Public Act 100-1166
 
HB0166 EnrolledLRB100 02316 RPS 12321 b

    AN ACT concerning public employee benefits.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 5. The Illinois Pension Code is amended by changing
Sections 1-160, 8-174, 11-170, and 11-197.7 as follows:
 
    (40 ILCS 5/1-160)
    Sec. 1-160. Provisions applicable to new hires.
    (a) The provisions of this Section apply to a person who,
on or after January 1, 2011, first becomes a member or a
participant under any reciprocal retirement system or pension
fund established under this Code, other than a retirement
system or pension fund established under Article 2, 3, 4, 5, 6,
15 or 18 of this Code, notwithstanding any other provision of
this Code to the contrary, but do not apply to any self-managed
plan established under this Code, to any person with respect to
service as a sheriff's law enforcement employee under Article
7, or to any participant of the retirement plan established
under Section 22-101. Notwithstanding anything to the contrary
in this Section, for purposes of this Section, a person who
participated in a retirement system under Article 15 prior to
January 1, 2011 shall be deemed a person who first became a
member or participant prior to January 1, 2011 under any
retirement system or pension fund subject to this Section. The
changes made to this Section by Public Act 98-596 are a
clarification of existing law and are intended to be
retroactive to January 1, 2011 (the effective date of Public
Act 96-889), notwithstanding the provisions of Section 1-103.1
of this Code.
    This Section does not apply to a person who first becomes a
noncovered employee under Article 14 on or after the
implementation date of the plan created under Section 1-161 for
that Article, unless that person elects under subsection (b) of
Section 1-161 to instead receive the benefits provided under
this Section and the applicable provisions of that Article.
    This Section does not apply to a person who first becomes a
member or participant under Article 16 on or after the
implementation date of the plan created under Section 1-161 for
that Article, unless that person elects under subsection (b) of
Section 1-161 to instead receive the benefits provided under
this Section and the applicable provisions of that Article.
    This Section does not apply to a person who elects under
subsection (c-5) of Section 1-161 to receive the benefits under
Section 1-161.
    This Section does not apply to a person who first becomes a
member or participant of an affected pension fund on or after 6
months after the resolution or ordinance date, as defined in
Section 1-162, unless that person elects under subsection (c)
of Section 1-162 to receive the benefits provided under this
Section and the applicable provisions of the Article under
which he or she is a member or participant.
    (b) "Final average salary" means the average monthly (or
annual) salary obtained by dividing the total salary or
earnings calculated under the Article applicable to the member
or participant during the 96 consecutive months (or 8
consecutive years) of service within the last 120 months (or 10
years) of service in which the total salary or earnings
calculated under the applicable Article was the highest by the
number of months (or years) of service in that period. For the
purposes of a person who first becomes a member or participant
of any retirement system or pension fund to which this Section
applies on or after January 1, 2011, in this Code, "final
average salary" shall be substituted for the following:
        (1) In Article 7 (except for service as sheriff's law
    enforcement employees), "final rate of earnings".
        (2) In Articles 8, 9, 10, 11, and 12, "highest average
    annual salary for any 4 consecutive years within the last
    10 years of service immediately preceding the date of
    withdrawal".
        (3) In Article 13, "average final salary".
        (4) In Article 14, "final average compensation".
        (5) In Article 17, "average salary".
        (6) In Section 22-207, "wages or salary received by him
    at the date of retirement or discharge".
    (b-5) Beginning on January 1, 2011, for all purposes under
this Code (including without limitation the calculation of
benefits and employee contributions), the annual earnings,
salary, or wages (based on the plan year) of a member or
participant to whom this Section applies shall not exceed
$106,800; however, that amount shall annually thereafter be
increased by the lesser of (i) 3% of that amount, including all
previous adjustments, or (ii) one-half the annual unadjusted
percentage increase (but not less than zero) in the consumer
price index-u for the 12 months ending with the September
preceding each November 1, including all previous adjustments.
