the 12 months ending with the September preceding
21each November 1, whichever is less, of the originally granted
22retirement annuity. If the annual unadjusted percentage change
23in the consumer price index-u for the 12 months ending with the
24September preceding each November 1 is zero or there is a
25decrease, then the annuity shall not be increased.
26    For the purposes of Section 1-103.1 of this Code, the

 

 

SB3628- 12 -LRB103 37668 RPS 67795 b

1changes made to this Section by Public Act 102-263 are
2applicable without regard to whether the employee was in
3active service on or after August 6, 2021 (the effective date
4of Public Act 102-263).
5    For the purposes of Section 1-103.1 of this Code, the
6changes made to this Section by Public Act 100-23 are
7applicable without regard to whether the employee was in
8active service on or after July 6, 2017 (the effective date of
9Public Act 100-23).
10    (f) The initial survivor's or widow's annuity of an
11otherwise eligible survivor or widow of a retired member or
12participant who first became a member or participant on or
13after January 1, 2011 shall be in the amount of 66 2/3% of the
14retired member's or participant's retirement annuity at the
15date of death. In the case of the death of a member or
16participant who has not retired and who first became a member
17or participant on or after January 1, 2011, eligibility for a
18survivor's or widow's annuity shall be determined by the
19applicable Article of this Code. The initial benefit shall be
2066 2/3% of the earned annuity without a reduction due to age. A
21child's annuity of an otherwise eligible child shall be in the
22amount prescribed under each Article if applicable. Any
23survivor's or widow's annuity shall be increased (1) on each
24January 1 occurring on or after the commencement of the
25annuity if the deceased member died while receiving a
26retirement annuity or (2) in other cases, on each January 1

 

 

SB3628- 13 -LRB103 37668 RPS 67795 b

1occurring after the first anniversary of the commencement of
2the annuity. Each annual increase shall be calculated at 3% or
3one-half the annual unadjusted percentage increase (but not
4less than zero) in the consumer price index-u for the 12 months
5ending with the September preceding each November 1, whichever
6is less, of the originally granted survivor's annuity. If the
7annual unadjusted percentage change in the consumer price
8index-u for the 12 months ending with the September preceding
9each November 1 is zero or there is a decrease, then the
10annuity shall not be increased.
11    (g) The benefits in Section 14-110 apply if the person is a
12fire fighter in the fire protection service of a department, a
13security employee of the Department of Corrections or the
14Department of Juvenile Justice, or a security employee of the
15Department of Innovation and Technology, as those terms are
16defined in subsection (b) and subsection (c) of Section
1714-110. A person who meets the requirements of this Section is
18entitled to an annuity calculated under the provisions of
19Section 14-110, in lieu of the regular or minimum retirement
20annuity, only if the person has withdrawn from service with
21not less than 20 years of eligible creditable service and has
22attained age 60, regardless of whether the attainment of age
2360 occurs while the person is still in service.
24    (g-1) The benefits in Section 14-110 apply if the person
25is a security employee of the Department of Corrections or the
26Department of Juvenile Justice, as those terms are defined in

 

 

SB3628- 14 -LRB103 37668 RPS 67795 b

1subsection (b) and subsection (c) of Section 14-110. A person
2who meets the requirements of this Section is entitled to an
3annuity calculated under the provisions of Section 14-110, in
4lieu of the regular or minimum retirement annuity, only if the
5person has withdrawn from service with not less than 20 years
6of eligible creditable service and has attained age 55,
7regardless of whether the attainment of age 55 occurs while
8the person is still in service.
9    (g-5) The benefits in Section 14-110 apply if the person
10is a State policeman, investigator for the Secretary of State,
11conservation police officer, investigator for the Department
12of Revenue or the Illinois Gaming Board, investigator for the
13Office of the Attorney General, Commerce Commission police
14officer, or arson investigator, as those terms are defined in
15subsection (b) and subsection (c) of Section 14-110. A person
16who meets the requirements of this Section is entitled to an
17annuity calculated under the provisions of Section 14-110, in
18lieu of the regular or minimum retirement annuity, only if the
19person has withdrawn from service with not less than 20 years
20of eligible creditable service and has attained age 55,
21regardless of whether the attainment of age 55 occurs while
22the person is still in service.
23    (h) If a person who first becomes a member or a participant
24of a retirement system or pension fund subject to this Section
25on or after January 1, 2011 is receiving a retirement annuity
26or retirement pension under that system or fund and becomes a

 

 

SB3628- 15 -LRB103 37668 RPS 67795 b

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

 

 

SB3628- 16 -LRB103 37668 RPS 67795 b

1contractual employment, the person's retirement annuity or
2retirement pension payments shall resume and, if appropriate,
3be recalculated under the applicable provisions of this Code.
4    (i) (Blank).
5    (j) Except for conflicts between this Section and Section
61-163, in In the case of a conflict between the provisions of
7this Section and any other provision of this Code, the
8provisions of this Section shall control.
9(Source: P.A. 101-610, eff. 1-1-20; 102-16, eff. 6-17-21;
10102-210, eff. 1-1-22; 102-263, eff. 8-6-21; 102-719, eff.
115-6-22.)
 
