103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB3520

 

Introduced 2/17/2023, by Rep. Stephanie A. Kifowit

 

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under the alternative retirement formula, in lieu of the regular or minimum retirement annuity, only if the person has withdrawn from service with not less than 20 years of eligible creditable service and has attained age 55 (instead of age 60).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; rescinds an election for certain benefits for persons under the Chicago Municipal Article; provides that any retirement annuity or supplemental annuity shall be subject to annual increases on January 1 in the manner and with the same eligibility requirements provided for members or participants under the applicable Article who first became members or participants in that Article before January 1, 2011; 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. Authorizes SLEP status under IMRF for a person who is a county correctional officer or probation officer. Amends the State Mandates Act to require implementation without reimbursement.


LRB103 30449 RPS 56881 b

STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT
MAY APPLY

 

 

A BILL FOR

 

HB3520LRB103 30449 RPS 56881 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, 7-109.3, 7-226, 8-251.5, 9-242,
714-157, and 15-203 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

 

 

HB3520- 2 -LRB103 30449 RPS 56881 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

 

 

HB3520- 3 -LRB103 30449 RPS 56881 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    (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

 

 

HB3520- 7 -LRB103 30449 RPS 56881 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

 

 

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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,

 

 

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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

 

 

HB3520- 10 -LRB103 30449 RPS 56881 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

 

 

HB3520- 11 -LRB103 30449 RPS 56881 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

 

 

HB3520- 12 -LRB103 30449 RPS 56881 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 if the person is a
11fire fighter in the fire protection service of a department, a
12security employee of the Department of Corrections or the
13Department of Juvenile Justice, or a security employee of the
14Department of Innovation and Technology, as those terms are
15defined in subsection (b) and subsection (c) of Section
1614-110. A person who meets the requirements of this Section is
17entitled to an annuity calculated under the provisions of
18Section 14-110, in lieu of the regular or minimum retirement
19annuity, only if the person has withdrawn from service with
20not less than 20 years of eligible creditable service and has
21attained age 60, regardless of whether the attainment of age
2260 occurs while the person is still in service.
23    (g-1) The benefits in Section 14-110 apply if the person
24is a security employee of the Department of Corrections or the
25Department of Juvenile Justice, as those terms are defined in
26subsection (b) and subsection (c) of Section 14-110. A person

 

 

HB3520- 13 -LRB103 30449 RPS 56881 b

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

 

 

HB3520- 14 -LRB103 30449 RPS 56881 b

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

 

 

HB3520- 15 -LRB103 30449 RPS 56881 b

1retirement pension payments shall resume and, if appropriate,
2be recalculated under the applicable provisions of this Code.
3    (i) (Blank).
4    (j) Except for conflicts between this Section and Section
51-163, in In the case of a conflict between the provisions of
6this Section and any other provision of this Code, the
7provisions of this Section shall control.
8(Source: P.A. 101-610, eff. 1-1-20; 102-16, eff. 6-17-21;
9102-210, eff. 1-1-22; 102-263, eff. 8-6-21; 102-719, eff.
105-6-22.)
 
11    (Text of Section from P.A. 102-813)
12    Sec. 1-160. Provisions applicable to new hires.
13    (a) The provisions of this Section apply to a person who,
14on or after January 1, 2011, first becomes a member or a
15participant under any reciprocal retirement system or pension
16fund established under this Code, other than a retirement
17system or pension fund established under Article 2, 3, 4, 5, 6,
187, 15, or 18 of this Code, notwithstanding any other provision
19of this Code to the contrary, but do not apply to any
20self-managed plan established under this Code or to any
21participant of the retirement plan established under Section
2222-101; except that this Section applies to a person who
23elected to establish alternative credits by electing in
24writing after January 1, 2011, but before August 8, 2011,
25under Section 7-145.1 of this Code. Notwithstanding anything

 

 

HB3520- 16 -LRB103 30449 RPS 56881 b

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

 

 

HB3520- 17 -LRB103 30449 RPS 56881 b

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

 

 

HB3520- 18 -LRB103 30449 RPS 56881 b

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

 

 