    For the purposes of this Section, "consumer price index-u"
means the index published by the Bureau of Labor Statistics of
the United States Department of Labor that measures the average
change in prices of goods and services purchased by all urban
consumers, United States city average, all items, 1982-84 =
100. The new amount resulting from each annual adjustment shall
be determined by the Public Pension Division of the Department
of Insurance and made available to the boards of the retirement
systems and pension funds by November 1 of each year.
    (c) A member or participant is entitled to a retirement
annuity upon written application if he or she has attained age
67 (beginning January 1, 2015, age 65 with respect to service
under Article 12 of this Code that is subject to this Section)
and has at least 10 years of service credit and is otherwise
eligible under the requirements of the applicable Article.
    A member or participant who has attained age 62 (beginning
January 1, 2015, age 60 with respect to service under Article
12 of this Code that is subject to this Section) and has at
least 10 years of service credit and is otherwise eligible
under the requirements of the applicable Article may elect to
receive the lower retirement annuity provided in subsection (d)
of this Section.
    (c-5) A person who first becomes a member or a participant
subject to this Section under Article 8 or Article 11 of this
Code on or after July 6, 2017 (the effective date of Public Act
100-23) this amendatory Act of the 100th General Assembly,
notwithstanding any other provision of this Code to the
contrary, is entitled to a retirement annuity under Article 8
or Article 11 upon written application if he or she has
attained age 65 and has at least 10 years of service credit
under Article 8 or Article 11 of this Code and is otherwise
eligible under the requirements of Article 8 or Article 11 of
this Code, whichever is applicable.
    (d) The retirement annuity of a member or participant who
is retiring after attaining age 62 (beginning January 1, 2015,
age 60 with respect to service under Article 12 of this Code
that is subject to this Section) with at least 10 years of
service credit shall be reduced by one-half of 1% for each full
month that the member's age is under age 67 (beginning January
1, 2015, age 65 with respect to service under Article 12 of
this Code that is subject to this Section).
    (d-5) The retirement annuity payable under Article 8 or
Article 11 to an eligible of a person subject to subsection
(c-5) of this Section who first becomes a member or a
participant under Article 8 or Article 11 of this Code on or
after the effective date of this amendatory Act of the 100th
General Assembly who is retiring at age 60 with at least 10
years of service credit under Article 8 or Article 11 shall be
reduced by one-half of 1% for each full month that the member's
age is under age 65.
    (d-10) Each person who first became a member or participant
under Article 8 or Article 11 of this Code on or after January
1, 2011 and prior to the effective date of this amendatory Act
of the 100th General Assembly shall make an irrevocable
election either:
        (i) to be eligible for the reduced retirement age
    provided in subsections (c-5) and (d-5) of this Section,
    the eligibility for which is conditioned upon the member or
    participant agreeing to the increases in employee
    contributions for age and service annuities provided in
    subsection (a-5) of Section 8-174 of this Code (for service
    under Article 8) or subsection (a-5) of Section 11-170 of
    this Code (for service under Article 11); or
        (ii) to not agree to item (i) of this subsection
    (d-10), in which case the member or participant shall
    continue to be subject to the retirement age provisions in
    subsections (c) and (d) of this Section and the employee
    contributions for age and service annuity as provided in
    subsection (a) of Section 8-174 of this Code (for service
    under Article 8) or subsection (a) of Section 11-170 of
    this Code (for service under Article 11).
    The election provided for in this subsection shall be made
between October 1, 2017 and November 15, 2017. A person subject
to this subsection who makes the required election shall remain
bound by that election. A person subject to this subsection who
fails for any reason to make the required election within the
time specified in this subsection shall be deemed to have made
the election under item (ii).