12    (Text of Section from P.A. 102-813)
13    Sec. 1-160. Provisions applicable to new hires.
14    (a) The provisions of this Section apply to a person who,
15on or after January 1, 2011, first becomes a member or a
16participant under any reciprocal retirement system or pension
17fund established under this Code, other than a retirement
18system or pension fund established under Article 2, 3, 4, 5, 6,
197, 15, or 18 of this Code, notwithstanding any other provision
20of this Code to the contrary, but do not apply to any
21self-managed plan established under this Code or to any
22participant of the retirement plan established under Section
2322-101; except that this Section applies to a person who
24elected to establish alternative credits by electing in
25writing after January 1, 2011, but before August 8, 2011,

 

 

SB3628- 17 -LRB103 37668 RPS 67795 b

1under Section 7-145.1 of this Code. Notwithstanding anything
2to the contrary in this Section, for purposes of this Section,
3a person who is a Tier 1 regular employee as defined in Section
47-109.4 of this Code or who participated in a retirement
5system under Article 15 prior to January 1, 2011 shall be
6deemed a person who first became a member or participant prior
7to January 1, 2011 under any retirement system or pension fund
8subject to this Section. The changes made to this Section by
9Public Act 98-596 are a clarification of existing law and are
10intended to be retroactive to January 1, 2011 (the effective
11date of Public Act 96-889), notwithstanding the provisions of
12Section 1-103.1 of this Code.
13    This Section does not apply to a person who first becomes a
14noncovered employee under Article 14 on or after the
15implementation date of the plan created under Section 1-161
16for that Article, unless that person elects under subsection
17(b) of Section 1-161 to instead receive the benefits provided
18under this Section and the applicable provisions of that
19Article.
20    This Section does not apply to a person who first becomes a
21member or participant under Article 16 on or after the
22implementation date of the plan created under Section 1-161
23for that Article, unless that person elects under subsection
24(b) of Section 1-161 to instead receive the benefits provided
25under this Section and the applicable provisions of that
26Article.

 

 

SB3628- 18 -LRB103 37668 RPS 67795 b

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

 

 

SB3628- 19 -LRB103 37668 RPS 67795 b

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

 

 

SB3628- 20 -LRB103 37668 RPS 67795 b

1benefits and employee contributions), the annual earnings,
2salary, or wages (based on the plan year) of a member or
3participant to whom this Section applies shall not exceed
4$106,800; however, that amount shall annually thereafter be
5increased by the lesser of (i) 3% of that amount, including all
6previous adjustments, or (ii) one-half the annual unadjusted
7percentage increase (but not less than zero) in the consumer
8price index-u for the 12 months ending with the September
9preceding each November 1, including all previous adjustments.
10    For the purposes of this Section, "consumer price index-u"
11means the index published by the Bureau of Labor Statistics of
12the United States Department of Labor that measures the
13average change in prices of goods and services purchased by
14all urban consumers, United States city average, all items,
151982-84 = 100. The new amount resulting from each annual
16adjustment shall be determined by the Public Pension Division
17of the Department of Insurance and made available to the
18boards of the retirement systems and pension funds by November
191 of each year.
20    (b-10) Beginning on January 1, 2024, for all purposes
21under this Code (including, without limitation, the
22calculation of benefits and employee contributions), the
23annual earnings, salary, or wages (based on the plan year) of a
24member or participant under Article 9 to whom this Section
25applies shall include an annual earnings, salary, or wage cap
26that tracks the Social Security wage base. Maximum annual

 

 

SB3628- 21 -LRB103 37668 RPS 67795 b

1earnings, wages, or salary shall be the annual contribution
2and benefit base established for the applicable year by the
3Commissioner of the Social Security Administration under the
4federal Social Security Act.
5    However, in no event shall the annual earnings, salary, or
6wages for the purposes of this Article and Article 9 exceed any
7limitation imposed on annual earnings, salary, or wages under
8Section 1-117. Under no circumstances shall the maximum amount
9of annual earnings, salary, or wages be greater than the
10amount set forth in this subsection (b-10) as a result of
11reciprocal service or any provisions regarding reciprocal
12services, nor shall the Fund under Article 9 be required to pay
13any refund as a result of the application of this maximum
14annual earnings, salary, and wage cap.
15    Nothing in this subsection (b-10) shall cause or otherwise
16result in any retroactive adjustment of any employee
17contributions. Nothing in this subsection (b-10) shall cause
18or otherwise result in any retroactive adjustment of
19disability or other payments made between January 1, 2011 and
20January 1, 2024.
21    (c) A member or participant is entitled to a retirement
22annuity upon written application if he or she has attained age
2367 (age 65, with respect to service under Article 12 that is
24subject to this Section, for a member or participant under
25Article 12 who first becomes a member or participant under
26Article 12 on or after January 1, 2022 or who makes the

 

 

SB3628- 22 -LRB103 37668 RPS 67795 b

1election under item (i) of subsection (d-15) of this Section)
2and has at least 10 years of service credit and is otherwise
3eligible under the requirements of the applicable Article.
4    A member or participant who has attained age 62 (age 60,
5with respect to service under Article 12 that is subject to
6this Section, for a member or participant under Article 12 who
7first becomes a member or participant under Article 12 on or
8after January 1, 2022 or who makes the election under item (i)
9of subsection (d-15) of this Section) and has at least 10 years
10of service credit and is otherwise eligible under the
11requirements of the applicable Article may elect to receive
12the lower retirement annuity provided in subsection (d) of
13this Section.
14    (c-5) A person who first becomes a member or a participant
15subject to this Section on or after July 6, 2017 (the effective
16date of Public Act 100-23), notwithstanding any other
17provision of this Code to the contrary, is entitled to a
18retirement annuity under Article 8 or Article 11 upon written
19application if he or she has attained age 65 and has at least
2010 years of service credit and is otherwise eligible under the
21requirements of Article 8 or Article 11 of this Code,
22whichever is applicable.
23    (d) The retirement annuity of a member or participant who
24is retiring after attaining age 62 (age 60, with respect to
25service under Article 12 that is subject to this Section, for a
26member or participant under Article 12 who first becomes a