HB3520- 19 -LRB103 30449 RPS 56881 b

1salary, or wages (based on the plan year) of a member or
2participant to whom this Section applies shall not exceed
3$106,800; however, that amount shall annually thereafter be
4increased by the lesser of (i) 3% of that amount, including all
5previous adjustments, or (ii) one-half the annual unadjusted
6percentage increase (but not less than zero) in the consumer
7price index-u for the 12 months ending with the September
8preceding each November 1, including all previous adjustments.
9    For the purposes of this Section, "consumer price index-u"
10means the index published by the Bureau of Labor Statistics of
11the United States Department of Labor that measures the
12average change in prices of goods and services purchased by
13all urban consumers, United States city average, all items,
141982-84 = 100. The new amount resulting from each annual
15adjustment shall be determined by the Public Pension Division
16of the Department of Insurance and made available to the
17boards of the retirement systems and pension funds by November
181 of each year.
19    (c) A member or participant is entitled to a retirement
20annuity upon written application if he or she has attained age
2167 (age 65, with respect to service under Article 12 that is
22subject to this Section, for a member or participant under
23Article 12 who first becomes a member or participant under
24Article 12 on or after January 1, 2022 or who makes the
25election under item (i) of subsection (d-15) of this Section)
26and has at least 10 years of service credit and is otherwise

 

 

HB3520- 20 -LRB103 30449 RPS 56881 b

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

 

 

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

 

 

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1        (ii) to not agree to item (i) of this subsection
2    (d-10), in which case the member or participant shall
3    continue to be subject to the retirement age provisions in
4    subsections (c) and (d) of this Section and the employee
5    contributions for age and service annuity as provided in
6    subsection (a) of Section 8-174 of this Code (for service
7    under Article 8) or subsection (a) of Section 11-170 of
8    this Code (for service under Article 11).
9    The election provided for in this subsection shall be made
10between October 1, 2017 and November 15, 2017. A person
11subject to this subsection who makes the required election
12shall remain bound by that election, except that an election
13made under this subsection by a participant under Article 8 is
14rescinded by operation of law and such person is subject to the
15provisions otherwise applicable to a participant who first
16became a participant under Article 8 on or after January 1,
172011. A person subject to this subsection who fails for any
18reason to make the required election within the time specified
19in this subsection shall be deemed to have made the election
20under item (ii).
21    (d-15) Each person who first becomes a member or
22participant under Article 12 on or after January 1, 2011 and
23prior to January 1, 2022 shall make an irrevocable election
24either:
25        (i) to be eligible for the reduced retirement age
26    specified in subsections (c) and (d) of this Section, the

 

 

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

 

 

HB3520- 24 -LRB103 30449 RPS 56881 b

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

 

 

HB3520- 25 -LRB103 30449 RPS 56881 b

1participant who first became a member or participant on or
2after January 1, 2011 shall be in the amount of 66 2/3% of the
3retired member's or participant's retirement annuity at the
4date of death. In the case of the death of a member or
5participant who has not retired and who first became a member
6or participant on or after January 1, 2011, eligibility for a
7survivor's or widow's annuity shall be determined by the
8applicable Article of this Code. The initial benefit shall be
966 2/3% of the earned annuity without a reduction due to age. A
10child's annuity of an otherwise eligible child shall be in the
11amount prescribed under each Article if applicable. Any
12survivor's or widow's annuity shall be increased (1) on each
13January 1 occurring on or after the commencement of the
14annuity if the deceased member died while receiving a
15retirement annuity or (2) in other cases, on each January 1
16occurring after the first anniversary of the commencement of
17the annuity. Each annual increase shall be calculated at 3% or
18one-half the annual unadjusted percentage increase (but not
19less than zero) in the consumer price index-u for the 12 months
20ending with the September preceding each November 1, whichever
21is less, of the originally granted survivor's annuity. If the
22annual unadjusted percentage change in the consumer price
23index-u for the 12 months ending with the September preceding
24each November 1 is zero or there is a decrease, then the
25annuity shall not be increased.
26    (g) The benefits in Section 14-110 apply only if the

 

 