    (e) Any retirement annuity or supplemental annuity shall be
subject to annual increases on the January 1 occurring either
on or after the attainment of age 67 (beginning January 1,
2015, age 65 with respect to service under Article 12 of this
Code that is subject to this Section and beginning on the
effective date of this amendatory Act of the 100th General
Assembly, age 65 with respect to service under Article 8 or
Article 11 for eligible persons who: (i) are subject to
subsection (c-5) of this Section first became members or
participants under Article 8 or Article 11 of this Code on or
after the effective date of this amendatory Act of the 100th
General Assembly; or (ii) first became members or participants
under Article 8 or Article 11 of this Code on or after January
1, 2011 and before the effective date of this amendatory Act of
the 100th General Assembly and made the election under item (i)
of subsection (d-10) of this Section) or the first anniversary
of the annuity start date, whichever is later. Each annual
increase shall be calculated at 3% or one-half the annual
unadjusted percentage increase (but not less than zero) in the
consumer price index-u for the 12 months ending with the
September preceding each November 1, whichever is less, of the
originally granted retirement annuity. If the annual
unadjusted percentage change in the consumer price index-u for
the 12 months ending with the September preceding each November
1 is zero or there is a decrease, then the annuity shall not be
increased.
    For the purposes of Section 1-103.1 of this Code, the
changes made to this Section by this amendatory Act of the
100th General Assembly are applicable without regard to whether
the employee was in active service on or after the effective
date of this amendatory Act of the 100th General Assembly.
    (f) The initial survivor's or widow's annuity of an
otherwise eligible survivor or widow of a retired member or
participant who first became a member or participant on or
after January 1, 2011 shall be in the amount of 66 2/3% of the
retired member's or participant's retirement annuity at the
date of death. In the case of the death of a member or
participant who has not retired and who first became a member
or participant on or after January 1, 2011, eligibility for a
survivor's or widow's annuity shall be determined by the
applicable Article of this Code. The initial benefit shall be
66 2/3% of the earned annuity without a reduction due to age. A
child's annuity of an otherwise eligible child shall be in the
amount prescribed under each Article if applicable. Any
survivor's or widow's annuity shall be increased (1) on each
January 1 occurring on or after the commencement of the annuity
if the deceased member died while receiving a retirement
annuity or (2) in other cases, on each January 1 occurring
after the first anniversary of the commencement of the annuity.
Each annual increase shall be calculated at 3% or one-half the
annual unadjusted percentage increase (but not less than zero)
in the consumer price index-u for the 12 months ending with the
September preceding each November 1, whichever is less, of the
originally granted survivor's annuity. If the annual
unadjusted percentage change in the consumer price index-u for
the 12 months ending with the September preceding each November
1 is zero or there is a decrease, then the annuity shall not be
increased.
    (g) The benefits in Section 14-110 apply only if the person
is a State policeman, a fire fighter in the fire protection
service of a department, a security employee of the Department
of Corrections or the Department of Juvenile Justice, or a
security employee of the Department of Innovation and
Technology, as those terms are defined in subsection (b) and
subsection (c) of Section 14-110. A person who meets the
requirements of this Section is entitled to an annuity
calculated under the provisions of Section 14-110, in lieu of
the regular or minimum retirement annuity, only if the person
has withdrawn from service with not less than 20 years of
eligible creditable service and has attained age 60, regardless
of whether the attainment of age 60 occurs while the person is
still in service.
    (h) If a person who first becomes a member or a participant
of a retirement system or pension fund subject to this Section
on or after January 1, 2011 is receiving a retirement annuity
or retirement pension under that system or fund and becomes a
member or participant under any other system or fund created by
this Code and is employed on a full-time basis, except for
those members or participants exempted from the provisions of
this Section under subsection (a) of this Section, then the
person's retirement annuity or retirement pension under that
system or fund shall be suspended during that employment. Upon
termination of that employment, the person's retirement
annuity or retirement pension payments shall resume and be
recalculated if recalculation is provided for under the
applicable Article of this Code.