 

 

SB3628- 23 -LRB103 37668 RPS 67795 b

1member or participant under Article 12 on or after January 1,
22022 or who makes the election under item (i) of subsection
3(d-15) of this Section) with at least 10 years of service
4credit shall be reduced by one-half of 1% for each full month
5that the member's age is under age 67 (age 65, with respect to
6service under Article 12 that is subject to this Section, for a
7member or participant under Article 12 who first becomes a
8member or participant under Article 12 on or after January 1,
92022 or who makes the election under item (i) of subsection
10(d-15) of this Section).
11    (d-5) The retirement annuity payable under Article 8 or
12Article 11 to an eligible person subject to subsection (c-5)
13of this Section who is retiring at age 60 with at least 10
14years of service credit shall be reduced by one-half of 1% for
15each full month that the member's age is under age 65.
16    (d-10) Each person who first became a member or
17participant under Article 8 or Article 11 of this Code on or
18after January 1, 2011 and prior to July 6, 2017 (the effective
19date of Public Act 100-23) shall make an irrevocable election
20either:
21        (i) to be eligible for the reduced retirement age
22    provided in subsections (c-5) and (d-5) of this Section,
23    the eligibility for which is conditioned upon the member
24    or participant agreeing to the increases in employee
25    contributions for age and service annuities provided in
26    subsection (a-5) of Section 8-174 of this Code (for

 

 

SB3628- 24 -LRB103 37668 RPS 67795 b

1    service under Article 8) or subsection (a-5) of Section
2    11-170 of this Code (for service under Article 11); or
3        (ii) to not agree to item (i) of this subsection
4    (d-10), in which case the member or participant shall
5    continue to be subject to the retirement age provisions in
6    subsections (c) and (d) of this Section and the employee
7    contributions for age and service annuity as provided in
8    subsection (a) of Section 8-174 of this Code (for service
9    under Article 8) or subsection (a) of Section 11-170 of
10    this Code (for service under Article 11).
11    The election provided for in this subsection shall be made
12between October 1, 2017 and November 15, 2017. A person
13subject to this subsection who makes the required election
14shall remain bound by that election, except that an election
15made under this subsection by a participant under Article 8 is
16rescinded by operation of law and such person is subject to the
17provisions otherwise applicable to a participant who first
18became a participant under Article 8 on or after January 1,
192011. A person subject to this subsection who fails for any
20reason to make the required election within the time specified
21in this subsection shall be deemed to have made the election
22under item (ii).
23    (d-15) Each person who first becomes a member or
24participant under Article 12 on or after January 1, 2011 and
25prior to January 1, 2022 shall make an irrevocable election
26either:

 

 

SB3628- 25 -LRB103 37668 RPS 67795 b

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

 

 

SB3628- 26 -LRB103 37668 RPS 67795 b

1after January 1, 2022 or who makes the election under item (i)
2of subsection (d-15); and beginning on July 6, 2017 (the
3effective date of Public Act 100-23), age 65 with respect to
4service under Article 8 or Article 11 for eligible persons
5who: (i) are subject to subsection (c-5) of this Section; or
6(ii) made the election under item (i) of subsection (d-10) of
7this Section) or the first anniversary of the annuity start
8date, whichever is later. Each annual increase shall be
9calculated at 3% or one-half the annual unadjusted percentage
10increase (but not less than zero) in the consumer price
11index-u for the 12 months ending with the September preceding
12each November 1, whichever is less, of the originally granted
13retirement annuity. If the annual unadjusted percentage change
14in the consumer price index-u for the 12 months ending with the
15September preceding each November 1 is zero or there is a
16decrease, then the annuity shall not be increased.
17    For the purposes of Section 1-103.1 of this Code, the
18changes made to this Section by Public Act 102-263 are
19applicable without regard to whether the employee was in
20active service on or after August 6, 2021 (the effective date
21of Public Act 102-263).
22    For the purposes of Section 1-103.1 of this Code, the
23changes made to this Section by Public Act 100-23 are
24applicable without regard to whether the employee was in
25active service on or after July 6, 2017 (the effective date of
26Public Act 100-23).

 

 

SB3628- 27 -LRB103 37668 RPS 67795 b

1    (f) The initial survivor's or widow's annuity of an
2otherwise eligible survivor or widow of a retired member or
3participant who first became a member or participant on or
4after January 1, 2011 shall be in the amount of 66 2/3% of the
5retired member's or participant's retirement annuity at the
6date of death. In the case of the death of a member or
7participant who has not retired and who first became a member
8or participant on or after January 1, 2011, eligibility for a
9survivor's or widow's annuity shall be determined by the
10applicable Article of this Code. The initial benefit shall be
1166 2/3% of the earned annuity without a reduction due to age. A
12child's annuity of an otherwise eligible child shall be in the
13amount prescribed under each Article if applicable. Any
14survivor's or widow's annuity shall be increased (1) on each
15January 1 occurring on or after the commencement of the
16annuity if the deceased member died while receiving a
17retirement annuity or (2) in other cases, on each January 1
18occurring after the first anniversary of the commencement of
19the annuity. Each annual increase shall be calculated at 3% or
20one-half the annual unadjusted percentage increase (but not
21less than zero) in the consumer price index-u for the 12 months
22ending with the September preceding each November 1, whichever
23is less, of the originally granted survivor's annuity. If the
24annual unadjusted percentage change in the consumer price
25index-u for the 12 months ending with the September preceding
26each November 1 is zero or there is a decrease, then the

 

 

