Full Text of SB2024 103rd General Assembly
SB2024 103RD GENERAL ASSEMBLY |
| | 103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024 SB2024 Introduced 2/9/2023, by Sen. Robert F. Martwick SYNOPSIS AS INTRODUCED: | | 40 ILCS 5/1-160 | | 40 ILCS 5/7-114 | from Ch. 108 1/2, par. 7-114 | 40 ILCS 5/7-116 | from Ch. 108 1/2, par. 7-116 | 40 ILCS 5/7-141 | from Ch. 108 1/2, par. 7-141 | 40 ILCS 5/7-142 | from Ch. 108 1/2, par. 7-142 | 40 ILCS 5/15-111 | from Ch. 108 1/2, par. 15-111 | 40 ILCS 5/15-112 | from Ch. 108 1/2, par. 15-112 | 40 ILCS 5/15-135 | from Ch. 108 1/2, par. 15-135 | 40 ILCS 5/15-136 | from Ch. 108 1/2, par. 15-136 | 40 ILCS 5/15-198 | | 40 ILCS 5/16-203 | | 30 ILCS 805/8.47 new | |
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Amends the General Provisions, Illinois Municipal Retirement Fund (IMRF), State Universities, and Downstate Teacher Articles of the Illinois Pension Code. With regard to Tier 2 members under the Downstate Teacher or State Universities Article and Tier 2 regular employees under the IMRF Article who are employees of an educational employer: makes changes to the age and service credit requirements for receiving an annuity; increases the amount of the automatic annual increases to retirement annuities; makes changes to the formula for calculating final average salary; and increases the limitation on the amount of salary that is used to calculate benefits. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.
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| | | STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY
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| | A BILL FOR |
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| | | SB2024 | | LRB103 27748 RPS 54126 b |
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| 1 | | AN ACT concerning public employee benefits.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 10. The Illinois Pension Code is amended by | 5 | | changing Sections 1-160, 7-114, 7-116, 7-141, 7-142, 15-111, | 6 | | 15-112, 15-135, 15-136, 15-198, and 16-203 as follows:
| 7 | | (40 ILCS 5/1-160)
| 8 | | (Text of Section from P.A. 102-719) | 9 | | Sec. 1-160. Provisions applicable to new hires. | 10 | | (a) The provisions of this Section apply to a person who, | 11 | | on or after January 1, 2011, first becomes a member or a | 12 | | participant under any reciprocal retirement system or pension | 13 | | fund established under this Code, other than a retirement | 14 | | system or pension fund established under Article 2, 3, 4, 5, 6, | 15 | | 7, 15, or 18 of this Code, notwithstanding any other provision | 16 | | of this Code to the contrary, but do not apply to any | 17 | | self-managed plan established under this Code or to any | 18 | | participant of the retirement plan established under Section | 19 | | 22-101; except that this Section applies to a person who | 20 | | elected to establish alternative credits by electing in | 21 | | writing after January 1, 2011, but before August 8, 2011, | 22 | | under Section 7-145.1 of this Code. Notwithstanding anything | 23 | | to the contrary in this Section, for purposes of this Section, |
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| 1 | | a person who is a Tier 1 regular employee as defined in Section | 2 | | 7-109.4 of this Code or who participated in a retirement | 3 | | system under Article 15 prior to January 1, 2011 shall be | 4 | | deemed a person who first became a member or participant prior | 5 | | to January 1, 2011 under any retirement system or pension fund | 6 | | subject to this Section. The changes made to this Section by | 7 | | Public Act 98-596 are a clarification of existing law and are | 8 | | intended to be retroactive to January 1, 2011 (the effective | 9 | | date of Public Act 96-889), notwithstanding the provisions of | 10 | | Section 1-103.1 of this Code. | 11 | | This Section does not apply to a person who first becomes a | 12 | | noncovered employee under Article 14 on or after the | 13 | | implementation date of the plan created under Section 1-161 | 14 | | for that Article, unless that person elects under subsection | 15 | | (b) of Section 1-161 to instead receive the benefits provided | 16 | | under this Section and the applicable provisions of that | 17 | | Article. | 18 | | This Section does not apply to a person who first becomes a | 19 | | member or participant under Article 16 on or after the | 20 | | implementation date of the plan created under Section 1-161 | 21 | | for that Article, unless that person elects under subsection | 22 | | (b) of Section 1-161 to instead receive the benefits provided | 23 | | under this Section and the applicable provisions of that | 24 | | Article. | 25 | | This Section does not apply to a person who elects under | 26 | | subsection (c-5) of Section 1-161 to receive the benefits |
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| 1 | | under Section 1-161. | 2 | | This Section does not apply to a person who first becomes a | 3 | | member or participant of an affected pension fund on or after 6 | 4 | | months after the resolution or ordinance date, as defined in | 5 | | Section 1-162, unless that person elects under subsection (c) | 6 | | of Section 1-162 to receive the benefits provided under this | 7 | | Section and the applicable provisions of the Article under | 8 | | which he or she is a member or participant. | 9 | | (b) "Final average salary" means, except as otherwise | 10 | | provided in this subsection, the average monthly (or annual) | 11 | | salary obtained by dividing the total salary or earnings | 12 | | calculated under the Article applicable to the member or | 13 | | participant during the 96 consecutive months (or 8 consecutive | 14 | | years) of service within the last 120 months (or 10 years) of | 15 | | service in which the total salary or earnings calculated under | 16 | | the applicable Article was the highest by the number of months | 17 | | (or years) of service in that period. For the purposes of a | 18 | | person who first becomes a member or participant of any | 19 | | retirement system or pension fund to which this Section | 20 | | applies on or after January 1, 2011, in this Code, "final | 21 | | average salary" shall be substituted for the following: | 22 | | (1) (Blank). | 23 | | (2) In Articles 8, 9, 10, 11, and 12, "highest average | 24 | | annual salary for any 4 consecutive years within the last | 25 | | 10 years of service immediately preceding the date of | 26 | | withdrawal". |
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| 1 | | (3) In Article 13, "average final salary". | 2 | | (4) In Article 14, "final average compensation". | 3 | | (5) In Article 17, "average salary". | 4 | | (6) In Section 22-207, "wages or salary received by | 5 | | him at the date of retirement or discharge". | 6 | | A member of the Teachers' Retirement System of the State | 7 | | of Illinois who retires on or after June 1, 2021 and for whom | 8 | | the 2020-2021 school year is used in the calculation of the | 9 | | member's final average salary shall use the higher of the | 10 | | following for the purpose of determining the member's final | 11 | | average salary: | 12 | | (A) the amount otherwise calculated under the next | 13 | | first paragraph of this subsection; or | 14 | | (B) an amount calculated by the Teachers' Retirement | 15 | | System of the State of Illinois using the average of the | 16 | | monthly (or annual) salary obtained by dividing the total | 17 | | salary or earnings calculated under Article 16 applicable | 18 | | to the member or participant during the 72 96 months (or 6 | 19 | | 8 years) of service within the last 120 months (or 10 | 20 | | years) of service in which the total salary or earnings | 21 | | calculated under the Article was the highest by the number | 22 | | of months (or years) of service in that period. | 23 | | For a member under Article 16, "final average salary"
| 24 | | means the greater of: (i) the amount otherwise calculated
| 25 | | under this subsection; or (ii) the average monthly (or annual)
| 26 | | salary obtained by dividing the total salary calculated under
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| 1 | | Article 16 during the 72 consecutive months (or 6 consecutive | 2 | | years) of service within the last 120 months (or 10 years) of
| 3 | | service in which the total salary calculated under the Article
| 4 | | was the highest by the number of months (or years) of service
| 5 | | in that period. | 6 | | (b-5) Beginning on January 1, 2011, for all purposes under | 7 | | this Code (including without limitation the calculation of | 8 | | benefits and employee contributions), the annual earnings, | 9 | | salary, or wages (based on the plan year) of a member or | 10 | | participant to whom this Section applies shall not exceed | 11 | | $106,800; however, that amount shall annually thereafter be | 12 | | increased by the lesser of (i) 3% of that amount, including all | 13 | | previous adjustments, or (ii) one-half the annual unadjusted | 14 | | percentage increase (but not less than zero) in the consumer | 15 | | price index-u
for the 12 months ending with the September | 16 | | preceding each November 1, including all previous adjustments ;
| 17 | | except that beginning in 2024 for purposes of Article 16 of
| 18 | | this Code (including, without limitation, the calculation of
| 19 | | benefits and employee contributions), that amount shall
| 20 | | annually be increased by the greater of: (i) 3%; or (ii) the
| 21 | | annual unadjusted percentage increase in the consumer price
| 22 | | index-u for the 12 months ending with the September preceding
| 23 | | each November 1, including all previous adjustments . | 24 | | For the purposes of this Section, "consumer price index-u" | 25 | | means
the index published by the Bureau of Labor Statistics of | 26 | | the United States
Department of Labor that measures the |
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| 1 | | average change in prices of goods and
services purchased by | 2 | | all urban consumers, United States city average, all
items, | 3 | | 1982-84 = 100. The new amount resulting from each annual | 4 | | adjustment
shall be determined by the Public Pension Division | 5 | | of the Department of Insurance and made available to the | 6 | | boards of the retirement systems and pension funds by November | 7 | | 1 of each year. | 8 | | (c) A member or participant is entitled to a retirement
| 9 | | annuity upon written application if he or she has attained age | 10 | | 67 (age 65, with respect to service under Article 12 that is | 11 | | subject to this Section, for a member or participant under | 12 | | Article 12 who first becomes a member or participant under | 13 | | Article 12 on or after January 1, 2022 or who makes the | 14 | | election under item (i) of subsection (d-15) of this Section) | 15 | | and has at least 10 years of service credit and is otherwise | 16 | | eligible under the requirements of the applicable Article. | 17 | | A member or participant who has attained age 62 (age 60, | 18 | | with respect to service under Article 12 that is subject to | 19 | | this Section, for a member or participant under Article 12 who | 20 | | first becomes a member or participant under Article 12 on or | 21 | | after January 1, 2022 or who makes the election under item (i) | 22 | | of subsection (d-15) of this Section) and has at least 10 years | 23 | | of service credit and is otherwise eligible under the | 24 | | requirements of the applicable Article may elect to receive | 25 | | the lower retirement annuity provided
in subsection (d) of | 26 | | this Section. |
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| 1 | | (c-5) A person who first becomes a member or a participant | 2 | | subject to this Section on or after July 6, 2017 (the effective | 3 | | date of Public Act 100-23), notwithstanding any other | 4 | | provision of this Code to the contrary, is entitled to a | 5 | | retirement annuity under Article 8 or Article 11 upon written | 6 | | application if he or she has attained age 65 and has at least | 7 | | 10 years of service credit and is otherwise eligible under the | 8 | | requirements of Article 8 or Article 11 of this Code, | 9 | | whichever is applicable. | 10 | | (c-10) Notwithstanding subsection (c), a member under
| 11 | | Article 16 is entitled to a retirement annuity if he or she has
| 12 | | attained age 60; has at least 35 years of service credit; and
| 13 | | is otherwise eligible under the requirements of Article 16. | 14 | | Notwithstanding subsection (c), a member under Article 16
| 15 | | is entitled to a retirement annuity upon written application
| 16 | | if he or she has attained age 62; has at least 10 years of
| 17 | | service credit; and is otherwise eligible under the
| 18 | | requirements of Article 16. | 19 | | (d) The retirement annuity of a member or participant who | 20 | | is retiring after attaining age 62 (age 60, with respect to | 21 | | service under Article 12 that is subject to this Section, for a | 22 | | member or participant under Article 12 who first becomes a | 23 | | member or participant under Article 12 on or after January 1, | 24 | | 2022 or who makes the election under item (i) of subsection | 25 | | (d-15) of this Section) with at least 10 years of service | 26 | | credit shall be reduced by one-half
of 1% for each full month |
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| 1 | | that the member's age is under age 67 (age 65, with respect to | 2 | | service under Article 12 that is subject to this Section, for a | 3 | | member or participant under Article 12 who first becomes a | 4 | | member or participant under Article 12 on or after January 1, | 5 | | 2022 or who makes the election under item (i) of subsection | 6 | | (d-15) of this Section). This subsection does not apply to a
| 7 | | person who meets the requirements under subsection (c-10). | 8 | | (d-5) The retirement annuity payable under Article 8 or | 9 | | Article 11 to an eligible person subject to subsection (c-5) | 10 | | of this Section who is retiring at age 60 with at least 10 | 11 | | years of service credit shall be reduced by one-half of 1% for | 12 | | each full month that the member's age is under age 65. | 13 | | (d-10) Each person who first became a member or | 14 | | participant under Article 8 or Article 11 of this Code on or | 15 | | after January 1, 2011 and prior to July 6, 2017 (the effective | 16 | | date of Public Act 100-23) shall make an irrevocable election | 17 | | either: | 18 | | (i) to be eligible for the reduced retirement age | 19 | | provided in subsections (c-5)
and (d-5) of this Section, | 20 | | the eligibility for which is conditioned upon the member | 21 | | or participant agreeing to the increases in employee | 22 | | contributions for age and service annuities provided in | 23 | | subsection (a-5) of Section 8-174 of this Code (for | 24 | | service under Article 8) or subsection (a-5) of Section | 25 | | 11-170 of this Code (for service under Article 11); or | 26 | | (ii) to not agree to item (i) of this subsection |
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| 1 | | (d-10), in which case the member or participant shall | 2 | | continue to be subject to the retirement age provisions in | 3 | | subsections (c) and (d) of this Section and the employee | 4 | | contributions for age and service annuity as provided in | 5 | | subsection (a) of Section 8-174 of this Code (for service | 6 | | under Article 8) or subsection (a) of Section 11-170 of | 7 | | this Code (for service under Article 11). | 8 | | The election provided for in this subsection shall be made | 9 | | between October 1, 2017 and November 15, 2017. A person | 10 | | subject to this subsection who makes the required election | 11 | | shall remain bound by that election. A person subject to this | 12 | | subsection who fails for any reason to make the required | 13 | | election within the time specified in this subsection shall be | 14 | | deemed to have made the election under item (ii). | 15 | | (d-15) Each person who first becomes a member or | 16 | | participant under Article 12 on or after January 1, 2011 and | 17 | | prior to January 1, 2022 shall make an irrevocable election | 18 | | either: | 19 | | (i) to be eligible for the reduced retirement age | 20 | | specified in subsections (c) and (d) of this Section, the | 21 | | eligibility for which is conditioned upon the member or | 22 | | participant agreeing to the increase in employee | 23 | | contributions for service annuities specified in | 24 | | subsection (b) of Section 12-150; or | 25 | | (ii) to not agree to item (i) of this subsection | 26 | | (d-15), in which case the member or participant shall not |