HB3520- 26 -LRB103 30449 RPS 56881 b

1person is a State policeman, a fire fighter in the fire
2protection service of a department, a conservation police
3officer, an investigator for the Secretary of State, an arson
4investigator, a Commerce Commission police officer,
5investigator for the Department of Revenue or the Illinois
6Gaming Board, a security employee of the Department of
7Corrections or the Department of Juvenile Justice, or a
8security employee of the Department of Innovation and
9Technology, as those terms are defined in subsection (b) and
10subsection (c) of Section 14-110. A person who meets the
11requirements of this Section is entitled to an annuity
12calculated under the provisions of Section 14-110, in lieu of
13the regular or minimum retirement annuity, only if the person
14has withdrawn from service with not less than 20 years of
15eligible creditable service and has attained age 60,
16regardless of whether the attainment of age 60 occurs while
17the person is still in service.
18    (g-1) The benefits in Section 14-110 apply if the person
19is a security employee of the Department of Corrections or the
20Department of Juvenile Justice, as those terms are defined in
21subsection (b) and subsection (c) of Section 14-110. A person
22who meets the requirements of this Section is entitled to an
23annuity calculated under the provisions of Section 14-110, in
24lieu of the regular or minimum retirement annuity, only if the
25person has withdrawn from service with not less than 20 years
26of eligible creditable service and has attained age 55,

 

 

HB3520- 27 -LRB103 30449 RPS 56881 b

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

 

 

HB3520- 28 -LRB103 30449 RPS 56881 b

1fund or retirement system from which he or she is receiving an
2annuity or retirement pension, as well as his or her
3contractual employer, of his or her retirement status before
4accepting contractual employment. A person who fails to submit
5such notification shall be guilty of a Class A misdemeanor and
6required to pay a fine of $1,000. Upon termination of that
7contractual employment, the person's retirement annuity or
8retirement pension payments shall resume and, if appropriate,
9be recalculated under the applicable provisions of this Code.
10    (i) (Blank).
11    (j) Except for conflicts between this Section and Section
121-163, in 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

 

 

HB3520- 29 -LRB103 30449 RPS 56881 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

 

 

HB3520- 30 -LRB103 30449 RPS 56881 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

 

 

HB3520- 31 -LRB103 30449 RPS 56881 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

 

 

HB3520- 32 -LRB103 30449 RPS 56881 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) Beginning on January 1, 2011, for all purposes under
6this Code (including without limitation the calculation of
7benefits and employee contributions), the annual earnings,
8salary, or wages (based on the plan year) of a member or
9participant to whom this Section applies shall not exceed
10$106,800; however, that amount shall annually thereafter be
11increased by the lesser of (i) 3% of that amount, including all
12previous adjustments, or (ii) one-half the annual unadjusted
13percentage increase (but not less than zero) in the consumer
14price index-u for the 12 months ending with the September
15preceding each November 1, including all previous adjustments.
16    For the purposes of this Section, "consumer price index-u"
17means the index published by the Bureau of Labor Statistics of
18the United States Department of Labor that measures the
19average change in prices of goods and services purchased by
20all urban consumers, United States city average, all items,
211982-84 = 100. The new amount resulting from each annual
22adjustment shall be determined by the Public Pension Division
23of the Department of Insurance and made available to the
24boards of the retirement systems and pension funds by November
251 of each year.
26    (c) A member or participant is entitled to a retirement

 

 

HB3520- 33 -LRB103 30449 RPS 56881 b

1annuity upon written application if he or she has attained age
267 (age 65, with respect to service under Article 12 that is
3subject to this Section, for a member or participant under
4Article 12 who first becomes a member or participant under
5Article 12 on or after January 1, 2022 or who makes the
6election under item (i) of subsection (d-15) of this Section)
7and has at least 10 years of service credit and is otherwise
8eligible under the requirements of the applicable Article.
9    A member or participant who has attained age 62 (age 60,
10with respect to service under Article 12 that is subject to
11this Section, for a member or participant under Article 12 who
12first becomes a member or participant under Article 12 on or
13after January 1, 2022 or who makes the election under item (i)
14of subsection (d-15) of this Section) and has at least 10 years
15of service credit and is otherwise eligible under the
16requirements of the applicable Article may elect to receive
17the lower retirement annuity provided in subsection (d) of
18this Section.
19    (c-5) A person who first becomes a member or a participant
20subject to this Section on or after July 6, 2017 (the effective
21date of Public Act 100-23), notwithstanding any other
22provision of this Code to the contrary, is entitled to a
23retirement annuity under Article 8 or Article 11 upon written
24application if he or she has attained age 65 and has at least
2510 years of service credit and is otherwise eligible under the
26requirements of Article 8 or Article 11 of this Code,

 

 