SB3628- 28 -LRB103 37668 RPS 67795 b

1annuity shall not be increased.
2    (g) The benefits in Section 14-110 apply only if the
3person is a State policeman, a fire fighter in the fire
4protection service of a department, a conservation police
5officer, an investigator for the Secretary of State, an arson
6investigator, a Commerce Commission police officer,
7investigator for the Department of Revenue or the Illinois
8Gaming Board, a security employee of the Department of
9Corrections or the Department of Juvenile Justice, or a
10security employee of the Department of Innovation and
11Technology, as those terms are defined in subsection (b) and
12subsection (c) of Section 14-110. A person who meets the
13requirements of this Section is entitled to an annuity
14calculated under the provisions of Section 14-110, in lieu of
15the regular or minimum retirement annuity, only if the person
16has withdrawn from service with not less than 20 years of
17eligible creditable service and has attained age 60,
18regardless of whether the attainment of age 60 occurs while
19the person is still in service.
20    (g-1) The benefits in Section 14-110 apply if the person
21is a security employee of the Department of Corrections or the
22Department of Juvenile Justice, as those terms are defined in
23subsection (b) and subsection (c) of Section 14-110. A person
24who meets the requirements of this Section is entitled to an
25annuity calculated under the provisions of Section 14-110, in
26lieu of the regular or minimum retirement annuity, only if the

 

 

SB3628- 29 -LRB103 37668 RPS 67795 b

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

 

 

SB3628- 30 -LRB103 37668 RPS 67795 b

1contractual service. A person receiving an annuity or
2retirement pension under this Code shall notify the pension
3fund or retirement system from which he or she is receiving an
4annuity or retirement pension, as well as his or her
5contractual employer, of his or her retirement status before
6accepting contractual employment. A person who fails to submit
7such notification shall be guilty of a Class A misdemeanor and
8required to pay a fine of $1,000. Upon termination of that
9contractual employment, the person's retirement annuity or
10retirement pension payments shall resume and, if appropriate,
11be recalculated under the applicable provisions of this Code.
12    (i) (Blank).
13    (j) Except for conflicts between this Section and Section
141-163, in In the case of a conflict between the provisions of
15this Section and any other provision of this Code, the
16provisions of this Section shall control.
17(Source: P.A. 101-610, eff. 1-1-20; 102-16, eff. 6-17-21;
18102-210, eff. 1-1-22; 102-263, eff. 8-6-21; 102-813, eff.
195-13-22.)
 
20    (Text of Section from P.A. 102-956)
21    Sec. 1-160. Provisions applicable to new hires.
22    (a) The provisions of this Section apply to a person who,
23on or after January 1, 2011, first becomes a member or a
24participant under any reciprocal retirement system or pension
25fund established under this Code, other than a retirement

 

 

SB3628- 31 -LRB103 37668 RPS 67795 b

1system or pension fund established under Article 2, 3, 4, 5, 6,
27, 15, or 18 of this Code, notwithstanding any other provision
3of this Code to the contrary, but do not apply to any
4self-managed plan established under this Code or to any
5participant of the retirement plan established under Section
622-101; except that this Section applies to a person who
7elected to establish alternative credits by electing in
8writing after January 1, 2011, but before August 8, 2011,
9under Section 7-145.1 of this Code. Notwithstanding anything
10to the contrary in this Section, for purposes of this Section,
11a person who is a Tier 1 regular employee as defined in Section
127-109.4 of this Code or who participated in a retirement
13system under Article 15 prior to January 1, 2011 shall be
14deemed a person who first became a member or participant prior
15to January 1, 2011 under any retirement system or pension fund
16subject to this Section. The changes made to this Section by
17Public Act 98-596 are a clarification of existing law and are
18intended to be retroactive to January 1, 2011 (the effective
19date of Public Act 96-889), notwithstanding the provisions of
20Section 1-103.1 of this Code.
21    This Section does not apply to a person who first becomes a
22noncovered employee under Article 14 on or after the
23implementation date of the plan created under Section 1-161
24for that Article, unless that person elects under subsection
25(b) of Section 1-161 to instead receive the benefits provided
26under this Section and the applicable provisions of that

 

 

SB3628- 32 -LRB103 37668 RPS 67795 b

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

 

 

SB3628- 33 -LRB103 37668 RPS 67795 b

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

 

 

SB3628- 34 -LRB103 37668 RPS 67795 b

1    salary or earnings calculated under Article 16 applicable
2    to the member or participant during the 96 months (or 8
3    years) of service within the last 120 months (or 10 years)
4    of service in which the total salary or earnings
5    calculated under the Article was the highest by the number
6    of months (or years) of service in that period.
7    (b-5) Beginning on January 1, 2011, for all purposes under
8this Code (including without limitation the calculation of
9benefits and employee contributions), the annual earnings,
10salary, or wages (based on the plan year) of a member or
11participant to whom this Section applies shall not exceed
12$106,800; however, that amount shall annually thereafter be
13increased by the lesser of (i) 3% of that amount, including all
14previous adjustments, or (ii) one-half the annual unadjusted
15percentage increase (but not less than zero) in the consumer
16price index-u for the 12 months ending with the September
17preceding each November 1, including all previous adjustments.
18    For the purposes of this Section, "consumer price index-u"
19means the index published by the Bureau of Labor Statistics of
20the United States Department of Labor that measures the
21average change in prices of goods and services purchased by
22all urban consumers, United States city average, all items,
231982-84 = 100. The new amount resulting from each annual
24adjustment shall be determined by the Public Pension Division
25of the Department of Insurance and made available to the
26boards of the retirement systems and pension funds by November

 

 

SB3628- 35 -LRB103 37668 RPS 67795 b

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

 

 