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| 1 | | be eligible for the reduced retirement age specified in | 2 | | subsections (c) and (d) of this Section and shall not be | 3 | | subject to the increase in employee contributions for | 4 | | service annuities specified in subsection (b) of Section | 5 | | 12-150. | 6 | | The election provided for in this subsection shall be made | 7 | | between January 1, 2022 and April 1, 2022. A person subject to | 8 | | this subsection who makes the required election shall remain | 9 | | bound by that election. A person subject to this subsection | 10 | | who fails for any reason to make the required election within | 11 | | the time specified in this subsection shall be deemed to have | 12 | | made the election under item (ii). | 13 | | (e) Any retirement annuity or supplemental annuity shall | 14 | | be subject to annual increases on the January 1 occurring | 15 | | either on or after the attainment of age 67 (age 65, with | 16 | | respect to service under Article 12 that is subject to this | 17 | | Section, for a member or participant under Article 12 who | 18 | | first becomes a member or participant under Article 12 on or | 19 | | after January 1, 2022 or who makes the election under item (i) | 20 | | of subsection (d-15); and beginning on July 6, 2017 (the | 21 | | effective date of Public Act 100-23), age 65 with respect to | 22 | | service under Article 8 or Article 11 for eligible persons | 23 | | who: (i) are subject to subsection (c-5) of this Section; or | 24 | | (ii) made the election under item (i) of subsection (d-10) of | 25 | | this Section) or the first anniversary of the annuity start | 26 | | date, whichever is later. Except for retirement annuities |
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| 1 | | under Article 16, each Each annual increase shall be | 2 | | calculated at 3% or one-half the annual unadjusted percentage | 3 | | increase (but not less than zero) in the consumer price | 4 | | index-u for the 12 months ending with the September preceding | 5 | | each November 1, whichever is less, of the originally granted | 6 | | retirement annuity. If the annual unadjusted percentage change | 7 | | in the consumer price index-u for the 12 months ending with the | 8 | | September preceding each November 1 is zero or there is a | 9 | | decrease, then the annuity shall not be increased. | 10 | | For retirement annuities under Article 16, each annual
| 11 | | increase shall be calculated at 3% or one-half the annual
| 12 | | unadjusted percentage increase in the consumer price index-u
| 13 | | for the 12 months ending with the September preceding each
| 14 | | November 1, whichever is greater, of the originally granted
| 15 | | retirement annuity. | 16 | | For the purposes of Section 1-103.1 of this Code, the
| 17 | | changes made to this Section by this amendatory Act of the
| 18 | | 103rd General Assembly are applicable without regard to
| 19 | | whether the employee was in active service on or after the
| 20 | | effective date of this amendatory Act of the 103rd General
| 21 | | Assembly. | 22 | | For the purposes of Section 1-103.1 of this Code, the | 23 | | changes made to this Section by Public Act 102-263 are | 24 | | applicable without regard to whether the employee was in | 25 | | active service on or after August 6, 2021 (the effective date | 26 | | of Public Act 102-263). |
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| 1 | | For the purposes of Section 1-103.1 of this Code, the | 2 | | changes made to this Section by Public Act 100-23 are | 3 | | applicable without regard to whether the employee was in | 4 | | active service on or after July 6, 2017 (the effective date of | 5 | | Public Act 100-23). | 6 | | (f) The initial survivor's or widow's annuity of an | 7 | | otherwise eligible survivor or widow of a retired member or | 8 | | participant who first became a member or participant on or | 9 | | after January 1, 2011 shall be in the amount of 66 2/3% of the | 10 | | retired member's or participant's retirement annuity at the | 11 | | date of death. In the case of the death of a member or | 12 | | participant who has not retired and who first became a member | 13 | | or participant on or after January 1, 2011, eligibility for a | 14 | | survivor's or widow's annuity shall be determined by the | 15 | | applicable Article of this Code. The initial benefit shall be | 16 | | 66 2/3% of the earned annuity without a reduction due to age. A | 17 | | child's annuity of an otherwise eligible child shall be in the | 18 | | amount prescribed under each Article if applicable. Any | 19 | | survivor's or widow's annuity shall be increased (1) on each | 20 | | January 1 occurring on or after the commencement of the | 21 | | annuity if
the deceased member died while receiving a | 22 | | retirement annuity or (2) in
other cases, on each January 1 | 23 | | occurring after the first anniversary
of the commencement of | 24 | | the annuity. Each annual increase shall be calculated at 3% or | 25 | | one-half the annual unadjusted percentage increase (but not | 26 | | less than zero) in the consumer price index-u for the 12 months |
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| 1 | | ending with the September preceding each November 1, whichever | 2 | | is less, of the originally granted survivor's annuity. If the | 3 | | annual unadjusted percentage change in the consumer price | 4 | | index-u for the 12 months ending with the September preceding | 5 | | each November 1 is zero or there is a decrease, then the | 6 | | annuity shall not be increased. | 7 | | (g) The benefits in Section 14-110 apply if the person is a | 8 | | fire fighter in the fire protection service of a department, a | 9 | | security employee of the Department of Corrections or the | 10 | | Department of Juvenile Justice, or a security employee of the | 11 | | Department of Innovation and Technology, as those terms are | 12 | | defined in subsection (b) and subsection (c) of Section | 13 | | 14-110. A person who meets the requirements of this Section is | 14 | | entitled to an annuity calculated under the provisions of | 15 | | Section 14-110, in lieu of the regular or minimum retirement | 16 | | annuity, only if the person has withdrawn from service with | 17 | | not less than 20
years of eligible creditable service and has | 18 | | attained age 60, regardless of whether
the attainment of age | 19 | | 60 occurs while the person is
still in service. | 20 | | (g-5) The benefits in Section 14-110 apply if the person | 21 | | is a State policeman, investigator for the Secretary of State, | 22 | | conservation police officer, investigator for the Department | 23 | | of Revenue or the
Illinois Gaming Board, investigator for the | 24 | | Office of the Attorney
General, Commerce Commission police | 25 | | officer, or arson investigator, as those terms are defined in | 26 | | subsection (b) and subsection (c) of Section 14-110. A person |
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| 1 | | who meets the requirements of this Section is entitled to an | 2 | | annuity calculated under the provisions of Section 14-110, in | 3 | | lieu of the regular or minimum retirement annuity, only if the | 4 | | person has withdrawn from service with not less than 20 years | 5 | | of eligible creditable service and has attained age 55, | 6 | | regardless of whether the attainment of age 55 occurs while | 7 | | the person is still in service. | 8 | | (h) If a person who first becomes a member or a participant | 9 | | of a retirement system or pension fund subject to this Section | 10 | | on or after January 1, 2011 is receiving a retirement annuity | 11 | | or retirement pension under that system or fund and becomes a | 12 | | member or participant under any other system or fund created | 13 | | by this Code and is employed on a full-time basis, except for | 14 | | those members or participants exempted from the provisions of | 15 | | this Section under subsection (a) of this Section, then the | 16 | | person's retirement annuity or retirement pension under that | 17 | | system or fund shall be suspended during that employment. Upon | 18 | | termination of that employment, the person's retirement | 19 | | annuity or retirement pension payments shall resume and be | 20 | | recalculated if recalculation is provided for under the | 21 | | applicable Article of this Code. | 22 | | If a person who first becomes a member of a retirement | 23 | | system or pension fund subject to this Section on or after | 24 | | January 1, 2012 and is receiving a retirement annuity or | 25 | | retirement pension under that system or fund and accepts on a | 26 | | contractual basis a position to provide services to a |
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| 1 | | governmental entity from which he or she has retired, then | 2 | | that person's annuity or retirement pension earned as an | 3 | | active employee of the employer shall be suspended during that | 4 | | contractual service. A person receiving an annuity or | 5 | | retirement pension under this Code shall notify the pension | 6 | | fund or retirement system from which he or she is receiving an | 7 | | annuity or retirement pension, as well as his or her | 8 | | contractual employer, of his or her retirement status before | 9 | | accepting contractual employment. A person who fails to submit | 10 | | such notification shall be guilty of a Class A misdemeanor and | 11 | | required to pay a fine of $1,000. Upon termination of that | 12 | | contractual employment, the person's retirement annuity or | 13 | | retirement pension payments shall resume and, if appropriate, | 14 | | be recalculated under the applicable provisions of this Code. | 15 | | (i) (Blank). | 16 | | (j) In the case of a conflict between the provisions of | 17 | | this Section and any other provision of this Code, the | 18 | | provisions of this Section shall control.
| 19 | | (Source: P.A. 101-610, eff. 1-1-20; 102-16, eff. 6-17-21; | 20 | | 102-210, eff. 1-1-22; 102-263, eff. 8-6-21; 102-719, eff. | 21 | | 5-6-22.) | 22 | | (Text of Section from P.A. 102-813) | 23 | | Sec. 1-160. Provisions applicable to new hires. | 24 | | (a) The provisions of this Section apply to a person who, | 25 | | on or after January 1, 2011, first becomes a member or a |
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| 1 | | participant under any reciprocal retirement system or pension | 2 | | fund established under this Code, other than a retirement | 3 | | system or pension fund established under Article 2, 3, 4, 5, 6, | 4 | | 7, 15, or 18 of this Code, notwithstanding any other provision | 5 | | of this Code to the contrary, but do not apply to any | 6 | | self-managed plan established under this Code or to any | 7 | | participant of the retirement plan established under Section | 8 | | 22-101; except that this Section applies to a person who | 9 | | elected to establish alternative credits by electing in | 10 | | writing after January 1, 2011, but before August 8, 2011, | 11 | | under Section 7-145.1 of this Code. Notwithstanding anything | 12 | | to the contrary in this Section, for purposes of this Section, | 13 | | a person who is a Tier 1 regular employee as defined in Section | 14 | | 7-109.4 of this Code or who participated in a retirement | 15 | | system under Article 15 prior to January 1, 2011 shall be | 16 | | deemed a person who first became a member or participant prior | 17 | | to January 1, 2011 under any retirement system or pension fund | 18 | | subject to this Section. The changes made to this Section by | 19 | | Public Act 98-596 are a clarification of existing law and are | 20 | | intended to be retroactive to January 1, 2011 (the effective | 21 | | date of Public Act 96-889), notwithstanding the provisions of | 22 | | Section 1-103.1 of this Code. | 23 | | This Section does not apply to a person who first becomes a | 24 | | noncovered employee under Article 14 on or after the | 25 | | implementation date of the plan created under Section 1-161 | 26 | | for that Article, unless that person elects under subsection |
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| 1 | | (b) of Section 1-161 to instead receive the benefits provided | 2 | | under this Section and the applicable provisions of that | 3 | | Article. | 4 | | This Section does not apply to a person who first becomes a | 5 | | member or participant under Article 16 on or after the | 6 | | implementation date of the plan created under Section 1-161 | 7 | | for that Article, unless that person elects under subsection | 8 | | (b) of Section 1-161 to instead receive the benefits provided | 9 | | under this Section and the applicable provisions of that | 10 | | Article. | 11 | | This Section does not apply to a person who elects under | 12 | | subsection (c-5) of Section 1-161 to receive the benefits | 13 | | under Section 1-161. | 14 | | This Section does not apply to a person who first becomes a | 15 | | member or participant of an affected pension fund on or after 6 | 16 | | months after the resolution or ordinance date, as defined in | 17 | | Section 1-162, unless that person elects under subsection (c) | 18 | | of Section 1-162 to receive the benefits provided under this | 19 | | Section and the applicable provisions of the Article under | 20 | | which he or she is a member or participant. | 21 | | (b) "Final average salary" means, except as otherwise | 22 | | provided in this subsection, the average monthly (or annual) | 23 | | salary obtained by dividing the total salary or earnings | 24 | | calculated under the Article applicable to the member or | 25 | | participant during the 96 consecutive months (or 8 consecutive | 26 | | years) of service within the last 120 months (or 10 years) of |
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| 1 | | service in which the total salary or earnings calculated under | 2 | | the applicable Article was the highest by the number of months | 3 | | (or years) of service in that period. For the purposes of a | 4 | | person who first becomes a member or participant of any | 5 | | retirement system or pension fund to which this Section | 6 | | applies on or after January 1, 2011, in this Code, "final | 7 | | average salary" shall be substituted for the following: | 8 | | (1) (Blank). | 9 | | (2) In Articles 8, 9, 10, 11, and 12, "highest average | 10 | | annual salary for any 4 consecutive years within the last | 11 | | 10 years of service immediately preceding the date of | 12 | | withdrawal". | 13 | | (3) In Article 13, "average final salary". | 14 | | (4) In Article 14, "final average compensation". | 15 | | (5) In Article 17, "average salary". | 16 | | (6) In Section 22-207, "wages or salary received by | 17 | | him at the date of retirement or discharge". | 18 | | A member of the Teachers' Retirement System of the State | 19 | | of Illinois who retires on or after June 1, 2021 and for whom | 20 | | the 2020-2021 school year is used in the calculation of the | 21 | | member's final average salary shall use the higher of the | 22 | | following for the purpose of determining the member's final | 23 | | average salary: | 24 | | (A) the amount otherwise calculated under the next | 25 | | first paragraph of this subsection; or | 26 | | (B) an amount calculated by the Teachers' Retirement |
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| 1 | | System of the State of Illinois using the average of the | 2 | | monthly (or annual) salary obtained by dividing the total | 3 | | salary or earnings calculated under Article 16 applicable | 4 | | to the member or participant during the 72 96 months (or 6 | 5 | | 8 years) of service within the last 120 months (or 10 | 6 | | years) of service in which the total salary or earnings | 7 | | calculated under the Article was the highest by the number | 8 | | of months (or years) of service in that period. | 9 | | For a member under Article 16, "final average salary"
| 10 | | means the greater of: (i) the amount otherwise calculated
| 11 | | under this subsection; or (ii) the average monthly (or annual)
| 12 | | salary obtained by dividing the total salary calculated under
| 13 | | Article 16 during the 72 consecutive months (or 6 consecutive | 14 | | years) of service within the last 120 months (or 10 years) of
| 15 | | service in which the total salary calculated under the Article
| 16 | | was the highest by the number of months (or years) of service
| 17 | | in that period. | 18 | | (b-5) Beginning on January 1, 2011, for all purposes under | 19 | | this Code (including without limitation the calculation of | 20 | | benefits and employee contributions), the annual earnings, | 21 | | salary, or wages (based on the plan year) of a member or | 22 | | participant to whom this Section applies shall not exceed | 23 | | $106,800; however, that amount shall annually thereafter be | 24 | | increased by the lesser of (i) 3% of that amount, including all | 25 | | previous adjustments, or (ii) one-half the annual unadjusted | 26 | | percentage increase (but not less than zero) in the consumer |