    If a person who first becomes a member of a retirement
system or pension fund subject to this Section on or after
January 1, 2012 and is receiving a retirement annuity or
retirement pension under that system or fund and accepts on a
contractual basis a position to provide services to a
governmental entity from which he or she has retired, then that
person's annuity or retirement pension earned as an active
employee of the employer shall be suspended during that
contractual service. A person receiving an annuity or
retirement pension under this Code shall notify the pension
fund or retirement system from which he or she is receiving an
annuity or retirement pension, as well as his or her
contractual employer, of his or her retirement status before
accepting contractual employment. A person who fails to submit
such notification shall be guilty of a Class A misdemeanor and
required to pay a fine of $1,000. Upon termination of that
contractual employment, the person's retirement annuity or
retirement pension payments shall resume and, if appropriate,
be recalculated under the applicable provisions of this Code.
    (i) (Blank).
    (j) In the case of a conflict between the provisions of
this Section and any other provision of this Code, the
provisions of this Section shall control.
(Source: P.A. 100-23, eff. 7-6-17; 100-201, eff. 8-18-17;
100-563, eff. 12-8-17; 100-611, eff. 7-20-18.)
 
    (40 ILCS 5/8-174)   (from Ch. 108 1/2, par. 8-174)
    Sec. 8-174. Contributions for age and service annuities for
present employees and future entrants.
    (a) Beginning on the effective date and prior to July 1,
1947, 3 1/4%; and beginning on July 1, 1947 and prior to July
1, 1953, 5%; and beginning July 1, 1953, and prior to January
1, 1972, 6%; and beginning January 1, 1972, 6-1/2% of each
payment of the salary of each present employee and future
entrant, except as provided in subsection (a-5) and (a-10),
shall be contributed to the fund as a deduction from salary for
age and service annuity.
    (a-5) Except as provided in subsection (a-10), for an
employee who on or after January 1, 2011 and prior to the
effective date of this amendatory Act of the 100th General
Assembly first became a member or participant under this
Article and made the election under item (i) of subsection
(d-10) of Section 1-160: prior to the effective date of this
amendatory Act of the 100th General Assembly, 6.5%; and
beginning on the effective date of this amendatory Act of the
100th General Assembly and prior to January 1, 2018, 7.5%; and
beginning January 1, 2018 and prior to January 1, 2019, 8.5%;
and beginning January 1, 2019 and thereafter, employee
contributions for those employees who made the election under
item (i) of subsection (d-10) of Section 1-160 shall be the
lesser of: (i) the total normal cost, calculated using the
entry age normal actuarial method, projected for the prior that
fiscal year for the benefits and expenses of the plan of
benefits applicable to those members and participants who first
became members or participants on or after the effective date
of this amendatory Act of the 100th General Assembly and to
those employees who made the election under item (i) of
subsection (d-10) of Section 1-160, but not less than 6.5% of
each payment of salary combined with the employee contributions
provided for in subsection (b) of Section 8-137 and Section
8-182 of this Article; or (ii) the aggregate employee
contribution consisting of 9.5% of each payment of salary
combined with the employee contributions provided for in
subsection (b) of Section 8-137 and 8-182 of this Article.
    For the one-year period beginning Beginning with the first
pay period in January of each year on or after the date when
the funded ratio of the fund as determined in the annual
actuarial valuation is first determined to have reached the 90%
funding goal, and each subsequent one-year pay period
thereafter for as long as the fund maintains a funding ratio of
75% or more, employee contributions for age and service annuity
for those employees who made the election under item (i) of
subsection (d-10) of Section 1-160 shall be 5.5% of each
payment of salary. If the funding ratio falls below 75%, then
employee contributions for age and service annuity for those
employees who made the election under item (i) of subsection
(d-10) shall revert to the lesser of: (A) the total normal
cost, calculated using the entry age normal actuarial method,
projected for the prior that fiscal year for the benefits and
expenses of the plan of benefits applicable to those members
and participants who first became members or participants on or
after the effective date of this amendatory Act of the 100th
General Assembly and to those employees who made the election
under item (i) of subsection (d-10) of Section 1-160, but not
less than 6.5% of each payment of salary combined with the
employee contributions provided for in subsection (b) of
Section 8-137 and Section 8-182 of this Article; or (B) the
aggregate employee contribution consisting of 9.5% of each
payment of salary combined with the employee contributions
provided for in subsection (b) of Section 8-137 and 8-182 of
this Article. If the fund once again is determined to have
reached a funding ratio of 75%, the 5.5% of salary contribution
for age and service annuity shall resume. An employee who made
the election under item (ii) of subsection (d-10) of Section
1-160 shall continue to have the contributions for age and
service annuity determined under subsection (a) of this
Section.