HB3520- 34 -LRB103 30449 RPS 56881 b

1whichever is applicable.
2    (d) The retirement annuity of a member or participant who
3is retiring after attaining age 62 (age 60, with respect to
4service under Article 12 that is subject to this Section, for a
5member or participant under Article 12 who first becomes a
6member or participant under Article 12 on or after January 1,
72022 or who makes the election under item (i) of subsection
8(d-15) of this Section) with at least 10 years of service
9credit shall be reduced by one-half of 1% for each full month
10that the member's age is under age 67 (age 65, with respect to
11service under Article 12 that is subject to this Section, for a
12member or participant under Article 12 who first becomes a
13member or participant under Article 12 on or after January 1,
142022 or who makes the election under item (i) of subsection
15(d-15) of this Section).
16    (d-5) The retirement annuity payable under Article 8 or
17Article 11 to an eligible person subject to subsection (c-5)
18of this Section who is retiring at age 60 with at least 10
19years of service credit shall be reduced by one-half of 1% for
20each full month that the member's age is under age 65.
21    (d-10) Each person who first became a member or
22participant under Article 8 or Article 11 of this Code on or
23after January 1, 2011 and prior to July 6, 2017 (the effective
24date of Public Act 100-23) shall make an irrevocable election
25either:
26        (i) to be eligible for the reduced retirement age

 

 

HB3520- 35 -LRB103 30449 RPS 56881 b

1    provided in subsections (c-5) and (d-5) of this Section,
2    the eligibility for which is conditioned upon the member
3    or participant agreeing to the increases in employee
4    contributions for age and service annuities provided in
5    subsection (a-5) of Section 8-174 of this Code (for
6    service under Article 8) or subsection (a-5) of Section
7    11-170 of this Code (for service under Article 11); or
8        (ii) to not agree to item (i) of this subsection
9    (d-10), in which case the member or participant shall
10    continue to be subject to the retirement age provisions in
11    subsections (c) and (d) of this Section and the employee
12    contributions for age and service annuity as provided in
13    subsection (a) of Section 8-174 of this Code (for service
14    under Article 8) or subsection (a) of Section 11-170 of
15    this Code (for service under Article 11).
16    The election provided for in this subsection shall be made
17between October 1, 2017 and November 15, 2017. A person
18subject to this subsection who makes the required election
19shall remain bound by that election, except that an election
20made under this subsection by a participant under Article 8 is
21rescinded by operation of law and such person is subject to the
22provisions otherwise applicable to a participant who first
23became a participant under Article 8 on or after January 1,
242011. A person subject to this subsection who fails for any
25reason to make the required election within the time specified
26in this subsection shall be deemed to have made the election

 

 

HB3520- 36 -LRB103 30449 RPS 56881 b

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

 

 

HB3520- 37 -LRB103 30449 RPS 56881 b

1be subject to annual increases on the January 1 occurring
2either on or after the attainment of age 67 (age 65, with
3respect to service under Article 12 that is subject to this
4Section, for a member or participant under Article 12 who
5first becomes a member or participant under Article 12 on or
6after January 1, 2022 or who makes the election under item (i)
7of subsection (d-15); and beginning on July 6, 2017 (the
8effective date of Public Act 100-23), age 65 with respect to
9service under Article 8 or Article 11 for eligible persons
10who: (i) are subject to subsection (c-5) of this Section; or
11(ii) made the election under item (i) of subsection (d-10) of
12this Section) or the first anniversary of the annuity start
13date, whichever is later. Each annual increase shall be
14calculated at 3% or one-half the annual unadjusted percentage
15increase (but not less than zero) in the consumer price
16index-u for the 12 months ending with the September preceding
17each November 1, whichever is less, of the originally granted
18retirement annuity. If the annual unadjusted percentage change
19in the consumer price index-u for the 12 months ending with the
20September preceding each November 1 is zero or there is a
21decrease, then the annuity shall not be increased.
22    For the purposes of Section 1-103.1 of this Code, the
23changes made to this Section by Public Act 102-263 are
24applicable without regard to whether the employee was in
25active service on or after August 6, 2021 (the effective date
26of Public Act 102-263).

