103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB3266

 

Introduced 2/17/2023, by Rep. Jay Hoffman

 

SYNOPSIS AS INTRODUCED:
 
40 ILCS 5/1-160
40 ILCS 5/14-152.1

    Amends the General Provisions and State Employee Articles of the Illinois Pension Code. Provides that for a Tier 2 State policeman for all purposes under the Code, including, without limitation, the calculation of benefits and employee contributions, the annual earnings, salary, or wages based on the plan year of a State policeman shall not exceed the amount determined by the Social Security Administration to be the Old-Age, Survivors and Disability Insurance Contribution and Benefit Base (instead of $106,800, as annually adjusted). Provides that any benefit increase that results from the amendatory Act is excluded from the definition of "new benefit increase". Effective immediately.


LRB103 28897 RPS 55283 b

 

 

A BILL FOR

 

HB3266LRB103 28897 RPS 55283 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 and 14-152.1 as follows:
 
6    (40 ILCS 5/1-160)
7    (Text of Section from P.A. 102-719)
8    Sec. 1-160. Provisions applicable to new hires.
9    (a) The provisions of this Section apply to a person who,
10on or after January 1, 2011, first becomes a member or a
11participant under any reciprocal retirement system or pension
12fund established under this Code, other than a retirement
13system or pension fund established under Article 2, 3, 4, 5, 6,
147, 15, or 18 of this Code, notwithstanding any other provision
15of this Code to the contrary, but do not apply to any
16self-managed plan established under this Code or to any
17participant of the retirement plan established under Section
1822-101; except that this Section applies to a person who
19elected to establish alternative credits by electing in
20writing after January 1, 2011, but before August 8, 2011,
21under Section 7-145.1 of this Code. Notwithstanding anything
22to the contrary in this Section, for purposes of this Section,
23a person who is a Tier 1 regular employee as defined in Section

 

 

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17-109.4 of this Code or who participated in a retirement
2system under Article 15 prior to January 1, 2011 shall be
3deemed a person who first became a member or participant prior
4to January 1, 2011 under any retirement system or pension fund
5subject to this Section. The changes made to this Section by
6Public Act 98-596 are a clarification of existing law and are
7intended to be retroactive to January 1, 2011 (the effective
8date of Public Act 96-889), notwithstanding the provisions of
9Section 1-103.1 of this Code.
10    This Section does not apply to a person who first becomes a
11noncovered employee under Article 14 on or after the
12implementation date of the plan created under Section 1-161
13for that Article, unless that person elects under subsection
14(b) of Section 1-161 to instead receive the benefits provided
15under this Section and the applicable provisions of that
16Article.
17    This Section does not apply to a person who first becomes a
18member or participant under Article 16 on or after the
19implementation date of the plan created under Section 1-161
20for that Article, unless that person elects under subsection
21(b) of Section 1-161 to instead receive the benefits provided
22under this Section and the applicable provisions of that
23Article.
24    This Section does not apply to a person who elects under
25subsection (c-5) of Section 1-161 to receive the benefits
26under Section 1-161.

 

 

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

 

 

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

 

 

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1participant to whom this Section applies shall not exceed
2$106,800; however, that amount shall annually thereafter be
3increased by the lesser of (i) 3% of that amount, including all
4previous adjustments, or (ii) one-half the annual unadjusted
5percentage increase (but not less than zero) in the consumer
6price index-u for the 12 months ending with the September
7preceding each November 1, including all previous adjustments.
8    For the purposes of this Section, "consumer price index-u"
9means the index published by the Bureau of Labor Statistics of
10the United States Department of Labor that measures the
11average change in prices of goods and services purchased by
12all urban consumers, United States city average, all items,
131982-84 = 100. The new amount resulting from each annual
14adjustment shall be determined by the Public Pension Division
15of the Department of Insurance and made available to the
16boards of the retirement systems and pension funds by November
171 of each year.
18    (b-10) Beginning on the effective date of this amendatory
19Act of the 103rd General Assembly, for a State policeman to
20whom this Section applies and for all purposes under this Code
21(including, without limitation, the calculation of benefits
22and employee contributions), the annual earnings, salary, or
23wages (based on the plan year) of a State policeman shall not
24exceed the amount determined by the Social Security
25Administration to be the Old-Age, Survivors and Disability
26Insurance Contribution and Benefit Base.