    If contributions are reduced to less than the aggregate
employee contribution described in item (ii) or item (B) of
this subsection due to application of the normal cost
criterion, the employee contribution amount shall be
consistent for from July 1 of the fiscal year through June 30
of that fiscal year.
    The normal cost, for the purposes of this subsection (a-5)
and subsection (a-10), shall be calculated by an independent
enrolled actuary mutually agreed upon by the fund and the City.
The fees and expenses of the independent actuary shall be the
responsibility of the City. For purposes of this subsection
(a-5), the fund and the City shall both be considered to be the
clients of the actuary, and the actuary shall utilize
participant data and actuarial standards to calculate the
normal cost. The fund shall provide information that the
actuary requests in order to calculate the applicable normal
cost.
    (a-10) For each employee subject to subsection (c-5) of
Section 1-160 who on or after the effective date of this
amendatory Act of the 100th General Assembly first becomes a
member or participant under this Article, 9.5% of each payment
of salary shall be contributed to the fund as a deduction from
salary for age and service annuity. Beginning January 1, 2018
and each year thereafter, employee contributions for each
employee subject to this subsection (a-10) shall be the lesser
of: (i) the total normal cost, calculated using the entry age
normal actuarial method, projected for the prior that fiscal
year for the benefits and expenses of the plan of benefits
applicable to those members and participants who first become
members or participants on or after the effective date of this
amendatory Act of the 100th General Assembly and to those
employees who made the election under item (i) of subsection
(d-10) of Section 1-160, but not less than 6.5% of each payment
of salary combined with the employee contributions provided for
in subsection (b) of Section 8-137 and Section 8-182 of this
Article; or (ii) the aggregate employee contribution
consisting of 9.5% of each payment of salary combined with the
employee contributions provided for in subsection (b) of
Section 8-137 and Section 8-182 of this Article.
    For the one-year period beginning Beginning with the first
pay period in January of each year on or after the date when
the funded ratio of the fund as determined in the annual
actuarial valuation is first determined to have reached the 90%
funding goal, and each subsequent one-year pay period
thereafter for as long as the fund maintains a funding ratio of
75% or more, employee contributions for age and service annuity
for each employee subject to this subsection (a-10) shall be
5.5% of each payment of salary. If the funding ratio falls
below 75%, then employee contributions for age and service
annuity for each employee subject to this subsection (a-10)
shall revert to the lesser of: (A) the total normal cost,
calculated using the entry age normal actuarial method,
projected for the prior that fiscal year for the benefits and
expenses of the plan of benefits applicable to those members
and participants who first become members or participants on or
after the effective date of this amendatory Act of the 100th
General Assembly and to those employees who made the election
under item (i) of subsection (d-10) of Section 1-160, but not
less than 6.5% of each payment of salary combined with the
employee contributions provided for in subsection (b) of
Section 8-137 and Section 8-182 of this Article; or (B) the
aggregate employee contribution consisting of 9.5% of each
payment of salary combined with the employee contributions
provided for in subsection (b) of Section 8-137 and Section
8-182 of this Article. If the fund once again is determined to
have reached a funding ratio of 75%, the 5.5% of salary
contribution for age and service annuity shall resume.