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| 1 | | price index-u
for the 12 months ending with the September | 2 | | preceding each November 1, including all previous adjustments ; | 3 | | except that beginning in 2024 for purposes of Article 16 of
| 4 | | this Code (including, without limitation, the calculation of
| 5 | | benefits and employee contributions), that amount shall
| 6 | | annually be increased by the greater of: (i) 3%; or (ii) the
| 7 | | annual unadjusted percentage increase in the consumer price
| 8 | | index-u for the 12 months ending with the September preceding
| 9 | | each November 1, including all previous adjustments . | 10 | | For the purposes of this Section, "consumer price index-u" | 11 | | means
the index published by the Bureau of Labor Statistics of | 12 | | the United States
Department of Labor that measures the | 13 | | average change in prices of goods and
services purchased by | 14 | | all urban consumers, United States city average, all
items, | 15 | | 1982-84 = 100. The new amount resulting from each annual | 16 | | adjustment
shall be determined by the Public Pension Division | 17 | | of the Department of Insurance and made available to the | 18 | | boards of the retirement systems and pension funds by November | 19 | | 1 of each year. | 20 | | (c) A member or participant is entitled to a retirement
| 21 | | annuity upon written application if he or she has attained age | 22 | | 67 (age 65, with respect to service under Article 12 that is | 23 | | subject to this Section, for a member or participant under | 24 | | Article 12 who first becomes a member or participant under | 25 | | Article 12 on or after January 1, 2022 or who makes the | 26 | | election under item (i) of subsection (d-15) of this Section) |
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| 1 | | and has at least 10 years of service credit and is otherwise | 2 | | eligible under the requirements of the applicable Article. | 3 | | A member or participant who has attained age 62 (age 60, | 4 | | with respect to service under Article 12 that is subject to | 5 | | this Section, for a member or participant under Article 12 who | 6 | | first becomes a member or participant under Article 12 on or | 7 | | after January 1, 2022 or who makes the election under item (i) | 8 | | of subsection (d-15) of this Section) and has at least 10 years | 9 | | of service credit and is otherwise eligible under the | 10 | | requirements of the applicable Article may elect to receive | 11 | | the lower retirement annuity provided
in subsection (d) of | 12 | | this Section. | 13 | | (c-5) A person who first becomes a member or a participant | 14 | | subject to this Section on or after July 6, 2017 (the effective | 15 | | date of Public Act 100-23), notwithstanding any other | 16 | | provision of this Code to the contrary, is entitled to a | 17 | | retirement annuity under Article 8 or Article 11 upon written | 18 | | application if he or she has attained age 65 and has at least | 19 | | 10 years of service credit and is otherwise eligible under the | 20 | | requirements of Article 8 or Article 11 of this Code, | 21 | | whichever is applicable. | 22 | | (c-10) Notwithstanding subsection (c), a member under
| 23 | | Article 16 is entitled to a retirement annuity if he or she has
| 24 | | attained age 60; has at least 35 years of service credit; and
| 25 | | is otherwise eligible under the requirements of Article 16. | 26 | | Notwithstanding subsection (c), a member under Article 16
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| 1 | | is entitled to a retirement annuity upon written application
| 2 | | if he or she has attained age 62; has at least 10 years of
| 3 | | service credit; and is otherwise eligible under the
| 4 | | requirements of Article 16. | 5 | | (d) The retirement annuity of a member or participant who | 6 | | is retiring after attaining age 62 (age 60, with respect to | 7 | | service under Article 12 that is subject to this Section, for a | 8 | | member or participant under Article 12 who first becomes a | 9 | | member or participant under Article 12 on or after January 1, | 10 | | 2022 or who makes the election under item (i) of subsection | 11 | | (d-15) of this Section) with at least 10 years of service | 12 | | credit shall be reduced by one-half
of 1% for each full month | 13 | | that the member's age is under age 67 (age 65, with respect to | 14 | | service under Article 12 that is subject to this Section, for a | 15 | | member or participant under Article 12 who first becomes a | 16 | | member or participant under Article 12 on or after January 1, | 17 | | 2022 or who makes the election under item (i) of subsection | 18 | | (d-15) of this Section). This subsection does not apply to a
| 19 | | person who meets the requirements under subsection (c-10). | 20 | | (d-5) The retirement annuity payable under Article 8 or | 21 | | Article 11 to an eligible person subject to subsection (c-5) | 22 | | of this Section who is retiring at age 60 with at least 10 | 23 | | years of service credit shall be reduced by one-half of 1% for | 24 | | each full month that the member's age is under age 65. | 25 | | (d-10) Each person who first became a member or | 26 | | participant under Article 8 or Article 11 of this Code on or |
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| 1 | | after January 1, 2011 and prior to July 6, 2017 (the effective | 2 | | date of Public Act 100-23) shall make an irrevocable election | 3 | | either: | 4 | | (i) to be eligible for the reduced retirement age | 5 | | provided in subsections (c-5)
and (d-5) of this Section, | 6 | | the eligibility for which is conditioned upon the member | 7 | | or participant agreeing to the increases in employee | 8 | | contributions for age and service annuities provided in | 9 | | subsection (a-5) of Section 8-174 of this Code (for | 10 | | service under Article 8) or subsection (a-5) of Section | 11 | | 11-170 of this Code (for service under Article 11); or | 12 | | (ii) to not agree to item (i) of this subsection | 13 | | (d-10), in which case the member or participant shall | 14 | | continue to be subject to the retirement age provisions in | 15 | | subsections (c) and (d) of this Section and the employee | 16 | | contributions for age and service annuity as provided in | 17 | | subsection (a) of Section 8-174 of this Code (for service | 18 | | under Article 8) or subsection (a) of Section 11-170 of | 19 | | this Code (for service under Article 11). | 20 | | The election provided for in this subsection shall be made | 21 | | between October 1, 2017 and November 15, 2017. A person | 22 | | subject to this subsection who makes the required election | 23 | | shall remain bound by that election. A person subject to this | 24 | | subsection who fails for any reason to make the required | 25 | | election within the time specified in this subsection shall be | 26 | | deemed to have made the election under item (ii). |
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| 1 | | (d-15) Each person who first becomes a member or | 2 | | participant under Article 12 on or after January 1, 2011 and | 3 | | prior to January 1, 2022 shall make an irrevocable election | 4 | | either: | 5 | | (i) to be eligible for the reduced retirement age | 6 | | specified in subsections (c) and (d) of this Section, the | 7 | | eligibility for which is conditioned upon the member or | 8 | | participant agreeing to the increase in employee | 9 | | contributions for service annuities specified in | 10 | | subsection (b) of Section 12-150; or | 11 | | (ii) to not agree to item (i) of this subsection | 12 | | (d-15), in which case the member or participant shall not | 13 | | be eligible for the reduced retirement age specified in | 14 | | subsections (c) and (d) of this Section and shall not be | 15 | | subject to the increase in employee contributions for | 16 | | service annuities specified in subsection (b) of Section | 17 | | 12-150. | 18 | | The election provided for in this subsection shall be made | 19 | | between January 1, 2022 and April 1, 2022. A person subject to | 20 | | this subsection who makes the required election shall remain | 21 | | bound by that election. A person subject to this subsection | 22 | | who fails for any reason to make the required election within | 23 | | the time specified in this subsection shall be deemed to have | 24 | | made the election under item (ii). | 25 | | (e) Any retirement annuity or supplemental annuity shall | 26 | | be subject to annual increases on the January 1 occurring |
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| 1 | | either on or after the attainment of age 67 (age 65, with | 2 | | respect to service under Article 12 that is subject to this | 3 | | Section, for a member or participant under Article 12 who | 4 | | first becomes a member or participant under Article 12 on or | 5 | | after January 1, 2022 or who makes the election under item (i) | 6 | | of subsection (d-15); and beginning on July 6, 2017 (the | 7 | | effective date of Public Act 100-23), age 65 with respect to | 8 | | service under Article 8 or Article 11 for eligible persons | 9 | | who: (i) are subject to subsection (c-5) of this Section; or | 10 | | (ii) made the election under item (i) of subsection (d-10) of | 11 | | this Section) or the first anniversary of the annuity start | 12 | | date, whichever is later. Except for retirement annuities | 13 | | under Article 16, each Each annual increase shall be | 14 | | calculated at 3% or one-half the annual unadjusted percentage | 15 | | increase (but not less than zero) in the consumer price | 16 | | index-u for the 12 months ending with the September preceding | 17 | | each November 1, whichever is less, of the originally granted | 18 | | retirement annuity. If the annual unadjusted percentage change | 19 | | in the consumer price index-u for the 12 months ending with the | 20 | | September preceding each November 1 is zero or there is a | 21 | | decrease, then the annuity shall not be increased. | 22 | | For retirement annuities under Article 16, each annual
| 23 | | increase shall be calculated at 3% or one-half the annual
| 24 | | unadjusted percentage increase in the consumer price index-u
| 25 | | for the 12 months ending with the September preceding each
| 26 | | November 1, whichever is greater, of the originally granted
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| 1 | | retirement annuity. | 2 | | For the purposes of Section 1-103.1 of this Code, the
| 3 | | changes made to this Section by this amendatory Act of the
| 4 | | 103rd General Assembly are applicable without regard to
| 5 | | whether the employee was in active service on or after the
| 6 | | effective date of this amendatory Act of the 103rd General
| 7 | | Assembly. | 8 | | For the purposes of Section 1-103.1 of this Code, the | 9 | | changes made to this Section by Public Act 102-263 are | 10 | | applicable without regard to whether the employee was in | 11 | | active service on or after August 6, 2021 (the effective date | 12 | | of Public Act 102-263). | 13 | | For the purposes of Section 1-103.1 of this Code, the | 14 | | changes made to this Section by Public Act 100-23 are | 15 | | applicable without regard to whether the employee was in | 16 | | active service on or after July 6, 2017 (the effective date of | 17 | | Public Act 100-23). | 18 | | (f) The initial survivor's or widow's annuity of an | 19 | | otherwise eligible survivor or widow of a retired member or | 20 | | participant who first became a member or participant on or | 21 | | after January 1, 2011 shall be in the amount of 66 2/3% of the | 22 | | retired member's or participant's retirement annuity at the | 23 | | date of death. In the case of the death of a member or | 24 | | participant who has not retired and who first became a member | 25 | | or participant on or after January 1, 2011, eligibility for a | 26 | | survivor's or widow's annuity shall be determined by the |
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| 1 | | applicable Article of this Code. The initial benefit shall be | 2 | | 66 2/3% of the earned annuity without a reduction due to age. A | 3 | | child's annuity of an otherwise eligible child shall be in the | 4 | | amount prescribed under each Article if applicable. Any | 5 | | survivor's or widow's annuity shall be increased (1) on each | 6 | | January 1 occurring on or after the commencement of the | 7 | | annuity if
the deceased member died while receiving a | 8 | | retirement annuity or (2) in
other cases, on each January 1 | 9 | | occurring after the first anniversary
of the commencement of | 10 | | the annuity. Each annual increase shall be calculated at 3% or | 11 | | one-half the annual unadjusted percentage increase (but not | 12 | | less than zero) in the consumer price index-u for the 12 months | 13 | | ending with the September preceding each November 1, whichever | 14 | | is less, of the originally granted survivor's annuity. If the | 15 | | annual unadjusted percentage change in the consumer price | 16 | | index-u for the 12 months ending with the September preceding | 17 | | each November 1 is zero or there is a decrease, then the | 18 | | annuity shall not be increased. | 19 | | (g) The benefits in Section 14-110 apply only if the | 20 | | person is a State policeman, a fire fighter in the fire | 21 | | protection service of a department, a conservation police | 22 | | officer, an investigator for the Secretary of State, an arson | 23 | | investigator, a Commerce Commission police officer, | 24 | | investigator for the Department of Revenue or the
Illinois | 25 | | Gaming Board, a security employee of the Department of | 26 | | Corrections or the Department of Juvenile Justice, or a |
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| 1 | | security employee of the Department of Innovation and | 2 | | Technology, as those terms are defined in subsection (b) and | 3 | | subsection (c) of Section 14-110. A person who meets the | 4 | | requirements of this Section is entitled to an annuity | 5 | | calculated under the provisions of Section 14-110, in lieu of | 6 | | the regular or minimum retirement annuity, only if the person | 7 | | has withdrawn from service with not less than 20
years of | 8 | | eligible creditable service and has attained age 60, | 9 | | regardless of whether
the attainment of age 60 occurs while | 10 | | the person is
still in service. | 11 | | (h) If a person who first becomes a member or a participant | 12 | | of a retirement system or pension fund subject to this Section | 13 | | on or after January 1, 2011 is receiving a retirement annuity | 14 | | or retirement pension under that system or fund and becomes a | 15 | | member or participant under any other system or fund created | 16 | | by this Code and is employed on a full-time basis, except for | 17 | | those members or participants exempted from the provisions of | 18 | | this Section under subsection (a) of this Section, then the | 19 | | person's retirement annuity or retirement pension under that | 20 | | system or fund shall be suspended during that employment. Upon | 21 | | termination of that employment, the person's retirement | 22 | | annuity or retirement pension payments shall resume and be | 23 | | recalculated if recalculation is provided for under the | 24 | | applicable Article of this Code. | 25 | | If a person who first becomes a member of a retirement | 26 | | system or pension fund subject to this Section on or after |
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| 1 | | January 1, 2012 and is receiving a retirement annuity or | 2 | | retirement pension under that system or fund and accepts on a | 3 | | contractual basis a position to provide services to a | 4 | | governmental entity from which he or she has retired, then | 5 | | that person's annuity or retirement pension earned as an | 6 | | active employee of the employer shall be suspended during that | 7 | | contractual service. A person receiving an annuity or | 8 | | retirement pension under this Code shall notify the pension | 9 | | fund or retirement system from which he or she is receiving an | 10 | | annuity or retirement pension, as well as his or her | 11 | | contractual employer, of his or her retirement status before | 12 | | accepting contractual employment. A person who fails to submit | 13 | | such notification shall be guilty of a Class A misdemeanor and | 14 | | required to pay a fine of $1,000. Upon termination of that | 15 | | contractual employment, the person's retirement annuity or | 16 | | retirement pension payments shall resume and, if appropriate, | 17 | | be recalculated under the applicable provisions of this Code. | 18 | | (i) (Blank). | 19 | | (j) In the case of a conflict between the provisions of | 20 | | this Section and any other provision of this Code, the | 21 | | provisions of this Section shall control.