 

 

HB3520- 38 -LRB103 30449 RPS 56881 b

1    For the purposes of Section 1-103.1 of this Code, the
2changes made to this Section by Public Act 100-23 are
3applicable without regard to whether the employee was in
4active service on or after July 6, 2017 (the effective date of
5Public Act 100-23).
6    (f) The initial survivor's or widow's annuity of an
7otherwise eligible survivor or widow of a retired member or
8participant who first became a member or participant on or
9after January 1, 2011 shall be in the amount of 66 2/3% of the
10retired member's or participant's retirement annuity at the
11date of death. In the case of the death of a member or
12participant who has not retired and who first became a member
13or participant on or after January 1, 2011, eligibility for a
14survivor's or widow's annuity shall be determined by the
15applicable Article of this Code. The initial benefit shall be
1666 2/3% of the earned annuity without a reduction due to age. A
17child's annuity of an otherwise eligible child shall be in the
18amount prescribed under each Article if applicable. Any
19survivor's or widow's annuity shall be increased (1) on each
20January 1 occurring on or after the commencement of the
21annuity if the deceased member died while receiving a
22retirement annuity or (2) in other cases, on each January 1
23occurring after the first anniversary of the commencement of
24the annuity. Each annual increase shall be calculated at 3% or
25one-half the annual unadjusted percentage increase (but not
26less than zero) in the consumer price index-u for the 12 months

 

 

HB3520- 39 -LRB103 30449 RPS 56881 b

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

 

 

HB3520- 40 -LRB103 30449 RPS 56881 b

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

 

 

HB3520- 41 -LRB103 30449 RPS 56881 b

1January 1, 2012 and is receiving a retirement annuity or
2retirement pension under that system or fund and accepts on a
3contractual basis a position to provide services to a
4governmental entity from which he or she has retired, then
5that person's annuity or retirement pension earned as an
6active employee of the employer shall be suspended during that
7contractual service. A person receiving an annuity or
8retirement pension under this Code shall notify the pension
9fund or retirement system from which he or she is receiving an
10annuity or retirement pension, as well as his or her
11contractual employer, of his or her retirement status before
12accepting contractual employment. A person who fails to submit
13such notification shall be guilty of a Class A misdemeanor and
14required to pay a fine of $1,000. Upon termination of that
15contractual employment, the person's retirement annuity or
16retirement pension payments shall resume and, if appropriate,
17be recalculated under the applicable provisions of this Code.
18    (i) (Blank).
19    (j) Except for conflicts between this Section and Section
201-163, in In the case of a conflict between the provisions of
21this Section and any other provision of this Code, the
22provisions of this Section shall control.
23(Source: P.A. 101-610, eff. 1-1-20; 102-16, eff. 6-17-21;
24102-210, eff. 1-1-22; 102-263, eff. 8-6-21; 102-956, eff.
255-27-22.)
 

 

 

HB3520- 42 -LRB103 30449 RPS 56881 b

1    (40 ILCS 5/1-163 new)
2    Sec. 1-163. Benefits for certain Tier 2 members.
3    (a) Notwithstanding any provision of law to the contrary,
4including Section 1-160, this Section applies to a person who
5first becomes a member or participant of a pension fund or
6retirement system established under Article 7, 8, 9, 14, or 15
7on or after January 1, 2011. To the extent that any provision
8of this Section conflicts with a provision under those
9Articles or Section 1-160, this Section controls.
10    (b) A member or participant is entitled to a retirement
11annuity upon written application if he or she has attained age
1260, has at least 20 years of service credit, and is otherwise
13eligible under the requirements of the applicable Article.
14    A member or participant is entitled to a retirement
15annuity upon written application if he or she has attained age
1667, has at least 10 years of service credit, and is otherwise
17eligible under the requirements of the applicable Article.
18    If the Article under which a member or participant
19participates provides for a retirement age of under 60 with a
20reduction in the amount of the annuity for persons who first
21became members before January 1, 2011, then that provision
22shall apply to the member or participant with the same age,
23service, and other eligibility requirements and in the same
24amount, including any reduction due to age, as provided in the
25applicable Article.
26    (c) Any retirement annuity or supplemental annuity shall

 

 

HB3520- 43 -LRB103 30449 RPS 56881 b

1be subject to annual increases on January 1 in the manner and
2with the same eligibility requirements provided for members or
3participants under the applicable Article who first became
4members or participants in that Article before January 1,
52011, except that each annual increase shall be calculated at
63% or one-half the annual unadjusted percentage increase (but
7not less than zero) in the consumer price index-u for the 12
8months ending with the September preceding each November 1,
9whichever is less, of the originally granted retirement
10annuity. If the annual unadjusted percentage change in the
11consumer price index-u for the 12 months ending with the
12September preceding each November 1 is zero or there is a
13decrease, then the annuity shall not be increased.
14    For the purposes of this Section, "consumer price index-u"
15means the index published by the Bureau of Labor Statistics of
16the United States Department of Labor that measures the
17average change in prices of goods and services purchased by
18all urban consumers, United States city average, all items,
191982-84 = 100. The new amount resulting from each annual
20adjustment shall be determined by the Public Pension Division
21of the Department of Insurance and made available to the
22boards of the retirement systems and pension funds by November
231 of each year.
 