SB3628- 36 -LRB103 37668 RPS 67795 b

1disability or other payments made between January 1, 2011 and
2January 1, 2024.
3    (c) A member or participant is entitled to a retirement
4annuity upon written application if he or she has attained age
567 (age 65, with respect to service under Article 12 that is
6subject to this Section, for a member or participant under
7Article 12 who first becomes a member or participant under
8Article 12 on or after January 1, 2022 or who makes the
9election under item (i) of subsection (d-15) of this Section)
10and has at least 10 years of service credit and is otherwise
11eligible under the requirements of the applicable Article.
12    A member or participant who has attained age 62 (age 60,
13with respect to service under Article 12 that is subject to
14this Section, for a member or participant under Article 12 who
15first becomes a member or participant under Article 12 on or
16after January 1, 2022 or who makes the election under item (i)
17of subsection (d-15) of this Section) and has at least 10 years
18of service credit and is otherwise eligible under the
19requirements of the applicable Article may elect to receive
20the lower retirement annuity provided in subsection (d) of
21this Section.
22    (c-5) A person who first becomes a member or a participant
23subject to this Section on or after July 6, 2017 (the effective
24date of Public Act 100-23), notwithstanding any other
25provision of this Code to the contrary, is entitled to a
26retirement annuity under Article 8 or Article 11 upon written

 

 

SB3628- 37 -LRB103 37668 RPS 67795 b

1application if he or she has attained age 65 and has at least
210 years of service credit and is otherwise eligible under the
3requirements of Article 8 or Article 11 of this Code,
4whichever is applicable.
5    (d) The retirement annuity of a member or participant who
6is retiring after attaining age 62 (age 60, with respect to
7service under Article 12 that is subject to this Section, for a
8member or participant under Article 12 who first becomes a
9member or participant under Article 12 on or after January 1,
102022 or who makes the election under item (i) of subsection
11(d-15) of this Section) with at least 10 years of service
12credit shall be reduced by one-half of 1% for each full month
13that the member's age is under age 67 (age 65, with respect to
14service under Article 12 that is subject to this Section, for a
15member or participant under Article 12 who first becomes a
16member or participant under Article 12 on or after January 1,
172022 or who makes the election under item (i) of subsection
18(d-15) of this Section).
19    (d-5) The retirement annuity payable under Article 8 or
20Article 11 to an eligible person subject to subsection (c-5)
21of this Section who is retiring at age 60 with at least 10
22years of service credit shall be reduced by one-half of 1% for
23each full month that the member's age is under age 65.
24    (d-10) Each person who first became a member or
25participant under Article 8 or Article 11 of this Code on or
26after January 1, 2011 and prior to July 6, 2017 (the effective

 

 

SB3628- 38 -LRB103 37668 RPS 67795 b

1date of Public Act 100-23) shall make an irrevocable election
2either:
3        (i) to be eligible for the reduced retirement age
4    provided in subsections (c-5) and (d-5) of this Section,
5    the eligibility for which is conditioned upon the member
6    or participant agreeing to the increases in employee
7    contributions for age and service annuities provided in
8    subsection (a-5) of Section 8-174 of this Code (for
9    service under Article 8) or subsection (a-5) of Section
10    11-170 of this Code (for service under Article 11); or
11        (ii) to not agree to item (i) of this subsection
12    (d-10), in which case the member or participant shall
13    continue to be subject to the retirement age provisions in
14    subsections (c) and (d) of this Section and the employee
15    contributions for age and service annuity as provided in
16    subsection (a) of Section 8-174 of this Code (for service
17    under Article 8) or subsection (a) of Section 11-170 of
18    this Code (for service under Article 11).
19    The election provided for in this subsection shall be made
20between October 1, 2017 and November 15, 2017. A person
21subject to this subsection who makes the required election
22shall remain bound by that election, except that an election
23made under this subsection by a participant under Article 8 is
24rescinded by operation of law and such person is subject to the
25provisions otherwise applicable to a participant who first
26became a participant under Article 8 on or after January 1,

 

 

SB3628- 39 -LRB103 37668 RPS 67795 b

12011. A person subject to this subsection who fails for any
2reason to make the required election within the time specified
3in this subsection shall be deemed to have made the election
4under item (ii).
5    (d-15) Each person who first becomes a member or
6participant under Article 12 on or after January 1, 2011 and
7prior to January 1, 2022 shall make an irrevocable election
8either:
9        (i) to be eligible for the reduced retirement age
10    specified in subsections (c) and (d) of this Section, the
11    eligibility for which is conditioned upon the member or
12    participant agreeing to the increase in employee
13    contributions for service annuities specified in
14    subsection (b) of Section 12-150; or
15        (ii) to not agree to item (i) of this subsection
16    (d-15), in which case the member or participant shall not
17    be eligible for the reduced retirement age specified in
18    subsections (c) and (d) of this Section and shall not be
19    subject to the increase in employee contributions for
20    service annuities specified in subsection (b) of Section
21    12-150.
22    The election provided for in this subsection shall be made
23between January 1, 2022 and April 1, 2022. A person subject to
24this subsection who makes the required election shall remain
25bound by that election. A person subject to this subsection
26who fails for any reason to make the required election within

 

 