| 22 | | (Source: P.A. 101-610, eff. 1-1-20; 102-16, eff. 6-17-21; | 23 | | 102-210, eff. 1-1-22; 102-263, eff. 8-6-21; 102-813, eff. | 24 | | 5-13-22.) | 25 | | (Text of Section from P.A. 102-956) |
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| 1 | | Sec. 1-160. Provisions applicable to new hires. | 2 | | (a) The provisions of this Section apply to a person who, | 3 | | on or after January 1, 2011, first becomes a member or a | 4 | | participant under any reciprocal retirement system or pension | 5 | | fund established under this Code, other than a retirement | 6 | | system or pension fund established under Article 2, 3, 4, 5, 6, | 7 | | 7, 15, or 18 of this Code, notwithstanding any other provision | 8 | | of this Code to the contrary, but do not apply to any | 9 | | self-managed plan established under this Code or to any | 10 | | participant of the retirement plan established under Section | 11 | | 22-101; except that this Section applies to a person who | 12 | | elected to establish alternative credits by electing in | 13 | | writing after January 1, 2011, but before August 8, 2011, | 14 | | under Section 7-145.1 of this Code. Notwithstanding anything | 15 | | to the contrary in this Section, for purposes of this Section, | 16 | | a person who is a Tier 1 regular employee as defined in Section | 17 | | 7-109.4 of this Code or who participated in a retirement | 18 | | system under Article 15 prior to January 1, 2011 shall be | 19 | | deemed a person who first became a member or participant prior | 20 | | to January 1, 2011 under any retirement system or pension fund | 21 | | subject to this Section. The changes made to this Section by | 22 | | Public Act 98-596 are a clarification of existing law and are | 23 | | intended to be retroactive to January 1, 2011 (the effective | 24 | | date of Public Act 96-889), notwithstanding the provisions of | 25 | | Section 1-103.1 of this Code. | 26 | | This Section does not apply to a person who first becomes a |
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| 1 | | noncovered employee under Article 14 on or after the | 2 | | implementation date of the plan created under Section 1-161 | 3 | | for that Article, unless that person elects under subsection | 4 | | (b) of Section 1-161 to instead receive the benefits provided | 5 | | under this Section and the applicable provisions of that | 6 | | Article. | 7 | | This Section does not apply to a person who first becomes a | 8 | | member or participant under Article 16 on or after the | 9 | | implementation date of the plan created under Section 1-161 | 10 | | for that Article, unless that person elects under subsection | 11 | | (b) of Section 1-161 to instead receive the benefits provided | 12 | | under this Section and the applicable provisions of that | 13 | | Article. | 14 | | This Section does not apply to a person who elects under | 15 | | subsection (c-5) of Section 1-161 to receive the benefits | 16 | | under Section 1-161. | 17 | | This Section does not apply to a person who first becomes a | 18 | | member or participant of an affected pension fund on or after 6 | 19 | | months after the resolution or ordinance date, as defined in | 20 | | Section 1-162, unless that person elects under subsection (c) | 21 | | of Section 1-162 to receive the benefits provided under this | 22 | | Section and the applicable provisions of the Article under | 23 | | which he or she is a member or participant. | 24 | | (b) "Final average salary" means, except as otherwise | 25 | | provided in this subsection, the average monthly (or annual) | 26 | | salary obtained by dividing the total salary or earnings |
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| 1 | | calculated under the Article applicable to the member or | 2 | | participant during the 96 consecutive months (or 8 consecutive | 3 | | years) of service within the last 120 months (or 10 years) of | 4 | | service in which the total salary or earnings calculated under | 5 | | the applicable Article was the highest by the number of months | 6 | | (or years) of service in that period. For the purposes of a | 7 | | person who first becomes a member or participant of any | 8 | | retirement system or pension fund to which this Section | 9 | | applies on or after January 1, 2011, in this Code, "final | 10 | | average salary" shall be substituted for the following: | 11 | | (1) (Blank). | 12 | | (2) In Articles 8, 9, 10, 11, and 12, "highest average | 13 | | annual salary for any 4 consecutive years within the last | 14 | | 10 years of service immediately preceding the date of | 15 | | withdrawal". | 16 | | (3) In Article 13, "average final salary". | 17 | | (4) In Article 14, "final average compensation". | 18 | | (5) In Article 17, "average salary". | 19 | | (6) In Section 22-207, "wages or salary received by | 20 | | him at the date of retirement or discharge". | 21 | | A member of the Teachers' Retirement System of the State | 22 | | of Illinois who retires on or after June 1, 2021 and for whom | 23 | | the 2020-2021 school year is used in the calculation of the | 24 | | member's final average salary shall use the higher of the | 25 | | following for the purpose of determining the member's final | 26 | | average salary: |
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| 1 | | (A) the amount otherwise calculated under the next | 2 | | first paragraph of this subsection; or | 3 | | (B) an amount calculated by the Teachers' Retirement | 4 | | System of the State of Illinois using the average of the | 5 | | monthly (or annual) salary obtained by dividing the total | 6 | | salary or earnings calculated under Article 16 applicable | 7 | | to the member or participant during the 72 96 months (or 6 | 8 | | 8 years) of service within the last 120 months (or 10 | 9 | | years) of service in which the total salary or earnings | 10 | | calculated under the Article was the highest by the number | 11 | | of months (or years) of service in that period. | 12 | | For a member under Article 16, "final average salary"
| 13 | | means the greater of: (i) the amount otherwise calculated
| 14 | | under this subsection; or (ii) the average monthly (or annual)
| 15 | | salary obtained by dividing the total salary calculated under
| 16 | | Article 16 during the 72 consecutive months (or 6 consecutive | 17 | | years) of service within the last 120 months (or 10 years) of
| 18 | | service in which the total salary calculated under the Article
| 19 | | was the highest by the number of months (or years) of service
| 20 | | in that period. | 21 | | (b-5) Beginning on January 1, 2011, for all purposes under | 22 | | this Code (including without limitation the calculation of | 23 | | benefits and employee contributions), the annual earnings, | 24 | | salary, or wages (based on the plan year) of a member or | 25 | | participant to whom this Section applies shall not exceed | 26 | | $106,800; however, that amount shall annually thereafter be |
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| 1 | | increased by the lesser of (i) 3% of that amount, including all | 2 | | previous adjustments, or (ii) one-half the annual unadjusted | 3 | | percentage increase (but not less than zero) in the consumer | 4 | | price index-u
for the 12 months ending with the September | 5 | | preceding each November 1, including all previous adjustments ; | 6 | | except that beginning in 2024 for purposes of Article 16 of
| 7 | | this Code (including, without limitation, the calculation of
| 8 | | benefits and employee contributions), that amount shall
| 9 | | annually be increased by the greater of: (i) 3%; or (ii) the
| 10 | | annual unadjusted percentage increase in the consumer price
| 11 | | index-u for the 12 months ending with the September preceding
| 12 | | each November 1, including all previous adjustments . | 13 | | For the purposes of this Section, "consumer price index-u" | 14 | | means
the index published by the Bureau of Labor Statistics of | 15 | | the United States
Department of Labor that measures the | 16 | | average change in prices of goods and
services purchased by | 17 | | all urban consumers, United States city average, all
items, | 18 | | 1982-84 = 100. The new amount resulting from each annual | 19 | | adjustment
shall be determined by the Public Pension Division | 20 | | of the Department of Insurance and made available to the | 21 | | boards of the retirement systems and pension funds by November | 22 | | 1 of each year. | 23 | | (c) A member or participant is entitled to a retirement
| 24 | | annuity upon written application if he or she has attained age | 25 | | 67 (age 65, with respect to service under Article 12 that is | 26 | | subject to this Section, for a member or participant under |
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| 1 | | Article 12 who first becomes a member or participant under | 2 | | Article 12 on or after January 1, 2022 or who makes the | 3 | | election under item (i) of subsection (d-15) of this Section) | 4 | | and has at least 10 years of service credit and is otherwise | 5 | | eligible under the requirements of the applicable Article. | 6 | | A member or participant who has attained age 62 (age 60, | 7 | | with respect to service under Article 12 that is subject to | 8 | | this Section, for a member or participant under Article 12 who | 9 | | first becomes a member or participant under Article 12 on or | 10 | | after January 1, 2022 or who makes the election under item (i) | 11 | | of subsection (d-15) of this Section) and has at least 10 years | 12 | | of service credit and is otherwise eligible under the | 13 | | requirements of the applicable Article may elect to receive | 14 | | the lower retirement annuity provided
in subsection (d) of | 15 | | this Section. | 16 | | (c-5) A person who first becomes a member or a participant | 17 | | subject to this Section on or after July 6, 2017 (the effective | 18 | | date of Public Act 100-23), notwithstanding any other | 19 | | provision of this Code to the contrary, is entitled to a | 20 | | retirement annuity under Article 8 or Article 11 upon written | 21 | | application if he or she has attained age 65 and has at least | 22 | | 10 years of service credit and is otherwise eligible under the | 23 | | requirements of Article 8 or Article 11 of this Code, | 24 | | whichever is applicable. | 25 | | (c-10) Notwithstanding subsection (c), a member under
| 26 | | Article 16 is entitled to a retirement annuity if he or she has
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| 1 | | attained age 60; has at least 35 years of service credit; and
| 2 | | is otherwise eligible under the requirements of Article 16. | 3 | | Notwithstanding subsection (c), a member under Article 16
| 4 | | is entitled to a retirement annuity upon written application
| 5 | | if he or she has attained age 62; has at least 10 years of
| 6 | | service credit; and is otherwise eligible under the
| 7 | | requirements of Article 16. | 8 | | (d) The retirement annuity of a member or participant who | 9 | | is retiring after attaining age 62 (age 60, with respect to | 10 | | service under Article 12 that is subject to this Section, for a | 11 | | member or participant under Article 12 who first becomes a | 12 | | member or participant under Article 12 on or after January 1, | 13 | | 2022 or who makes the election under item (i) of subsection | 14 | | (d-15) of this Section) with at least 10 years of service | 15 | | credit shall be reduced by one-half
of 1% for each full month | 16 | | that the member's age is under age 67 (age 65, with respect to | 17 | | service under Article 12 that is subject to this Section, for a | 18 | | member or participant under Article 12 who first becomes a | 19 | | member or participant under Article 12 on or after January 1, | 20 | | 2022 or who makes the election under item (i) of subsection | 21 | | (d-15) of this Section). This subsection does not apply to a
| 22 | | person who meets the requirements under subsection (c-10). | 23 | | (d-5) The retirement annuity payable under Article 8 or | 24 | | Article 11 to an eligible person subject to subsection (c-5) | 25 | | of this Section who is retiring at age 60 with at least 10 | 26 | | years of service credit shall be reduced by one-half of 1% for |
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| 1 | | each full month that the member's age is under age 65. | 2 | | (d-10) Each person who first became a member or | 3 | | participant under Article 8 or Article 11 of this Code on or | 4 | | after January 1, 2011 and prior to July 6, 2017 (the effective | 5 | | date of Public Act 100-23) shall make an irrevocable election | 6 | | either: | 7 | | (i) to be eligible for the reduced retirement age | 8 | | provided in subsections (c-5)
and (d-5) of this Section, | 9 | | the eligibility for which is conditioned upon the member | 10 | | or participant agreeing to the increases in employee | 11 | | contributions for age and service annuities provided in | 12 | | subsection (a-5) of Section 8-174 of this Code (for | 13 | | service under Article 8) or subsection (a-5) of Section | 14 | | 11-170 of this Code (for service under Article 11); or | 15 | | (ii) to not agree to item (i) of this subsection | 16 | | (d-10), in which case the member or participant shall | 17 | | continue to be subject to the retirement age provisions in | 18 | | subsections (c) and (d) of this Section and the employee | 19 | | contributions for age and service annuity as provided in | 20 | | subsection (a) of Section 8-174 of this Code (for service | 21 | | under Article 8) or subsection (a) of Section 11-170 of | 22 | | this Code (for service under Article 11). | 23 | | The election provided for in this subsection shall be made | 24 | | between October 1, 2017 and November 15, 2017. A person | 25 | | subject to this subsection who makes the required election | 26 | | shall remain bound by that election. A person subject to this |
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| 1 | | subsection who fails for any reason to make the required | 2 | | election within the time specified in this subsection shall be | 3 | | deemed to have made the election under item (ii). | 4 | | (d-15) Each person who first becomes a member or | 5 | | participant under Article 12 on or after January 1, 2011 and | 6 | | prior to January 1, 2022 shall make an irrevocable election | 7 | | either: | 8 | | (i) to be eligible for the reduced retirement age | 9 | | specified in subsections (c) and (d) of this Section, the | 10 | | eligibility for which is conditioned upon the member or | 11 | | participant agreeing to the increase in employee | 12 | | contributions for service annuities specified in | 13 | | subsection (b) of Section 12-150; or | 14 | | (ii) to not agree to item (i) of this subsection | 15 | | (d-15), in which case the member or participant shall not | 16 | | be eligible for the reduced retirement age specified in | 17 | | subsections (c) and (d) of this Section and shall not be | 18 | | subject to the increase in employee contributions for | 19 | | service annuities specified in subsection (b) of Section | 20 | | 12-150. | 21 | | The election provided for in this subsection shall be made | 22 | | between January 1, 2022 and April 1, 2022. A person subject to | 23 | | this subsection who makes the required election shall remain | 24 | | bound by that election. A person subject to this subsection | 25 | | who fails for any reason to make the required election within | 26 | | the time specified in this subsection shall be deemed to have |
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| 1 | | made the election under item (ii). | 2 | | (e) Any retirement annuity or supplemental annuity shall | 3 | | be subject to annual increases on the January 1 occurring | 4 | | either on or after the attainment of age 67 (age 65, with | 5 | | respect to service under Article 12 that is subject to this | 6 | | Section, for a member or participant under Article 12 who | 7 | | first becomes a member or participant under Article 12 on or | 8 | | after January 1, 2022 or who makes the election under item (i) | 9 | | of subsection (d-15); and beginning on July 6, 2017 (the | 10 | | effective date of Public Act 100-23), age 65 with respect to | 11 | | service under Article 8 or Article 11 for eligible persons | 12 | | who: (i) are subject to subsection (c-5) of this Section; or | 13 | | (ii) made the election under item (i) of subsection (d-10) of | 14 | | this Section) or the first anniversary of the annuity start | 15 | | date, whichever is later. Except for retirement annuities | 16 | | under Article 16, each Each annual increase shall be | 17 | | calculated at 3% or one-half the annual unadjusted percentage | 18 | | increase (but not less than zero) in the consumer price | 19 | | index-u for the 12 months ending with the September preceding | 20 | | each November 1, whichever is less, of the originally granted | 21 | | retirement annuity. If the annual unadjusted percentage change | 22 | | in the consumer price index-u for the 12 months ending with the | 23 | | September preceding each November 1 is zero or there is a | 24 | | decrease, then the annuity shall not be increased. | 25 | | For retirement annuities under Article 16, each annual