24    (40 ILCS 5/7-109.3)  (from Ch. 108 1/2, par. 7-109.3)
25    Sec. 7-109.3. "Sheriff's Law Enforcement Employees".

 

 

HB3520- 44 -LRB103 30449 RPS 56881 b

1    (a) "Sheriff's law enforcement employee" or "SLEP" means:
2        (1) A county sheriff and all deputies, other than
3    special deputies, employed on a full time basis in the
4    office of the sheriff.
5        (2) A person who has elected to participate in this
6    Fund under Section 3-109.1 of this Code, and who is
7    employed by a participating municipality to perform police
8    duties.
9        (3) A law enforcement officer employed on a full time
10    basis by a Forest Preserve District, provided that such
11    officer shall be deemed a "sheriff's law enforcement
12    employee" for the purposes of this Article, and service in
13    that capacity shall be deemed to be service as a sheriff's
14    law enforcement employee, only if the board of
15    commissioners of the District have so elected by adoption
16    of an affirmative resolution. Such election, once made,
17    may not be rescinded.
18        (4) A person not eligible to participate in a fund
19    established under Article 3 of this Code who is employed
20    on a full-time basis by a participating municipality or
21    participating instrumentality to perform police duties at
22    an airport, but only if the governing authority of the
23    employer has approved sheriff's law enforcement employee
24    status for its airport police employees by adoption of an
25    affirmative resolution. Such approval, once given, may not
26    be rescinded.

 

 

HB3520- 45 -LRB103 30449 RPS 56881 b

1        (5) A person first hired on or after January 1, 2011
2    who (i) is employed by a participating municipality that
3    has both 30 or more full-time police officers and 50 or
4    more full-time firefighters and has not established a fund
5    under Article 3 or Article 4 of this Code and (ii) is
6    employed on a full-time basis by that participating
7    municipality to perform police duties or firefighting and
8    EMS duties; but only if the governing authority of that
9    municipality has approved sheriff's law enforcement
10    employee status for its police officer or firefighter
11    employees by adoption of an affirmative resolution. The
12    resolution must specify that SLEP status shall be
13    applicable to such employment occurring on or after the
14    adoption of the resolution. Such resolution shall be
15    irrevocable, but shall automatically terminate upon the
16    establishment of an Article 3 or 4 fund by the
17    municipality.
18        (6) A person who is a county correctional officer or
19    probation officer.
20    (b) An employee who is a sheriff's law enforcement
21employee and is granted military leave or authorized leave of
22absence shall receive service credit in that capacity.
23Sheriff's law enforcement employees shall not be entitled to
24out-of-State service credit under Section 7-139.
25(Source: P.A. 100-354, eff. 8-25-17; 100-1097, eff. 8-26-18.)
 

 

 

HB3520- 46 -LRB103 30449 RPS 56881 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
23the changes made to Article 1 or this Article by Public Act

 

 

HB3520- 47 -LRB103 30449 RPS 56881 b

196-37, Public Act 100-23, Public Act 100-587, Public Act
2100-611, Public Act 101-10, Public Act 101-610, Public Act
3102-210, Public Act 102-856, Public Act 102-956, or this
4amendatory Act of the 103rd General Assembly this amendatory
5Act of the 102nd General Assembly.
6    (b) Notwithstanding any other provision of this Code or
7any subsequent amendment to this Code, every new benefit
8increase is subject to this Section and shall be deemed to be
9granted only in conformance with and contingent upon
10compliance with the provisions of this Section.
11    (c) The Public Act enacting a new benefit increase must
12identify and provide for payment to the System of additional
13funding at least sufficient to fund the resulting annual
14increase in cost to the System as it accrues.
15    Every new benefit increase is contingent upon the General
16Assembly providing the additional funding required under this
17subsection. The Commission on Government Forecasting and
18Accountability shall analyze whether adequate additional
19funding has been provided for the new benefit increase and
20shall report its analysis to the Public Pension Division of
21the Department of Insurance. A new benefit increase created by
22a Public Act that does not include the additional funding
23required under this subsection is null and void. If the Public
24Pension Division determines that the additional funding
25provided for a new benefit increase under this subsection is
26or has become inadequate, it may so certify to the Governor and