SB3628- 40 -LRB103 37668 RPS 67795 b

1the time specified in this subsection shall be deemed to have
2made the election under item (ii).
3    (e) Any retirement annuity or supplemental annuity shall
4be subject to annual increases on the January 1 occurring
5either on or after the attainment of age 67 (age 65, with
6respect to service under Article 12 that is subject to this
7Section, for a member or participant under Article 12 who
8first becomes a member or participant under Article 12 on or
9after January 1, 2022 or who makes the election under item (i)
10of subsection (d-15); and beginning on July 6, 2017 (the
11effective date of Public Act 100-23), age 65 with respect to
12service under Article 8 or Article 11 for eligible persons
13who: (i) are subject to subsection (c-5) of this Section; or
14(ii) made the election under item (i) of subsection (d-10) of
15this Section) or the first anniversary of the annuity start
16date, whichever is later. Each annual increase shall be
17calculated at 3% or one-half the annual unadjusted percentage
18increase (but not less than zero) in the consumer price
19index-u for the 12 months ending with the September preceding
20each November 1, whichever is less, of the originally granted
21retirement annuity. If the annual unadjusted percentage change
22in the consumer price index-u for the 12 months ending with the
23September preceding each November 1 is zero or there is a
24decrease, then the annuity shall not be increased.
25    For the purposes of Section 1-103.1 of this Code, the
26changes made to this Section by Public Act 102-263 are

 

 

SB3628- 41 -LRB103 37668 RPS 67795 b

1applicable without regard to whether the employee was in
2active service on or after August 6, 2021 (the effective date
3of Public Act 102-263).
4    For the purposes of Section 1-103.1 of this Code, the
5changes made to this Section by Public Act 100-23 are
6applicable without regard to whether the employee was in
7active service on or after July 6, 2017 (the effective date of
8Public Act 100-23).
9    (f) The initial survivor's or widow's annuity of an
10otherwise eligible survivor or widow of a retired member or
11participant who first became a member or participant on or
12after January 1, 2011 shall be in the amount of 66 2/3% of the
13retired member's or participant's retirement annuity at the
14date of death. In the case of the death of a member or
15participant who has not retired and who first became a member
16or participant on or after January 1, 2011, eligibility for a
17survivor's or widow's annuity shall be determined by the
18applicable Article of this Code. The initial benefit shall be
1966 2/3% of the earned annuity without a reduction due to age. A
20child's annuity of an otherwise eligible child shall be in the
21amount prescribed under each Article if applicable. Any
22survivor's or widow's annuity shall be increased (1) on each
23January 1 occurring on or after the commencement of the
24annuity if the deceased member died while receiving a
25retirement annuity or (2) in other cases, on each January 1
26occurring after the first anniversary of the commencement of

 

 

SB3628- 42 -LRB103 37668 RPS 67795 b

1the annuity. Each annual increase shall be calculated at 3% or
2one-half the annual unadjusted percentage increase (but not
3less than zero) in the consumer price index-u for the 12 months
4ending with the September preceding each November 1, whichever
5is less, of the originally granted survivor's annuity. If the
6annual unadjusted percentage change in the consumer price
7index-u for the 12 months ending with the September preceding
8each November 1 is zero or there is a decrease, then the
9annuity shall not be increased.
10    (g) The benefits in Section 14-110 apply only if the
11person is a State policeman, a fire fighter in the fire
12protection service of a department, a conservation police
13officer, an investigator for the Secretary of State, an
14investigator for the Office of the Attorney General, an arson
15investigator, a Commerce Commission police officer,
16investigator for the Department of Revenue or the Illinois
17Gaming Board, a security employee of the Department of
18Corrections or the Department of Juvenile Justice, or a
19security employee of the Department of Innovation and
20Technology, as those terms are defined in subsection (b) and
21subsection (c) of Section 14-110. A person who meets the
22requirements of this Section is entitled to an annuity
23calculated under the provisions of Section 14-110, in lieu of
24the regular or minimum retirement annuity, only if the person
25has withdrawn from service with not less than 20 years of
26eligible creditable service and has attained age 60,

 

 

SB3628- 43 -LRB103 37668 RPS 67795 b

1regardless of whether the attainment of age 60 occurs while
2the person is still in service.
3    (g-1) The benefits in Section 14-110 apply if the person
4is a security employee of the Department of Corrections or the
5Department of Juvenile Justice, as those terms are defined in
6subsection (b) and subsection (c) of Section 14-110. A person
7who meets the requirements of this Section is entitled to an
8annuity calculated under the provisions of Section 14-110, in
9lieu of the regular or minimum retirement annuity, only if the
10person has withdrawn from service with not less than 20 years
11of eligible creditable service and has attained age 55,
12regardless of whether the attainment of age 55 occurs while
13the person is still in service.
14    (h) If a person who first becomes a member or a participant
15of a retirement system or pension fund subject to this Section
16on or after January 1, 2011 is receiving a retirement annuity
17or retirement pension under that system or fund and becomes a
18member or participant under any other system or fund created
19by this Code and is employed on a full-time basis, except for
20those members or participants exempted from the provisions of
21this Section under subsection (a) of this Section, then the
22person's retirement annuity or retirement pension under that
23system or fund shall be suspended during that employment. Upon
24termination of that employment, the person's retirement
25annuity or retirement pension payments shall resume and be
26recalculated if recalculation is provided for under the

 

 

SB3628- 44 -LRB103 37668 RPS 67795 b

1applicable Article of this Code.
2    If a person who first becomes a member of a retirement
3system or pension fund subject to this Section on or after
4January 1, 2012 and is receiving a retirement annuity or
5retirement pension under that system or fund and accepts on a
6contractual basis a position to provide services to a
7governmental entity from which he or she has retired, then
8that person's annuity or retirement pension earned as an
9active employee of the employer shall be suspended during that
10contractual service. A person receiving an annuity or
11retirement pension under this Code shall notify the pension
12fund or retirement system from which he or she is receiving an
13annuity or retirement pension, as well as his or her
14contractual employer, of his or her retirement status before
15accepting contractual employment. A person who fails to submit
16such notification shall be guilty of a Class A misdemeanor and
17required to pay a fine of $1,000. Upon termination of that
18contractual employment, the person's retirement annuity or
19retirement pension payments shall resume and, if appropriate,
20be recalculated under the applicable provisions of this Code.
21    (i) (Blank).
22    (j) Except for conflicts between this Section and Section
231-163, in In the case of a conflict between the provisions of
24this Section and any other provision of this Code, the
25provisions of this Section shall control.
26(Source: P.A. 102-16, eff. 6-17-21; 102-210, eff. 1-1-22;

 

 

SB3628- 45 -LRB103 37668 RPS 67795 b

1102-263, eff. 8-6-21; 102-956, eff. 5-27-22; 103-529, eff.
28-11-23.)
 