 

 

HB3266- 6 -LRB103 28897 RPS 55283 b

1    (c) A member or participant is entitled to a retirement
2annuity upon written application if he or she has attained age
367 (age 65, with respect to service under Article 12 that is
4subject to this Section, for a member or participant under
5Article 12 who first becomes a member or participant under
6Article 12 on or after January 1, 2022 or who makes the
7election under item (i) of subsection (d-15) of this Section)
8and has at least 10 years of service credit and is otherwise
9eligible under the requirements of the applicable Article.
10    A member or participant who has attained age 62 (age 60,
11with respect to service under Article 12 that is subject to
12this Section, for a member or participant under Article 12 who
13first becomes a member or participant under Article 12 on or
14after January 1, 2022 or who makes the election under item (i)
15of subsection (d-15) of this Section) and has at least 10 years
16of service credit and is otherwise eligible under the
17requirements of the applicable Article may elect to receive
18the lower retirement annuity provided in subsection (d) of
19this Section.
20    (c-5) A person who first becomes a member or a participant
21subject to this Section on or after July 6, 2017 (the effective
22date of Public Act 100-23), notwithstanding any other
23provision of this Code to the contrary, is entitled to a
24retirement annuity under Article 8 or Article 11 upon written
25application if he or she has attained age 65 and has at least
2610 years of service credit and is otherwise eligible under the

 

 

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1requirements of Article 8 or Article 11 of this Code,
2whichever is applicable.
3    (d) The retirement annuity of a member or participant who
4is retiring after attaining age 62 (age 60, with respect to
5service under Article 12 that is subject to this Section, for a
6member or participant under Article 12 who first becomes a
7member or participant under Article 12 on or after January 1,
82022 or who makes the election under item (i) of subsection
9(d-15) of this Section) with at least 10 years of service
10credit shall be reduced by one-half of 1% for each full month
11that the member's age is under age 67 (age 65, with respect to
12service under Article 12 that is subject to this Section, for a
13member or participant under Article 12 who first becomes a
14member or participant under Article 12 on or after January 1,
152022 or who makes the election under item (i) of subsection
16(d-15) of this Section).
17    (d-5) The retirement annuity payable under Article 8 or
18Article 11 to an eligible person subject to subsection (c-5)
19of this Section who is retiring at age 60 with at least 10
20years of service credit shall be reduced by one-half of 1% for
21each full month that the member's age is under age 65.
22    (d-10) Each person who first became a member or
23participant under Article 8 or Article 11 of this Code on or
24after January 1, 2011 and prior to July 6, 2017 (the effective
25date of Public Act 100-23) shall make an irrevocable election
26either:

 

 

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

 

 

HB3266- 9 -LRB103 28897 RPS 55283 b

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

 

 

HB3266- 10 -LRB103 28897 RPS 55283 b

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

 

 

HB3266- 11 -LRB103 28897 RPS 55283 b

1Public Act 100-23).
2    (f) The initial survivor's or widow's annuity of an
3otherwise eligible survivor or widow of a retired member or
4participant who first became a member or participant on or
5after January 1, 2011 shall be in the amount of 66 2/3% of the
6retired member's or participant's retirement annuity at the
7date of death. In the case of the death of a member or
8participant who has not retired and who first became a member
9or participant on or after January 1, 2011, eligibility for a
10survivor's or widow's annuity shall be determined by the
11applicable Article of this Code. The initial benefit shall be
1266 2/3% of the earned annuity without a reduction due to age. A
13child's annuity of an otherwise eligible child shall be in the
14amount prescribed under each Article if applicable. Any
15survivor's or widow's annuity shall be increased (1) on each
16January 1 occurring on or after the commencement of the
17annuity if the deceased member died while receiving a
18retirement annuity or (2) in other cases, on each January 1
19occurring after the first anniversary of the commencement of
20the annuity. Each annual increase shall be calculated at 3% or
21one-half the annual unadjusted percentage increase (but not
22less than zero) in the consumer price index-u for the 12 months
23ending with the September preceding each November 1, whichever
24is less, of the originally granted survivor's annuity. If the
25annual unadjusted percentage change in the consumer price
26index-u for the 12 months ending with the September preceding

 

 