| 26 | | increase shall be calculated at 3% or one-half the annual
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| 1 | | unadjusted percentage increase in the consumer price index-u
| 2 | | for the 12 months ending with the September preceding each
| 3 | | November 1, whichever is greater, of the originally granted
| 4 | | retirement annuity. | 5 | | For the purposes of Section 1-103.1 of this Code, the
| 6 | | changes made to this Section by this amendatory Act of the
| 7 | | 103rd General Assembly are applicable without regard to
| 8 | | whether the employee was in active service on or after the
| 9 | | effective date of this amendatory Act of the 103rd General
| 10 | | Assembly. | 11 | | For the purposes of Section 1-103.1 of this Code, the | 12 | | changes made to this Section by Public Act 102-263 are | 13 | | applicable without regard to whether the employee was in | 14 | | active service on or after August 6, 2021 (the effective date | 15 | | of Public Act 102-263). | 16 | | For the purposes of Section 1-103.1 of this Code, the | 17 | | changes made to this Section by Public Act 100-23 are | 18 | | applicable without regard to whether the employee was in | 19 | | active service on or after July 6, 2017 (the effective date of | 20 | | Public Act 100-23). | 21 | | (f) The initial survivor's or widow's annuity of an | 22 | | otherwise eligible survivor or widow of a retired member or | 23 | | participant who first became a member or participant on or | 24 | | after January 1, 2011 shall be in the amount of 66 2/3% of the | 25 | | retired member's or participant's retirement annuity at the | 26 | | date of death. In the case of the death of a member or |
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| 1 | | participant who has not retired and who first became a member | 2 | | or participant on or after January 1, 2011, eligibility for a | 3 | | survivor's or widow's annuity shall be determined by the | 4 | | applicable Article of this Code. The initial benefit shall be | 5 | | 66 2/3% of the earned annuity without a reduction due to age. A | 6 | | child's annuity of an otherwise eligible child shall be in the | 7 | | amount prescribed under each Article if applicable. Any | 8 | | survivor's or widow's annuity shall be increased (1) on each | 9 | | January 1 occurring on or after the commencement of the | 10 | | annuity if
the deceased member died while receiving a | 11 | | retirement annuity or (2) in
other cases, on each January 1 | 12 | | occurring after the first anniversary
of the commencement of | 13 | | the annuity. Each annual increase shall be calculated at 3% or | 14 | | one-half the annual unadjusted percentage increase (but not | 15 | | less than zero) in the consumer price index-u for the 12 months | 16 | | ending with the September preceding each November 1, whichever | 17 | | is less, of the originally granted survivor's annuity. If the | 18 | | annual unadjusted percentage change in the consumer price | 19 | | index-u for the 12 months ending with the September preceding | 20 | | each November 1 is zero or there is a decrease, then the | 21 | | annuity shall not be increased. | 22 | | (g) The benefits in Section 14-110 apply only if the | 23 | | person is a State policeman, a fire fighter in the fire | 24 | | protection service of a department, a conservation police | 25 | | officer, an investigator for the Secretary of State, an | 26 | | investigator for the Office of the Attorney General, an arson |
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| 1 | | investigator, a Commerce Commission police officer, | 2 | | investigator for the Department of Revenue or the
Illinois | 3 | | Gaming Board, a security employee of the Department of | 4 | | Corrections or the Department of Juvenile Justice, or a | 5 | | security employee of the Department of Innovation and | 6 | | Technology, as those terms are defined in subsection (b) and | 7 | | subsection (c) of Section 14-110. A person who meets the | 8 | | requirements of this Section is entitled to an annuity | 9 | | calculated under the provisions of Section 14-110, in lieu of | 10 | | the regular or minimum retirement annuity, only if the person | 11 | | has withdrawn from service with not less than 20
years of | 12 | | eligible creditable service and has attained age 60, | 13 | | regardless of whether
the attainment of age 60 occurs while | 14 | | the person is
still in service. | 15 | | (h) If a person who first becomes a member or a participant | 16 | | of a retirement system or pension fund subject to this Section | 17 | | on or after January 1, 2011 is receiving a retirement annuity | 18 | | or retirement pension under that system or fund and becomes a | 19 | | member or participant under any other system or fund created | 20 | | by this Code and is employed on a full-time basis, except for | 21 | | those members or participants exempted from the provisions of | 22 | | this Section under subsection (a) of this Section, then the | 23 | | person's retirement annuity or retirement pension under that | 24 | | system or fund shall be suspended during that employment. Upon | 25 | | termination of that employment, the person's retirement | 26 | | annuity or retirement pension payments shall resume and be |
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| 1 | | recalculated if recalculation is provided for under the | 2 | | applicable Article of this Code. | 3 | | If a person who first becomes a member of a retirement | 4 | | system or pension fund subject to this Section on or after | 5 | | January 1, 2012 and is receiving a retirement annuity or | 6 | | retirement pension under that system or fund and accepts on a | 7 | | contractual basis a position to provide services to a | 8 | | governmental entity from which he or she has retired, then | 9 | | that person's annuity or retirement pension earned as an | 10 | | active employee of the employer shall be suspended during that | 11 | | contractual service. A person receiving an annuity or | 12 | | retirement pension under this Code shall notify the pension | 13 | | fund or retirement system from which he or she is receiving an | 14 | | annuity or retirement pension, as well as his or her | 15 | | contractual employer, of his or her retirement status before | 16 | | accepting contractual employment. A person who fails to submit | 17 | | such notification shall be guilty of a Class A misdemeanor and | 18 | | required to pay a fine of $1,000. Upon termination of that | 19 | | contractual employment, the person's retirement annuity or | 20 | | retirement pension payments shall resume and, if appropriate, | 21 | | be recalculated under the applicable provisions of this Code. | 22 | | (i) (Blank). | 23 | | (j) In the case of a conflict between the provisions of | 24 | | this Section and any other provision of this Code, the | 25 | | provisions of this Section shall control.
| 26 | | (Source: P.A. 101-610, eff. 1-1-20; 102-16, eff. 6-17-21; |
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| 1 | | 102-210, eff. 1-1-22; 102-263, eff. 8-6-21; 102-956, eff. | 2 | | 5-27-22 .)
| 3 | | (40 ILCS 5/7-114) (from Ch. 108 1/2, par. 7-114)
| 4 | | Sec. 7-114. Earnings. "Earnings":
| 5 | | (a) An amount to be determined by the board, equal to the | 6 | | sum of:
| 7 | | 1. The total amount of money paid to an employee for | 8 | | personal
services or official duties as an employee | 9 | | (except those employed as
independent contractors) paid | 10 | | out of the general fund, or out of any
special funds | 11 | | controlled by the municipality, or by any instrumentality
| 12 | | thereof, or participating instrumentality, including | 13 | | compensation, fees,
allowances (but not including amounts | 14 | | associated with a vehicle allowance payable to an employee | 15 | | who first becomes a participating employee on or after the | 16 | | effective date of this amendatory Act of the 100th General | 17 | | Assembly), or other emolument paid for official duties | 18 | | (but not
including automobile maintenance, travel expense, | 19 | | or reimbursements for
expenditures incurred in the | 20 | | performance of duties) and, for fee
offices, the fees or | 21 | | earnings of the offices to the extent such fees are
paid | 22 | | out of funds controlled by the municipality, or | 23 | | instrumentality or
participating instrumentality; and
| 24 | | 2. The money value, as determined by rules prescribed | 25 | | by the
governing body of the municipality, or |
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| 1 | | instrumentality thereof, of any
board, lodging, fuel, | 2 | | laundry, and other allowances provided an employee
in lieu | 3 | | of money.
| 4 | | (b) For purposes of determining benefits payable under | 5 | | this fund
payments to a person who is engaged in an | 6 | | independently established
trade, occupation, profession or | 7 | | business and who is paid for his
service on a basis other than | 8 | | a monthly or other regular salary, are not
earnings.
| 9 | | (c) If a disabled participating employee is eligible to | 10 | | receive Workers'
Compensation for an accidental injury and the | 11 | | participating municipality or
instrumentality which employed | 12 | | the participating employee when injured
continues to pay the | 13 | | participating employee regular salary or other
compensation or | 14 | | pays the employee an amount in excess of the Workers'
| 15 | | Compensation amount, then earnings shall be deemed to be the | 16 | | total payments,
including an amount equal to the Workers' | 17 | | Compensation payments. These
payments shall be subject to | 18 | | employee contributions and allocated as if paid to
the | 19 | | participating employee when the regular payroll amounts would | 20 | | have been
paid if the participating employee had continued | 21 | | working, and creditable
service shall be awarded for this | 22 | | period.
| 23 | | (d) If an elected official who is a participating employee | 24 | | becomes disabled
but does not resign and is not removed from | 25 | | office, then earnings shall include
all salary payments made | 26 | | for the remainder of that term of office and the
official shall |
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| 1 | | be awarded creditable service for the term of office.
| 2 | | (e) If a participating employee is paid pursuant to "An | 3 | | Act to provide for
the continuation of compensation for law | 4 | | enforcement officers, correctional
officers and firemen who | 5 | | suffer disabling injury in the line of duty", approved
| 6 | | September 6, 1973, as amended, the payments shall be deemed | 7 | | earnings, and the
participating employee shall be awarded | 8 | | creditable service for this period.
| 9 | | (f) Additional compensation received by a person while | 10 | | serving as a
supervisor of assessments, assessor, deputy | 11 | | assessor or member of a board of
review from the State of | 12 | | Illinois pursuant to Section 4-10 or 4-15 of the
Property Tax | 13 | | Code shall not be
earnings for purposes of this Article and | 14 | | shall not be included in the
contribution formula or | 15 | | calculation of benefits for such person pursuant to
this | 16 | | Article.
| 17 | | (g) Notwithstanding any other provision of this Article, | 18 | | calendar year earnings for Tier 2 regular employees to whom | 19 | | this Section applies shall not exceed the amount determined by | 20 | | the Public Pension Division of the Department of Insurance as | 21 | | required in this subsection; however, that amount shall | 22 | | annually thereafter be increased by the lesser of (i) 3% of | 23 | | that amount, including all previous adjustments, or (ii) | 24 | | one-half the annual unadjusted percentage increase (but not | 25 | | less than zero) in the consumer price index-u for the 12 months | 26 | | ending with the September preceding each November 1, including |
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| 1 | | all previous adjustments ; except that beginning in 2024, for | 2 | | Tier 2 regular employees who are employees of an educational | 3 | | employer, that amount shall annually be increased by the | 4 | | greater of: (i) 3%; or (ii) the
annual unadjusted percentage | 5 | | increase in the consumer price
index-u for the 12 months | 6 | | ending with the September preceding
each November 1, including | 7 | | all previous adjustments . | 8 | | For the purposes of this Section, "consumer price index-u" | 9 | | means the index published by the Bureau of Labor Statistics of | 10 | | the United States Department of Labor that measures the | 11 | | average change in prices of goods and services purchased by | 12 | | all urban consumers, United States city average, all items, | 13 | | 1982-84 = 100. The new amount resulting from each annual | 14 | | adjustment shall be determined by the Public Pension Division | 15 | | of the Department of Insurance and made available to the Fund | 16 | | by November 1 of each year. | 17 | | For the purposes of Section 1-103.1 of this Code, the | 18 | | changes made to this Section, Section 7-141, and Section 7-142 | 19 | | by this amendatory Act of the 103rd General Assembly are | 20 | | applicable without regard to whether the Tier 2 regular | 21 | | employee was in active service on or after the effective date | 22 | | of this amendatory Act of the 103rd General Assembly. | 23 | | (Source: P.A. 102-210, eff. 1-1-22 .)
| 24 | | (40 ILCS 5/7-116) (from Ch. 108 1/2, par. 7-116)
| 25 | | Sec. 7-116. "Final rate of earnings":
|
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| 1 | | (a) For retirement and survivor annuities, the monthly | 2 | | earnings obtained
by dividing the total earnings received by | 3 | | the employee during the period of
either (1) for Tier 1 regular | 4 | | employees, the 48 consecutive months of service within the | 5 | | last 120 months of
service in which his total earnings were the | 6 | | highest, (2) for Tier 2 regular employees who are not | 7 | | employees of an educational employer , the 96 consecutive
| 8 | | months of service within the last 120 months of service in
| 9 | | which his total earnings were the highest, (3) for Tier 2 | 10 | | regular employees who are employees of an educational | 11 | | employer, the 72 consecutive
months of service within the last | 12 | | 120 months of service in
which total earnings were the | 13 | | highest, or (4) (3) the
employee's total period of service, by | 14 | | the number of months
of service in such period.
| 15 | | (b) For death benefits, the higher of the rate determined | 16 | | under
paragraph (a) of this Section or total earnings received | 17 | | in the last 12 months
of service divided by twelve. If the | 18 | | deceased employee has less than 12 months
of service, the | 19 | | monthly final rate shall be the monthly rate of pay the
| 20 | | employee was receiving when he began service.
| 21 | | (c) For disability benefits, the total earnings of a | 22 | | participating
employee in the last 12 calendar months of | 23 | | service prior to the date he
becomes disabled divided by 12.
| 24 | | (d) In computing the final rate of earnings: (1) the | 25 | | earnings rate for
all periods of prior service shall be | 26 | | considered equal to the average
earnings rate for the last 3 |
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| 1 | | calendar years of prior service for
which creditable service | 2 | | is received under Section 7-139 or, if there is less than 3 | 3 | | years of
creditable prior service, the average for the total | 4 | | prior service period
for which creditable service is received | 5 | | under Section 7-139; (2) for out
of state service and | 6 | | authorized
leave, the earnings rate shall be the rate upon | 7 | | which service credits are
granted; (3) periods of military | 8 | | leave shall not be considered; (4) the
earnings rate for all | 9 | | periods of disability shall be considered equal to
the rate of | 10 | | earnings upon which the employee's disability benefits are
| 11 | | computed for such periods; (5) the earnings to be considered | 12 | | for each of
the final three months of the final earnings period | 13 | | for persons who first became participants before January 1, | 14 | | 2012 and the earnings to be considered for each of the final 24 | 15 | | months for participants who first become participants on or | 16 | | after January 1, 2012 shall not exceed 125%
of the highest | 17 | | earnings of any other month in the final earnings period;
and | 18 | | (6) the annual amount of final rate of earnings shall be the | 19 | | monthly
amount multiplied by the number of months of service | 20 | | normally required by
the position in a year.