 

 

HB3520- 48 -LRB103 30449 RPS 56881 b

1the State Comptroller and, in the absence of corrective action
2by the General Assembly, the new benefit increase shall expire
3at the end of the fiscal year in which the certification is
4made.
5    (d) Every new benefit increase shall expire 5 years after
6its effective date or on such earlier date as may be specified
7in the language enacting the new benefit increase or provided
8under subsection (c). This does not prevent the General
9Assembly from extending or re-creating a new benefit increase
10by law.
11    (e) Except as otherwise provided in the language creating
12the new benefit increase, a new benefit increase that expires
13under this Section continues to apply to persons who applied
14and qualified for the affected benefit while the new benefit
15increase was in effect and to the affected beneficiaries and
16alternate payees of such persons, but does not apply to any
17other person, including, without limitation, a person who
18continues in service after the expiration date and did not
19apply and qualify for the affected benefit while the new
20benefit increase was in effect.
21(Source: P.A. 101-10, eff. 6-5-19; 101-81, eff. 7-12-19;
22101-610, eff. 1-1-20; 102-210, eff. 7-30-21; 102-856, eff.
231-1-23; 102-956, eff. 5-27-22.)
 
24    (40 ILCS 5/14-157 new)
25    Sec. 14-157. Application of Section 1-163. To the extent

 

 

HB3520- 49 -LRB103 30449 RPS 56881 b

1that any provision of this Article conflicts with Section
21-163, Section 1-163 controls.
 
3    (40 ILCS 5/15-198)
4    Sec. 15-198. Application and expiration of new benefit
5increases.
6    (a) As used in this Section, "new benefit increase" means
7an increase in the amount of any benefit provided under this
8Article, or an expansion of the conditions of eligibility for
9any benefit under this Article, that results from an amendment
10to this Code that takes effect after June 1, 2005 (the
11effective date of Public Act 94-4). "New benefit increase",
12however, does not include any benefit increase resulting from
13the changes made to Article 1 or this Article by Public Act
14100-23, Public Act 100-587, Public Act 100-769, Public Act
15101-10, Public Act 101-610, Public Act 102-16, or this
16amendatory Act of the 103rd General Assembly this amendatory
17Act of the 102nd General Assembly.
18    (b) Notwithstanding any other provision of this Code or
19any subsequent amendment to this Code, every new benefit
20increase is subject to this Section and shall be deemed to be
21granted only in conformance with and contingent upon
22compliance with the provisions of this Section.
23    (c) The Public Act enacting a new benefit increase must
24identify and provide for payment to the System of additional
25funding at least sufficient to fund the resulting annual

 

 

HB3520- 50 -LRB103 30449 RPS 56881 b

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

 

 

HB3520- 51 -LRB103 30449 RPS 56881 b

1and qualified for the affected benefit while the new benefit
2increase was in effect and to the affected beneficiaries and
3alternate payees of such persons, but does not apply to any
4other person, including, without limitation, a person who
5continues in service after the expiration date and did not
6apply and qualify for the affected benefit while the new
7benefit increase was in effect.
8(Source: P.A. 101-10, eff. 6-5-19; 101-81, eff. 7-12-19;
9101-610, eff. 1-1-20; 102-16, eff. 6-17-21.)
 
10    (40 ILCS 5/15-203 new)
11    Sec. 15-203. Application of Section 1-163. To the extent
12that any provision of this Article conflicts with Section
131-163, Section 1-163 controls.
 
14    Section 90. The State Mandates Act is amended by adding
15Section 8.47 as follows:
 
16    (30 ILCS 805/8.47 new)
17    Sec. 8.47. Exempt mandate. Notwithstanding Sections 6 and
188 of this Act, no reimbursement by the State is required for
19the implementation of any mandate created by this amendatory
20Act of the 103rd General Assembly.

 

 

HB3520- 52 -LRB103 30449 RPS 56881 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 5/7-109.3from Ch. 108 1/2, par. 7-109.3
7    40 ILCS 5/7-226 new
8    40 ILCS 5/8-251.5 new
9    40 ILCS 5/9-242 new
10    40 ILCS 5/14-152.1
11    40 ILCS 5/14-157 new
12    40 ILCS 5/15-198
13    40 ILCS 5/15-203 new
14    30 ILCS 805/8.47 new