HB3266- 12 -LRB103 28897 RPS 55283 b

1each November 1 is zero or there is a decrease, then the
2annuity shall not be increased.
3    (g) The benefits in Section 14-110 apply if the person is a
4fire fighter in the fire protection service of a department, a
5security employee of the Department of Corrections or the
6Department of Juvenile Justice, or a security employee of the
7Department of Innovation and Technology, as those terms are
8defined in subsection (b) and subsection (c) of Section
914-110. A person who meets the requirements of this Section is
10entitled to an annuity calculated under the provisions of
11Section 14-110, in lieu of the regular or minimum retirement
12annuity, only if the person has withdrawn from service with
13not less than 20 years of eligible creditable service and has
14attained age 60, regardless of whether the attainment of age
1560 occurs while the person is still in service.
16    (g-5) The benefits in Section 14-110 apply if the person
17is a State policeman, investigator for the Secretary of State,
18conservation police officer, investigator for the Department
19of Revenue or the Illinois Gaming Board, investigator for the
20Office of the Attorney General, Commerce Commission police
21officer, or arson investigator, as those terms are defined in
22subsection (b) and subsection (c) of Section 14-110. A person
23who meets the requirements of this Section is entitled to an
24annuity calculated under the provisions of Section 14-110, in
25lieu of the regular or minimum retirement annuity, only if the
26person has withdrawn from service with not less than 20 years

 

 

HB3266- 13 -LRB103 28897 RPS 55283 b

1of eligible creditable service and has attained age 55,
2regardless of whether the attainment of age 55 occurs while
3the person is still in service.
4    (h) If a person who first becomes a member or a participant
5of a retirement system or pension fund subject to this Section
6on or after January 1, 2011 is receiving a retirement annuity
7or retirement pension under that system or fund and becomes a
8member or participant under any other system or fund created
9by this Code and is employed on a full-time basis, except for
10those members or participants exempted from the provisions of
11this Section under subsection (a) of this Section, then the
12person's retirement annuity or retirement pension under that
13system or fund shall be suspended during that employment. Upon
14termination of that employment, the person's retirement
15annuity or retirement pension payments shall resume and be
16recalculated if recalculation is provided for under the
17applicable Article of this Code.
18    If a person who first becomes a member of a retirement
19system or pension fund subject to this Section on or after
20January 1, 2012 and is receiving a retirement annuity or
21retirement pension under that system or fund and accepts on a
22contractual basis a position to provide services to a
23governmental entity from which he or she has retired, then
24that person's annuity or retirement pension earned as an
25active employee of the employer shall be suspended during that
26contractual service. A person receiving an annuity or

 

 

HB3266- 14 -LRB103 28897 RPS 55283 b

1retirement pension under this Code shall notify the pension
2fund or retirement system from which he or she is receiving an
3annuity or retirement pension, as well as his or her
4contractual employer, of his or her retirement status before
5accepting contractual employment. A person who fails to submit
6such notification shall be guilty of a Class A misdemeanor and
7required to pay a fine of $1,000. Upon termination of that
8contractual employment, the person's retirement annuity or
9retirement pension payments shall resume and, if appropriate,
10be recalculated under the applicable provisions of this Code.
11    (i) (Blank).
12    (j) In the case of a conflict between the provisions of
13this Section and any other provision of this Code, the
14provisions of this Section shall control.
15(Source: P.A. 101-610, eff. 1-1-20; 102-16, eff. 6-17-21;
16102-210, eff. 1-1-22; 102-263, eff. 8-6-21; 102-719, eff.
175-6-22.)
 
18    (Text of Section from P.A. 102-813)
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
23fund established under this Code, other than a retirement
24system or pension fund established under Article 2, 3, 4, 5, 6,
257, 15, or 18 of this Code, notwithstanding any other provision

 

 

HB3266- 15 -LRB103 28897 RPS 55283 b

1of this Code to the contrary, but do not apply to any
2self-managed plan established under this Code or to any
3participant of the retirement plan established under Section
422-101; except that this Section applies to a person who
5elected to establish alternative credits by electing in
6writing after January 1, 2011, but before August 8, 2011,
7under Section 7-145.1 of this Code. Notwithstanding anything
8to the contrary in this Section, for purposes of this Section,
9a person who is a Tier 1 regular employee as defined in Section
107-109.4 of this Code or who participated in a retirement
11system under Article 15 prior to January 1, 2011 shall be
12deemed a person who first became a member or participant prior
13to January 1, 2011 under any retirement system or pension fund
14subject to this Section. The changes made to this Section by
15Public Act 98-596 are a clarification of existing law and are
16intended to be retroactive to January 1, 2011 (the effective
17date of Public Act 96-889), notwithstanding the provisions of
18Section 1-103.1 of this Code.
19    This Section does not apply to a person who first becomes a
20noncovered employee under Article 14 on or after the
21implementation date of the plan created under Section 1-161
22for that Article, unless that person elects under subsection
23(b) of Section 1-161 to instead receive the benefits provided
24under this Section and the applicable provisions of that
25Article.
26    This Section does not apply to a person who first becomes a