| 21 | | (Source: P.A. 102-210, eff. 1-1-22 .)
| 22 | | (40 ILCS 5/7-141) (from Ch. 108 1/2, par. 7-141)
| 23 | | Sec. 7-141. Retirement annuities; conditions. Retirement | 24 | | annuities shall be payable as hereinafter set forth:
| 25 | | (a) A participating employee who, regardless of cause, is |
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| 1 | | separated
from the service of all participating municipalities | 2 | | and
instrumentalities thereof and participating | 3 | | instrumentalities shall be
entitled to a retirement annuity | 4 | | provided:
| 5 | | 1. He is at least age 55 if he is a Tier 1 regular | 6 | | employee ; , he is age 62 if he is a Tier 2 regular employee ; | 7 | | he is age 60 if he has at least 35 years of creditable | 8 | | service, is a Tier 2 regular employee, and is an employee | 9 | | of an educational employer; , or, in the case of a person | 10 | | who is eligible
to have his annuity calculated under | 11 | | Section 7-142.1, he is at least age 50;
| 12 | | 2. He is not entitled to receive earnings for | 13 | | employment in a position requiring him, or entitling him | 14 | | to elect, to be a participating employee;
| 15 | | 3. The amount of his annuity, before the application | 16 | | of paragraph (b) of
Section 7-142 is at least $10 per | 17 | | month;
| 18 | | 4. If he first became a participating employee after | 19 | | December 31,
1961 and is a Tier 1 regular employee, he has | 20 | | at least 8 years of service, or, if he is a Tier 2 regular | 21 | | member, he has at least 10 years of service. This service | 22 | | requirement shall not
apply to any participating employee, | 23 | | regardless of participation date, if the
General Assembly | 24 | | terminates the Fund.
| 25 | | (b) Retirement annuities shall be payable:
| 26 | | 1. As provided in Section 7-119;
|
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| 1 | | 2. Except as provided in item 3, upon receipt by the | 2 | | fund of a written
application. The effective date may be | 3 | | not more than one
year prior to the date of the receipt by | 4 | | the fund of the application;
| 5 | | 3. Upon attainment of the required age of distribution | 6 | | under Section 401(a)(9) of the Internal Revenue Code of | 7 | | 1986, as amended, if the member (i) is no longer in
| 8 | | service,
and (ii) is otherwise entitled to an annuity | 9 | | under this Article;
| 10 | | 4. To the beneficiary of the deceased annuitant for | 11 | | the unpaid amount
accrued to date of death, if any.
| 12 | | (Source: P.A. 102-210, Article 5, Section 5-5, eff. 7-30-21; | 13 | | 102-210, Article 10, Section 10-5, eff. 1-1-22; 102-813, eff. | 14 | | 5-13-22.)
| 15 | | (40 ILCS 5/7-142) (from Ch. 108 1/2, par. 7-142) | 16 | | Sec. 7-142. Retirement annuities; amount annuities - | 17 | | Amount . | 18 | | (a) The amount of a retirement annuity shall be the sum of | 19 | | the
following, determined in accordance with the actuarial | 20 | | tables in effect at
the time of the grant of the annuity: | 21 | | 1. For Tier 1 regular employees with 8 or more years of | 22 | | service or for Tier 2 regular employees, an annuity
| 23 | | computed pursuant to subparagraphs a or b of this | 24 | | subparagraph 1,
whichever is the higher, and for employees | 25 | | with less than 8 or 10 years of
service, respectively, the |
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| 1 | | annuity computed pursuant to subparagraph a: | 2 | | a. The monthly annuity which can be provided from | 3 | | the total
accumulated normal, municipality and prior | 4 | | service credits, as of the
attained age of the | 5 | | employee on the date the annuity begins provided
that | 6 | | such annuity shall not exceed 75% of the final rate of | 7 | | earnings of
the employee. | 8 | | b. (i) The monthly annuity amount determined as | 9 | | follows by
multiplying (a) 1 2/3% for annuitants with | 10 | | not more than 15 years or (b)
1 2/3% for the first 15 | 11 | | years and 2% for each year in excess of 15 years
for | 12 | | annuitants with more than 15 years by the number of | 13 | | years plus
fractional years, prorated on a basis of | 14 | | months, of creditable service
and multiply the product | 15 | | thereof by the employee's final rate of earnings. | 16 | | (ii) For the sole purpose of computing the formula | 17 | | (and not for the
purposes of the limitations | 18 | | hereinafter stated) $125 shall be considered
the final | 19 | | rate of earnings in all cases where the final rate of | 20 | | earnings
is less than such amount. | 21 | | (iii) The monthly annuity computed in accordance | 22 | | with this
subparagraph b, shall not exceed an amount | 23 | | equal to 75% of the final
rate of earnings. | 24 | | (iv) For employees who have less than 35 years of | 25 | | service, the
annuity computed in accordance with this | 26 | | subparagraph b (as reduced by
application of |
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| 1 | | subparagraph (iii)
above) shall be reduced by 0.25% | 2 | | thereof (0.5% if service was terminated
before January | 3 | | 1, 1988 or if the employee is a Tier 2 regular | 4 | | employee) for each month or fraction thereof (1) that | 5 | | the
employee's age is less than 60 years for Tier 1 | 6 | | regular employees, (2) that the employee's age is less | 7 | | than 67 years for Tier 2 regular employees, or (3) if | 8 | | the employee has at least
30 years of service credit, | 9 | | that the employee's service credit is less than
35 | 10 | | years, whichever is less, on the date the annuity | 11 | | begins. The following persons are not subject to this | 12 | | subparagraph (iv): a Tier 2 regular employee who is an | 13 | | employee of an educational employer, has attained age | 14 | | 60, and has at least 35 years of creditable service; | 15 | | and a Tier 2 regular employee who is an employee of an | 16 | | educational employer, has attained age 62, and has at | 17 | | least 10 years of creditable service. | 18 | | 2. The annuity which can be provided from the total | 19 | | accumulated
additional credits as of the attained age of | 20 | | the employee on the date
the annuity begins. | 21 | | (b) If payment of an annuity begins prior to the earliest | 22 | | age at
which the employee will become eligible for an old age | 23 | | insurance benefit
under the Federal Social Security Act, he | 24 | | may elect that the annuity
payments from this fund shall | 25 | | exceed those payable after his attaining
such age by an | 26 | | amount, computed as determined by rules of the Board, but
not |
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| 1 | | in excess of his estimated Social Security Benefit, determined | 2 | | as
of the effective date of the annuity, provided that in no | 3 | | case shall the
total annuity payments made by this fund exceed | 4 | | in actuarial value the
annuity which would have been payable | 5 | | had no such election been made. | 6 | | (c) Beginning
January 1, 1984 and each January 1 | 7 | | thereafter, the retirement annuity of a Tier 1 regular | 8 | | employee shall be increased
by 3% each year, not compounded. | 9 | | This increase shall be computed from the effective date of the | 10 | | retirement annuity, the first increase being 0.25% of the | 11 | | monthly amount times the number of months from the effective | 12 | | date to January 1. This increase shall not be applicable to
| 13 | | annuitants who are not in service on or after September 8, | 14 | | 1971. | 15 | | A retirement annuity of a Tier 2 regular employee shall | 16 | | receive annual increases on the January 1 occurring either on | 17 | | or after the attainment of age 67 or the first anniversary of | 18 | | the annuity start date, whichever is later. Each annual | 19 | | increase shall be calculated at the lesser of 3% or one-half | 20 | | the annual unadjusted percentage increase (but not less than | 21 | | zero) in the consumer price index-u for the 12 months ending | 22 | | with the September preceding each November 1 of the originally | 23 | | granted retirement annuity ; except that each annual increase | 24 | | to the retirement annuity of a Tier 2 regular employee who was | 25 | | an employee of an educational employer shall be calculated at | 26 | | the greater of 3% or one-half the annual unadjusted percentage |
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| 1 | | increase (but not less than zero) in the consumer price | 2 | | index-u for the 12 months ending with the September preceding | 3 | | each November 1 of the originally granted retirement annuity . | 4 | | If the annual unadjusted percentage change in the consumer | 5 | | price index-u for the 12 months ending with the September | 6 | | preceding each November 1 is zero or there is a decrease, then | 7 | | the annuity shall not be increased. | 8 | | (d) Any elected county officer who was entitled to receive | 9 | | a stipend from the State on or after July 1, 2009 and on or | 10 | | before June 30, 2010 may establish earnings credit for the | 11 | | amount of stipend not received, if the elected county official | 12 | | applies in writing to the fund within 6 months after the | 13 | | effective date of this amendatory Act of the 96th General | 14 | | Assembly and pays to the fund an amount equal to (i) employee | 15 | | contributions on the amount of stipend not received, (ii) | 16 | | employer contributions determined by the Board equal to the | 17 | | employer's normal cost of the benefit on the amount of stipend | 18 | | not received, plus (iii) interest on items (i) and (ii) at the | 19 | | actuarially assumed rate. | 20 | | (Source: P.A. 102-210, eff. 1-1-22 .)
| 21 | | (40 ILCS 5/15-111) (from Ch. 108 1/2, par. 15-111)
| 22 | | Sec. 15-111. Earnings.
| 23 | | (a) "Earnings": Subject to Section 15-111.5, an amount | 24 | | paid for personal services equal to the sum of
the basic | 25 | | compensation plus extra compensation for summer teaching,
|
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| 1 | | overtime or other extra service. For periods for which an | 2 | | employee receives
service credit under subsection (c) of | 3 | | Section 15-113.1 or Section 15-113.2,
earnings are equal to | 4 | | the basic compensation on which contributions are
paid by the | 5 | | employee during such periods. Compensation for employment | 6 | | which is
irregular, intermittent and temporary shall not be | 7 | | considered earnings, unless
the participant is also receiving | 8 | | earnings from the employer as an employee
under Section | 9 | | 15-107.
| 10 | | With respect to transition pay paid by the University of | 11 | | Illinois to a
person who was a participating employee employed | 12 | | in the fire department of
the University of Illinois's | 13 | | Champaign-Urbana campus immediately prior to
the elimination | 14 | | of that fire department:
| 15 | | (1) "Earnings" includes transition pay paid to the | 16 | | employee on or after
the effective date of this amendatory | 17 | | Act of the 91st General Assembly.
| 18 | | (2) "Earnings" includes transition pay paid to the | 19 | | employee before the
effective date of this amendatory Act | 20 | | of the 91st General Assembly only if (i)
employee | 21 | | contributions under Section 15-157 have been withheld from | 22 | | that
transition pay or (ii) the employee pays to the | 23 | | System before January 1, 2001
an amount representing | 24 | | employee contributions under Section 15-157 on that
| 25 | | transition pay. Employee contributions under item (ii) may | 26 | | be paid in a lump
sum, by withholding from additional |
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| 1 | | transition pay accruing before January 1,
2001, or in any | 2 | | other manner approved by the System. Upon payment of the
| 3 | | employee contributions on transition pay, the | 4 | | corresponding employer
contributions become an obligation | 5 | | of the State.
| 6 | | (b) For a Tier 2 member, the annual earnings shall not | 7 | | exceed $106,800; however, that amount shall annually | 8 | | thereafter be increased by the lesser of (i) 3% of that amount, | 9 | | including all previous adjustments, or (ii) one half the | 10 | | annual unadjusted percentage increase (but not less than zero) | 11 | | in the consumer price index-u for the 12 months ending with the | 12 | | September preceding each November 1, including all previous | 13 | | adjustments ;
except that beginning in 2024, that amount shall
| 14 | | annually be increased by the greater of: (i) 3% of that amount; | 15 | | or (ii) the
annual unadjusted percentage increase in the | 16 | | consumer price
index-u for the 12 months ending with the | 17 | | September preceding
each November 1, including all previous | 18 | | adjustments . | 19 | | For the purposes of this Section, "consumer price index u" | 20 | | means the index published by the Bureau of Labor Statistics of | 21 | | the United States Department of Labor that measures the | 22 | | average change in prices of goods and services purchased by | 23 | | all urban consumers, United States city average, all items, | 24 | | 1982-84 = 100. The new amount resulting from each annual | 25 | | adjustment shall be determined by the Public Pension Division | 26 | | of the Department of Insurance and made available to the |
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| 1 | | boards of the retirement systems and pension funds by November | 2 | | 1 of each year. | 3 | | For the purposes of Section 1-103.1 of this Code, the | 4 | | changes made to this Section, Section 15-135, and Section | 5 | | 15-136 by this amendatory Act of the 103rd General Assembly | 6 | | are applicable without regard to whether the employee was in | 7 | | active service on or after the effective date of this | 8 | | amendatory Act of the 103rd General Assembly. | 9 | | (c) With each submission of payroll information in the | 10 | | manner prescribed by the System, the
employer shall certify | 11 | | that the payroll information is correct and complies with all | 12 | | applicable
State and federal laws. | 13 | | (Source: P.A. 98-92, eff. 7-16-13; 99-897, eff. 1-1-17 .)
| 14 | | (40 ILCS 5/15-112) (from Ch. 108 1/2, par. 15-112)
| 15 | | Sec. 15-112. Final rate of earnings. "Final rate of | 16 | | earnings": | 17 | | (a) This subsection (a) applies only to a Tier 1 member. | 18 | | For an employee who is paid on an hourly basis or who | 19 | | receives an annual salary
in installments during 12 months of | 20 | | each academic year, the average annual
earnings during the 48 | 21 | | consecutive calendar month period ending with the last
day of | 22 | | final termination of employment or the 4 consecutive academic | 23 | | years of
service in which the employee's earnings were the | 24 | | highest, whichever is
greater.
For any other employee, the | 25 | | average annual earnings during the 4 consecutive
academic |
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| 1 | | years of service in which his or her earnings were the highest.
| 2 | | For an employee with less than 48 months or 4 consecutive | 3 | | academic years of
service, the average earnings during his or | 4 | | her entire period of service.