3    (40 ILCS 5/1-163 new)
4    Sec. 1-163. Benefits for certain Tier 2 members.
5    (a) Notwithstanding any provision of law to the contrary,
6including Section 1-160, this Section applies to a person who
7first becomes a member or participant of a pension fund or
8retirement system established under Article 7, 8, 9, 14, or 15
9on or after January 1, 2011. To the extent that any provision
10of this Section conflicts with a provision under those
11Articles or Section 1-160, this Section controls.
12    (b) "Final average salary" means, except as otherwise
13provided in this subsection, the average monthly (or annual)
14salary obtained by dividing the total salary or earnings
15calculated under the Article applicable to the member or
16participant during the 60 consecutive months (or 5 consecutive
17years) of service within the last 120 months (or 10 years) of
18service in which the total salary or earnings calculated under
19the applicable Article was the highest by the number of months
20(or years) of service in that period. For the purposes of a
21person who first becomes a member or participant of any
22retirement system or pension fund to which this Section
23applies on or after January 1, 2011, in this Code, "final
24average salary" shall be substituted for the following:
25        (1) In Article 7 (except for service as sheriff's law

 

 

SB3628- 46 -LRB103 37668 RPS 67795 b

1    enforcement employees), "final rate of earnings".
2        (2) In Articles 8 and 9, "highest average annual
3    salary for any 4 consecutive years within the last 10
4    years of service immediately preceding the date of
5    withdrawal".
6        (3) In Article 14, "final average compensation".
7    (c) Beginning on January 1, 2011, for all purposes under
8this Code (including without limitation the calculation of
9benefits and employee contributions), the annual earnings,
10salary, or wages (based on the plan year) of a member or
11participant to whom this Section applies shall not exceed the
12federal Social Security Wage Base then in effect.
13    (d) A member or participant is entitled to a retirement
14annuity upon written application if he or she has attained age
1560, has at least 20 years of service credit, and is otherwise
16eligible under the requirements of the applicable Article.
17    A member or participant is entitled to a retirement
18annuity upon written application if he or she has attained age
1967, has at least 10 years of service credit, and is otherwise
20eligible under the requirements of the applicable Article.
21    If the Article under which a member or participant
22participates provides for a retirement age of under 60 with a
23reduction in the amount of the annuity for persons who first
24became members before January 1, 2011, then that provision
25shall apply to the member or participant with the same age,
26service, and other eligibility requirements and in the same

 

 

SB3628- 47 -LRB103 37668 RPS 67795 b

1amount, including any reduction due to age, as provided in the
2applicable Article.
3    (e) Any retirement annuity or supplemental annuity shall
4be subject to annual increases on January 1 in the manner and
5with the same eligibility requirements provided for members or
6participants under the applicable Article who first became
7members or participants in that Article before January 1,
82011, except that each annual increase shall be calculated at
93% or one-half the annual unadjusted percentage increase (but
10not less than zero) in the consumer price index-u for the 12
11months ending with the September preceding each November 1,
12whichever is greater, of the originally granted retirement
13annuity. If the annual unadjusted percentage change in the
14consumer price index-u for the 12 months ending with the
15September preceding each November 1 is zero or there is a
16decrease, then the annuity shall not be increased.
17    For the purposes of this Section, "consumer price index-u"
18means the index published by the Bureau of Labor Statistics of
19the United States Department of Labor that measures the
20average change in prices of goods and services purchased by
21all urban consumers, United States city average, all items,
221982-84 = 100. The new amount resulting from each annual
23adjustment shall be determined by the Public Pension Division
24of the Department of Insurance and made available to the
25boards of the retirement systems and pension funds by November
261 of each year.
 

 

 

SB3628- 48 -LRB103 37668 RPS 67795 b

1    (40 ILCS 5/7-226 new)
2    Sec. 7-226. Application of Section 1-163. To the extent
3that any provision of this Article conflicts with Section
41-163, Section 1-163 controls.
 
5    (40 ILCS 5/8-251.5 new)
6    Sec. 8-251.5. Application of Section 1-163. To the extent
7that any provision of this Article conflicts with Section
81-163, Section 1-163 controls.
 
9    (40 ILCS 5/9-242 new)
10    Sec. 9-242. Application of Section 1-163. To the extent
11that any provision of this Article conflicts with Section
121-163, Section 1-163 controls.
 