 

 

HB3266- 16 -LRB103 28897 RPS 55283 b

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

 

 

HB3266- 17 -LRB103 28897 RPS 55283 b

1retirement system or pension fund to which this Section
2applies on or after January 1, 2011, in this Code, "final
3average salary" shall be substituted for the following:
4        (1) (Blank).
5        (2) In Articles 8, 9, 10, 11, and 12, "highest average
6    annual salary for any 4 consecutive years within the last
7    10 years of service immediately preceding the date of
8    withdrawal".
9        (3) In Article 13, "average final salary".
10        (4) In Article 14, "final average compensation".
11        (5) In Article 17, "average salary".
12        (6) In Section 22-207, "wages or salary received by
13    him at the date of retirement or discharge".
14    A member of the Teachers' Retirement System of the State
15of Illinois who retires on or after June 1, 2021 and for whom
16the 2020-2021 school year is used in the calculation of the
17member's final average salary shall use the higher of the
18following for the purpose of determining the member's final
19average salary:
20        (A) the amount otherwise calculated under the first
21    paragraph of this subsection; or
22        (B) an amount calculated by the Teachers' Retirement
23    System of the State of Illinois using the average of the
24    monthly (or annual) salary obtained by dividing the total
25    salary or earnings calculated under Article 16 applicable
26    to the member or participant during the 96 months (or 8

 

 

HB3266- 18 -LRB103 28897 RPS 55283 b

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

 

 

HB3266- 19 -LRB103 28897 RPS 55283 b

1    (b-10) Beginning on the effective date of this amendatory
2Act of the 103rd General Assembly, for a State policeman to
3whom this Section applies and for all purposes under this Code
4(including, without limitation, the calculation of benefits
5and employee contributions), the annual earnings, salary, or
6wages (based on the plan year) of a State policeman shall not
7exceed the amount determined by the Social Security
8Administration to be the Old-Age, Survivors and Disability
9Insurance Contribution and Benefit Base.
10    (c) A member or participant is entitled to a retirement
11annuity upon written application if he or she has attained age
1267 (age 65, with respect to service under Article 12 that is
13subject to this Section, for a member or participant under
14Article 12 who first becomes a member or participant under
15Article 12 on or after January 1, 2022 or who makes the
16election under item (i) of subsection (d-15) of this Section)
17and has at least 10 years of service credit and is otherwise
18eligible under the requirements of the applicable Article.
19    A member or participant who has attained age 62 (age 60,
20with respect to service under Article 12 that is subject to
21this Section, for a member or participant under Article 12 who
22first becomes a member or participant under Article 12 on or
23after January 1, 2022 or who makes the election under item (i)
24of subsection (d-15) of this Section) and has at least 10 years
25of service credit and is otherwise eligible under the
26requirements of the applicable Article may elect to receive

 

 

HB3266- 20 -LRB103 28897 RPS 55283 b

1the lower retirement annuity provided in subsection (d) of
2this Section.
3    (c-5) A person who first becomes a member or a participant
4subject to this Section on or after July 6, 2017 (the effective
5date of Public Act 100-23), notwithstanding any other
6provision of this Code to the contrary, is entitled to a
7retirement annuity under Article 8 or Article 11 upon written
8application if he or she has attained age 65 and has at least
910 years of service credit and is otherwise eligible under the
10requirements of Article 8 or Article 11 of this Code,
11whichever is applicable.
12    (d) The retirement annuity of a member or participant who
13is retiring after attaining age 62 (age 60, 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) with at least 10 years of service
19credit shall be reduced by one-half of 1% for each full month
20that the member's age is under age 67 (age 65, with respect to
21service under Article 12 that is subject to this Section, for a
22member or participant under Article 12 who first becomes a
23member or participant under Article 12 on or after January 1,
242022 or who makes the election under item (i) of subsection
25(d-15) of this Section).
26    (d-5) The retirement annuity payable under Article 8 or