The earnings of an employee with | 5 | | more than 36 months of service under item (a) of Section | 6 | | 15-113.1 prior to the
date of becoming a participant are, for | 7 | | such period, considered equal to the
average earnings during | 8 | | the last 36 months of such service. | 9 | | (b) This subsection (b) applies to a Tier 2 member. | 10 | | For an employee who is paid on an hourly basis or who | 11 | | receives an annual salary in installments during 12 months of | 12 | | each academic year, the average annual earnings obtained by | 13 | | dividing by 6 8 the total earnings of the employee during the | 14 | | 72 96 consecutive months in which the total earnings were the | 15 | | highest within the last 120 months prior to termination. | 16 | | For any other employee, the average annual earnings during | 17 | | the 6 8 consecutive academic years within the 10 years prior to | 18 | | termination in which the employee's earnings were the highest. | 19 | | For an employee with less than 72 96 consecutive months or 6 8 | 20 | | consecutive academic years of service, whichever is necessary, | 21 | | the average earnings during his or her entire period of | 22 | | service. | 23 | | (c) For an
employee on leave of absence with pay, or on | 24 | | leave of absence without pay
who makes contributions during | 25 | | such leave, earnings are assumed to be equal
to the basic | 26 | | compensation on the date the leave began. |
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| 1 | | (d) For an employee on
disability leave, earnings are | 2 | | assumed to be equal to the basic compensation
on the date | 3 | | disability occurs or the average earnings during the 24 months
| 4 | | immediately preceding the month in which disability occurs, | 5 | | whichever is
greater.
| 6 | | (e) For a Tier 1 member who retires on or after the | 7 | | effective date of this
amendatory Act of 1997 with at least 20 | 8 | | years of service as a firefighter or
police officer under this | 9 | | Article, the final rate of earnings shall be the
annual rate of | 10 | | earnings received by the participant on his or her last day as | 11 | | a
firefighter or police officer under this Article, if that is | 12 | | greater than the
final rate of earnings as calculated under | 13 | | the other provisions of this
Section.
| 14 | | (f) If a Tier 1 member is an employee for at least
6 months | 15 | | during the academic year in which his or her employment
is | 16 | | terminated, the annual final rate of earnings shall be 25% of | 17 | | the sum
of (1) the annual basic compensation for that year, and | 18 | | (2) the amount
earned during the 36 months immediately | 19 | | preceding that year, if this is
greater than the final rate of | 20 | | earnings as calculated under the other
provisions of this | 21 | | Section.
| 22 | | (g) In the determination of the final rate of earnings for | 23 | | an employee, that
part of an employee's earnings for any | 24 | | academic year beginning after June 30,
1997, which exceeds the | 25 | | employee's earnings with that employer for the
preceding year | 26 | | by more than 20 percent shall be excluded; in the event
that an |
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| 1 | | employee has more than one employer
this limitation shall be | 2 | | calculated separately for the earnings with
each employer. In | 3 | | making such calculation, only the basic compensation of
| 4 | | employees shall be considered, without regard to vacation or | 5 | | overtime or to
contracts for summer employment.
| 6 | | (h) The following are not considered as earnings in | 7 | | determining final rate of
earnings: (1) severance or | 8 | | separation pay, (2) retirement pay, (3)
payment for unused | 9 | | sick leave, and (4) payments from an employer for
the period | 10 | | used in determining final rate of earnings for any purpose | 11 | | other
than (i) services rendered, (ii) leave of absence or | 12 | | vacation granted
during that period, and (iii) vacation of up | 13 | | to 56 work days allowed upon
termination of employment; except | 14 | | that, if the benefit has been collectively
bargained between | 15 | | the employer and the recognized collective bargaining agent
| 16 | | pursuant to the Illinois Educational Labor Relations Act, | 17 | | payment received
during a period of up to 2 academic years for | 18 | | unused sick leave may be
considered as earnings in accordance | 19 | | with the applicable collective bargaining
agreement, subject | 20 | | to the 20% increase limitation of this Section. Any unused
| 21 | | sick leave considered as earnings under this Section shall not | 22 | | be taken into
account in calculating service credit under | 23 | | Section 15-113.4.
| 24 | | (i) Intermittent periods of service shall be considered as | 25 | | consecutive in
determining final rate of earnings.
| 26 | | (Source: P.A. 98-92, eff. 7-16-13; 99-450, eff. 8-24-15.)
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| 1 | | (40 ILCS 5/15-135) (from Ch. 108 1/2, par. 15-135)
| 2 | | Sec. 15-135. Retirement annuities; conditions.
| 3 | | (a) This subsection (a) applies only to a Tier 1 member. A | 4 | | participant who retires in one of the following specified | 5 | | years with
the specified amount of service is entitled to a | 6 | | retirement annuity at any age
under the retirement program | 7 | | applicable to the participant:
| 8 | | 35 years if retirement is in 1997 or before;
| 9 | | 34 years if retirement is in 1998;
| 10 | | 33 years if retirement is in 1999;
| 11 | | 32 years if retirement is in 2000;
| 12 | | 31 years if retirement is in 2001;
| 13 | | 30 years if retirement is in 2002 or later.
| 14 | | A participant with 8 or more years of service after | 15 | | September 1, 1941, is
entitled to a retirement annuity on or | 16 | | after attainment of age 55.
| 17 | | A participant with at least 5 but less than 8 years
of | 18 | | service after September 1, 1941, is entitled to a retirement | 19 | | annuity on
or after attainment of age 62.
| 20 | | A participant who has at least 25 years of service in this | 21 | | system as a
police officer or firefighter is entitled to a | 22 | | retirement
annuity on or after the attainment of age 50, if | 23 | | Rule 4 of Section
15-136 is applicable to the participant.
| 24 | | (a-5) A Tier 2 member is entitled to a retirement annuity | 25 | | upon written application if he or she has attained age 60; has |
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| 1 | | at least 35 years of service credit; and is otherwise eligible | 2 | | under the requirements of this Article. | 3 | | A Tier 2 member is entitled to a retirement annuity upon | 4 | | written application if he or she has attained age 62; has at | 5 | | least 10 years of service credit; and is otherwise eligible | 6 | | under the requirements of this Article. | 7 | | A Tier 2 member is entitled to a retirement annuity upon | 8 | | written application if he or she has attained age 67 and has at | 9 | | least 10 years of service credit and is otherwise eligible | 10 | | under the requirements of this Article. A Tier 2 member who has | 11 | | attained age 62 and has at least 10 years of service credit and | 12 | | is otherwise eligible under the requirements of this Article | 13 | | may elect to receive the lower retirement annuity provided in | 14 | | subsection (b-5) of Section 15-136 of this Article. | 15 | | (a-10) A Tier 2 member who has at least 20 years of service | 16 | | in this system as a police officer or firefighter is entitled | 17 | | to a retirement annuity upon written application on or after | 18 | | the attainment of age 60 if Rule 4 of Section 15-136 is | 19 | | applicable to the participant. The changes made to this | 20 | | subsection by this amendatory Act of the 101st General | 21 | | Assembly apply retroactively to January 1, 2011. | 22 | | (b) The annuity payment period shall begin on the date | 23 | | specified by the
participant or the recipient of a disability | 24 | | retirement annuity submitting a written application. For a | 25 | | participant, the date on which the annuity payment period | 26 | | begins shall not be prior
to termination of employment or more |
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| 1 | | than one year before the application is
received by the board; | 2 | | however, if the participant is not an employee of an
employer | 3 | | participating in this System or in a participating system as | 4 | | defined
in Article 20 of this Code on April 1 of the calendar | 5 | | year next following
the calendar year in which the participant | 6 | | attains the age specified under Section 401(a)(9) of the | 7 | | Internal Revenue Code of 1986, as amended, the annuity
payment | 8 | | period shall begin on that date regardless of whether an | 9 | | application
has been filed. For a recipient of a disability | 10 | | retirement annuity, the date on which the annuity payment | 11 | | period begins shall not be prior to the discontinuation of the | 12 | | disability retirement annuity under Section 15-153.2.
| 13 | | (c) An annuity is not payable if the amount provided under | 14 | | Section
15-136 is less than $10 per month.
| 15 | | (Source: P.A. 101-610, eff. 1-1-20; 102-210, eff. 7-30-21.)
| 16 | | (40 ILCS 5/15-136) (from Ch. 108 1/2, par. 15-136)
| 17 | | Sec. 15-136. Retirement annuities; amount annuities - | 18 | | Amount . The provisions of this
Section 15-136 apply only to | 19 | | those participants who are participating in the
traditional | 20 | | benefit package or the portable benefit package and do not
| 21 | | apply to participants who are participating in the | 22 | | self-managed plan.
| 23 | | (a) The amount of a participant's retirement annuity, | 24 | | expressed in the form
of a single-life annuity, shall be | 25 | | determined by whichever of the following
rules is applicable |
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| 1 | | and provides the largest annuity:
| 2 | | Rule 1: The retirement annuity shall be 1.67% of final | 3 | | rate of earnings for
each of the first 10 years of service, | 4 | | 1.90% for each of the next 10 years of
service, 2.10% for each | 5 | | year of service in excess of 20 but not exceeding 30,
and 2.30% | 6 | | for each year in excess of 30; or for persons who retire on or
| 7 | | after January 1, 1998, 2.2% of the final rate of earnings for | 8 | | each year of
service.
| 9 | | Rule 2: The retirement annuity shall be the sum of the | 10 | | following,
determined from amounts credited to the participant | 11 | | in accordance with the
actuarial tables and the effective rate | 12 | | of interest in effect at the
time the retirement annuity | 13 | | begins:
| 14 | | (i) the normal annuity which can be provided on an | 15 | | actuarially
equivalent basis, by the accumulated normal | 16 | | contributions as of
the date the annuity begins;
| 17 | | (ii) an annuity from employer contributions of an | 18 | | amount equal to that
which can be provided on an | 19 | | actuarially equivalent basis from the accumulated
normal | 20 | | contributions made by the participant under Section | 21 | | 15-113.6 and Section
15-113.7 plus 1.4 times all other | 22 | | accumulated normal contributions made by
the participant; | 23 | | and
| 24 | | (iii) the annuity that can be provided on an | 25 | | actuarially equivalent basis
from the entire contribution | 26 | | made by the participant under Section 15-113.3.
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| 1 | | With respect to a police officer or firefighter who | 2 | | retires on or after
August 14, 1998, the accumulated normal | 3 | | contributions taken into account under
clauses (i) and (ii) of | 4 | | this Rule 2 shall include the additional normal
contributions | 5 | | made by the police officer or firefighter under Section
| 6 | | 15-157(a).
| 7 | | The amount of a retirement annuity calculated under this | 8 | | Rule 2 shall
be computed solely on the basis of the | 9 | | participant's accumulated normal
contributions, as specified | 10 | | in this Rule and defined in Section 15-116.
Neither an | 11 | | employee or employer contribution for early retirement under
| 12 | | Section 15-136.2 nor any other employer contribution shall be | 13 | | used in the
calculation of the amount of a retirement annuity | 14 | | under this Rule 2.
| 15 | | This amendatory Act of the 91st General Assembly is a | 16 | | clarification of
existing law and applies to every participant | 17 | | and annuitant without regard to
whether status as an employee | 18 | | terminates before the effective date of this
amendatory Act.
| 19 | | This Rule 2 does not apply to a person who first becomes an | 20 | | employee under this Article on or after July 1, 2005.
| 21 | | Rule 3: The retirement annuity of a participant who is | 22 | | employed
at least one-half time during the period on which his | 23 | | or her final rate of
earnings is based, shall be equal to the | 24 | | participant's years of service
not to exceed 30, multiplied by | 25 | | (1) $96 if the participant's final rate
of earnings is less | 26 | | than $3,500, (2) $108 if the final rate of earnings is
at least |
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| 1 | | $3,500 but less than $4,500, (3) $120 if the final rate of | 2 | | earnings
is at least $4,500 but less than $5,500, (4) $132 if | 3 | | the final rate
of earnings is at least $5,500 but less than | 4 | | $6,500, (5)
$144 if the final rate of earnings is at least | 5 | | $6,500 but less than
$7,500, (6) $156 if the final rate of | 6 | | earnings is at least $7,500 but less
than $8,500, (7) $168 if | 7 | | the final rate of earnings is at least $8,500 but
less than | 8 | | $9,500, and (8) $180 if the final rate of earnings is $9,500 or
| 9 | | more, except that the annuity for those persons having made an | 10 | | election under
Section 15-154(a-1) shall be calculated and | 11 | | payable under the portable
retirement benefit program pursuant | 12 | | to the provisions of Section 15-136.4.
| 13 | | Rule 4: A participant who is at least age 50 and has 25 or | 14 | | more years of
service as a police officer or firefighter, and a | 15 | | participant who is age 55 or
over and has at least 20 but less | 16 | | than 25 years of service as a police officer
or firefighter, | 17 | | shall be entitled to a retirement annuity of 2 1/4% of the
| 18 | | final rate of earnings for each of the first 10 years of | 19 | | service as a police
officer or firefighter, 2 1/2% for each of | 20 | | the next 10 years of service as a
police officer or | 21 | | firefighter, and 2 3/4% for each year of service as a police
| 22 | | officer or firefighter in excess of 20. The retirement annuity | 23 | | for all other
service shall be computed under Rule 1. A Tier 2 | 24 | | member is eligible for a retirement annuity calculated under | 25 | | Rule 4 only if that Tier 2 member meets the service | 26 | | requirements for that benefit calculation as prescribed under |
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| 1 | | this Rule 4 in addition to the applicable age requirement | 2 | | under subsection (a-10) of Section 15-135.
| 3 | | For purposes of this Rule 4, a participant's service as a | 4 | | firefighter
shall also include the following:
| 5 | | (i) service that is performed while the person is an | 6 | | employee under
subsection (h) of Section 15-107; and
| 7 | | (ii) in the case of an individual who was a | 8 | | participating employee
employed in the fire department of | 9 | | the University of Illinois's
Champaign-Urbana campus | 10 | | immediately prior to the elimination of that fire
| 11 | | department and who immediately after the elimination of | 12 | | that fire department
transferred to another job with the | 13 | | University of Illinois, service performed
as an employee | 14 | | of the University of Illinois in a position other than | 15 | | police
officer or firefighter, from the date of that | 16 | | transfer until the employee's
next termination of service | 17 | | with the University of Illinois.