    If contributions are reduced to less than the aggregate
employee contribution described in item (ii) or item (B) of
this subsection (a-10) due to application of the normal cost
criterion, the employee contribution amount shall be
consistent for from July 1 of the fiscal year through June 30
of that fiscal year.
    Such deductions beginning on the effective date and prior
to July 1, 1947 shall be made for a future entrant while he is
in the service until he attains age 65 and for a present
employee while he is in the service until the amount so
deducted from his salary with the amount deducted from his
salary or paid by him according to law to any municipal pension
fund in force on the effective date with interest on both such
amounts at 4% per annum equals the sum that would have been to
his credit from sums deducted from his salary if deductions at
the rate herein stated had been made during his entire service
until he attained age 65 with interest at 4% per annum for the
period subsequent to his attainment of age 65. Such deductions
beginning July 1, 1947 shall be made and continued for
employees while in the service.
    (b) Concurrently with each employee contribution, the city
shall contribute beginning on the effective date and prior to
July 1, 1947, 5 3/4%; and beginning July 1, 1947 and prior to
July 1, 1953, 7%; and beginning July 1, 1953 and prior to July
6, 2017, 6% of each payment of such salary until the employee
attains age 65. Beginning July 6, 2017, the Fund shall credit
sums equal to 6% of each payment of such salary for annuity
purposes. The amounts credited for annuity purposes shall not
be credited for refund purposes (Blank).
    (c) Each employee contribution made prior to the date the
age and service annuity for an employee is fixed and each
corresponding city contribution shall be credited to the
employee and allocated to the account of the employee for whose
benefit it is made.
    (d) Notwithstanding Section 1-103.1, the changes to this
Section made by this amendatory Act of the 100th General
Assembly apply regardless of whether the employee was in active
service on or after the effective date of this amendatory Act
of the 100th General Assembly.
(Source: P.A. 100-23, eff. 7-6-17.)
 
    (40 ILCS 5/11-170)  (from Ch. 108 1/2, par. 11-170)
    Sec. 11-170. Contributions for age and service annuities
for present employees, future entrants and re-entrants.
    (a) Beginning on the effective date and prior to July 1,
1947, 3 1/4%; and beginning on July 1, 1947 and prior to July
1, 1953, 5%; and beginning July 1, 1953 and prior to January 1,
1972, 6%; and beginning January 1, 1972, 6 1/2% of each payment
of the salary of each present employee, future entrant and
re-entrant, except as provided in subsection (a-5) and (a-10),
shall be contributed to the fund as a deduction from salary for
age and service annuity.
    (a-5) Except as provided in subsection (a-10), for an
employee who on or after January 1, 2011 and prior to the
effective date of this amendatory Act of the 100th General
Assembly first became a member or participant under this
Article and made the election under item (i) of subsection
(d-10) of Section 1-160: prior to the effective date of this
amendatory Act of the 100th General Assembly, 6.5%; and
beginning on the effective date of this amendatory Act of the
100th General Assembly and prior to January 1, 2018, 7.5%; and
beginning January 1, 2018 and prior to January 1, 2019, 8.5%;
and beginning January 1, 2019 and thereafter, employee
contributions for those employees who made the election under
item (i) of subsection (d-10) of Section 1-160 shall be the
lesser of: (i) the total normal cost, calculated using the
entry age normal actuarial method, projected for the prior that
fiscal year for the benefits and expenses of the plan of
benefits applicable to those members and participants who first
became members or participants on or after the effective date
of this amendatory Act of the 100th General Assembly and to
those employees who made the election under item (i) of
subsection (d-10) of Section 1-160, but not less than 6.5% of
each payment of salary combined with the employee contributions
provided for in subsection (b) of Section 11-134.1 and Section
11-174 of this Article; or (ii) the aggregate employee
contribution consisting of 9.5% of each payment of salary
combined with the employee contributions provided for in
subsection (b) of Section 11-134.1 and 11-174 of this Article.