 

 

HB3266- 21 -LRB103 28897 RPS 55283 b

1Article 11 to an eligible person subject to subsection (c-5)
2of this Section who is retiring at age 60 with at least 10
3years of service credit shall be reduced by one-half of 1% for
4each full month that the member's age is under age 65.
5    (d-10) Each person who first became a member or
6participant under Article 8 or Article 11 of this Code on or
7after January 1, 2011 and prior to July 6, 2017 (the effective
8date of Public Act 100-23) shall make an irrevocable election
9either:
10        (i) to be eligible for the reduced retirement age
11    provided in subsections (c-5) and (d-5) of this Section,
12    the eligibility for which is conditioned upon the member
13    or participant agreeing to the increases in employee
14    contributions for age and service annuities provided in
15    subsection (a-5) of Section 8-174 of this Code (for
16    service under Article 8) or subsection (a-5) of Section
17    11-170 of this Code (for service under Article 11); or
18        (ii) to not agree to item (i) of this subsection
19    (d-10), in which case the member or participant shall
20    continue to be subject to the retirement age provisions in
21    subsections (c) and (d) of this Section and the employee
22    contributions for age and service annuity as provided in
23    subsection (a) of Section 8-174 of this Code (for service
24    under Article 8) or subsection (a) of Section 11-170 of
25    this Code (for service under Article 11).
26    The election provided for in this subsection shall be made

 

 

HB3266- 22 -LRB103 28897 RPS 55283 b

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

 

 

HB3266- 23 -LRB103 28897 RPS 55283 b

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

 

 

HB3266- 24 -LRB103 28897 RPS 55283 b

1    For the purposes of Section 1-103.1 of this Code, the
2changes made to this Section by Public Act 102-263 are
3applicable without regard to whether the employee was in
4active service on or after August 6, 2021 (the effective date
5of Public Act 102-263).
6    For the purposes of Section 1-103.1 of this Code, the
7changes made to this Section by Public Act 100-23 are
8applicable without regard to whether the employee was in
9active service on or after July 6, 2017 (the effective date of
10Public Act 100-23).
11    (f) The initial survivor's or widow's annuity of an
12otherwise eligible survivor or widow of a retired member or
13participant who first became a member or participant on or
14after January 1, 2011 shall be in the amount of 66 2/3% of the
15retired member's or participant's retirement annuity at the
16date of death. In the case of the death of a member or
17participant who has not retired and who first became a member
18or participant on or after January 1, 2011, eligibility for a
19survivor's or widow's annuity shall be determined by the
20applicable Article of this Code. The initial benefit shall be
2166 2/3% of the earned annuity without a reduction due to age. A
22child's annuity of an otherwise eligible child shall be in the
23amount prescribed under each Article if applicable. Any
24survivor's or widow's annuity shall be increased (1) on each
25January 1 occurring on or after the commencement of the
26annuity if the deceased member died while receiving a

 

 

HB3266- 25 -LRB103 28897 RPS 55283 b

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

 

 

HB3266- 26 -LRB103 28897 RPS 55283 b

1eligible creditable service and has attained age 60,
2regardless of whether the attainment of age 60 occurs while
3the person is still in service.
4    (h) If a person who first becomes a member or a participant
5of a retirement system or pension fund subject to this Section
6on or after January 1, 2011 is receiving a retirement annuity
7or retirement pension under that system or fund and becomes a
8member or participant under any other system or fund created
9by this Code and is employed on a full-time basis, except for
10those members or participants exempted from the provisions of
11this Section under subsection (a) of this Section, then the
12person's retirement annuity or retirement pension under that
13system or fund shall be suspended during that employment. Upon
14termination of that employment, the person's retirement
15annuity or retirement pension payments shall resume and be
16recalculated if recalculation is provided for under the
17applicable Article of this Code.
18    If a person who first becomes a member of a retirement
19system or pension fund subject to this Section on or after
20January 1, 2012 and is receiving a retirement annuity or
21retirement pension under that system or fund and accepts on a
22contractual basis a position to provide services to a
23governmental entity from which he or she has retired, then
24that person's annuity or retirement pension earned as an
25active employee of the employer shall be suspended during that
26contractual service. A person receiving an annuity or

 

 