13    (40 ILCS 5/14-152.1)
14    Sec. 14-152.1. Application and expiration of new benefit
15increases.
16    (a) As used in this Section, "new benefit increase" means
17an increase in the amount of any benefit provided under this
18Article, or an expansion of the conditions of eligibility for
19any benefit under this Article, that results from an amendment
20to this Code that takes effect after June 1, 2005 (the
21effective date of Public Act 94-4). "New benefit increase",
22however, does not include any benefit increase resulting from

 

 

SB3628- 49 -LRB103 37668 RPS 67795 b

1the changes made to Article 1 or this Article by Public Act
296-37, Public Act 100-23, Public Act 100-587, Public Act
3100-611, Public Act 101-10, Public Act 101-610, Public Act
4102-210, Public Act 102-856, Public Act 102-956, or this
5amendatory Act of the 103rd General Assembly this amendatory
6Act of the 102nd General Assembly.
7    (b) Notwithstanding any other provision of this Code or
8any subsequent amendment to this Code, every new benefit
9increase is subject to this Section and shall be deemed to be
10granted only in conformance with and contingent upon
11compliance with the provisions of this Section.
12    (c) The Public Act enacting a new benefit increase must
13identify and provide for payment to the System of additional
14funding at least sufficient to fund the resulting annual
15increase in cost to the System as it accrues.
16    Every new benefit increase is contingent upon the General
17Assembly providing the additional funding required under this
18subsection. The Commission on Government Forecasting and
19Accountability shall analyze whether adequate additional
20funding has been provided for the new benefit increase and
21shall report its analysis to the Public Pension Division of
22the Department of Insurance. A new benefit increase created by
23a Public Act that does not include the additional funding
24required under this subsection is null and void. If the Public
25Pension Division determines that the additional funding
26provided for a new benefit increase under this subsection is

 

 

SB3628- 50 -LRB103 37668 RPS 67795 b

1or has become inadequate, it may so certify to the Governor and
2the State Comptroller and, in the absence of corrective action
3by the General Assembly, the new benefit increase shall expire
4at the end of the fiscal year in which the certification is
5made.
6    (d) Every new benefit increase shall expire 5 years after
7its effective date or on such earlier date as may be specified
8in the language enacting the new benefit increase or provided
9under subsection (c). This does not prevent the General
10Assembly from extending or re-creating a new benefit increase
11by law.
12    (e) Except as otherwise provided in the language creating
13the new benefit increase, a new benefit increase that expires
14under this Section continues to apply to persons who applied
15and qualified for the affected benefit while the new benefit
16increase was in effect and to the affected beneficiaries and
17alternate payees of such persons, but does not apply to any
18other person, including, without limitation, a person who
19continues in service after the expiration date and did not
20apply and qualify for the affected benefit while the new
21benefit increase was in effect.
22(Source: P.A. 101-10, eff. 6-5-19; 101-81, eff. 7-12-19;
23101-610, eff. 1-1-20; 102-210, eff. 7-30-21; 102-856, eff.
241-1-23; 102-956, eff. 5-27-22.)
 
25    (40 ILCS 5/14-157 new)

 

 

SB3628- 51 -LRB103 37668 RPS 67795 b

1    Sec. 14-157. Application of Section 1-163. To the extent
2that any provision of this Article conflicts with Section
31-163, Section 1-163 controls.
 
4    (40 ILCS 5/15-198)
5    Sec. 15-198. Application and expiration of new benefit
6increases.
7    (a) As used in this Section, "new benefit increase" means
8an increase in the amount of any benefit provided under this
9Article, or an expansion of the conditions of eligibility for
10any benefit under this Article, that results from an amendment
11to this Code that takes effect after June 1, 2005 (the
12effective date of Public Act 94-4). "New benefit increase",
13however, does not include any benefit increase resulting from
14the changes made to Article 1 or this Article by Public Act
15100-23, Public Act 100-587, Public Act 100-769, Public Act
16101-10, Public Act 101-610, Public Act 102-16, Public Act
17103-80, Public Act 103-548, or this amendatory Act of the
18103rd General Assembly or this amendatory Act of the 103rd
19General Assembly.
20    (b) Notwithstanding any other provision of this Code or
21any subsequent amendment to this Code, every new benefit
22increase is subject to this Section and shall be deemed to be
23granted only in conformance with and contingent upon
24compliance with the provisions of this Section.
25    (c) The Public Act enacting a new benefit increase must

 

 

SB3628- 52 -LRB103 37668 RPS 67795 b

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

 

 

SB3628- 53 -LRB103 37668 RPS 67795 b

1the new benefit increase, a new benefit increase that expires
2under this Section continues to apply to persons who applied
3and qualified for the affected benefit while the new benefit
4increase was in effect and to the affected beneficiaries and
5alternate payees of such persons, but does not apply to any
6other person, including, without limitation, a person who
7continues in service after the expiration date and did not
8apply and qualify for the affected benefit while the new
9benefit increase was in effect.
10(Source: P.A. 102-16, eff. 6-17-21; 103-80, eff. 6-9-23;
11103-548, eff. 8-11-23; revised 8-31-23.)
 
12    (40 ILCS 5/15-203 new)
13    Sec. 15-203. Application of Section 1-163. To the extent
14that any provision of this Article conflicts with Section
151-163, Section 1-163 controls.
 
16    Section 90. The State Mandates Act is amended by adding
17Section 8.48 as follows:
 
18    (30 ILCS 805/8.48 new)
19    Sec. 8.48. Exempt mandate. Notwithstanding Sections 6 and
208 of this Act, no reimbursement by the State is required for
21the implementation of any mandate created by this amendatory
22Act of the 103rd General Assembly.

 

 

SB3628- 54 -LRB103 37668 RPS 67795 b

1 INDEX
2 Statutes amended in order of appearance
3    40 ILCS 5/1-103.4 new
4    40 ILCS 5/1-160
5    40 ILCS 5/1-163 new
6    40 ILCS 5/7-226 new
7    40 ILCS 5/8-251.5 new
8    40 ILCS 5/9-242 new
9    40 ILCS 5/14-152.1
10    40 ILCS 5/14-157 new
11    40 ILCS 5/15-198
12    40 ILCS 5/15-203 new
13    30 ILCS 805/8.48 new