    For the one-year period beginning Beginning with the first
pay period in January of each year on or after the date when
the funded ratio of the fund as determined in the annual
actuarial valuation is first determined to have reached the 90%
funding goal, and each subsequent one-year pay period
thereafter for as long as the fund maintains a funding ratio of
75% or more, employee contributions for age and service annuity
for those employees who made the election under item (i) of
subsection (d-10) of Section 1-160 shall be 5.5% of each
payment of salary. If the funding ratio falls below 75%, then
employee contributions for age and service annuity for those
employees who made the election under item (i) of subsection
(d-10) shall revert to the lesser of: (A) the total normal
cost, calculated using the entry age normal actuarial method,
projected for the prior that fiscal year for the benefits and
expenses of the plan of benefits applicable to those members
and participants who first became members or participants on or
after the effective date of this amendatory Act of the 100th
General Assembly and to those employees who made the election
under item (i) of subsection (d-10) of Section 1-160, but not
less than 6.5% of each payment of salary combined with the
employee contributions provided for in subsection (b) of
Section 11-134.1 and Section 11-174 of this Article; or (B) the
aggregate employee contribution consisting of 9.5% of each
payment of salary combined with the employee contributions
provided for in subsection (b) of Section 11-134.1 and 11-174
of this Article. If the fund once again is determined to have
reached a funding ratio of 75%, the 5.5% of salary contribution
for age and service annuity shall resume. An employee who made
the election under item (ii) of subsection (d-10) of Section
1-160 shall continue to have the contributions for age and
service annuity determined under subsection (a) of this
Section.
    If contributions are reduced to less than the aggregate
employee contribution described in item (ii) or item (B) of
this subsection due to application of the normal cost
criterion, the employee contribution amount shall be
consistent for from July 1 of the fiscal year through June 30
of that fiscal year.
    The normal cost, for the purposes of this subsection (a-5)
and subsection (a-10), shall be calculated by an independent
enrolled actuary mutually agreed upon by the fund and the City.
The fees and expenses of the independent actuary shall be the
responsibility of the City. For purposes of this subsection
(a-5), the fund and the City shall both be considered to be the
clients of the actuary, and the actuary shall utilize
participant data and actuarial standards to calculate the
normal cost. The fund shall provide information that the
actuary requests in order to calculate the applicable normal
cost.
    (a-10) For each employee subject to subsection (c-5) of
Section 1-160 who on or after the effective date of this
amendatory Act of the 100th General Assembly first becomes a
member or participant under this Article, 9.5% of each payment
of salary shall be contributed to the fund as a deduction from
salary for age and service annuity. Beginning January 1, 2018
and each year thereafter, employee contributions for each
employee subject to this subsection (a-10) shall be the lesser
of: (i) the total normal cost, calculated using the entry age
normal actuarial method, projected for the prior that fiscal
year for the benefits and expenses of the plan of benefits
applicable to those members and participants who first become
members or participants on or after the effective date of this
amendatory Act of the 100th General Assembly and to those
employees who made the election under item (i) of subsection
(d-10) of Section 1-160, but not less than 6.5% of each payment
of salary combined with the employee contributions provided for
in subsection (b) of Section 11-134.1 and Section 11-174 of
this Article; or (ii) the aggregate employee contribution
consisting of 9.5% of each payment of salary combined with the
employee contributions provided for in subsection (b) of
Section 11-134.1 and Section 11-174 of this Article.