HB3266- 27 -LRB103 28897 RPS 55283 b

1retirement pension under this Code shall notify the pension
2fund or retirement system from which he or she is receiving an
3annuity or retirement pension, as well as his or her
4contractual employer, of his or her retirement status before
5accepting contractual employment. A person who fails to submit
6such notification shall be guilty of a Class A misdemeanor and
7required to pay a fine of $1,000. Upon termination of that
8contractual employment, the person's retirement annuity or
9retirement pension payments shall resume and, if appropriate,
10be recalculated under the applicable provisions of this Code.
11    (i) (Blank).
12    (j) In the case of a conflict between the provisions of
13this Section and any other provision of this Code, the
14provisions of this Section shall control.
15(Source: P.A. 101-610, eff. 1-1-20; 102-16, eff. 6-17-21;
16102-210, eff. 1-1-22; 102-263, eff. 8-6-21; 102-813, eff.
175-13-22.)
 
18    (Text of Section from P.A. 102-956)
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
23fund established under this Code, other than a retirement
24system or pension fund established under Article 2, 3, 4, 5, 6,
257, 15, or 18 of this Code, notwithstanding any other provision

 

 

HB3266- 28 -LRB103 28897 RPS 55283 b

1of this Code to the contrary, but do not apply to any
2self-managed plan established under this Code or to any
3participant of the retirement plan established under Section
422-101; except that this Section applies to a person who
5elected to establish alternative credits by electing in
6writing after January 1, 2011, but before August 8, 2011,
7under Section 7-145.1 of this Code. Notwithstanding anything
8to the contrary in this Section, for purposes of this Section,
9a person who is a Tier 1 regular employee as defined in Section
107-109.4 of this Code or who participated in a retirement
11system under Article 15 prior to January 1, 2011 shall be
12deemed a person who first became a member or participant prior
13to January 1, 2011 under any retirement system or pension fund
14subject to this Section. The changes made to this Section by
15Public Act 98-596 are a clarification of existing law and are
16intended to be retroactive to January 1, 2011 (the effective
17date of Public Act 96-889), notwithstanding the provisions of
18Section 1-103.1 of this Code.
19    This Section does not apply to a person who first becomes a
20noncovered employee under Article 14 on or after the
21implementation date of the plan created under Section 1-161
22for that Article, unless that person elects under subsection
23(b) of Section 1-161 to instead receive the benefits provided
24under this Section and the applicable provisions of that
25Article.
26    This Section does not apply to a person who first becomes a

 

 

HB3266- 29 -LRB103 28897 RPS 55283 b

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

 

 

HB3266- 30 -LRB103 28897 RPS 55283 b

1retirement system or pension fund to which this Section
2applies on or after January 1, 2011, in this Code, "final
3average salary" shall be substituted for the following:
4        (1) (Blank).
5        (2) In Articles 8, 9, 10, 11, and 12, "highest average
6    annual salary for any 4 consecutive years within the last
7    10 years of service immediately preceding the date of
8    withdrawal".
9        (3) In Article 13, "average final salary".
10        (4) In Article 14, "final average compensation".
11        (5) In Article 17, "average salary".
12        (6) In Section 22-207, "wages or salary received by
13    him at the date of retirement or discharge".
14    A member of the Teachers' Retirement System of the State
15of Illinois who retires on or after June 1, 2021 and for whom
16the 2020-2021 school year is used in the calculation of the
17member's final average salary shall use the higher of the
18following for the purpose of determining the member's final
19average salary:
20        (A) the amount otherwise calculated under the first
21    paragraph of this subsection; or
22        (B) an amount calculated by the Teachers' Retirement
23    System of the State of Illinois using the average of the
24    monthly (or annual) salary obtained by dividing the total
25    salary or earnings calculated under Article 16 applicable
26    to the member or participant during the 96 months (or 8

 

 

HB3266- 31 -LRB103 28897 RPS 55283 b

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

 

 