| 18 | | (b) For a Tier 1 member, the retirement annuity provided | 19 | | under Rules 1 and 3 above shall be
reduced by 1/2 of 1% for | 20 | | each month the participant is under age 60 at the
time of | 21 | | retirement. However, this reduction shall not apply in the | 22 | | following
cases:
| 23 | | (1) For a disabled participant whose disability | 24 | | benefits have been
discontinued because he or she has | 25 | | exhausted eligibility for disability
benefits under clause | 26 | | (6) of Section 15-152;
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| 1 | | (2) For a participant who has at least the number of | 2 | | years of service
required to retire at any age under | 3 | | subsection (a) of Section 15-135; or
| 4 | | (3) For that portion of a retirement annuity which has | 5 | | been provided on
account of service of the participant | 6 | | during periods when he or she performed
the duties of a | 7 | | police officer or firefighter, if these duties were | 8 | | performed
for at least 5 years immediately preceding the | 9 | | date the retirement annuity
is to begin.
| 10 | | (b-5) (Blank). The retirement annuity of a Tier 2 member | 11 | | who is retiring under Rule 1 or 3 after attaining age 62 with | 12 | | at least 10 years of service credit shall be reduced by 1/2 of | 13 | | 1% for each full month that the member's age is under age 67. | 14 | | (c) The maximum retirement annuity provided under Rules 1, | 15 | | 2, 4,
and 5
shall be the lesser of (1) the annual limit of | 16 | | benefits as specified in
Section 415 of the Internal Revenue | 17 | | Code of 1986, as such Section may be
amended from time to time | 18 | | and as such benefit limits shall be adjusted by
the | 19 | | Commissioner of Internal Revenue, and (2) 80% of final rate of
| 20 | | earnings.
| 21 | | (d) A Tier 1 member whose status as an employee terminates | 22 | | after August 14,
1969 shall receive automatic increases in his | 23 | | or her retirement annuity as
follows:
| 24 | | Effective January 1 immediately following the date the | 25 | | retirement annuity
begins, the annuitant shall receive an | 26 | | increase in his or her monthly
retirement annuity of 0.125% of |
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| 1 | | the monthly retirement annuity provided under
Rule 1, Rule 2, | 2 | | Rule 3, or Rule 4 contained in this
Section, multiplied by
the | 3 | | number of full months which elapsed from the date the | 4 | | retirement annuity
payments began to January 1, 1972, plus | 5 | | 0.1667% of such annuity, multiplied by
the number of full | 6 | | months which elapsed from January 1, 1972, or the date the
| 7 | | retirement annuity payments began, whichever is later, to | 8 | | January 1, 1978, plus
0.25% of such annuity multiplied by the | 9 | | number of full months which elapsed
from January 1, 1978, or | 10 | | the date the retirement annuity payments began,
whichever is | 11 | | later, to the effective date of the increase.
| 12 | | The annuitant shall receive an increase in his or her | 13 | | monthly retirement
annuity on each January 1 thereafter during | 14 | | the annuitant's life of 3% of
the monthly annuity provided | 15 | | under Rule 1, Rule 2, Rule 3, or Rule 4 contained
in this | 16 | | Section. The change made under this subsection by P.A. 81-970 | 17 | | is
effective January 1, 1980 and applies to each annuitant | 18 | | whose status as
an employee terminates before or after that | 19 | | date.
| 20 | | Beginning January 1, 1990, all automatic annual increases | 21 | | payable under
this Section shall be calculated as a percentage | 22 | | of the total annuity
payable at the time of the increase, | 23 | | including all increases previously
granted under this Article.
| 24 | | The change made in this subsection by P.A. 85-1008 is | 25 | | effective January
26, 1988, and is applicable without regard | 26 | | to whether status as an employee
terminated before that date.
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| 1 | | (d-5) A retirement annuity of a Tier 2 member shall | 2 | | receive annual increases on the January 1 occurring either on | 3 | | or after the attainment of age 67 or the first anniversary of | 4 | | the annuity start date, whichever is later. Each annual | 5 | | increase shall be calculated at 3% or one half the annual | 6 | | unadjusted percentage increase (but not less than zero) in the | 7 | | consumer price index-u for the 12 months ending with the | 8 | | September preceding each November 1, whichever is greater | 9 | | less , of the originally granted retirement annuity. If the | 10 | | annual unadjusted percentage change in the consumer price | 11 | | index-u for the 12 months ending with the September preceding | 12 | | each November 1 is zero or there is a decrease, then the | 13 | | annuity shall not be increased. | 14 | | (e) If, on January 1, 1987, or the date the retirement | 15 | | annuity payment
period begins, whichever is later, the sum of | 16 | | the retirement annuity
provided under Rule 1 or Rule 2 of this | 17 | | Section
and the automatic annual increases provided under the | 18 | | preceding subsection
or Section 15-136.1, amounts to less than | 19 | | the retirement
annuity which would be provided by Rule 3, the | 20 | | retirement
annuity shall be increased as of January 1, 1987, | 21 | | or the date the
retirement annuity payment period begins, | 22 | | whichever is later, to the amount
which would be provided by | 23 | | Rule 3 of this Section. Such increased
amount shall be | 24 | | considered as the retirement annuity in determining
benefits | 25 | | provided under other Sections of this Article. This paragraph
| 26 | | applies without regard to whether status as an employee |
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| 1 | | terminated before the
effective date of this amendatory Act of | 2 | | 1987, provided that the annuitant was
employed at least | 3 | | one-half time during the period on which the final rate of
| 4 | | earnings was based.
| 5 | | (f) A participant is entitled to such additional annuity | 6 | | as may be provided
on an actuarially equivalent basis, by any | 7 | | accumulated
additional contributions to his or her credit. | 8 | | However,
the additional contributions made by the participant | 9 | | toward the automatic
increases in annuity provided under this | 10 | | Section shall not be taken into
account in determining the | 11 | | amount of such additional annuity.
| 12 | | (g) If, (1) by law, a function of a governmental unit, as | 13 | | defined by Section
20-107 of this Code, is transferred in | 14 | | whole or in part to an employer, and (2)
a participant | 15 | | transfers employment from such governmental unit to such | 16 | | employer
within 6 months after the transfer of the function, | 17 | | and (3) the sum of (A) the
annuity payable to the participant | 18 | | under Rule 1, 2, or 3 of this Section (B)
all proportional | 19 | | annuities payable to the participant by all other retirement
| 20 | | systems covered by Article 20, and (C) the initial primary | 21 | | insurance amount to
which the participant is entitled under | 22 | | the Social Security Act, is less than
the retirement annuity | 23 | | which would have been payable if all of the
participant's | 24 | | pension credits validated under Section 20-109 had been | 25 | | validated
under this system, a supplemental annuity equal to | 26 | | the difference in such
amounts shall be payable to the |
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| 1 | | participant.
| 2 | | (h) On January 1, 1981, an annuitant who was receiving
a | 3 | | retirement annuity on or before January 1, 1971 shall have his | 4 | | or her
retirement annuity then being paid increased $1 per | 5 | | month for
each year of creditable service. On January 1, 1982, | 6 | | an annuitant whose
retirement annuity began on or before | 7 | | January 1, 1977, shall have his or her
retirement annuity then | 8 | | being paid increased $1 per month for each year of
creditable | 9 | | service.
| 10 | | (i) On January 1, 1987, any annuitant whose retirement | 11 | | annuity began on or
before January 1, 1977, shall have the | 12 | | monthly retirement annuity increased by
an amount equal to 8˘ | 13 | | per year of creditable service times the number of years
that | 14 | | have elapsed since the annuity began.
| 15 | | (j) The changes made to this Section by this amendatory | 16 | | Act of the 101st General Assembly apply retroactively to | 17 | | January 1, 2011. | 18 | | (Source: P.A. 101-610, eff. 1-1-20.)
| 19 | | (40 ILCS 5/15-198)
| 20 | | Sec. 15-198. Application and expiration of new benefit | 21 | | increases. | 22 | | (a) As used in this Section, "new benefit increase" means | 23 | | an increase in the amount of any benefit provided under this | 24 | | Article, or an expansion of the conditions of eligibility for | 25 | | any benefit under this Article, that results from an amendment |
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| 1 | | to this Code that takes effect after June 1, 2005 (the | 2 | | effective date of Public Act 94-4). "New benefit increase", | 3 | | however, does not include any benefit increase resulting from | 4 | | the changes made to Article 1 or this Article by Public Act | 5 | | 100-23, Public Act 100-587, Public Act 100-769, Public Act | 6 | | 101-10, Public Act 101-610, Public Act 102-16, or this | 7 | | amendatory Act of the 103rd General Assembly or this | 8 | | amendatory Act of the 102nd General Assembly . | 9 | | (b) Notwithstanding any other provision of this Code or | 10 | | any subsequent amendment to this Code, every new benefit | 11 | | increase is subject to this Section and shall be deemed to be | 12 | | granted only in conformance with and contingent upon | 13 | | compliance with the provisions of this Section.
| 14 | | (c) The Public Act enacting a new benefit increase must | 15 | | identify and provide for payment to the System of additional | 16 | | funding at least sufficient to fund the resulting annual | 17 | | increase in cost to the System as it accrues. | 18 | | Every new benefit increase is contingent upon the General | 19 | | Assembly providing the additional funding required under this | 20 | | subsection. The Commission on Government Forecasting and | 21 | | Accountability shall analyze whether adequate additional | 22 | | funding has been provided for the new benefit increase and | 23 | | shall report its analysis to the Public Pension Division of | 24 | | the Department of Insurance. A new benefit increase created by | 25 | | a Public Act that does not include the additional funding | 26 | | required under this subsection is null and void. If the Public |
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| 1 | | Pension Division determines that the additional funding | 2 | | provided for a new benefit increase under this subsection is | 3 | | or has become inadequate, it may so certify to the Governor and | 4 | | the State Comptroller and, in the absence of corrective action | 5 | | by the General Assembly, the new benefit increase shall expire | 6 | | at the end of the fiscal year in which the certification is | 7 | | made.
| 8 | | (d) Every new benefit increase shall expire 5 years after | 9 | | its effective date or on such earlier date as may be specified | 10 | | in the language enacting the new benefit increase or provided | 11 | | under subsection (c). This does not prevent the General | 12 | | Assembly from extending or re-creating a new benefit increase | 13 | | by law. | 14 | | (e) Except as otherwise provided in the language creating | 15 | | the new benefit increase, a new benefit increase that expires | 16 | | under this Section continues to apply to persons who applied | 17 | | and qualified for the affected benefit while the new benefit | 18 | | increase was in effect and to the affected beneficiaries and | 19 | | alternate payees of such persons, but does not apply to any | 20 | | other person, including, without limitation, a person who | 21 | | continues in service after the expiration date and did not | 22 | | apply and qualify for the affected benefit while the new | 23 | | benefit increase was in effect.
| 24 | | (Source: P.A. 101-10, eff. 6-5-19; 101-81, eff. 7-12-19; | 25 | | 101-610, eff. 1-1-20; 102-16, eff. 6-17-21.) |
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| 1 | | (40 ILCS 5/16-203)
| 2 | | Sec. 16-203. Application and expiration of new benefit | 3 | | increases. | 4 | | (a) As used in this Section, "new benefit increase" means | 5 | | an increase in the amount of any benefit provided under this | 6 | | Article, or an expansion of the conditions of eligibility for | 7 | | any benefit under this Article, that results from an amendment | 8 | | to this Code that takes effect after June 1, 2005 (the | 9 | | effective date of Public Act 94-4). "New benefit increase", | 10 | | however, does not include any benefit increase resulting from | 11 | | the changes made to Article 1 or this Article by Public Act | 12 | | 95-910, Public Act 100-23, Public Act 100-587, Public Act | 13 | | 100-743, Public Act 100-769, Public Act 101-10, Public Act | 14 | | 101-49, Public Act 102-16, Public Act 102-871, or this | 15 | | amendatory Act of the 103rd General Assembly or Public Act | 16 | | 102-16 this amendatory Act of the 102nd General Assembly . | 17 | | (b) Notwithstanding any other provision of this Code or | 18 | | any subsequent amendment to this Code, every new benefit | 19 | | increase is subject to this Section and shall be deemed to be | 20 | | granted only in conformance with and contingent upon | 21 | | compliance with the provisions of this Section.
| 22 | | (c) The Public Act enacting a new benefit increase must | 23 | | identify and provide for payment to the System of additional | 24 | | funding at least sufficient to fund the resulting annual | 25 | | increase in cost to the System as it accrues. | 26 | | Every new benefit increase is contingent upon the General |
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| 1 | | Assembly providing the additional funding required under this | 2 | | subsection. The Commission on Government Forecasting and | 3 | | Accountability shall analyze whether adequate additional | 4 | | funding has been provided for the new benefit increase and | 5 | | shall report its analysis to the Public Pension Division of | 6 | | the Department of Insurance. A new benefit increase created by | 7 | | a Public Act that does not include the additional funding | 8 | | required under this subsection is null and void. If the Public | 9 | | Pension Division determines that the additional funding | 10 | | provided for a new benefit increase under this subsection is | 11 | | or has become inadequate, it may so certify to the Governor and | 12 | | the State Comptroller and, in the absence of corrective action | 13 | | by the General Assembly, the new benefit increase shall expire | 14 | | at the end of the fiscal year in which the certification is | 15 | | made.
| 16 | | (d) Every new benefit increase shall expire 5 years after | 17 | | its effective date or on such earlier date as may be specified | 18 | | in the language enacting the new benefit increase or provided | 19 | | under subsection (c). This does not prevent the General | 20 | | Assembly from extending or re-creating a new benefit increase | 21 | | by law. | 22 | | (e) Except as otherwise provided in the language creating | 23 | | the new benefit increase, a new benefit increase that expires | 24 | | under this Section continues to apply to persons who applied | 25 | | and qualified for the affected benefit while the new benefit | 26 | | increase was in effect and to the affected beneficiaries and |
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| 1 | | alternate payees of such persons, but does not apply to any | 2 | | other person, including, without limitation, a person who | 3 | | continues in service after the expiration date and did not | 4 | | apply and qualify for the affected benefit while the new | 5 | | benefit increase was in effect.
| 6 | | (Source: P.A. 101-10, eff. 6-5-19; 101-49, eff. 7-12-19; | 7 | | 101-81, eff. 7-12-19; 102-16, eff. 6-17-21; 102-558, eff. | 8 | | 8-20-21; 102-813, eff. 5-13-22; 102-871, eff. 5-13-22; revised | 9 | | 7-26-22.) | 10 | | Section 90. The State Mandates Act is amended by adding | 11 | | Section 8.47 as follows: | 12 | | (30 ILCS 805/8.47 new) | 13 | | Sec. 8.47. Exempt mandate. Notwithstanding Sections 6 and | 14 | | 8 of this Act, no reimbursement by the State is required for | 15 | | the implementation of any mandate created by this amendatory | 16 | | Act of the 103rd General Assembly.
| 17 | | Section 99. Effective date. This Act takes effect upon | 18 | | becoming law.
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