    For the one-year period beginning Beginning with the first
pay period in January of each year on or after the date when
the funded ratio of the fund as determined in the annual
actuarial valuation is first determined to have reached the 90%
funding goal, and each subsequent one-year pay period
thereafter for as long as the fund maintains a funding ratio of
75% or more, employee contributions for age and service annuity
for each employee subject to this subsection (a-10) shall be
5.5% of each payment of salary. If the funding ratio falls
below 75%, then employee contributions for age and service
annuity for each employee subject to this subsection (a-10)
shall revert to the lesser of: (A) the total normal cost,
calculated using the entry age normal actuarial method,
projected for the prior that fiscal year for the benefits and
expenses of the plan of benefits applicable to those members
and participants who first become members or participants on or
after the effective date of this amendatory Act of the 100th
General Assembly and to those employees who made the election
under item (i) of subsection (d-10) of Section 1-160, but not
less than 6.5% of each payment of salary combined with the
employee contributions provided for in subsection (b) of
Section 11-134.1 and Section 11-174 of this Article; or (B) the
aggregate employee contribution consisting of 9.5% of each
payment of salary combined with the employee contributions
provided for in subsection (b) of Section 11-134.1 and Section
11-174 of this Article. If the fund once again is determined to
have reached a funding ratio of 75%, the 5.5% of salary
contribution for age and service annuity shall resume.
    If contributions are reduced to less than the aggregate
employee contribution described in item (ii) or item (B) of
this subsection (a-10) due to application of the normal cost
criterion, the employee contribution amount shall be
consistent for from July 1 of the fiscal year through June 30
of that fiscal year.
    Such deductions beginning on the effective date and prior
to June 30, 1947, inclusive shall be made for a future entrant
while he is in service until he attains age 65, and for a
present employee while he is in service until the amount so
deducted from his salary with interest at the rate of 4% per
annum shall be equal to the sum which would have accumulated to
his credit from sums deducted from his salary if deductions at
the rate herein stated had been made during his entire service
until he attained age 65 with interest at 4% per annum for the
period subsequent to his attainment of age 65. Such deductions
beginning July 1, 1947 shall be made and continued for
employees while in the service.
    (b) Concurrently with each employee contribution, the city
shall contribute beginning on the effective date and prior to
July 1, 1947, 5 3/4%; and beginning July 1, 1947 and prior to
July 1, 1953, 7%; and beginning July 1, 1953 and prior to July
6, 2017, 6% of each payment of such salary until the employee
attains age 65. Beginning July 6, 2017, the Fund shall credit
sums equal to 6% of each payment of such salary for annuity
purposes. The amounts credited for annuity purposes shall not
be credited for refund purposes (Blank).
    (c) Each employee contribution made prior to the date age
and service annuity for an employee is fixed and each
corresponding city contribution shall be allocated to the
account of and credited to the employee for whose benefit it is
made.
    (d) Notwithstanding Section 1-103.1, the changes to this
Section made by this amendatory Act of the 100th General
Assembly apply regardless of whether the employee was in active
service on or after the effective date of this amendatory Act.
(Source: P.A. 100-23, eff. 7-6-17.)
 
    (40 ILCS 5/11-197.7)
    Sec. 11-197.7. Payment of annuity other than direct. The
board, at the written direction and request of any annuitant,
may, solely as an accommodation to such annuitant, pay the
annuity due him or her to a bank, savings and loan association,
or any other financial institution insured by an agency of the
federal government, for deposit to his or her account, or to a
bank or trust company for deposit in a trust established by him
or her for his benefit with such bank, savings and loan
association, or trust company, and such annuitant may withdraw
such direction at any time. An annuitant who directs the board
to pay the annuity due him or her to a financial institution
shall hold the board and the fund harmless from any claim or
loss related to any error as to whether the financial
institution is or continues to be federally insured. The board
may also, in the case of any disability beneficiary or
annuitant for whom no estate guardian has been appointed and
who is confined in a publicly owned and operated mental
institution, pay such disability benefit or annuity due such
person to the superintendent or other head of such institution
or hospital for deposit to such person's trust fund account
maintained for him or her by such institution or hospital, if
by law such trust fund accounts are authorized or recognized.
(Source: P.A. 100-23, eff. 7-6-17.)
 
    Section 99. Effective date. This Act takes effect upon
becoming law.

Effective Date: 1/4/2019