HB3266- 32 -LRB103 28897 RPS 55283 b

1    (b-10) Beginning on the effective date of this amendatory
2Act of the 103rd General Assembly, for a State policeman to
3whom this Section applies and for all purposes under this Code
4(including, without limitation, the calculation of benefits
5and employee contributions), the annual earnings, salary, or
6wages (based on the plan year) of a State policeman shall not
7exceed the amount determined by the Social Security
8Administration to be the Old-Age, Survivors and Disability
9Insurance Contribution and Benefit Base.
10    (c) A member or participant is entitled to a retirement
11annuity upon written application if he or she has attained age
1267 (age 65, with respect to service under Article 12 that is
13subject to this Section, for a member or participant under
14Article 12 who first becomes a member or participant under
15Article 12 on or after January 1, 2022 or who makes the
16election under item (i) of subsection (d-15) of this Section)
17and has at least 10 years of service credit and is otherwise
18eligible under the requirements of the applicable Article.
19    A member or participant who has attained age 62 (age 60,
20with respect to service under Article 12 that is subject to
21this Section, for a member or participant under Article 12 who
22first becomes a member or participant under Article 12 on or
23after January 1, 2022 or who makes the election under item (i)
24of subsection (d-15) of this Section) and has at least 10 years
25of service credit and is otherwise eligible under the
26requirements of the applicable Article may elect to receive

 

 

HB3266- 33 -LRB103 28897 RPS 55283 b

1the lower retirement annuity provided in subsection (d) of
2this Section.
3    (c-5) A person who first becomes a member or a participant
4subject to this Section on or after July 6, 2017 (the effective
5date of Public Act 100-23), notwithstanding any other
6provision of this Code to the contrary, is entitled to a
7retirement annuity under Article 8 or Article 11 upon written
8application if he or she has attained age 65 and has at least
910 years of service credit and is otherwise eligible under the
10requirements of Article 8 or Article 11 of this Code,
11whichever is applicable.
12    (d) The retirement annuity of a member or participant who
13is retiring after attaining age 62 (age 60, 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) with at least 10 years of service
19credit shall be reduced by one-half of 1% for each full month
20that the member's age is under age 67 (age 65, with respect to
21service under Article 12 that is subject to this Section, for a
22member or participant under Article 12 who first becomes a
23member or participant under Article 12 on or after January 1,
242022 or who makes the election under item (i) of subsection
25(d-15) of this Section).
26    (d-5) The retirement annuity payable under Article 8 or

 

 

HB3266- 34 -LRB103 28897 RPS 55283 b

1Article 11 to an eligible person subject to subsection (c-5)
2of this Section who is retiring at age 60 with at least 10
3years of service credit shall be reduced by one-half of 1% for
4each full month that the member's age is under age 65.
5    (d-10) Each person who first became a member or
6participant under Article 8 or Article 11 of this Code on or
7after January 1, 2011 and prior to July 6, 2017 (the effective
8date of Public Act 100-23) shall make an irrevocable election
9either:
10        (i) to be eligible for the reduced retirement age
11    provided in subsections (c-5) and (d-5) of this Section,
12    the eligibility for which is conditioned upon the member
13    or participant agreeing to the increases in employee
14    contributions for age and service annuities provided in
15    subsection (a-5) of Section 8-174 of this Code (for
16    service under Article 8) or subsection (a-5) of Section
17    11-170 of this Code (for service under Article 11); or
18        (ii) to not agree to item (i) of this subsection
19    (d-10), in which case the member or participant shall
20    continue to be subject to the retirement age provisions in
21    subsections (c) and (d) of this Section and the employee
22    contributions for age and service annuity as provided in
23    subsection (a) of Section 8-174 of this Code (for service
24    under Article 8) or subsection (a) of Section 11-170 of
25    this Code (for service under Article 11).
26    The election provided for in this subsection shall be made

 

 

HB3266- 35 -LRB103 28897 RPS 55283 b

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

 

 

HB3266- 36 -LRB103 28897 RPS 55283 b

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

 

 

HB3266- 37 -LRB103 28897 RPS 55283 b

1    For the purposes of Section 1-103.1 of this Code, the
2changes made to this Section by Public Act 102-263 are
3applicable without regard to whether the employee was in
4active service on or after August 6, 2021 (the effective date
5of Public Act 102-263).
6    For the purposes of Section 1-103.1 of this Code, the
7changes made to this Section by Public Act 100-23 are
8applicable without regard to whether the employee was in
9active service on or after July 6, 2017 (the effective date of
10Public Act 100-23).
11    (f) The initial survivor's or widow's annuity of an
12otherwise eligible survivor or widow of a retired member or
13participant who first became a member or participant on or
14after January 1, 2011 shall be in the amount of 66 2/3% of the
15retired member's or participant's retirement annuity at the
16date of death. In the case of the death of a member or
17participant who has not retired and who first became a member
18or participant on or after January 1, 2011, eligibility for a
19survivor's or widow's annuity shall be determined by the
20applicable Article of this Code. The initial benefit shall be
2166 2/3% of the earned annuity without a reduction due to age. A
22child's annuity of an otherwise eligible child shall be in the
23amount prescribed under each Article if applicable. Any
24survivor's or widow's annuity shall be increased (1) on each
25January 1 occurring on or after the commencement of the
26annuity if the deceased member died while receiving a

 

 

HB3266- 38 -LRB103 28897 RPS 55283 b

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

 

 

HB3266- 39 -LRB103 28897 RPS 55283 b

1has withdrawn from service with not less than 20 years of
2eligible creditable service and has attained age 60,
3regardless of whether the attainment of age 60 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

 

 

HB3266- 40 -LRB103 28897 RPS 55283 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) In the case of a conflict between the provisions of
14this Section and any other provision of this Code, the
15provisions of this Section shall control.
16(Source: P.A. 101-610, eff. 1-1-20; 102-16, eff. 6-17-21;
17102-210, eff. 1-1-22; 102-263, eff. 8-6-21; 102-956, eff.
185-27-22.)
 
19    (40 ILCS 5/14-152.1)
20    Sec. 14-152.1. Application and expiration of new benefit
21increases.
22    (a) As used in this Section, "new benefit increase" means
23an increase in the amount of any benefit provided under this
24Article, or an expansion of the conditions of eligibility for
25any benefit under this Article, that results from an amendment

 

 

HB3266- 41 -LRB103 28897 RPS 55283 b

1to this Code that takes effect after June 1, 2005 (the
2effective date of Public Act 94-4). "New benefit increase",
3however, does not include any benefit increase resulting from
4the changes made to Article 1 or this Article by Public Act
596-37, Public Act 100-23, Public Act 100-587, Public Act
6100-611, Public Act 101-10, Public Act 101-610, Public Act
7102-210, Public Act 102-856, Public Act 102-956, or this
8amendatory Act of the 103rd General Assembly this amendatory
9Act of the 102nd General Assembly.
10    (b) Notwithstanding any other provision of this Code or
11any subsequent amendment to this Code, every new benefit
12increase is subject to this Section and shall be deemed to be
13granted only in conformance with and contingent upon
14compliance with the provisions of this Section.
15    (c) The Public Act enacting a new benefit increase must
16identify and provide for payment to the System of additional
17funding at least sufficient to fund the resulting annual
18increase in cost to the System as it accrues.
19    Every new benefit increase is contingent upon the General
20Assembly providing the additional funding required under this
21subsection. The Commission on Government Forecasting and
22Accountability shall analyze whether adequate additional
23funding has been provided for the new benefit increase and
24shall report its analysis to the Public Pension Division of
25the Department of Insurance. A new benefit increase created by
26a Public Act that does not include the additional funding

 

 

HB3266- 42 -LRB103 28897 RPS 55283 b

1required under this subsection is null and void. If the Public
2Pension Division determines that the additional funding
3provided for a new benefit increase under this subsection is
4or has become inadequate, it may so certify to the Governor and
5the State Comptroller and, in the absence of corrective action
6by the General Assembly, the new benefit increase shall expire
7at the end of the fiscal year in which the certification is
8made.
9    (d) Every new benefit increase shall expire 5 years after
10its effective date or on such earlier date as may be specified
11in the language enacting the new benefit increase or provided
12under subsection (c). This does not prevent the General
13Assembly from extending or re-creating a new benefit increase
14by law.
15    (e) Except as otherwise provided in the language creating
16the new benefit increase, a new benefit increase that expires
17under this Section continues to apply to persons who applied
18and qualified for the affected benefit while the new benefit
19increase was in effect and to the affected beneficiaries and
20alternate payees of such persons, but does not apply to any
21other person, including, without limitation, a person who
22continues in service after the expiration date and did not
23apply and qualify for the affected benefit while the new
24benefit increase was in effect.
25(Source: P.A. 101-10, eff. 6-5-19; 101-81, eff. 7-12-19;
26101-610, eff. 1-1-20; 102-210, eff. 7-30-21; 102-856, eff.

 

 

HB3266- 43 -LRB103 28897 RPS 55283 b

11-1-23; 102-956, eff. 5-27-22.)
 
2    Section 99. Effective date. This Act takes effect upon
3becoming law.